Reliance Industries Limited
Annual Report 2002

Plain-text annual report

Page Contents (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 25 26 27 29 31 32 34 35 50 56 58 74 75 76 77 78 92 Performance Highlights Company Information Notice Letter to Shareholders Financial Highlights Reliance Brands Product Flow Chart Management Discussion and Analysis Corporate Governance and Shareholder Information 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 Notes on Accounts 104 Statement of Interest in Subsidiaries 106 Cash Flow Statement 109 Auditors’ Report on Consolidated Financial Statements 110 Consolidated Balance Sheet 111 Consolidated Profit and Loss Account 112 Schedules Forming Part of Consolidated Balance Sheet and Profit & Loss Account 122 Notes on Consolidated Accounts 130 Consolidated Cash Flow Statement 132 Reconciliation of Consolidated Net Profit with US GAPP 135 Financial Statements of Subsidiary Companies 215 Circular to the Shareholders 217 Nomination Form 219 Form No. 15-G 223 Attendance Slip and Proxy Form 24 Reliance Industries Limited Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Reliance’s Achievements in 2001-2002 Gross Turnover - Rs. 57,120 crores (US $ 11,705 million) Gross Profit - Rs. 8,658 crores (US $ 1,774 million) Cash Profit - Rs. 6,643 crores (US $ 1,361 million) Net Profit - Rs. 3,243 crores (US $ 665 million) Compounded Annual Net Profit growth over 5 years - 20% Total Assets - Rs. 56,485 crores (US $ 11,575 million) India’s World Class Corporation Reliance Industries Limited 25 Reliance Industries Directors Report.p65 # Board of Directors Mukesh D. Ambani Chairman & Managing Director Anil D. Ambani Vice-Chairman & Managing Director Nikhil R. Meswani Executive Director Hital R. Meswani Executive Director H.S. Kohli Executive Director U. Mahesh Rao Nominee Director - GIC Ramniklal H. Ambani Mansingh L. Bhakta T. Ramesh U. Pai Yogendra P. Trivedi Dr. D.V. Kapur M.P. Modi S. Venkitaramanan Secretaries Vinod M. Ambani Rohit C. Shah Solicitors & Advocates Kanga & Co. Auditors Chaturvedi & Shah Rajendra & Co. International Accountants Deloitte Haskins & Sells Member - Deloitte, Touche and Tohmatsu International (DTTI) Registered Office: 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021, India. Tel. Nos. 91-22-2831633/2826070 Fax: 91-22-2042268` E-Mail: investor_relations@ril.com Internet: http://www.ril.com (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Bankers ABN AMRO Bank Allahabad Bank Andhra Bank Bank of America Bank of Baroda Bank of India Canara Bank Central Bank of India Citibank N.A. Corporation Bank Deutsche Bank Dena Bank HDFC Bank Ltd. Hongkong Bank ICICI Bank Ltd. IDBI Bank Ltd. Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab National Bank State Bank of India State Bank of Saurashtra Standard Chartered Grindlays Bank Syndicate Bank Union Bank of India Vijaya Bank 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 382 320 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 361 140 Gujarat State, India. • Registrar & Transfer Agents Karvy Consultants Limited 46, Avenue 4, Street No.1, Banjara Hills Hyderabad - 500 034, India. Tel. Nos. 91-40-3320666,3320711,3323031, 3323037 Fax No. 91-40-3323058 E-Mail: rilinvestor@karvy.com internet: http://www.karvy.com • Tulsiani Chambers 10th Floor, Nariman Point Mumbai 400 021, India. Tel. Nos. 91-22-2884769/2875951 Fax No. 91-22-2828454 26 Reliance Industries Limited Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notice Notice is hereby given that the Twenty Eighth Annual General Meeting of the Members of RELIANCE INDUSTRIES LIMITED will be held on Thursday, the 31st day of October, 2002, 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, 2002, Profit and Loss Account for the year ended on that date and the Reports of the Board of Directors and Auditors thereon. 2. To declare dividend on Equity Shares. 3. To appoint a Director in place of Shri Hital R. Meswani, who retires by rotation and being eligible, offers himself for re- appointment. 4. To appoint a Director in place of Shri Ramniklal H. Ambani, who retires by rotation and being eligible, offers himself for re- appointment. 5. To appoint a Director in place of Shri T. Ramesh U. Pai, who retires by rotation and being eligible, offers himself for re- appointment. 6. To appoint Messrs. Chaturvedi & Shah, Chartered Accountants and Messrs. Rajendra & Co., Chartered Accountants, the retiring Auditors of the Company, 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 modification(s), the following resolution as an Ordinary Resolution: ‘‘RESOLVED THAT Shri S. Venkitaramanan, who was appointed as an Additional Director of the Company pursuant to Section 260 of the Companies Act, 1956 and Article 135 of the Articles of Association of the Company, and who 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 from a member, 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.’’ By Order of the Board of Directors Rohit C. Shah Vice President and Company Secretary Place: Mumbai Dated: 30th September, 2002 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 of the Company. The instrument appointing proxy should, however, be deposited at the Registered Office of the Company not less than forty eight hours before the commencement of the meeting. 2. An Explanatory Statement pursuant to Section 173(2) of the Companies Act, 1956, relating to the Special Business to be transacted at the meeting is annexed hereto. 3. Shareholders are requested to bring their copy of Annual Report to the Meeting. 4. Members/Proxies should fill the Attendance Slip for attending the meeting. 5. Members who hold shares in dematerialised form are requested to write their Client ID and DP ID numbers and those who hold shares in physical form are requested to write their Folio Number in the attendance slip for attending the meeting. 6. All documents referred to in the accompanying Notice and the Explanatory Statement are open inspection at for 7. 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. (a) The Company has already notified closure of Register of Members and the Transfer Books from Saturday, the 26th October, 2002 to Thursday, the 31st October, 2002 (both the days inclusive) for payment of dividend on equity shares. 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. (b) Dividend on Equity Shares will be paid from 1st November, 2002, subject to deduction of applicable Income Tax at source as per provisions of Finance Act, 2002. (c) In case of resident individual shareholders, income tax will not be deducted at source from dividend, where such dividend does not exceed Rs. 2500. The income tax will not be deducted, where such dividend exceeds Rs. 2500, if the shareholder in duplicate, to the Registrar and Transfer Agents of the Company on or before 25th October, 2002. Form 15G printed on page No. 219 and 221 may be used for claiming such exemption by the shareholders. furnishes declaration in Form 15G, (d) The Company is required to issue TDS certificate, inter alia, quoting Permanent Account No. (PAN / GIR No.) of the shareholders under Section 139A(5A) of the Income Tax Act, 1961. Obligation has been cast on the shareholders receiving dividend which is subject to TDS to intimate his/her/its PAN/GIR Number to the Company or their Registrar and Transfer Agents M/s. Karvy Consultants Limited. (e) Members may please note that the Dividend Warrant is payable at par at the designated branches of the Bank printed overleaf of the Dividend Warrant for an intial period of 3 months only. Thereafter, the Dividend Warrant on revalidation is payable only at centres/limited branches of the said Bank. The members are, therefore, advised to encash Dividend Warrants within the initial validity period. fraudulent to provide protection against encashment of the warrants, shareholders holding shares in physical form are requested to intimate the Company under the signature of the Sole/First joint holder, the following information on the Dividend Warrants: (i) Name of Sole/first joint holder and Folio No. (ii) Particulars of Bank Account, viz.: (a) In order (a) Name of the Bank (b) Name of Branch (c) Complete address of Code Number the Bank with Pin 8. (d) Account type, whether Savings (SB) or Current Account (CA) (e) Bank Account number allotted by the Bank (b) Bank account details provided by the Depositary Participants (DPs), will be used by the Company for printing on the dividend warrants. Shareholders who wish to change such bank accounts may advise their DPs about such change, with complete details of Bank Account, including MICR Code. 9. Electronic Clearing Service (ECS) Facility With respect to payment of dividend, the Company provides the facility of ECS to shareholders residing in the following cities: Ahmedabad, Bangalore, Bhubaneshwar, Chandigargh, Chennai, Delhi, Guwahati, Hyderabad, Jaipur, Kanpur, Kolkata, Mumbai, Nagpur, Patna and Thiruvananthapuram. Shareholders holding shares in the physical form who now wish to avail ECS facility, may authorise the Company with their ECS mandate in the prescribed form, which can be downloaded from the Company's website (www.ril.com under the section 'Investor Relations') or can be furnished by Registrar and Transfer Agents, M/s. Karvy Consultants Limited, on request. Requests for payment of dividend through ECS for the year 2001-2002 should be lodged with M/s. Karvy Consultants Limited on or before 20th October, 2002. 10. The Company has already transferred all unclaimed dividends Reliance Industries Limited 27 Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) declared upto the financial year ended 31st March, 1995 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. Shareholders who have so far not claimed or collected their dividends up to the aforesaid financial year are requested to claim their dividend from the Registrar of Companies, Maharashtra, CGO Complex, 2nd Floor, "A" Wing, CBD- Belapur, Navi Mumbai, Mumbai - 400 614. Telephone (091) (022) 757 6802 in the prescribed form which will be furnished by the Registrar and Transfer Agents, M/s. Karvy Consultants Limited on request. 11. Pursuant to the provisions of Section 205A(5) of the Companies Act, 1956, dividend for the financial year ended 31st March, 1996 and thereafter, which remain unclaimed for a period of 7 years will be transferred by the Company to the Investor Education and Protection Fund (IEP Fund) established by the Central Government pursuant to Section 205C of the Companies Act, 1956. Information in respect of such unclaimed dividend when due for transfer to the said Fund is given below:- Financial year ended 31.03.1996 31.03.1997 31.03.1998 31.03.1999 31.03.2000 31.03.2001 Date of declaration of Dividend 18.07.1996 26.06.1997 26.06.1998 24.06.1999 30.03.2000 15.06.2001 Due date for transfer to IEP Fund 04.09.2003 13.08.2004 13.08.2005 11.08.2006 17.05..2007 21.07.2008 Shareholders who have not so far encashed the dividend warrant(s) are requested to seek issue of duplicate warrant(s) by writing to the Office of the Registrar and Transfer Agents, M/s. Karvy Consultants Limited. Shareholders are requested to note that no claims shall lie against the said Fund or the Company in respect of any amounts which were unclaimed and unpaid for a period of seven years from the dates that they first became due for payment and no payment shall be made in respect of any such claims. 12. Non-resident Indian Shareholders are requested to inform the Company immediately: a) The change in the Residential status on return to India for permanent settlement. b) The particulars of NRE Bank account maintained in India with complete name and address of the Bank, if not furnished earlier. 13. Corporate Members are requested to send a duly certified copy of the Board Resolution authorising their representative to attend and vote at the Annual General Meeting. 14. Consequent upon the introduction of Section 109A of the Companies Act, 1956, shareholders are entitled to make nomination in respect of shares held by them in physical form. Shareholders desirous of making nominations are requested to send their requests in Form 2B (which will be made available on request) to the Registrar and Transfer Agents, M/s. Karvy Consultants Limited. The said Form 2B can also be down-loaded from the Company's web site www.ril.com. 15. The Company has obtained the approval under sub section (1) of Section 166 of the Companies Act, 1956, from the Registrar of Companies, Maharashtra, Mumbai, for extension of time for holding the Annual General Meeting of the Company upto 14th December, 2002. 16. Appointment/Reappointment of Directors: At the ensuing Annual General Meeting, Shri Hital R. Meswani, Shri Ramniklal H. Ambani and Shri T. Ramesh U. Pai, retire by rotation and being eligible offer themselves for reappointment. Shri S. Venkitaramanan will be appointed as a Director liable to retire by rotation. The information or details to be provided for the aforesaid Directors under Corporate Governance code are as under: (a) Shri Hital R. Meswani, aged 34 years is a Chemical Engineer from School of Engineering & Applied Science - University of Pennsylvania and a B.S. (equivalent to B.B.A.) from Wharton School, University of Pennsylvania, USA. He joined Reliance in 1990. He was appointed on the Board as Executive Director since 4th August, 1995, with overall responsibility of Refinery Division including refining and downstream. He is also a member of the Finance Committee of the Directors. He is the brother of Shri Nikhil R. Meswani, one of the Directors of the Company. from (b) Shri Ramniklal H. Ambani, aged 77 years, has been one of the foremost Directors of the Company since 11th January, 1977. He is the elder brother of Late Shri Dhirubhai H. Ambani and has been instrumental in chartering the growth of the Company during its initial years of operations 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 viz: Gujarat Industrial Investments Corporation Ltd., Yashraj Investments and Leasing Co. Pvt Ltd., Anjali Threads Pvt Ltd., Anjali Fiscal Pvt Ltd., Action Exports Pvt Ltd., Sintex Industries Ltd. and Ras Organisers Pvt. Ltd. factory at Naroda, its (c) Shri T. Ramesh U. Pai, aged 77 years, hails from a family of Bankers and is a Director of the Company since 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. Kurlon Ltd., Lingapur Estates Ltd., Andhra Sugars Ltd., Maharashtra Apex Corporation Limited and Commercial Corporation of India Limited. (d) Shri S. Venkitaramanan, aged 71 years, holds a Master's Degree in Physics from the University of Kerala and also a Masters Degree in Industrial Administration from Carnegie Mellon University, Pittsburgh, USA. He former Governor of Reserve Bank of India. He is the Chairman of Ashok Leyland Finance Ltd. and director of many prominent companies. He has been a director of the Company since 1997. is a the Explanatory statement under Section 173(2) of Companies Act, 1956 Item No. 7 Shri S. Venkitaramanan ceased to be nominee of ICICI Bank Limited (formerly known as ICICI Limited) on the Board of the Company with effect from 2nd August, 2002. Pursuant to Article 135 of the Articles of Association of the Company, the Board of Directors appointed Shri S. Venkitaramanan as an Additional Director of the Company with effect from 14th August, 2002. Pursuant to Section 260 of the Companies Act, 1956, Shri S. Venkitaramanan, will hold office as Additional Director up to the date of the ensuing Annual General Meeting. The Company has received a notice in writing from a member along with a deposit of five hundred rupees proposing the candidature of Shri S. Venkitaramanan for the office of Director of the Company under the provisions of Section 257 of the Companies Act, 1956. S. Venkitaramanan, who belonged Indian Administrative Services and who was Secretary of Finance for the Government of India and former Governor, Reserve Bank of India, is having wide experience to his credit in the Banking and Financial Management in Corporate World. Keeping in view his vast expertise and knowledge, it will be in the interest of the Company that Shri S. Venkitaramanan is appointed as a Director of the Company. Your Directors, therefore, recommend the resolution for your approval. Save and except Shri S. Venkitaramanan, none of the other Directors of the Company is, in any way, concerned or interested in this resolution. to By Order of the Board of Directors Rohit C. Shah Vice-President and Company Secretary Place: Mumbai Dated: 30th September, 2002 28 Reliance Industries Limited Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Financial Highlights Consistent and robust growth (Rs. in crores) 2001-02 00-01 99-00 98-99 97-98 96-97 95-96 94-95 93-94 92-93 1985 Gross Turnover Total Income Earnings Before Depreciation, $ Mn 11,705 57,120 28,008 20,301 14,553 13,404 8,730 7,786 7,019 5,345 4,106 11,865 57,902 28,391 20,988 15,161 13,740 9,020 8,058 7,331 5,555 4,222 Interest and Tax (EBDIT) 1,774 8,658 5,562 4,746 3,318 2,887 1,948 1,752 1,622 1,159 Depreciation Profit After Tax 577 665 2,816 1,565 1,278 855 667 410 337 278 3,243 2,646 2,403 1,704 1,653 1,323 1,305 1,065 255 576 929 280 322 733 744 139 37 71 Taxes paid to the Government 2,145 10,470 4,277 3,719 2,893 3,021 2,490 2,234 2,147 1,391 1,118 373 Equity Dividend % Dividend Payout Equity Share Capital Equity Share Suspense 47.5 136 216 70 47.5 663 42.5 448 40 385 1,054 1,053 1,053 342 – – 37.5 350 933 – 35 327 932 – 65 299 458 – 60 276 458 – 55 199 456 – 51 138 318 – 35 85 245 – Reserves and Surplus 5,413 26,416 13,712 12,636 11,183 10,863 8,013 7,747 6,731 4,011 2,362 Net Worth 5,699 27,812 14,765 13,983 12,369 11,983 8,471 8,405 7,193 4,335 2,613 Gross Fixed Assets 9,889 48,261 25,868 24,662 22,088 19,918 14,665 11,374 8,390 5,132 4,641 50 25 52 – 254 311 736 607 Net Fixed Assets Total Assets 6,800 33,184 14,027 15,448 15,396 14,973 11,173 9,233 6,585 3,600 3,368 11,575 56,485 29,875 29,369 28,156 24,388 19,536 15,038 11,529 8,121 6,083 1,046 Market Capitalisation# 8,604 41,989 41,191 33,346 12,176 16,518 14,395 9,783 12,027 10,718 4,388 906 Number of Employees – 12,864 15,083 15,912 16,640 17,375 16,778 14,255 12,560 11,873 11,944 9,066 Key indicators 2001-02 00-01 99-00 98-99 97-98 96-97 95-96 94-95 93-94 92-93 1985 Earnings Per Share - Rs. Cash Earning Per Share - Rs. Gross Turnover Per Share - Rs.# Book Value Per Share - Rs.# $ 0.48 1.04 8.38 4.08 23.4 50.8 25.1 40.0 409.1 265.8 199.2 140.1 22.4 34.6 192.7 129.9 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 9.1 13.1 84.1 68.0 6.6 12.3 83.5 53.0 6.9 10.6 70.5 29.5 Debt : Equity Ratio 0.64:1 0.64:1 0.72:1 0.82:1 0.86:1 0.68:1 0.83:1 0.49:1 0.35:1 0.58:1 0.84:1 1.66:1 EBDIT/ Gross Turnover % 15.2 15.2 21.6* 23.8* Net Profit Margin % RONW % ** 5.7 16.1 5.7 16.1 10.3 20.0 12.0 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 19.0 9.7 30.5 1US$ = Rs. 48.8 (Exchange rate as on 31.03.2002) All references to $ are to US Dollars Per share figures upto 1996-97 have been recast to adjust for 1 : 1 bonus issue in 1997-98 * Gross Turnover excludes merchant exports ** Adjusted for CWIP and revaluation # Based on post merger 139,63,77,536 number of outstanding equity shares. Reliance Industries Limited 31 Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Reliance’s Major Products and Brands Business/ Product Brand Logo End Uses Brand Polyesters Recron Texturised Yarn Twisted/Dyed Yarn Polyester Staple Fibre (PSF) Polyester Filament Yarn (PFY) Apparels, home textiles, industrial sewing threads, automotive upholstery Technology Partner E.I. DuPont,USA Zimmer,Germany Barmag,Germany Toray, Japan Murata, Japan ICI, UK Rieter,Switzerland E.I. DuPont, USA Pillows, cushions, quilts, mattresses, non-wovens, furnitures, toys Construction industry (concrete/mortar), asbestos cement (sheet & pipe), paper industry (conventional & speciality), battery industry Denims, shirting, suiting, dress material, T-shirts, sportswear, swimwear Packaging-water, soft drinks, beverages, confectionary E.I. DuPont, USA Sinco, Italy Dow-UCC,USA Novacor,Canada Novacor,Canada Geon Company, USA Woven sacks for cement, foodgrains, sugar, fertilisers; leno bags for fruits & vegetables; TQ & BOPP films and containers for packaging textiles, processed food, FMCG; office stationary; components for automobile and consumer durables; moulded furniture & luggage; houseware; geotextiles; fibres for socks, sports wear; soft luggage Woven sacks; raschel bags for fruits & vegetables; containers for packaging edible oil, processed food, FMCG, lubricants, detergents, chemicals, pesticides; industrial crates & containers; carrier bags; houseware; ropes & twines; pipes for water supply, irrigation; process industry & telecom Films for packaging milk, edible oil, salt, processed food; rotomoulded containers for storage of water; chemical storage and general purpose tanks; protective films and pipes for agriculture; cable sheathing; lids & caps; masterbatches Pipes & fittings; door & window profiles; insulation & sheathing for wire & cables; rigid bottles & containers for packaging applications; footwear; flooring, partitions, roofing; I.V. fluid & blood bags Irrigation, water supply, drainage, industrial effluents, telecom cable ducts, gas distribution Recron Fibrefill Polyester Fibrefill (PFF) Recron 3S Speciality Product Recron Stretch Polyester Covered Yarn Relpet Polyethylene Terephthalate (PET) Polymers Repol Polypropylene (PP) Relene High Density Polyethylene (HDPE) Reclair Linear Low Density Polyethylene (LLDPE) Reon Polyvinyl Chloride (PVC) Relpipe Poly-Olefin (HDPE & PP) Pipes 32 Reliance Industries Limited Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Product Brand Logo End Uses Technology Partner Business/ Brand Chemicals Relab Linear Alkyl Benzene (LAB) Detergents UOP, USA Fibre Paraxylene (PX) Intermediates Purified Terephthalic Acid (PTA) Mono Ethylene Glycol (MEG) Raw material - PTA Raw material - Polyester Raw material - Polyester UOP, USA ICI, UK /DuPont ABB Lummus Crest Netherlands (Shell Process) Textiles Vimal Suitings, Shirtings, Dress material, Apparels Sarees Harmony Furnishing fabrics, Day curtains Furnishings, home textiles Automotive upholstery RueRel Suitings Apparels V2 Ready-to-stitch, Take away fabric Apparels Reancé Readymade Garments Suits, shirts & trousers SlumbeRel Fibre filled pillows & sleep products Sleep products E.I. DuPont, USA Oil and Gas Crude Oil and Natural Gas Refining, power, fertilisers and petrochemicals Refining Liquefied Petroleum Gas (LPG) Domestic and industrial fuel Propylene Naphtha Gasoline Jet / Aviation Turbine Fuel / Superior Kerosene Oil High Speed Diesel Sulfur Petroleum Coke Feedstock for polypropylene Feedstock for petrochemicals such as ethylene, propylene & fertilisers etc. and as fuel in power plants Transport fuel Aviation & domestic fuels Transport fuel Feedstock for fertilisers, pharmaceuticals Fuel for power plants and cement plants Reliance Industries Limited 33 Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Product Flow Chart Abbreviation ATF DEG EDC EO HDPE HSD LAB Full Name Polypropylene Polyester staple fibre Purified terephthalic acid Polyvinyl chloride Paraxylene Tri-ethylene glycol Vinyl chloride monomer (1) Plant also under operation at Jamnagar Complex (2) Plant also under operation at Hazira complex (3) Plant operational at Hazira Complex. Full Name Linear low density polyethylene Mono-ethylene glycol Motor spirit Natural gas liquid Normal paraffin Polyethylene terephthalate Polyester filament yarn Full Name Aviation turbine fuel Di-ethylene glycol Ethylene di-chloride Ethylene oxide High density polyethylene High speed diesel Linear alkyl benzene Abbreviation LLDPE MEG MS NGL NP PET PFY Abbreviation PP PSF PTA PVC PX TEG VCM 34 Reliance Industries Limited Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 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 (cid:1) continued progress in hydrocarbon sector reforms and deregulation (cid:1) dismantling of the administered pricing mechanism (APM) in the refining industry (cid:1) the government’s decision to grant marketing rights for transportation fuels to the private sector (cid:1) the proposed disinvestment of domestic public sector oil companies The merged enterprise is headquartered at the existing corporate headquarters at Mumbai in India, with plants located at Patalganga in Maharashtra, and at Naroda, Hazira and Jamnagar in Gujarat. The merger gives RIL the distinction of becoming India’s first private sector company, in the internationally tracked Fortune Global 500 list of the world’s largest corporations. Based on latest available data published in 2002, RIL ranks: (cid:1) amongst the top 200 companies in terms of net profits India’s first private sector Fortune Global 500 company (cid:1) amongst the top 300 companies in terms of net worth During the year under review, the Boards of Directors of Reliance Industries Ltd. (RIL) and Reliance Petroleum Ltd. (RPL) unanimously approved the merger of RPL with RIL, with retrospective effect from April 1, 2001, subject to necessary approvals. The Boards of both companies recommended an exchange ratio of 1 share of RIL for every 11 shares of RPL. The merger was approved by shareholders of both companies with an overwhelming majority of over 99.9%. Pursuant to the receipt of approvals from the High Courts of Gujarat and Bombay, and filing of requisite documents with the Registrar of Companies, the ‘effective date’ for the merger was fixed as September 19, 2002. (cid:1) amongst the top 425 companies in terms of assets (cid:1) amongst the top 500 companies in terms of sales The merger also ranks RIL amongst the top energy and petrochemicals companies globally. RIL ranks: (cid:1) amongst the top 30 companies based on net profit (cid:1) amongst the top 50 companies based on sales The merger ranks RIL amongst the top Asian oil and gas and chemical companies, as well. RIL ranks: The merger of RPL with RIL represents the largest ever merger in India, creating the country’s largest private sector company on all financial parameters, including sales, assets, net worth, cash profits and net profits: (cid:1) 4th in terms of profits (cid:1) 17th in terms of sales Rs. Crores US$ million Gross Turnover Assets Net Worth Cash Profit Net Profit 57,120 56,485 27,812 6,643 3,243 11,705 11,575 5,699 1,361 665 The merger has created India’s only world scale, fully integrated energy company, with operations in oil and gas exploration and production (E&P), refining and marketing (R&M), petrochemicals, power, and textiles. The merged entity, RIL, enjoys global rankings in all its major businesses, and leading domestic market shares. The merger is in line with global industry trends, for enhancing scale, size, integration, global competitiveness, and financial strength and flexibility to pursue future growth opportunities, in an increasingly competitive global environment. The merger has been implemented in the context of the ongoing economic reforms in the country, and takes into consideration various factors, such as: The merger has resulted in accretion of over Rs. 2,450 crores (US$ 500 million) to RIL’s cash flows, and acquisition of facilities which have been valued at over Rs. 21,000 crores (US$ 4.3 billion) by leading international industry consultants, Chemsystems. The merger will contribute to the following substantial benefits for RIL, thereby substantially enhancing shareholder value: (cid:1) Scale (cid:1) Integration (cid:1) Global competitiveness (cid:1) Operational synergies (cid:1) Logistics advantages (cid:1) Cost efficiencies (cid:1) Productivity gains (cid:1) Rationalisation of business processes (cid:1) Optimisation of fiscal incentives Reliance Industries Limited 35 Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) (cid:1) Enhanced financial strength and flexibility (cid:1) Reduction of volatility in the earnings stream size, integration, and financial strength and flexibility to pursue future growth opportunities, in this increasingly competitive global environment. The merger has led to a 32% increase in RIL’s equity from Rs. 1,054 crores to Rs. 1,396 crores. Under the terms of the merger, shares of RPL held by RIL, representing 28% of RPL’s equity share capital, have been cancelled. IPCL, and its shareholders, workers and employees, will benefit from Reliance’s proven vision and management strengths, established project execution capabilities, and demonstrated track record of consistent operational and financial performance. RIL shares, against the holding of RPL shares by Reliance Industrial Investments and Holdings Ltd. (RIIHL), a 100% subsidiary of RIL, constituting 7.5% of the fully diluted equity share capital of RIL, with a value of over Rs. 3,100 crores (US$ 645 million), will be directly issued and allotted to a Trust, to be held for the benefit of RIIHL. RPL shares held by other RIL associates, representing 14% of RPL’s equity share capital, will be exchanged into RIL shares, constituting 4.7% of the fully diluted equity share capital of RIL, with a value of nearly Rs. 2,000 crores (US$ 405 million). RIL will endeavour to monetise this aggregate economic value of over Rs. 5,100 crores (over US$ 1 billion), at an appropriate time in the future, to strategic and/ or financial investors, in the endeavour to maximize overall shareholder value. This aggregate RIL shareholding may also be leveraged to pursue significant acquisition and other growth opportunities in domestic and international markets, with all economic benefits flowing to RIL’s shareholders. The pursuit of all these opportunities will be guided by the Reliance group’s overall financial conservatism and discipline, and with the consistent objective of maintaining top end credit ratings. Acquisition of IPCL Subsequent to the close of the year under review, Reliance has, in another major strategic move, acquired Indian Petrochemicals Corporation Ltd. (IPCL), a leading public sector company, enjoying “Navratna” status, and a public sector pioneer in the petrochemicals business in India. IPCL is India’s second largest petrochemicals company, and is amongst India’s top 25 companies, in terms of its sales of Rs. 5,527 crores (US$ 1.1 billion). Reliance acquired a 26% equity stake in IPCL, held by the Government of India, through an open and transparent process of global competitive bidding. Subsequently, as required under prevailing regulations, Reliance acquired a further 20% equity stake in IPCL through an open offer to the public, thereby increasing its equity stake in the company to 46%. Reliance’s successful bid of Rs. 1,491 crores (US$ 303 million) at Rs. 231 per share for acquiring the government’s 26% stake represented the highest public sector unit disinvestment proceeds received by the Government of India in a single transaction. Reliance’s total investment for the IPCL acquisition is Rs. 2,638 crores, including the proceeds paid under the open offer to the public. This investment demonstrates Reliance’s confidence in future prospects of the Indian economy, and the petrochemicals industry. India’s per capita consumption of polymers is amongst the lowest in the world, and Reliance sees tremendous future growth potential in this business. Reliance’s acquisition of IPCL is in line with international trends of industry consolidation, to enable both companies to enhance scale, IPCL will significantly benefit from Reliance’s financial engineering skills, its ability to access capital at the most competitive terms, and to optimise financial costs. IPCL will be in a position to leverage Reliance’s proven capabilities of achieving optimal plant capacity utilisation, through operational efficiencies, and low cost de-bottlenecking of capacities. IPCL will also enjoy the full benefits of Reliance’s strong relationships with customers, technology and equipment suppliers, and other constituents, in the domestic and international markets. The benefits of the change in management control have already become visible in IPCL’s performance in the first few months after the acquisition. Production has increased significantly, and steps are also already underway to improve yield by optimising process conditions, and by increasing uptime of manufacturing plants, thereby further contributing to higher productivity. Net sales realisation for all major products have increased as a result of Reliance’s initiatives for strengthening customer relationships. This has contributed to improvement in operating margins. As Reliance and IPCL serve the same customer base, both in domestic and export markets, a detailed programme is already underway, for integrating operations at various marketing offices across the country, as well as up country warehouses. A detailed exercise covering three manufacturing sites of IPCL, and two manufacturing sites of Reliance, encompassing eighteen manufacturing plants, is also under implementation. The benefits of this programme are expected to be available in the future, and will lead to additional contribution. IPCL’s IT facilities and MIS are being recast in line with RIL’s standards, and the entire company is expected to be SAP enabled shortly, with attendant benefits of enhanced efficiency at all levels. IPCL’s acquisition will further Reliance’s goal of attaining global leadership amongst the industry peer group in terms of asset base, revenues, profitability, production volumes, market share, and enhancement of overall shareholder value. Continued leadership as India’s No. 1 business group The merger of RPL with RIL, and the IPCL acquisition, have strengthened Reliance’s position as the largest business group in India, on all major financial parameters, including sales, profits, net worth, and assets. Contribution to Indian economy Reliance’s leadership position in India, is reflected in its all round contribution to the national economy. Reliance contributes: (cid:1) 3% of India’s GDP (cid:1) 5% of India’s total exports (cid:1) 9% of Indian government’s indirect tax revenues 36 Reliance Industries Limited Reliance Industries Directors Report.p65 # The group also accounted for 2.3% of the gross capital formation in the country, in the last 5 years. During the year, RIL’s major plants operated at over 100% capacity utilisation, setting new records in production volumes. (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Reliance now accounts for: (cid:1) nearly 25% of the total profits of the private sector in India (cid:1) nearly 10% of the profits of the entire corporate sector in India (cid:1) 7% of the total market capitalisation (cid:1) weightage of 16% in the Sensex (cid:1) weightage of 13% in the Nifty Index 1 out of every 4 investors in India is a Reliance shareholder. Export performance (including deemed exports) RIL sold 20% of its production for exports markets during the year under review. RIL’s exports were US$ 2,295 million (Rs. 11,200 crores) during the year, ranking RIL as India’s largest exporter. Leadership rankings in all major businesses RIL enjoys global leadership rankings in all its major businesses. RIL’s 27 million tonne refinery at Jamnagar in Gujarat, India is the world’s largest grassroots refinery, and the 5th largest refinery at any single location. Production from the refinery accounts for almost 25% of India’s total production of petroleum products. Subsequent to the close of the year under review , RIL has also received approvals from the Government of India for setting up over 5,800 retail outlets in the country for marketing of transportation fuels, diesel and gasoline. RIL continues to be ranked amongst the top 10 producers globally, in all its major petrochemicals products. Reliance is the 2nd largest producer of POY and PSF, the 3rd largest producer of paraxylene (PX), the 4th largest producer of PTA, and the 7th largest producer of polypropylene (PP) in the world. Within the country, RIL enjoys leading market shares in all these businesses. Reliance’s integrated refining, petrochemicals, power and port complex at Jamnagar, Gujarat, set up at a capital outlay of Rs. 25,000 crores (US$ 6 billion), represents the single largest investment ever made by the private sector in India at a single location. RIL is now making investments in the upstream segment of the energy business. RIL is already India’s largest private sector player in E&P (exploration and production of oil and gas), with over 177,000 sq. kms. of awarded exploration acreage, in 26 offshore and onshore, deep and shallow water blocks, including one in Yemen. RIL’s refinery processed 28.96 million tonnes of crude during the year, as against 25.70 million tonnes during the previous year. RIL’s total production volume of petrochemicals, including toll conversion, touched 11.5 million tonnes, an increase of 11% compared to the corresponding previous year. RIL’s Oil and Gas production was 411,000 tonnes and 666,500 tonnes respectively. Financial Review Reliance Petroleum Ltd. (RPL) merged with RIL, with effect from April 1, 2001. To that extent, the figures for the year ended March 31, 2002 stated herein are not comparable with figures for the previous year. RIL’s Gross Turnover for the year ended March 31, 2002 increased to Rs. 57,120 crores (US$ 11,705 million), against Rs. 28,008 crores last year. Gross Turnover include inter-divisional transfers of Rs. 11,716 crores (US$ 2,401 million), against Rs. 4,984 crores in the previous year. Domestic sales accounted for 80% of gross turnover. RIL’s manufactured exports, including deemed exports, increased to Rs. 11,200 crores (US$ 2,295 million), from Rs. 9,370 crores (US$ 2,010 million). RIL’s operating profit, before other income, increased to Rs. 7,876 crores (US$ 1,614 million) during the year, compared to Rs. 5,179 crores (US$ 1,111 million). RIL’s operating margin for the year stood at 13.8%, reflecting the impact of the merger of RPL’s refining business with RIL. The operating margin factors in gains from increased volumes, lower feedstock costs for petrochemicals, partially offset by lower product prices, gains from productivity, cost control and efficiencies, a higher degree of integration and value addition, rationalisation of duties, and the impact of rupee depreciation. Other income for the year stood at Rs. 782 crores (US$ 160 million), largely reflecting interest and dividend income. Interest expense increased to Rs. 1,825 crores (US$ 374 million), and depreciation increased to Rs. 2,816 crores (US$ 577 million), reflecting the impact of the merger of RPL with RIL. RIL’s corporate Income tax liability for the year was Rs. 190 crores (US$ 39 million), which was limited to the impact of the Minimum Alternative Tax (MAT). Operating environment and performance Cash profits increased to Rs. 6,643 crores (US$ 1,361 million). The year under review was characterised by uneven demand conditions, increased volatility in feedstock prices, and sharp declines in product selling prices, as a result of global capacity additions. The terrorist attacks in the US on September 11, 2001 had a significant adverse impact on global economic growth, creating further pressures on the demand supply balance for the energy and petrochemicals industry. Reliance’s ability to maintain its cash flows and profits in this difficult environment reflects the global competitiveness of its operations, leadership in domestic markets, and a healthy presence in export markets. There was a deferred tax liability of Rs. 996 crores (US$ 204 million) for the year, primarily in relation to the depreciation on assets of the refining business that may now be availed by RIL. Net profit for the year increased to Rs. 3,243 crores (US$ 665 million). The profit for the year would have been higher by Rs. 238 crores (US$ 49 million), had there been no change in the method of providing depreciation. RIL’s paid up equity share capital will increase to Rs. 1,396 crores (US$ 286 million) (including shares to be allotted to shareholders of erstwhile RPL) as a result of the merger of RPL with RIL. Reliance Industries Limited 37 Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Earnings Per Share (EPS) were Rs. 23.4 (US$ 0.48) and Cash Earnings Per Share (CEPS) were Rs. 50.80 (US$ 1.04). A dividend of 47.5% has been proposed, subject to the approval of shareholders. The dividend pay out of Rs. 663 crores (US$ 136 million) for the year. The company has been consistently increasing dividends for the past 10 years. Capital expenditure during the year was Rs. 1,474 crores (US$ 302 million), primarily as normal capital expenditure. Total assets increased during the year to Rs. 56,485 crores (US$ 11,575 million). RIL contributed a total of Rs. 10,470 crores (US$ 2145 million) to the national exchequer in the form of various taxes. The company’s operations have helped the nation save precious foreign exchange to the tune of Rs. 20,169 crores (US$ 4,133 million). Resources & Liquidity Reliance continues to maintain its conservative financial profile, as reflected in both, its domestic and international ratings. During the year, RIL’s existing credit ratings were reaffirmed as unchanged by the rating agencies, subsequent to the merger of RPL with RIL. The ratings for RIL’s long term debt were reaffirmed at “AAA” from CRISIL, the highest rating awarded by the agency. FITCH Ratings India also affirmed its “Ind AAA” debt rating for the company, indicating the highest credit quality. RIL’s international debt carries ratings of “BB” (negative outlook) from S&P, and Ba2 from Moody’s, the latter constrained by the sovereign ceiling. Reliance’s gross debt equity ratio, including long term and short term debt as on March 31, 2002, is a conservative 0.64, despite the increase in total assets to Rs. 56,485 crores (US$ 11,575 million). Reliance’s equity share capital, following the merger of RPL with the company, stood at Rs. 1,396 crores (US$ 286 million). Reserves and Surplus as on March 31, 2002 aggregated to Rs. 26,417 crores (US$ 5,413 million). The company’s long term debt as on March 31, 2002 stood at Rs. 18,210 crores (US$ 3,732 million). Of this debt, 50% represented foreign currency denominated debt. RIL’s exports, and foreign exchange denominated oil and gas revenues, provide a more than 20 times cover for its annual interest obligations on foreign currency denominated debt. Reliance funds its long term and project related financing requirements from a combination of internally generated cash flows and external sources. Reliance had issued over US$ 1.3 billion (Rs. 6,000 crores) of debt securities in the international capital markets since 1995, with maturities ranging from 7 years to 100 years. Reliance bought back a total of US$ 253 million (Rs. 1,225 crores) of its offshore bonds during the year. These were refinanced partly through export proceeds and partly through a syndicated term loan facility of US$ 105 million raised in Japanese Yen, thereby achieving substantial cost savings. Reliance has, in aggregate, bought back and cancelled US$ 450 million (Rs. 2,182 crores) of its bonds to date, which is about 39% of the total issued amount. During the year, the company raised the largest ever syndicated foreign currency term loan facility from India for US$ 750 million (Rs. 3,583 crores), setting new benchmarks in pricing, and reflecting Reliance’s financial strengths. The deal was named as “The Capital Market Deal of the Year” by IFR Asia, a leading international publication. The average maturity of RIL’s total long term debt is nearly 8 years. The average final maturity of the company’s foreign exchange debt included therein is 11.5 years. Reliance continued to demonstrate its financial flexibility and innovativeness to take advantage of the declining interest rate environment in the country. During the year, Reliance successfully refinanced loans by issuing debt paper in the domestic market for Rs. 1,410 crores (US$ 288 million). Reliance meets its working capital requirements through commercial rupee credit lines provided by a consortium of Indian and foreign banks. The credit lines are fixed annually and renewed on a quarterly basis. In addition, Reliance issues short term debt in the form of fixed and floating rate bonds in Indian Rupees and also avails FCNR B loans in foreign currency. Reliance’s short-term debt programme is rated P1+ by CRISIL, the highest credit rating that may be assigned to this category of instruments. Reliance availed short-term finance largely by way of export finance, at concessional and extremely competitive rates of interest from banks, during the current year, taking advantage of its substantial export revenues. The combination of the above has enabled Reliance to significantly reduce the average cost of its short-term debt. Reliance also undertakes liability management transactions and other structured derivatives, such as interest rate swaps and currency swaps, on an ongoing basis, to reduce its overall cost of debt and diversify its liability mix. RIL’s cash flows, at current year’s levels, for less than 3 years, are adequate to extinguish its entire debt, reflecting its inherent financial strength and conservatism. Business Review Oil and Gas India’s consumption of crude oil is 2.2 million barrels per day, equivalent to 105 million tonnes per year. The country produces just about 32% of this requirement, and imports the balance 1.5 million barrels per day, or 72 million tonnes per year, of crude oil. Consumption of natural gas in India is presently 68.5 million standard cubic meter per day (MMSCMD), or 883 billion cubic feet per year. The oil and gas industry in the country is presently dominated by public sector companies. RIL’s oil and gas strategy is aimed at further enhancing the level of vertical integration in its energy business, and capturing value across the entire energy chain, while fulfilling important national priorities, in an attractive tax and fiscal regime. RIL holds a 30% interest in an unincorporated Joint Venture with British Gas and ONGC, to develop the proven Panna-Mukta and 38 Reliance Industries Limited Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Tapti oil & gas fields. British Gas has a 30% share and ONGC the balance 40% share. Oil and gas production from the Panna-Mukta and Tapti fields is presently being sold to Indian Oil Corporation Ltd. (IOC) and Gas Authority of India Ltd. (GAIL), as nominees of the Government, under the Production Sharing Agreements signed with the Government. The Panna and Mukta fields are currently producing about 30,000 barrels per day of crude oil, and around 2.8 MMSCMD of gas. The Tapti field produced around 70 billion cubic feet of gas during the year. The field is currently producing around 5.7 MMSCMD of gas. 2001-02 2000-01 Oil (tonnes) 411,000 418,000 Gas (MTOE) 666,500 688,000 RIL is now the country’s largest private sector E&P (Exploration and Production) player, with over 177,000 sq. kms. of awarded exploration acreage, in 26 offshore and onshore, deep and shallow water blocks, including one in Yemen. 12 exploration blocks were awarded through a process of competitive international bidding under the first round of the New Exploration Licensing Policy (NELP-I). Another 4 exploration blocks were awarded by the Government in the second round i.e. NELP II. The Production Sharing Contracts with the Government have already been signed for all these blocks. A 10% interest in these 16 blocks is held by external partners. Reliance has acquired operatorship in 3 exploration blocks from Tullow of UK and is in an advanced stage of acquiring operatorship of 2 more blocks from Tullow. Reliance has also acquired interest in an exploration block in Yemen during the year. After the close of the year under review, Reliance has participated in the third round of NELP, and bid for 15 blocks. The Oil and Gas division presently contributes about 1% of RIL’s gross turnover. Reliance sees considerable potential in the E&P business, and expects the share of oil and gas revenues to consistently increase in the future in its overall business portfolio. Overall domestic consumption for petroleum products remained virtually flat, with marginal negative growth of about 1.5% in the year ended March 31, 2002. Consumption of HSD dropped by about 3.4% and that of Kerosene dropped by about 7.9%. LPG recorded a growth of about 10% and gasoline consumption grew by about 6.2%. During the year ended March 31, 2002, Reliance’s refinery‘s capacity utilisation was at a record level of 107%. This is in contrast to the capacity utilisation rates of refineries in other regions - 89% for North America, 87% for Europe and 85% for Asia Pacific region. Crude Processed (million tonnes) Capacity utilisation 2001-02 2000-01 28.96 107% 25.70 95% The refinery’s high operating rates are the result of its several unique capabilities, including the ability to optimise crude oil and product mix on a dynamic basis, the international quality of its products, and its access to fully integrated logistics, enabling seamless evacuation of products by sea, rail, road and pipeline, to domestic and international markets. About 57% of the refinery’s production was sold in the domestic markets (excluding captive consumption), of which 86% was sold to the public sector oil companies, under the Administered Price Mechanism (APM) which was in force till March 31, 2002. Captive consumption of products by RIL accounted for 12% of production, while the balance 31% was exported across the globe, including to the most quality conscious and discerning markets, such as the Far East, Europe, the US, and South America. The Government of India has subsequently dismantled the APM in the hydrocarbon sector with effect from April 1, 2002. As a result, the marketing of erstwhile ‘controlled products’ has been opened up to the private sector, and pricing of petroleum products has become market determined. RIL has already obtained marketing rights for sale of ATF in the domestic market, and has also been granted approvals for setting up over 5,800 retail outlets for retail marketing of transportation fuels, namely, diesel and gasoline. Reliance has deployed state-of-the-art technology and is working with leading international technology and service providers for the E&P project, covering all activities, such as seismic studies, processing and interpretation of data, and drilling. For the period of two years from April 1, 2002, RIL has concluded product off-take agreements with the three public sector oil companies, namely, IOC, HPCL and BPCL, for nearly 13 million tonnes per year of LPG, MS, SKO and HSD. Reliance has commenced exploratory activities, and has already acquired more than 11,500 line kilometers of 2-D and 6,500 square kilometers of 3-D seismic data. Evaluation of data, and further development work is currently in progress. In the medium to longer term, RIL proposes to enter retail marketing of transportation fuels, enabling it to deliver a complete value proposition to customers, achieve downstream integration and enhance overall return on capital. Refining and Marketing RIL’s refinery at Jamnagar, with capacity of 27 million tonnes per annum, is the world’s largest grassroots refinery, and the 5th largest refinery in the world at any single location. RIL’s refinery is the first and the only refinery to be set up in the private sector in India, pursuant to oil sector reforms. RIL’s refinery accounts for almost 25% of total production of petroleum products in the country. The Indian refining and marketing industry is dominated by public sector oil companies, Reliance being the only private sector company. The total capacity of these refineries is around 116 million tonnes per annum, as per latest published industry data. During the year, the Expert Committee on Auto Fuel Policy has submitted its report, mooting the introduction of Bharat Stage II norms (equivalent to Euro II norms) in the entire country from April 2005. The Committee has also recommended Euro III equivalent emission norms for all categories of vehicles (excluding two and three wheelers) to be introduced in seven mega cities from April 2005, and to be extended to other parts of the country from 2010. The committee expects the Indian refiners to spend Rs. 17,000 crores to meet emission norms by 2005, and another Rs. 18,000 crores to meet the 2010 specifications. Reliance’s refinery already meets the Bharat II specifications, and will be able to meet Euro III equivalent specifications with nominal investments. Reliance’s competitive advantage will thus further improve significantly, with more stringent product specifications becoming introduced in the country. Reliance Industries Limited 39 Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) On the product distribution front, Reliance has a 10% stake in Petronet India Limited, the holding company set up for creation of pipeline infrastructure for evacuation of petroleum products all over India. Petrochemicals Polymers (PP, PE and PVC) Highlights PP Production crosses 1 Million MT - capacity utilisation of 104% EDC manufacturing facility at Hazira commissioned Overseas offices in China, UAE and Vietnam established Plans to open new offices in Indonesia and Turkey Planning, Research and Business Development Group constituted to spearhead product and application development work in Polymers India is amongst the fastest growing polymer markets in the world, and is expected to become the world’s third largest polymer market after the US and China by the end of this decade. Current polymers consumption of 3.4 million tonnes in the country is expected to treble during this decade, owing to the huge latent demand potential. Reliance intends to increase production at its existing plants, and set up new plants at an appropriate time, to capitalise on these future growth opportunities in the Indian and Asian polymer markets. Strong resurgence in demand after the weak conditions in 2001, resulted in overall demand growth of 16% for polymers (PP, PE, and PVC) during the year. This double digit growth rate is expected to be maintained in the future, as demand for packaging picks up with revival of economic growth. During the year, to strengthen its presence in fast growing export markets, Reliance has opened offices in China, UAE, and Vietnam. Two more offices are proposed to be opened shortly in Indonesia and Turkey. (Production in tonnes) 2001-02 2000-01 1,038,000 901,000 376,000 352,000 288,000 288,000 PP PE PVC Reliance is the 7th largest PP producer in the world with an installed capacity of 1 million tonnes per year. During the year, Reliance produced several import substitution grades of PP, which have successfully replaced imports. Reliance is continuously focussing on production of value added premium grades of PE. As a part of this exercise, PE ducts and PE pipe coating compounds made from Reliance polyethylene are being sold in India and abroad. Efforts are also on to produce premium grades using octene co-monomer. After strong 21% sales growth in PVC industry, domestic demand for PVC now matches local availability. The EDC plant commissioning during the year is another step in backward integration. Efforts are on to optimise PVC production through better grade planning and import of VCM. Polyester (PFY, PSF and PET) Reliance is the world’s second largest polyester manufacturer (fibre and yarn). During the year, Reliance further consolidated its position in the polyester business, on the strength of its integrated operations, economies of scale, and diversified product range. Demand for PFY, PSF and PET in the country crossed 1.3 million tonnes during the year, reflecting growth of 5%, despite the impact of the global slowdown. Reliance is the country’s largest manufacturer of these products, having a market share of 54%. The industry has a fragmented structure, with a large number of players operating with relatively small capacities. Reliance’s polyester production volumes increased 12% during the year to 812,000 tonnes, which was higher than the industry growth rates. (Production in tonnes) 2001-02 2000-01 373,000 336,000 361,000 317,000 78,000 72,000 PFY PSF PET Speciality grades accounted for 58% of PSF production, while 29% of PFY production represented niche products, contributing a premium of 5% to 25% over commodity prices. During the year, Reliance launched a new speciality product, Recron –3S, for the benefit of the asbestos and construction industry. Reliance is the only domestic manufacturer of this product, which is used as a reinforcement agent. During the year, Reliance entered into a strategic alliance with DuPont for exclusive distribution of Lycra® - the most widely used stretch fibre and a registered trademark of DuPont. The Reliance-DuPont alliance will benefit users of Lycra®, and Indian consumers, who will get world-class garments hitherto available only abroad. This alliance will also enable Indian textile and garment manufacturers to link up, through DuPont, with overseas distribution and marketing networks. This will go a long way in building India’s exports of branded high value products. During the year, Reliance announced expansion of PET capacity from 80,000 tonnes per year to 300,000 tonnes per year, through the building of the world’s first plant based on DuPont’s revolutionary NG-3 technology. This new world-scale plant will be located alongside the existing facility at Hazira. This will make Reliance the fourth largest manufacturer of PET bottle resin at a single location anywhere in the world. End uses of PET include packaging for branded carbonated soft drinks and bottled drinking water, the demand for which is growing world-wide at an exponential rate. A major restructuring exercise of shifting high cost operations in Thane and Naroda to more cost-effective locations was undertaken during the year, to achieve cost reduction and enhance productivity. As par t of the continuous effor ts to deliver better value to customers, Reliance has opened Fast Delivery Centres at strategic locations, which have extensive downstream textile units. These centres will help the company to cater to customer needs in the shortest possible time. In an effort to enhance quality consciousness in the downstream textile industry in general, Reliance has commissioned a state-of- 40 Reliance Industries Limited Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) the-art testing centre at Coimbatore for testing quality of Recron blended yarn. During the year, the centre was accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL), New Delhi. Polyester Intermediates (PX, PTA and MEG) RIL is the world’s 3rd largest producer of Paraxylene (PX), and the world’s 4th largest producer of PTA. Within the country, RIL continues to be the largest manufacturer of PX, PTA and MEG, with market share of 80%. RIL is the only producer of PX, while there are 2 PTA and 4 MEG producers in India. Reliance’s production volumes of PX, PTA and MEG increased to 2.88 million tonnes during the year under review. (Production in tonnes) 2001-02 2000-01 1,342,000 1,300,000 1,160,000 1,165,000 380,000 368,000 PX PTA MEG Demand growth increased in line with polyester industry demand growth. Over 52% of production of PX, PTA and MEG was captively consumed by RIL. Cracker Products RIL operates one of the world’s largest grassroots multi-feed cracker at Hazira, with capacity of 750,000 tpa. RIL has already announced plans to increase its cracker capacity by 33%, to 1 million tonnes per year, through debottlenecking. During the year, all cracker products registered production growth. (Production in tonnes) 2001-02 2000-01 Ethylene 771,000 740,000 Propylene 356,000 354,000 Benzene 284,700 252,000 Toluene 86,000 70,000 Orthoxylene 157,300 110,000 LPG Business RIL produces commercial grade of butane from its cracker at Hazira. Packed LPG is marketed as ‘Reliance Gas’ in cylinders to domestic and commercial customers. Bulk product is being sold directly to industrial users for use as fuel and to private bottlers. The customer base of ‘Reliance Gas’ has grown to 7.95 lakhs in the states of Maharashtra, Gujarat, Rajasthan and in Western Madhya Pradesh. Nearly 60% of the customers are in villages with a population of less than 5,000. A well entrenched and strategically located network of 122 distributors and 5,400 distribution outlets services these customers. (Production in tonnes) 2001-02 2000-01 Packed LPG 71,000 65,000 Bulk LPG Industrial users 30,750 29,200 Private bottlers 70,600 64,400 Chemicals RIL is the country’s largest producer and exporter of linear alkyl benzene (LAB), a leading surfactant ingredient in the manufacture of detergents. Reliance has also established a significant presence in the overseas markets of South East Asia, Middle East, Europe and Africa. Economies of scale, backward integration and proximity to the markets make Reliance the most competitive producer of LAB in the country. Reliance accounts for 40% of the domestic Normal Paraffin production. In addition to meeting captive requirements for the production of LAB, a well differentiated product range in Normal Paraffin enables Reliance to cater to the diverse requirements of domestic manufacturers of Chlorinated Paraffin Wax, a plasticiser used in PVC compounding. (Production in tonnes) 2001-02 2000-01 LAB 106,000 110,000 Normal Paraffin 126,500 123,000 Production of ethylene and propylene was captively consumed to the extent of 97%. Production of benzene, toluene and other by-products was consistent with feedstock characteristics. The aromatics production was enhanced by controlled processing of indigenous, aromatics rich naphtha. Reliance maintained its leadership in the domestic benzene market with a share of over 45%. During the year, Reliance exported nearly 25% of its benzene production to styrene manufacturers in South East Asia, Europe, and the US, reflecting the primacy and high international acceptability of its product. Reliance produces premium grade toluene at Hazira, suitable for producing toluene di-isocyanate, benzoic acid and chloro toluenes. Reliance has replaced orthoxylene imports to a large extent and commands nearly 77% share of the domestic orthoxylene market. Textiles Reliance’s textiles complex at Naroda, Gujarat, is one of the India’s largest and most modern textile complexes. Reliance’s textile products are sold under the brand names of Vimal, Harmony, Reance, RueRel, and Slumberel. Vimal, Reliance’s flagship brand, is one of the India’s largest selling brand of premium textiles. Reliance’s premium product quality ensures a ready export market for its textile products, which have found acceptance even in the most discerning markets of the developed world. The Textile Division’s in-house R&D continuously develops new products/ processes. To enhance competitiveness, Reliance undertook a comprehensive restructuring of its textiles business. This rationalisation exercise led to a reduction in total workforce by over 4,600 people. As a part of this exercise, the manufacturing of women’s wear was discontinued during the year. The operations post restructuring have stabilised. Reliance Industries Limited 41 Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) The annual HARMONY art show hosted by Reliance’s Textile Division in April 2002, in Mumbai, met with its usual enthusiastic response. From this year on, the HARMONY show will endeavour to support causes dedicated to ease or better the circumstances of those, who by factors beyond their control, are driven into lives of extreme deprivation. This year’s show provided a platform to ‘Aseema’, a non-governmental organisation engaged in the rehabilitation of street children. Opportunities The Indian economy is generally forecast to grow by 5-6% per annum over the next few years. Per capita consumption in India, for most products and services, remains amongst the lowest in the world. Domestic demand growth in most of Reliance’s products has been at double-digit levels for the past several decades. This secular trend of long term demand growth is expected to be maintained in the future. Reliance intends to leverage its mar ket leadership, and demonstrated strengths, namely, conceptualisation and implementation of complex large projects, technology absorption, financing flexibility, and large in-house pool of intellectual capital resources, to effectively participate in these opportunities. Reliance is harnessing attractive opportunities for profitable growth in its existing businesses of oil and gas exploration and production, refining and marketing of petroleum products, and petrochemicals, as well as in attractive new business areas of interest, such as power and infocom. There are also increasing opportunities for Reliance’s products in the export markets. The demonstrated global competitiveness and international quality of products, and its superior logistic capabilities, provide the company with the ability to pursue these opportunities. Challenges As in the past, in all its businesses, Reliance faces the challenge of normal market competition from domestic as well as international companies. However, it is expected that the company’s sound business strategies and globally competitive cost positions will continue to enable it to retain its leading market positions, maintain operating margins, and enhance long term cash flows. RIL has consistently shown superior performance in the past, even under difficult global operating conditions. Reliance faces the challenge of competing with low cost producers from the Middle East and parts of the Asia Pacific. However, Reliance’s own global competitiveness, strong customer franchise, extensive marketing distribution network, and international quality of products, enable the company to successfully compete in the market. Reliance’s continued domestic market leadership, even after the opening up of the Indian market to imports and the steep decline in import duties, reflects the global competitiveness of its operations, and its unique position of strength in the Indian market. In the E&P business, RIL faces the challenge of undertaking a comprehensive development programme spanning an extensive area of over 177,000 sq. kms., and spanning onshore and offshore, shallow and deep water blocks. Reliance is working with leading international technology and service providers for successful accomplishment of its objectives in this business. In the refining and marketing business, the public sector oil companies enjoy an advantage of an existing distribution infrastructure for retail marketing of petroleum products. RIL faces the challenge of creating a comprehensive retail marketing network for upliftment of its products, consequent upon the abolition of the APM from April 1, 2002 and the opening up of marketing to the private sector. Reliance has already received approvals for setting up over 5,800 retail outlets for marketing of transportation fuels. Reliance intends to leverage its managerial and organisational strengths to set up an appropriate retail marketing network in the medium to long term. For the 2 years from April 1, 2002, Reliance has already signed agreements with the public sector oil companies, IOC, BPCL and HPCL, for offtake of nearly 13 million tonnes of petroleum products. Outlook Refining of petroleum products, and the manufacture of petrochemicals products, presently account for the core of Reliance’s business portfolio. Both these businesses being global in nature, the outlook for margins and profitability depends in large measure upon the overall global economic outlook, the global demand-supply scenario, and trends in feedstock and product prices. Reliance is already amongst the most profitable petrochemicals companies globally, in terms of various key indicators of profitability. Any upturn in the petrochemicals cycle, as and when the same occurs, can significantly enhance Reliance’s profitability, given its scale of operations and its globally competitive cost positions. Conversely, sustained firmness and/or volatility in feedstock prices, primarily crude, as a result of global tensions, can have an adverse impact on Reliance’s margins and profitability. Reliance’s production volumes in both refining and petrochemicals are expected to grow broadly in line with industry trends, over the medium to long term. The increase in volume will be achieved through various routes such as low gestation capacity expansion, cost efficient debottlenecking, and/or attractive acquisitions at competitive costs. Reliance’s entry into retail marketing of petroleum products will add a new revenue stream to its existing business portfolio, in the medium to long term. Reliance is making significant E&P investments in a well-balanced and promising portfolio of oil and gas properties in India. This business has the potential to provide a higher contribution to Reliance’s overall business profile, in the medium to long term. Reliance’s investments in the infocom business have the potential to generate significant value for shareholders, in the medium to long term. Risks and Concerns The domestic, regional and global macro-economic environment directly influences the consumption of petrochemical and petroleum products. Any economic slowdown can adversely impact demand- supply dynamics, and profitability of all industry players, including Reliance. However, the company’s operations have historically shown significant resilience to the fluctuations of economic and industry cycles, with demand for most of its key products continuing to grow at healthy rates even at times of an overall economic slowdown. Reliance’s operations have significant exposure to the domestic market, which accounts for nearly 80% of the revenues. The company is also making investments in attractive new businesses and markets in India. These factors potentially expose Reliance to any risk of a significant shock to the Indian economy, which may 42 Reliance Industries Limited Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) adversely impact the long-term economic fundamentals. Reliance’s continuing focus on exports is a part of its strategy to diversify this risk. Reliance’s highly integrated, and globally competitive operations, leading positions in domestic markets, diversification of markets through exports, and thrust on speciality products, etc., have proved to be effective in mitigating the impact of generic industry risk factors. Unfavourable trends in import tariffs on key raw materials and products may adversely impact the cost structure and/ or selling prices of products in the domestic markets, thereby potentially affecting margins. However, the impact of further import tariff reductions on Reliance’s products is not likely to be material in the future, as import tariffs on Reliance’s major products have already been significantly reduced compared to historic levels. Reliance currently prices most of its products below the import parity price levels, which adds to the company’s pricing flexibility in the event of import tariff reductions. Additionally, the company’s margins are helped by any depreciation of the Indian rupee against the US dollar – the long-term historic rate of depreciation has been in the range of 5% per year. Reliance has insured its assets and operations against a wide range of risks, as part of its overall risk management strategies. The company 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. Any adverse movement in the value of the domestic currency may increase the company’s liability on account of its foreign currency denominated external commercial borrowings in rupee terms. However, Reliance has adopted conservative foreign exchange risk management policies, in this regard. 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. In recent months, the sharp increase in the country’s foreign exchange reserves to over US$ 62 billion (Rs. 301,200 crores) have imparted considerable strength to the Indian rupee, thereby mitigating this risk to a very large extent, at least in the short to medium term, barring unforeseen developments. 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 been addressing new growth opportunities arising from the ongoing liberalisation and deregulation of the Indian economy. Any significant delays in further deregulation or changes in the direction of that process may impact prospects of all new players, including Reliance, who are targeting those opportunities. Reliance is planning to make significant investments in the E&P business, retail marketing of petroleum products, and the infocom business. Delays in the implementation of these projects, any adverse regulatory, judicial or legislative developments in these areas, and/or normal business and competitive risks associated with each of these businesses, could adversely impact returns on Reliance’s investments therein. 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 control systems are supplemented by an extensive programme of internal audits, reviews by management, and documented policies, guidelines and procedures. The internal control systems are 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 use of SAP financial and business management systems, which provide a high level of system based checks and controls, have helped in improving efficiency and effectiveness of Reliance’s internal control systems. Reliance has strong and independent internal audit systems, covering on a continuous basis, the entire gamut of operations and services spanning all locations, businesses and functions. In addition to the in-house internal audit team, Reliance has several leading national and international professional firms on its internal audit panel. Internal audit at Reliance includes evaluation of all financial, operating and information technology system controls. Internal audit findings and recommendations are reviewed by the top management and the Audit Committee of the Board. Reliance Telecom RIL holds a 26% equity stake in Reliance Telecom Limited (RTL). RTL provides cellular telephony services, using the GSM standard, in 15 states, covering an area equal to almost 1/3rd of India’s geographical area, and with a total population of 400 million people. RTL’s cellular services are provided in 118 cities and towns in India. During the year, RTL’s cellular subscriber base crossed 380,000 recording a growth rate of 103%, which was significantly higher than the industry growth rate of 80%. This growth was achieved through balanced tariffs and focused marketing strategies including the introduction of prepaid cards in all circles. During the year, RTL achieved a significant milestone with its operations becoming EBT (earnings before tax) positive. This milestone has been achieved in a little over 4 years from the commencement of cellular operations. RTL also holds a licence for providing basic telecom services in the state of Gujarat and Union Territories of Daman, Diu, Dadra and Nagar Haveli. The company has initiated both infrastructure build-up and marketing activities so as to launch commercial services in rural, semi-rural and urban short distance charging areas (SDCAs) as per the rollout stipulation in the current financial year. Reliance Industries Limited 43 Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Reliance Infocomm RIL is the lead investor in Reliance’s initiatives in the infocom sector. Reliance’s infocom initiatives are aimed at contributing to the acceleration of India’s economic growth, building world class assets, capable of delivering superior long term returns, and enhancing overall shareholder value. Current teledensity in India is amongst the lowest in the world, with only 43 million phones in a population of over a billion people. The Government’s stated objective is to achieve over 150 million phones by the year 2010. The Government has adopted an open door policy, promoting unlimited competition in telecom services, in the best interests of consumers. Reliance is implementing plans for addressing the entire telecom market in India with a national footprint, and a presence in fixed line, mobile, national long distance, and international long distance telephony, as well as a complete range of data, image and value added services. Reliance is building a world class broadband, IP backbone, connecting India’s top 115 cities with over 60,000 route kilometers of fibre, and with terabit capacity. The backbone will link areas contributing over 50% of the country’s GDP. Reliance holds licences for providing basic fixed line telephony services, including WLL (Wireless in Local Loop, also known as limited mobility) services, in 18 states, covering over 95% of the country’s population. Reliance also holds a licence for providing National Long Distance (NLD) services, and International Long Distance (ILD) services. Reliance proposes to leverage its core competencies of complex project management, technology absorption, financial engineering, and building grass-root businesses, to become a leading player in the infocom landscape. Reliance is implementing its infocom projects with a traditional return based philosophy to maximise value, and with a focus on traditional financial criteria, like positive cash flows, attractive IRRs and ROEs, and low payback period. Reliance Power Reliance intends to pursue future opportunities in the power sector through its interests in BSES Ltd. (BSES). BSES, India’s premier utility company, is engaged in the generation, transmission and distribution of electricity. BSES also provides services in electrical contracting, engineering, procurement and construction contracts. BSES is ranked amongst India’s top 20 private sector companies in terms of net profits, and amongst the top 30-35 private sector companies, on all other financial parameters. BSES reported sales of Rs. 2,783 crores (US$ 570 million) for 2001-02, with net profits of Rs. 281 crores (US$ 58 million). BSES, on its own, and through its subsidiaries/joint venture companies, has power generation capacity of around 885 MW. BSES is also the largest private sector power distribution company in India, holding the licence for distribution of power in major areas of Mumbai, and also for more than 75% of the area for the state of Orissa. Recently, BSES has acquired majority stakes in two of the three newly formed distribution companies, for distribution of power in South and West, and Central and East areas of Delhi. BSES and its subsidiaries now provide electricity services to more than 5 million consumers, covering an estimated population of 45 million. As on March 31, 2002, Reliance was the single largest shareholder in BSES, with an equity stake of nearly 38%, and 2 nominees on the Board of Directors of the company, out of a total strength of 9 persons. Energy Conservation Reliance has a well-laid out comprehensive energy conservation policy in place and is guided by this policy in all its actions. Besides monitoring specific energy consumption of individual production facilities, several benchmarking exercises are routinely undertaken to consistently improve upon performance. During the year, Process Design Centre, Netherlands carried out energy benchmarking studies for all three MEG plants, which are rated amongst the top five plants in the world for energy performance (based on Exergy). M/s Solomon carried out the benchmarking study of the naphtha cracker plant of Hazira for the year 2001. power and steam generation plants to improve fuel efficiency at all manufacturing sites. Reliance understands that increasing productivity of operating plants significantly reduces specific energy consumption of finished products and this has been the major emphasis besides undertaking specific energy conservation schemes. Different energy conservation training programs were conducted during the year to enrich knowledge of the engineers and to facilitate practice of the same in ongoing operations. Apart from external benchmarking studies in process plants, a periodic internal benchmarking exercise is carried out in the captive Pinch Technology and heat & power integration studies were also carried out for the cracker and MEG plants. 44 Reliance Industries Limited Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Reliance’s energy conservation efforts were recognised and awarded by many external agencies. A few of these awards were: 3. ICMA award for the Hazira complex for the third consecutive year 1. National Energy Conservation Award by Ministry of Power, Government of India (Second position) to Patalganga complex 4. Second consecutive Petroleum Conservation Research Association (PCRA) award to Hazira complex 2. Confederation of Indian Industries (CII) certificate as ‘Energy 5. Federation of Gujarat Industries (FGI) award for ‘Excellence in Efficient Unit’ to Hazira & Patalganga complex Energy Conservation’ to Hazira complex Research & Development Research & Development (R&D) activities are an integral part of the company’s overall operations. Reliance follows growth-oriented R&D to support its overall corporate objectives of growth and performance. During the year, polymer R&D activities received a major boost owing to multi-pronged initiatives such as augmentation of R&D facilities, focus on process enhancement research, and development of new product grades. Reliance has two DSIR (Department of Scientific and Industrial Research) accredited R&D laboratories at Hazira and Mumbai. During the year, the Hazira R&D centre was augmented with the installation of a state-of-the-art polymerisation pilot plant. Similarly, Product Application Research Centre (PARC) at Mumbai, installed new testing equipment and moulding facilities for application research. During the year, Hazira R&D Centre filed a patent on ‘Olefin polymerisation titanium catalyst’. The earlier patent, filed last year, on ‘Lower alpha-alkene polymerisation heterogeneous solid catalyst’ has entered into National Phase Application in several countries. The company has an ongoing 5-year research alliance agreement with National Chemical Laboratory (NCL), Pune. Under this agreement, the company jointly with NCL, successfully developed Artificial Neural Networking model (soft sensors) for its polyethylene plant. Besides in-house R&D projects, the polymers business continues to sponsor and participate in various outsourced R&D initiatives at leading institutes and laboratories, including Jawaharlal Nehru Centre for Advanced Scientific Research – Bangalore, IIT Madras and University of Massachusetts, in the US. 112 employees were trained on advanced polyolefins technical modules under the Knowledge Management program, run jointly with NCL. The Reliance Technology Centre (RTC) is an in-house R&D unit working on polyester fibres, filaments, resins and polymeric materials through innovative research and technology development in materials, processes, products and applications. The major achievements at RTC during the year included: (cid:1) Commercialisation of new technology to produce superior quality dope dyed black polyester staple fibre (cid:1) Development and commercialisation of CP based process technology for high tenacity/ high modulus dope dyed black fibres (cid:1) Development and commercialisation of short cut PSF for paper reinforcement (cid:1) Development of new indigenous finish systems for polyester staple fibres for performance improvement and cost savings During the year, 11 new grades of polypropylene and 5 new grades of polyethylene were developed and launched through various R&D initiatives. In addition, as a part of regular exercises during the year, several R&D activities were carried out to improve plant performance, reduce costs and optimize processes. Quality Reliance is committed to total customer satisfaction in terms of quality and services for the entire range of its products. The continued commitment to excellence and innovative efforts to enhance Quality contribute to Reliance’s market leadership in its various businesses. Quality standards are primarily achieved through automated systems (reducing manual handling to a minimum), high attention to complaint resolution, online communication and information exchange, quality circles and adoptions of programmes such as “six sigma”, and institutionalisation of benchmarking and other methods, which constantly guide Reliance employees in all their activities. Right since its inception, Reliance’s quality strategy has evolved to ensure that it uses the world’s best technology, a highly trained workforce, as well as cutting edge equipment and instrumentation. Reliance has also put in place a top class communication module enabling advanced process control. Above all, continuous monitoring allows a high degree of consistency in quality performance. Reliance’s increasing exports revenues, and the fact that it commands market leadership in India in the face of unrestricted competition from imports, bear testimony to the international quality of Reliance’s products. Reliance’s products are now exported to over 100 countries across continents, including the US and Europe. Reliance has in place a clearly defined system to ensure that the quality philosophy permeates to every aspect of the business. The system is focussed on maintaining uniform quality at every stage of activity. Quality is considered to be at the heart of not just every product, but of every activity, since each activity contributes to the final output. Reliance Industries Limited 45 Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Reliance’s plants have received a total of 29 ISO 9000 certificates. In addition, more than 100 Reliance employees have become eligible for six-sigma black-belt certificates. These achievements bear ample testimony to Reliance’s commitment to quality. During the year, Reliance achieved the distinction of securing the Golden Certificate for 10 consecutive months from Shell Global Solutions, for excellence in the reliability of testing. Continuous monitoring of quality, coupled with cost, using the QLI (Quality Loss Index) modules is being followed at Hazira Complex. Reliance plans to introduce this in other manufacturing sites as well. Health Reliance accords a very high priority on providing adequate and modern medical services to all its people. Reliance has occupational health centres (OHC) at all locations. Reliance places the emphasis on prevention of work related health hazards, reduction of health impairment, and the promotion of positive health. Activities at the Hazira manufacturing complex included health a u d i t s , m e d i c a l m o n i t o r i n g , c o m p a r a t i v e s t u d i e s o f interdepartmental health status, and steady improvement in all medical facilities. A comprehensive health risk assessment study was also carried out in the plant for exposure to various chemicals. Senior health specialists, fully supported by qualified doctors and trained paramedical staff, are available at all locations. There is a continuous emphasis on improving health standards through improvement in production processes, as also various health promotion activities. The role of health-education and awareness in promotion of health cannot be overemphasised. Working on the theme - ‘To enable the employee to understand his own health better’, over last five years, the OHC at Patalganga complex has evolved an effective multi- pronged health awareness program to address common health concerns like hypertension, diabetes, heart disease, backache prevention and lifestyle management. The occupational health and family welfare centre established at the Jamnagar complex caters to the comprehensive healthcare needs of employees and their families, staying in the township. The regular activities include pre-employment medical examinations, periodic medical check-ups of employees, school health check-ups, preventive immunisation and medical camps. A medical data management system has been developed and installed at all the medical centres, rendering the site medical centres paperless. The Naroda complex, too, houses a full-fledged health centre with facilities for emergency and routine health care. Safety ‘Safety of person overrides all the production targets’ – is the Health, Safety and Environment policy of Reliance. Reliance is committed to the health and safety of its own employees, contractors’ employees and visitors, and aims for ‘Zero Accident’ targets. To get closer to the goal of ‘Zero Accident’, Reliance undertook various activities and initiatives during the year, such as: (cid:1) Intersite audit conducted for the first time at all three sites (cid:1) A new work permit system common to all three sites has been developed by joint participation of the safety personnel from the three sites. The same is already implemented at Hazira. The new work permit system will soon be transformed to an e-permit system. (cid:1) A combined corporate safety plan for the year 2002-03 consisting of the plans from the three sites has been worked out and put in operation for the first time. (cid:1) Based on DuPont’s Safety Training Observation Program (STOP) training modules, training programs were organised to improve employee behaviour and attitude towards safety. (cid:1) Various national level conferences/ training programs/ seminars were attended by employees to stay updated with the latest developments in the field of HSE. (cid:1) Shell Global Solutions carried out a safety audit of Hazira facilities for the first time and a repeat audit for the Jamnagar facilities. During the year, the Jamnagar complex received the Shell Safety Award for achieving 10 million man-hours without any lost time accident. Environment Healthy business operations need a healthy environment to excel. Reliance is committed to improving the quality of life and enhancing the sustainability of all business activities. To achieve these objectives, various participative initiatives are practiced and promoted. Strict adherence to all regulatory requirements and guidelines is maintained at all times. Anticipated legislation, rules and regulations are also considered, and provisions are made during the design engineering phase. The systems are designed so that the products meet not just the present norms, but even future environmental regulations without requiring any major modification. The Jamnagar complex has been planned, designed, constructed and commissioned in line with the philosophy on environmental protection as an integral part of the equipment and operations. The environment has been considered with high importance in every aspect of design, commissioning and operation of the refinery. The refinery complex is unique and does not put any burden on the water resources in the region as it has an integrated desalination plant to produce 48 million litres per day of desalinated water for use in process and domestic applications, using the low temperature 46 Reliance Industries Limited Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) heat sources of the process units. This desalination plant is coupled with a state-of-the-art effluent treatment plant, thereby conserving water and protecting the environment. The Hazira complex is the only integrated petrochemicals complex enjoying ISO 14000 certification for its implementation of an Environmental Management System (EMS). The complex is being regularly and continuously audited by Lloyds Register Quality Assurance, as a part of the certification procedure. Maximum water cess rebate was granted by the Gujarat Pollution Control Board for the year 2000-01 signifying the efforts made for conservation of water and effluent treatment. The Hazira complex has made many innovative efforts towards environment protection. One such effort was the setting up of a vermiculture plant to convert the garden waste (generated in house) to vermicast, an organic fertiliser, which is used as a substitute to commercial fertiliser for in-house uses. The Hazira complex was honoured with Indo German Greentech Environment Excellence Award for the year 2001 (instituted by Greentech Foundation) in the petrochemical category. At all the manufacturing sites lush greenery has been developed utilising treated effluents. Utilising treated effluent for the greenery avoids any additional fertiliser usage and also conserves the requirements of fresh water for greenery development. Around 2,200 acres of land at Reliance’s Jamnagar complex has been transformed into green pastures, with agroforestry of over 2.3 million trees. The trees being grown in the complex include mango, teak, neem, guava, custard apple and medicinal plants. In all, over 200 species are being planted in the green belt. Also, mangroves have been planted to protect the marine environment around Sikka/ Vadinar, where the port facility is located. In order to keep up with the global commitment towards environment, Reliance is also conducting research and development for new products that are environment friendly. Research options are being examined for assisted bio-degradation of commonly used polymers. Reliance is conducting research using biotechnology and engineering to develop a range of polymers that will be biodegradable in the natural environment. Human Resource Development Reliance believes “Growth is Life” – for Reliance and for all Reliance people. A large in-house pool of intellectual capital is the driving force behind Reliance’s accelerated growth, and is one of its fundamental competitive strengths. To enable consistent growth, Reliance puts a great deal of effort behind creating a workplace where every Reliance employee can reach their full potential and achieve maximum personal fulfillment. RIL is a young company, with an average age of 37 years for its 12,864 employees as on 31st March 2002. Reliance has over 4,200 qualified professionals accounting for nearly 70% of the total supervisory work force. Breakup of professional workforce Ph.D. MBAs Engineers CA/ ICWAs 2% 9% 83% 6% Age Profile Upto 25 years 26 - 35 years 36 - 45 years 46 - 55 years 56 + years 5% 44% 34% 15% 2% Reliance offers world of opportunities to employees by giving them more freedom and responsibility to chart their own course within the company. The company offers comprehensive world-class training and development resources. Networking, coaching and mentoring provide additional opportunities for people to grow personally and professionally throughout their careers. The company has a unique system that offers a wide spectrum of career options for employees to choose from, and the necessary learning courses. The onus of learning is on the employees who are duly supported by excellent systems for assessments, career mapping, aptitude tests and other training needs. During the year, over 1,000 training programs covering over 6,400 employees were conducted. In association with Indian Institute of Management (IIM) - Bangalore, Reliance has created a unique and customised management course for its engineers. The seventh batch of such engineers who successfully completed the course was prepared for taking over marketing responsibilities in line with the new demands. The employees, who were prepared for accelerated growth careers in the company, today occupy positions with impor tant sectional responsibilities at a young age of 27-30 years. Reliance’s appraisal and reward system is aimed at increasing employee involvement in the goals and objectives of the organisation, and encouraging individuals to go beyond their scope of work, undertake voluntary projects that enable them to learn, and contribute innovative ideas in meeting the targets of the company. The company has moved to a Key Result Area oriented performance appraisal system and will soon move to performance linked incentive scheme, wherein the employees will share the risk and the rewards of company’s perfor mance, business perfor mance, team performance and their individual performance. Reliance is in the final stages of launching SAP-HR to provide an effective interface between HR and the employees spread over diverse locations. Social Responsibility and Community Development Reliance believes that organisational growth objectives need to be married with the overall developmental imperatives of the society and the community at large, for ensuring sustainable all-round growth. Reliance’s social welfare and community development initiatives focus on the key areas of education, healthcare, and the overall development of the communities in which the company operates. Reliance has always been quick to place all its resources at the service of the nation and the community, in times of crises and emergency. The Reliance group undertakes its social welfare and philanthropic initiatives through various organisations, including corporates, trusts, and others. Reliance Industries Limited 47 Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Educational Initiatives Dhirubhai Ambani Institute of Information and Communication Technology (DA-IICT) Dhirubhai Ambani Foundation (DAF) has established the Dhirubhai Ambani Institute of Information and Communication Technology (DA-IICT) at Gandhinagar near ‘Infocity’, in Gujarat. The institute started functioning from August 2001, admitting 246 students through an All India Entrance Test for the four-year undergraduate programme in Information and Communication Technology. The first two semesters of this programme were successfully completed during the year. From the academic year 2002-03, postgraduate programmes have also been started. The institute will also offer a wide range of training and research programmes and continuing education programmes for working executives and practicing professionals. Currently, the total number of students in the institute is over 600. The institute plans to grow to a strength of 1,300 students by 2004- 05, with about 60 full time faculty and a number of visiting faculty and teaching/ research assistants. A number of new facilities have been created including additional floors for teaching and research laboratories, lecture theatres, a sports complex and cultural centre, and food courts. Hostel accommodation for the students is being created on the campus. The Resource Centre (Library) is also under construction. Dhirubhai Ambani University of Science and Technology (DAUST) DAF is planning to establish the Dhirubhai Ambani University of Science and Technology (DAUST), a postgraduate university, at Jamnagar which will focus on emerging knowledge areas, namely bio-science and engineering, computer science and engineering, energy engineering, food science and engineering, infrastructure engineering, materials science and engineering, and ocean engineering. Dhirubhai Ambani International School The latest education initiative of the Reliance Group is the ‘Dhirubhai Ambani International School’ (DAIS) being set up at Bandra-Kurla Complex, Mumbai. DAIS will offer K-12 education of world-class standards, and is seeking affiliation to national and international education boards. Designed to be one of the most IT enabled schools in the country, DAIS will follow an integrated curriculum combining the best of various national and international standards that will prepare students to effectively take up the following boards of education: (cid:1) Indian Council of Secondary Education (ICSE) of the Council for the Indian School Certificate Examinations, New Delhi (cid:1) The “O” level International General Certificate of Secondary Examination (IGCSE) offered by the Cambridge International Examinations (cid:1) The Diploma Programme of the International Baccalaureate Organisation (IBO), Geneva. This co-education day school housed in a state-of-the-art complex with modern teaching and learning facilities will place highly motivated young minds under the tutelage of the best teaching talent drawn from across the world. The school will commence classes for KG to Class VIII and Class XI during the academic session 2003- 04. Scholarships The DAF continued to encourage district level meritorious students at the annual SSC and HSC examination by presenting merit rewards and undergraduate scholarships. Till date, a total of 2,623 students from each of the 62 districts of the states of Maharashtra, Gujarat, Goa and the Union territories of Diu, Daman, Dadra and Nagar Haveli, have benefited from these schemes. These include one girl student and one physically challenged student from each of the districts. Under the ‘Reliance Kargil Scholarship Scheme’ 114 children of martyrs/ disabled soldiers from Kargil war received scholarships during the year. Since June 2001, DAF has also instituted a reward and scholarship scheme for the physically challenged meritorious students at HSC and SSC exams from each of the states of India. Healthcare Initiatives Sir Hurkisondas Nurrotumdas Hospital and Research Centre (HNH&RC), Mumbai DAF has joined the management of Sir Hurkisondas Nurottumdas Hospital and Research Centre (HNH&RC) and Sir Hurkisondas Nurottumdas Medical Research Society (HNMRS), based in Mumbai. HNH&RC is one of the oldest hospitals established in 1925, and HNMRS is a 28-year-old institution involved in clinical research having a social bearing. Over the next few years, DAF plans to make substantial contribution for converting this hospital into a ‘patient focused’ and ‘Not for Profit’ world class, state-of-the-art centre of excellence in the field of healthcare. This institution will serve as a knowledge domain for healthcare activities and become a hub for a wider healthcare network. It is also proposed to make this a centre of excellence for clinical research and medical education. HNH&RC currently offers tertiary level health care facilities including super-specialties like cardiology, cardio-thoracic surgery, neurology and neuro-surgery, oncology, urology, nephrology, gastroentrology, etc., with over 200 consultants in various specialisations, and a total staff of about 1,000, including paramedical and other support staff. HNH&RC also provides free and subsidised outpatient and inpatient treatment for the poor. HNH&RC is recognised for offering the post graduate program, leading to post-graduate diplomas in various specialties awarded by College of Physicians & Surgeons (CPS), Mumbai and the DNB (Diplomate of National Board) in various specialties and super- specialties awarded by the National Board of Examinations, New Delhi. HNH&RC is also recognised by Mumbai University for M.Sc. and Ph.D. in biochemistry, applied biology, and microbiology. The hospital also runs a nursing school. HNMRS has completed 100 clinical/ scientific research projects, including many multi-disciplinary ones, since its existence. Over 150 research papers have also been presented at various national and international conferences based on the research projects of HNMRS. These research projects are selected carefully with an aim to undertake community-based studies, which are relevant to the society. Dhirubhai Ambani Hospital, Lodhivali, District Raigad This 82-bedded state-of-the-art hospital caters to an industrial and rural population in the Raigad district of Maharashtra. It provides for free outpatient and subsidised inpatient treatment for the needy and poor patients as well as for senior citizens. It also provides free treatment to trauma victims of highway accidents till stabilisation. The hospital, the only such comprehensive health care institution in the region, has been in existence for about 4 years and has proved its worth by saving numerous lives of victims of vehicular and industrial accidents. Community Development Reliance attaches a high level of importance to improving the quality of life in the communities surrounding its all-manufacturing complexes. The initiatives include coming to the rescue of the community at times of crises, and also longer-term efforts in areas of education, health, and programmes for social upliftment. Reliance runs its own schools at its manufacturing sites, which provide high quality education to the children of employees, and also to the children living in nearby areas. These schools are all equipped with modern amenities like well-stocked libraries, computers, laboratories, sports facilities and playgrounds. Transportation facility 48 Reliance Industries Limited Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) is provided to all students, enabling students living in nearby villages to attend school everyday. During the year, Reliance in association with the Municipal Corporation of Greater Mumbai, launched the Secondary Schools Computerisation Project to facilitate computer education for 51 municipal secondary schools of Mumbai, covering approximately 68,000 students in Classes V-X. Computer laboratories are being created in each of these schools. Each computer lab will have 15 multi-media computers connected on a network; with a printer, scanner, software applications and educational multimedia content for various syllabus subjects, including Maths and Science. The project aims to benefit not only the students, but also the teachers and the municipal schools. While the students will gain the skills needed to be productive and successful citizens in the new knowledge era, the teachers will benefit by learning new skills that will further their professional development. The schools will benefit by acquiring the resource, skills and self-sufficiency to carry this project forward on their own, into the future. Jamnagar town faces acute drinking water shortages. In order to mitigate the problems of people, Reliance supplies drinking water from its state-of-the-art seawater desalination plant during summer periods of shortages. Drinking water was supplied for the third successive year in the summer of 2002. Dwarka, a holy place near Jamnagar, has been a centre of attraction not only for pilgrims of the country but also for archeologists, historians and tourists from all over the world. During the year, Reliance took up much needed renovation and overall development plan of Dwarka by joining hands with the various organisations/ offices of the Government of Gujarat. DAF has recently established a sanatorium at Chorwad, Gujarat, for the use of patients needing change of climate and recuperation. During the year, Reliance also carried out community services work in villages adjoining its Jamnagar and Hazira complexes, to improve the quality of life of people. Some of the activities at Jamnagar were – supply of fodder, organisation of blood donation camps, regular health check-up camps and mobile dispensar y ser vices, reconstruction of temples and assistance to several voluntary organisations to carry out cultural and social festivals/ functions etc. The community services carried out at Hazira included – donations to Surat Municipal Corporation and District Collectorate for e- governance programmes, awards to motivate meritorious students, donations of computers and library books to various schools, donations of tricycles to handicapped students, organisation of inter- village/ inter-school sports and cultural competitions, mobile health van services, organisation of health camps and initiatives to provide self-employment opportunities for women. DAF and Sampradaan - the Indian Centre for Philanthropy, organised the second national conference of Char itable Foundations in India during the year. The objective was to network charitable foundations for professional exchange of views, experiences and to explore ways for collaboration. The conference on the theme “Promoting Good Governance: Internal and External” was well attended by about 35 NGOs from all over India. A platform to display the art and craft produced by underprivileged children from Aseema – an NGO devoted to their welfare - was provided along with the annual Harmony Exhibition organised by the Textile Division of RIL. Foreign Exchange Savings, Taxes Paid and Exports Foreign Exchange Savings Reliance primarily manufactures products that are impor t substitutes, thereby contributing to savings of precious foreign exchange for the country. During the year, the company’s operations have helped the nation save valuable foreign exchange to the tune of Rs. 20,169 crores (US $ 4,133 million), an increase of 17% over the previous year’s figure of Rs. 17,309 crores. 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. 10,470 crores ($ 2,145 million) in the form of various taxes and duties against Rs. 4,277 crores for the previous year. 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 RIL’s exports, including deemed exports, increased to Rs. 11,200 crores (US$ 2,295 million), from Rs. 9,370 crores (US$ 2,010 million) in the previous year. This ranks RIL as the largest exporter in the country. During the year, RIL exported products to over 100 countries, including the most quality conscious customers in the US and Europe. These substantial export revenues demonstrate Reliance’s global competitiveness, the world-class quality of its products, and superior logistics capabilities. This strong growth in exports has been achieved while retaining the thrust on the domestic markets, with exports still representing only 20% of RIL’s gross turnover. In July 2001, Reliance was granted Super Star Trading House status by the Directorate General of Foreign Trade, a division of the Ministry of Commerce, Government of India, in recognition of the company’s outstanding achievement in exports. Rankings, Awards and Recognition During the year, Reliance received several national and international awards/ rankings in recognition of company’s commitment to excellence. Corporate Rankings from the emerging markets. Reliance became the first private sector company to enter in the list of Forbes International 500 companies. Reliance became the only Indian company, and the only one from the chemicals industr y, to be included in the World Investment Report (WIR) 2001 list of top transnational companies During the year, a survey conducted by the American Chemical Society recognised Reliance as one of the two fastest growing chemical companies in Asia, and amongst the top ten most Reliance Industries Limited 49 Reliance Industries Directors Report.p65 # G ROWTH I S L I F E profitable chemical companies in the world. A survey carried out by Far Eastern Economic Review (FEER) voted Reliance as the top company in ‘Financial Soundness’ amongst Indian companies. A Reed Chemical Group Survey rated Reliance amongst the top ten profitable chemical companies in the world. Asia Week, in its annual survey of Asia’s 1,000 largest companies, rated Reliance as the third most valuable chemical company in Asia and Reliance Petroleum amongst the top 10 profitable oil and gas companies in Asia. Reliance was ranked first amongst Indian companies in ‘Best Financial Management’ category in a survey conducted by FinanceAsia magazine. Reliance’s US$ 750 million six-year syndicated loan was named IFR Asia’s ‘The Capital Market Deal of the Year’. During the year, Taylor Nelson Sofres-Mode (TNS-Mode) survey rated Reliance as India’s ‘Most Admired Business House’. According to a Business World - Indian Market Research Bureau (IMRB) survey conducted among CEOs across the country, Reliance figured amongst India's top three Most Respected Companies. During the year, Reliance was granted the Golden Super Star Trading House status by the Directorate General of Foreign Trade (DGFT), in recognition of the company's outstanding achievement in exports. Reliance was selected as one of the Best Employers in India by BT-Hewitt Associates survey. Recognition for Management Reliance's Founder Chairman, Shri Dhirubhai H. Ambani (1932- 2002) was conferred the Economic Times Award for Corporate Excellence for lifetime achievement. Vice Chairman and Managing Director of the Company, Shri Anil D. Ambani received the first Wharton Indian Alumni award in December 2001, for his contributions towards establishing Reliance as a global leader in many of its business areas. Corporate Governance Reliance believes in adopting the best global practices in the area of corporate governance, and follows the principles of fair representation and full disclosure in all its dealings and communications, thereby protecting rights and interests of all its stakeholders. Reliance recognises communication as a key element of the overall corporate governance framework, and therefore emphasises continuous, efficient, and relevant communication to all external constituencies. Reliance's annual reports, results media releases, results presentations, and other forms of corporate and financial communications, provide extensive details and convey important information on a timely basis. Reliance communicates corporate, financial and product information, online, on its website, www.ril.com. The corporate communications and investor relations functions are accorded the highest level of importance within the Company, with active ongoing monitoring by, and involvement of, the top management. Reliance has always focused on good corporate governance, which is a key driver of sustainable corporate growth and long-term shareholder value creation. 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 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: l Conflict of Interest l Payments and Gifting l Receipt of Gifts l Purchases through suppliers l Appointment of full-time agents, consultants and representatives l Political Contributions The “Business Policies” document contains the policy on the following: l Fair Market Practices l Inside Information l Financial, Records and Accounting integrity l External Communication l Work Ethics l Personal Conduct l Health Safety and Environment l Quality The “Insider Trading Policy” document contains the policies prohibiting insider trading. 50 Reliance Industries Limited Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) The Company's shares are listed on ten Stock Exchanges in India and GDRs are listed on Luxembourg Stock Exchange. In accordance with Clause 49 of the listing agreement with the domestic stock exchanges and best practices followed internationally on Corporate Governance the details of compliance by the Company are as under: 1. Company's philosophy on Code of Governance Reliance's philosophy on corporate governance envisages the attainment of the highest levels of transparency, accountability and equity, in all facets of its operations, and in all its interactions with its stakeholders, including shareholders, employees, the government and lenders. Reliance is committed to achieving the highest international standards of corporate 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 consists of 13 directors (earlier 14 directors). Composition and category of Directors is as follows: Category Promoter/Executive Directors Name of the Directors D.H. Ambani Chairman (upto 6th July, 2002) M.D. Ambani * Chairman & Managing Director (from 31st July, 2002) A.D. Ambani ** Vice Chairman & Managing Director (from 31st July, 2002) N.R. Meswani Executive Director H.R. Meswani Executive Director Promoter Non-Executive Director R.H. Ambani Non-Promoter Executive Director Independent Directors H.S. Kohli Executive Director M.L. Bhakta Y.P. Trivedi T.R. U. Pai U. Mahesh Rao (Nominee Director -GIC) Dr. D.V. Kapur M.P. Modi S. Venkitaramanan ++ * M.D. Ambani Vice Chairman & Managing Director upto 30th July, 2002. ** A.D. Ambani Managing Director upto 30th July, 2002 Attendance of each Director at the Board meetings, last Annual General Meeting and Number of other Directorship and Chairmanship / Membership of Committee of each Director in various companies: Name of the Director Attendance Particulars No. of other directorships and committee member/chairmanship Board Meetings Last AGM Other Committee Committee Directorships Memberships Chairmanships 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 Dr. D.V. Kapur M.P. Modi 5 4 5 5 5 5 5 4 5 5 5 5 5 4 Present Present Present Present Present Present Present Present Present No Present Present Present Present 1 3 2 1 1 1 7 6 13 5 10 7 11 4 None 2 2 1 None None None 9 7 2 None 9 4 3 None 1 None None None None None 5 1 None None 1 2 2 ++ Ceased to be nominee of ICICI Bank Limited on the Board with effect from 2nd August, 2002. Appointed as an Additional Director with effect from 14th August, 2002. # Includes Directorships and memberships of erstwhile Reliance Petroleum Limited. Number of Board Meetings held and the dates on which held 5 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: 30th April, 31st July, 31st October in 2001, 31st January and 3rd March in the year 2002. The maximum time gap between any two meetings was not more than three calendar months. 3. Audit Committee the Company has constituted an Audit The Board of independent, Non-Executive Committee, comprising Directors viz. Shri Y.P. Trivedi, Chairman, Shri S. Venkitaramanan, Shri U. Mahesh Rao and Shri T.R.U. Pai. The constitution of Audit Committee also meets with the requirements under Section 292A of the Companies Act, 1956. four The terms of reference stipulated by the Board to the Audit Committee are, as contained under Clause 49 of the Listing Agreement, as follows: a. Oversight of the Company's financial reporting process and the disclosure of its financial information. b. Recommending the appointment and removal of external auditors, fixation of audit fee and also approval for payment for any other services. c. Reviewing with management the annual financial statements before submission to the board, focussing primarily on (i) any changes in accounting policies and practices, (ii) major accounting entries based on exercise of judgement by management, (iii) qualifications in draft audit report, (iv) significant adjustments arising out of audit, (v) the going concern assumption, (vi) compliance with accounting standards, (vii) compliance with Stock Exchange and legal requirements concerning financial statements and (vii) any related party transactions i.e. transactions of the company of material nature, with promoters or the management, their subsidiaries or relatives etc. that may have potential conflict with the interests of Company at large. Reliance Industries Limited 51 Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) d. Reviewing with the management, external and internal auditors, the adequacy of internal control systems. e. Reviewing the adequacy of internal audit functions. f. Discussion with internal auditors any significant findings and follow up there on. internal auditors g. Reviewing the findings of any internal investigations by the is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board. into matters where there h. Discussion with external auditors before the audit commences nature and scope of audit as well as have post-audit discussion to ascertain any area of concern. i. Reviewing the Company's financial and risk management policies. j. To look into the reasons for substantial defaults in the payment to the depositors, debentureholders, share- holders (in case of non payment of declared dividends) and creditors. During the year, the Committee has met 4 times, as against the minimum requirement of 3 meetings. All the members of the Audit Committee were present in all the meetings held during the year. 4. Remuneration Committee The Board of the Company has constituted a Remuneration Committee, comprising of 3 independent, Non-Executive Directors viz. Shri M.L. Bhakta, Chairman, Shri Y.P. Trivedi and Shri U. Mahesh Rao. The Remuneration Committee has been constituted to recommend/review the Managing/ Whole time Directors, based on performance and defined criteria. remuneration package of the The remuneration policy is directed towards rewarding performance, based on review of achievements on a periodical basis. The remuneration policy is in consonance with the existing Industry practice. Since there was no proposal for enhancement in the remuneration of the Directors, the Committee did not meet any time during the year. Details of remuneration to Directors for the year: The aggregate value of salary and perquisites including commission payable for the year ended 31st March, 2002 to Wholetime Directors is as follows: Shri D.H. Ambani, Rs.11.55 crores, Shri M.D. Ambani, Chairman and Managing Director, Rs.9.46 crores, Shri A.D. Ambani, Vice Chairman and Managing Director, Rs.9.43 crores, Shri N.R. Meswani, Executive Director, Rs. 2.48 crores, Shri H.R. Meswani, Executive Director, Rs.2.46 crores. The aggregate value of salary and perquisites paid to Shri H.S. Kohli, Executive Director was Rs.0.20 crore. Besides this, all the Wholetime Directors were also entitled to company's contribution to Provident Fund, Superannuation or Annuity Fund, to the extent not taxable and Gratuity and encashment of leave at the end of tenure, as per the rules of the Company. The Company pays sitting fees to all the Non-Executive Directors at the rate of Rs. 5000 for each meeting. The sitting fees paid for the year ended 31st March, 2002 to the Directors are as follows:- Shri R.H. Ambani, Rs. 25,000; Shri M.L. Bhakta, Rs. 70,000; Shri Y.P. Trivedi, Rs. 90,000; Shri T.R.U. Pai, Rs. 45,000; Shri S. Venkitaramanan, Rs. 45,000; Shri U. Mahesh Rao, Rs.45,000; Dr. D.V. Kapur, Rs. 25,000 and Shri M.P. Modi, Rs. 20,000. 5. Shareholders'/ Investors' Grievance Committee The Board of the Company has constituted a Shareholders' / Investors' Grievance Committee, comprising of Shri M.L. Bhakta, (Chairman), Shri Y.P. Trivedi, Shri M.D. Ambani and Shri A. D. Ambani. The Committee, inter alia, approves issue of duplicate certificates and oversees and reviews all matters connected with the securities transfers. The Committee also looks into redressal of shareholders' complaints like transfer of shares, non-receipt of balance sheet, non-receipt of the declared dividends, etc. The Committee oversees performance of the Registrar and Transfer Agents, and recommend measures for overall improvement in the quality of investor services. The Board of Directors have delegated the power of approving transfer of securities to the Managing Directors and the Company Secretary. The Board has designated Shri Rohit C. Shah, Vice President and Company Secretary, as the Compliance Officer. The total number of letters/complaints received and replied to the satisfaction of shareholders during the year under review, was 38,441. Outstanding letters/complaints as on 31st March, 2002 were 520, which were attended/replied to by 6th April, 2002. 167 requests for transfers and 879 requests for dematerialisation were pending for approval as on 31st March, 2002, which were approved and dealt with by 2nd April, 2002 and 4th April, 2002 respectively. 6. General Body Meetings Location and time for last 3 Annual General Meetings were: Year AGM Location Date Time 1998-99 AGM Birla Matushri Sabhagar, 24/6/1999 11.00 a.m. 19 Marine Lines, Mumbai 400020 1999-00 2000-01 AGM AGM Same as above Same as above 13/6/2000 11.00 a.m. 15/6/2001 11.00 a.m. For the year ended 31st March, 2002, there have been no resolutions passed by the Company's shareholders through postal ballot. At the ensuing Annual General Meeting, there is no resolution proposed to be passed through postal ballot. 7. a. Disclosures on materially significant related party transactions i.e. transactions of the Company of material nature, with its promoters, the directors or the management, their subsidiaries or relatives, etc. that may have potential conflict with the interests of the company at large. None of the transactions with any of the related parties were in conflict with the interest of the Company. b. 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. SEBI has imposed a monetary penalty of Rs. 4.75 lacs in the matter of acquisition of shares of Larsen & Toubro Limited. The Company has gone in appeal against the said order of SEBI. 8. Means of communication report sent to each household of Half-yearly shareholders Half yearly report for the half year ending 30th September, 2001 was duly sent to shareholders. Quarterly results The quarterly results are published in 'Financial Express' and 'Tarun Bharat', alongwith the official news release, and the detailed presentations made the media, analysts, institutional investors, etc. are displayed on the corporate website, www.ril.com The Management Discussion and Analysis (MD&A) is a part of the annual report, and each quarterly official media release. to 52 Reliance Industries Limited Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 9. General Shareholder Information 9.1. Annual General Meeting - Date and Time - Venue 9.2. Financial Calendar (tentative) 9.3. Book closure date 9.4. Dividend payment date : : : : 31st October, 2002 at 11.00 a.m. Birla Matushri Sabhagar, 19, Marine Lines, Mumbai 400 020 Annual General Meeting Results for quarter ending September 30, 2002 Results for quarter ending December 31, 2002 Results for year ending March 31, 2003 31st October, 2002 31st October, 2002 Last week of January, 2003 Last week of April, 2003 Saturday, the 26th October, 2002 to Thursday, the 31st October, 2002, for payment of dividend 1st November, 2002. 9.5. (a) Listing of Equity Shares on Stock Exchanges at : Mumbai • Ahmedabad • Bangalore • Calcutta • Chennai • Cochin • Kanpur • New Delhi • Pune and the National Stock Exchange (NSE). (b) Listing of Non-Convertible : Debentures (Series PPD-VIII) Bombay Stock Exchange and National Stock Exchange on Wholesale Debt Market Segment. (c) Listing of Global Depository : Receipts (GDRs) at Luxembourg Stock Exchange and traded on PORTAL System (NASDAQ, USA) and SEAQ System (London Stock Exchange). (Note: Annual listing fees for the year 2002-03 have been duly paid to all the above Stock Exchanges) 9.6. (a) Stock Code : 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’ (b) Demat ISIN Numbers in NSDL : & CDSL for Equity Shares ISIN No. : INE002A01018 9.7. Stock Market Data Bombay Stock Exchange (BSE) (In Rs.) National Stock Exchange (NSE) (In Rs.) April 2001 May 2001 June 2001 July 2001 August 2001 September 2001 October 2001 November 2001 December 2001 January 2002 February 2002 March 2002 Month’s High Price 395.00 406.50 394.65 388.90 344.90 316.50 286.90 311.90 323.80 344.00 330.45 339.00 Month’s Low Price 291.10 336.60 336.00 299.95 309.10 204.10 242.00 252.10 285.95 295.05 290.00 291.25 Month’s High Price 395.00 406.95 394.25 395.00 341.45 318.00 286.70 311.00 324.50 344.00 330.25 340.00 Month’s Low Price 290.00 336.20 335.00 300.00 309.55 203.60 240.50 251.85 286.00 295.25 290.35 291.50 9.8. Share price performance in comparison to broad based indices – BSE Sensex and NSE Nifty RIL share price performance relative to BSE Sensex based on share price on 31st March, 2002 Period % Change in Financial Year 2001-2002 2 years 3 years 5 years RIL share price -23% -4% 131% 130% Sensex -4% -31% -7% 3% RIL share price performance relative to Nifty based on share price on 31st March, 2002 Period % Change in Financial Year 2001-2002 2 years 3 years 5 years 9.9. Registrar and Transfer Agents: (Share transfer and communication regarding share certificates, dividends and change of address) Nifty -2% -26% 5% 17% RIL share price -23% -5% 130% 129% Karvy Consultants Ltd. 46, Avenue 4, Street No.1 Banjara Hills Hyderabad 500 034 E-Mail: rilinvestor@karvy.com RIL relative to Sensex -19% 27% 138% 127% RIL relative to Nifty -21% 21% 125% 112% Reliance Industries Limited 53 Reliance Industries Directors Report.p65 # 9.10. Share Transfer System (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) : Presently, the share transfers which are received in physical form are processed and the share certificates returned within a period of 10 to 15 days from the date of receipt, subject to the documents being valid and complete in all respects. The Company has, as per SEBI guidelines with effect from 24th March, 2000, offered the facility of transfer cum demat. Under the said system, after the share transfer is effected, an option letter is sent to the transferee indicating the details of the transferred shares and requesting him in case he wishes to demat the shares, to approach a Depository Participant (DP) with the option letter. The DP, based on the option letter, generates a demat request and sends the same to the company along with the option letter issued by the Company. On receipt of the same, the Company dematerialise the shares. In case the transferee does not wish to dematerialise the shares, he need not exercise the option and the Company will despatch the share certificates after 30 days from the date of such option letter. 9.11. Distribution of Shareholding as on 31st March, 2002: Others 17.23% International Investors (GDR / FIIs / NRIs) 25.34% Bodies Corporate 44.20% Indian Financial Institutions / Banks / Mutual Funds 13.23% 9.12. Dematerialisation of Shares : Over 87% of the outstanding shares have been dematerialised up to 31st March, 2002. Post merger upto the date of this report 88% of shares are in demat form. 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 BSE and NSE stock exchanges. Relevant data for the average daily turnover for the financial year 2001-2002 is given below: In no. of shares (in lakhs) In value terms (Rs. Crores) ($ million) Bombay Stock Exchange (BSE) 19.67 60.88 12.48 National Stock Exchange (NSE) 30.66 94.90 19.45 BSE + NSE 50.33 155.78 31.92 9.13. Outstanding GDR/Warrants and Convertible Bonds, Conversion : Outstanding GDRs as on 31st March, 2002 represent 5,62,88,877 shares 5.34%). There are no further outstanding instruments, which are convertible into equity shares of the Company. 9.14. 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 - 382 320 Gujarat State, India. • Jamnagar Complex Village Motikhavdi P.O. Digvijay Gram, Dist. Jamnagar Gujarat - 361 140, India. For Shares held in Demat form To the Depository Participant 9.15. (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. For Shares held in Physical form Karvy Consultants Ltd. 46, Avenue 4, Street No. 1 Banjara Hills Hyderabad - 500 034 E-Mail: rilinvestor@karvy.com (ii) Any query on Annual Report : Secretarial Department Old ICI Godown, Fosbery Road Off. Reay Road Station (East) Mumbai - 400 033 54 Reliance Industries Limited Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) List of Investor Service Centres of Karvy Consultants Ltd. CITY / CENTRE AGRA AHMEDABAD ANKLESWAR ALLAHABAD AMRISTAR ASANSOL AURANGABAD BANGALORE - BASAVANAGUDI BAREILY BELLARY BHARUCH BHAVNAGAR BHIMAVARAM BHOPAL BHUBANESWAR CHENNAI - T NAGAR COIMBATORE DEHRADUN DHANBAD ELURU ERODE GHAZIABAD GOA GOBICHETTIPALAYAM GORAKHPUR GULBARGA GUNTUR GUWAHATI GWALIOR HUBLI HYDERABAD - BANJARA HILLS (H.O) INDORE JABALPUR JAGADISHPUR JAIPUR JAMMU JAMNAGAR JAMSHEDPUR JODHPUR JUNAGADH KAKINADA STD PHONE - 0FF 0562 079 02646 0532 0183 0341 0240 080 0581 08392 02646 0278 8816 0755 0674 044 0422 0135 0326 08812 0424 0120 0832 0425 0551 08472 0863 0361 0751 0836 040 0731 0761 05361 0141 0191 0288 0657 0291 0285 0884 526660 / 61 6420422 / 6400527 43291 / 92 561073 / 74 547279 / 545071 204968 / 200169 363517 / 23 6621184 / 6621192 574731 254531 / 32 42082 / 42394 525005 / 06 31766 / 67 559337 / 574731 539287 / 539387 8153445 / 8151034 237501-502 713351 303156 / 304068 27851 / 52 225601 / 03 4796496 / 4792961 226150 / 228470 26275 / 26276 346519 27635 / 41193 326684 / 326686 516264 / 601327 321524 353961 / 62 3312454 / 3320251 269891 / 92 312009 / 504165 70049 363321 / 375039 547246 557862 / 63 432064 627918 / 641533 624154 / 624140 387382 / 387383 FAX — 6565551 — 561073 — — — 6621169 — — — — — — — 8173181 237507 — 301045 — — 4792961 223742 — — 26794 326687 601327 328007 — 3312946 269894 312009/390173 — 364660 — — 423061 641533 — 387381 CITY / CENTRE STD PHONE - 0FF FAX KANPUR KARAIKUDI KARUR KHARAGPUR KOCHI KOLKATA - JATIN DAS ROAD LUCKNOW KANPUR – UPSE LUDHIANA MADURAI MANGALORE MUMBAI – ANDHERI MUMBAI – FORT (M G ROAD) MUMBAI - NARIMAN POINT MYSORE NADIAD NAGPUR NASHIK NEW DELHI ONGOLE PATNA PONDICHERRY PUNE RAJAHMUNDRY RAJKOT ROURKELA SALEM SHIMOGA SIRSI SOLAPUR SURAT THANJAVUR THIRUVALLA TIRUPATI TRICHUR TRICHY UDUPI VADODARA VARANASI VALLABH-VIDHYANAGAR VIJAYAWADA VISHAKAPATNAM 0512 04565 04324 03222 0484 033 0522 0512 0161 0452 0824 022 022 022 0821 0268 0712 0253 011 08592 0612 0413 020 0883 0281 0661 0427 08182 08384 0217 0261 04362 0473 08574 0487 0431 08252 0265 0542 02692 0866 0891 330016 / 330155 437192 / 93 241892 / 241893 55092 / 55582 310884 / 322152 4644891 / 7231 236820 / 21 558317 424862 / 426112 350852 - 854 (Board) 492302 / 496332 6730153 / 292 2677307 / 2675829 2833333 / 2847600 318850 — 241891 55582 323104 4644866 / 4634787 236828 — 407749 350856 — 6730152 2671237 2847603 524292 / 524293 63210 / 63245 537531 / 538131 / 533428 802542 / 43 3324401 (5 LINES) 26091 / 26092 263604 / 268292 220640 (Front Office) 5530204 / 5530205 434468 / 434469 239337 / 38 4510771 / 4510772 335701 28795 / 96 27919 / 27929 311027 8357356 / 8351976 379407 / 379408 604475 55668 / 58004 322483 / 322484 792800 / 793799 530962 / 63 361514 / 364168 225365 / 223814 39407 / 39420 436965 / 437250 752915 to 18 524294 — 538133 — 3324621 — — 220659 5533292 434471 — — 335705 — 25319 312219 8368693 — — — — 794132 — 363207 — — 436241 752915 Reliance Industries Limited 55 Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Directors’ Report Your Directors are pleased to present the 28th Annual Report and the audited accounts for the year ended 31st March, 2002. Amalgamation of Reliance Petroleum Limited (RPL) with Reliance Industries Limited (RIL) In March, 2002, your Directors, subject to securing necessary approvals, decided to amalgamate Reliance Petroleum Limited (RPL) with the Company. The Scheme of Amalgamation was approved by the Shareholders of the Company and RPL at the Court Convened Meetings in the month of April, 2002. The Hon'ble High Court of Judicature at Mumbai sanctioned the amalgamation in June 2002 and the Hon'ble High Court of Gujarat, Ahmedabad sanctioned the amalgamation in September 2002. The amalgamation of RPL with the Company became effective from the 19th September, 2002 and the Appointed Date was 1st April, 2001. The amalgamation gave the Company a unique distinction of becoming India's first private sector company to feature in the internationally tracked Fortune Global 500 list of World's largest corporations. Further, the amalgamation will rank the Company amongst the top energy and petrochemical companies globally. Consequent to this amalgamation, your Company has become India's largest private sector company, in terms of assets, net worth, sales and profits and one of the world's largest and most integrated energy and petrochemicals companies. The amalgamation has enhanced the ability of your Company to undertake large projects thereby contributing to enhancement of future business potential of the Company. The amalgamation has created a unique level of integration for the Company, spanning the entire value chain in the energy business. Your Company will have the ability to leverage on its large asset base, diverse range of products and services and vast pool of intellectual capital, to enhance the shareholder value. Financial Results As the 'appointed date' of the amalgamation was 1st April, 2001, the assets and liabilities of RPL were incorporated in the Company's books as on that date and are reflected in the Balance Sheet as at 31st March, 2002. The financial performance of the Company includes the result of the operations of RPL for the year ended 31st March, 2002 and is summarised below : Gross profit before interest, depreciation and extraordinary income Less :Interest 2001-2002 Rs. Crs. US$ Mn* 2000-2001 Rs. Crs. US$ Mn 8,658.24 1,825.10 1,774 374 5,561.72 1,215.99 1,193 261 Depreciation 3,435.82 2,636.73 Less : Transfer from General Reserve 619.68 2,816.14 577 1,071.62 1,565.11 Profit before Tax and extraordinary income Add : Extraordinary Income Profit before Tax Less :Provision for Current Taxation Provision for Deferred Tax Profit after Tax Add :Balance in Profit and Loss Account On Amalagamation Deferred Tax Liability for earlier years Investment Allowance (Utilised) Reserve Written Back Amount Available for Appropriation Appropriations : Capital Redemption Reserve Debenture Redemption Reserve Capital Reserve General Reserve Interim dividend on Preference Shares Proposed dividend on Equity Shares (Subject to Deduction of Tax at Source) Tax on dividend Balance carried to Balance Sheet 4,017.00 411.70 4,428.70 190.00 996.00 3,242.70 2,160.65 1,071.50 (1,064.82) 122.07 5,532.10 — 137.64 4.95 2,000.00 — 663.28 — 2,726.23 823 84 907 39 204 664 443 220 (218) 25 1,134 — 28 1 410 — 136 — 559 5,532.10 1,134 2,780.62 — 2,780.62 135.00 — 2,645.62 1,739.48 — — 10.00 4,395.10 292.95 344.57 98.11 1,000.00 4.77 447.85 46.20 2,160.65 4,395.10 336 596 — 596 29 — 567 373 — — 2 942 63 74 21 214 1 96 10 463 942 * 1 US $ = Rs. 48.80 Exchange rate as on 31-3-2002 (Previous year as on 31-3-2001 1 US $ = Rs. 46.62) (Financial results for the year 2001-02 are not comparable with 2000-01 as they include the operations of RPL) Dividend The Directors have recommended a dividend of Rs. 4.75 per Equity Share on 139,63,77,536 Equity Shares of Rs. 10 each (which includes 34,26,20,509 Equity Shares to be issued to the Shareholders of RPL on amalgamation) for the financial year ended 31st March, 2002, which if approved at the forthcoming Annual General Meeting will be paid to all those Equity Shareholders whose names appear in the Register of Members as on 26th October, 2002. 56 Reliance Industries Limited Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Subsidiary Companies During the year, Reliance Life Insurance Company Limited and Reliance General Insurance Company Limited have ceased to be subsidiaries of the Company and Reliance Petroinvestments Limited became a subsidiary of the Company. Consequent to merger of RPL with the Company, RPL’s subsidiary company, namely Reliance Strategic Investments Limited has become a subsidiary of the Company. Reliance LNG Private Limited, in which the Company and RPL were holding equity shares, has also become a subsidiary of the Company. Your Directors wish to repor t that Reliance Petroinvestments Limited ceased to be a subsidiary of the Company after the closure of the year. The audited statements of accounts of all the Company’s subsidiaries, together with reports of their Directors and Auditors for the year ended 31st March, 2002 are attached as required under Section 212 of the Companies Act, 1956. Fixed Deposits The Company has not accepted any fixed deposits during the year. Deposits aggregating Rs.0.30 Crores have not been claimed by the fixed deposit holders as on the date of this report. Directors Your Directors express their profound grief on the sad demise of Shri Dhirubhai H. Ambani, the beloved founder and Chairman of the Company, on the 6th July, 2002 and pay glowing tributes to his vision and entrepreneurial spirit and for the immense contribution made by him for the establishment and growth of the Company from a small outfit into India's first private sector Fortune Global 500 Company within a short span of 25 years. The Rs.65,000 crore Reliance Group is a living testimony to his indomitable will, single-minded dedication and an unrelenting commitment to his goals. Under Shri Dhirubhai's visionary leadership, the Reliance Group emerged as the largest business conglomerate in India, and carved out a distinct place for itself in the global pantheon of corporate giants. Shri Dhirubhai Ambani, a man far ahead of his times, epitomised the dauntless entrepreneurial spirit. Acclaimed as the top businessman of the twentieth century and lauded for his dynamic, pioneering and innovative genius, his success story fired the imagination of the younger generation of Indian entrepreneurs, business leaders and progressive companies. He was an icon for them, a role model to be emulated. Shri Dhirubhai Ambani pioneered the equity cult in India, ushering in a new era of economic growth by mobilising the virtually untapped capital market of the small investor in India, and enabled millions of Indian citizens to take part in his growing companies - and their growing nation. Shri Mukesh D. Ambani was elected as Chairman and Managing Director and Shri Anil D. Ambani was elected as Vice Chairman and Managing Director by the Board of Directors of the Company on 31st July, 2002. ICICI Bank Limited (formerly known as ICICI Limited) has withdrawn the candidature of Shri S. Venkitaramanan as its nominee and consequently he has ceased to be ICICI Bank Limited's nominee with effect from 2nd August, 2002. Your Directors appointed Shri S. Venkitaramanan as an additional Director with effect from 14th August, 2002. He holds office upto the date of ensuing Annual General Meeting and is eligible for reappointment. The Company has received notice under Section 257 of the Companies Act, 1956, proposing his appointment as Director, subject to retirement by rotation. Shri Hital R Meswani, Shri Ramniklal H. Ambani and Shri T. Ramesh U. Pai, retire by rotation and being eligible, offer themselves for reappointment at the ensuing Annual General Meeting. Directors' Responsibility Statement Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, with respect to Directors' Responsibility Statement, it is hereby confirmed that: (i) (ii) in the preparation of the annual accounts the applicable accounting standards have been followed along with proper explanations relating to material departures; the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2002 and of the profit of the Company for the year ended on that date; they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and they have prepared the annual accounts of the Company on a 'going concern' basis. (iii) (iv) Consolidated Financial Statements In accordance with Accounting Standard 21 relating to Consolidated Financial Statements, your Directors have pleasure in attaching the said Consolidated Financial Statements which form part of this Report and Accounts. These statements have been prepared on the basis of audited financial statements received from subsidiary companies, as approved by their respective Boards. Acquisition of Control in IPCL After the close of the financial year Reliance Petroinvestments Limited (RPiL) acquired 6,45,38,662 fully paid Equity Shares of Rs.10 each representing 26% of the total equity share capital of Indian Petrochemicals Corporation Limited (IPCL) from Central Government. In compliance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, RPiL made a public offer for purchasing additional 20% of the Equity share capital in IPCL from its shareholders. The offer made by RPiL was a resounding success and RPiL holds approximately 46% of the Equity Share Capital in IPCL. Your company acted as person in concert in acquiring the Equity Shares of IPCL. Auditors Messrs. Chaturvedi & Shah and Messrs. Rajendra & Co., Chartered Accountants, Joint Statutory Auditors of the Company, retire at the forthcoming Annual General Meeting and are eligible for re- appointment. 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. 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. Personnel In accordance with the provisions of Section 217 (2A) of the Companies Act, 1956 and the rules framed thereunder, the names and other particulars of employees are set out in the Annexure to the Directors' Report. Energy, Technology Absorption and Foreign Exchange earnings and outgo The information relating to energy, technology absorption, foreign exchange earnings and outgo required to be disclosed under The Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is given in the Annexure forming part of this report. Compliance Certificate A certificate from the Auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under Clause 49 of the Listing Agreement is attached to this report. Acknowledgement Your Directors would like to express their grateful appreciation for the assistance and co-operation received from the Financial Institutions, Banks, Government Authorities, Customers, Vendors and Shareholders 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 Mukesh D. Ambani Chairman & Managing Director Mumbai Dated: 30th September, 2002. Reliance Industries Limited 57 Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Annexure to Directors' Report PARTICULARS REQUIRED UNDER THE COMPANIES (DISCLOSURES OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES 1988. A. a) CONSERVATION OF ENERGY Energy conservation measures taken:- 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. Use of process vent gas for heat transfer in POY Dow vaporiser. Use of condensate for BFW pre-heating in MEG plant. Use of low level heat source for process heating in place of high level heat source. Reduction in power consumption by trimming the impeller of pumps Stoppage of operating pumps by proper rerouting and optimization of the process system. Improvement in configuration of PAC discharge line in PTA plants. Reduction in suction temperature of compressor in PTA plant. Use of cell type air washer in place of spray type air washer in both LAG AHU and Spinning AHU in POY plant. Re-routing of DOW HP condensate to HP condensate instead of LP DTA Tank in PE plant. Provision of parallel traps in the condensate line at RFH outlet of PE plants. Advanced Process Control implementation in Aromatics plant. Replacement of cooling water with makeup DM water in Raw condensate trim cooler for heat recovery. Improvement in sealing of GT bypass stack damper in CPP. Modification of prefilters and moisture separators in Instrument air dryers to reduce DP in CPP plant. Change in MOC of fans of Cooling Towers to lighter material. Improvement in third stage efficiency of compressor in Cracker plant. Installation of extraction turbine in place of totally condensing steam turbine in PG complex. Increase in process flash steam pressure to save fresh steam in PTA plant. Recovery of boiler house cooling water. Reduction in fast rinse time and improvement in OBR of DM Plants. Stoppage of organic stripper in CP-5 by routing CP-5 column overhead to CP-4 separation column. Partial EG recycle in CP-6. Use of effluent from DH column into process. Use of jet CT blow down for VCT jets at CP-4 VCT. Commissioning of secondary flash tank for steam condensate at PSF D/L. Filtrate from F-538 recycled back to quench pot saving cooling water in PTA. Optimization of boiler feed water system. Reduction in air compressors running hours after optimization in instrument air system. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. PTA Reactor air control valves replaced with spare low pressure drop valves thus saving power to compressors. Use of daylight in the PTA warehouse saving lighting power during daytime. Direct melt spinning on SM#5,6. Water jet Cooling Tower at CP-6. Change of spinning metering pump from Sandwich to Planetory on 9 Machines. Replacement of eddy current drive & motor with inverter drive & motor for one Lummus cutter. Making POY extruder system redundant by giving polymer to SM#14 directly from CP-V. Stoppage of atomizer steam to all gas fired burners and regular soot blowing in all oil fired furnaces to improve Furnace efficiency. Reduction in excess air for Aromatic Coker, Crude and HDT Furnaces. Stoppage of third compressor in Platformer of Aromatics plant. Debottlenecking of heat exchangers in Coker complex to increase MP steam generation. Reduction in MP steam in Light Coker Gas Oil & Heavy Coker Gas Oil stripper in Coker. Antifoulant injection in VR exchangers in CDUs of Crude improved fouling factor. PRT and R7R pressure optimization in FCC complex. Reduction of Amine regenerator acid gas PRC set pressure has resulted in energy savings. Reducing operating pressure in Clause Air Blower has resulted in savings in power consumption. Conversion from glands to Mechanical seals has lead to improvement in power consumption in Utility pumps. Offline & Online water washing of Gas Turbine compressor blades has improved compressor efficiency leading to lower fuel consumption in Gas Turbine. (b) Additional Investment/proposals being implemented for reduction of consumption of Energy 1. 2. 3. 4. 5. 6. 7. 8. 9. Use of pump in VCM column bottom in VCM plant. Use of MP steam in place of HP steam for reactor feed heater, HP tracers and export of MP steam in Octane run in PE plant. Use of hot cyclohaxene as hot flush in PE plant. Providing intermediate flash vessel for E2-1211 condensate for PTA-1 &2. PSF Drawline condensate recovery system by taking the original flash tank in line in PSF plant. FF CP-8 polymerization spare jet steam stoppage. CT pump internal coating to improve pump efficiency in CPP. To reduce radiation heat loss from all the HRSG’s of CPP. Insulation of phase-1 return condensate header in CPP. 10. Installation of booster pump at Ethylene terminal using propylene terminal return water, thereby stopping CPP CT booster pump. 58 Reliance Industries Limited Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 42. 43. 44. 45. 46. 47. Lighting load reduction by providing improved lighting arrangement for SM#5,6 and 7. Alternative for UPS # 4. Heat integration by Pinch Technology in PTA plant and P-X plant. GT inlet air cooling for better heat rates. Installation of Define unit at LAB will help enhanced production. Use of light ends in Lab FE as GT fuel will increase fuel flexibility. (c) Impact of measures at (a) & (b) above for reduction in consumption of energy and on the cost of production of goods. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Use of process vent gas in POY Dow vaporiser has resulted in saving of Rs 1.36 Crores / annum in POY plant. BFW pre-heating using condensate has resulted in saving of Rs 3.16 Crores / annum in MEG plant. Use of LP steam in heads column 1 & 2 in place of IP steam in VCM plant has resulted in saving of Rs 1.25 Crores / annum. Trimming of Impeller of G 207 pumps in PTA-1 &2 has resulted in saving of Rs 35.8 Lakhs / annum. Increasing diameter of PAC discharge line in PTA#1 and PTA#2 has resulted in saving of Rs 84 Lakhs / annum. Suction chilling of PAC in PTA-2 plant has resulted in saving of Rs 4.2 Crores / annum. Cell type air washer in place of spray type air washer in both LAG AHU and Spinning AHU in POY plant has resulted in saving of Rs 44.8 Lakhs / annum. Replacement of annealer HP steam by MP steam in Draw Machines in PSF plant has resulted in saving of Rs 1.6 Crores / annum. Re-routing of DOW HP condensate of Area 200 to HP condensate instead of LP DTA Tank in PE plant has resulted in saving of Rs 37 Lakhs / annum. Use of MP steam in place of HP steam for tracers in PE-II has resulted in saving of Rs 92 Lakhs /annum. Provision of parallel traps in the condensate line at RFH outlet of PE-1/2 has resulted in saving of Rs 78 Lakhs / annum. Use of MP steam in place of HP steam for tracers in PE-I has resulted in saving of Rs 78 Lakhs / annum. APC implementation in Aromatics plant has resulted in saving of Rs 269 Lakhs / annum. Replacing cooling water with makeup DM water in Raw condensate trim cooler to recover the heat has resulted in saving of Rs 2 Crores / annum. Proper sealing of GT bypass stack damper in CPP has resulted in saving of Rs 9.75 Crores / annum. Modification of pre-filters and moisture separators in Instrument air dryers to reduce DP in CPP plant has resulted in saving of Rs.47 Lakhs / annum. Change in MOC of 42 Fans of Site Cooling Towers from GRP to hollow FRP has resulted in saving of Rs 3.35 Crores / annum. Replacing flare MP steam by LP steam in PP plant has resulted in saving of Rs 59 Lakhs / annum. Improvement in third stage efficiency of CGC comp in Cracker plant has resulted in saving of Rs 3 Crores 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. Installation of auto transformer for electrical energy conservation in the complex. Process fans replacement from solid metallic/GRP to hollow FRP in the complex. Use of LP Steam instead of MP steam in Glycol bleed flasher-II Reboiler in MEG. Optimization of feed tray location in Hiboil column in VCM plant. Use of IP Steam in Oxy reactor preheaters in VCM plant. To increase IP steam header pressure to 10 kg/cm2g from 7.5 kg/cm^2g in VCM plant. Use of IP Steam in WWS ejector in VCM. Reducing the pressure drop in the discharge side of reactor feed pump in PE plant. Generation of MP & LP steam from HP Condensate in PP plant. Generation of LLP steam from total condensate of plant and to be used in Degassing column Reboiler after boosting the pressure in PP plant. Fractionating Benzene prior to Xylene and swapping MSTDP Detol tower with Extract Detol tower in Aromatics plant. Side Reboiler to Stripper column to substitute 10 TPH LP steam for MP Steam in Aromatics plant. Replacing 40k steam with 17k steam for extract detol column reboiler in Aromatics plant. 22 KSCg steam for atomising and continuous purge in BHEL Boilers to be tapped from alternative source instead of let down from SHP and HP in CPP. Increasing supplementary firing efficiency by HRSG modification in CPP. Raise E438 Area for heating DM bottoms by cracked gas in Cracker plant. LP C2 vapor export to VCM/EDC from ethylene tower in Cracker plant. New control system for two process air compressors at PTA. On line water wash of GTs. To provide Inverter in one of the cooling tower fan to optimize its use and fine control on supply temperature. Recovery of water from DM Plant effluent. Burning of Biogas in PX Heaters. Recovery of heat from HRSGs exit flue gas. DM Plants degasser outlet to be made common at RPU. Replacement of Electrical heaters with waste steam heaters for instrument air dryers. Heat recovery (Tatoray) project based on Pinch technology. Using Jet CT blow down for VCT jets at MPP I, II and CP-5 VCT. Scheme to reduce EG recovery load by avoiding processing of EG samples. Reduction in impeller size for MPP I jet CW pump. Old chilled water system to be converted into closed circuit system at RPU. 41. Installation of hollow blade fan in new CT. Reliance Industries Directors Report.p65 # Reliance Industries Limited 59 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. / annum. Use of pump in VCM column bottom has a saving potential of Rs.1.27 Crores / annum. Use of MP steam in place of HP steam for reactor feed heater, HP tracers & export of MP steam in Octane run in PE plant has a saving potential of Rs.1.8 Crores/annum. Use of hot cyclohexane as hot flush in PE plant has a saving potential of Rs.72 Lakhs / annum. Providing intermediate flash vessel for E2-1211 condensate in PTA-1 &2 has a saving potential of Rs.3.8 Crores / annum. PSF Drawline condensate recovery system by taking the original flash tank in line has a saving potential of Rs.41 Lakhs / annum in PSF plant. FF CP-8 polymerisation spare jet steam stoppage has a saving potential of Rs.44 Lakhs / annum. CT pump internal coating to improve pump efficiency has a saving potential of Rs.77 Lakhs / annum. Radiation heat loss from all the HRSGs has a saving potential of Rs.3 Crores / annum. Insulation of phase-1 return condensate header has a saving potential of Rs.39 Lakhs / annum. Installation of booster pump at ethylene terminal using propylene terminal return water, thereby stopping CPP CT booster pump has a saving potential of Rs.27.6 Lakhs in Tank Farm. Installation of auto transformer for electrical energy conservation has a saving potential of Rs.3.6 Crores / annum. Process Fans replacement from solid metallic/GRP to hollow FRP has a saving potential of Rs.93 Lakhs / annum. Use of LP Steam instead of MP steam in Glycol bleed flasher-II Reboiler has a saving potential of Rs.59 Lakhs / annum in MEG plant. Optimization of feed tray location in Hiboil column has a saving potential of Rs.2.5 Crores / annum in VCM plant. Use of IP Steam in Oxy reactor pre-heaters has a saving potential of Rs.26 Lakhs / annum in VCM plant. Increase in IP steam header pressure to 10 kg/cm2g from 7.5 kg/cm^2g has a saving potential of Rs.35 Lakhs / annum in VCM plant. Use of IP Steam in WWS ejector has a saving potential of Rs.35 Lakhs / annum in VCM plant. Reducing the pressure drop in the discharge side of reactor feed pump has a saving potential of Rs.62 Lakhs / annum in PE plant. Generation of MP & LP steam from HP Condensate has a saving potential of Rs.41 Lakhs / annum in PP plant. Generation of LLP steam from total condensate of plant and to be used in Degassing column Reboiler after boosting the pressure, if required has a saving potential of Rs.40 Lakhs / annum in PP plant. Fractionating Benzene prior to Xylene and swapping MSTDP Detol tower with Extract Detol tower has a saving potential of Rs.3 Crores / annum in Aromatics plant. 41. Side Reboiler to Stripper column to substitute 10 TPH LP steam for MP Steam has a saving potential of Rs.1.5 Crores / annum in Aromatics plant. Replacing 40k steam with 17k steam for extract detol column reboiler has a saving potential of Rs.2.8 Crores / annum in Aromatics plant. 22 KSCg steam for atomising and continuous purge in BHEL Boilers to be tapped from alternative source instead of let down from SHP and HP has a saving potential of Rs.63.8 Lakhs / annum in CPP. Increasing supplementary firing efficiency by HRSG modification has a saving potential of Rs.20.15 Crores / annum. Raise E438 Area for heating DM bottoms by cracked gas has a saving potential of Rs.3 Crores / annum in Cracker plant. LP C2 vapor export to VCM/EDC from ethylene tower has a saving potential of Rs.72 Lakhs / annum in Cracker plant. Installation of extraction turbine in place of totally condensing steam turbine has a saving potential of Rs 11.5 Crores / annum. LAB Back end heater modifications resulted in saving Rs 250 Lakhs / annum. Process Flash steam pressure increased to save on fresh steam in PTA resulted in saving of Rs 116 Lakhs / annum. Reduction in fast rinse time and improvement in OBR of DM Plants resulted in saving of Rs 50 Lakh /annum. Commissioning of secondary flash tank for steam condensate at PSF D/L resulted in saving of Rs 29 Lakh / annum. Reduction in air compressors running hours after optimization in instrument air system resulted in saving power by 800 MWh / annum. Conversion of old CHW system into closed loop system and stopping of both running CHW circulation pumps resulted in saving power by Rs 63 Lakh / annum. New control system for two process air compressors at PTA would save Rs 110 Lakh / annum. On line water wash of GTs would reduce power cost by Rs 54 Lakh / annum. Burning of biogas in PX Heaters would save fuel by Rs 80 Lakh / annum. Recovery of heat from HRSGs exit flue gas would result into saving of Rs. 400 Lakh / annum. Heat recovery project based on Pinch technology would save fuel by Rs 43 Lakh / annum. Heat integration by Pinch Technology in PX plant would save Rs 221 Lakh /annum. Heat integration by Pinch Technology in PTA plant has a potential to save Rs 715 Lakh / annum. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. FORM - 'B' Form for Disclosure of particulars with respect to: B. RESEARCH AND DEVELOPMENT (R & D) 1. Specific Areas in which Research and Development (R & D) is being carried out by the Company: (i) (ii) Heterogeneous Catalyst Development program for polyolefins Solvent Recovery Process development 60 Reliance Industries Limited Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) (xiv) (xv) (xvi) Hazardous residue treatment development Metallocene / non metallocene catalyst development for Olifin polymerization Analytical method developments for catalyst process Catalyst design simulation studies Catalyst development & polyolefin polymerization studies at Pilot Plant scale Development of Computational Flow Modeling (CFD) completed for oxy reactor in VCM Online prediction of the polymer property data based on Artificial neural network /Soft sensor model Trial being carried out in PFF CP EG recovery section to process MEG Plant residue EGR1 for recovery of MEG Collaborative efforts for catalyst development for manufacturing of Para Diethyl Benzene from mixed xylenes Computational Fluid Dynamics (CFD) Model for Oxidation Reactor Catalyst & Water Recovery from Purification Mother Liquor Catalyst Recovery from Oxidation Section Azeotropic distillation for acetic acid dehydration CTA Hydrogenation Catalyst Improvement (xvii) Development of kinetic reaction model for Pacol reactor in LAB plant (xviii) Trial with Kronos 1075, a coated TiO2 in CP-IV (xix) (xx) (xxi) Denier circular tow (New Prod. Development) Re-rubberized pinch roll of DuPont draw machines To assess online performance of new developed Finger Guide Assembly with circlip arrangement for DuPont DM crimper (xxii) Production of 2.0 Bright fiber using 4.25" crimper on DM#2 (xxiii) Switch over from UFPP to finisher hotwell EG as stability EG (xxiv) Use of new improved silicon rubber gaskets in Spg. ( Vaco Seals), Alternate Vendor development (xxv) To produce 3.0 denier circular bright fiber (New product development) (xxvi) To produce 3.0 denier circular tow (New product development) (xxvii) To produce 3.0 denier uncrimped tow for flocking application (xxviii) To substitute PF30 finish with RE24 for TBL product (xxix) DryFiem finish in PFY (xxx) Use of Recovered SS powder in PFY (xxxi) Development of indigenous POY finish (xxxii) Development of Teran for SDY and FDY (xxxiii) Non-CFC silicon spray for PFY (xxxiv) Development of new product for ECBT machine (xxxv) Krones TiO2 in PFY 2. Benefits derived as a result of above R & D: (i) (ii) Catalyst Process developed for polyolefins & scaled up. Hazardous Residue treatment process developed scaled up and implemented at plant scale. (iii) Better understanding of the effects of changes in the (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) reactor geometry on the velocity fields inside the reactor and on the operational reliability of oxy reactor of VCM plant. Reduction in the offspec product downgradation and consistent in quality in PE plant. The trials at PP Pilot plant will enable new grades to be tried at pilot plant before startup of a larger volume at plant level, reducing offspec generation. Processing of MEG residue results in value addition of EGR1. Catalyst development for manufacturing of Para Di- ethyl Benzene from mixed xylenes would enable us to recover PDEB. Detailed Computational Fluid Dynamics Model for Oxidation Reactor has been developed which enables better understanding of the process. Catalyst & Water Recovery from Purification Mother Liquor: This will reduce the effluent load and also reduce the demineralised water consumption. Catalyst Recovery from Oxidation Section: This newer method gives better catalyst recovery than from recovery from ash. The azeotrope boils at a lower temperature than the original components, thereby saving the energy. This system has a lower capital cost and also reduces the operating cost. The improvement of CTA hydrogenation catalyst will result in reduced offspec generation and Palladium loss. Development of kinetic reaction model for Pacol reactor in LAB plant would give better understanding of the process and have better control of quality of LAB. 3. Future Plan of Action (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) (xiv) New generation & higher generation catalyst development for polyolefins Improve solvent Recovery process for polyolefin catalysts Analytical method developments for heterogeneous catalyst. PP Product development New grade development and catalyst trials in the PP pilot plant help in reducing off-spec production Development of new PP grades with different technology catalyst APC implementation in Esterification section after installation of DEG/COOH analyzer Paraxylene oxidation trials on pilot plant to study reaction kinetics: The paraxylene oxidation experiments on Pilot Plant will help us to understand the reaction kinetics. These will be further used for reactor modeling & design for better performance of the plant. Azeotropic distillation for acetic acid dehydration is in progress Explore new Hydrogenation improved Catalyst for CTA Process heat integration using Pinch technology in LAB Methyl acetate recovery from off gases in PTA Reduction in unwinding defect by six sigma approach Trial of 530/38/POY with higher drawability Reliance Industries Limited 61 Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 4. Expenditure on R & D a) Capital b) Recurring Total c) Total R &D Expenditure as a Percentage of Total Turnover Rs. Crores 15.20 74.94 90.14 0.16% C. 1. T E C H N O L O G Y A B S O R P T I O N , A D O P T I O N A N D INNOVATION Efforts made towards technology absorption, adoption and innovation (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) (xiv) (xv) (xvi) (xvii) Improved Corrosion Inhibitor formulation for Dilution Steam generation system in consultation with vendor in Cracker plant. Plant Capacity increase by overhauling and improving the efficiency of 3rd stage of Cracked Gas Compressor in cracker plant. In house implementation of APC for Aromatics, VCM plant. Preparation of a Blend of Paraxylene & Mix Xylene, a blend products to cater Pour Point Dispersants . Optimization of Oxidation Reactor Conditions for minimizing catalyst and acetic acid in PTA plant. Installation of gas foil agitator in reactor and crystallizers for high productivity and improved quality of PTA Product. Development of new catalyst vendor for Purification Reactor of PTA plant. Installation and commissioning of process air compressor suction chilling for PTA plant. Modification of methyl acetate recovery system for minimizing VOC emissions in PTA plant. Usage of low pressure air using available equipment in first crystallizer as a secondary air in PTA plant. Use of Dry gas seal for recycle compressor for improved reliability in MEG plant. Development of alternative chemicals to improve product quality, and reduce operating cost in PVC, PE and PP plant. Successful trials completed with new antioxidants package to improve thermal stability of flexible PVC grades. Optimization of K-57 recipe of PVC plant to reduce operating cost and improve quality. Optimization of water to monomer ratio to improve productivity in K-67 pipe grade of PVC plant. Capacity enhancement by revamping of the polyethylene plant by 8 KTA. Benchmarking study by fingerprinting through strategic alliance with M/s NCL pune for grade improvements in wire and cable, blowmoulding and pipe grades. (xviii) In house development of the color measurement techniques (xix) Whiteness index of the polyethylene resin. (xx) New grade developed in PP plant for the application of pipe, fittings, sheets, washing machines tubes and compounding. 2. a. (xxi) (xxii) Trials taken with different additives, clarifying agents, and chemicals and also material from different source in PP plant. Increase in rate of production in PP plant by change in product receiver size and controlling catalyst particle size. (xxiii) Minimizing the variability in PSF b colour by optimizing Process conditions, Polymer Transfer Line heating improvements. Benefits derived as a result of the above efforts: (ii) (v) (iii) (vi) (iv) (vii) (viii) Product Development / Improvement and Cost Reduction Improved Corrosion Inhibitor formulation for Dilution (i) Steam generation system in cracker plant resulted in savings on Rs 80 Lakhs / annum. Improved efficiency of the cracker gas compressor resulted in 2% plant Capacity increase achieved on a sustained basis. Implementation of APC for Aromatics , VCM plant resulted in reduction of Steam consumption by 5TPH and better quality. New product developed to cater Pour Point Dispersants resulted in additional revenue of Rs.1 Crore/annum. Optimization of Oxidation Reactor Conditions for minimizing catalyst and acetic acid in PTA plant resulted in benefits of Rs 300 Lakhs / annum. Installation of gas foil agitator in reactor and crystallizers for high productivity and improved quality of PTA Product of Rs 30 Crores / annum. Commissioning of process air compressor suction chilling for PTA plant resulted in potential saving of Rs 4 Crores/annum. Usage of low pressure air first crystallizer as a secondary air resulted in increase in PTA production. Development of alternative cost effective chemicals in PVC plant resulted in Rs 50 Lakhs / annum. Optimization of K-57 recipe in PVC plant resulted in reduced operating cost of Rs 35 Lakhs / annum. Optimization of water to monomer ratio to improve productivity in K-67 pipe grade of PVC plant resulted in increase in yield and reduced operating cost of Rs 30 Lakhs / annum. Capacity enhancement of the polyethylene plant resulted in additional contribution of Rs 12 Crore / annum. Development of alternate source cost effective catalyst chemical and additives for polyethylene plant gave a benefit of Rs.1 Crore / annum. New grade developed in polyethylene plant to cater for high volume of lube oil containers and wire/cable application with improved mechanical properties. 3 New grade developed in PP plant helped in better market penetration. Trials taken with cost effective chemical and additives in PP plant resulted in savings on Rs 4 Crores/annum. (xvii) Change in product receiver size of PP plant resulted (xiv) (xvi) (xiii) (xv) (xii) (xi) (ix) (x) in rise in production to the tune of @ 15-25 TPD. b. Import Substitution Imported catalysts and chemicals substituted with indigenous catalysts in various processes. 62 Reliance Industries Limited Reliance Industries Directors Report.p65 # Information regarding Imported Technology Product Technology from (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Ethylene & Cracker Products Stone & Webster Engineering Corp.USA Purified Terepthalic Acid 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, (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 1994 1994 1995 1998 1999 1999 Status of implementation/ Absorption Full Full Full Full Full Full Full Full Full Full D. 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 opportunities based on economic considerations. During the year, the Company has exports (FOB Value) worth Rs.9,965.85 Crores (US$ 2042.18 million). a. Total Foreign exchange earned 9,965.85 b. Total savings in foreign exchange through products manufactured by the Company and deemed exports (US$ 6,943 million) Sub total (a + b) c. Total Foreign Exchange used 33,881.33 43.847.18 26,443.98 Annexure to Directors' Report Form ‘A’ Form for disclosure of particulars with respect to Conservation of Energy Part 'A' Power & Fuel Consumption April,01 to March,02 April,00 to March,01 1 Electricity a) Purchased Units ( Lacs ) Total Cost ( Rs. In Crores )# Rate/Unit (Rs.) b) Generation by/through third party captive power facilities through Steam Turbine/Generator Units ( Lacs ) KWH per unit of fuel Total Cost (Rs. in Crores) Cost/Unit (Rs.) c) Own Generation 1) Through Diesel Generator Units ( Lacs ) KWH per unit of fuel Fuel Cost/Unit (Rs.) 59.03 3.25 5.50 22,117.45 5.28 611.58 2.77 50.21 3.28 4.00 113.36 5.28 4.65 7,954.65 4.76 335.34 4.22 82.31 3.86 3.31 Reliance Industries Limited 63 Reliance Industries Directors Report.p65 # (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Annexure to Directors' Report 2) Through Steam Turbine/Generator Units ( Lacs ) KWH per unit of fuel Fuel Cost/Unit (Rs.) 2 Furnace Oil Quantity ( K.Ltrs ) Total Cost ( Rs. In Crores ) Average rate per Ltr.( Rs ) 3 Others/Internal Generation a) Gas Quantity ( 1000 M3 ) Total Cost ( Rs. In Crores ) Average rate per 1000M3 ( Rs ) b) Liquid Fuels Quantity ( K.Ltrs ) Total Cost ( Rs. In Crores ) Average rate per Ltr.( Rs ) # Excluding Demand Charges Part ‘B’ Consumption per Unit of Production 22,962.95 3.58 1.88 152,918.04 113.24 7.41 1,010,051.77 772.11 7,644.22 929,656.56 904.82 9.73 22,702.80 4.49 1.64 165,747.10 130.25 7.86 333,108.53 110.64 3,321.54 249,205.70 299.44 12.02 Fabrics Per 1000 Mtrs. Current Year PFY Per MT PSF Per MT PTA Per MT LAB Per MT MEG Per MT PVC Per MT HDPE Per MT PP Per MT FF Per MT CRACKER Per MT PET Per MT PX Per MT Previous Current Year Year Previous Current Previous Year Year Year Current Previous Current Previous Current Year Year Year Year Year Previous Year Current Previous Current Year Year Year Previous Current Year Year Previous Current Year Year Previous Current Year Year Previous Current Previous Current Previous Year Year Year Year Year PETRO. PRODUCTS Per MT Current Previous Year Year Electricity (KWH) 3,575 2,964 Furnace Oil (Ltrs)/ HSD/HFHSD LSHS (Kgs) Gas (SM3) 4 – 9 – 623 1,491 889 41 2 38 965 52 18 48 484 27 0 35 556 63 22 32 408 8 5 – 435 21 – 3 604 308 148 – 565 303 210 – 596 638 543 511 317 293 341 384 752 985 161 163 278 291 244 274 55 – – – – – 1 – – – – – 4 – – – – – 3 – – – – – 2 – – – – 53 65 – – – – – 6 – – 82 – – 87 2 – – 6 – – – – – – – – – Note : The above figures in addition to direct consumption also include allocated consumption in the supporting utilities and facilities applicable to respective products. Mumbai, Dated: 30th September, 2002 For and on behalf of the Board of the Directors Mukesh D. Ambani Chairman & Managing Director Auditors’ Report on Corporate Governance To the Members of RELIANCE INDUSTRIES LIMITED We have examined the compliance of conditions of Corporate Governance by Reliance Industries Limited, for the year ended on 31st March, 2002, as stipulated in Clause 49 of the Listing Agreement of the said Company with Stock Exchanges. The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination has been limited to a review of the procedures and implementations thereof adopted by the Company for ensuring compliance with the conditions of the Corporate Governance as stipulated in the said Clause. It is neither an audit nor an expression of opinion on the financial statements of the Company. In our opinion and to the best of our information and according to the explanations given to us, and based on the representations made by the Directors and the Management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in Clause 49 of the above mentioned Listing Agreement. As required by the Guidance Note issued by the Institute of Chartered Accountants of India we have to state that no investor grievances were pending for a period of one month against the Company as per the records maintained by the Shareholders / Investor’s Grievance Committee. We further state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company. For Chaturvedi & Shah Chartered Accountants D. Chaturvedi Partner Mumbai Dated: 30th September, 2002 For Rajendra & Co. Chartered Accountants R.J. Shah Partner 64 Reliance Industries Limited Reliance Industries Directors Report.p65 # Statement persuant to Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, for the year ended 31st March, 2002, forming part of the Directors’ Report. (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) NAME AGE QUALIFICATION DESIGNATION ABDUL RAZACK * ACHARYA DILIPKUMAR B * ACHARYA KIRITKUMAR J * ACOOLI PRADUTKUMAR L * ADESHARA INDRAVADAN N * ADHYARU MAHENDRA A * AGARWAL ALOK AGRAWAL SHREE BHAGWAN AMBANI A D AMBANI ATULKUMAR U * AMBANI CHANDRESH B * AMBANI D H AMBANI M D AMBANI VIJAY B * AMBANI VINOD M ANANTA NARAYANA G ANSARI MOBINALI ABDULRAUF * APPASWANY RANJINI * ATUL LAUL AWADESH N SINHA B NARAYANAN * BAGCHI ANUP BALASUBRAMANIAN R BALASUBRAMANIAN V BALESHWAR P N SINHA BALIRAM M SIRAKE * BANARJEE SUNDER S * BANERJEE SISIR Y * BARVALIYA VINODRAY P * BHAGDEV PRABHUDAS M * BHANDARI ANANT J * BHANDARI ASHOKANAND K * BHARAT B SETHI BHAT V V BHATIA PRAKASH M * BHATT DILIPKUMAR R * BHATT HEMANT K * BHATT JAGDISHCHANDRA T * BHATT JAYSHANKAR D * BHATT R S BHATTY ASHISH V * BHAVSAR BHUPENDRA C * BHAVSAR DASHRATH G * BHAVSAR LAXMAN S * BHONDWE ILA S * BHONSLE MADHUKAR D * BHUSHAN AMBALAL K * BIJLANI HASMUKH N * BORAH MANICK CHANDRA BRAHMBHATT JAYESHKUMAR M * BUCH CHIRANTAN B * BUDHURAM KHARPATI * CHAINI M N CHAMPANERI ARVIND J * CHAMPANERI PRAFULKUMAR C * CHAMPAWAT UDESING M * CHANDRASEKHAR S CHATTERJEE DEBASHIS S * CHATURVEDI ASHOKKUMAR R * CHATURVEDI DAMODAR D * CHATURVEDI SURENDRA R * CHAUDHRI A P * CHAUHAN ASHISH KUMAR CHAUHAN JASVANTSINGH D * CHAVDA KARANSINH M * CHHAYA ARUNCHANDRA S * CHHIPA AHMED K * 53 50 53 53 47 46 44 56 43 38 39 70 45 41 57 43 48 46 41 64 49 49 52 64 64 56 47 48 49 54 45 49 42 58 40 46 43 45 52 47 33 48 49 56 45 56 40 46 54 38 39 59 60 44 39 52 45 46 50 46 49 65 34 49 44 58 51 NON MATRIC SSC M COM NON MATRIC B COM B A BTECH (ELECT.), PGDM OFFICER - SALES SR OFFICER - DATA ENTRY SR OFFICER - DESPATCH ASSTT SUPDT - MAINT SR ASSISTANT JR ASSISTANT TREASURER BSC(CH), BE(M) ,AMIE(E) ASSTT. VICE PRESIDENT BSC(HON),MBA MANAGING DIRECTOR B COM B COM EXP IN SR MGT BTECH(CHEM),MBA NON MATRIC B.COM, FCA, DTM B.Tech, MMM NON MATRIC SSLC BE PG.Sc.B.A SSLC M.TECH. BSC, ACA, CAIIB BA B.Sc., AMIE 7th Standard MATRIC B SC (TECH) B COM SSC B COM B SC B.Com, ACA BSC, LLB SSC B COM B COM LLB SY B A SSC B.COM, LLB, FCA DTM B FINE ARTS SSC B COM SY B A DTT HSC CERT IBM SSC B.COM (HONS), FCA HSC B SC DTC ILLITERATE JR ASSISTANT SR ASSISTANT CHAIRMAN VICE CHAIRMAN & MD ASSISTANT PRESIDENT ASSISTANT VICE PRESIDENT SR TRACER STENO-SECRETARY VICE PRESIDENT PRESIDENT SR OFFICER - SALES A/C SR. VICE PRESIDENT SENIOR VICE PRESIDENT GROUP PRESIDENT VICE PRESIDENT WORKER TRACER MANAGER - JET WVG OFFICER - ACCOUNTS SR ASSISTANT ASSISTANT SHIFT INCHARGE - PRODN ASSISTANT VICE PRESIDENT SR TRACER JR ASSISTANT JR OFFICER - LEGAL JR ASSISTANT SR ASSISTANT - PRINTING SR.EXECUTIVE VICE PRESIDENT SHIFT INCHARGE - PRODN SR ARTIST SR TECH ASSISTANT OFFICER - B.C.C. CASHIER SHIFT INCHARGE - PRODN SR TRACER JR OFFICER - OPERATIONS SR. VICE PRESIDENT JR ASSISTANT SR SUPERVISOR WORKER BE(CHEM), DBM GROUP PRESIDENT B COM DTM SSC MBA,Ph.D(Leeds)- Organisational Behaviour B COM B SC ITI CTI SSC SSC ME JR OFFICER - ACCOUNTS SHIFT INCHARGE - PRODN ASSISTANT PRESIDENT - HR DY G M - MKTG DY SUPDT - RYD OFFICER - TRAINING SEMI CLERK PRESIDENT PGDM, B.TECH (MECH) VICE PRESIDENT-EXCHANGE SSC B COM B SC NON MATRIC SUPERVISOR - PRODN SR ASSISTANT DY SUPDT - WTP SR ARTIST JOINING DATE 02-May-68 26-Dec-75 01-Jul-77 06-Dec-69 02-Dec-75 01-Nov-83 GROSS EARNINGS 5 35 552 4 74 957 4 25 717 6 03 577 3 51 396 2 19 091 17-Mar-93 41 74 120 21-Jan-87 29 97 404 01-Jan-81 7 20 34 383 23-Jun-82 16-May-83 2 85 632 3 18 316 11-Feb-66 8 94 74 667 21-Feb-81 7 21 38 987 20-Apr-79 3 25 393 03-May-73 44 19 150 02-Nov-95 32 82 495 01-Jun-75 16-Feb-76 4 87 380 3 85 232 23-Jun-94 37 83 927 01-Dec-98 46 10 224 13-Sep-78 3 77 819 21-Aug-00 24 81 906 06-Dec-90 38 04 917 01-Apr-74 48 23 462 17-Jul-97 26 51 478 01-Sep-66 01-Oct-81 05-Dec-80 01-Jun-77 01-Mar-79 01-Feb-80 31-Mar-80 4 04 860 3 65 881 5 06 101 3 73 344 2 98 301 2 72 080 3 13 522 29-Dec-97 27 16 481 01-Aug-78 01-Apr-87 06-Jun-79 02-Jan-82 01-Sep-80 3 78 763 2 61 544 3 55 553 2 60 032 3 55 374 19-Oct-81 25 45 870 01-Sep-89 09-Aug-79 02-Nov-71 02-Dec-77 16-Oct-93 11-Feb-78 14-Sep-81 12-Jun-80 2 61 200 3 12 472 4 09 024 3 33 788 2 63 274 2 77 073 3 28 576 2 81 358 03-Mar-95 27 35 583 03-Jul-82 20-Jun-85 20-Oct-72 2 52 277 2 86 959 3 01 864 01-Nov-85 27 06 801 15-Dec-83 25-Mar-85 09-Jul-84 2 35 825 3 31 518 2 16 277 07-Feb-00 27 62 977 14-Feb-76 28-Dec-81 01-Oct-79 20-Feb-72 7 90 560 3 33 437 3 42 367 2 83 744 15-Jul-96 17 28 949 27-Mar-00 48 15 227 01-Nov-86 19-Jul-79 04-Sep-72 11-Apr-77 3 96 915 3 44 771 7 24 852 4 34 967 EXP PREVIOUS ORGANISATION PREVIOUS DESIGNATION 33 30 33 33 27 26 21 34 20 19 19 49 21 22 34 20 28 26 19 40 29 23 30 40 41 36 27 28 29 34 25 29 20 36 23 26 23 25 32 22 13 28 29 36 25 36 20 26 32 19 19 39 35 24 19 32 24 26 30 26 29 42 12 29 24 38 31 FIRST EMPLOYMENT DR R K BHANSHALI,A,BAD U P PLASTO CHEMICALS LTD, NEPAL KNITTING MILLS,NEPAL NAVNEET PRAKASHAN KENDRA,A'BAD KALPANA PRINTING PRESS,A'BAD BANK OF AMERICA SWADESHI POLYTEX LTD. - FIRST EMPLOYMENT FIRST EMPLOYMENT OWN BUSINESS - FIRST EMPLOYMENT A F FERGUSON & CO. - COMPOUNDER ACCOUNTANT FOREMAN CLERK CLERK TREASURER MAINT. IN CHARGE - - - - - - ASST. TAX MANAGER RELIANCE PETROLEUM LIMITED ASSISTANT VICE PRESIDENT GAJJAR PVT.LTD., TRACER DIVISIONAL ENGINEER(H) ,MADRAS-600015 RECORD CLERK RELIANCE PETROLEUM LIMITED RELIANCE PETROLEUM LIMITED SLM MANEKLAL INDUSTRIES LTD. GE PLASTICS (INDIA) LTD. SYNDICATE BANK DHRANGADHRA CHEM WORKS LTD. VICE PRESIDENT PRESIDENT STENO TYPIST VICE PRESIDENT (MARKETING) OFFICER EXECUTIVE RELIANCE PETROLEUM LIMITED VICE PRESIDENT FIRST EMPLOYMENT FIRST EMPLOYMENT BOMBAY DYEING & MFG LTD,BOMBAY EGALE ENGINEERING PVT.LTD., FIRST EMPLOYMENT M G SODA FACTORY IIM RELIANCE PETROLEUM LIMITED DATAMATICS CONSULTANTS LTD FIRST EMPLOYMENT FIRST EMPLOYMENT SHAH TRADING CO.A'BAD K T CORPORATION FIRST EMPLOYMENT GREEVES COTTON CO. LIMITED ASIAN GROUP CO., SURAT AJAY SCREENING DESIGN WORKS JAGDISH TEXTILE M K ASSOCIATE FIRST EMPLOYMENT - - JR ASST CLERK - CLERK RESEARCH ASST ASSISTANT VICE PRESIDENT EXECUTIVE DIRECTOR - - TYPIST CLERK CUM TYPIST - INTERNAL AUDIT OFFICER WEAVING SUPERVISOR TRACER - AUDIT ASST. - GWALIOR RAYON SILK MFG CO.LTD., SUPERVISOR FIRST EMPLOYMENT - THE AHMEDABAD NEW COTTON MILLS, A'BAD. PUNCH OPERATOR INDIAN OIL CORPORATION GENERAL MANAGER FIRST EMPLOYMENT FIRST EMPLOYMENT NEK TILES CHEMTEX ENGINEERING OF INDIA FIRST EMPLOYMENT FIRST EMPLOYMENT CISF NIIT - - OPERATOR VICE-PRESIDENT - - SECUIRTY GUARD VICE PRESIDENT MCGRAW RAVINDRA LABORATORIES SALES REPRESENTATIVE RAJASTHAN TEXTILE MILLS WVG.SUPERVISOR FIRST EMPLOYMENT FIRST EMPLOYMENT RELIANCE PETROLEUM LIMITED NATIONAL STOCK EXCHANGE FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT - - PRESIDENT VICE PRESIDENT - - - SHAH PHOTO SUVEGE FARM ARTIST GROUP PRESIDENT-MANAGEMENT SERVICES 01-Sep-87 56 62 687 Salary of RIL.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Reliance Industries Limited 65 NAME AGE QUALIFICATION DESIGNATION 56 43 51 45 57 47 52 49 50 55 42 49 41 40 52 47 53 48 50 46 47 51 53 47 48 29 50 58 29 44 43 46 46 59 50 51 52 63 50 53 48 44 49 42 51 52 46 47 49 46 46 55 40 45 54 47 45 46 41 43 40 42 57 57 53 50 41 48 52 50 CHHIPA SHAMSUDDIN S * CHOGANWALA LINKER B * CHOKSHI ASHOKKUMAR S * CHOKSHI HIMANSHU T * CHOWDHARY SARUP CHRISTION ELIZA V * CHRISTION KISHAN VICTOR * DABHI VARJANGBHAI S * DANI UPENDRAKUMAR K * DAS BANKABEHARI L * DATE SHANTANU S DAVE ASHOK C * DAVE BHARATKUMAR S * DAVE GHANSHYAM M * DAVE HARISH R * DAVE KALPESH N * DAVE NARESH R * DAVE PANKAJ R * DAVE PAWAN * DAVE PROMODKUMAR V * DAVE RAJESH S * DAVE YASHWANT L * DELIWALA CHANDRAKANT R * DEPALA HASMUKH V * DESAI BHARAT DESAI HARIN K * DESAI HEMANT I DESAI JALAMSINGH N * DESAI JIGNESH R * DESAI NAGJIBHAI M * DESAI NITIN T * DESAI PRAKASH G * DESAI SHAILESH B * DESAI YOGESH DESAI YOGESHKUMAR A * DESHBHARTAR R * DESHMUKH N B DEV KRISHEN * DHADDA R K DHUVAD CHAMPAKLAL B * DIASARA SHARAD T * DINESHA L G * DIPANKAR D SEN DODIA SHARADKUMAR A * DODIYA BHUPAT M * DOSHI CHINUBHAI B * DOSHI DINESH B * DOSHI NILKANTH L * DOSHI PRADIP T * DR KUSH ANIL DR TOTEY SATISH M DR. KELKAR J V D'SILVA JOHN PHILIP L * D'SOUZA MARK * D'SOUZA RUZAI THOMAS * D'SOUZA STANLEY JOHN * FOZDAR PROMODINI B * G ANJANEYULU * GAJJAR ANIL I * GAJJAR DINESHKUMAR G * GAJJAR JAYENDRAKUMAR D * GAJJAR MUKESH C * GAJJAR PRABHUDAS N * GAJJAR PRAVINKUMAR M * GAJJAR SHANTILAL N * GAJJAR VIKRAM S * GAJJAR VINODCHANDRA P * GANAPATHY SUBRAMANIAN R * GANAPATI M GANDHI ASHVINKUMAR N * 66 NON MATRIC B A NON MATRIC B COM B.TECH, IIT (DELHI) FY B A SSC B COM DMTT DMTC PRE COM B TECH(CHEM) B COM B COM B COM SSC B A B A B COM MSC, MBA B A B COM B COM B SC DTC B A BCOM B E (MECHANICAL) BCOM NON MATRIC B E (ELECTRICAL) SY B COM B COM B COM B A AMIIE SSC NON MATRIC M.TECH (CHEM.) BTECH (CHEM.) BE B SC DTC DMMF M.Sc, DMS FY B COM DIP COM ARTS SSC B COM B COM B A Ph.D, M.Sc Ph.D, MVSC,BVSC BTECH.(CHEM.),PHD SSC B.COM, MBA NON MATRIC NON MATRIC B A LME NON MATRIC M COM B SC NON MATRIC SSC MATRIC SSC SSC FY B COM B.Sc, ACA M.TECH (CHEM.) B SC ASSISTANT VICE PRESIDENT (PP/FCP) 02-Apr-86 50 46 848 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) JOINING DATE GROSS EARNINGS 15-Apr-77 01-Jun-79 01-Nov-71 20-Oct-78 3 61 647 3 11 595 4 95 613 3 86 921 22-Mar-00 63 54 921 19-Jan-81 01-Nov-86 08-Jul-78 01-Jul-74 01-Jan-81 2 77 615 3 61 577 3 05 002 6 59 340 2 70 329 02-Jan-86 05-Oct-81 09-Jul-81 03-Sep-76 13-Apr-79 26-Sep-73 07-Jan-75 3 19 485 3 18 928 2 42 195 3 83 277 2 92 720 3 72 265 3 31 485 11-Apr-01 31 23 076 20-Aug-79 03-Oct-75 05-Sep-73 01-Mar-74 09-Dec-81 2 71 516 3 88 680 4 65 720 4 98 024 2 38 905 11-Dec-00 24 86 272 01-May-94 2 67 455 08-Dec-82 43 82 690 16-Dec-71 15-Feb-95 09-Sep-79 05-Feb-82 11-Sep-81 19-Mar-79 3 50 315 2 15 296 2 57 497 2 48 759 3 47 650 3 14 530 29-Aug-94 32 21 033 02-Oct-77 01-Jan-83 2 96 608 4 07 475 01-Aug-86 26 25 411 03-Jul-00 27 96 971 21-Mar-01 47 46 699 20-May-78 01-Aug-78 01-Sep-92 5 39 844 4 41 997 8 40 760 23-Jan-98 39 26 670 01-May-80 03-Nov-76 01-Jan-83 03-Aug-78 11-May-76 06-May-72 3 46 920 3 31 946 3 34 362 3 14 517 3 51 324 3 82 633 SR ARTIST ASSISTANT ASSTT SUPDT - PRODN OFFICER - WASTE SALES PRESIDENT SR TRACER SUPERVISOR ASSISTANT MANAGER - D&D ASSISTANT SR OFFICER - TRAINING SR ASSISTANT ASSISTANT ASSISTANT - PRINTING SR ASSISTANT JR OFFICER - IR SR ASSISTANT SR. VICE PRESIDENT JR ASSISTANT SR ASSISTANT ASSTT SUPDT - PRINTING ASSTT SUPDT - PRODN ASSISTANT SR. VICE PRESIDENT ASSTT ENGINEER SR. EXECUTIVE VICE PRESIDENT DRIVER ASSTT SUPDT - MAINT CLERK JR ASSISTANT SR ASSISTANT SR ASSISTANT PRESIDENT ASSISTANT SR TECH ASSISTANT ADDL. VICE PRESIDENT PRESIDENT SR. VICE PRESIDENT DY SUPDT SR ARTIST SR. VICE PRESIDENT SR TRACER PHOTOGRAPHER COLOUR CHEMIST ASSISTANT SR ASSISTANT SR ASSISTANT VICE PRESIDENT - PLANT BIOTECHNOLOGY 07-Dec-00 26 07 402 RESEARCH LEADER SENIOR EXECUTIVE VICE PRESIDENT SUPERVISOR VICE PRESIDENT SR TECH ASSISTANT SR TECH ASSISTANT ASSISTANT SUPERVISOR - MAINT. TECH ASSISTANT ASSISTANT SHIFT INCHARGE - PRODN SR TRACER DY SUPDT - MAINT ASST MANAGER - DESIGN SR TRACER SR TRACER SR TRACER SR. VICE PRESIDENT GROUP SR. VICE PRESIDENT OFFICER - FOLDING 05-Mar-01 25 91 040 01-Oct-91 29 05 418 01-Mar-85 2 74 754 29-Oct-01 11 34 328 01-Apr-78 07-May-74 01-Nov-80 15-Apr-82 01-Aug-82 07-Jun-82 02-Sep-82 01-Aug-78 19-Feb-81 02-Nov-84 01-Jun-75 01-Jun-75 01-May-80 3 66 235 4 72 673 2 75 279 2 45 975 2 89 888 2 87 636 3 28 883 3 37 150 5 13 227 4 53 519 4 03 255 3 98 314 3 47 195 09-Jul-01 19 33 994 13-Jun-85 33 61 608 06-Jun-77 4 70 640 Reliance Industries Limited EXP PREVIOUS ORGANISATION PREVIOUS DESIGNATION 36 23 31 25 35 27 32 29 30 35 21 29 21 20 32 27 33 28 28 26 27 31 33 27 29 9 28 38 9 24 23 26 26 33 30 31 26 39 28 33 28 20 26 22 31 32 26 27 29 19 21 30 20 18 34 27 25 26 21 23 20 23 37 37 33 30 21 29 31 30 PALIWALA MOHMADBAHI JAMALBHAI ARTIST GUJARAT METEL INDUSTRIES GODOWN KEEPER FIRST EMPLOYMENT - POLICE COMMISONNER OFFICE,SHAHIBAUG JR CLERK GE PLASTICS FIRST EMPLOYMENT FIRST EMPLOYMENT STATE BANK OF SAURASTRA FIRST EMPLOYMENT VICTOR CAST LINO POLSION LTD., MANAGING DIRECTOR & CE - - CLERK - CHECKER RASHTRIYA CHEMICALS & FERTILIZER JR ENGINEER (CHEMICAL) GUJARAT SAMACHAR FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT SHRI AMBICA FOLDING AND TEXTILE FIRST EMPLOYMENT S P FORCE DABHOL POWER CORPORATION FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT JOURNALIST - - - CLERK - SUPERVISOR GENERAL MANAGER - - - VOLGA FOOD PRODUCTS MUMBAI SALES REPRESENTATIVE FIRST EMPLOYMENT ARVIND MILLS LTD. FIRST EMPLOYMENT CONSULTING ENGINEERS - HEAD, COTTON & YARN SOURCING - CONSULTANT KALA MANDIR TEXTILE,BARODA ELECTRICIAN CUM DRIVER SOMA TEXTILE LTD., FIRST EMPLOYMENT B K TRADERS PIRAMAL MILLS FIRST EMPLOYMENT ASEA BROWN BOVERIE TRAINEE ENGINEER - SALES MAN CLERK - PRESIDENT CORPORATE COMMN THE AHMEDABAD LAXMI COTTEN MILLS FIRST EMPLOYMENT CLERK - BONGAIGAON REFINERY & PETROCHEMICALS LTD. DY. MANAGER CENTURY ENKA LTD. RELIANCE PETROLEUM LIMITED NEW SORAK MILLS ARVIND MILL STATE BANK OF HYDERABAD RELIANCE PETROLEUM LIMITED FIRST EMPLOYMENT A B ADVERTISING FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT SR. PRESIDENT SR. VICE PRESIDENT JR ASST. TRACER MANAGER SR. VICE PRESIDENT - PHOTOGRAPHER - - - - INDO AMERICAN HYBRID SEEDS P.LTD VICE PRESIDENT NATIONAL INSITITUTE OF IMMUNOLOGY STAFF SCIENTIST & HEAD NATIONAL ORGANIC CHEMICAL INDUSTRIES LTD PRODUCTION MANAGER FIRST EMPLOYMENT P&O CONTAINERS FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT DHAL ENTERPRISE JYOTI PROCESSERS PVT.LTD., ARUNA ARTS DHALL ENTERPRISE,A'BAD FIRST EMPLOYMENT N S SILK MILLS LTD., KAMAL SCREEN DESIGNER BHARAT VIJAY MILLS LTD., KALOL RELIANCE PETROLEUM LIMITED INDU NISSAN INDUSTRIES LTD. - BUSINESS DEVELOPMENT MANAGER - - - - - ACCOUNT CLERK PTG SUPERVISOR TRACER ERRECTOR - TRACER TRACER TRACER SR. VICE PRESIDENT CHEMICAL ENGINEER FIRST EMPLOYMENT - M.SC(Tech), PGDT&AC DY. GENERAL MANAGER Salary of RIL.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) NAME AGE QUALIFICATION DESIGNATION GANDHI DILIPKUMAR N * GANDHI MUKESH C * GANDHI V K GANDHI VIJAY S * GAUR RAKESH R GHICHAJIWALA SABIRMOHAMAD * GILL U P S GOEL ALOK * GOKHALE C S GOPALAKRISHNAN K GOR DINESHCHANDRA A * GOSWAMI KANUBHARTI S * GOUTAM YUGESH * GUPTA MANMOHAN INDRAPRAKASH GUPTA PREMCHANDRA HARKAULI VIVEK * HARVINDERJEET SINGH PANNU IDRIS MOHAMMED D * IYER ANNATHORAI VENKATARAMAN IYER RAJU M.N * JADHAV LAHANU F * JAGANNATHA G V KUMAR JAIN SOHANLAL C * JANARDHAN M K JANI HARSHAD J * JESUDASAN ANTHONY JOGLEKAR PRABHAKAR MADHAV JOHN P M * JOSHI ASHOK KUMAR C * JOSHI BHADRESHKUMAR U * JOSHI CHANDRAKANT C * JOSHI GAUTAMKUMAR C * JOSHI KIRAT S * JOSHI NARESH N * JOSHI PANKAJ N * JOSHI PANKAJKUMAR P * JOSHI RAJESH R * JOSHI SHASHIKANT M * JOSHI TANSHUKHRAI C * KABRA R L KADAM SANDESH CHANDRAKANT KAKKADI RAVEENDRAN K * KAKUWALA YAKUB A * KALYANI KALPANA R * KALYANI KISHOREKUMAR D * KALYANI RAJANIKANT H * KANDHARI VASUDEV P * KANOJIA MADHUSUDHAN D * KANSAL S K * KANSARA HARSHAD J * KAPIL P K KAPOOR RAJESH N * KARDKAR PRADIP S * KARGATIA BABUBHAI K * KAUL VIVEK * KAVI RAVINDRA J * KAYARAT SREEDHARAN H * KELKAR ANIL KRISHNA KHEDAWALA IBRAHIM F * KISHANGADHWALA FARIDMOHMAD * KISHORCHANDRA B AMBANI * KK REMANAN KARTHA * KOLADIA THAKARSI L * KUCHERWALA UMMAR FARUQ S * KUCHMANWALA MOHMADHUSAIN I * KULBUSHAN MEHRA * KULKARNI SANJEEV KUMAR NARENDRA LADHER JASWANTBHAI C * LALIT SAWHNEY * 44 53 47 47 48 53 48 44 57 53 45 45 37 51 51 49 51 57 62 43 52 40 61 60 51 50 58 52 36 40 51 49 45 45 49 44 45 43 45 59 41 47 51 43 47 45 49 53 58 58 57 58 48 56 46 54 45 49 42 52 58 55 45 42 56 41 42 59 44 52 B SC B SC ACA, ICWA SSC BE, PGDBA NON MATRIC BSC, MBA B.E., PGDM BSC B.Sc. (Engg.) B A B SC DTC BCOM, PGPM&IR ME (CHEM.) BSC(CHEM)ENGG BE MA NON MATRIC AMIE (MECH.) SSLC SSC SR CHEMIST SR ASSTT LAB SR. VICE PRESIDENT (COMMERCIAL) JR OFFICER - CIVIL MAINT. SENIOR EXECUTIVE VICE PRESIDENT SR ARTIST SENIOR EXECUTIVE VICE PRESIDENT VICE PRESIDENT PRESIDENT VICE PRESIDENT OFFICER - PURCHASE SHIFT INCHARGE VICE PRESIDENT PRESIDENT VICE PRESIDENT(PTA) SR. VICE-PRESIDENT SR. VICE PRESIDENT ASSTT SUPDT - PRODN GROUP SR. VICE PRESIDENT ASSISTANT/TYPIST SR SUPERVISOR - PRODN BTECH, MBA (FIN.) VICE PRESIDENT M SC B.Sc Engg SSC BSC, MBA BA, MSW B A SY B COM B A LLB NON MATRIC SSC B SC DTC B A B A B COM B COM B A B A M.COM SR MANAGER - PROCESSING SR. VICE PRESIDENT ASSISTANT SR. EXECUTIVE VICE PRESIDENT GROUP SR. VICE PRESIDENT SR ASSISTANT/TYPIST MANAGER - SALES ASSISTANT/TYPIST SR ASSISTANT OFFICER - PACKING ASSTT SUPDT - PROCESSING ASSISTANT ASSISTANT OFFICER - COSTING ASSISTANT ASSISTANT ASSISTANT - LAB SR. EXECUTIVE VICE PRESIDENT LTM, BTEXT, MTECH(CH) ASSTT. VICE PRESIDENT STENO-TYPIST SR ARTIST RECEPTIONIST SR ASSISTANT JR OFFICER - AUDIT MANAGER - TRAINING ASSISTANT ADDL. VICE PRESIDENT ASSTT MANAGER - IR PRESIDENT CHIEF MANAGER - YARN DYNG TECH ASSISTANT SHIFT INCHARGE - PRODN SR. VICE PRESIDENT CHIEF MANAGER - B.C.C. ASSISTANT SSLC NON MATRIC B COM B A SSC DIRPM DHRD LLB HSC DME (MECH) MLW B A LLB B.Tech B TEXT SSC SSC B.A., ACA ICWA SSLC BTECH (CH) NON MATRIC NON MATRIC 10th Standard SSLC B SC NON MATRIC NON MATRIC B.Sc, LLB BSC (ENGG) BTECH (CHEM.) SSC B.Tech, PGDBM (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) JOINING DATE GROSS EARNINGS 16-Oct-78 22-Apr-80 3 50 127 3 20 127 14-Nov-95 50 11 370 22-Dec-75 4 32 177 15-Apr-98 37 66 429 01-Aug-78 2 84 172 14-Jan-99 33 87 582 27-Apr-01 26 46 896 31-Jan-90 49 77 418 24-Feb-99 28 31 075 21-Mar-77 01-Sep-84 4 14 218 3 99 575 01-Sep-01 21 41 425 04-Jul-88 54 22 239 17-Oct-94 30 95 435 02-May-99 10 14 545 07-Nov-96 24 98 944 01-Jul-72 5 73 529 22-Aug-87 53 67 682 10-Nov-79 14-Jul-77 3 15 886 3 21 285 20-May-00 31 07 533 01-Sep-77 3 48 714 14-Sep-98 41 62 300 15-Apr-82 2 07 120 15-Feb-90 38 33 952 27-Jul-89 48 48 122 08-Apr-77 10-May-73 21-Jun-82 08-Sep-71 29-Mar-79 13-Aug-81 01-Jan-86 25-Dec-78 06-Dec-79 17-Dec-81 17-Jul-80 20-Jul-78 3 62 816 7 37 035 2 70 323 4 10 119 3 72 204 4 23 253 2 85 667 2 83 543 3 58 171 2 86 709 2 80 667 2 69 984 20-Oct-94 43 05 662 19-Jun-85 35 77 955 14-Jun-78 01-Aug-78 02-Dec-80 27-Nov-76 22-Sep-79 29-Dec-74 18-Dec-78 2 92 525 4 17 453 2 80 529 3 45 895 3 30 322 6 00 626 2 38 603 17-Jun-86 11 01 317 18-Nov-69 6 37 673 08-Jul-96 50 25 110 21-Jan-73 10 67 193 01-Jan-83 01-Jul-73 3 09 499 5 40 020 09-Apr-01 52 45 060 01-Feb-79 08-Oct-76 6 20 490 2 96 531 EXP PREVIOUS ORGANISATION PREVIOUS DESIGNATION 24 33 23 27 25 33 29 22 37 30 25 25 15 27 30 27 26 37 37 23 32 18 41 35 31 27 26 32 28 20 31 29 25 25 29 24 25 23 25 35 16 27 31 23 27 25 29 33 37 38 33 38 28 36 24 34 25 26 22 32 38 35 25 22 36 21 20 35 24 28 FIRST EMPLOYMENT FIRST EMPLOYMENT RELIANCE PETROLEUM LIMITED KOTYARK LANE CORPORATION JCT LIMITED MR AJAY SCREEN, RAIPUR JCT LIMITED INDORAMA SYNTHETICS LTD PETROFILS CO-OPERATIVE LIMITED RELIANCE PETROLEUM LIMITED FIRST EMPLOYMENT THE A'BAD MFG BECTON DICKINSON ASIA PTE LTD. INDIAN RAYON & INDUSTRIES NIRAJ PETROCHEMICALS LTD INDORAMA SYNTHETICS LTD RELIANCE PETROLEUM LIMITED VINAR LTD., CALCUTTA HINDUSTAN PETROLEUM CORPN. LTD. NEELAM INDUSTRIES,NARODA,A'BAD NATIONAL ENGINEERING WORKS I C I C I GWALIOR RAYON,MP RELIANCE PETROLEUM LIMITED JILLAPANCHAYAT EDUCATION USIS COUNTRY MEDIA ISPAT PROFILES (INDIA) LTD. FIRST EMPLOYMENT C M AUTOMOBILES,A'BAD C H ENGR. PVT.LTD., FIRST EMPLOYMENT - - SR. VICE PRESIDENT (COMMERCIAL) CLERK VICE PRESIDENT ARTIST BUSINESS HEAD SR. VICE PRESIDENT EXECUTIVE DIRECTOR VICE PRESIDENT - SUPERVISOR DIRECTOR - HR GENERAL MANAGER SR GENERAL MANAGER BUSINESS HEAD SR. VICE PRESIDENT OPERATOR SR. MANAGER TYPIST FITTER JT. GENERAL MANAGER SHIFT INCHARGE SR. VICE PRESIDENT CLERK MEDIA ADVISOR ASST. GENERAL MANAGER - COUNTER SALESMAN TYPIST - GOLDEN TOBECO CO.PVT.LTD. ASST SUPERVISOR AHMEDABAD NEW TEXTILE MILLS LTD., RAIPUR,A TRAINEE SUPERVISOR FIRST EMPLOYMENT - AFCONS RADIO ENGINEERING CO. ASST STORE KEEPER FIRST EMPLOYMENT BADOPALIA TEXTILE IND. FIRST EMPLOYMENT FIRST EMPLOYMENT CENTURY ENKA LTD. J.K.SYNTHETICS LIMITED FIRST EMPLOYMENT ALANKAR SCREEN FIRST EMPLOYMENT MANEKLAL HARILAL MILLS FIRST EMPLOYMENT KORES INDIA LTD., FIRST EMPLOYMENT TOYO ENGINEERING FIRST EMPLOYMENT RELIANCE PETROLEUM LIMITED J K SYNTHETICS FIRST EMPLOYMENT ENGINEERING INSTITUTE, BARODA - ACCOUNTANT - - MATERIALS MANAGER MANAGEMENT TRAINEE - ARTIST - CLERK - OPERATOR - SR. ENGINEER - PRESIDENT DYEING ASST. - ATTENDENT HONEYWELL INTERNATIONAL [INDIA] PVT. LTD DIRECTOR - FINANCE ARVIND MILLS FIRST EMPLOYMENT COST ACCOUNTANT - BONGAIGAON REFINERY & PETROCHEMICALS LTD. SR. PROJECT ENGINEER FIRST EMPLOYMENT NUTAN PHOTO FIRST EMPLOYMENT HOTEL VOLGA, AHMEDABAD PWD , A'BAD NTC ADVANCE SCREEN MAKERS RELIANCE PETROLEUM LIMITED LOHIA MACHINES LTD. (FIBRE DIVN.) INDIA POLYFIBRES LTD. - SR TRACER - ASSISTANT CLERK TRACER TRACER STATE HEAD SR. ENGINEER SR. VICE PRESIDENT HIGH POLYMIER CHEMICAL INDUSTRIES CHEMICAL SUPERVISOR RELIANCE PETROLEUM LIMITED SR. VICE PRESIDENT GROUP VICE PRESIDENT - POLY TECH SERV 02-Mar-81 52 79 378 TRACER SR TRACER WORKER SR OFFICER - CATERING SHIFT INCHARGE - PRODN SR TRACER SR TRACER STATE HEAD GENERAL MANAGER SR. VICE PRESIDENT SR ASSISTANT - LAB SR. VICE PRESIDENT 14-Sep-81 11-Apr-77 24-Mar-76 16-Aug-85 01-Aug-81 20-Sep-79 01-Jun-75 2 73 697 3 67 499 2 66 724 2 78 690 3 42 862 3 11 624 3 90 685 18-Sep-01 19 14 480 21-Apr-87 01-Apr-00 15-Apr-78 42 58 220 24 40 720 3 42 999 27-Aug-01 35 17 370 Salary of RIL.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Reliance Industries Limited 67 NAME AGE QUALIFICATION DESIGNATION 54 57 52 51 58 59 55 54 56 50 59 61 58 54 59 48 60 58 43 43 54 58 43 52 46 56 50 47 51 44 53 45 41 43 46 49 42 31 51 42 34 36 39 39 45 48 60 49 46 50 41 50 49 56 59 45 46 44 41 40 40 39 56 51 53 61 50 54 46 B SC 7th Standard NON MATRIC SSLC 7th Standard 7th Standard BE, MS B.E., MTECH NON MATRIC B SC DTC DME B.Sc Engg DME DME DEE GD ARTS DRG-PRT BTECH (CHEMICAL), MTECH (CHEMICAL) ILLITERATE 7th Standard S S C B TECH (CH) OFFICER - OPERATIONS WORKER MUKADAM STENOGRAPHER WORKER WORKER PRESIDENT SR. VICE PRESIDENT ASSTT SUPDT - PRODN ASSTT SUPDT - DYEING SR OFFICER - SECURITY SR. VICE PRESIDENT DY SUPDT - MAINT DY SUPDT - MAINT SUPDT - AUTO PTG VICE PRESIDENT WORKER WORKER TRACER ASSTT. VICE PRESIDENT BTECH.(MECH.),MS (MECH.) GROUP SR. EXEC. VICE PRESIDENT BSC (ENGG.) CHEM., DIP. IN MGMT. GROUP SR. VICE PRESIDENT B COM SSC B COM B A DIP DRG & PTG S Y B A B E (MECHANICAL) B COM SSC B A B COM SY B COM B A B A DTC B E (ELECTRICAL) SSC B.COM, FCA ASSISTANT ASSISTANT ASSTT SUPDT - PRODN MANAGER - FOLDING ARTIST CLERK DY SUPDT - MAINT ASSISTANT SR ASSISTANT JR ASSISTANT JR ASSISTANT/TYPIST CLERK ASSISTANT ASSISTANT SR SUPERVISOR - PRODN ASSTT SUPDT - PRODN SR TRACER CONTROLLER - ACCOUNTS BSC(CHEM), MBA(WHARTON) EXECUTIVE DIRECTOR B.TECH(CHEM) EXECUTIVE DIRECTOR SSC DME SSC SR SUPERVISOR SUPERVISOR COLOUR CHEMIST NON MATRIC SR ASSISTANT - PRINTING BE B SC B COM B COM B A NON MATRIC FY B.A. NON MATRIC BE(MECH.) B SC SSLC B FINE ARTS SSLC NON MATRIC SSLC SSLC BSC(CHEM) BA, PGD in PM&IR M.TECH. (CHEM.) M.COM SSC BE B FINE ARTS GENERAL MANAGER SHIFT INCHARGE ASSISTANT SR ASSISTANT ASSISTANT SR ARTIST TRACER OFFICER - CONSTN SR. EXECUTIVE VICE PRESIDENT DY SUPDT - PRODN ASSISTANT/TYPIST ASSTT MANAGER - DESIGN SR ASSISTANT/TYPIST SR TRACER SR ASSISTANT/TYPIST SR TRACER PRESIDENT SR. VICE PRESIDENT GROUP SR. EXEC. VICE PRESIDENT PRESIDENT WORKER VICE PRESIDENT SR TRACER LANGALIA GUNVANTRAI P * LAXMAN TUKARAM * LIMBADIA NANALAL S * LOUIS K K * M.J.GADHVI * MADANSINGH BIRBALSINGH * MAHENDRA KUMAR AGRAWAL MAHESHWARI S * MAHTRE BALARAM T * MAJMUDAR CHAITANYA H * MAKWANA ARUNKUMAR T * MALHOTHRA S C MALHOTRA DHARAMVIR M * MALI PRAVINKUMAR H * MALLA RAMCHANDR S * MANDLEKAR JAYANT M MANGABHAI KACHARABHAI * MANILAL NARANDAS VALAND * MANSURI MOHMADIQBAL M * MARATHE VINAYAK RAMCHANDRA MASHRUWALLA S U * MATHEW THOMAS MEHTA AMIT V * MEHTA ANANTRAI G * MEHTA ARUNKUMAR N * MEHTA DINESH L * MEHTA HARISIDDH P * MEHTA JAGDISH K * MEHTA JASHWANTLAL T * MEHTA JAYANTKUMAR P * MEHTA KAMALKUMAR K * MEHTA KISHORKUMAR G * MEHTA MANOJKUMAR V * MEHTA PRAKASH P * MEHTA RAJNIKANT H * MEHTA RAMESH C * MEHTA VIJAY H * MEHTA VISHAL D * MENDAJWALA MOSHAFI M * MERCHANT L V MESWANI H R MESWANI N R MISHRA AKHILESH A * MISHRA BASHISTH B * MISHRA GANESH C * MISTRY PRAVINCHANDRA M * MITRA ASHOK KUMAR MODI BIPINCHANDRA K * MODI DIPAK R * MODI KAMLESH C * MOHNANI GHANSHYAM D * MOMIN LIYAKATALI G * MR SOLANKI JASUBHAI S * MUCHHALA RAMESHBHAI B * MURALI D * NAIR CHANDRAMOHAN * NAIR NANDKUMARAN N * NAIR RAMBHADRAN * NAIR RAVINDRAN P G * NAIR SHASHIKUMAR G * NAIR UNNIKRISHANAN T * NAIR VIJAYKUMAR G * NANAVATY KAMAL P NANDALAL NARAYANAN * NARAYAN B NARAYAN K NARAYANBHAI UKABHAI * NIRANJAN S VARMA * OZA SHANKARBHAI S * 68 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) JOINING DATE GROSS EARNINGS 15-Mar-75 14-Feb-67 05-Aug-75 14-Jun-75 01-Sep-79 01-Jun-73 3 58 019 3 90 932 2 41 869 3 38 500 2 32 697 2 72 918 01-Nov-00 48 00 328 01-Jul-01 19 48 528 01-Sep-70 29-Dec-77 16-Jul-76 6 06 111 4 22 433 3 31 181 01-Jun-96 27 11 385 25-Feb-85 25-Sep-81 24-Mar-77 3 27 166 4 78 955 4 11 794 02-Dec-88 28 28 890 18-Jul-69 01-Jan-79 10-Aug-79 2 55 984 2 24 763 3 05 436 04-May-87 24 14 079 01-Mar-81 2 41 373 22-Jan-86 64 21 335 12-Sep-81 21-Sep-71 16-Jul-81 27-Sep-67 18-Dec-78 10-Apr-79 16-Feb-76 09-Apr-81 22-Nov-82 01-Apr-78 17-May-82 01-Mar-90 20-Apr-79 15-Jan-81 01-Sep-91 01-Aug-94 11-Apr-77 2 48 465 3 29 473 4 11 344 5 01 480 2 75 986 2 13 118 5 71 844 2 68 241 2 55 248 3 22 941 2 35 696 2 57 848 2 93 373 2 57 766 2 02 513 2 29 983 3 74 455 01-Jun-96 62 86 479 26-May-90 1 92 86 345 26-Jul-88 1 93 39 933 02-Jul-83 17-Jun-85 01-Jan-83 01-Sep-80 2 85 879 2 48 205 3 91 002 3 84 163 15-Oct-97 26 32 959 01-Apr-77 30-Oct-81 11-Feb-82 30-Dec-81 01-May-80 01-Sep-78 01-Apr-70 03-Apr-89 01-Jan-81 25-Aug-81 08-Jun-81 29-Jan-82 01-May-80 15-Feb-86 01-Apr-81 10-Apr-89 3 67 672 2 33 903 2 90 047 2 53 968 2 88 988 3 40 844 4 91 746 6 10 996 4 48 445 2 70 829 5 13 177 2 83 269 3 62 280 2 49 233 3 23 052 52 99 516 18-May-01 48 94 272 18-Oct-79 47 97 006 08-Apr-71 46 86 515 18-Aug-70 3 62 876 17-Apr-01 23 72 473 01-Aug-78 3 28 238 EXP PREVIOUS ORGANISATION PREVIOUS DESIGNATION 34 38 32 31 38 39 32 31 36 30 39 40 38 34 39 26 40 38 23 21 26 30 23 32 26 36 30 27 31 24 33 25 21 23 26 29 22 11 31 19 11 13 19 19 25 28 39 29 26 30 21 30 29 36 38 25 26 24 21 21 20 20 34 28 28 31 31 30 26 FIRST EMPLOYMENT JOGESHVARI MILLS BOMBAY FIRST EMPLOYMENT SHRI RAM CO. FIRST EMPLOYMENT SON & SON HOTEL BOMBAY RELIANCE PETROLEUM LIMITED APPOLLO FIBRES LIMITED R V KNITTING WORKS, BOMBAY DIGVIJAY WOOLLEN MILLS, JAMNAGAR INDIAN AIR FORCE - OPERATOR - TYPIST - BUTLLER PRESIDENT CHIEF EXECUTIVE OFFICER JOBBER SUPERVISOR SGT. RELIANCE PETROLEUM LIMITED SR. VICE PRESIDENT DHAL ENTERPRISES USHA TALKIES FIRST EMPLOYMENT SUPERVISOR WIREMAN - INDIAN PETROCHEMICAL CORPN.LTD. DEPUTY MANAGER FIRST EMPLOYMENT - SARANGPUR COTTON MILLS , AHMEDABAD. HELPER FIRST EMPLOYMENT - NIRLON SYNTHETIC FIBRES & CHEMICALS LTD. SUPERINTENDENT. NATIONAL RAYON CORPN. SR. PROJECT ENGINEER PROJECT & DEVELOPMENT INDIA LTD. DY. CHIEF EXECUTIVE UTPAL INVESTMENT PVT. LTD. ASHOK SILK MILLS , BOMBAY INDEQUIP ENRG LTD., FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT M CHIMANLAL & CO. MEHTA PLASTIC SANAND FIRST EMPLOYMENT VIRAMGAM TEXTILE MILLS FIRST EMPLOYMENT FIRST EMPLOYMENT VADILAL CO. LTD., A'BAD. BALKRISHNA TEXTILE JYOTI LTD., ALANKAR PHOTO SELF EMPLOYED - - PAREKH & PAREKH ASSISTANT CLERK CLERK - - - - ACCOUNTS CLERK PARTNER - CLERK - - CLERK SHIFT SUPERVISOR TRAINEE ENGR SR TRACER - - - ASST U P IRRIGATION DEPARTMENT,FAIJABAD APPRENTICE FIRST EMPLOYMENT FIRST EMPLOYMENT PHILIPS INDIA LIMITED NAVSHIDH CHEMICAL PVT.LTD., KHADI MANDIR, AHMEDABAD NATIONAL INSURANCE CO. LTD., RAMA WORKS NEW ART ANRAWARTH FIRST EMPLOYMENT BOMBAY SYNTHETIC PVT,LTD., EURRESTRA INDUSTRIES LTD. FIRST EMPLOYMENT - - SR.GENERAL MANAGER LABORATORY CHEMIST CASHIER ASST. CLERK TEXTILE DESIGNER - GODOWN KEEPER GENERAL MANAGER - OPERATIONS - ELECTRO AIR CONDITIONING CO. STENOGRAPHER FIRST EMPLOYMENT C M SHAH & CO. FIRST EMPLOYMENT CO-OPTEX FIRST EMPLOYMENT RELIANCE PETROCHEMICALS LIMITED RELIANCE PETROLEUM LIMITED UNION CARBIDE LTD. M L D COLLEGE FIRST EMPLOYMENT - TYPIST - TYPIST - SR.VICE PRESIDENT SR. VICE PRESIDENT PROJECT ENGINEER LECTURER - RELIANCE PETROLEUM LIMITED VICE PRESIDENT FIRST EMPLOYMENT - Salary of RIL.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Reliance Industries Limited NAME AGE QUALIFICATION DESIGNATION PADHIYAR KIRITKUMAR I * PADIYA PRATIBHA P * PAI R L PAL SRINIBASH S * PANCHAL AMIT M * PANCHAL CHHAGANLAL H * PANCHAL JAYANTILAL V * PANCHAL KANTIBHAI S * PANCHAL MAHESH A * PANCHAL RAMANIKLAL M * PANDYA BHARAT R * PANDYA MUKESH P * PANDYA NARESH B * PANDYA ROHITKUMAR U * PANKHANIA PRAVIN D * PAREKH CHANDUBHAI S * PAREKH KAUSHIK J * PARIKH JAGDISH P * PARIKH KISHOR N * PARIKH MANGALDAS C * PARIKH PRAGNESH K * PARIKH SURESHCHANDRA N * PARIKH VIKRAM D * PARMAR AMBALAL M * PARMAR CHANDRAKANT I * PARMAR DHARMENDRASINH J * PARTHA MAITRA PASSI RAJARAM D * PATEL ARVIND KUMAR B * PATEL ARVINDKUMAR R * PATEL ASHOKKUMAR C * PATEL ASHVINBHAI D * PATEL BABUBHAI K * PATEL BACHUBHAI B * PATEL BHARATKUMAR B * PATEL BHIKHABHAI M * PATEL CHAITANYAKUMAR R * PATEL CHANDRAVADAN R * PATEL CHIMANLAL D * PATEL DAHYABHAI A * PATEL DASHRATH C * PATEL DASHRATHBHAI C * PATEL DASHRATHKUMAR S * PATEL DEVSHIBHAI V * PATEL DILIPKUMAR R * PATEL DINESH KUMAR D * PATEL GOVINDBHAI S * PATEL HARSHAD I * PATEL HASMUKH C * PATEL INDULAL S * PATEL JANAKKUMAR K * PATEL JASUBHAI C * PATEL JAYANTILAL A * PATEL JITENDRA C * PATEL JITENDRA R * PATEL KAMLESHKUMAR G * PATEL KANTILAL C * PATEL KANTILAL K * PATEL KISHORCHANDRA R * PATEL LALJIBHAI H * PATEL LAXMANBHAI B * PATEL MAHADEV K * PATEL MAHENDRAKUMAR K * PATEL MANDAKINI C * PATEL MANILAL C * PATEL MANILAL S * PATEL MANILAL T * PATEL NAIMESHKUMAR F * PATEL NARENDRA R * PATEL NATVARLAL G * 55 42 61 47 28 49 51 53 38 45 41 43 42 49 45 53 56 51 39 52 53 49 46 49 53 46 48 46 47 50 53 42 44 46 48 52 46 50 46 55 49 46 54 51 43 44 49 47 52 50 44 46 47 50 47 39 49 49 49 52 46 47 50 37 47 43 46 43 56 44 SSC DIP ARTS MARINE ENGG. B SC B E (TEXTILES) DIP ARTS INTERMEDIATE B A B SC B SC B SC DTC DIP(SAFETY) SSC INT.DRAG. B A B COM NON MATRIC B COM B COM B COM B COM DTC DLP BSC LLB DIP COM ARTS M SC B A DTC B COM B.Tech, Ph.D NON MATRIC B COM ITI M SC B A SSC NON MATRIC B A SSC B COM B COM G D ARTS NON MATRIC FY B A SSC B A SSC B COM DMMF WP M SC B COM B COM B COM DME DEE B A SSC B COM B SC LLB CERT IBM SSC B COM M SC B COM SSC DTM NON MATRIC B SC B COM D COM NON MATRIC ITI SSC B SC DTC B SC DME DEE PDRA HCW SSC JR ASSISTANT SR ARTIST SR. VICE PRESIDENT SR ASSISTANT - LAB SHIFT INCHARGE - PRODN SR ARTIST SR TRACER OFFICER - FOLDING SR ASSISTANT - LAB SHIFT INCHARGE SR ASSISTANT - LAB SR ASSISTANT TRACER SR ASSISTANT ASSISTANT ENGRAVING ASSISTANT CASHIER SR OFFICER - COST ASSISTANT OFFICER - ACCOUNTS SR SUPERVISOR TRACER SR OFFICER - SYSTEMS ASSISTANT/TYPIST SHIFT INCHARGE SR ASSISTANT VICE PRESIDENT SR COLOUR CHEMIST SR OFFICER - SALES ASSTT SUPDT - MAINT SR ASSISTANT - LAB ASSISTANT ASSISTANT TECH ASSISTANT STAFF JR YD GODOWN JR ASSISTANT SR ASSISTANT OFFICER AUDIT TECH ASSISTANT JR ASSISTANT STF JR PROCESSING 2 ASSISTANT OFFICER - EXCISE JR ASSISTANT OFFICER - SALES SHIFT INCHARGE - PRODN DY SUPDT - S&W ASSISTANT ASSTT MANAGER - DESPATCH ASSISTANT ASSTT SUPDT - MAINT SR ASSISTANT SR SUPERVISOR STF JR WORSTED FOLDING ASSTT SUPDT - PRODN JR ASSISTANT - DATA ENTR OFFICER - IR ASSTT SUPDT - PRINTING SR ASSISTANT OFFICER - PURCHASE SHIFT INCHARGE - PRODN STF JR FOLDING ASSTT SUPDT - PRODN JR ASSISTANT SR ASSISTANT ASSISTANT SHIFT INCHARGE SR SUPERVISOR DY SUPDT - MAINT SR SUPERVISOR - PRODN (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) JOINING DATE GROSS EARNINGS 01-Nov-79 19-May-80 2 26 635 2 94 261 04-Apr-94 30 35 691 01-Sep-81 01-Aug-96 01-Aug-78 02-May-74 13-Oct-71 06-Nov-84 24-Feb-82 07-Dec-85 01-Jan-79 01-May-80 03-Feb-81 07-Jul-80 01-Apr-78 01-Feb-71 15-Nov-71 01-Sep-82 22-Aug-75 10-Oct-80 15-May-80 17-Jun-80 01-Sep-81 15-Sep-83 20-Apr-78 15-Jul-94 11-Jul-77 19-Jun-78 21-Oct-72 23-Apr-82 01-Jan-84 01-Dec-82 01-Mar-85 27-Jun-79 01-Apr-78 01-Nov-79 20-Apr-78 01-Jan-81 01-Jun-77 01-Oct-78 25-Jan-75 08-Nov-76 20-Dec-75 29-May-79 01-Jun-82 08-Nov-76 14-May-75 24-Jun-72 18-Jul-78 21-Oct-83 01-Oct-78 01-Dec-82 01-Oct-81 14-Nov-78 16-Mar-84 09-Aug-74 01-Mar-82 08-Nov-76 01-Jan-72 25-Aug-81 01-Jan-83 16-Jul-79 26-Oct-85 01-Nov-85 10-Nov-76 15-Apr-82 21-Aug-79 09-Dec-81 18-Mar-82 2 95 007 2 02 270 3 59 488 3 65 967 4 46 156 2 33 350 2 91 799 2 78 866 3 38 717 2 84 043 3 02 056 2 84 105 4 15 826 5 14 602 5 24 482 2 71 470 3 93 048 2 64 025 2 82 578 4 08 301 2 87 270 2 61 829 3 89 791 25 84 637 3 47 102 3 53 922 4 73 219 2 26 541 2 47 186 3 21 731 3 46 951 2 95 230 2 95 527 3 96 191 3 94 287 3 07 892 2 49 356 4 07 949 3 37 593 3 46 619 3 15 160 4 86 256 3 51 765 5 04 537 3 97 221 6 47 664 3 00 659 3 54 456 3 35 088 3 12 060 2 75 874 4 29 435 2 54 916 4 24 547 3 80 479 3 47 584 4 62 245 3 58 223 3 63 001 4 37 606 2 06 942 3 64 638 3 02 559 3 71 203 3 83 614 5 07 615 2 34 108 EXP PREVIOUS ORGANISATION PREVIOUS DESIGNATION 35 22 38 27 8 29 31 33 18 25 21 23 22 29 25 33 36 31 19 32 33 29 26 29 33 26 23 26 27 30 33 22 24 26 28 32 26 30 26 35 29 26 34 31 23 24 29 27 32 30 24 26 27 30 27 19 29 29 29 32 26 27 30 17 27 24 26 23 36 24 BHAKARIA BROTHERS FIRST EMPLOYMENT LARSEN & TOUBRO LTD FIRST EMPLOYMENT SHORROCK MILLS, NADIAD CALICO MILL PVT.LTD., CALICO MILLS FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT V V TEXTILE MUMBAI CORBORUNDUM UNIVERSAL LTD., FIRST EMPLOYMENT CASHIER - GENERAL MANAGER - TECHNICAL OFFICER TRACER TRACER - - - - - - DEPT. INCHARGE CLERK, - INFORMATION CENTRE GUJARAT STATE, RAJKOT CLERK CUM TYPST BHARAT BOBINS LTD., FIRST EMPLOYMENT SADAGURU SEVASANG CNC PVT.LTD,A'BAD AMBICA MILLS LTD., GOVERNMENT OF GUJARAT FIRST EMPLOYMENT ARBUDA MILLS, AHMEDABAD FIRST EMPLOYMENT ASST STORE KEEPER - CASHIER LAB CHEMIST TRACER JR IND. INSPECTOR - SUPERVISOR - RELIANCE PETROLEUM LIMITED VICE PRESIDENT FIRST EMPLOYMENT DARSHAN & CO. AHMEDABAD FIRST EMPLOYMENT - SALES MAN - MADHU PHARMA CHEMICAL INDUSTRIES, VATVA SUPERVISOR FIRST EMPLOYMENT FIRST EMPLOYMENT HIMSON SILK MILLS LTD , SURAT CALICO MILLS FIRST EMPLOYMENT JAY IND., SARASPUR B C PATEL & SONS FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT MEHTA CHUNILAL & CO., SANAND FIRST EMPLOYMENT FIRST EMPLOYMENT - - WORKER APPT. CLERK - ACCOUNTS CLERK CLERK - - - - CLERK - - MANJUSRI TEXTILE MILLS LTD., SHIFT SUPERVISOR FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT UNITED COMMERCIAL BANK CALICO MILLS LTD., FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT CHEMENGERS PVT. LTD., FIRST EMPLOYMENT FIRST EMPLOYMENT - - - CLERK SUPERVISOR - - - PRODUCTION SUPERVISOR - - VINAY PROCESSING, SURAT ASST. PRINTING MASTER FIRST EMPLOYMENT FIRST EMPLOYMENT ANIL SYNTHETIC LTD. FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT MAHENDRA MILLS FIRST EMPLOYMENT THE AMBICA MILL,A'BAD - - INVESTIGATOR - - - - - SUPERVISOR - SUPERVISOR NEW GUJARAT SYNTHETICS LTD., TRAINEE SUPERVISOR Salary of RIL.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Reliance Industries Limited 69 NAME AGE QUALIFICATION DESIGNATION JOINING DATE GROSS EARNINGS EXP PREVIOUS ORGANISATION PREVIOUS DESIGNATION (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) PRE SCIENCE SSC B COM DMMF WP B COM B SC DTC B COM DTC B SC B A B COM B SC DTC B SC B A SSC B SC DTC B COM B SC DTC NON MATRIC PRE COM CERT TX DN SSC B SC BTECH (Chem) NON MATRIC NON MATRIC B.TEXT B SC SSLC NON MATRIC SY B COM FY B A DIP APP ARTS B.Sc 9th Standard B COM DTC CERT CTN WVG BSC(TECH), DMIT SSC CERT SSC SSC SSLC B.Sc, B.Tech, MS WPMMT B A B.Sc, PGDM B COM 45 38 46 37 44 43 50 45 44 49 38 46 49 44 45 50 54 51 52 49 37 43 47 54 48 40 56 40 39 49 57 44 49 57 54 39 54 50 51 48 44 48 49 54 51 44 41 51 52 43 52 42 41 43 42 44 28 64 56 58 59 58 57 36 57 52 46 59 44 46 PATEL NATWARLAL N * PATEL NAYANA G * PATEL PARSHOTAMBHAI B * PATEL PRAVINKUMAR P * PATEL PRAVINKUMAR T * PATEL RAMESHCHANDRA D * PATEL RAMESHCHANDRA R * PATEL RAMNILBHAI J * PATEL RASIKBHAI N * PATEL RAVINDRAKUMAR M * PATEL ROHIT K * PATEL SAMBHUBHAI A * PATEL SOMABHAI R * PATEL SURESH A * PATEL SURESH H * PATEL SURESHCHANDRA M * PATEL VINODKUMAR C * PATEL VISHNUPRASAD K * PATEL VITHHALBHAI K * PATHAK DHIRAJLAL D * PATHAK KAMLESHKUMAR G * PATHAK MUKESHKUMAR H * PATHAK SANJEEV M * PATIL DEVIDAS D * PATIL HARESHIWAR J * PATIL VASANT KRISHNAJI PAUL ANAND KUMAR * PAVITHARAN CHAMBADATH G * PIPDAWALA YUNUS N * POOJARA HARSHADRAI G * POPATIA PRAVIN D * POTDAR HEMANT U * PRABHAKARAN M * PRAHLADSINGH D * PRAJAPATI GANPATBHAI B * PRAJAPATI KANAIYALAL S * PRAJAPATI RAMESHCHANDRA B * PRASAD P M S PRASAD RAJARAM M * PURI AJITKUMAR T * PUROHIT ASHOKKUMAR B * PUROHIT BHALCHANDRA D * RADHA RAJAN * RAGHAVENDRAN P RAGHVAN P * RAHEVAR GHANSHYAMSINH C * RAI KG * RAIYANI RAGHAVBHAI H * RAJARAM R RAJARAMAN J RAJBHAR SANARAST R * RAJEEV B SAHI * RAJKUMAR N PUGALIA RAJPUT KAILASHKUMAR B * RAJPUT KULDEEPSINGH D * RAJPUT MAHENDRASINGH U * RAJPUT VEDPRAKASHSINGH R * RAMAMURTHY K RAMAMURTHY M V RAMANA B S * RAMANJI ATAJI * RAMDHANI BUDHU * RAMTUJI PUNJAJI * RASIK N PATEL * RATANLAL CHATHRAM * RATHI NANDKUMAR N * RATHOD VIJAYKUMAR K * RAU SURYA VENKAT VELAMURI RAVAL HARESH K * RAVAL JAGDISHCHANDRA N * 70 ASSISTANT SR TRACER JR ASSISTANT DY SUPDT ASSISTANT SHIFT INCHARGE - PRODN SR ASSISTANT ASST SUPTD PRINTING SHIFT INCHARGE - PRODN SR OFFICER - INSURANCE ASSISTANT DY SUPDT - PRINTING ASSTT SUPDT - PROCESSING STAFF JR YD GODOWN ASSISTANT SUPDT - SAMPLE PTG SR ASSISTANT OFFICER LAB STAFF JR CONSTRUCTION JR ASSISTANT ASSISTANT SR ASSISTANT SR. VICE PRESIDENT SR TECH ASSISTANT COLOUR CHEMIST GENERAL MANAGER G M - WEAVING ASSISTANT/TYPIST ARTIST JR ASSISTANT OFFICER - ACCOUNTS SR ARTIST 01-Sep-86 02-Oct-81 09-Dec-82 22-Apr-85 15-Sep-78 19-Sep-78 01-Sep-78 01-Aug-83 11-Oct-83 02-Oct-77 01-Nov-85 29-Apr-82 12-Aug-75 24-May-76 23-Feb-74 02-Jun-73 01-Jun-73 12-May-78 04-Nov-80 01-Sep-86 11-Feb-85 06-May-81 3 25 762 2 91 589 2 23 357 4 30 130 3 21 798 4 20 448 3 42 864 3 88 224 3 46 322 4 40 589 2 28 028 4 37 692 4 92 511 3 59 910 3 43 905 5 05 991 3 86 460 3 56 742 2 30 813 2 94 109 2 35 409 3 00 551 04-Jun-01 30 67 496 01-Jan-83 01-Jan-78 3 93 880 4 04 167 10-Jul-92 26 65 142 11-Feb-97 01-Sep-81 14-Sep-81 21-Aug-78 01-Sep-76 01-Jul-81 2 71 565 3 24 555 3 24 266 2 29 156 2 96 845 3 27 433 ADDITIONAL VICE PRESIDENT 20-Apr-01 24 83 211 WORKER SR ASSISTANT SR SUPERVISOR - PRODN SUPERVISOR - PRODN PRESIDENT SR OFFICER - FOLDING DY SUPDT - P & M SR SUPERVISOR SR SUPERVISOR - PRODN STENOGRAPHER PRESIDENT MANAGER - QAC ASSISTANT ASSISTANT VICE PRESIDENT OFFICER - PURCHASE BE, MTECH, MBA SENIOR EXECUTIVE VICE PRESIDENT BE INTERMEDIATE B.Com, PGDM B.Com., F.C.A. B COM B A DIP ARTS B E (MECHANICAL) BSC, DBM BE (MECH.) B SC 7th Standard ILLITERATE 2nd Standard SSC 4th Standard B E (ELECTRICAL) FY B COM BSC, BTECH (CHEM.) B COM SSC ADDITIONAL VICE PRESIDENT SR COLOUR CHEMIST SR. VICE PRESIDENT ASSISTANT VICE PRESIDENT ASSISTANT SUPERVISOR - PRODN SR ARTIST ENGINEER - MAINT PRESIDENT SR. VICE PRESIDENT MANAGER - VELOUR PILE WORKER WORKER WORKER WORKER WORKER MANAGER - ELECT JR ASSISTANT PRESIDENT SR ASSISTANT JR ASSISTANT 21-Jan-67 12-Mar-70 18-Feb-92 01-Jan-77 3 76 564 3 82 948 2 10 329 2 75 128 29-Aug-81 46 96 570 01-Oct-81 17-May-77 01-Sep-80 28-Dec-72 25-Sep-79 6 15 765 5 24 641 3 77 781 3 67 862 2 60 696 23-Mar-94 54 67 242 20-Jul-95 01-Jan-87 2 05 894 2 83 143 16-Apr-01 21 83 458 10-Dec-76 3 64 809 15-Mar-00 36 94 696 13-Jun-94 31 87 950 01-Sep-72 3 75 155 01-Jun-01 27 71 267 06-Dec-97 26 36 294 23-Dec-83 16-Oct-81 01-Aug-78 01-Mar-95 2 44 047 2 82 100 4 55 404 2 39 981 03-May-93 46 32 718 31-Dec-90 27 89 718 27-Jul-87 01-Sep-66 18-Nov-72 11-Dec-72 01-Feb-92 08-Jan-72 16-Oct-93 01-Sep-80 3 09 967 3 59 461 2 87 783 2 83 975 2 00 883 3 05 107 3 35 579 2 28 571 01-Jun-97 42 60 980 10-Sep-81 12-Nov-75 3 12 694 2 59 636 Salary of RIL.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Reliance Industries Limited 25 20 26 17 24 23 30 25 24 29 18 26 29 25 27 30 34 31 32 29 17 23 26 34 28 18 36 20 20 29 37 24 29 38 34 19 34 26 31 28 24 28 29 30 31 24 20 31 28 22 32 21 20 23 22 24 8 44 34 38 39 38 37 16 37 32 26 34 24 26 FIRST EMPLOYMENT FIRST EMPLOYMENT NABROS TRANSPORT CO.,A'BAD GARDEN SILK MILS, SURAT FIRST EMPLOYMENT MAHESHWERY MILLS LTD., G P DAVE & SONS , JAMANAGAR - - CLERK ASST.PTG MASTER - INVESTIGATOR SHIFT SUPERVISOR KASHIRAM TEXTILE MILLS, NARODA, A'BAD SUPERVISOR B V M POLYESTER & CHEM.LTD., PLANT SUPERVISOR FIRST EMPLOYMENT FIRST EMPLOYMENT - - NEW COMMERCIAL MILLS LTD., A'BAD PRINTING SUPERVISOR BANK OF BARODA FIRST EMPLOYMENT FIRST EMPLOYMENT GUJARAT CO-OPERATIVE MARKETING CO. TRANSASIA TRANSFORMER, NARODA PATEL OIL INDUSTRIES FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT TEMP.CLERK - - JR CLERK CLERK CHEMIST - - - - DE-NOCIL CROP PROTECTION LTD SIX SIGMA EXPERT FIRST EMPLOYMENT YELORA SILK MILL GSFC LTD. FIBRE UNIT, KOSAMBA DIGVIJAY WOOLLEN MILLS FIRST EMPLOYMENT EXPO INGRAVING WORKS FIRST EMPLOYMENT CHIMANLAL VADILAL & CO. BHADHEJ FOUNDATION - COLOUR MIXRER DY. MANAGER - QC WVG. MASTER - ARTIST - ACCOUNTANT ARTIST RELIANCE PETROLEUM LIMITED ADDITIONAL VICE PRESIDENT BHINAR TEXTILE FIRST EMPLOYMENT NUTAN MILLS LTD AHMEDABAD MILLS LTD. OPERATOR - DYEING ASST INVESTIGATOR EAST AFRICAN POWER LIGHTING INSTRUMENT SUPERINTENDENT CULCUTTA SILK MILLS, CUTTER MODELLA WOOLLEN MILLS, AMRITSAR WEAVING SUPERVISOR FIRST EMPLOYMENT A ONE CO. THE METAL SAWS PRODUCTS, RELIANCE PETROLEUM LIMITED ASSOCIATE CHEMICAL, MUMBAI FIRST EMPLOYMENT RELIANCE PETROLEUM LIMITED SECURITY EQUPMENT MFG.LTD., GOOD YEAR INDIA LTD. - ACCOUNTS CLERK STENOGRAPHER PRESIDENT LAB ASST. - ASSISTANT VICE PRESIDENT ACCOUNTS ASST. DIR-COMMERCIAL RELIANCE PETROLEUM LIMITED ADDITIONAL VICE PRESIDENT FIRST EMPLOYMENT RELIANCE PETROLEUM LIMITED RELIANCE PETROLEUM LIMITED D CHATURVEDI & CO., A'BAD FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT CHEMPLAST SANMAR LTD. SELF-EMPLOYED MAHARASTRA FABRICS LTD FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT - SR. VICE PRESIDENT ASSISTANT VICE PRESIDENT AUDIT CLERK - - - EXECUTIVE DIRECTOR - DYEING & FINISHING MANAGER - - - - - NEW SWADESHI MILLS,A'BAD ASST.ENGINEER ORIENT MILLS SPEED TRANSPORT SERVICE,A'B CLERK N O C I L MANUBHAI PARIKH & CO. R.T.I. , A'BAD EXECUTIVE DIRECTOR TYPIST WORKER NAME AGE QUALIFICATION DESIGNATION (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) JOINING DATE GROSS EARNINGS 27-Mar-73 16-Mar-79 01-Aug-78 01-Dec-75 18-Jul-69 18-Aug-82 01-Dec-79 12-May-77 3 53 569 2 92 206 3 48 222 3 66 079 3 44 450 2 52 652 2 73 838 4 77 845 02-Sep-00 28 66 265 22-Feb-67 02-Jun-80 4 97 476 3 10 636 02-Apr-96 25 88 862 21-Jul-77 3 82 636 16-Mar-75 24 53 594 15-Dec-76 08-Jul-77 18-Feb-02 4 59 164 2 83 164 2 76 356 01-Dec-85 56 57 304 09-Feb-80 12-May-77 3 81 782 4 10 914 19-May-95 31 63 974 01-Apr-72 01-Aug-83 6 84 303 4 67 544 01-Feb-81 48 25 306 01-Jan-90 71 05 948 22-Apr-00 49 76 088 21-Aug-93 37 52 890 01-Jul-73 01-Jan-84 01-Apr-77 03-Mar-80 05-Jul-77 15-Sep-74 14-Jul-81 02-Feb-81 01-Jul-82 21-Mar-91 30-May-78 01-Aug-78 01-Aug-79 01-Mar-74 10-Oct-75 01-Sep-80 6 52 199 3 07 323 3 96 635 2 08 675 3 25 999 4 03 397 2 82 686 2 15 043 3 91 750 2 28 980 5 48 128 3 70 562 2 94 025 3 96 017 3 46 995 2 48 384 27-Aug-85 52 50 051 10-Jan-80 24-Dec-76 19-Mar-84 01-Feb-79 17-May-77 15-Jan-81 14-Oct-78 3 51 411 3 89 845 2 45 927 2 93 029 3 51 294 2 95 021 2 95 089 SY B A B A DIP ARTS B COM 4th standard B COM SSLC HSC B.Sc Engg SSC SSLC B.COM, ACA B SC DTC INTER ARTS B COM SSC B.E., PGDM BSC(TEXT) B SC NON MATRIC BE SSC SY B COM B TEXT B.COM, LLB(G), FCA, ACS, DTM, DMA BTECH (CHEM.) B.Com, ACA, FCS SSC SSC NON MATRIC B COM SSC INTER COM B E (ELECTRICAL) B COM B SC DTC DTM DTC DRG EXAM B A SSC B COM B COM BE(MECH.), MMS M COM B SC B ED B COM CERT IBM B COM SSC B COM B COM SR ASSISTANT SR ASSISTANT SR TRACER OFFICER - COSTING WORKER JR ASSISTANT/TYPIST STENO-TYPIST OFFICER - FOLDING SR. VICE PRESIDENT SR OFFICER - FOLDING ASSISTANT/TYPIST VICE PRESIDENT SR COLOUR CHEMIST V P - MKTG ASSTT MANAGER - ACCOUNTS ASSISTANT SR. VICE PRESIDENT PRESIDENT SR OFFICER - OPERATIONS SHIFT INCHARGE - PRODN ADDITIONAL VICE PRESIDENT SR MANAGER - SALES SHIFT INCHARGE - MAINT PRESIDENT - TECHNICAL SR. EXECUTIVE VICE PRESIDENT SR. VICE PRESIDENT SR. VICE PRESIDENT ASSTT SUPDT - P & M ASSISTANT SR SUPERVISOR ASSISTANT STF JR DM DIVISION OFFICER - YARN GODN SR OFFICER - SAFETY ASSISTANT SHIFT INCHARGE - PRODN SR SUPTD PRODN DY SUPDT - PROCESSING SR TRACER SR ASSISTANT OFFICER - G.F. SR ASSISTANT ASSISTANT/TYPIST SR. VICE PRESIDENT OFFICER - SALES ASSTT MANAGER - SAFETY ASSISTANT GODOWN KEEPER OFFICER - FOLDING OFFICER - AUDIT ASSISTANT/TYPIST BE(CHEM), ICWA GENERAL MANAGER(TECHNICAL) CTS 29-Apr-89 26 03 145 B TEXT DTC B COM NON MATRIC B SC DTC NON MATRIC SSC B COM B COM LLB B COM M COM SSC B COM B A SY B COM CRT IBM B COM 9th Standard ASSTT SUPDT - PRODN ASSTT SUPDT - PROCESSING SR ASSISTANT JR ASSISTANT ASSTT SUPDT - PRINTING SR ASSISTANT ASSISTANT ASSISTANT ASSISTANT ASSISTANT OFFICER - ACCOUNTS OFFICER - PACKING SR OFFICER - PF ASSISTANT ASSISTANT ASSISTANT WORKER 01-Jun-87 25-Dec-75 12-Apr-79 01-Oct-81 02-Sep-78 01-Apr-83 04-May-79 18-Dec-78 15-Jan-79 12-Apr-79 01-Jun-75 01-Apr-78 16-May-74 01-Jun-82 06-May-85 17-Jun-82 01-Sep-82 3 16 037 4 59 716 3 04 806 2 67 535 4 09 923 4 28 467 2 83 000 3 04 880 3 03 934 3 07 335 4 42 933 4 09 018 4 75 504 2 49 305 3 19 601 2 67 939 2 00 363 EXP PREVIOUS ORGANISATION PREVIOUS DESIGNATION 28 28 24 27 36 22 24 29 31 37 21 31 24 47 31 29 34 41 33 38 27 36 28 43 36 30 26 32 20 31 34 24 27 36 31 28 15 35 23 26 31 28 25 16 25 30 20 24 24 35 31 20 18 30 26 31 35 30 22 24 26 25 27 27 28 27 21 25 38 FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT V K STEEL IND. FIRST EMPLOYMENT FIRST EMPLOYMENT - - - - - TYPIST / CLERK - - RELIANCE PETROLEUM LIMITED SR. VICE PRESIDENT DIRECTORATE OF INFORMATION & PUBLICATION CLERK PARADISE TEXTILE A.P. PAPER MILLS FIRST EMPLOYMENT FIRST EMPLOYMENT TYPIST VICE PRESIDENT - - LAXMICHAND BHAGAJI LTD SR.ACCOUNTANT THE SUBRIGISTRAR OFFICER,BARODA CLERK FINOLEX PLASTRO PLASSON LTD. CHIEF EXECUTIVE OFFICER IEL LIMITED CHIEF EXECUTIVE OPERATIONS RESEARCH GROUP.,BARODA ASHOK TEXTILE INDS. LTD., NEPAL CLERK KNITTER RELIANCE PETROLEUM LIMITED ADDITIONAL VICE PRESIDENT PREMSONS,BOMBAY FIRST EMPLOYMENT SALESMAN - TEXTILE PROCESSING CORPORATION I LTD. MANAGING DIRECTOR HINDUSTAN LEVER LTD. GENERAL MANAGER HALDIA PETROCHEMICALS LTD. RELIANCE PETROLEUM LIMITED EXECUTIVE VICE PRESIDENT SR. VICE PRESIDENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT - - - MACHINE PRODUCTS (P) LTD CLERK FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT JULON FABRICS LTD., THE MONOGRAM MILLS LTD., BANGAL TEA & FABRICS LTD, SHORROCK MILL,NADIAD FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT A'BAD EAGLE ENT.PVT. LTD. FIRST EMPLOYMENT STANDARD WIRE PRODUCTS STATE BANK OF SAURASHTRA FIRST EMPLOYMENT - - - PUBLIC RELATION OFFICER INVESTIGATOR SPINNING SUPERVISOR JR ASST - - - A/C CLERK - BUSINESS EXECUTIVE CLERK CUM GODOWN KEEPER - GUJARAT STATE KHADI GRAM UDYOG BOARD, JR CLERK FIRST EMPLOYMENT FIRST EMPLOYMENT - - ASHWIN HOSIARY INDUSTRIES CLERK / SALESMAN PLYWOOD & TIMBER PRODUCTS AGENCY CLERK RELIANCE PETROCHEMICALS LIMITED SHIFT SUPERINTENDENT MIHIR TEXTILE MILL LTD. SUBH SAGAR COTTON MILLS LTD TECHNICAL TRAINEE SUPERVISOR CETRAL CINEMA, GANDHI ROAD, AHMEDABAD OFFICE ASSISTANT FIRST EMPLOYMENT SARNAGPUR MILLS, FIRST EMPLOYMENT FIRST EMPLOYMENT - SUPERVISOR PTG - - KAILASHCHANDRA HIRALAL ACCOUNTANT FIRDOS & S CO. FIRST EMPLOYMENT STATE BANK OF BIKANER FIRST EMPLOYMENT RELIANCE CREDIT SOC. BANURAM DALAL FIRST EMPLOYMENT CLERK - CLERK - CLERK CLERK - BHARAT CO.OP.REFINERY SOCIETY LTD., ACCOUNTANT / CLERK N MANSUKHRAM & CO. STORE CLERK RAVAL MAHENDRA R * RAVAL RAJESH V * RAVAL RAMESHCHANDRA G * RAWAL RAJNIKANT D * REMEDOZ THOMAS * RUPARELIA ASHWIN N * S GEETHA * SAHOO VASANTKUMAR H * SAINI S S SAIYAD ABDULLA M * SAJEEV JANARDHANAN * SANCHETI J M SANGHAVI HITENDRAKUMAR D * SANGHVI NATWARLAL M * SANGHVI PRAMODKUMAR D * SANT PRAFULCHANDRA Y * SANZGIRI SUBHAS * SAPRA S P SARAIYA BHUPESH R * SARKAR BARUNCHANDRA DEY * SATISH CHANDRA SAVLA VERSHI K * SEN BAJRANGLAL R * SENGUPTA RANJIT KUMAR * SETH K K SETHI PRABHAKAR SETHURAMAN K SEVAK ARVIND M * SHAH AJAY R * SHAH ARVIND S * SHAH ARVINDKUMAR M * SHAH BHARAT H * SHAH BHARAT J * SHAH BIPIN G * SHAH BIPINKUMAR C * SHAH CHANDRKANT N * SHAH DHARMENDRA M * SHAH DILIPBHAI N * SHAH DILIPKUMAR T * SHAH DILIPKUMAR V * SHAH DINUBHAI M * SHAH DIPAKKUMAR P * SHAH GOPAL G * SHAH HARISH SHAH HARISHKUMAR N * SHAH HARNISH B * SHAH JAYESH K * SHAH JAYESHKUMAR M * SHAH JAYESHKUMAR S * SHAH JETENDRA V * SHAH JITENDRA A * SHAH JOY M SHAH KALPESH R * SHAH KAUSHIK H * SHAH KIRIT B * SHAH KIRITBHAI M * SHAH KIRITKUMAR C * SHAH KUMUDCHAND B * SHAH LALITCHANDRA V * SHAH LALITKUMAR P * SHAH LAXMIKANT J * SHAH MAYANK J * SHAH MUKESHKUMAR M * SHAH NARENDRA C * SHAH NARENDRAKUMAR C * SHAH NARENDRAKUMAR K * SHAH NIMESH N * SHAH NITINKUMAR H * SHAH PRAFUL C * 48 48 44 47 56 42 44 49 54 57 40 55 44 67 51 49 57 65 53 58 47 56 48 69 57 52 51 52 40 51 54 42 47 56 51 48 35 55 41 46 51 48 45 41 45 50 40 44 44 55 51 42 38 50 46 51 55 50 40 44 46 45 47 47 48 47 41 45 58 Salary of RIL.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Reliance Industries Limited 71 NAME AGE QUALIFICATION DESIGNATION JOINING DATE GROSS EARNINGS EXP PREVIOUS ORGANISATION PREVIOUS DESIGNATION (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 53 51 44 41 45 46 48 42 42 47 45 45 43 40 49 54 51 41 44 47 43 54 43 40 51 55 42 46 62 48 45 52 49 45 53 50 47 47 53 62 58 41 52 55 55 56 42 52 47 50 48 45 49 47 65 44 51 44 47 46 52 50 46 46 45 48 55 52 42 42 SHAH PRAFULCHANDRA V * SHAH PRAFULKUMAR M * SHAH PRAMESHKUMAR T * SHAH PRIYAKANT R * SHAH RAJESH R * SHAH RAJNIKANT L * SHAH RAMESHCHANDRA P * SHAH RAMLAL B * SHAH RASHESH V * SHAH SATISHKUMAR R * SHAH SHAILESH J * SHAH SHAILESH L * SHAH SHAILESH N * SHAH SHARAD S * SHAH SHASHIKANT M * SHAH SUREDRAKUMAR G * SHAH UPENDRAKUMAR G * SHAH VIKRAMKUMAR R * SHAH VINOD B * SHAH VIPUL R * SHAH YOGESH P * SHAIKH MUKHTARAHMED A * SHARMA ASHOKKUMAR C * SHARMA DHARMENDRA J * SHARMA HARINATH D * SHARMA JAGDISHPRASAD H * SHARMA LOKESH L * SHARMA PRADEEPKUMAR S * SHARMA R P SHARMA RAJENDRA R * SHARMA SHYAMMORARI C * SHARMA VIRENDRAKUMAR M * SHASTRI JAYRAJ S * SHETH SHAILESH S * SHRIKRISHNA H * SHRISHI SURESH N * SHUKLA JANAK N * SHUKLA KISHOR D * SIDDHPURWALA YASIN Y * SINGH M M SINGH PARASNATH S * SINGH R K * SINGH RAJENDRABAHADUR H * SINGH SUDHIR SINHAL MURARILAL RAMACHANDRA SITARAM DUDHNATH * SOLANKI PIRSING P * SOMNI SUDHAKAR S * SONI ASHOK R * SONI DINESH T * SONI DIPAK R * SONI JITENDRA A * SONI KIRITKUMAR N * SONI RASIKLAL R * SUBRAMANIAM M SUBRAMANIAN K V SUDHAKARAN SEKHAR * SUNIL MISHRA SUTHAR BHAGVANDAS B * SUTHAR HARENDRAKUMAR C * SWADAS INDRVADAN T * T V NARAYANAN * TAILOR JAGDISH N * TALATI ANIL J * THACKER J H THAKKAR DHIREN C * THAKKAR PRABHUDAS M * THAKKAR VINDOCHANDRA P * THAKKER BHARAT P * THAKKER KIRANKUMAR C * 72 B SC NON MATRIC SSC B COM ASSISTANT ASSISTANT SR ASSISTANT SR STORE KEEPER B COM CERT IBM SR DATA ENTRY OPERATOR B COM B COM M SC PRE SCIENCE M SC B COM B COM B COM B SC DIP ARTS B A B COM SSC B COM M COM DTPL B COM SSC M COM B COM NON MATRIC SSC B SC OFFICER - STORES OFFICER - EXCISE OFFICER - TECH OFFICER - OPTRATIONS ASSTT SUPDT - PROCESSING ASSISTANT SR ASSISTANT ASSISTANT SHIFT INCHARGE - PRODN SR ARTIST SR ASSISTANT OFFICER - AUDIT STAFF JR DM DIVISION SR SUPERVISOR - PRODN SR STORES ASSISTANT JR ASSISTANT SR ARTIST ASSISTANT SR ASSISTANT SUPERVISOR - PRODN SUPERVISOR - PRODN SR SUPERVISOR B COM DMSM OFFICER PROD.CO ORDN PRESIDENT SR ASSISTANT ASSISTANT SR ASSISTANT - LAB ASSISTANT SR ASSISTANT SR SUPERVISOR - MAINT SR ARTIST JR ASSISTANT ASSISTANT SR ARTIST PRESIDENT SR OFFICER - FOLDING SR.MANAGER SHIFT INCHARGE - PRODN VICE PRESIDENT(POY) SR. VICE PRESIDENT WORKER TECH ASSISTANT SHIFT INCHARGE - PRODN DY SUPDT - MAINT SR CHEMIST SR ASSISTANT SR ASSISTANT SR ASSISTANT JR ASSISTANT SR. VICE PRESIDENT SENIOR EXECUTIVE VICE PRESIDENT SUPERVISOR ASSISTANT VICE PRESIDENT SR TRACER ASSTT SUPDT OFFICER - DESPATCH STENO-SECRETARY SR SUPERVISOR JR ASSISTANT M.SC SSC HSC HSC B COM B COM LLB ITI HSC NON MATRIC B COM SSC NON MATRIC BSC (ENGG.) CHEM. SSC M.TECH.,PGDM SSC B TECH(CHEM) BE (MECH.) ILLITERATE NON MATRIC DTT DME SSC B COM B COM LLB FY B COM SSC B.E.(CIVIL) BTECH,CFA,MBA NON MATRIC B.Tech SSC B SC DTC B COM SSLC B A SY B COM BTECH, MBA NON MATRIC FY B COM B COM B SC NON MATRIC Salary of RIL.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) 28-Nov-77 01-Apr-78 08-Jul-78 01-Jun-82 06-Jan-81 09-Feb-76 15-Jan-77 18-Aug-82 01-Jan-81 05-Mar-84 08-Feb-80 05-Jun-79 10-Oct-80 15-Dec-81 21-Nov-77 02-May-77 10-Dec-72 13-Jun-78 27-Jun-78 22-Jun-82 15-Feb-82 02-May-74 01-Oct-81 19-Jan-82 01-Nov-86 01-Jul-86 23-Dec-81 08-Sep-77 2 80 509 3 59 815 3 31 420 3 06 805 3 51 246 3 97 066 3 77 123 3 53 270 3 98 172 3 01 028 2 68 077 3 01 065 3 00 856 3 36 523 3 58 705 2 79 855 4 34 180 3 01 392 3 58 147 2 87 364 2 53 076 4 40 052 2 97 260 3 05 339 3 69 764 3 67 157 2 65 814 3 48 798 06-Nov-00 42 19 431 01-Dec-82 09-Jul-79 03-Sep-83 22-Nov-74 23-Jun-80 01-Jan-85 01-Aug-77 02-Apr-79 01-Jan-82 14-Sep-81 3 26 220 2 83 321 2 42 102 3 31 558 3 51 407 4 17 462 3 68 788 2 30 310 3 16 149 3 02 175 13-Aug-90 42 79 670 01-Oct-81 28-Feb-02 01-Apr-92 4 17 974 2 24 722 3 62 310 09-Jul-96 24 37 473 16-Nov-81 45 77 643 16-Nov-68 01-Mar-85 19-Jul-77 06-Aug-79 11-Jul-77 01-Dec-75 06-Aug-81 18-Aug-73 01-Mar-74 3 44 689 3 00 817 3 61 046 4 26 643 3 69 497 4 04 779 3 13 759 3 61 541 2 91 138 18-Apr-94 42 11 467 18-Apr-94 29 22 621 01-Mar-89 4 07 045 14-Dec-95 28 44 745 04-Apr-77 11-Jun-83 11-Jul-73 26-Apr-76 16-May-80 01-Aug-83 3 59 362 3 91 266 4 28 805 3 84 141 3 13 749 2 95 183 33 31 24 21 25 26 28 22 22 27 25 25 23 20 29 34 31 23 24 27 23 34 23 20 31 35 22 26 39 28 25 32 29 25 33 30 27 27 33 37 38 18 32 32 30 36 22 32 27 30 28 25 29 27 44 21 31 23 27 26 32 30 26 26 19 28 35 32 22 22 FIRST EMPLOYMENT FIRST EMPLOYMENT MEHTA BROTHERS, CALCUTTA KALUPUR SAHAKARI LTD., ASHISH TRADERS, ABAD. FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT - - CLERK CLERK / CASHIRE CLERK - - - - ANIL SYNTHETICS LTD,RAKHIAL,A'BAD SUPERVISOR SHAILESH TEXTILE CORPORATION FIRST EMPLOYMENT GUJARAT TRANSPORT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT CLERK - APRENTICE CLERK - - - SECURITY EQUIPMENT MFG CO.LTD., STORE KEEPER FIRST EMPLOYMENT FIRST EMPLOYMENT POWER BUILED LTD., FIRST EMPLOYMENT - - ACCOUNT CLERK - SIMPLEX RAYON SILK PROCESS HOUSE ARTIST / TRACER FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT PETRONET LNG LTD. FIRST EMPLOYMENT FIRST EMPLOYMENT S K SHARMA FIRST EMPLOYMENT AMBICA PVT.LTD., FIRST EMPLOYMENT CALICO MILLS, A'BAD FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT - - - - - - DIRECTOR - - INSPECTOR TRA - TIME KEEPER - TRACER - - - INDIAN PETROCHEMICAL CORPN.LTD. GENERAL MANAGER (OPERATIONS) FIRST EMPLOYMENT ONGC FIRST EMPLOYMENT PARASARAMPURIA IND. LTD JCT MILLS LTD. I C GANDHI FIRST EMPLOYMENT GWALIOR RAYON SILK MFG. CO. LTD. ROHIT PAPER MILLS LTD., FIRST EMPLOYMENT JBA PRINTING PVT. LTD. JYOT CO., KALOL FIRST EMPLOYMENT FIRST EMPLOYMENT - - - VICE PRESIDENT (WORKS) SR. MECHANICAL ENGINEER PRINTER - SUPERVISOR SHIFT ASST - STORE ACCOUNT CLERK ACCOUNT CLERK - - L&T [ECC CONSTRUCTION] GENERAL MANAGER-OVERSEAS OPERA INDIAN PETROCHEMICALS CORPN LTD. EXEC. ASST. TO CHAIRMAN FIRST EMPLOYMENT - RELIANCE PETROLEUM LIMITED ASSISTANT VICE PRESIDENT GUJAR PVT.LTD., BHARAT VIJAY MILLS STUDIO SCENELIGHT TRUE MACHINE OUT CO. RAJHANS TEXTILE PRINTERS PWD, NADIAD CONSULTANT NEELKAMAL ENTERPRISES THE PRAGATI CO-OP.BANK LTD.,A'BAD JAYANTILAL P THAKKAR KRISHNA INDUSTRIES FIRST EMPLOYMENT TRACER SUPERVISOR SALES MAN / CLERK STENO TYPIST CLERK CLERK - PARTNER CLERK ASSISTANT CHEMIST - SR. VICE PRESIDENT (TECHNOLOGY) 01-Oct-90 1 30 18 622 SR TRACER JR OFFICER - OPERATIONS JR OFFICER - CIVIL MAINT. SR ASSISTANT - COLOUR COM SR TRACER 01-Jan-73 20-Jan-77 21-Mar-75 01-May-82 20-Aug-79 4 51 882 3 28 279 4 11 581 2 81 723 3 77 320 Reliance Industries Limited SENIOR EXECUTIVE VICE PRESIDENT 15-Jun-84 43 87 732 NAME AGE QUALIFICATION DESIGNATION THAKOR ABHESING A * THAKOR RAMNJI R * THAKORE MALAJI B * THAKORE PIYUSHKUMAR V * THORAT DINKAR A * TIMBADIA BABUBHAI B * TRIPATHI HARISH N * TRIVEDI CHETAN D * TRIVEDI HARSHUL D * TRIVEDI PRADIP M * TRIVEDI RAKESH T * UDESHI R D UDESINGH J SOLANKI * UPADHYAY DEEPAKKUMAR A * UPADHYAY HASMUKH R * UPADHYAY SHAKTI N * VADALIA LAKHALAL G * VADHER LILADHAR P * VADHER VIJAYKUMAR M * VAGADIA K K VAGHELA PRAVIN N * VAGHELA PRAVINKUMAR B * VAJARIA HARISHKUMAR R * VAKIL S M VALAND DASHRATHBHAI A * VALAND SAMBHUBHAI R * VALANI BALDEVBHAI L * VALECHA N K VANKANI KANAIYALAL M * VARMA AJEET VARMA VIJAYKUMAR P * VENKATESHWARA RAO VADUGU * VIJAYKUMAR P * VYAS ARVIND C * VYAS ASHWIN C * VYAS BIPIN J * VYAS GAUTAM J * VYAS LALIT C * VYAS PUSHKARRAY M * VYAS SOBHANA S * WAGH J V * YADAV KALURAM R * YADAV RAMKEVL B * YADAV SURYABALI A * YADWADKAR S R YESHWANT RAO * ZALA MAHAVIRSINH D * ZALA RANJITSINH J * ZINJUWADIA SHANTILAL M * NOTES : 46 48 51 51 40 43 48 44 40 50 33 51 58 44 45 52 49 46 45 64 41 40 46 53 52 48 51 50 57 51 43 45 42 49 51 53 47 53 43 45 59 47 45 54 56 53 41 44 52 B A LLB SSC B A B COM NON MATRIC DTM B COM B COM LLB B COM LLB M SC DTC B E (MECHANICAL) B TEXT B.COM, ICWA (I) 4th standard B A FY B A OFFICER - EXCISE SR ASSISTANT SR ASSISTANT ASSISTANT TRACER SHIFT INCHARGE - MAINT SR ASSISTANT JR OFFICER - ACCOUNTS SR SUPERVISOR DY SUPTD MAINTENANCE ASSTT SUPDT - PRODN WORKER ASSISTANT ASISTANT Ph.D (Reproductive Biology), DSC RESEARCH DIRECTOR SSC B COM M COM ASSISTANT SR ASSISTANT SR SUPERVISOR - PRODN BA, BCOM, LLB VICE PRESIDENT B SC B COM B COM BE (CHEM.) SSC NON MATRIC SSC BE(CHEM), M TECH B SC M.SC(ELECTRONICS), CAIIB, CERT IN CORP FINANCE B SC B.Com, MBA B.Sc, M.Sc, MFM B COM SSC B A DIP COM ARTS B SC B COM LLB B A BE, MTECH, DMB INTERMEDIATE SSC NON MATRIC SHIFT INCHARGE - PRODN JR SUPERVISOR OFFICER - FOLDING GROUP VICE PRESIDENT SR ASSISTANT - LAB SR COLOUR CHEMIST SR ASSISTANT VICE PRESIDENT DY SUPDT - PROCESSING SR VICE PRESIDENT SHIFT INCHARGE - PRODN ADDITIONAL VICE PRESIDENT GENERAL MANAGER ASSISTANT SR OFFICER - FOLDING SR ASSISTANT SR ARTIST MANAGER - PACKING ASSISTANT JR OFFICER - AUDIT LOGISTICS ADVISOR COLOUR CHEMIST COLOUR CHEMIST COLOUR CHEMIST BTECH (CHEM.), MS (CHEM.) SR. VICE PRESIDENT B.Sc., CAIIB DIP ARTS DEE B SC ASSISTANT VICE PRESIDENT TECH ASSISTANT SHIFT INCHARGE - MAINT OFFICER - PRODN.CO ORDN. (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) JOINING DATE GROSS EARNINGS 20-Nov-79 08-Jan-72 01-Mar-74 27-Jan-79 01-May-80 01-Oct-81 01-Aug-81 19-Mar-81 15-Oct-85 01-Jul-78 01-Apr-91 3 29 133 4 02 484 3 83 497 2 89 971 2 59 993 3 71 977 2 72 831 3 09 315 2 80 041 4 72 490 2 94 159 11-Jul-78 01-Nov-79 02-Jul-77 2 47 909 2 69 650 3 02 906 15-Jun-01 20 70 302 01-Jan-82 16-Jun-78 05-Jun-82 3 25 298 3 36 175 2 99 462 24-Aug-95 26 50 214 09-Sep-82 13-Oct-81 26-Sep-77 3 49 493 2 41 448 4 37 833 06-May-86 47 91 608 04-Jun-77 11-Jul-77 03-Apr-78 4 04 694 3 57 815 2 97 181 01-Jul-89 34 30 555 12-Sep-66 7 70 725 20-Aug-93 33 52 687 29-Mar-82 3 37 864 09-May-01 25 45 568 04-Feb-98 10 67 300 15-Jan-77 01-May-68 17-May-76 01-Nov-80 01-May-69 16-Oct-93 28-Aug-78 3 60 657 5 13 947 3 58 910 3 83 007 4 80 841 3 20 339 3 50 090 02-Jan-96 17 04 237 01-Jan-83 01-Jan-78 01-Jan-78 03-Oct-96 19-Oct-01 01-Oct-83 01-Jun-85 15-May-73 4 09 071 3 37 245 3 90 847 53 45 021 26 56 829 2 76 112 3 91 470 4 11 562 EXP PREVIOUS ORGANISATION PREVIOUS DESIGNATION 26 29 31 31 21 23 28 24 20 30 13 30 38 24 25 30 29 26 25 38 21 20 26 28 32 28 31 25 37 27 23 23 21 29 33 33 27 33 23 25 37 27 25 34 31 34 21 24 32 A'BAD UNION DYEING MILLS FIRST EMPLOYMENT FIRST EMPLOYMENT AJIT INDIA PVT.LTD,A'BAD FIRST EMPLOYMENT GUJRAT COLD STORAGE SHRI ARBHUDA MILLS J & K INDUSTRIES,A'BAD ROHIT MILLS LTD. AHMEDABAD NEW SORAK MILLS, NADIAD ROYAL BLENDS LTD. GLEITLAGER (INDIA) LTD. EAGLE INDUSTRIES JYOTI AGENCY FIRST EMPLOYMENT CLERK - - CLERK - CLERK CLERK CLERK SUPERVISOR SUPERVISOR SUPERVISOR PROJECT IN CHARGE WELDER SALESMAN - NATIONAL INSITITUTE OF IMMUNOLOGY CHIEF-IMMUNOPHARMACOLOGY LAB. FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT - - - RELIANCE PETROLEUM LIMITED VICE PRESIDENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT - - - INDIAN PETROCHEMICAL CORPN.LTD. SR. PROJECT ENGINEER (CHEM.) FIRST EMPLOYMENT FIRST EMPLOYMENT MANSUKHRAM GROUP - - CLERK RELIANCE PETROCHEMICALS LIMITED PRODUCTION MANAGER FIRST EMPLOYMENT BANK OF INDIA - VICE PRESIDENT FIRST EMPLOYMENT RELIANCE PETROLEUM LIMITED RELIANCE PETROLEUM LIMITED THE UNITED CO-OP BANK LTD.,A'BAD FIRST EMPLOYMENT POLSAN LTD.,A'BAD MODERN TEXTILE FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT - ADDITIONAL VICE PRESIDENT GENERAL MANAGER CLERK - TYPIST CUM CLERK DESIGNER - - - JAI CORPORATION LIMITED PRESIDENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT FINOLEX INDUSTRIES - - - PRESIDENT RELIANCE PETROLEUM LIMITED ASSISTANT VICE PRESIDENT FIRST EMPLOYMENT FIRST EMPLOYMENT FIRST EMPLOYMENT - - - 1. 2. 3. 4. 5. 6. All appointments are non -contractual and terminable by Notice on either side, except in the case of Managing Directors and Executive Directors. Remuneration includes salary, bonus, various allowances, contribution to provident and superannuation funds, taxable value of perquisites and gratuity paid but excluding gratuity provision. None of the employees mentioned above is related to any directors of the Company except Shri Mukesh D. Ambani and Shri Anil D. Ambani, who are related to each other. In addition Shri Nikhil R. Meswani and Shri Hital R. Meswani, directors, are related to each other. Shri Dhirubhai H. Ambani who passed away on 6th July, 2002 was related to Shri Ramniklal H. Ambani, Shri Mukesh D. Ambani and Shri Anil D. Ambani, directors of the Company. Information about qualification and last employement is based on particulars furnished by the concerned employee. Date of commencement of employment, in the case of employees of Reliance Petroleum Limited (RPL) has been reckoned as the date on which, those persons became employees of RPL as per the scheme of amalgamation. * Refers to employment for part of the year. Mumbai Dated : 30th September, 2002 For and on behalf of the Board Mukesh D. Ambani Chairman and Managing Director Salary of RIL.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Reliance Industries Limited 73 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Auditors’ Report To the Members, RELIANCE INDUSTRIES LIMITED We have audited the attached Balance Sheet of RELIANCE INDUSTRIES LIMITED as at 31st March, 2002 and the Profit and Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. 1. We conducted our audit in accordance with Auditing Standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 2. As required by the Manufacturing and Other Companies (Auditors' Report) Order, 1988 the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order. issued by 3. Further to our comments in the Annexure referred to in paragraph 2 above, we report that: a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; For Chaturvedi & Shah Chartered Accountants D. Chaturvedi Partner Mumbai Dated: 30th September, 2002 b) In our opinion, proper books of account, as required by law, have been kept by the Company, so far as appears from our examination of such books; e) d) c) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account; In our opinion the Balance Sheet and the Profit and Loss Account dealt with by this report comply with the mandatory Accounting Standards referred in sub-section (3C) of section 211 of the Companies Act, 1956; In our opinion, and based on information and explanations given to us, none of the directors are from being disqualified as on 31st March, 2002 appointed as directors in terms of clause (g) of sub- section (1) of section 274 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 Significant Accounting Policies and other notes thereon give the information required by the Companies Act, 1956, in the manner so required and present a true and fair view in conformity with the accounting principles generally accepted in India: (i) in so far as it relates to Balance Sheet, of the state of affairs of the Company as at 31st March, 2002 and f) (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 & 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. According to the information and explanations given to us, the fixed assets have been physically verified by the management during the year in a phased periodical manner which in our opinion is reasonable, having regard to the size of the Company and nature of No material discrepancies were noticed on such verification. the assets. 2. None of the fixed assets have been revalued during the year. 3. As explained to us, the stock of stores, spare parts, raw materials and finished goods have been physically verified by the management at 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. information and In our opinion and according 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 the business. to us, the to 4. 5. As explained to us, there were no material discrepancies noticed on physical verification of the stocks of raw materials, stores and spares and finished goods, having regard to the size of the operations of the Company. 8. 7. 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. In respect of loans from companies listed in the register maintained under Section 301 of the Companies Act, 1956, and from Companies under the same management as defined under sub-section (1B) of Section 370 of the Companies Act, 1956, the rate of interest and other terms and conditions are not prima facie prejudicial to the interests of the company. In respect of loans given to companies listed in the register maintained under Section 301 and/or to the companies under the same management as defined under sub-section (1B) of Section 370 of the Companies Act, 1956, the rate of interest, where applicable, and other terms and conditions are not, prima facie, prejudicial to the interests of the company. The above to includes subsidiaries and advances 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 outstanding loans and advances in the nature interest loans free 9. 74 Reliance Industries Limited RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 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 and are also generally regular in the payment of interest, where applicable. 10. 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 for the purchase of stores, raw materials including components, plant and machinery, equipment and other assets and for the sale of goods. the to to 11. In our opinion and according the information and explanations given to us there are no transactions of purchases of goods and materials and of sale of goods, materials and services made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 and aggregating during the year to Rs.50,000 (Rupees Fifty Thousand only) or more in respect of any party. 12. According to the information and explanations given to us, the company has a regular procedure for the determination of unserviceable or damaged stores, raw materials and finished goods. Adequate provision has been made in the accounts for the loss arising on the items so determined. 13. The Company has not accepted any deposits from the public. 14. In our opinion, reasonable records have been maintained by the Company for the sale and disposal of realizable by- products and scrap, wherever significant. For Chaturvedi & Shah Chartered Accountants D. Chaturvedi Partner Mumbai Dated: 30th September, 2002 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, 2002 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 obligations 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 Rajendra & Co. Chartered Accountants R.J. Shah Partner International Accountants’ Report To the Board of Directors of RELIANCE INDUSTRIES LIMITED We have audited the Balance Sheet of Reliance Industries Limited as on 31st March, 2002 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 in India and Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956. the financial statements and whether preparation of 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 explanations, 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 account of the Company. Respective Responsibilities of Auditors the Management and Opinion these financial statements. The The Management of the Company is responsible for the preparation of financial statements have also been audited by firms 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. report their In our opinion and to the best of our information and according to the explanations given to us, the financial statments read with the accounting policies and notes thereon give a true and fair view: (i) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2002 and (ii) In the case of the Profit and Loss Account, of the profit for the year ended on that date. 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 estimates and judgements made by the management in the Mumbai Dated: 30th September, 2002 For Deloitte Haskins & Sells Chartered Accountants P. R. Barpande Partner Reliance Industries Limited 75 RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Balance Sheet as at 31st March, 2002 Schedule As at 31st March, 2002 Rs. Rs. (Rs. in Crores) As at 31st March, 2001 Rs. Rs. SOURCES OF FUNDS Shareholders’ Funds Share Capital - Equity Equity Share Suspense Reserves and Surplus Deferred Tax Liability 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 Inventories Sundry Debtors Cash and Bank Balances Other Current Assets Loans and Advances Less: Current Liabilities and Provisions Current Liabilities Provisions Net Current Assets Miscellanous Expenditure (to the extent not written off or adjusted) [Ref. Note 17, Schedule ‘O’] TOTAL Significant Accounting Policies Notes on Accounts 1,053.56 342.29 26,479.41 1,053.49 — 13,711.88 27,875.26 2,060.82 14,765.37 — 14,188.89 4,739.59 4,068.40 6,067.39 18,928.48 48,864.56 10,135.79 24,901.16 46,727.32 15,076.92 31,650.40 1,533.31 4,974.07 2,722.46 1,760.71 428.12 9,885.36 9,565.30 19,450.66 6,472.29 1,210.54 7,682.83 25,355.99 11,841.53 13,514.46 512.38 33,183.71 3,850.16 14,026.84 6,726.11 2,299.85 1,134.17 100.63 85.13 3,619.78 5,502.73 9,122.51 4,110.80 863.50 4,974.30 11,767.83 62.86 4,148.21 — 48,864.56 24,901.16 ‘A’ ‘B’ ‘C’ ‘D’ ‘E’ ‘F’ ‘G’ ‘H’ ‘I’ ‘N’ ‘O’ As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants D. Chaturvedi Partner R. J. Shah Partner Mumbai Dated: 30th September, 2002 M.D.Ambani A.D.Ambani N.R.Meswani H.R.Meswani H.S.Kohli U.Mahesh Rao R.H.Ambani M.L.Bhakta T.Ramesh U.Pai Y.P.Trivedi Dr.D.V.Kapur M.P.Modi V.M.Ambani 76 Reliance Industries Limited RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) - Chairman & Managing Director - Vice-Chairman & Managing Director Executive Directors - Nominee Director Directors } } - Company Secretary Profit and Loss Account for the year ended 31st March, 2002 GROWTH IS LIFE Schedule 2001-2002 (Rs. in Crores) 2000-2001 Rs. Rs. Rs. Rs. 57,119.57 11,715.69 45,403.88 3,314.98 28,008.25 4,984.08 23,024.17 2,582.82 INCOME Gross Turnover Less: Inter Divisional Transfers Turnover Less: Excise Duty Recovered on Sales Net Turnover Other Income Variation in Stock EXPENDITURE Purchases Manufacturing and Other Expenses Interest Depreciation Less : Transferred from General Reserve [Refer Note 4, Schedule ‘O’] ‘J’ ‘K’ ‘L’ ‘M’ 3,435.82 619.68 Profit Before Tax and Extra Ordinary Income Add : Extra Ordinary Income [Ref. Note No. 6, Schedule ‘O’] Profit Before Tax Provision for Current Taxation Provision for Deferred Tax Profit after Tax Add : Balance brought forward from last year On Amalgamation Deferred Tax liability for Earlier Years Investment Allowance (Utilised) Reserve Written Back Amount Available For Appropriations APPROPRIATIONS Capital Redemption Reserve Debenture Redemption Reserve Capital Reserve General Reserve Interim Dividend on Preference Shares Proposed Dividend on Equity Shares (Subject to deduction of tax at source) Tax on Dividend — 137.64 4.95 2,000.00 — 663.28 — Balance Carried to Balance Sheet Basic & Diluted Earning per Share of Rs. 10 each (In Rupees) [Ref. Note 14, Schedule ‘O’] Significant Accounting Policies Notes on Accounts ‘N’ ‘O’ 42,088.90 782.34 (907.83) 41,963.41 1,697.84 31,607.33 1,825.10 2,816.14 37,946.41 4,017.00 411.70 4,428.70 190.00 996.00 3,242.70 2,160.65 1,071.50 (1,064.82) 122.07 5,532.10 20,441.35 382.63 317.94 21,141.92 2,935.66 12,644.54 1,215.99 1,565.11 18,361.30 2,780.62 — 2,780.62 135.00 — 2,645.62 1,739.48 — — 10.00 4,395.10 2,636.73 1,071.62 292.95 344.57 98.11 1,000.00 4.77 447.85 46.20 2,805.87 2,726.23 23.36 2,234.45 2,160.65 25.11 As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants D. Chaturvedi Partner R. J. Shah Partner Mumbai Dated: 30th September, 2002 M.D.Ambani A.D.Ambani N.R.Meswani H.R.Meswani H.S.Kohli U.Mahesh Rao R.H.Ambani M.L.Bhakta T.Ramesh U.Pai Y.P.Trivedi Dr.D.V.Kapur M.P.Modi V.M.Ambani } } Executive Directors - Nominee Director Directors - Company Secretary - Chairman & Managing Director - Vice-Chairman & Managing Director RIL Notes of Accoutns.p65 October 8, 2002 @ 8:42 pm Reliance Industries Limited 77 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Balance Sheet SCHEDULE ‘B’ RESERVES AND SURPLUS As at (Rs. in Crores) As at 31st March, 2002 31st March, 2001 Rs. Rs. Rs. Rs. Revaluation Reserve As per last Balance Sheet Less: Deduction on retirement of Revalued Assets 2,770.78 32.28 2,771.06 0.28 Capital Reserve As per last Balance Sheet Add : On Amalgamation Add : Transferred from Profit and Loss Account Capital Redemption Reserve As per last Balance Sheet Add : Transferred from Profit and Loss Account Debenture Redemption Reserve As per last Balance Sheet Add : On Amalgamation Add : Transferred from Profit and Loss Account Securities Premium Account As per last Balance Sheet Add : On Amalgamation Less: Premium on Redemption of Debentures/Bonds Less: Calls in arrears - by others Investment Allowance (Utilised) Reserve As per last Balance Sheet Less: Transferred to Profit and Loss Account Taxation Reserve As per last Balance Sheet General Reserve As per last Balance Sheet Less: Transferred to Profit and Loss Account * [Refer Note 4(a) & 4(b), Schedule ‘O’] Add : Transferred from Profit and Loss Account Profit and Loss Account 285.68 0.65 4.95 485.07 — 852.46 130.17 137.64 5,449.22 10,739.67 16,188.89 35.08 16,153.81 4.23 198.70 122.07 1,501.53 619.68 881.85 2,000.00 2,738.50 2,770.78 187.57 — 98.11 291.28 285.68 485.07 192.12 292.95 507.89 — 344.57 485.07 1,120.27 852.46 5,449.22 — 5,449.22 — 5,449.22 2.21 16,149.58 5,447.01 198.70 10.00 76.63 10.00 208.70 10.00 1,573.15 1,071.62 501.53 1,000.00 2,881.85 2,726.23 26,479.41 1,501.53 2,160.65 13,711.88 * Cumulative amount transferred on account of Depreciation on Revaluation Rs. 2,301.38 Crores (Previous Year Rs. 2,131.86 Crores) RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) Reliance Industries Limited 79 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Balance Sheet SCHEDULE ‘C’ SECURED LOANS A) DEBENTURES 1 2 Non-Convertible Debentures Deep Discount Debentures Less : Unamortised Discounts B) TERM LOANS 1. 2. From Banks Foreign Currency Loans From Financial Institutions a) Foreign Currency Loans b) Rupee Loans C) WORKING CAPITAL LOANS From Banks a) Foreign Currency Loans b) Rupee Loans As at 31st March, 2002 Rs. Rs. (Rs. in Crores) As at 31st March, 2001 Rs. Rs. 8,551.58 600.00 137.98 462.02 4,289.07 4,289.07 — 167.20 167.20 — 719.02 3,352.50 600.00 190.52 409.48 9,013.60 3,761.98 — — 3.41 65.25 68.66 4,456.27 68.66 69.96 167.80 719.02 14,188.89 237.76 4,068.40 Note: 1. (a) Debentures referred to in A above to the extent of Rs. 2,650.35 Crores are secured/to be secured by way of mortgage / charge on all the properties situated at Hazira, District Surat in the State of Gujarat and at Patalganga, District Raigad in the State of Maharashtra. (b) Debentures referred to in A above to the extent of Rs. 992.25 Crores are secured by way of mortgage / charge on all the properties situated at Patalganga, District Raigad in the State of Maharashtra and on the properties of petrochemicals complex situated at Jamnagar, in the State of Gujarat and on the movable properties situated at Hazira, District Surat, in the State of Gujarat. (c) Debentures referred to in A above to the extent of Rs. 162.00 Crores are secured by way of second and subservient charge, created on all the properties situated at Patalganga, District Raigad in the State of Maharashtra. (d) Debentures referred to in A above to the extent of Rs. 5,209.00 Crores are secured/to be secured by first pari passu mortgage and charge in favour of the Trustees on all the immovable and movable properties, both present and future, excluding book debts, office premises and certain other properties specifically excluded of the refinery division of the Company. (e) Debentures referred to in A above consists of: (1) 16.5% Debentures of Rs. 100 each, aggregating Rs. 25.00 Crores are redeemable at par on the expiry of seventh year from the date of allotment, commencing from 10th October, 2002. (2) 13% Debentures of Rs. 100 each, aggregating Rs. 145.00 Crores are redeemable at par as follows: viz Rs. 45 Crores on 11th October, 2009 and Rs. 100 Crores on 17th November, 2009. (3) 14.08% Debentures of Rs. 100 each aggregating Rs. 58.33 Crores are redeemable at par in two instalments, on the expiry of sixth and seventh year from the date of allotment; commencing from 31st March, 2003 (4) 14.5% Debentures of Rs. 10,00,000 each, aggregating Rs. 112.00 Crores are redeemable at par in 19th May, 2002 (since redeemed). (5) 13.5% Debentures of Rs. 1,00,00,000 each, aggregating Rs. 50.00 Crores which are redeemable at par in three equal annual instalments on the expiry of the fifth, sixth and seventh year from the date of allotment; i.e. commencing from 15th September, 2002. (6) 12.25% Debentures of Rs. 1,00,00,000 each aggregating Rs. 325.00 Crores, are redeemable at par in three annual instalments on the expiry of fifth, sixth and seventh year from the date of allotment; commencing from 1st January, 2003. (7) 12.5% Debentures of Rs. 1,00,00,000 each aggregating Rs. 110.00 Crores are redeemable at par on the expiry of seventh year from the date of allotment i.e. 1st January, 2005. (8) 13.75% Debentures of Rs. 1,00,00,000 each aggregating Rs. 110.00 Crores are redeemable at par on the expiry of the tenth year from the respective dates of allotment i.e. 1st January, 2008. (9) 13.75% Debentures of Rs. 1,00,00,000 each aggregating Rs. 80.00 Crores are redeemable at par on the expiry of the tenth year from the respective dates of allotment, i.e. 1st January, 2008. (10) 14.75% Debentures of Rs. 1,00,00,000 each aggregating Rs. 200.00 Crores are redeemable at par in three equal annual instalments, on expiry of eighth, ninth and tenth year from the respective dates of allotment; commencing from 13th February, 2006. (11) 14.25% Debentures of Rs. 1,00,00,000 each aggregating Rs. 80 Reliance Industries Limited RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Balance Sheet 200.00 Crores are redeemable at par on the expiry of the tenth year from the date of allotment; i.e 27th May, 2008. (12) 15.03% Debentures of Rs. 1,00,00,000 each aggregating Rs. 150.00 Crores are redeemable at par on the expiry of the tenth year from the date of allotment; i.e 12th June, 2008. (13) 15.03 % Debentures of Rs. 25,00,000 each aggregating Rs. 66.25. Crores which are redeemable at par on the expiry of the tenth year from the date of allotment; i.e. 25th June, 2008. (14) 14.25% Debentures of Rs. 1,00,00,000 each aggregating Rs. 150.00 Crores are redeemable at par on the expiry of the tenth year from the date of allotment; i.e. 9th September, 2008. (15) 15.03% Debentures of Rs. 1,00,00,000 each aggregating Rs. 21.00 Crores are redeemable at par on the expiry of the tenth year from the date of allotment; i.e. 27th September, 2008. (16) 15.03% Debentures of Rs. 1,00,00,000 each aggregating Rs. 100.00 Crores are redeemable at par on the expiry of the tenth year from the date of allotment; i.e. 4th October, 2008. (17) 14.25% Debentures of Rs. 1,00,00,000 each aggregating Rs. 100.00 Crores are redeemable at par on the expiry of the tenth year from the date of allotment; i.e. 26th November, 2008. (18) 15.03% Debentures of Rs. 1,00,00,000 each aggregating Rs. 25.00 Crores are redeemable at par on the expiry of the tenth year from the date of allotment; i.e. 20th October, 2008. (19) 11.50 % Debentures of Rs. 1,00,00,000 each aggregating Rs. 195.00 Crores are redeemable at par on the expiry of the fifty four months from the date of allotment; i.e. 12th November, 2003. (20) Deep Discount debentures aggregating Rs. 600.00 Crores are redeemable at par on the expiry of sixty months from the date of allotment; i.e. 1st June, 2004. (21) 12.10% Debentures of Rs. 1,00,00,000 each aggregating Rs. 50.00 Crores are redeemable at par on the expiry of third year from the date of allotment; i.e. 15th June, 2002 (since redeemed). (22) 12.10% Debentures of Rs. 1,00,00,000 each aggregating Rs. 92.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 1st July, 2004 (since redeemed). (23) 12.70% Debentures of Rs. 1,00,00,000 each aggregating Rs. 100.00 Crores are redeemable at par on 15th December, 2007. (24) 12.36% Debentures of Rs. 1,00,00,000 each aggregating Rs. 51.00 Crores are redeemable at par on the expiry of fifth year from the respective dates of allotment; commencing from 24th August, 2004. (25) 12.35% Debentures of Rs. 1,00,00,000 each aggregating Rs. 45.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 30th August, 2004. (26) Debentures of Rs. 50,00,000 each aggregating Rs. 92.00 Crores carrying an interest rate linked to the interest rate as announced by CRISIL, which are redeemable at par on the expiry of fifth year from the date of allotment;i.e. 10th February, 2005. (27) 10.85% Debentures of Rs. 1,00,00,000 each aggregating Rs. 50.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 24th February, 2005. (28) 11.00% Debentures of Rs. 1,00,00,000 each aggregating Rs. 75.00 Crores are redeemable at par on the expiry of third year from the date of allotment; i.e. 11th July, 2003. (29) 12.10% Debentures of Rs. 1,00,00,000 each aggregating Rs. 155.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 15th September, 2005. (30) MIBOR Linked Debentures of Rs. 1,00,00,000 each aggregating Rs. 60.00 Crores are redeemable at par on the expiry of third year from the date of allotment; i.e. 12th October, 2003.] (31) 10.90% Debentures of Rs. 1,00,00,000 each aggregating Rs. 100.00 Crores are redeemable at par on the expiry of third year from the date of allotment; i.e. 19th January, 2004. (32) 9.90% Debentures of Rs. 1,00,00,000 each aggregating Rs. 50.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 15th June, 2006. (33) 9.90% Debentures of Rs. 1,00,00,000 each aggregating Rs. 50.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 21st June, 2006. (34) 9.60% Debentures of Rs. 1,00,00,000 each aggregating Rs. 50.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 22nd June, 2006. (35) 9.55% Debentures of Rs. 1,00,00,000 each aggregating Rs. 50.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 11th July, 2006. (36) 9.60% Debentures of Rs. 1,00,00,000 each aggregating Rs. 50.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 12th July, 2006. (37) 13.5% Debentures of Rs.1,00,00,000 each aggregating Rs.200 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 30th March, 2005. (38) 13.5% Debentures of Rs.1,00,00,000 each aggregating Rs.200 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 31st March, 2005. (39) 13% Debentures of Rs.1,00,00,000 each aggregating Rs.100 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 15th June, 2005. (40) 13% Debentures of Rs.1,00,00,000 each aggregating Rs.100 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 28th June, 2005. (41) 12.75% Debentures of Rs.1,00,00,000 aggregating Rs.300 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 10th August, 2005. (42) 13.55% Debentures of Rs.1,00,00,000 each aggregating Rs.70 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 12th August, 2005 (43) 13% Debentures of Rs.1,00,00,000 each aggregating Rs.105 Crores are redeemable at par on 17th September, 2004 (44) 13.5% Debenture of Rs.1,00,00,000 is redeemable at par in 3 annual installments of 30%, 30% and 40% commencing from 17th September, 2007. (45) 13.25% Debenture of Rs.1,00,00,000 is redeemable at par in 3 annual installments of 30%, 30% and 40% commencing from 17th September, 2005. (46) 12.75% Debentures of Rs.1,00,00,000 aggregating 200 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 17th September, 2005. (47) 13.5% Debentures of Rs.1,00,00,000 each aggregating Rs.145 Crores are redeemable at par in 3 annual installments of 30%, 30% and 40% commencing from 20th September, 2007. (48) 13.5% Debentures of Rs.1,00,00,000 each aggregating Rs.272 Crores are redeemable at par in 3 annual installments of 30%, 30% and 40% commencing from 1st October, 2007. (49) 13.5% Debentures of Rs.1,00,00,000 each aggregating Rs.160 Crores are redeemable at par in 3 annual installments of 30%, 30% and 40% commencing from 11th October, 2007. (50) 13.5% Debentures of Rs.1,00,00,000 each aggregating Rs.300 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 29th September, 2005. (51) 13.5% Debentures of Rs.25,00,000 each aggregating Rs.125 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 25th October, 2005. (52) 13.94% Debentures of Rs.100 each aggregating Rs. 234 Crores are redeemable at par on 1st July, 2002 (since redeemed). (53) 11.75% Debentures of Rs.1,00,00,000 each aggregating Rs.300 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 30th May, 2006. (54) 12.25% Debentures of Rs.1,00,00,000 each aggregating Rs.200 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 22nd August, 2006 (55) 11.50% Debentures of Rs.1,00,00,000 each aggregating Rs.410 Crores are redeemable at par on 6th February, 2006. (56) 11.20% Debentures of Rs.1,00,00,000 each aggregating Rs.175 Crores are redeemable at par on 24th February, 2004. (57) 11.50% Debentures of Rs.1,00,00,000 each aggregating Rs.500 Crores are redeemable at par in 3 equal annual Reliance Industries Limited 81 RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Balance Sheet installments commencing from 1st March, 2006. (58) 11.30% Debentures of Rs.1,00,00,000 each aggregating Rs.50 Crores are redeemable at par on 1st March, 2006. (59) 10.75% Debentures of Rs.1,00,00,000 each aggregating Rs.163 Crores are redeemable on 2nd May, 2004 (since redeemed). (60) 11.15% Debentures of Rs.1,00,00,000 each aggregating Rs.45 Crores are redeemable at par on 2nd May, 2006. (61) 11.10% Debentures of Rs.1,00,00,000 each aggregating Rs.50 Crores are redeemable at par on 30th April, 2006. (62) 11.00% Debentures of Rs.1,00,00,000 each aggregating Rs.20 Crores are redeemable at par on 9th May, 2006. (63) 11.05% Debentures of Rs.1,00,00,000 each aggregating Rs.100 Crores are redeemable at par in 16th May, 2006. (64) 10.95% Debentures of Rs.1,00,00,000 each aggregating Rs.25 Crores are redeemable at par on 15th May, 2006. (65) 10.70% Debentures of Rs.1,00,00,000 each aggregating Rs.268 Crores are redeemable at par on 1st June, 2004 (since redeemed). (66) 9.95% Debentures of Rs.1,00,00,000 each aggregating Rs.50 Crores are redeemable at par on 8th June, 2003. (67) 9.84% Debentures of Rs.1,00,00,000 each aggregating Rs.150 Crores are redeemable at par on 26th December 2002. (68) 10.00% Debentures of Rs.1,00,00,000 each aggregating Rs.40 Crores are redeemable at par on 15 June 2006. (69) 10.00% Debentures of Rs.1,00,00,000 each aggregating Rs.50 Crores are redeemable at par in 20th June, 2006. (70) 10.00% Debentures of Rs.1,00,00,000 each aggregating Rs.50 Crores are redeemable at par on 10th July, 2006. (71) 9.90% Debentures of Rs.1,00,00,000 each aggregating Rs.50 Crores are redeemable at par on 18th July, 2006. 2. (a) Foreign currency loans referred to in B(1) above to the extent of Rs. 4,289.07 Crores, from Banks are secured/to be secured by first pari passu mortgage and charge in favour of the Lenders on the immovable and movable properties, both present and future, excluding book debts, office premises and certain other properties specifically excluded of the refinery division of the Company. (b) Rupee Term Loans referred to in B(2) (b) above to the extent of Rs. 100.00 Crores (since repaid) from Financial Institutions are secured/to be secured by first pari passu mortgage and charge in favour of the Trustees/Lenders on the immovable and movable properties, both present and future, excluding book debts, office premises and certain other properties specifically excluded of the refinery division of the Company. (c) Term Loan referred to in B(2) (b) above, to the extent of Rs.67.20 Crores are secured/to be secured only on the dwelling units constructed/to be constructed for the employees of the Company. 3. (a) The charges created on the Debentures referred to in Note 1(a) and 1(b) above shall rank pari passu, inter se. (b) The charges created on the Debentures referred to in Note 1(d), term loans referred to in Note 2(a) and 2(b), above shall rank pari passu, inter se. 4. (a) Working Capital Loans from Banks referred to in C(b) above to the extent of Rs.547.77 Crores are secured by hypothecation of present and future stock in trade, raw material, stock in process, stores and spares (not relating to Plant and Machinery), outstanding monies, receivables and Book Debts of the refinery division of the Company. (b) Working Capital Loans from Banks referred to in C(b) above to the extent of Rs.171.25 Crores are secured by hypothecation of present and future stock of raw materials, stock-in-process, finished goods, stores and spares, book debts, outstanding monies, receivable claims, etc. save and except receivable of Oil and Gas Division. 5. Secured Loans include loans of Rs.31.60 Crores and debentures of Rs. 718.50 Crores repayable / redeemable at par within one year. SCHEDULE ‘D’ UNSECURED LOANS A. Long Term i) ii) From Banks From Others B. Short Term From Banks As at 31st March, 2002 Rs. Rs. (Rs. in Crores) As at 31st March, 2001 Rs. Rs. 1,429.25 3,310.34 1,611.84 4,355.55 4,739.59 — 4,739.59 5,967.39 100.00 6,067.39 82 Reliance Industries Limited RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Balance Sheet SCHEDULE ‘E’ FIXED ASSETS Description As At Acquired On Additions/ Deductions/ As at Upto For the Deductions Upto As At As At Gross Block Depreciation (Rs. in Crores) Net Block Producing Properties Buildings Plant & Machinery Electrical Installations Equipments Furniture & Fixtures Vehicles Ships Aircrafts & Helicopters Jetties Sub-Total LEASED ASSETS: Plant & Machinery Ships Sub-Total Total 1-4-2001 Amalgamation# Adjustment Adjustment 31-3-2002 1-4-2001 Rs. Rs. Rs. Rs. Rs. Rs. OWN ASSETS: Leasehold Land Freehold Land 52.83 42.99 Development Rights / 1,033.47 — 94.91 — 3.85 21.94 34.36 — 0.10 — 56.68 159.74 3.77 — 1,067.83 178.52 Year Rs. 0.42 —- 57.77 1,499.45 21,133.44 702.08 318.77 120.51 78.97 213.31 46.92 113.25 775.93 238.92 0.14 2,514.16 416.13 87.76 17,674.42 1,885.83 258.73 40,434.96 10,504.71 3,076.20 16.22 193.78 45.42 16.35 1.47 — 533.72 11.48 35.79 10.52 24.01 — — — 0.54 1.55 1.33 14.82 — — — 729.24 546.79 175.12 104.51 214.78 46.92 646.97 273.61 125.03 53.29 50.03 151.94 26.66 57.84 73.88 42.89 22.35 13.35 8.80 3.27 42.45 Rs. — — — 0.58 187.20 0.09 0.87 0.78 10.91 — — — 31-3-2002 31-3-2002 31-3-2001 Rs. Rs. Rs. 4.19 — 236.29 52.49 159.74 831.54 49.06 42.99 854.95 503.31 2,010.85 13,393.71 27,041.25 1,083.32 10,628.73 347.40 167.05 74.86 52.47 160.74 29.93 100.29 381.84 379.74 100.26 52.04 54.04 16.99 546.68 428.47 193.74 67.22 28.94 61.37 20.26 55.41 25,355.99 19,352.22 2,266.70 277.21 46,697.70 11,841.53 3,429.14 * 200.43 15,070.24 31,627.46 13,514.46 — — 19.64 9.98 29.62 19.64 9.98 29.62 — — 5.02 1.66 6.68 5.02 1.66 6.68 14.62 8.32 22.94 — — — — 25,355.99 19,352.22 2,296.32 277.21 46,727.32 11,841.53 3,435.82 200.43 15,076.92 31,650.40 13,514.46 Previous Year 24,330.95 — 1,052.07 27.03 25,355.99 9,214.06 2,636.73 9.26 11,841.53 13,514.46 Capital Work-in-Progress NOTES : 1,533.31 512.38 a) b) Leasehold Land includes Rs. 0.21 Crore in respect of which lease-deeds are pending execution. Buildings include : i) ii) Cost of shares in Co-operative Societies Rs. 0.01 Crore ( Previous Year Rs. 0.01 Crore). Rs. 93.20 Crores incurred towards purchase/acquisition of 1,94,819 Equity Shares of Re. 1 each of M/s. Mature Trading & Investments Pvt. Ltd. with a right of occupancy of certain area of a commercial premises. c) Capital Work-in-Progress includes : i) ii) Rs. 64.86 Crores on account of project development expenses. (Previous Year Rs. 6.52 Crores) Rs. 477.04 Crores on account of cost of construction materials at site. (Previous Year Rs. 160.23 Crores). iii) Rs. 197.62 Crores on account of advance against Capital Expenditure. (Previous Year Rs. 29.23 Crores). Additions include Rs. 294.29 Crores on account of exchange difference during the year.(Previous Year Rs. 551.42 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. d) e) f) Gross Block includes Rs. 2,738.50 Crores (Previous Year Rs. 2,770.78 Crores) being the amount added on revaluation of Plant & Machinery as at 01-04-1997 * Refer to Note 4(a) & 4(b), Schedule 'O' # Fair value of assets added on amalgamation of Reliance Petroleum Limited, based on valuers’ report. RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) Reliance Industries Limited 83 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Balance Sheet SCHEDULE ‘F’ INVESTMENTS A. LONG TERM INVESTMENTS Government and other securities Unquoted Indira Vikas Patra Kisan Vikas Patra (Deposited with Sales Tax Dept.) (Rs. 20,000 Previous Year Rs. 20,000) 7 years National savings certificate (Deposited with Sales Tax Dept.) (Rs. 1,000 previous year Rs. NIL) Trade Investments In Equity Shares Quoted, fully paid up 6,01,23,886 Reliance Capital Ltd., of Rs. 10 each (6,01,23,886) 69,80,000 Reliance Industrial Infrastructure Ltd., of (69,80,000) Rs. 10 each (1,27,25,89,200) - Reliance Petroleum Ltd., of Rs. 10 each, (Company under the same management and amalgamated during the year) Unquoted, fully paid up 5 Bombay Gujarat Art Silk Vepari Mahajan (5) Co-operative Shops and Warehouse Society Ltd., of Rs. 200 each, (Rs 1,000; Previous Year Rs. 1,000) 60 New Piece Goods Bazar Co. Ltd., of Rs. 100 each, (60) 15 (Rs. 17,000; Previous Year Rs. 17,000) Pandesara Industrial Co-operative Society Ltd., of (15) Rs. 100 each (Rs. 1,500; Previous Year Rs. 1,500) 118 Reliance Petroproducts Private Ltd., of Rs. 10 each, (300) (Rs. 1,180; Previous Year Rs. 3,000) 11,08,500 Reliance Europe Ltd of Sterling Pound 1 each (11,08,500) 145 Reliance Global Trading Private Ltd., of Rs. 10 each, (800) 165 (165) 20 (20) 1,30,00,000 (-) 26,000 (-) 1,00,00,000 (-) (Rs. 1,450; Previous Year Rs. 8,000) The Art Silk Co-operative Society Ltd., of Rs. 100 each, (Rs. 16,500; Previous Year Rs. 16,500) The Bombay Market Art Silk Co-operative (Shops and Warehouses) Society Ltd., of Rs. 200 each, (Rs. 4,000; Previous Year Rs. 4,000) Petronet V. K. Ltd., of Rs.10 each Petronet C.I. Ltd., of Rs.10 each Petronet India Ltd., of Rs.10 each Unquoted, partly paid up 225 Crimpers Industrial Co-operative Society Ltd., of (225) Rs.100 each, Rs. 25 paid up (Rs. 5,625; Previous Year Rs. 5,625) 226 Reliance Global Trading Private Ltd., of Rs.10 each, (226) Rs. 2.50 paid up (Rs. 565; Previous Year Rs. 565) 182 Reliance Petroproducts Private Ltd., of Rs. 10 each, (182) Rs.2.50 paid up (Rs. 455; Previous Year Rs. 455) As at 31st March, 2002 Rs. Rs. (Rs. in Crores) As at 31st March, 2001 Rs. Rs. 0.51 — — 486.25 16.58 — 502.83 — — — — 3.93 — — — 13.00 0.03 10.00 26.96 — — — — 0.51 — — 0.51 0.51 486.25 16.58 2,638.37 3,141.20 — — — — 3.93 — — — — — — 3.93 — — — — 84 Reliance Industries Limited RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Balance Sheet SCHEDULE ‘F’ ( contd.) INVESTMENTS In Preference Shares Unquoted, fully paid up As at 31st March, 2002 Rs. Rs. (Rs. in Crores) As at 31st March, 2001 Rs. Rs. 1,08,00,000 14% Cumulative Redeemable Preference Shares of (1,08,00,000) Reliance Ports and Terminals Ltd., of Rs. 100 each 14% Cumulative Redeemble Preference Shares of Reliance Utilities & Power Ltd., of Rs. 100 each 6% Cumulative Redeemable Preference Shares of 37,50,000 (37,50,000) 86,00,000 (86,00,000 ) Reliance Enterprises Ltd., of Rs. 100 each 2,18,90,000 14% Cumulative Redeemble Preference Shares of (2,18,90,000) Reliance Salgoankar Power Ltd., of Rs. 10 each 108.00 37.50 86.00 21.89 12,69,000 9% Cumulative Redeemble Preference Shares of 12.69 (12,69,000) Goa Trading Private Ltd., of Rs. 100 each In Warrant Equity Shares Quoted, partly paid up (16,02,52,100) - Warrant Equity Shares 2001 of Reliance Petroleum Ltd., Rs. 10 each, Rs. 3 paid up (Company under the same management and amalgamated during the year) In Debentures Unquoted, fully paid up 266.08 — — 108.00 37.50 86.00 21.89 12.69 266.08 48.08 48.08 (6,40,140) 6,40,140 Deep Discount Bonds of Reliance Communcations Infrastructure Ltd., (formerly Reliance Infocom Ltd.) of Maturity Value of Rs. 1,00,000 each (Company under the same management) - Deep Discount Bonds of Reliance Power Ltd., of (1,60,260) Maturity Value of Rs. 1,00,000 each 13,752 Deep Discount Bonds of Reliable Internet - Services Ltd., of Maturity Value of Rs. 1,00,000 each 1,600.02 1,600.02 — 70.00 400.01 - 1,670.02 2,000.03 2,465.89 5,459.32 In Equity Shares of Subsidiary Companies Unquoted, fully paid up 2,10,070 (2,10,070) Vimal Fabrics Ltd., of Rs.10 each 0.21 14,75,04,400 Reliance Industrial Investments and Holdings Ltd., 147.50 (14,75,04,400) of Rs.10 each 20,20,000 Reliance Power Venture Ltd., of Rs. 10 each (20,20,000) 20,20,000 Reliance Ventures Ltd., of Rs. 10 each (20,20,000) 45,000 Reliance LNG Private Ltd., of Rs. 10 each (-) 11,120 Reliance Infocom BV., of 100 EURO Each (11,120) 88,77,551 Reliance Petroinvestments Ltd., of Rs. 10 each (-) (ceased to be a subsidiary with effect from 17/4/2002) 20,20,200 Reliance Strategic Investments Ltd., of Rs.10 each (-) Reliance Technologies LLC # 2.02 2.02 0.05 4.48 8.22 2.02 17.54 184.06 0.21 147.50 2.02 2.02 — 4.48 — — 16.40 172.63 RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) Reliance Industries Limited 85 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Balance Sheet SCHEDULE ‘F’ ( contd.) INVESTMENTS In Debentures of Subsidiary Companies Unquoted, fully paid up 2,79,90,000 (2,79,90,000) 8.25% Unsecured Convertible Debentures of Reliance Industrial Investments and Holdings Ltd., of Rs. 100 each Zero Coupon Optionally Convertible Unsecured 8,83,143 (8,83,143) Debentures of Reilance Industrial Investments and Holdings Ltd., of Rs. 5,000 each Other Investments In Equity Shares Quoted, fully paid up 15,51,549 (15,51,549) - (71,67,781) BSES Ltd., of Rs.10 each Larsen & Toubro Ltd., of Rs.10 each Unquoted, fully paid up 51,02,080 Reliance Telecom Ltd., of Rs. 10 each (51,02,080) 31,50,00,000 Reliance Infocomm Ltd., (formerly Reliance (25,00,00,000) Communications Ltd.) of Re 1 each (Company under the same management) 2,55,00,175 Reliance General Insurance Company Ltd., (10,20,00,700) of Rs. 10 each* 500,175 Reliance Life Insurance Company Ltd., of (20,00,700) Rs. 10 each* 81,00,00,000 Reliance Communcations Infrastructure Ltd., (formerly Reliance Infocom Ltd.) of Re 1 each (Company under the same management) Air Control and Chemical Engineering Co. Ltd., of 1,000 (-) (1,000) Rs. 100 each TOTAL (A) B. CURRENT INVESTMENTS Other Investments In Units Quoted As at 31st March, 2002 Rs. Rs. (Rs. in Crores) As at 31st March, 2001 Rs. Rs. 279.90 441.58 279.90 441.58 721.48 721.48 905.54 894.11 33.73 — 33.73 5.10 31.50 25.50 0.50 81.00 0.01 143.61 33.73 163.95 197.68 5.10 25.00 102.00 2.00 — 0.01 134.11 177.34 3,549.28 331.79 6,685.73 85,600 Unit Scheme 1964, Unit Trust of India 0.08 @ (85,600) 1,59,900 (161,100) of Rs. 10 each (Deposited with Mumbai Port Trust) SBI Magnum Multiplier Plus 1993 of Rs. 10 each. Unquoted - Reliance Income Fund - Growth Plan of Rs. 10 each (2,78,49,807) 23,91,77,917.293 Reliance Liquid Fund of Rs. 10 each (-) 0.16 0.24 — 300.64 300.64 0.13 0.16 0.29 40.09 — 40.09 TOTAL (B) TOTAL (A+B) 300.88 3,850.16 40.38 6,726.11 # Investment in Reliance Technologies LLC represents 90% Membership Interest. * Ceased to be Subsidiaries during the year. @ Is the net of provision for diminution in value of Rs. 0.05 Crore. 86 Reliance Industries Limited RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Balance Sheet SCHEDULE ‘F’ ( contd.) INVESTMENTS AGGREGATE VALUE OF Quoted Investments Unquoted Investments As at 31st March, 2002 (Rs. in Crores) As at 31st March, 2001 Book Value Rs. Market Value Rs. Book Value Rs. Market Value Rs. 536.80 3,313.36 373.69 3,387.25 3,338.86 7,084.05 The Company has not provided for diminution in market value of long term quoted investments which is lower by Rs. 163.11 Crores as compared to the book value, as the decline in market value is considered temporary. Movements during the year Purchased and Sold Equity Shares Larsen & Toubro Ltd. Reliance Infoinvestments Pvt. Ltd. Recron Infoinvestments Ltd. Mutual Fund Units Reliance Liquid Fund (Treasury Plan) Reliance Liquid Fund (Serial Plan) Reliance Income Fund (Growth Plan) Deep Discount Bonds Reliance Power Ltd. Reliance Elastometers Pvt. Ltd. Reliance Chemicals Pvt. Ltd. Reliance Chemicals Pvt. Ltd. Reliance Petrosynth Pvt. Ltd. Reliance Industrial Enterprises Pvt. Ltd. Face Value Rs. Nos. Cost (Rs. in Crores) 10 10 10 24,584,585 210,000 202,020 393.62 0.21 0.20 Face Value Rs. Nos. (In Crores) Cost (Rs. in Crores) 10 10 10 Face Value Rs. 100,000.00 1,000.00 1,000.00 100,000.00 100,000.00 100,000.00 634.55 9.79 506.50 Nos. 24,960 124,995 81,181 17 333 3,816 8,414.78 160.64 5,119.25 Cost (Rs. in Crores) 200.00 12.50 8.12 0.17 3.33 38.16 RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) Reliance Industries Limited 87 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Balance Sheet SCHEDULE ‘G’ CURRENT ASSETS INVENTORIES 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 OTHER CURRENT ASSETS Interest Accrued on Investments As at 31st March, 2002 Rs. Rs. (Rs. in Crores) As at 31st March, 2001 Rs. Rs. 844.34 2,450.39 519.83 1,159.51 112.06 108.47 220.53 108.47 112.06 2,610.40 1.49 187.34 1,571.88 720.12 378.56 177.74 1,023.43 4,974.07 2,299.85 129.40 56.80 186.20 56.80 129.40 1,004.77 2,722.46 1,134.17 1.30 66.90 32.43 1,760.71 428.12 9,885.36 100.63 85.13 3,619.78 # Sundry Debtors include Rs. 166.57 Crores (Previous Year Rs. 219.49 Crores) from Reliance Communications Infrastructure Limited (formerly Reliance Infocom Limited) and Rs. 0.10 Crore (Previous Year Rs. NIL) from Reliance Infocomm Limited (formerly Reliance Communications Limited), companies under the same management. 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. As at 31st March, 2002 Rs. Rs. (Rs. in Crores) As at 31st March, 2001 Rs. Rs. 2,988.98 5,932.84 499.33 144.15 9,565.30 2,922.58 1,863.99 572.74 143.42 5,502.73 Advances include: (i) Rs 0.20 Crore to Officers of the Company (Maximum amount outstanding at any time during the year Rs 0.21 Crore). (ii) Rs. 109.14 Crores towards Shares / Debentures Application money pending allotment (Previous Year Rs 99.21 Crores). (iii) Rs. 2,213.00 Crores (Previous Year Rs. 10.00 Crores) towards equity share application money pending allotment to Reliance Communications Infrastructure Limited (formerly Reliance Infocom Limited), a Company under the same management. (iv) Rs. 42.29 Crores (Previous Year Rs. NIL) receivable from Reliance Communication Infrastructure Limited (formerly Reliance Infocom Limited) and Rs. 16.39 Crores (Previous Year Rs. NIL) receivable from Reliance Infocomm Limited (formerly Reliance Communications Limited), companies under the same management, towards net investment in finance Leases given. 88 Reliance Industries Limited RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Balance Sheet SCHEDULE ‘I’ CURRENT LIABILITIES AND PROVISIONS CURRENT LIABILITIES Sundry Creditors - Small scale Industries Others Liability for Leased assets Unclaimed Dividend Interest accrued but not due on loans PROVISIONS Provision for Wealth Tax Provision for Income Tax Provision for Gratuity, Superannuation and Leave Encashment Proposed Dividend Tax on Dividend As at 31st March, 2002 Rs. Rs. (Rs.in Crores) As at 31st March, 2001 Rs. Rs. 1.46 # 6,021.90 * 24.70 35.00 389.23 24.16 486.80 36.30 663.28 — 4.72 3,854.50 — 28.58 223.00 6,472.29 4,110.80 17.85 330.55 21.57 447.85 45.68 1,210.54 7,682.83 863.50 4,974.30 # Small scale industrial undertakings to whom amounts are due has been determined based on the information available with the Company and are as follows: Aaa Packaging Technology, Aditya Forge Ltd., Aksh India Ltd., Alliance Fittings & Forgings Limited, Anil Industrial Components, Anthia Machine Tools, Arham Steels Pvt Ltd., Ashar Industrial Corporation, Associated Products, Atisha Engineers, Baliga Lighting, Equipment, Bhavani Spring Works, Bilimoria (India), Bliss Anand Pvt Ltd., Brajesh Packaging Pvt.Ltd., Care Office Equipment Pvt. Ltd., CEAG Flameproof Control Gears P Ltd., Chandresh Cables Limited, Chokshi Graphics, Comet Brass Products, Comet Engineers, Drofketal Chemicals India Pvt. Ltd. EBY Fasteners, Electro Engineering Co Pvt Ltd., Elgi Electric And Industries Limited, Elite Printers, Essar Enterprises, Fine Polycolloids Pvt.Ltd., Globe Electrical Industries, H R Industries, Hemal Enterprise, Hi-Tech Paper Products, Horizon Offset, Igp Engineers Private Limited, Industrial Equipments Suppliers, J J Engineering Works, J.B.Industries, J.B.Packaging, Jay Nakoda Industries, Jyoti Paper Products, K.V.Fire Chemicals (India) Pvt.Ltd., Kantilal Chunilal & Sons Appliances Pvt Ltd., Kumar Tex Industries, Kwality Die Fabricators, Laxmi Air Control (P) Ltd., Malli Polymer Pvt.Ltd., Manlon Engineers Pvt.Ltd., Metabrite Industries, Metro Brush Works, Micro Engineering Pvt Ltd., Moksha Thermoplastics P.Ltd., MS Fittings Mfg Co, MTL Instruments Pvt Ltd., Nec Containers Pvt Ltd., Nippon Chemicals, Nitro Polymers, Omicron Unique Products, Paras Gears Pvt.Ltd., Paras Plastic, Pioneer Fabrics & Packaging P.Ltd., PLA Chem Industries, Polytech Industries, Praful Traders, Precise Tools, Precision Engineering Company, Programmed Engg Products Pvt Ltd., Pushpanjali Enterprises, Pooja Paper Crafts, Radha Madhav Industries, Ravi Industries, Revathi Electronic & Controls, Sajitha Traders & Engineering Works, Saurashtra Packaging, Semitronik Systems, Serve Tex Engineers, Sheeba Fabricators, Shiv Ganga Paper Converters (P) Ltd., Shree Ambica Textile Works, Shree Laxmi Krupa Engineering Works, Shree Mahesh Engineering Works, Shree Ram Engineers, Shyam Enterprise, Sigma Industries, SIP Tools, Sterdill Equipments Pvt Ltd., Sukhvir Engineering Works, Sunrise Paper & Board Mills, Supertex, Suveg Electronics, Satyam Pharma Chem Pvt. Ltd., Sanghvi Packers, T P Refrigeration, Topack Ceramics Pvt. Ltd., Tex Tube Mfg. Co., Universal Welding Works, V M Corporation, Vikrant Engineers, Vinay Electricals, Viral Electricals, Wadhwa Polyfilms Pvt. Ltd. The outstandings are within the period of agreed terms. * Includes for capital expenditure Rs. 176.16 Crores. (Previous Year Rs. 104.72 Crores) Schedules forming part of the Profit and Loss Account SCHEDULE ‘J’ OTHER INCOME Dividends : From Current Investments From Long Term Investments Interest Received : From Current Investments From Long Term Investments From Others [Tax Deducted at source Rs. 56.53 Crores; (Previous Year Rs. 5.17 Crores)] Profit/(Loss) on Sale of Investments (net) Current Long Term Profit on Sale of Fixed Assets Discount on Buyback of Bonds/Redemption of Debentures Miscellaneous Income Rs. 0.01 23.77 5.08 310.94 225.09 39.43 (4.26) 2001-2002 Rs. 23.78 541.11 35.17 4.08 4.95 173.25 782.34 (Rs. in Crores) 2000-2001 Rs. 0.01 20.10 132.18 28.49 40.90 13.41 0.28 Rs. 20.11 201.57 13.69 0.41 98.11 48.74 382.63 RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) Reliance Industries Limited 89 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 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 Add : On Amalgamation Finished goods Stock-in-process SCHEDULE ‘L’ MANUFACTURING AND OTHER EXPENSES RAW MATERIALS CONSUMED MANUFACTURING EXPENSES Stores, Chemicals and Packing Materials Electric Power, Fuel and Water Machinery Repairs Building Repairs Labour, Processing and Machinery Hire Charges Excise Duty provided on Stocks Lease Rent Exchange Differences (Net) PAYMENTS TO AND PROVISIONS FOR EMPLOYEES (including Managerial Remuneration) 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, Discount and Commission Warehousing and Distribution Expenses Sales Tax including defeased Provision for Doubtful Debts ESTABLISHMENT EXPENSES Insurance Rent Rates and Taxes Other Repairs Travelling Expenses Payment to Auditors Professional Fees Loss on Sale / Discarding of Fixed Assets General Expenses Wealth Tax Charity and Donations Less : Project development expenses (net) 2001-2002 (Rs. in Crores) 2000-2001 Rs. Rs. Rs. Rs. 1,159.51 519.83 1,023.43 177.74 1,201.17 603.60 782.40 1,386.00 1,023.43 177.74 1,679.34 1,201.17 787.14 96.09 883.23 — — — 2,587.17 (907.83) 883.23 317.94 2001-2002 Rs. Rs. Rs. 26,489.41 (Rs. in Crores) 2000-2001 Rs. 9,430.09 1,120.41 739.62 102.23 28.35 146.20 (33.04) 47.91 123.35 440.50 57.15 71.73 23.85 122.43 960.78 213.94 51.67 120.62 20.43 101.86 62.71 46.36 3.66 198.89 18.27 293.78 6.00 30.07 806.15 987.86 70.78 22.22 112.89 (1.99) 31.26 (594.16) 335.33 46.42 59.32 37.23 328.55 388.39 7.61 (5.80) 38.87 27.92 115.59 32.17 35.74 2.56 128.67 2.80 164.48 4.50 30.39 1,435.01 441.07 755.98 583.69 12,645.84 1.30 12,644.54 2,275.03 569.38 1,372.67 902.65 31,609.14 1.81 31,607.33 90 Reliance Industries Limited RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Profit and Loss Account SCHEDULE ‘M’ INTEREST Debentures Fixed Loans Others 2001-2002 (Rs. in Crores) 2000-2001 Rs. Rs. Rs. Rs. 1,377.65 299.12 148.33 1,825.10 918.97 166.99 130.03 1,215.99 Significant Accounting Policies SCHEDULE ‘N’ SIGNIFICANT ACCOUNTING POLICIES A. Basis of Preparation of Financial Statements The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956, except for certain fixed assets which have been revalued. B. Use of Estimates The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognised in the period in which the results are known/materialised. C. Own Fixed Assets Fixed Assets are stated at cost net of modvat / cenvat 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 attributable to the fixed assets are capitalised. D. Leased Assets a) Operating Leases: Rentals are expensed with reference to lease terms and other considerations. b) (i) Finance leases prior to 1st April, 2001: Rentals are expensed with reference to lease terms and other considerations. (ii) Finance leases on or after 1st April, 2001: The lower of the fair value of the assets and present value of the minimum lease rentals is capitalised as fixed assets with corresponding amount shown as lease liability. The principal component in the lease rental is adjusted against the lease liability and the interest component is charged to profit and loss account. c) However, rentals referred to in (a) or (b) (i) above and the interest component referred to in (b) (ii) above pertaining to the period upto the date of commissioning of the assets are capitalised. d) All assets given on finance lease are shown as receivables at an amount equal to net investment in the lease. Initial direct costs in respect of lease are expensed in the year in which such costs are incurred. Income from these assets is accounted by applying the interest rate implicit in the lease to the net investment. E. Depreciation Depreciation on fixed assets has been provided on written down value method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 except: on fixed assets pertaining to crude oil refining, polypropylene complex and support services situated at Jamnagar, depreciation has been charged on straight line method (SLM); on fixed bed catalyst depreciation has been provided over its useful life ranging from 3 to 5 years; on additions or extensions forming an integral part of existing plants, including incremental cost arising on account of translation of foreign currency liabilities for acquisition of fixed assets, depreciation has been provided as aforesaid over the residual life of the respective plants; on development rights and producing properties depreciation has been provided in proportion of oil and gas production achieved; premium on leasehold land is amortised over the period of lease; cost of jetty has been amortised over the period of agreement of right to use, provided however that the aggregate amount amortised to date is not less than the aggregate rebate availed by the company; on revalued assets depreciation has been charged over the residual life of the assets; on assets acquired under finance lease from 1st April, 2001 depreciation is provided over the lease term. F. Foreign Currency Transactions (a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. (b) Monetary items denominated in foreign currencies at the year end and not covered by forward exchange contracts are translated at year end rates and those covered by forward exchange contracts are translated at the rate ruling on 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. Reliance Industries Limited 91 RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) (c) Non monetary foreign currency items are carried at cost. (d) 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. (e) 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. G. 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. H. Inventories Items of inventories are measured at lower of cost or net realisable value. Cost of inventories comprise of all cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition. Cost of raw materials, process chemicals, stores and spares, packing materials, trading and other products is determined on weighted average basis. By-products are valued at net realisable value. Cost of work-in-progress and finished stock is determined on absorption costing method. I. Gross Turnover / Turnover a) Gross Turnover includes sale of goods, services, inter divisional transfers, sales tax and excise duty and sales during trial run period; adjusted for discounts and gain/loss on corresponding hedge contracts. b) Turnover represents gross turnover excluding inter divisional transfers. J. Excise Duty and Sales Tax 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. Sales Tax charged to Profit and Loss Account includes payments made for assignment of deferred sales tax liabilities. K. Employee Retirement Benefits Company's contributions to Provident Fund and Superannuation Fund are charged to Profit and Loss Account. Gratuity and Leave Encashment Benefit are charged to Profit and Loss Account on the basis of actuarial valuation. L. 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. M. Borrowing Costs Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue. N. Commodity Hedging Transactions The Commodity hedging contracts are accounted on the date of their settlement and realised gain/ loss in respect of settled contracts are recognised in the profit and loss account, along with the underlying transactions. O. Accounting for Oil and Gas Activity Assets and liabilities as well as income and expenditure 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 in respect of the un-incorporated joint ventures. P. Provision for Current and Deferred Tax Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the asset will be realised in future. Q. Employee Separation Costs Compensation to employees who have opted for retirement under the voluntary retirement scheme of the Company is amortised over 60 months. R. Issue Expenses Issue Expenses pertaining to the projects are capitalised. 92 Reliance Industries Limited RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts SCHEDULE ‘O’ 1. (a) The previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. (b) The figures for the current year include figures of erstwhile Reliance Petroleum Limited (RPL) which is amalgamated with the Company with effect from 1st April, 2001 and are therefore to that extent not comparable with those of the previous year. (c) Figures have been presented in ‘Crores’ of rupees with two decimals in accordance with the approval received from the Company Law Board. Figures less than Rs. 50,000 have been shown at actuals in brackets. 2. (a) In terms of the Scheme of Amalgamation (Scheme) sanctioned by order dated 7th June, 2002 of Hon’ble High Court of Bombay and the order dated 13th September, 2002 of the Hon’ble High Court of Gujarat, Reliance Petroleum Limited (“RPL” - whose core business is refining of crude oil) has been amalgamated with the Company with effect from 1st April, 2001. (b) In accordance with the said Scheme : (i) The assets, liabilities, rights and obligations of RPL have been vested in the Company with effect from 1st April, 2001 and have been recorded at their respective fair values under the purchase method of accounting for amalgamation. (ii) 34,26,20,509 Equity shares of Rs. 10 /- each are to be issued as fully paid-up to the shareholders of RPL, without payment being received in cash, and pending allotment, these have been shown under the head “Equity Share Suspense” net of calls in arrears of Rs. 0.33 Crore. (iii) Equity Share Suspense includes 10,46,60,154 shares of Rs. 10/- each to be allotted to the trust created by Reliance Industrial Investments Holdings Limited, a wholly owned subsidiary of the Company against its investments in RPL. (iv) Excess of fair value of net assets taken over by the Company over the paid up value of equity shares to be issued and allotted and the carrying amount of shares held by the Company in RPL has been dealt with as under: Rs. 130.17 Crores representing Debenture Redemption Reserve in RPL books, has been credited to Debenture Redemption Reserve; Rs. 0.65 Crore representing Capital Reserve in RPL books, has been credited to Capital Reserve; Rs. 1,071.50 Crores representing balance in Profit and Loss Account in RPL books, has been credited to Profit and Loss Account and net balance of Rs. 10,739.67 Crores has been credited to Securities Premium Account. As required by Accounting Standard (AS-14) on Accounting for Amalgamation issued by the Institute of Chartered Accountants of India, these reserves have been accounted as prescribed in the Scheme. Had the Scheme not prescribed this treatment, these amounts would have been credited to Capital Reserve. The computation of the amount credited to Securities Premium Account is as under: (Rs. in Crores) (Rs. in Crores) Fair value of Assets — Fixed Assets — Net Current Assets — Investments Fair value of Assets Less : Loan Liabilities Fair value of Net Assets taken over Less: Consideration Payable (34,26,20,509 equity shares of Rs 10 each) Cancellation of Investment of RIL in RPL Stamp Duty Payable on Amalgamation Debenture Redemption Reserve Capital Reserve Profit and Loss Account Calls in Arrears Amount taken to Securities Premium Account on amalgamation 20,644.12 1,426.23 413.46 22,483.81 7,492.13 342.62 2,686.45 25.00 130.17 0.65 1,071.50 (4.38) 14,991.68 4,252.01 10,739.67 (v) Consequent to the Court Orders, the authorised share capital will be increased to Rs. 3,000 Crores consisting of 250,00,00,000 equity shares of Rs. 10 each and 50,00,00,000 Preference Shares of Rs. 10 each. 3. Gross Turnover includes inter divisional transfers of Rs. 11,715.69 Crores (Previous Year Rs. 4,984.08 Crores) and Income from services of Rs. 330.00 Crores (Previous Year Rs. 137.66 Crores) RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) Reliance Industries Limited 93 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts SCHEDULE ‘O’ (Contd.) 4. (a) The company has changed the method of depreciation from straight line method to written down value method, with effect from 1-4-2001 for Aromatics complex situated at Jamnagar, to provide for earlier replacement on account of technological advancement. In compliance with the Accounting Standards (AS-6), on Depreciation Accounting issued by the Institute of Chartered Accountants of India, depreciation has been recomputed from the date of commissioning on these assets at WDV rates applicable to those years. Consequent to this there is an additional depreciation charge of Rs. 450.16 Crores which relates to the previous years and an equivalent amount has been withdrawn from the 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. 238.02 Crores excluding the charge relating to the previous years. Consequently, the Net Block of Fixed Assets and Reserves and Surplus are lower by Rs. 688.18 Crores. (b) The Gross Block of Fixed Assets include Rs. 2,738.50 Crores (Previous Year Rs 2,770.78 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. 169.52 Crores (Previous Year Rs 236.59 Crores) and an equivalent amount has been withdrawn from General Reserve and credited to the Profit and Loss Account. 5. 6. The expenditure 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.133.61 Crores. (Previous Year Income of Rs 0.83 Crore). Extraordinary Income includes income of Rs 358.34 Crores, on account of sale of equity shares of Larsen and Toubro Limited and Rs. 53.36 Crores on account of Insurance claims received against the damage caused by the earthquake of January, 2001. 7. (a) Payment to Auditors : Audit Fees Tax Audit Fees i) ii) iii) For Certification and Consultation in finance and tax matters iv) Expenses reimbursed (b) Cost Audit Fees 8. Managerial Remuneration : i) Salaries ii) Perquisites iii) Sitting Fees (Paid by erstwhile RPL) iv) Commission v) Contribution to Provident Fund and Superannuation Fund vi) Provision for Gratuity 2001-2002 1.47 0.53 1.41 0.21 3.62 0.04 2001-2002 2.35 2.04 0.03 30.12 0.59 0.45 35.58 (Rs. in Crores) 2000-2001 1.16 0.47 0.68 0.21 2.52 0.04 (Rs. in Crores) 2000-2001 2.35 2.04 — 22.69 0.59 0.10 27.77 94 Reliance Industries Limited RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts SCHEDULE ‘O’ (Contd.) Computation of net profit in accordance with Section 198 read with Section 309(5) of the Companies Act, 1956. Profit before Taxation Add: Depreciation as per accounts Provision for Doubtful Debts / (Written Back) Loss on Sale of Fixed Assets Managerial Remuneration Less: Depreciation as per Section 350 of Companies Act 1956 Discount on Buyback of Bonds/Redemption of Debentures Profit on Sale of Fixed Assets Profit on Sale of Investments Net Profit for the year Salaries, Perquisites and Commission @ 1.00 % of the above. Less: Salaries, Perquisites and Sitting Fees of Directors eligible for commission Balance commission (Rs. in Crores) 2001-2002 2000-2001 4,428.70 2,816.14 51.67 18.27 35.30 7,350.08 3,435.82 4.95 4.08 393.51 3,511.72 35.12 5.00 30.12 2,780.62 1,565.11 (5.80) 2.80 27.08 4,369.81 1,565.11 98.11 0.41 13.69 2,692.49 26.92 4.23 22.69 9. 10. A sum of Rs. 7.07 Crores (net debit) (Previous Year Rs. 3.01 Crores (net debit) is included in General Expenses representing Net Prior Period Items. The company has an investment of Rs. 0.21 crore in the Share Capital, loan of Rs. 11.96 Crores in Vimal Fabrics Ltd. (VFL), a wholly owned subsidiary company. The Company also has an investment of Rs. 17.54 Crores in the capital of Reliance Technologies LLC (RTLLC), representing 90% membership interest. The losses of VFL and RTLLC exceed their paid-up Capital and Reserves as on 31st March, 2002. In view of the long-term involvement of the company in the said companies, no provision has been made in the accounts for the loss that may arise. 11. (a) Fixed assets taken on finance lease prior to April 1,2001, amount to Rs. 330.23 Crores. (Previous year Rs. 344.66 Crores). Future obligations towards lease rentals under the lease agreements as on 31st March, 2002 amount to Rs. 97.13 Crores (Previous year Rs. 38.78 Crores) as follows: Within one year Later than one year and not later than five years Later than five years Total (Rs. in Crores) 27.52 67.05 2.56 97.13 (b) The Company has acquired certain items of Plant & Machinery and Ships on finance lease after 1st April, 2001, amounting to Rs. 29.62 Crores. The minimum lease rentals outstanding as of 31st March, 2002 in respect of these assets are as follows: Due Within one year Later than one year and not later than five years Later than five years Total Total Minimum Lease Payments outstanding as on 31.03.2002 8.93 18.69 0.37 27.99 Future interest on Outstanding (Rs. in Crores) Present value of Minimum Lease Payments 0.51 2.60 0.18 3.29 8.42 16.09 0.19 24.70 (c) General description of lease terms i) Lease rentals are charged on the basis of agreed terms. ii) Assets are taken on lease over a period of 3 to 15 years. RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) Reliance Industries Limited 95 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts SCHEDULE ‘O’ (Contd.) 12. a) Assets given on finance lease on or after 1st April, 2001 Particulars Gross investment Less: Unearned finance income Present value of minimum lease rentals Total 112.93 54.25 58.68 Not later than one year Later than one year and not later than five years Later than five years 11.37 8.32 3.05 45.49 28.32 17.17 56.07 17.61 38.46 (Rs. in Crores) b) General description of lease terms Lease rentals are charged on the basis of agreed rate of interest. i) ii) Assets are given on lease for a period of ten years. c) Miscellaneous Income includes income from lease of Rs. 0.59 Crore (Previous Year Rs. NIL). 13. As per Accounting Standard (AS-22) on Accounting for taxes on Income issued by the Institute of Chartered Accountants of India, the provision for deferred tax as at 1.4.2001 has been computed at Rs.1,064.82 Crores, and is charged to revenue reserves. The deferred tax liability as at 31st March, 2002 comprises of the following: a. Deferred Tax Liability Related to Fixed Assets b. Deferred Tax Assets Disallowances under Income Tax Act, 1961 Provision for Doubtful Debts c. Provision for Deferred Tax Liability (Net) 14. EARNINGS PER SHARE a. Net Profit available for equity shareholders (Numerator used for calculation) b. Weighted Average No. of equity shares used as denominator for calculating EPS (Including shares to be issued to erstwhile RPL shareholders) c. Basic and Diluted Earnings per share (Rs.) (Equity Share of face value of Rs. 10 each) (Rs. in Crores) 2,289.70 228.88 2,060.82 188.90 39.98 (Rs. in Crores) 2001-2002 2000-2001 3,242.70 2,645.62 138,83,25,291 1,05,37,57,027 23.36 25.11 96 Reliance Industries Limited RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts SCHEDULE ‘O’ (Contd.) 15. As per Accounting Standard (AS-18) on Related party disclosures issued by the Institute of Chartered Accountants of India, the disclosure of transactions with the related party as defined in the Accounting Standard are given below: (i) List of Related Parties with whom transactions have taken place and Relationships : Sr No. Name of the Related Party Vimal Fabrics Limited Reliance Industrial Investments and Holdings Limited Reliance Power Ventures Limited Reliance Ventures Limited Reliance Petroinvestments Limited Reliance Strategic Investments Limited Reliance LNG Private Limited Reliance Infocom Inc. Reliance Technologies LLC. Reliance Infocom B.V. Reliance Life Insurance Company Limited (Subsidiary upto 14th January, 2002) Reliance General Insurance Company Limited (Subsidiary upto 14th January, 2002) Reliance Capital Limited BSES Limited Reliance Infocomm Limited (formerly Reliance Communications Limited) Reliance Communications Infrastructure Limited (formerly Reliance Infocom Limited) Reliance Telecom Limited Reliance Industrial Infrastructure Limited Reliance Europe Limited Reliance Ports and Terminals Limited Reliance Utilities and Power Limited Reliance Salgaoncar Power Company Limited Reliance Enterprises Limited Reliance Global Trading Private Limited Unincorporated Oil & Gas Joint Ventures Late Sh. Dhirubhai H. Ambani Sh. Mukesh D. Ambani Sh. Anil D. Ambani Sh. Nikhil R. Meswani Sh. Hital R. Meswani Sh. H. S. Kohli Sh. R. H. Ambani Smt. K. D. Ambani 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Relationship Subsidiary Companies Associate Companies & Joint Ventures Key Management Personnel Relatives of Key Management Personnel Dhirubhai Ambani Foundation Others Jamnaben Hirachand Ambani Foundation Hirachand Govardhandas Ambani Public Charitable Trust RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) Reliance Industries Limited 97 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts SCHEDULE ‘O’ (Contd.) (ii) Transactions during the year with related parties: Nature of Transaction Sr. No. Subsi- diaries Associates Relatives Others Total (Rs. in Crores) Key Management of Key Personnel Management Personnel A) B) C) D) E) F) (a) (b) (c) G) H) I) J) K) 99.46 905.52 18.38 257.96 191.57 2,988.98 Loans Taken during the year Repaid during the year Balance as at 31st March, 2002 Fixed Assets/ Capital Work in Progress Assets taken on Lease during the year Balance of Assets taken on Lease as at 31st March, 2002 Assets given on Lease during the year Assets purchased during the year Assets sold during the year Investments Purchased during the year Sold during the year Balance as at 31st March, 2002 Interest accrued on Investments Sundry Debtors as at 31st March, 2002 Loans & Advances Loans Given during the year Returned during the year Balance as at 31st March, 2002 Advances recoverable in cash or in kind Given during the year Returned during the year Balance as at 31st March, 2002 Deposits Given during the year Returned during the year Balance as at 31st March, 2002 Sundry Creditors Balance as at 31st March, 2002 Turnover Other Income Dividend Interest Received Lease Rental Income Miscellaneous Income Purchases Expenditure Interest Paid Payments to and provisions for Directors Sitting Fees (Rs 28,690) Electric Power, Fuel and Water Rent Telephone Charges Lease Rentals Professional Fees Charter Hire Charges Insurance Premium Assignment of Liability Tank Farm Charges Hire Charges Donations Warehousing and Distribution Charges L) Others Guarantees Issued Financial Guarantees Performance Guarantees 2.25 0.08 31.40 65.59 10.00 29.62 207.43 58.68 4.66 406.54 78.00 2,537.70 398.47 166.94 14,006.73 12,833.16 1,926.52 2,235.46 53.70 2,322.14 40.00 2.83 42.74 0.12 1,155.31 582.22 23.09 20.29 415.66 0.59 98.00 0.09 40.93 420.13 3.00 2.99 56.69 18.09 10.52 49.55 167.09 6.20 46.55 830.51 1.25 624.40 3,548.77 35.58 — 26.89 31.40 65.59 10.00 29.62 207.43 58.68 6.91 0.08 506.00 78.00 3,443.22 416.85 166.94 14,264.69 13,024.73 4,915.50 2,235.46 53.70 2,322.14 40.00 2.83 42.74 1,155.43 582.22 20.29 438.75 0.59 98.00 0.09 40.93 35.58 — 420.13 3.00 2.99 56.69 18.09 10.52 49.55 167.09 6.20 46.55 26.89 830.51 1.25 624.40 3,548.77 Note: Related Party disclosure for previous year is not included in above, as Accounting Standard (AS-18) issued by the Institute of Chartered Accountant of India has become mandatory from 1st April, 2001. 98 Reliance Industries Limited RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts SCHEDULE ‘O’ (Contd.) 16. As per Accounting Standards (AS-21), on Consolidated Financial Statements issued by the Institute of Chartered Accountants of India, the Company has presented Consolidated Financial Statement including subsidiaries separately in this annual report. 17. Miscellaneous Expenditure (to the extent not written off / or adjusted) of Rs. 62.86 Crores (Previous Year Rs. NIL) represents unamortised portion of amount disbursed on account of Employees Seperation Scheme announced at Naroda during the year. 18. PROJECT DEVELOPMENT EXPENDITURE (in respect of Projects upto 31st March, 2002 included under Capital work in progress) Opening Balance Add: On Amalgamation 2001-2002 Rs. Rs. 6.52 83.84 Project Development Expenditure transferred from Profit and Loss Account Interest Capitalised 1.81 67.49 Less: Project Development Expenses Capitalised during the year Closing Balance 19. Additional Information 69.30 159.66 94.80 64.86 (Rs. in Crores) 2000-2001 Rs. 1.30 12.57 Rs. 8.73 — 13.87 22.60 16.08 6.52 As at 31st March 2002 (Rs. in Crores) As at 31st March 2001 (a) Estimated amount of contracts remaining to be executed on Capital accounts and not provided for (b) Uncalled liability on partly paid Shares/ Warrant Equity Shares (Rs 19,935) (c) Contingent Liabilities (i) Outstanding guarantees furnished to Banks and Financial Institutions including in respect of Letters of credit (ii) Guarantees to Banks and Financial Institutions against credit facilities extended to third parties (iii) Liability in respect of bills discounted with Banks (iv) Claims against the Company / disputed liabilities not acknowledged as debts (v) Sales tax deferral liability assigned 453.12 — 235.50 624.40 19.19 357.32 2,511.71 221.43 432.68 244.75 861.40 312.81 386.97 235.27 (d) The Income-Tax assessments of the Company have been completed up to Assessment Year 1999-2000. The disputed demand outstanding up to the said Assessment Year is Rs. 233.32 Crores. 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 in respect of disputed matters which are pending in appeals. RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) Reliance Industries Limited 99 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts SCHEDULE ‘O’ (Contd.) 20. LICENSED AND INSTALLED CAPACITY (As certified by the Management) Refining of Crude Oil Mill. MT N.A. N.A. 27 - Licensed Capacity Installed Capacity UNIT 2001-2002 2000-2001 2001-2002 2000-2001 a b c d e f g h i j k l i ii iii iv v vi i ii i ii Ethylene Propylene Benzene Toluene Xylene Butadine & Other C4s Paraxylene Orthoxylene Mono Ethylene Glycol Higher Ethylene Glycol iii Ethylene Oxide i ii Chlorine Caustic Soda iii Hydrogen Poly Vinyl Chloride High/Linear Low Density Poly Ethylene (Swing Plant) LDPE High Density Polyethylene Pipes Polypropylene Purified Terephthalic Acid Polyester Filament Yarn/Polyester Chips m Polyester Staple Fibre/ Polyester Chips n o p q r s Poly Ethylene Terephthalate Polyester Staple Fibre Fill Man-made Fibre Spun Yarn on worsted system (Spindles) Man-made Fibre on cotton system (Spindles) i ii Man-made Fabrics (Looms) Knitting M/c Linear Alkyl Benzene MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT Nos Nos Nos Nos MT 1,550,000 1,550,000 750,000 750,000 755,000 755,000 365,000 365,000 291,000 291,000 291,000 291,000 197,000 197,000 197,000 197,000 165,000 165,000 165,000 165,000 465,000 465,000 225,000 225,000 1,646,000 1,646,000 1,646,000 1,646,000 150,000 150,000 150,000 150,000 600,000 600,000 300,000 300,000 75,000 75,000 75,000 75,000 37,500 37,500 50,000 50,000 708,800 708,800 800,000 800,000 20,160 20,160 - - - - - - N.A. N.A. N.A. N.A. 300,000 270,000 400,000 320,000 150,000 150,000 - - N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 22 N.A. N.A. 80,000 80,000 N.A. 1,000,000 960,000 N.A. 975,000 975,000 N.A. 152,300 + 152 300 + N.A. N.A. N.A. N.A. N.A. N.A. 22 N.A. 235,000 235,000 80,000 80,000 30,000 30,000 24,094 24,094 23,040 23,040 323 20 603 20 100,000 100,000 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 40 100 Reliance Industries Limited RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts SCHEDULE ‘O’ (Contd.) 21. The Department of Company Affairs, Government of India vide its Order No. 46/28/2002/CL-III dated March 19, 2002 issued under Section 211 (4) of the Companies Act, 1956 has exempted the company from disclosure of quantitative details in the Profit and Loss Account under paras 3(i)(a), 3(ii)(a) and 3(ii)(b) of Part II, Schedule VI to the Companies Act, 1956. 22. PRODUCTION MEANT FOR SALE Products Crude Oil Gas Petroleum Products Ethylene Propylene Benzene Toluene Xylene Orthoxylene Paraxylene Ethylene Glycol PVC PE PP PTA Polyester Filament Yarn Polyester Staple Fibre PET Fibre Fill Fabrics Normal Paraffin LAB 23. VALUE OF IMPORTS ON CIF BASIS IN RESPECT OF Raw Materials Stores & Spares, Dyes and Chemicals Capital Goods 24. EXPENDITURE IN FOREIGN CURRENCY Interest on Foreign Currency Loans Technical Know-how and Engineering Fees Oil and Gas Activity Professional Fees Freight and Forwarding Other Matters Unit MT BBTU MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT 2001-2002 2000-2001 3,97,100 27,295 4,10,887 27,840 2,44,22,216 - 51,476 2,792 27,763 5,025 1,86,386 2,06,904 85,434 35,891 1,56,768 7,07,088 2,32,370 2,88,864 3,70,055 10,36,258 6,14,226 2,82,250 2,88,415 78,143 14,178 68,963 26,737 1,10,196 11,49,608 2,19,370 2,87,359 3,59,927 8,17,630 6,03,466 2,35,575 3,02,429 70,680 16,313 Mtrs in Lacs 202.74 330.62 MT MT 19,511 1,06,064 11,866 1,10,164 2001-2002 24,567.77 584.23 117.90 (Rs. in Crores) 2000-2001 3,407.85 395.06 47.73 2001-2002 (Rs. in Crores) 2000-2001 504.82 78.96 50.54 96.57 155.50 161.45 553.86 12.73 112.55 98.11 26.16 48.09 RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) Reliance Industries Limited 101 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts SCHEDULE ‘O’ (Contd.) 25. VALUE OF RAW MATERIALS CONSUMED Imported Indigenous 2001-2002 2000-2001 Rs in Crores % of Consumption Rs in Crores % of Consumption 25,286.57 1,202.84 95.46 4.54 3,709.88 5,720.21 39.34 60.66 26,489.41 100.00 9,430.09 100.00 26. VALUE OF STORES, CHEMICALS AND PACKING MATERIALS CONSUMED 2001-2002 2000-2001 Rs in Crores % of Consumption 683.84 436.57 61.03 38.97 1,120.41 100.00 Rs in Crores 374.22 431.93 806.15 % of Consumption 46.42 53.58 100.00 Imported Indigenous 27. EARNINGS IN FOREIGN EXCHANGE FOB Value of Exports Interest Others - Charter Hire Income 28. EXPENDITURE ON RESEARCH AND DEVELOPMENT Total Revenue Expenditure including amortisation of deferred cost and Unamortised Deferred Research and Development Expenditure Capital Expenditure on Research & Development Total 29. REMITTANCE IN FOREIGN CURRENCY ON ACCOUNT OF DIVIDEND The Company has paid dividend in respect of shares held by Non-Residents on repatriation basis. This inter-alia includes portfolio investment and direct investment, where the amount is also credited to Non-Resident External Account (NRE A/c). The exact amount of dividend remitted in foreign currency cannot be ascertained. The total amount remittable in this respect is given herein below: (a) Number of Non-Resident Shareholders (b) Number of Equity Shares held by them (c) (i) Amount of Dividend Paid (Gross) (Rs. in Crores) Tax Deducted at Source Rs. Nil (Previous Year Nil) 2001-2002 Rs. 9,965.37 0.48 — (Rs. in Crores) 2000-2001 Rs. 4,710.07 141.24 2.97 2001-2002 Rs. 74.94 (Rs. in Crores) 2000-2001 Rs. 47.68 15.20 90.14 1.99 49.67 2001-2002 2000-2001 19,665 27,682 62,01,32,501 21,23,94,239 126.24 84.96 (ii) Year to which dividend relates 2000-2001 1999-2000 Note : The amount of dividend for the year 2001-2002 includes Rs. 18.31 Crores paid to 2,099 shareholders of erstwhile RPL holding 36,61,86,482 shares, for the financial year ended March 31, 2001. 102 Reliance Industries Limited RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts 30. BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE I. Registration Details Registration No. : 1 1 - 1 9 7 8 6 State Code: Balance Sheet Date : 3 1 - 0 3 - 0 2 II. Capital Raised during the year (Amount Rs. Crores) Public Issue : Bonus Issue : N I N I L L Rights Issue : Private Placement : (Preference Shares) Conversion of Bonds : N I L Exercise of warrants III. Position of Mobilisation and Deployment of Funds (Amount Rs. Crores) 1 1 N I L N I L N I L Total Liabilities : Sources of Funds 5 6 5 4 7 . 3 9 Total Assets : 5 6 5 4 7 . 3 9 Paid-up Capital : 1 0 5 3 . 5 6 Reserves and Surplus : 2 6 4 7 9 . 4 1 Equity Share Suspense 3 4 2 . 2 9 Deferred Tax Liability : 2 0 6 0 . 8 2 Secured Loans : 1 4 1 8 8 . 8 9 Unsecured Loans : 4 7 3 9 . 5 9 Application of Funds Net Fixed Assets : 3 3 1 8 3 . 7 1 Investments : 3 8 5 0 . 1 6 Net Current Assets: 1 1 7 6 7 . 8 3 Miscellaneous Expenditure 6 2 . 8 6 IV. Performance of Company (Amount Rs. Crores) Gross Turnover : 5 7 1 1 9 . 5 7 Net Turnover : 4 2 0 8 8 . 9 0 Total Expenditure : 3 7 9 4 6 . 4 1 Profit Before Tax : 4 4 2 8 . 7 0 Profit After Tax : 3 2 4 2 . 7 0 Earnings per share in Rs. 2 3 . 3 6 Dividend : Rs. per share 4 . 7 5 V. Generic Names of Three Principal Products of Company (as per monetary terms) Item Code No. (ITC Code) : 2 7 . 1 0 Product Description : B U L K P E T R O L E U M P R O D U C T S 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 & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants D. Chaturvedi Partner R. J. Shah Partner Mumbai Dated: 30th September, 2002 M.D.Ambani A.D.Ambani N.R.Meswani H.R.Meswani H.S.Kohli U.Mahesh Rao R.H.Ambani M.L.Bhakta T.Ramesh U.Pai Y.P.Trivedi Dr.D.V.Kapur M.P.Modi V.M.Ambani } } Executive Directors - Nominee Director Directors - Company Secretary - Chairman & Managing Director - Vice-Chairman & Managing Director RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) Reliance Industries Limited 103 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Statement Pursuant to Section 212 of the Companies Act, 1956, relating to Company’s Interest in Subsidiary Companies. Name of Subsidiary Company Vimal Fabrics Ltd. Reliance Industrial Investments and Holdings Ltd. Reliance Ventures Ltd. Reliance Power Ventures Ltd. 31st March, 2002 31st March, 2002 31st March, 2002 31st March, 2002 30th September, 1985 30th December, 1988 7th October, 1999 13th May, 2000 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 20,20,000 Equity Shares of the face value of Rs.10 each fully paid-up 100% 100% 100% 100% 1. The financial year of the Subsidiary Companies ended on 2. Date from which they became Subsidiaries Companies 3 a. Number of shares held by Reliance Industries Ltd. with its nominees in the subsidiaries at the end of the financial year of the Subsidiary Companies b. Extent of interest of holding company at the end of the financial year of the Subsidiary Companies 4. The net aggregate amount of the Subsidiary Companies Profit / (Loss) so far as it concerns the members of the Holding Company a. Not dealt with in the Holding Company’s accounts: i) For the financial year ended Rs.1.24 Lakhs Rs.3,760.83 Lakhs (Rs.0.55 Lakhs) Rs.856.68 Lakhs 31st March, 2002 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: (Rs. 1,197.66 Lakhs) Rs. 8,232.72 Lakhs (Rs. 0.33 Lakhs) Rs. 0.84 Lakhs i) For the financial year ended NIL NIL NIL 31st March, 2002 ii) For the previous financial years of the Subsidiary Companies since they became the Holding Company’s subsidiaries NIL Rs. 2,673.89 Lakhs NIL NIL NIL 104 Reliance Industries Limited RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Statement Pursuant to Section 212 of the Companies Act, 1956, relating to Company’s Interest in Subsidiary Companies. Reliance Petro- Investments Ltd. (See Note 4) Reliance Strategic Investments Ltd. Reliance LNG Private Ltd. Reliance Infocom B.V. Reliance Infocom Inc. (See Note 1) Reliance Technologies LLC 31st March, 2002 31st March, 2002 31st March, 2002 31st March, 2002 31st March, 2002 31st March, 2002 6th December, 2001 28th December, 2001 2nd January, 2002 31st December, 2000 31st December, 2000 2nd May, 2000 88,77,551 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 45,000 Equity Shares of the face value of Rs.10 each fully paid-up 11,120 shares of the face value of EUR 100 each fully paid-up — 100 shares aggregating to US $ 9,00,000 fully paid-up, held by Reliance Infocom B.V. 100% 100% 90% 100% 100% 90% (Rs. 42.36 Lakhs) Rs. 0.41 Lakhs (Rs. 0.11 Lakhs) EUR 5878 (Rs.0.02 Crores) (US $ 22665) (Rs. 0.11 Crores) Not applicable Not applicable Not applicable Not applicable NIL NIL NIL NIL Not applicable Not applicable Not applicable NIL Notes : 1. 100% Subsidiary of Reliance Infocom BV. 2. Figures in bracket represent losses. 3. Following companies ceased to be subsidiaries of the company during the year: a. Reliance General Insurance Company Limited. b. Reliance Life Insurance Company Limited. (US $ 1,274) (Rs. 59394) NIL NIL 4. Reliance Petroinvestments Limited ceased to be a subsidiary of the company with effect from 17th April, 2002. For and on behalf of the Board (US $ 2,104,277) (Rs. 10.04 Crores) (US $ 1,768,519) (Rs. 8.24 Crores) NIL NIL M.D.Ambani A.D.Ambani N.R.Meswani H.R.Meswani H.S.Kohli U.Mahesh Rao R.H.Ambani M.L.Bhakta T.Ramesh U.Pai Y.P.Trivedi Dr.D.V.Kapur M.P.Modi V.M.Ambani Mumbai Dated: 30th September, 2002 } } Executive Directors - Nominee Director Directors - Company Secretary - Chairman & Managing Director - Vice-Chairman & Managing Director RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) Reliance Industries Limited 105 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Cash Flow Statement Annexed to the Balance Sheet for the period April 2001-March 2002 A: CASH FLOW FROM OPERATING ACTIVITIES : Net Profit after tax as per Profit and Loss Account 3,242.70 2,645.62 2001-2002 (Rs. in Crores) 2000-2001 Rs. Rs. Rs. Rs. Adjusted for : Extra-Ordinary items Net Prior Year Adjustments Current Tax Provision Deferred Tax Provision Provision for Doubtful Debts Provision for Diminution in value of Investments Profit/(Loss) on Sale of Discarded Assets Depreciation Transferred from General Reserve Discount on Buyback of Bonds/Redemption of Debentures Effect of Exchange Rate Change Profit on Sale of Investments Dividend Income Interest Interest Expenses Operating Profit before Working Capital Changes Adjusted for : Trade and Other Receivables Inventories Trade Payables (411.70) 7.07 190.00 996.00 51.67 0.05 14.19 3,435.82 (619.68) (4.95) 76.88 (35.17) (23.78) (541.11) 1,825.10 (544.62) 307.61 (383.50) Cash Generated from Operations Net Prior Year Adjustments Taxes Paid Extra-Ordinary items 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 — 3.01 135.00 — (5.80) — 2.39 2,636.73 (1,071.62) (98.11) (548.23) (13.70) (20.11) (201.57) 1,215.99 (591.77) (476.65) 1,271.91 4,960.39 8,203.09 (620.51) 7,582.58 (7.07) (105.87) 53.36 7,523.00 (1,681.53) 62.59 (14,830.11) 15,826.55 — (3,568.81) 239.19 23.78 (3,928.34) 2,033.98 4,679.60 203.49 4,883.09 (3.01) (132.00) — 4,748.08 (906.18) 15.10 (4,292.52) 1,521.80 2,124.87 (1,066.51) 159.44 20.11 (2,423.89) 106 Reliance Industries Limited RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Cash Flow Statement Annexed to the Balance Sheet for the period April 2001-March 2002 C: CASH FLOW FROM FINANCING ACTIVITIES : Proceeds from Issue of Share Capital (net) 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 Rs. 2001-2002 Rs. (Rs. in Crores) 2000-2001 Rs. Rs. 2.11 — 15,717.89 (14,210.94) (1,061.91) (685.35) (1,739.02) — (1,977.22) 1,617.44 0.67 (292.95) 8,117.61 (9,689.35) (368.98) (425.33) (1,193.67) 546.89 (3,305.11) (980.92) Opening Balance of Cash and Cash Equivalents On Amalgamation 100.63 42.64 143.27 1,081.55 — 1,081.55 Closing Balance of Cash and Cash Equivalents 1,760.71 100.63 For and on behalf of the Board M.D.Ambani A.D.Ambani N.R.Meswani H.R.Meswani H.S.Kohli U.Mahesh Rao R.H.Ambani M.L.Bhakta T.Ramesh U.Pai Y.P.Trivedi Dr.D.V.Kapur M.P.Modi V.M.Ambani Mumbai Dated: 30th September, 2002 Auditors’ Report - Chairman & Managing Director - Vice-Chairman & Managing Director Executive Directors - Nominee Director Directors } } - Company Secretary 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, 2002 and 31st March, 2001 and the records maintained by erstwhile Reliance Petroleum Limited and found the same in agreement therewith. For Chaturvedi & Shah Chartered Accountants D. Chaturvedi Partner Mumbai Dated: 30th September, 2002 For Rajendra & Co. Chartered Accountants R.J. Shah Partner RIL Notes of Accoutns.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:14)(cid:8)(cid:16)(cid:17) Reliance Industries Limited 107 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 108 Reliance Industries Limited RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) CONSOLIDATED FINANCIAL STATEMENTS AND NOTES Auditors’ Report on Consolidated Financial Statements TO THE BOARD OF DIRECTORS RELIANCE INDUSTRIES LIMITED We have examined the attached Consolidated Balance Sheet of Reliance Industries Limited (“the Company”) and its subsidiaries as at 31st March, 2002, and the Consolidated Profit and Loss Account for the year then ended annexed thereto. These financial statements are the responsibility of the Company’s Management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards in India. These Standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework and are free of material misstatements. An audit includes, examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating financial statements. We believe that our audit provides a reasonable basis for our opinion. the overall We did not audit the financial statements of certain subsidiaries, whose financial statements reflect total assets (net) of Rs. 10.50 Crores as at 31st March, 2002 and total revenues of Rs. 6.97 Crores for the year then ended. These financial statements have For Chaturvedi & Shah Chartered Accountants D. Chaturvedi Partner Mumbai Dated: 30th September, 2002 been audited by other auditors whose reports have been furnished to us, and our opinion , in so far as it relates to the amounts included in respect of these subsidiaries, is based solely on the report of the other auditors. We report that the consolidated financial statements have been prepared by the Company in accordance with the requirements of Accounting Standard (AS) 21, Consolidated Financial Statements, issued by the Institute of Chartered Accountants of India and on the basis of the separate audited financial statements of the Company and its subsidiaries included in the consolidated financial statements. On the basis of the information and explanations given to us and on the consideration of the separate audit reports on individual audited financial statements of the Company and its subsidiaries, we are of the opinion that the said consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India : (a) in the case of the Consolidated Balance Sheet, of the its the Company and consolidated state of affairs of subsidiaries as at 31st March, 2002 and (b) in the case of the Consolidated Profit and Loss Account, of the consolidated results of operations of the Company and its subsidiaries for the year then ended. For Rajendra & Co. Chartered Accountants R.J. Shah Partner RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Reliance Industries Limited 109 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Consolidated Balance Sheet as at 31st March, 2002 Schedule (Rs. in Crores) As at 31st March, 2002 Rs. Rs. ‘A’ ‘B’ ‘C’ ‘D’ ‘E’ ‘F’ ‘G’ ‘H’ ‘M’ ‘N’ SOURCES OF FUNDS Shareholders’ Funds Share Capital - Equity Equity Share Suspense Reserves and Surplus Minority Interest Deferred Tax Liability 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 Inventories Sundry Debtors Cash and Bank Balances Other Current Assets Loans and Advances Less: Current Liabilities and Provisions Current Liabilities Provisions Net Current Assets Miscellanous Expenditure (to the extent not written off or adjusted) [Ref. Note 19, Schedule ‘N’] TOTAL Significant Accounting Policies Notes on Accounts As per our Report of even date For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants D. Chaturvedi Partner R. J. Shah Partner Mumbai Dated: 30th September, 2002 1,053.56 342.29 26,580.91 14,209.75 4,739.59 46,727.47 15,076.94 31,650.53 1,533.31 4,974.07 2,725.54 1,763.56 409.74 9,872.91 6,590.99 16,463.90 6,499.90 1,210.63 7,710.53 27,976.76 0.07 2,060.83 18,949.34 48,987.00 33,183.84 6,986.90 8,753.37 62.89 48,987.00 - Chairman & Managing Director - Vice-Chairman & Managing Director Executive Directors For and on behalf of the Board M.D.Ambani A.D.Ambani N.R.Meswani H.R.Meswani H.S.Kohli U.Mahesh Rao R.H.Ambani M.L.Bhakta T.Ramesh U.Pai Y.P.Trivedi Dr.D.V.Kapur M.P.Modi V.M.Ambani } } Directors - Nominee Director - Company Secretary 110 Reliance Industries Limited RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Consolidated Profit and Loss Account for the year ended 31st March, 2002 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedule ‘I’ ‘J’ ‘K’ ‘L’ Rs. 57,126.48 11,715.69 45,410.79 3,314.98 3,435.84 619.68 INCOME Gross Turnover Less: Inter Divisional Transfers Turnover Less Excise Duty Recovered on Sales Net Turnover Other Income Variation in Stock EXPENDITURE Purchases Manufacturing and Other Expenses Interest Depreciation Less : Transferred from General Reserve [Refer Note 8, Schedule ‘N’] Profit Before Tax and Extra Ordinary Income Add : Extra Ordinary Income [Ref. Note No. 10, Schedule ‘N’] Profit Before Tax Provision for Current Taxation Provision for Deferred Tax Profit after Tax (before adjustment for Minority Interest) Add : Share of Loss transferred to Minority Proft after Tax (after adjustment for Minority Interest) Add : Balance brought forward from last year On Amalgamation Deferred Tax liability for Earlier Years Taxation for earlier years Investment Allowance (utilised) Reserves Written Back Amount Available For Appropriations APPROPRIATIONS Debenture Redemption Reserve Capital Reserve General Reserve Proposed Dividend on Equity Shares (Subject to deduction of tax at source) Balance Carried to Balance Sheet Basic & Diluted Earnings per Share of Rs. 10 each (In Rupees) [Refer Note 17, Schedule ‘N’] Significant Accounting Policies Notes on Accounts ‘M’ ‘N’ 142.95 4.95 2,000.00 663.28 (Rs. in Crores) As at 31st March, 2002 Rs. 42,095.81 831.79 (907.83) 42,019.77 1,697.84 31,624.59 1,827.97 2,816.16 37,966.56 4,053.21 411.70 4,464.91 190.03 996.01 3,278.87 1.03 3,279.90 2,219.81 1,071.50 (1,064.82) 1.19 122.07 5,629.65 2,811.18 2,818.47 23.62 As per our Report of even date For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants D. Chaturvedi Partner R. J. Shah Partner Mumbai Dated: 30th September, 2002 - Chairman & Managing Director - Vice-Chairman & Managing Director Executive Directors For and on behalf of the Board M.D.Ambani A.D.Ambani N.R.Meswani H.R.Meswani H.S.Kohli U.Mahesh Rao R.H.Ambani M.L.Bhakta T.Ramesh U.Pai Y.P.Trivedi Dr.D.V.Kapur M.P.Modi V.M.Ambani } } Directors - Nominee Director - Company Secretary RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Reliance Industries Limited 111 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Consolidated Balance Sheet SCHEDULE ‘A’ SHARE CAPITAL Authorised: Schedule (Rs. in Crores) As at 31st March, 2002 Rs. Rs. 120,00,00,000 Equity Shares of Rs. 10 each 10,00,00,000 Preference Shares of Rs. 100 each Issued, Subscribed and Paid up: 105,37,57,027 Equity Shares of Rs. 10 each fully paid up Less: Calls in arrears - by others 1,053.76 0.20 1,200.00 1,000.00 2,200.00 1,053.56 1,053.56 Notes: 1. Of the above Equity Shares: (a) (b) (c) 48,17,70,552 Shares were allotted as Bonus Shares by capitalisation of Share Premium and Reserves. 18,05,78,290 Shares were allotted pursuant to Schemes of Amalgamation without payments being received in cash. 33,04,27,345 Shares were allotted on conversion / surrender of Debentures and Bonds, conversion of Term Loans, exercise of warrants, against Global Depository Shares and re-issue of forfeited equity shares. 2. The Company has reserved issuance of 5,26,87,851 Equity Shares of Rs. 10 each for offering to employees under Employees Stock Option Scheme. 112 Reliance Industries Limited RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Consolidated Balance Sheet SCHEDULE ‘B’ RESERVES AND SURPLUS Revaluation Reserve As per last Balance Sheet Less: Deduction on retirement of Revalued Assets Capital Reserve As per last Balance Sheet Add : On Amalgamation Add : Transferred from Profit and Loss Account Capital Redemption Reserve As per last Balance Sheet Add : Transferred from Profit and Loss Account Securities Premium Account As per last Balance Sheet On Amalgamation Add : Less: Premium on Redemption of Debentures/Bonds Less: Calls in arrears - by others Debenture Redemption Reserve As per last Balance Sheet On Amalgamation Add : Transferred from Profit and Loss Account Add : Investment Allowance (Utilised) Reserve As per last Balance Sheet Less: Transferred to Profit and Loss Account Taxation Reserve As per last Balance Sheet General Reserve As per last Balance Sheet Less: Transferred to Profit and Loss Account * [Refer Note 8(a) & 8(b), Schedule ‘N’] Add : Transferred from Profit and Loss Account Profit and Loss Account (Rs. in Crores) As at 31st March, 2002 Rs. Rs. 2,770.78 32.28 285.68 0.65 4.95 485.07 — 5,449.22 10,739.67 16,188.89 35.08 16,153.81 4.23 852.46 130.17 142.95 198.70 122.07 1,505.48 619.68 885.80 2,000.00 2,738.50 291.28 485.07 16,149.58 1,125.58 76.63 10.00 2,885.80 2,818.47 26,580.91 * Cumulative amount transferred on account of Depreciation on Revaluation Rs. 2,301.38 Crores RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Reliance Industries Limited 113 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Consolidated Balance Sheet SCHEDULE ‘C’ SECURED LOANS A) DEBENTURES 1 2 Non-Convertible Debentures Deep Discount Debenture Less : Unamortised Discounts B) TERM LOANS 1. 2. From Banks Foreign Currency Loans From Financial Institutions Rupee Loans C) WORKING CAPITAL LOANS From Banks Rupee Loans (Rs. in Crores) As at 31st March, 2002 Rs. Rs. 8,551.58 637.20 154.32 482.88 4,289.07 4,289.07 167.20 167.20 719.02 9,034.46 4,456.27 719.02 14,209.75 Note: 1. (a) Debentures referred to in A above to the extent of Rs. 2,650.35 Crores are secured/to be secured by way of mortgage / charge on all the properties situated at Hazira, District Surat in the State of Gujarat and at Patalganga, District Raigad in the State of Maharashtra. (b) Debentures referred to in A above to the extent of Rs. 992.25 Crores are secured by way of mortgage / charge on all the properties situated at Patalganga, District Raigad in the State of Maharashtra and on the properties of petrochemicals complex situated at Jamnagar, in the State of Gujarat and on the movable properties situated at Hazira, District Surat, in the State of Gujarat. (c) Debentures referred to in A above to the extent of Rs. 162.00 Crores are secured by way of second and subservient charge, created on all the properties situated at Patalganga, District Raigad in the State of Maharashtra. (d) Debentures referred to in A above to the extent of Rs. 5,209.00 Crores are secured/to be secured by first pari passu mortgage and charge in favour of the Trustees on all the immovable and movable properties, both present and future, excluding book debts, office premises and certain other properties specifically excluded of the refinery division of the Company. (e) Debentures referred to in ‘A’ (2) above, includes Rs. 20.86 Crores, secured by way of mortage of residential property situated at Thane, in the State of Maharashtra and some of the Investments of the subisidiary of the Company, Reliance Industrial Investments and Holdings Limited. (f) Debentures referred to in A above consists of: (1) 16.5% Debentures of Rs. 100 each, aggregating Rs. 25.00 Crores are redeemable at par on the expiry of seventh year from the date of allotment, commencing from 10th October, 2002. (2) 13% Debentures of Rs. 100 each, aggregating Rs. 145.00 Crores are redeemable at par as follows: viz Rs. 45 Crores on 11th October, 2009 and Rs. 100 Crores on 17th November, 2009. (3) 14.08% Debentures of Rs. 100 each aggregating Rs. 58.33 Crores are redeemable at par in two instalments, on the expiry of sixth and seventh year from the date of allotment; commencing from 31st March, 2003 (4) 14.5% Debentures of Rs. 10,00,000 each, aggregating Rs. 112.00 Crores are redeemable at par in 19th May, 2002 (since redeemed). (5) 13.5% Debentures of Rs. 1,00,00,000 each, aggregating Rs. 50.00 Crores which are redeemable at par in three equal annual instalments on the expiry of the fifth, sixth and seventh year from the date of allotment; i.e. commencing from 15th September, 2002. (6) 12.25% Debentures of Rs. 1,00,00,000 each aggregating Rs. 325.00 Crores, are redeemable at par in three annual instalments on the expiry of fifth, sixth and seventh year from the date of allotment; commencing from 1st January, 2003. (7) 12.5% Debentures of Rs. 1,00,00,000 each aggregating Rs. 110.00 Crores are redeemable at par on the expiry of seventh year from the date of allotment i.e. 1st January, 2005. (8) 13.75% 114 Reliance Industries Limited RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Consolidated Balance Sheet Debentures of Rs. 1,00,00,000 each aggregating Rs. 110.00 Crores are redeemable at par on the expiry of the tenth year from the respective dates of allotment i.e. 1st January, 2008. (9) 13.75% Debentures of Rs. 1,00,00,000 each aggregating Rs. 80.00 Crores are redeemable at par on the expiry of the tenth year from the respective dates of allotment, i.e. 1st January, 2008. (10) 14.75% Debentures of Rs. 1,00,00,000 each aggregating Rs. 200.00 Crores are redeemable at par in three equal annual instalments, on expiry of eighth, ninth and tenth year from the respective dates of allotment; commencing from 13th February, 2006. (11) 14.25% Debentures of Rs. 1,00,00,000 each aggregating Rs. 200.00 Crores are redeemable at par on the expiry of the tenth year from the date of allotment; i.e 27th May, 2008. (12) 15.03% Debentures of Rs. 1,00,00,000 each aggregating Rs. 150.00 Crores are redeemable at par on the expiry of the tenth year from the date of allotment; i.e 12th June, 2008. (13) 15.03 % Debentures of Rs. 25,00,000 each aggregating Rs. 66.25. Crores which are redeemable at par on the expiry of the tenth year from the date of allotment; i.e. 25th June, 2008. (14) 14.25% Debentures of Rs. 1,00,00,000 each aggregating Rs. 150.00 Crores are redeemable at par on the expiry of the tenth year from the date of allotment; i.e. 9th September, 2008. (15) 15.03% Debentures of Rs. 1,00,00,000 each aggregating Rs. 21.00 Crores are redeemable at par on the expiry of the tenth year from the date of allotment; i.e. 27th September, 2008. (16) 15.03% Debentures of Rs. 1,00,00,000 each aggregating Rs. 100.00 Crores are redeemable at par on the expiry of the tenth year from the date of allotment; i.e. 4th October, 2008. (17) 14.25% Debentures of Rs. 1,00,00,000 each aggregating Rs. 100.00 Crores are redeemable at par on the expiry of the tenth year from the date of allotment; i.e. 26th November, 2008. (18) 15.03% Debentures of Rs. 1,00,00,000 each aggregating Rs. 25.00 Crores are redeemable at par on the expiry of the tenth year from the date of allotment; i.e. 20th October, 2008. (19) 11.50 % Debentures of Rs. 1,00,00,000 each aggregating Rs. 195.00 Crores are redeemable at par on the expiry of the fifty four months from the date of allotment; i.e. 12th November, 2003. (20) Deep Discount debentures aggregating Rs. 600.00 Crores are redeemable at par on the expiry of sixty months from the date of allotment; i.e. 1st June, 2008 and Deep Discount Debenture amounting to Rs. 37.20 Crores issued by RIIHL, are redeemable on 28 February, 2006. (21) 12.10% Debentures of Rs. 1,00,00,000 each aggregating Rs. 50.00 Crores are redeemable at par on the expiry of third year from the date of allotment; i.e. 15th June, 2002 (since redeemed). (22) 12.10% Debentures of Rs. 1,00,00,000 each aggregating Rs. 92.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 1st July, 2004 (since redeemed). (23) 12.70% Debentures of Rs. 1,00,00,000 each aggregating Rs. 100.00 Crores are redeemable at par on 15th December, 2007. (24) 12.36% Debentures of Rs. 1,00,00,000 each aggregating Rs. 51.00 Crores are redeemable at par on the expiry of fifth year from the respective dates of allotment; commencing from 24th August, 2004. (25) 12.35% Debentures of Rs. 1,00,00,000 each aggregating Rs. 45.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 30th August, 2004. (26) Debentures of Rs. 50,00,000 each aggregating Rs. 92.00 Crores carrying an interest rate linked to the interest rate as announced by CRISIL, which are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 10th February, 2005. (27) 10.85% Debentures of Rs. 1,00,00,000 each aggregating Rs. 50.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 24th February, 2005. (28) 11.00% Debentures of Rs. 1,00,00,000 each aggregating Rs. 75.00 Crores are redeemable at par on the expiry of third year from the date of allotment; i.e. 11th July, 2003. (29) 12.10% Debentures of Rs. 1,00,00,000 each aggregating Rs. 155.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 15th September, 2005. (30) MIBOR Linked Debentures of Rs. 1,00,00,000 each aggregating Rs. 60.00 Crores are redeemable at par on the expiry of third year from the date of allotment; i.e. 12th October, 2003.](31) 10.90% Debentures of Rs. 1,00,00,000 each aggregating Rs. 100.00 Crores are redeemable at par on the expiry of third year from the date of allotment; i.e. 19th January, 2004. (32) 9.90% Debentures of Rs. 1,00,00,000 each aggregating Rs. 50.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 15th June, 2006. (33) 9.90% Debentures of Rs. 1,00,00,000 each aggregating Rs. 50.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 21st June, 2006. (34) 9.60% Debentures of Rs. 1,00,00,000 each aggregating Rs. 50.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 22nd June, 2006. (35) 9.55% Debentures of Rs. 1,00,00,000 each aggregating Rs. 50.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 11th July, 2006. (36) 9.60% Debentures of Rs. 1,00,00,000 each aggregating Rs. 50.00 Crores are redeemable at par on the expiry of fifth year from the date of allotment; i.e. 12th July, 2006. (37) 13.5% Debentures of Rs.1,00,00,000 each aggregating Rs.200 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 30th March, 2005. (38) 13.5% Debentures of Rs.1,00,00,000 each aggregating Rs.200 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 31st March, 2005. (39) 13% Debentures of Rs.1,00,00,000 each aggregating Rs.100 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 15th June, 2005. (40) 13% Debentures of Rs.1,00,00,000 each aggregating Rs.100 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 28th June, 2005. (41) 12.75% Debentures of Rs.1,00,00,000 aggregating Rs.300 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 10th August, 2005. (42) 13.55% Debentures of Rs.1,00,00,000 each aggregating Rs.70 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 12th August, 2005 (43) 13% Debentures of Rs.1,00,00,000 each aggregating Rs.105 Crores are redeemable at par on 17th September, 2004 (44) 13.5% Debenture of Rs.1,00,00,000 is redeemable at par in 3 annual installments of 30%, 30% and 40% commencing from 17th September, 2007. (45) 13.25% Debenture of Rs.1,00,00,000 is redeemable at par in 3 annual installments of 30%, 30% and 40% commencing from 17th September, 2005. (46) 12.75% Debentures of Rs.1,00,00,000 aggregating 200 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 17th September, 2005. (47) 13.5% Debentures of Rs.1,00,00,000 each aggregating Rs.145 Crores are redeemable at par in 3 annual installments of 30%, 30% and 40% commencing from 20th September, 2007. (48) 13.5% Debentures of Rs.1,00,00,000 each aggregating Rs.272 Crores are redeemable at par in 3 annual installments of 30%, 30% and 40% commencing from 1st October, 2007. (49) 13.5% Debentures of Rs.1,00,00,000 each aggregating Rs.160 Crores are redeemable at par in 3 annual installments of 30%, 30% and 40% commencing from 11th October, 2007. (50) 13.5% Debentures of Rs.1,00,00,000 each aggregating Rs.300 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 29th September, 2005. (51) 13.5% Debentures of Rs.25,00,000 each aggregating Rs.125 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% Reliance Industries Limited 115 RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Consolidated Balance Sheet commencing from 25th October, 2005. (52) 13.94% Debentures of Rs.100 each aggregating Rs.234 Crores are redeemable at par on 1st July, 2002 (since redeemed). (53) 11.75% Debentures of Rs.1,00,00,000 each aggregating Rs.300 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 30th May, 2006. (54) 12.25% Debentures of Rs.1,00,00,000 each aggregating Rs.200 Crores are redeemable at par in 5 annual installments of 10%, 10%, 10%, 35% and 35% commencing from 22nd August, 2006 (55) 11.50% Debentures of Rs.1,00,00,000 each aggregating Rs.410 Crores are redeemable at par on 6th February, 2006. (56) 11.20% Debentures of Rs.1,00,00,000 each aggregating Rs.175 Crores are redeemable at par on 24th February, 2004. (57) 11.50% Debentures of Rs.1,00,00,000 each aggregating Rs.500 Crores are redeemable at par in 3 equal annual installments commencing from 1st March, 2006. (58) 11.30% Debentures of Rs.1,00,00,000 each aggregating Rs.50 Crores are redeemable at par on 1st March, 2006. (59) 10.75% Debentures of Rs.1,00,00,000 each aggregating Rs.163 Crores are redeemable on 2nd May, 2004 (since redeemed). (60) 11.15% Debentures of Rs.1,00,00,000 each aggregating Rs.45 Crores are redeemable at par on 2nd May, 2006. (61) 11.10% Debentures of Rs.1,00,00,000 each aggregating Rs.50 Crores are redeemable at par on 30th April, 2006. (62) 11.00% Debentures of Rs.1,00,00,000 each aggregating Rs.20 Crores are redeemable at par on 9th May, 2006. (63) 11.05% Debentures of Rs.1,00,00,000 each aggregating Rs.100 Crores are redeemable at par in 16th May, 2006. (64) 10.95% Debentures of Rs.1,00,00,000 each aggregating Rs.25 Crores are redeemable at par on 15th May, 2006. (65) 10.70% Debentures of Rs.1,00,00,000 each aggregating Rs.268 Crores are redeemable at par on 1st June, 2004 (since redeemed). (66) 9.95% Debentures of Rs.1,00,00,000 each aggregating Rs.50 Crores are redeemable at par on 8th June, 2003. (67) 9.84% Debentures of Rs.1,00,00,000 each aggregating Rs.150 Crores are redeemable at par on 26th December 2002. (68) 10.00% Debentures of Rs.1,00,00,000 each aggregating Rs.40 Crores are redeemable at par on 15 June 2006. (69) 10.00% Debentures of Rs.1,00,00,000 each aggregating Rs.50 Crores are redeemable at par in 20th June, 2006. (70) 10.00% Debentures of Rs.1,00,00,000 each aggregating Rs.50 Crores are redeemable at par on 10th July, 2006. (71) 9.90% Debentures of Rs.1,00,00,000 each aggregating Rs.50 Crores are redeemable at par on 18th July, 2006. 2. (a) Foreign currency loans referred to in B(1) above to the extent of Rs. 4,289.07 Crores, from Banks are secured/to be secured by first pari passu mortgage and charge in favour of the Lenders on the immovable and movable properties, both present and future, excluding book debts, office premises and certain other properties specifically excluded of the refinery division of the Company. (b) Rupee Term Loans referred to in B(2) (b) above to the extent of Rs. 100.00 Crores (since repaid) from Financial Institutions are secured/to be secured by first pari passu mortgage and charge in favour of the Trustees/Lenders on the immovable and movable properties, both present and future, excluding book debts, office premises and certain other properties specifically excluded of the refinery division of the Company. (c) Term Loan referred to in B(2) (b) above, to the extent of Rs.67.20 Crores are secured/to be secured only on the dwelling units constructed/to be constructed for the employees of the Company. 3. (a) The charges created on the Debentures referred to in Note 1(a) and 1(b) above shall rank pari passu, inter se. (b) The charges created on the Debentures referred to in Note 1(d), term loans referred to in Note 2(a) and 2(b), above shall rank pari passu, inter se. 4. 5. (a) Working Capital Loans from Banks referred to in C(b) above to the extent of Rs. 547.77 Crores are secured by hypothecation of present and future stock in trade, raw material, stock in process, stores and spares (not relating to Plant and Machinery), outstanding monies, receivables and Book Debts of the refinery division of the Company. (b) Working Capital Loans from Banks referred to in C(b) above to the extent of Rs.171.25 Crores are secured by hypothecation of present and future stock of raw materials, stock-in-process, finished goods, stores and spares, book debts, outstanding monies, receivable claims, etc. save and except receivable of Oil and Gas Division. Secured Loans include loans of Rs.31.60 Crores and debentures of Rs. 718.50 Crores repayable / redeemable at par within one year. SCHEDULE ‘D’ UNSECURED LOANS Long Term i) ii) From Banks From Others (Rs. in Crores) As at 31st March, 2002 Rs. Rs. 1,429.25 3,310.34 4,739.59 4,739.59 116 Reliance Industries Limited RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Consolidated Balance Sheet SCHEDULE ‘E’ FIXED ASSETS Description As At Addition On Additions/ Deductions/ As at Upto For the Deductions Upto Gross Block Depreciation (Rs. in Crores) Net Block As At OWN ASSETS: Leasehold Land Freehold Land Development Rights/ Producing Properties Buildings 1-4-2001 Amalgamation # Adjustment Adjustment 31-3-2002 1-4-2001 Rs. Rs. Rs. Rs. Rs. Rs. 52.83 42.99 1,033.47 1,499.77 — 94.91 — 775.93 3.85 21.94 34.36 238.92 — 0.10 — 0.42 56.68 159.74 3.77 — 1,067.83 2,514.20 178.52 416.25 Year Rs. 0.42 — 57.77 87.77 Plant and Machinery 21,133.44 17,674.42 1,885.83 258.73 40,434.96 10,504.71 3,076.20 702.08 318.84 120.55 78.97 213.31 46.92 113.25 16.22 193.78 45.42 16.35 1.47 — 533.72 11.48 35.82 10.52 24.01 — — — 0.54 1.55 1.36 14.82 — — — 729.24 546.89 175.13 104.51 214.78 46.92 646.97 273.61 125.03 53.31 50.03 151.94 26.66 57.84 73.88 42.91 22.35 13.35 8.80 3.27 42.45 25,356.42 19,352.22 2,266.73 277.52 46,697.85 11,841.67 3,429.17 * 200.58 15,070.26 — — 19.64 9.98 29.62 19.64 9.98 29.62 — — 5.02 1.66 6.68 5.02 1.66 6.68 — 25,356.42 19,352.22 2,296.35 277.52 46,727.47 11,841.67 3,435.85 200.58 15,076.94 Rs. — — — 0.71 187.20 0.09 0.87 0.80 10.91 — — — 31-3-2002 31-3-2002 Rs. 4.19 — 236.29 503.31 Rs. 52.49 159.74 831.54 2,010.89 13,393.71 27,041.25 347.40 167.07 74.86 52.47 160.74 29.93 100.29 381.84 379.82 100.27 52.04 54.04 16.99 546.68 31,627.59 14.62 8.32 22.94 31,650.53 1,533.31 Electrical Installation Factory Equipments Furniture and Fixtures Vehicles Ships Aircrafts Jetties Sub-Total LEASED ASSETS: Plant & Machinery Ships Sub-Total TOTAL Capital Work-in-Progress NOTES : a) b) Leasehold Land includes Rs. 0.21 Crore in respect of which lease-deeds are pending execution. Buildings include : i) ii) Cost of shares in Co-operative Societies Rs. 0.01 Crore. Rs. 93.20 Crores incurred towards purchase/acquisition of 1,94,819 Equity Shares of Re. 1 each of M/s. Mature Trading & Investments Pvt. Ltd. with a right of occupancy of certain area of a commercial premises. c) Capital Work-in-Progress includes : i) ii) Rs. 64.86 Crores on account of project development expenses. Rs. 477.04 Crores on account of cost of construction materials at site. iii) Rs. 197.62 Crores on account of advance against Capital Expenditure. Additions include Rs. 294.29 Crores on account of exchange difference during the year. 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. d) e) f) Gross Block includes Rs. 2,738.50 Crores being the amount added on revaluation of Plant & Machinery as at 01-04-1997 * Refer to Note 8(a) & (b), Schedule 'N' # Fair value of assets added on amalgamation of Reliance Petroleum Limited based on valuers’ report. RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Reliance Industries Limited 117 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Consolidated Balance Sheet SCHEDULE ‘F’ CURRENT ASSETS INVENTORIES 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 OTHER CURRENT ASSETS Interest Accrued on Investments (Rs. in Crores) As at 31st March, 2002 Rs. Rs. 844.34 2,450.39 519.83 1,159.51 112.06 108.47 220.53 108.47 112.06 2,613.48 1.49 190.19 1,571.88 4,974.07 2,725.54 1,763.56 409.74 9,872.91 # Sundry Debtors include Rs. 166.57 Crores from Reliance Communications Infrastructure Limited (formerly Reliance Infocom Limited) and Rs. 0.10 Crore receivable from Reliance Infocomm Limited (formerly Reliance Communications Limited), companies under the same management. SCHEDULE ‘G’ LOANS AND ADVANCES UNSECURED - (CONSIDERED GOOD) Advances recoverable in cash or in kind or for value to be received Deposits Balance with Customs, Central Excise Authorities, etc. (Rs. in Crores) As at 31st March, 2002 Rs. 5,947.33 499.51 144.15 6,590.99 Advances include: (i) Rs 0.20 Crore to Officers of the Company (Maximum amount outstanding at any time during the year Rs 0.21 Crore). (ii) Rs. 121.19 Crores towards Shares / Debentures Application money pending allotment. (iii) Rs. 2,213.00 Crores towards equity share application money pending allotment to Reliance Communications Infrastructure Limited (formerly Reliance Infocom Limited), a Company under the same management. (iv) Rs. 42.29 Crores receivable from Reliance Communication Infrastructure Limited (formerly Reliance Infocom Limited) and Rs. 16.39 Crores receivable from Reliance Infocomm Limited (formerly Reliance Communications Limited) towards net investment in finance Leases given. 118 Reliance Industries Limited RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules forming part of the Consolidated Balance Sheet SCHEDULE ‘H’ CURRENT LIABILITIES AND PROVISIONS CURRENT LIABILITIES Sundry Creditors - Small scale Industries Others Liability for Leased assets Unclaimed Dividend Interest accrued but not due on loans PROVISIONS Provision for Wealth Tax Provision for Income Tax Provision for Gratuity, Superannuation and Leave Encashment Proposed Dividend (Rs.in Crores) As at 31st March, 2002 Rs. Rs. 1.46 # 6,049.51 * 24.70 35.00 389.23 24.16 486.88 36.31 663.28 6,499.90 1,210.63 7,710.53 # Small scale industrial undertakings to whom amounts are due has been determined based on the information available with the Company and are as follows: Aaa Packaging Technology, Aditya Forge Ltd., Aksh India Ltd., Alliance Fittings & Forgings Limited, Anil Industrial Components, Anthia Machine Tools, Arham Steels Pvt Ltd., Ashar Industrial Corporation, Associated Products, Atisha Engineers, Baliga Lighting, Equipment, Bhavani Spring Works, Bilimoria (India), Bliss Anand Pvt Ltd., Brajesh Packaging Pvt.Ltd., Care Office Equipment Pvt. Ltd., CEAG Flameproof Control Gears P Ltd., Chandresh Cables Limited, Chokshi Graphics, Comet Brass Products, Comet Engineers, Drofketal Chemicals India Pvt. Ltd. EBY Fasteners, Electro Engineering Co Pvt Ltd., Elgi Electric And Industries Limited, Elite Printers, Essar Enterprises, Fine Polycolloids Pvt.Ltd., Globe Electrical Industries, H R Industries, Hemal Enterprise, Hi-Tech Paper Products, Horizon Offset, Igp Engineers Private Limited, Industrial Equipments Suppliers, J J Engineering Works, J.B.Industries, J.B.Packaging, Jay Nakoda Industries, Jyoti Paper Products, K.V.Fire Chemicals (India) Pvt.Ltd., Kantilal Chunilal & Sons Appliances Pvt Ltd., Kumar Tex Industries, Kwality Die Fabricators, Laxmi Air Control (P) Ltd., Malli Polymer Pvt.Ltd., Manlon Engineers Pvt.Ltd., Metabrite Industries, Metro Brush Works, Micro Engineering Pvt Ltd., Moksha Thermoplastics P.Ltd., MS Fittings Mfg Co, MTL Instruments Pvt Ltd., Nec Containers Pvt Ltd., Nippon Chemicals, Nitro Polymers, Omicron Unique Products, Paras Gears Pvt.Ltd., Paras Plastic, Pioneer Fabrics & Packaging P.Ltd., PLA Chem Industries, Polytech Industries, Praful Traders, Precise Tools, Precision Engineering Company, Programmed Engg Products Pvt Ltd., Pushpanjali Enterprises, Pooja Paper Crafts, Radha Madhav Industries, Ravi Industries, Revathi Electronic & Controls, Sajitha Traders & Engineering Works, Saurashtra Packaging, Semitronik Systems, Serve Tex Engineers, Sheeba Fabricators, Shiv Ganga Paper Converters (P) Ltd., Shree Ambica Textile Works, Shree Laxmi Krupa Engineering Works, Shree Mahesh Engineering Works, Shree Ram Engineers, Shyam Enterprise, Sigma Industries, SIP Tools, Sterdill Equipments Pvt Ltd., Sukhvir Engineering Works, Sunrise Paper & Board Mills, Supertex, Suveg Electronics, Satyam Pharma Chem Pvt. Ltd., Sanghvi Packers, T P Refrigeration, Topack Ceramics Pvt. Ltd., Tex Tube Mfg. Co., Universal Welding Works, V M Corporation, Vikrant Engineers, Vinay Electricals, Viral Electricals, Wadhwa Polyfilms Pvt. Ltd. The outstandings are within the period of agreed terms. * Includes for capital expenditure Rs. 176.16 Crores. RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Reliance Industries Limited 119 Schedules forming part of the Consolidated Profit and Loss Account (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) SCHEDULE ‘I’ OTHER INCOME Dividends : From Current Investments From Long Term Investments Interest Received : From Current Investments From Long Term Investments From Others [Tax Deducted at source Rs. 56.53 Crores] Profit/(Loss) on Sale of Investments (net) - Current - Long Term Profit on Sale of Fixed Assets Discount on Buyback of Bonds/Redemption of Debentures Miscellaneous Income Rs. 0.07 96.55 * 5.08 287.85 225.25 38.78 (4.24) (Rs. in Crores) 2001-2002 Rs. 96.62 518.18 34.54 4.17 4.95 173.33 831.79 * Includes Rs. 52.77 Crores, received by Reliance Industrial Investments and Holdings Limited from erstwhile RPL for the financial year 2000-2001. SCHEDULE ‘J’ VARIATION IN STOCKS STOCK-IN-TRADE (at close) Finished goods Stock-in-process STOCK-IN-TRADE (at commencement) Finished goods Stock-in-process Add : On Amalgamation Finished goods Stock-in-process Rs. 1,159.51 519.83 1,023.43 177.74 1,201.17 603.60 782.40 1,386.00 (Rs. in Crores) 2001-2002 Rs. 1,679.34 2,587.17 (907.83) 120 Reliance Industries Limited RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Schedules forming part of the Consolidated Profit and Loss Account (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) SCHEDULE ‘K’ MANUFACTURING AND OTHER EXPENSES RAW MATERIALS CONSUMED MANUFACTURING EXPENSES Stores, Chemicals and Packing Materials Electric Power, Fuel and Water Machinery Repairs Building Repairs Labour, Processing and Machinery Hire Charges Excise Duty provided on Stocks 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, Discount and Commission Warehousing and Distribution Expenses Sales Tax Provision for Doubtful Debts 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 : Project development expenses (net) SCHEDULE ‘L’ INTEREST Debentures Fixed Loans Others Rs. 1,120.41 739.66 102.23 28.35 146.20 (33.04) 47.91 123.47 440.56 57.16 71.73 23.86 122.42 960.78 213.94 51.67 120.62 20.43 101.88 62.71 46.36 3.69 199.19 18.27 310.46 6.00 30.07 (Rs. in Crores) 2001-2002 Rs. 26,489.41 2,275.19 569.45 1,372.67 919.68 31,626.40 1.81 31,624.59 (Rs. in Crores) 2001-2002 Rs. 1,380.52 299.12 148.33 1,827.97 RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Reliance Industries Limited 121 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Consolidated Accounts SCHEDULE ‘M’ SIGNIFICANT ACCOUNTING POLICIES TO THE CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT 1. Principles of consolidation The consolidated financial statements relate to Reliance Industries Limited ('the Company') and its subsidiary companies. The consolidated financial statements have been prepared in accordance with Accounting Standard (AS-21) "Consolidated Financial Statements" issued by the Institute of Chartered Accountants of India on the following basis: (i) The financial statements of the Company and its subsidiary companies have been combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses, after fully eliminating intra-group balances and intra-group transactions resulting in unrealised profits or losses. (ii) In case of foreign subsidiaries, revenue items have been consolidated at the average rate prevailing during the year. All assets and liabilities are converted at rates prevailing at the end of the year. Any exchange difference arising on consolidation 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. (iii) As far as possible, the consolidated financial statements have been prepared using uniform accounting policies for like transactions and other events in similar circumstances and are presented to, in the same manner as the Company's separate financial statements. (iv) Minority Interest's share of net profit of consolidated subsidiaries for the year is identified and adjusted against the income of the group in order to arrive at the net income attributable to shareholders of the company. (v) Minority Interest's share of net assets of consolidated subsidiaries is identified and presented in the consolidated balance sheet separate from liabilities and the equity of the company's shareholders. Investments other than in Subsidiary Companies have been accounted as per Accounting Standard (AS-13) on Accounting for Investments issued by the Institute of Chartered Accountants of India. Other significant accounting policies These are set out under "Significant Accounting Policies" as given in the financial statements of Reliance Industries Limited and its Subsidiaries. 2. 3. SCHEDULE ‘N’ NOTES ON ACCOUNTS TO CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT: 1. The subsidiary companies considered in the consolidated financial statements are : Name of the subsidiaries Vimal Fabrics Limited Reliance Industrial Investments and Holdings Limited Reliance Power Ventures Limited Reliance Ventures Limited Reliance Strategic Investments Limited Reliance LNG Private Limited Reliance Infocom B.V. Reliance Infocom Inc. Reliance Technologies LLC. Country of incorporation Proportion of ownership interest India India India India India India Netherlands U.S.A. U.S.A. 100% 100% 100% 100% 100% 90% 100% 100% 90% 2. Reliance Life Insurance Company Limited and Reliance General Insurance Company Limited have ceased to be subsidiaries and hence not included in preparation of the Consolidated Financial Statements. 3. Reliance Petroinvestment Limited (RPiL) has ceased to be a subsidiary of the Company with effect from 17/04/2002 and being temporary in nature, it has not been included in preparation of the Consolidated Financial Statements. 122 Reliance Industries Limited RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Consolidated Accounts SCHEDULE ‘N’ (Contd.) 4. 5 The financial statements of Reliance Infocom Inc. and Reliance Technologies LLC, have been prepared under US GAAP and of Reliance Infocom B.V. has been prepared under Netherlands GAAP. The effect of differences in accounting policies between the company and these subsidiaries are not material. As this is the first year of adoption of Accounting Standard (AS-21) on Consolidated Financial Statements issued by the Institute of Chartered Accountants of India, figures for the previous years have not been presented. 6. (a) In terms of the Scheme of Amalgamation (Scheme) sanctioned by order dated 7th June, 2002 of Hon’ble High Court of Bombay and the order dated 13th September, 2002 of the Hon’ble High Court of Gujarat, Reliance Petroleum Limited (“RPL” - whose core business is refining of crude oil) has been amalgamated with the Company with effect from 1st April, 2001. (b) In accordance with the said Scheme : (i) The assets, liabilities, rights and obligations of RPL have been vested in the Company with effect from 1st April, 2001 and have been recorded at their respective fair values under the purchase method of accounting for amalgamation. (ii) 34,26,20,509 Equity shares of Rs. 10 /- each are to be issued as fully paid-up to the shareholders of RPL, without payment being received in cash, and pending allotment, these have been shown under the head “Equity Share Suspense” net of calls in arrears of Rs. 0.33 Crore. (iii) Equity Share Suspense includes 10,46,60,154 shares of Rs. 10/- each to be allotted to the trust created by Reliance Industrial Investments Holdings Limited, a wholly owned subsidiary of the Company against its investments in RPL. (iv) Excess of fair value of net assets taken over by the Company over the paid up value of equity shares to be issued and allotted and the carrying amount of shares held by the Company in RPL has been dealt with as under: Rs. 130.17 Crores representing Debenture Redemption Reserve in RPL books, has been credited to Debenture Redemption Reserve; Rs. 0.65 Crore representing Capital Reserve in RPL books, has been credited to Capital Reserve; Rs. 1,071.50 Crores representing balance in Profit and Loss Account in RPL books, has been credited to Profit and Loss Account and net balance of Rs. 10,739.67 Crores has been credited to Securities Premium Account. As required by Accounting Standard (AS-14) on Accounting for Amalgamation issued by the Institute of Chartered Accountants of India, these reserves have been accounted as prescribed in the Scheme. Had the Scheme not prescribed this treatment, these amounts would have been credited to Capital Reserve. The computation of the amount credited to Securities Premium Account is as under: (Rs. in Crores) (Rs. in Crores) Fair value of Assets — Fixed Assets — Net Current Assets — Investments Fair value of Assets Less : Loan Liabilities Fair value of Net Assets taken over Less: Consideration Payable (34,26,20,509 equity shares of Rs 10 each) Cancellation of Investment of RIL in RPL Stamp Duty Payable on Amalgamation Debenture Redemption Reserve Capital Reserve Profit and Loss Account Calls in Arrears Amount taken to Securities Premium Account on amalgamation 20,644.12 1,426.23 413.46 22,483.81 7,492.13 342.62 2,686.45 25.00 130.17 0.65 1,071.50 (4.38) 14,991.68 4,252.01 10,739.67 7. 8. (v) Consequent to the Court Orders, the authorised share capital will be increased to Rs. 3,000 Crores consisting of 250,00,00,000 equity shares of Rs. 10 each and 50,00,00,000 Preference Shares of Rs. 10 each. Gross Turnover includes inter divisional transfers of Rs. 11,715.69 Crores and Income from services of Rs. 336.91 Crores. (a) The company has changed the method of depreciation from straight line method to written down value method, with effect from 1-4-2001 for Aromatics complex situated at Jamnagar, to provide for earlier replacement on account of technological advancement. Reliance Industries Limited 123 RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Consolidated Accounts SCHEDULE ‘N’ (Contd.) In compliance with the Accounting Standards (AS-6), on Depreciation Accounting issued by the Institute of Chartered Accountants of India, depreciation has been recomputed from the date of commissioning on these assets at WDV rates applicable to those years. Consequent to this there is an additional depreciation charge of Rs. 450.16 Crores which relates to the previous years and an equivalent amount has been withdrawn from the 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. 238.02 Crores excluding the charge relating to the previous years. Consequently, the Net Block of Fixed Assets and Reserves and Surplus are lower by Rs. 688.18 Crores. (b) The Gross Block of Fixed Assets include Rs. 2,738.50 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. 169.52 Crores and an equivalent amount has been withdrawn from General Reserve and credited to the Profit and Loss Account. 9. 10. The expenditure 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.133.61 Crores. Extraordinary Income includes income of Rs 358.34 Crores, on account of sale of equity shares of Larsen and Toubro Limited and Rs. 53.36 Crores on account of Insurance claims received against the damage caused by the earthquake of January, 2001. 11. (a) Payment to Auditors : Audit Fees Tax Audit Fees i) ii) iii) For Certification and Consultation in finance and tax matters iv) Expenses reimbursed (b) Cost Audit Fees 12. Managerial Remuneration : i) Salaries ii) Perquisites iii) Sitting Fees (Paid by erstwhile RPL) iv) Commission v) Contribution to Provident Fund and Superannuation Fund vi) Provision for Gratuity (Rs. in Crores) 2001-2002 1.51 0.55 1.41 0.21 3.68 0.04 (Rs. in Crores) 2001-2002 2.35 2.04 0.03 30.12 0.59 0.45 35.58 13. A sum of Rs. 7.07 Crores (net debit) is included in General Expenses representing Net Prior Period Items. 14. (a) Fixed assets taken on finance lease prior to April 1,2001, amount to Rs. 330.23 Crores. Future obligations towards lease rentals under the lease agreements as on 31st March, 2002 amount to Rs. 97.13 Crores as follows: Within one year Later than one year and not later than five years Later than five years Total (Rs. in Crores) 27.52 67.05 2.56 97.13 (b) The Company has acquired certain items of Plant & Machinery and Ships on finance lease after 1st April, 2001, amounting to Rs. 29.62 Crores. The minimum lease rentals outstanding as of 31st March, 2002 in respect of these assets are as follows: 124 Reliance Industries Limited RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Consolidated Accounts SCHEDULE ‘N’ (Contd.) Due Within one year Later than one year and not later than five years Later than five years Total Total Minimum Lease Payments outstanding as on 31.03.2002 8.93 18.69 0.37 27.99 Future interest on Outstanding (Rs. in Crores) Present value of Minimum Lease Payments 0.51 2.60 0.18 3.29 8.42 16.09 0.19 24.70 (c) General description of lease terms i) Lease rentals are charged on the basis of agreed terms. ii) Assets are taken on lease over a period of 3 to 15 years. 15. a) Assets given on finance lease on or after 1st April, 2001 Particulars Gross investment Less: Unearned finance income Present value of minimum lease rentals Total 112.93 54.25 58.68 Not later than one year Later than one year and not later than five years Later than five years 11.37 8.32 3.05 45.49 28.32 17.17 56.07 17.61 38.46 (Rs. in Crores) b) General description of lease terms Lease rentals are charged on the basis of agreed rate of interest. i) ii) Assets are given on lease for a period of ten years. c) Miscellaneous Income includes income from lease of Rs. 0.59 Crore. 16. As per Accounting Standard (AS-22) on Accounting for taxes on Income issued by the Institute of Chartered Accountants of India, the provision for deferred tax as at 1.4.2001 has been computed at Rs.1,064.82 Crores, and is charged to revenue reserves. The deferred tax liability as at 31st March, 2002 comprises of the following: a. Deferred Tax Liability Related to Fixed Assets b. Deferred Tax Assets Disallowances under Income Tax Act, 1961 Provision for Doubtful Debts c. Provision for Deferred Tax Liability (Net) 17. EARNINGS PER SHARE a. Net Profit available for equity shareholders (Numerator used for calculation) b. Weighted Average No. of equity shares used as denominator for calculating EPS (Including shares to be issued to erstwhile RPL shareholders) c. Basic and Diluted Earnings per share (Rs.) (Equity Share of face value of Rs. 10 each) (Rs. in Crores) 2,289.71 228.88 2,060.83 188.90 39.98 (Rs. in Crores) 2001-2002 3,279.90 138,83,25,291 23.62 18. The company has identified three reportable segments viz. Petrochemicals, Refining and others. Segments have been identified and reported taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies for segment reporting. RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Reliance Industries Limited 125 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Consolidated Accounts SCHEDULE ‘N’ (Contd.) (a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable". (b) Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable". (c) Segment Information: (i) Primary Segment Information : (Rs. in Crores) Particulars Petrochemicals Refining Others Unallocable Sub-Total Eliminations Total 1 Segment Revenue - External Turnover 18,129.33 25,953.45 1,328.01 - Intra Segment Turnover 6,444.93 — - Inter Segment Turnover 19.32 5,210.62 40.82 — Gross Turnover 24,593.58 31,164.07 1,368.83 Less Excise duty recovered 2,216.95 1,073.03 25.00 Net Turnover 22,376.63 30,091.04 1,343.83 — — — — — — 45,410.79 — 45,410.79 6,485.75 (6,485.75) 5,229.94 (5,229.94) — — 57,126.48 (11,715.69) 45,410.79 3,314.98 — 3,314.98 53,811.50 (11,715.69) 42,095.81 2 Segment Result before Interest, Extra ordinary items and Taxes Less: Interest Expense Add: Interest Income Profit before Extra ordinary items and Taxes Extraordinary income (ref Note 6, Schedule 'N') Profit Before Tax Current Tax Deferred Tax Net Profit after Tax 3 Other Information Segment Assets Segment Liabilities Capital Expenditure Depreciation Non Cash Expenses other than depreciation Notes: 2,482.99 2,127.82 796.62 — — — — — — (44.43) 1,827.97 518.18 5,363.00 1,827.97 518.18 2,482.99 2,127.82 796.62 (1,354.22) 4,053.21 — — — 2,482.99 2,127.82 796.62 411.70 (942.52) 190.03 996.01 411.70 4,464.91 190.03 996.01 3,278.87 15,704.09 24,801.15 2,323.26 13,869.03 56,697.53 1,433.18 3,375.91 419.94 2,481.50 1,004.33 1,609.46 591.28 1,052.88 63.24 76.87 0.03 76.95 51.67 7,710.53 1,658.88 2,816.16 51.67 — — — — — — — — — — 5,363.00 1,827.97 518.18 4,053.21 411.70 4,464.91 190.03 996.01 3,278.87 56,697.53 7,710.53 1,658.88 2,816.16 51.67 a) As per Accounting Standard on Segment Reporting (AS-17), issued by the Institute of Chartered Accountant of India, the Company has reported segments information on consolidated basis including businesses conducted through its subsidiaries. b) The reportable Segments are further described below: — The petrochemicals segment includes production and marketing operations of petrochemical products namely, High and Low density Polyethylene, Polypropylene, Polyvinyl Chloride, Polyester Yarn, Polyester Fibres, Purified Terephthalic Acid, Paraxylene, Ethylene Glycol, Olefins, Aromatics, Linear Alkyl Benzene and Polyethylene Terephthalate. — The refining segment includes production and marketing operations of the Petroleum refinery. — The businesses, which were not reportable segments during the year, have been grouped under the "Others" segment. This mainly comprises of : • Oil and Gas • Textile • Infocom business conducted through subsidiaries viz. Reliance Infocom Inc., Reliance Infocom B.V. and Reliance Technologies LLC. 126 Reliance Industries Limited RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Consolidated Accounts SCHEDULE ‘N’ (Contd.) (ii) Secondary Segment Information : 1. Segment Revenue - External Turnover (Rs. in Crores) - Within India - Outside India Total Revenue 2. Segment Assets - Within India - Outside India Total Assets 34,441.92 10,968.87 45,410.79 55,421.54 1,275.99 56,697.53 3. Segment Liability - Within India - Outside India Total Liability 4. Capital Expenditure - Within India - Outside India Total Revenue (Rs. in Crores) 7,707.70 2.83 7,710.53 1,658.85 0.03 1,658.88 19. Miscellaneous Expenditure (to the extent not written off / or adjusted) includes Rs. 62.86 Crores inrespect of unamortised portion of amount disbursed on account of Employees Seperation Scheme announced at Naroda during the year. 20. PROJECT DEVELOPMENT EXPENDITURE (in respect of Projects upto 31st March, 2002 included under Capital work in progress) Opening Balance Add: On Amalgamation Project Development Expenditure transferred from Profit and Loss Account Interest Capitalised Less: Project Development Expenses Capitalised during the year Closing Balance 21. Additional Information (a) Estimated amount of contracts remaining to be executed on Capital accounts and not provided for (b) Uncalled liability on partly paid Shares/ Warrant Equity Shares (Rs 19,935) (c) Contingent Liabilities (i) Outstanding guarantees furnished to Banks and Financial Institutions including in respect of Letters of credit (ii) Guarantees to Banks and Financial Institutions against credit facilities extended to third parties (iii) Liability in respect of bills discounted with Banks (iv) Claims against the Company / disputed liabilities not acknowledged as debts (v) Sales tax deferral liability assigned (Rs. in Crores) 2001-2002 Rs. 1.81 67.49 Rs. 6.52 83.84 69.30 159.66 94.80 64.86 (Rs. in Crores) As at 31st March 2002 453.12 — 235.50 624.40 19.19 357.32 2,511.71 (d) The Income-Tax assessments of the Company have been completed up to Assessment Year 1999-2000. The disputed demand outstanding up to the said Assessment Year is Rs. 233.32 Crores. 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 in respect of disputed matters which are pending in appeals. RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Reliance Industries Limited 127 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Consolidated Accounts SCHEDULE ‘N’ (Contd.) 22. Related Party Disclosures: (i) List of Related Parties with whom transactions have taken place and Relationships : Sr No. Name of the Related Party Relationship 1. 2 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. Associate Companies and Joint Ventures Reliance Life Insurance Company Limited (Subsidiary upto 14th January, 2002) Reliance General Insurance Company Limited (Subsidiary upto 14th January, 2002) Reliance Capital Limited BSES Limited Reliance Infocomm Limited ( formerly Reliance Communications Limited) Reliance Communications Infrastructure Limited (formerly Reliance Infocom Limited) Reliance Telecom Limited Reliance Industrial Infrastructure Limited Reliance Europe Limited Reliance Ports and Terminals Limited Reliance Utilities and Power Limited Reliance Salgaoncar Power Company Limited Reliance Enterprises Limited Reliance Global Trading Private Limited Unincorporated Oil & Gas Joint Ventures Late Sh. Dhirubhai H. Ambani Key Management Personnel Sh. Mukesh D. Ambani Sh. Anil D. Ambani Sh. Nikhil R. Meswani Sh. Hital R. Meswani Sh. H. S. Kohli Sh. R. H. Ambani Smt. K. D. Ambani Relatives of Key Management Personnel Dhirubhai Ambani Foundation Others Jamnaben Hirachand Ambani Foundation Hirachand Govardhandas Ambani Public Charitable Trust 128 Reliance Industries Limited RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Consolidated Accounts SCHEDULE ‘N’ (Contd.) (ii) Transactions during the year with related parties: Nature of Transaction Sr. No. A) B) C) D) E) F) (a) (b) (c) G) H) I) J) K) L) Loans Taken during the year Repaid during the year Balance as at 31st March, 2002 Fixed Assets/ Capital Work in Progress Assets taken on Lease during the year Balance of Assets taken on Lease as at 31st March, 2002 Assets given on Lease during the year Assets purchased during the year Assets sold during the year Investments Purchased during the year Sold during the year Balance as at 31st March, 2002 Interest accrued on Investments Sundry Debtors as at 31st March, 2002 Loans & Advances Loans Given during the year Returned during the year Balance as at 31st March, 2002 Advances recoverable in cash or in kind Given during the year Returned during the year Balance as at 31st March, 2002 Deposits Given during the year Returned during the year Balance as at 31st March, 2002 Sundry Creditors Balance as at 31st March, 2002 Turnover Other Income Dividend Interest Received Lease Rental Income Miscellaneous Income Purchases Expenditure Interest Paid Payments to and provisions for Directors Sitting Fees (Rs 28,690) Electric Power, Fuel and Water Rent Telephone Charges Lease Rentals Professional Fees Charter Hire Charges Insurance Premium Assignment of Liability Tank Farm Charges Hire Charges Donations Warehousing and Distribution Charges Others Guarantees Issued Financial Guarantees Performance Guarantees Associates Key Management Relatives of Key Personnel Management Personnel (Rs. in Crores) Others Total 31.40 65.59 10.00 29.62 207.43 58.68 4.66 406.54 78.00 2,537.70 398.47 166.94 14,006.73 12,833.16 1,926.52 2,235.46 53.70 2,322.14 40.00 2.83 42.74 1,155.31 583.72 34.31 415.66 0.59 98.01 0.09 40.93 420.13 3.00 2.99 56.69 18.09 10.52 49.55 167.09 6.20 46.55 830.51 1.25 624.40 3,548.77 2.25 0.08 35.58 — 26.89 31.40 65.59 10.00 29.62 207.43 58.68 6.91 0.08 406.54 78.00 2,537.70 398.47 166.94 14,006.73 12,833.16 1,926.52 2,235.46 53.70 2,322.14 40.00 2.83 42.74 1,155.31 583.72 34.31 415.66 0.59 98.01 0.09 40.93 35.58 — 420.13 3.00 2.99 56.69 18.09 10.52 49.55 167.09 6.20 46.55 26.89 830.51 1.25 624.40 3,548.77 Note: Related Party disclosure for previous year is not included in above, as Accounting Standard (AS-18), issued by the Institute of Chartered Accountants of India has become mandatory from 1st April, 2001. Reliance Industries Limited 129 RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Consolidated Cash Flow Statement Annexed to the Balance Sheet for the period April 2001-March 2002 A: CASH FLOW FROM OPERATING ACTIVITIES : Net Profit after tax as per Profit and Loss Account 3,279.90 Adjusted for : (Rs. in Crores) 2001-2002 Rs. Rs. (1.03) (411.70) 7.07 190.03 996.01 51.67 0.05 14.09 3,435.84 (619.68) (4.95) 0.01 77.00 (89.25) (32.36) (518.18) 1,827.97 (549.68) 307.63 (368.83) Minority Interest Share of Loss Extra-Ordinary items Net Prior Year Adjustments Current Tax Provision Deferred Tax Provision Provision for Doubtful Debts Provision for Diminution in value of Investments Profit/(Loss) on Sale of Discarded Assets Depreciation Transferred from General Reserve Discount on Buyback of Bonds / Redemption of Debentures Miscellaneous Expenses written off Effect of Exchange Rate Change Profit on Sale of Investments Dividend Income Interest 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 Extra-Ordinary items Net Cash From Operating Activities B: CASH FLOW FROM INVESTING ACTIVITIES : Purchase of Fixed Assets Sale of Fixed Assets Purchase of Investments Sale of Investments Movement in Loans Interest Income Dividend Income Net Cash Used in Investing Activities 4,922.59 8,202.49 (610.88) 7,591.61 (7.07) (105.18) 53.36 7,532.72 (1,681.70) 62.99 (14,996.22) 15,864.81 (3,502.41) 216.77 43.87 (3,991.89) 130 Reliance Industries Limited RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Consolidated Cash Flow Statement Annexed to the Balance Sheet for the period April 2001-March 2002 (Rs. in Crores) 2001-2002 Rs. Rs. C: CASH FLOW FROM FINANCING ACTIVITIES : Proceeds from Issue of Share Capital (net) 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 On Amalgamation 103.96 42.64 Closing Balance of Cash and Cash Equivalents For and on behalf of the Board 2.24 15,717.89 (14,210.94) (1,061.91) (632.58) (1,739.02) 0.45 (1,923.87) 1,616.96 146.60 1,763.56 M.D.Ambani A.D.Ambani N.R.Meswani H.R.Meswani H.S.Kohli U.Mahesh Rao R.H.Ambani M.L.Bhakta T.Ramesh U.Pai Y.P.Trivedi Dr.D.V.Kapur M.P.Modi V.M.Ambani Mumbai Dated: 30th September, 2002 - Chairman & Managing Director - Vice-Chairman & Managing Director - Nominee Director Executive Directors Directors } } - Company Secretary Auditors’ Report We have verified the above consolidated cash flow statement compiled from the consolidated audited financial statements of Reliance Industries Limited for the year ended 31st March, 2002 and from the separate individual audited financial statements of the Company and its subsidiaries for the year ended 31st March, 2001 and found the same in agreement therewith. According to the information and explanation given to us the above consolidated cash flow statement has been prepared in accordance with the requirement of Accounting Standard 3 on Cash Flow Statements issued by the Institute of Chartered Accountants of India. For Chaturvedi & Shah Chartered Accountants D. Chaturvedi Partner Mumbai Dated: 30th September 2002 For Rajendra & Co. Chartered Accountants R.J. Shah Partner RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) Reliance Industries Limited 131 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Reconciliation of Consolidated Net Profit determined under Indian GAAP to Net Income in accordance with US GAAP The following reconciliation between Consolidated Profit determined under generally accepted accounting principles in India (“Indian GAAP”) to Net Income in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) has been provided as additional disclosure on a voluntary basis to assist readers who may be unfamiliar with Indian GAAP. However, as the company is not subject to US SEC reporting & disclosure requirements and major part of the revenue of the Company is earned in India, the accounts should be read as per Indian GAAP. Reconciliation of Consolidated Profit determined under Indian GAAP with Net Income according to US GAAP. Year ended 31st March, 2002 Notes Rs. (Crores) US $ (Millions) Consolidated Net 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 and Hedging Depreciation Deferred Income Tax Issue Expenses Employee Benefits Cumulative effect of change in accounting principle (net of Rs.142 crores of deferred income taxes) Loss on early extinguishment of debt Consolidated net income in accordance with US GAAP 1 2 3 4 5 6 7 8 9 10 3,280 351 (9) (2) (286) 172 (383) (26) (82) (256) (16) 2,743 672 72 (2) (0.4) (59) 35 (78) (6) (17) (52) (3) 562 1 US $= Rs. 48.80 (Exchange rate as on 31.03.2002) Notes to Reconciliation of Consolidated profit determined under Indian GAAP with Net Income according to US GAAP. The following notes show the difference between Indian and US GAAP and necessary adjustments to arrive at consolidated net income under the US GAAP. 1. Share in income of Affiliates and Subsidiaries a. Amalgamation of Reliance Petroleum Ltd. (RPL) with the Company On 8th April, 2002 and 15th April, 2002 respectively, shareholders of the Company and RPL approved a scheme of amalgamation, which was subsequently sanctioned by order dated 7th June, 2002 of the Honourable High Court of Bombay and order dated 13th September, 2002 of the Honourable High Court of Gujarat. This transaction was consummated in September, 2002. However, the scheme calls for retroactive amalgamation with effect from 1st April, 2001. Under Indian GAAP, the consolidated net profit after tax includes the accounts of RPL from the legal date of merger. Under US GAAP, as the transaction was consummated after the balance sheet date, RPL has been included on the equity basis of accounting for the year. b. Other 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 recognized 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. With effect from 1st April, 2002, Indian GAAP also requires the use of the equity method by the Company. Under Indian GAAP, in the current year, the company has also presented consolidated financial statements, which include its subsidiaries. This treatment is consistent with US GAAP; however, the net income under US GAAP includes the earnings of subsidiaries determined in accordance with US GAAP. 2. 3. 4. Leases Under Indian GAAP in respect of leases entered into before 31st March, 2001, 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. Under Indian GAAP, for leases entered prior to 31st March, 2001 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. For leases entered into after 31st March, 2001 the treatment under US GAAP and Indian GAAP is the same. Indirect Preoperative Expenses Under Indian GAAP certain indirect expenses incurred during construction are capitalised. Under US GAAP, such indirect costs are expensed as incurred. Foreign Currency and Hedging 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 recognized in the 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. 132 Reliance Industries Limited RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) The Company also enters into derivative contracts to manage its exposures to fluctuations in interest rates, foreign currencies and commodity prices. Substantially all such contracts are regulated by agencies of the Government and may be entered into only for the purposes of hedging. In order to comply with regulations, the company maintains extensive documentation to demonstrate that each such contract qualifies for, and is effective as, a hedge of cash flows or foreign currency exposures. Under Indian GAAP, the gain or loss on such derivative contracts are generally recognised when the underlying hedge transaction settles, or upon earlier termination of the hedge. Under US GAAP, the accounting for hedge contracts depends upon the nature of the hedge. For a derivative designated as hedging an exposure to variable cash flow of a forecasted transaction, the effective portion of the derivative’s gain or loss is recognised in income when the forecasted transaction effects earnings, or upon earlier termination of the hedge. 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 US GAAP adjustments to fixed assets for indirect preoperative expenses and foreign currencies. 6. Deferred Income Tax The provision for taxation under Indian GAAP consists of the estimated tax currently payable and deferred income taxes for timing differences between accounting income and taxable income at the substantively enacted income tax rates. US GAAP requires that a provision for such deferred income taxes be made for the future tax effects of temporary differences between book and tax basis of assets at the enacted tax rates. Accordingly, the reconciliation provides for an adjustment to reflect the differences due to tax rates and the tax effect of US GAAP adjustments. Issue Expenses Under Indian GAAP, debt issue expenses may be capitalized or charged to share premium. Under US GAAP, debt issue cost are amortized over the life of the debt. 7. 8. Employee benefits Under Indian GAAP, provision for leave encashment is accounted for on actuarial valuation basis. Compensation to employees who have opted for voluntary retirement scheme of the company is amortized over 60 months. Under US GAAP provision for leave encashment is accounted on actual basis. Compensation towards voluntary retirement scheme is charged in the year in which the employees accept the offer. 9. Cumulative effect of change in accounting principle In order to provide for the timely replacement of assets, the Company has changed the method of depreciation for Aromatics complex situated at Jamnagar from Straight Line to Written Down value method with effect from 1st April, 2001. The new method has been applied retrospectively to fixed asset 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 & 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. 256 crores (net of Rs. 142 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. 210 crores, excluding the charge relating to the previous years. 10. Loss on extinguishment of debt Under Indian GAAP, debt extinguishment premiums are adjusted against Securities Premium Account. Under US GAAP such premiums for early extinguishment of debt are expensed as incurred, and generally reported as extraordinary items. As per our report of even date For Deloitte Haskins & Sells Chartered Accountants P. R. Barpande Partner Mumbai 30th September, 2002 For and on behalf of the board A.D. Ambani Vice-Chairman & Managing Director N.R. Meswani Executive Director International Accountants’ Report To the Board of Directors of RELIANCE INDUSTRIES LIMITED We have audited the balance sheet of Reliance Industries Limited as of 31st March, 2002 and the Profit and Loss account for the year then ended and have issued our report thereon dated 30th September, 2002. Our audit also included the accompanying Reconcilliation of Consolidated Net Profit under Indian GAAP to Net Income in accordance with US GAAP (“the Reconciliation”). This Reconciliation is the responsibility of the Company’s management. Our responsibility is to express an opinion based on our audit. In our opinion, such Reconciliation, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects, the information set forth therein. For Deloitte Haskins & Sells Chartered Accountants Mumbai Dated: 30th September, 2002 P. R. Barpande Partner Reliance Industries Limited 133 RIL Consolidated Balancesheet.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:11)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 134 Vimal Fabrics Limited Vimal Industries ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:12)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) FINANCIAL STATEMENTS OF SUBSIDIARIES Vimal Industries ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:12)(cid:8)(cid:17)(cid:18) Vimal Fabrics Limited 135 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 136 Vimal Fabrics Limited Vimal Industries ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:12)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Directors’ Report To the Members, Your Directors have pleasure in presenting the 18th Annual Report together with the Audited Statement of Accounts for the financial year ended 31st March, 2002. Operations During the year under review, the Company has earned a profit of Rs.1,23,385/- as against loss of Rs. 2,09,833/- in the previous year. Dividend Your Directors have not recommended any dividend for the financial year under review. Directors' Responsibility Statement Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956 with respect to Directors' Responsibility Statement, it is hereby confirmed that: (i) (ii) (iii) in the preparation of the accounts for the financial year ended 31st March, 2002, the applicable accounting standards have been followed; them consistently and made the Directors have selected such accounting policies and applied judgements and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for the year under review; the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and the Companies Act, 1956 the provisions of (iv) the Directors have prepared the accounts for the financial year ended 31st March, 2002 on a ‘going concern’ basis. Directors Shri V.M. Ambani retires by rotation and being eligible offers himself for reappointment at the ensuing Annual General Meeting. furnished Auditors and Auditors’ Report M/s. Chaturvedi & Shah and M/s. Rajendra & Co., Joint Auditors of the Company, hold office until the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment. The Auditors have, under section 224(1-B) of the Companies Act, 1956 re- appointment. Accordingly, the said Auditors are proposed to be appointed as Joint Auditors of the Company at the ensuing Annual General Meeting. With reference to the observations made by the Auditors in their report, your Directors are seized of the issue and are the contemplating necessary networth. the certificate of required steps their eligibility replenish for to Fixed Deposits The Company has not accepted any fixed deposit from the Public. Hence, no information is required to be appended to this report. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo in accordance with Information 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 are not required to be furnished since the company has not undertaken any manufacturing activities. There were no foreign exchange earnings and outgo during the year under review. 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. Acknowledgement Your Directors wish immense to place on appreciation for the assistance and cooperation received from various Statutory Authorities. record their For and on behalf of the Board V. M. Ambani J. B. Dholakia } Directors Mumbai Dated : 11th July, 2002 Vimal Industries ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:12)(cid:8)(cid:17)(cid:18) Vimal Fabrics Limited 137 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Auditors’ Report c) d) e) f) To, The Members of Vimal Fabrics Limited. We have audited the attached Balance Sheet of Vimal Fabrics Limited as at 31st March, 2002 and the Profit and Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. the financial statements are We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about free of material whether misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 1. As required by the Manufacturing and Other Companies (Auditors' Report) Order, 1988 the Central Government of India 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. issued by 2. Further to our comments in the Annexure referred to in paragraph 1 above, we report that: a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. b) In our opinion proper books of account as required by law have been kept by the Company, so far as appears from our examination of such books. 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 the Account complies with mandatory accounting standards referred to in Section 211 (3C) of the Companies Act, 1956. requirements of the In our opinion, and based on information and explanations given to us, none of the directors are from being disqualified as on 31st March, 2002 appointed as directors in terms of clause (g) of sub- section (1) of Section 274 of the Companies Act, 1956. Although the Company had incurred substantial losses in the past resulting in the erosion of its net worth, the accounts of the Company are prepared on going concern basis. Subject to 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 Companies Act, 1956, in the manner so required and give a the in confirmity with fair view accounting principles generally accepted in India : required by information true and the i) ii) in so far as it relates to the Balance Sheet, of the state of affairs of the Company as at 31st March, 2002 and in so far as it relates to the Profit and Loss Account, of the 'Profit' of the Company for the year ended on that date. For Chaturvedi & Shah Chartered Accountants H.P. Chaturvedi Partner Mumbai Dated : 11th July, 2002 For Rajendra & Co. Chartered Accountants R.J. Shah Partner 138 Vimal Fabrics Limited Vimal Industries ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:12)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 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. The Company had maintained proper records showing full particulars including quantitative details and situation of its fixed assets. The Company does not have any fixed assets at the end of the year. 11. 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 had been physically verified by the Management during the year. In our opinion, the frequency of such verification is reasonable. 4. In our opinion, the procedures of physical verification of stocks followed by the Management are reasonable and adequate in relation to the size of the Company and the nature of its business. 5. As explained to us, there were no material discrepancies noticed on physical verification of the stocks. 6. 7. 8. 9. 10. There is no stock in trade at the end of the year, hence the question of valuation of stock in trade does not arise. The Company has taken an interest free unsecured loans from its 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. 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. the to information and In our opinion and according explanations given to us, there are no transactions of the to purchase of goods or materials and sale of goods, materials and services made in pursuance of contracts or arrangement entered in the register maintained under Section 301 and aggregating during the year to Rs.50,000/- or more in respect of each party. 12. As explained to us, there are no damaged or unserviceable raw materials. 13. The Company has not accepted any deposit from the Public. 14. As there was no manufacturing activity during the year the question of by products or realisable scrap does not arise. 15. In our opinion the Company has an internal audit system commensurate with its size and the nature of its business. 16. The Central Government has prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 in respect of the manufacturing activities of the Company. Since there is no manufacturing activity during the year we have no comments to offer on the said clause. 17. We have been informed that provisions of 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, 2002 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. 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. For Chaturvedi & Shah Chartered Accountants H.P. Chaturvedi Partner Mumbai Dated : 11th July, 2002 For Rajendra & Co. Chartered Accountants R.J. Shah Partner Vimal Industries ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:12)(cid:8)(cid:17)(cid:18) Vimal Fabrics Limited 139 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Balance Sheet as at 31st March, 2002 Schedule As at 31st March, 2002 Rs. Rs. (Rs. in thousands) As at 31st March, 2001 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’ ‘G’ 21,01 11,95,57 12,16,58 21,01 12,15,68 12,36,69 30,46 14,44 - 16,02 1,92 13,50 31 15,73 13,67 29,40 6,39 6,39 20,16 11,96,42 12,16,58 23,01 11,97,66 12,36,69 - - - 12,31 5 12,36 13,67 26,03 5,87 5,87 As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants H.P. Chaturvedi Partner Mumbai Dated : 11th July, 2002 R.J. Shah Partner 140 Vimal Fabrics Limited V.M. Ambani N.M. Sanghavi J.B. Dholakia } Directors Vimal Industries ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:12)(cid:8)(cid:17)(cid:18) Profit and Loss Account for the year ended 31st March, 2002 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedule 2001-2002 (Rs. in thousands) 2000-2001 Rs. Rs. Rs. Rs. INCOME Sales Other Income ‘E’ EXPENDITURE Purchases Manufacturing and Other expenses ‘F’ Depreciation Profit / (Loss) for the year Add : Balance brought forward from last year Balance carried to Balance Sheet - 10,09 - 8,08 77 10,18 3,09 10,09 13,27 9,37 4,89 1,11 8,85 1,24 (11,97,66) (11,96,42) 15,37 (2,10) (11,95,56) (11,97,66) Basic and Diluted Earnings per share (Rupees) 0.59 (1.00) Notes on Accounts ‘G’ As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants H.P. Chaturvedi Partner Mumbai Dated : 11th July, 2002 R.J. Shah Partner V.M. Ambani N.M. Sanghavi J.B. Dholakia } Directors Vimal Fabrics Limited 141 Vimal Industries ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:12)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 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, 2002 Rs. (Rs. in thousands) As at 31st March, 2001 Rs. 25,00 21,01 21,01 25,00 21,01 21,01 Gross Block Depreciation Net Block (Rs. in thousands) SCHEDULE ‘B’ FIXED ASSETS Description Buildings Furniture and Fixture Vehicles Total Previous Year SCHEDULE ‘C’ As at 1.4.2001 Rs. Additions Rs. Deduc- As at As at tions 31.3.2002 1.4.2001 Rs. Rs. Rs. 27,48 2,97 1 30,46 30,46 - - - - - 27,48 2,97 1 30,46 - - - - - 30,46 12,37 2,06 1 14,44 13,33 CURRENT ASSETS, LOANS AND ADVANCES Current Assets: Inventories (as verified, valued and certified by the management) Raw materials Sundry Debtors (Unsecured, considered good)* Over Six months Cash and Bank Balances Balance with Scheduled Banks: In Current Account Loans and Advances: (Unsecured, considered good) Deposits For the year Rs. 64 13 - 77 Deduc- tions Rs. 13,01 2,19 1 15,21 Up to As at As at 31.3.2002 31.3.2002 31.3.2001 Rs. Rs. Rs. - - - - - - - - 15,11 91 - 16,02 1,11 - 14,44 16,02 As at 31st March, 2002 (Rs. in thousands) As at 31st March, 2001 Rs. Rs. Rs. Rs. - 12,31 5 1,92 13,50 31 12,36 13,67 26,03 15,73 13,67 29,40 * Includes Rs. 12,31 thousand due from Reliance Petroleum Ltd., a Company under the same management which is under amalgamation with Reliance Industries Limited. (previous year Rs. 12,31 thousand). 142 Vimal Fabrics Limited Vimal Industries ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:12)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules Forming Part of the Balance Sheet SCHEDULE ‘D’ CURRENT LIABILITIES AND PROVISIONS Current Liabilities Sundry Creditors : Due to : Small Scale Industries Other Other Liabilities As at 31st March, 2002 Rs. Rs. (Rs. in thousands) As at 31st March, 2001 Rs. Rs. — — — 34 — 5,87 5,87 34 6,05 6,39 Schedules Forming Part of the Profit and Loss Account SCHEDULE ‘E’ OTHER INCOME Profit on sale of fixed assets Excess provision for expenses no longer required (net) 2001-2002 Rs. 9,75 34 (Rs. in thousands) 2000-2001 Rs. – 3,09 10,09 3,09 SCHEDULE ‘F’ MANUFACTURING AND OTHER EXPENSES (Rs. in thousands) 2001-2002 2000-2001 Raw Materials Consumed Stock at commencement Less: Sold Less : Stock at close Establishment Expenses Electric Power, fuel and water Retrenchment compensaton Insurance Rates and taxes Payment to Auditors General Expenses Rs. 1,92 1,92 – – 4,34 1,67 – 1,75 26 6 Rs. – 8,08 8,08 Rs. 1,92 – 1,92 1,92 4,28 – 6 1 26 28 Rs. – 4,89 4,89 Vimal Industries ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:12)(cid:8)(cid:17)(cid:18) Vimal Fabrics Limited 143 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts SCHEDULE ‘G’ 1. SIGNIFICANT ACCOUNTING POLICIES a) Basis of preparation of Financial Statements The Financial Statements have been prepared under the Historical Cost Convention, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956 as adopted consistently by the Company. The same are prepared on a going concern 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. c) Inventories Raw Material is valued at cost. 2. The previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. 3. Other income includes extra-ordinary income of profits on sale of fixed assets of Rs. 9,75 thousands (Previous Year Rs. NIL) 4. Auditors’ Remuneration: Audit fees 5. Earnings per share Basic, as well as diluted, earnings per equity share (Rs.) Numerator - profit/(loss) after tax (Rs. in thousands) Denominator - weighted average number of equity shares Nominal value per equity share (Rs.) 2001-2002 Rs. 26 2001-2002 0.59 1,24 2,10,070 10 (Rs. in thousands) 2000-2001 Rs. 26 2000-2001 (1.00) (2,10) 2,10,070 10 6. 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. 7. Contingent Liability Claims against the company/disputed liabilities not acknowledged as debts for ex-employees. 8. Licensed and Installed Capacity As at 31st March, 2002 Rs. (Rs. in thousands) As at 31st March, 2001 Rs. 15,93 13,99 Licensed Capacity Installed Capacity 31.3.2002 31.3.2001 31.3.2002 31.3.2001 N.A. N.A. N.A. N.A. 9. Quantitative Information UNIT Quantity Rs./thousands Quantity Rs./thousands 2001-2002 2000-2001 a) Opening stock Fabrics b) Closing stock Fabrics c) Purchases Fabrics(Net of purchase return) d) Sales Fabrics (Net of sales return) Mtrs/lacs Mtrs/lacs Mtrs/lacs Mtrs/lacs – – – – – – – – – – 0.08 0.08 – – 9,37 10,18 144 Vimal Fabrics Limited Vimal Industries ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:12)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts SCHEDULE ‘G’ (Contd.) 10. 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. 3 1 5 9 3 State Code Balance Sheet Date 3 1 - 0 3 - 0 2 2. Capital raised during the year: (Rs. in thousands) Public Issue Bonus Issue N I N I L L Rights Issue Private Placement 3. Position of mobilisation and deployment of funds: (Rs. in thousands) 1 1 N I L N I L 1 2 2 2 4 5 Total Assets 1 2 2 2 4 5 2 1 0 1 Reserves and Surplus N I L N I L Unsecured Loans 1 1 9 5 5 7 Total Liabilities Source of Funds: Paid-up Capital Secured Loans Application of Funds: Net Fixed Assets Net Current Assets N I L Investments 2 0 1 6 Miscellaneous Expenditure Accumulated Losses 1 1 9 6 4 2 4. Performance of Company: (Rs. in thousands) Turnover/Income Profit/(Loss) before tax 1 0 0 9 Total Expenditure 1 2 4 Profit/(Loss) after tax Earnings per Share (Rupees) 0 . 5 9 Dividend Rate (%) 5. Generic names of principal products, services of the Company: Item Code No. 5 5 1 5 1 1. 0 0 Product Description F A B R I C S N I L N I L 8 8 5 1 2 4 N I L As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants H.P. Chaturvedi Partner Mumbai Dated : 11th July, 2002 R.J. Shah Partner V.M. Ambani N.M. Sanghavi J.B. Dholakia } Directors Vimal Fabrics Limited 145 Vimal Industries ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:12)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Directors’ Report To the Members, Your Directors have pleasure in presenting the 16th Annual Report together with the Audited Statement of Accounts for the financial year ended 31st March, 2002. FINANCIAL RESULTS Profit before taxation Less: Provision for taxation Profit after tax Add: Taxes for the earlier years Balance brought forward from last year Amount available for appropriations: Less: Transferred to Debenture Redemption Reserve Balance carried forward to Balance Sheet (Rs. in Thousands) 2001-2002 2000-2001 Rs. 37,60,83 — 37,60,83 1,18,76 78,37,56 117,17,15 531,43 111,85,72 Rs. 26,81 — 26,81 — 78,10,75 78,37,56 — 78,37,56 Operations During the year, the Company received dividend income of Rs. 64,21,58,326/- from its investments. During the year, the Company transferred 92,20,665 Equity Shares of Larsen and Toubro Limited to Reliance Industries Limited, the Holding Company, at cost. Pursuant to the Scheme of Amalgamation of Reliance Petroleum Limited (RPL) into Reliance Industries Limited (RIL), equity shares of Rs. 10/- each of RIL are to be issued and allotted to a Trust under which the Company is the sole beneficiary, against the equity shares of RPL held by the Company, the Trust having been settled by the Company on 2nd May, 2002. Dividend The Directors have not recommended dividend on Equity shares for the financial year ended 31st March, 2002. true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for the year under review; (iii) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and (iv) the Directors have prepared the accounts for the financial year ended 31st March, 2002 on a 'going concern' basis. Audit Committee As required by the provisions of Section 292A of the Companies the Board of Directors has constituted Audit Act, 1956, Committee comprising of three directors i.e. Shri S. Seth, Shri Alok Agarwal and Shri Sandeep Junnarkar. Directors' Responsibility Statement Directors Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, with respect to Directors' Responsibility Shri Alok Agarwal retires by rotation and being eligible offers himself for reappointment at the ensuing Annual General Meeting. Statement, it is hereby confirmed that: (i) in the preparation of the accounts for the financial year ended 31st March, 2002, the applicable accounting standards have been followed; (ii) the Directors have selected such accounting policies and them consistently and made applied judgements and estimates that were reasonable and prudent so as to give a Auditors M/s. Chaturvedi & Shah and M/s. Rajendra & Co., Joint Auditors of the Company, hold office till the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment. The Auditors have, under section 224(1-B) of the Companies Act, 1956 furnished the certificate of their eligibility for re- appointment. Accordingly, the said Auditors are proposed to be 146 Reliance Industrial Investments and Holdings Limited Reliance Ind Investments and holdings ltd..p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:11)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) appointed as Joint Auditors of the Company at the ensuing Annual General Meeting. technology absorption. There was no foreign exchange earnings and outgo during the year. Fixed Deposits Personnel The Company has not accepted any fixed deposit during the year. Hence, no information is required to be appended to this report in terms of Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1988. 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 Acknowledgement 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 : 11th July, 2002 Your Directors wish immense to place on appreciation for the assistance and cooperation received from record their various Statutory Authorities. For and on behalf of the Board Alok Agarwal S. Seth } Directors Reliance Industrial Investments and Holdings Limited 147 Reliance Ind Investments and holdings ltd..p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:11)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 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, b) In our opinion proper books of account as required by law have been kept by the Company, so far as appears 2002 and the Profit and Loss Account for the year ended on that the date annexed financial statements are thereto. These responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about free of material whether financial statements are the misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 1. As required by the Manufacturing and Other Companies the Central (Auditors' Report) Order, 1988 issued by Government of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order. 2. Further to our comments in the Annexure referred to in paragraph 1 above, we report that: from our examination of such books. c) The Balance Sheet and Profit and Loss Account referred to in this report are in agreement with the books of account. d) In our opinion, the Balance sheet and Profit and Loss the Account complies with requirements of the mandatory accounting standards referred to in Section 211 (3C) of the Companies Act, 1956. e) In our opinion, and based on information and explanations given to us, none of the directors are disqualified as on 31st March, 2002 from being appointed as directors in terms of clause (g) of sub- section (1) of Section 274 of the Companies Act, 1956. f) 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 in conformity with the accounting principles generally accepted in India : i) in so far as it relates to the Balance Sheet, of the state of affairs of the Company as at 31st March, 2002 and a) We have obtained all the information and explanations ii) in so far as it relates to the Profit and Loss which to the best of our knowledge and belief were necessary for the purpose of our audit. Account, of the 'Profit' of the Company for the year ended on that date. For Chaturvedi & Shah Chartered Accountants Rajesh D. Chaturvedi Partner Mumbai Dated : 11th July, 2002 For Rajendra & Co. Chartered Accountants R.J. Shah Partner 148 Reliance Industrial Investments and Holdings Limited Reliance Ind Investments and holdings ltd..p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:11)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 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. 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 7. 8. information and In our opinion and according explanations given to us, the Company has not accepted any the to deposits from the public. In our opinion internal audit arrangement commensurate with its size and the nature of its the Company has an business. verification is reasonable having regard to the size of the 9. According to the information and explanations given to us, 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 and item (ii) of Clause D of paragraph 4 of the aforesaid Order are not applicable. 4. The Company has taken unsecured loans from its Holding Company. It has not taken any other loan, secured or unsecured, from companies, firms and other parties as listed the the register maintained under Section 301 of in 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 the Employees' Provident Fund and provisions of 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, 2002 for a period of more than six months from the date they became payable. 11. In our opinion and according to the information and explanations given to us, no personal expenses of employees or Directors have been charged to revenue account. 12. The Company is not a Sick Industrial Company within the meaning of clause (o) of sub-section (1) of Section 3 of the are not, in our opinion, prima-facie prejudicial to the interests Sick Industrial Companies (Special Provisions) Act, 1985. of the Company. 5. 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 the companies under the same management within the meaning of section 370(1B) of the Companies Act, 1956. 6. 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. 13. According to the information and explanations given to us, the provisions of any special statute applicable to Chit-Fund, Nidhi or Mutual Benefit Society are not applicable to the Company. 14. In our opinion, the Company has maintained proper records and made timely entries in respect of investments dealt in or traded by the Company. The Company's investments are held in its own name, save and except, those in the process of being transferred in its name. For Chaturvedi & Shah Chartered Accountants Rajesh D. Chaturvedi Partner Mumbai Dated : 11th July, 2002 For Rajendra & Co. Chartered Accountants R.J. Shah Partner Reliance Industrial Investments and Holdings Limited 149 Reliance Ind Investments and holdings ltd..p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:11)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Balance Sheet as at 31st March, 2002 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 Less: Current Liabilities and Provisions Current Liabilities Provisions Net Current Assets TOTAL Notes on Accounts Schedule As at 31st March, 2002 Rs. Rs. (Rs. in thousands) As at 31st March, 2001 Rs. Rs. 147,50,44 121,12,31 20,85,96 1601,24,25 147,50,44 82,32,72 268,62,75 229,83,16 17,99,31 1736,49,80 1622,10,21 1890,72,96 1754,49,11 1984,32,27 5,28 49 5,04 33 4,79 4,71 1893,28,03 1988,58,22 58 2,13,58 2,14,16 4,72,74 1,28 4,74,02 1,72 6,41,96 6,43,68 5,23,52 5,50,82 10,74,34 (2,59,86) 1890,72,96 (4,30,66) 1984,32,27 ‘A’ ‘B’ ‘C’ ‘D’ ‘E’ ‘F’ ‘G’ ‘H’ ‘K’ As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants Rajesh D. Chaturvedi Partner R.J. Shah Partner Mumbai Dated : 11th July, 2002 Alok Agarwal S. Seth Sandeep Junnarkar } Directors Kalpana Srinivasan } Assistant Secretary 150 Reliance Industrial Investments and Holdings Limited Reliance Ind Investments and holdings ltd..p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:11)(cid:8)(cid:17)(cid:18) Profit and Loss Account for the year ended 31st March, 2002 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedule 2001-2002 2000-2001 Rs. Rs. Rs. Rs. (Rs. in thousands) INCOME Income on Investments ‘I’ 63,56,92 26,15,78 Miscellaneous receipts (previous year Rs. 48/-) Interest received [Tax Deducted at source Rs.Nil, previous year Rs.22 thousands] EXPENDITURE Establishment and Other Expenses ‘J’ Discount on debentures Interest Debentures Others Depreciation — 15,60 15,70 2,86,65 23,09,18 — 16 — 1,24 63,72,52 26,17,02 12,62 2,47,26 23,09,18 21,00 15 Profit before tax Less: Provision for taxation Profit after tax Add: Taxation for earlier years Balance brought forward from last year Amount available for appropriations Less: Transferred to Debenture Redemption Reserve Balance carried to Balance Sheet Basic Earnings per share (Rupees) Diluted Earnings per share (Rupees) Notes on Accounts ‘K’ 26,11,69 37,60,83 — 37,60,83 1,18,76 78,37,56 117,17,15 5,31,43 111,85,72 2.55 0.64 25,90,21 26,81 — 26,81 — 78,10,75 78,37,56 — 78,37,56 0.02 0.01 As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants Rajesh D. Chaturvedi Partner R.J. Shah Partner Mumbai Dated : 11th July, 2002 Alok Agarwal S. Seth Sandeep Junnarkar } Directors Kalpana Srinivasan } Assistant Secretary Reliance Industrial Investments and Holdings Limited 151 Reliance Ind Investments and holdings ltd..p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:11)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules Forming Part of the Balance Sheet SCHEDULE ‘A’ SHARE CAPITAL Authorised: 14,99,90,000 Equity Shares of Rs. 10 each 10,000 11% Non-Cumulative Redeemable Preference Shares of Rs.10 each Issued, Subscribed & Paid up : 14,75,04,400 Equity Shares of Rs.10 each fully paid up (Held by Reliance Industries Limited, the Holding Company) As at 31st March, 2002 Rs. (Rs. in thousands) As at 31st March, 2001 Rs. 149,99,00 1,00 149,99,00 1,00 150,00,00 150,00,00 147,50,44 147,50,44 147,50,44 147,50,44 Note : Refer Note of Schedule ‘D’ in respect of option on unissued share capital. SCHEDULE ‘B’ RESERVES AND SURPLUS Debenture Redemption Reserve As at 31st March, 2002 Rs. Rs. (Rs. in thousands) As at 31st March, 2001 Rs. Rs. As per last Balance Sheet Add: Transfer from Profit and Loss Account — 5,31,43 — — General Reserves: As per last Balance Sheet Profit and Loss Account SCHEDULE ‘C’ SECURED LOANS 12,40,000 Secured, Redeemable, Non-Interest Bearing, Non-Convertible Debentures Redemption value Less: Discount to be written off in future 5,31,43 3,95,16 111,85,72 — 3,95,16 78,37,56 121,12,31 82,32,72 As at 31st March, 2002 Rs. (Rs. in thousands) As at 31st March, 2001 Rs. 37,20,00 16,34,04 20,85,96 37,20,00 19,20,69 17,99,31 Note: The debentures referred 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. 152 Reliance Industrial Investments and Holdings Limited Reliance Ind Investments and holdings ltd..p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:11)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules Forming Part of the Balance Sheet SCHEDULE ‘D’ UNSECURED LOANS (Rs. in thousands) As at 31st March, 2002 Rs. As at 31st March, 2001 Rs. A. Zero Coupon Convertible Unsecured Redeemable 441,57,15 441,57,15 Debentures of Rs.5000 each 8.25 % Fully Convertible Unsecured Debentures of Rs.100 each Loans from Holding Company Interest accrued and due B. C. D. 279,90,00 279,90,00 861,39,00 18,38,10 1601,24,25 997,15,35 17,87,30 1736,49,80 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 Gross Block Additions Rs. — 24 24 — As at 1.4.2001 Rs. 4,57 47 5,04 5,04 Depreciation Net Block As at 31.3.2002 Rs. As at 1.4.2001 Rs. For the year Rs. As at 31.3.2002 Rs. As at 31.3.2002 Rs. As at 31.3.2001 Rs. (Rs. in thousands) 4,57 71 5,28 5,04 19 14 33 18 7 9 16 15 26 23 49 33 4,31 4,38 33 4,71 48 4,79 4,71 Reliance Industrial Investments and Holdings Limited 153 Reliance Ind Investments and holdings ltd..p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:11)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules Forming Part of the Balance Sheet SCHEDULE ‘F’ INVESTMENTS As at 31st March, 2002 (Rs. in thousands) As at 31st March, 2001 Rs. Rs. Rs. Rs. Investments : (Valued, Verified & Certified by Management) (A) Long Term Investments Quoted: Equity Shares - Fully paid up 1,36,22,707 BSES Ltd. of Rs.10 each — Larsen & Toubro Ltd. of Rs.10 each (92,91,438) 115,12,61,700 Reliance Petroleum Ltd. of Rs.10 each * (105,54,65,700) 214,88,66 — 1654,96,01 40,37,000 India Polyfibres Ltd. of Rs.10 each 4,05,49 214,88,66 95,30,19 1511,26,61 4,05,49 Warrant Equity Shares (WES) - Fully paid up — WES 2001 of Reliance Petroleum Ltd. of — 143,69,40 1873,90,16 1825,50,95 (9,57,96,000 ) Rs.15 each Unquoted: Equity Shares - Fully paid up 1,700 Farvision Securities Private Ltd. of Rs.100 each 3,500 Neha Real Estates Private Limited of Rs.10 each 22,900 Observer (India) Ltd. of Rs.10 each 150 Reliance Aromatics & Petrochemicals Pvt. Ltd. of Rs.10 each 185 Reliance Energy & Project Development Pvt. Ltd. of Rs.10 each 1,26,90,000 Reliance Salgoacar Power Company Limited of Rs.10 each 9,35 24,69 3,79 1 2 9,35 24,69 3,79 1 2 12,69,00 12,69,00 50 Reliance Telecom Ltd. of Rs.10 each 1 1 Preference shares - Fully paid up 63,10,000 14% Cumulative Redeemable Preference shares (Series I) of Reliance Salgaocar Power company Ltd. of Rs.10 each 13,06,87 6,31,00 13,06,87 6,31,00 TOTAL (A) 1893,28,03 1988,58,22 (B) Current Investments Quoted: Equity Shares - Fully paid up 2,500 MH Mills & Industries Ltd. of Rs.10 each Debentures - Fully Paid up 1,250 14% Non Convertible Debentures of MH Mills & Industries Ltd. of Rs.45 each TOTAL (B) TOTAL (A+B) 94 56 1,50 94 56 1,50 1893,29,53 1988,59,72 Less : Provision for diminution in the value of investments 1,50 1,50 1893,28,03 1988,58,22 154 Reliance Industrial Investments and Holdings Limited Reliance Ind Investments and holdings ltd..p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:11)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules Forming Part of the Balance Sheet SCHEDULE ‘F’ (Contd.) * 1 In terms of the Scheme of Amalgamation of Reliance Petroleum Limited (RPL) with Reliance Industries Limited (RIL, the holding company) shares in RIL will be alloted against the Company’s investment in shares of RPL to the Trustees of a Trust created by the company of which the company is the sole beneficiary. The company has formed a Trust, on 2nd May, 2002. 2 The Company’s investment in equity shares to the extent of 84,60,000 shares of Reliance Salgaocar Power Company Limited, are subject to non-disposal undertaking given to Financial Institutions till the loans granted by them to Reliance Salgaocar Power Company Limited are outstanding or till their Project is completed, whichever is later. AGGREGATE VALUE OF Quoted Investment 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 CHEDULE ‘H’ CURRENT LIABILITIES AND PROVISIONS Current Liabilities: Sundry Creditors Due to : Small Scale Industries Others Provisions: For Taxation For Gratuity For Leave encashment (Rs. in thousands) As at 31st March, 2002 Market Value Rs. Book Value Rs. As at 31st March, 2001 Book Value Market Value Rs. Rs. 1873,91,66 3279,12,25 1969,21,85 6037,10,45 19,37,87 1893,29,53 19,37,87 1988,59,72 As at 31st March, 2002 (Rs. in thousands) As at 31st March, 2001 Rs. 4 54 97,38 Rs. 58 Rs. 4 1,68 25,76 Rs. 1,72 1,16,20 2,13,58 6,16,20 6,41,96 2,14,16 6,43,68 As at 31st March, 2002 (Rs. in thousands) As at 31st March, 2001 Rs. Rs. Rs. Rs. — 4,72,74 — 41 87 — 5,23,52 4,72,74 5,23,52 5,50,00 28 54 1,28 4,74,02 5,50,82 10,74,34 Reliance Industrial Investments and Holdings Limited 155 Reliance Ind Investments and holdings ltd..p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:11)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules Forming Part of the Profit and Loss Account SCHEDULE ‘I INCOME OF INVESTMENTS Dividend From Long Term Investments Profit/(loss) on sale of Investments (Net) From Long Term Investments From Current Investments (Rs. in thousands) 2001-2002 Rs. Rs. 2000-2001 Rs. Rs. 64,21,58 11,81,55 (64,66) — 14,33,78 45 (64,66) 63,56,92 14,34,23 26,15,78 SCHEDULE ‘J’ (Rs. in thousands) ESTABLISHMENT AND OTHER EXPENSES 2001-2002 2000-2001 Salary, Wages and bonus Contribution to Superannuation, Gratuity etc. Legal & Professional charges Trusteeship fee Filling Fees Travelling expenses Custodian fees & demat charges Miscellaneous expenses Auditors’ Remuneration: Audit Fees Tax Audit Fees Rs. 1,05 53 Rs. 5,08 40 75 1,01 5 — 4,78 2,05 1,58 15,70 Rs. 1,05 53 Rs. 4,33 36 3 1,00 1 7 5,01 23 1,58 12,62 Notes on Accounts SCHEDULE ‘K’ 1. SIGNIFICANT ACCOUNTING POLICIES a) Basis of preparation of Financial Statements The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956 as adopted consistently by the Company. 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. c) Employees/Retirement Benefits Gratuity and Leave encashment benefits at the time of retirement are charged to Profit and Loss account on the basis of management estimates of the said liability. d) 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. 2. The previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. 3. During the year, company has transferred 92,20,665 Equity shares of Larsen and Toubro Ltd. to its Holding Company at cost. 4. No provision is made for premium on redemption of debentures since the amount so payable is uncertain. The premium paid will therefore be accounted for in the year of redemption. 5. As the Company is not a manufacturing company, information required under paragraphs 3 and 4 of Part II to Schedule VI of the Companies Act, 1956 is given to the extent applicable. 156 Reliance Industrial Investments and Holdings Limited Reliance Ind Investments and holdings ltd..p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:11)(cid:8)(cid:17)(cid:18) SCHEDULE ‘K’ (Contd.) 6. Contingent Liabilities Disputed income tax liabilities 7. Segment Reporting (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) As at 31st March, 2002 (Rs. in thousands) 1,15,98 As at 31st March, 2001 (Rs. in thousands) — The company is engaged in business of Investments in shares and securities and there are no separate segments as per Accounting Standard - 17 “Segment Reporting” issued by the Institute of Chartered Accoutants of India. 8. Earnings per share (a) Basic earnings per equity share (Rs.) Numerator - Profit after tax (Rs. in thousands) Denominator - Weighted average number of equity shares Nominal value per equity share (Rs.) (b) Diluted, earnings per equity share (Rs.) Numerator - Profit after tax (Rs. in thousands) Denominator - Weighted average number of equity shares Nominal value per equity share (Rs.) 2001-2002 2.55 37,60,83 14,75,04,400 10 0.64 37,60,83 58,90,75,900 10 2000-2001 0.02 26,81 14,75,04,400 10 0.01 26,81 58,90,75,900 10 9. Related Party Disclosures List of related parties and Relationships: Parties where control exists: Reliance Industries Limited (Holding Company) Fellow Subsidiaries: Associates: Vimal Fabrics Limited Reliance Ventures Limited Reliance Power Ventures Limited Reliance Petroinvestments Limited Reliance Infocom B.V. Reliance Technologies LLC Reliance Strategic Investments Limited Reliance Infocom Inc. Reliance Petroleum Limited (in amalgamation with the Holding Company) Reliance Capital Limited Reliance Industiral Infrastructure Limited Reliance Salgaocar Power Company Limited Reliance Europe Limited Reliance Communication Infrastructure Limited Reliance Telecom Limited Reliance LNG Private Limited Reliance Infocomm Limited Reliance Enterprises Limited Reliance Global Trading Private Limited BSES Ltd. 10. Transactions during the year (Rs. in thousands) Income Dividend from Associates Expenditure Interest on Debentures paid to Holding Company Custody/Demat charges paid to Associates Unsecured Loans From Holding Company Taken during the year Repaid during the year Balance as on 31st March, 2002 Investments: Sold to holding Company Associates: Balance as on 31st March, 2002 58,22,24 23,09,18 4,78 23,70,10 158,95,65 1601,24,25 94,57,64 1888,84,68 Note: Related Party disclosure for previous year is not included in above, as Accounting Standard (AS-18) has become mandatory from 1st April 2001. Reliance Industrial Investments and Holdings Limited 157 Reliance Ind Investments and holdings ltd..p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:11)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts SCHEDULE ‘K’ (Contd.) 11. 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. 4 1 0 8 1 State Code Balance Sheet Date 3 1 - 0 3 - 0 2 2. Capital raised during the year: (Rs. in thousands) Public Issue Bonus Issue N I N I L L Rights Issue Private Placement 3. Position of mobilisation and deployment of funds: (Rs. in thousands) 1 1 N I L N I L Total Liabilities Source of Funds: Paid-up Capital Secured Loans Application of Funds: Net Fixed Assets 1 8 9 5 4 6 9 8 Total Assets 1 8 9 5 4 6 9 8 1 4 7 5 0 4 4 Reserves and Surplus 1 2 1 1 2 3 1 2 0 8 5 9 6 Unsecured Loans 1 6 0 1 2 4 2 5 4 7 9 Investments 1 8 9 3 2 8 0 3 Net Current Assets ( 2 5 9 8 6 Accumulated Losses N I ) L Miscellaneous Expenditure 4. Performance of Company: (Rs. in thousands) Turnover/Income 6 3 7 2 5 2 Total Expenditure Profit/(Loss) before tax 3 7 6 0 8 3 Profit/(Loss) after tax Earnings per Share (Rupees) 2 . 5 5 Dividend Rate (%) 5. Generic names of principal products, services of the Company: Item Code No. Product Description N A N A N I L 2 6 1 1 6 9 3 7 6 0 8 3 N I L As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants Rajesh D. Chaturvedi Partner R.J. Shah Partner Mumbai Dated : 11th July, 2002 Alok Agarwal S. Seth Sandeep Junnarkar } Directors Kalpana Srinivasan } Assistant Secretary 158 Reliance Industrial Investments and Holdings Limited Reliance Ind Investments and holdings ltd..p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:11)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Cash Flow Statement Annexed to the Balance Sheet for the Year April 2001 to March 2002 A Cash Flow from Operating Activities Net Profit after tax as per Profit and Loss Account Adjusted for : Depreciation Discount on Debentures Loss / (Profit) on sale of investments Income from dividend Provision for Gratuity/leave encashment Interest income Interest expenses Operating Profit before working capital Changes Adjusted for : Trade and other receivables Trade payables Cash Generated from Operations Taxes paid Net Cash from operating activities B Cash flow from Investing Activities Purchase of fixed assets Purchase of investments Sale of Investments Interest received Dividend received 2001-2002 (Rs. in thousands) 2000-2001 Rs. Rs. Rs. 37,60,83 Rs. 26,81 16 2,86,65 64,66 (64,21,58) 46 (15,60) 23,09,18 (37,76,07) (71,61) (50,78) (24) — 94,65,52 15,60 64,21,58 15 2,47,26 (14,34,23) (11,81,55) 21 (1,24) 23,30,18 ( 39,22) 4,01,39 3,20,11 — (23,05,51) 28,48,08 1,24 11,81,55 (38,98,46) (1,37,63) 68,76 (68,87) 6,82, 28 7,09,09 62 7,09,71 C Cash flow from financing Activities Repayment of long-term borrowings (to holding company) Repayment of Short-term borrowings Interest paid (135,76,35) — (22,58,38) 16,05,00 (35,00,00) (5,42,88) 159,02,46 17,25,36 Net Increase/(Decrease) in Cash and Cash equivalents Opening Balance of Cash and Cash equivalents Closing Balance of Cash and Cash equivalents Mumbai Dated : 11th July, 2002 Auditors’ Report (158,34,73) (24,37,88) (1,14) 1,72 58 ( 2,81) 4,53 1,72 For and on behalf of the Board Alok Agarwal S. Seth Sandeep Junnarkar } Directors Kalpana Srinivasan } Assistant Secretary We have verified the attached Cash Flow Statement of Reliance Industrial Investments and Holdings Limited., derived from audited financial statements and the books and records maintained by the Company for the year ended 31st March, 2002 and 31st March, 2001 and found the same in agreement therewith For Chaturvedi & Shah Chartered Accountants Rajesh D. Chaturvedi Partner Mumbai Dated : 11th July, 2002 For Rajendra & Co. Chartered Accountants R.J. Shah Partner Reliance Industrial Investments and Holdings Limited 159 Reliance Ind Investments and holdings ltd..p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:11)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Directors’ Report To the Members, Auditors Your Directors have pleasure in presenting the 3rd Annual Report together with the Audited Statement of Accounts for the year ended 31st March, 2002. Operations During the year under review your Company has incurred a loss of Rs.55,795/-. M/s. Chaturvedi & Shah and M/s. Rajendra & Co., Joint Auditors of the Company, hold office until the conclusion of the ensuing Annual General Meeting. The Auditors have under Section 224(1-B) of the Companies Act, 1956 furnished the certificate of their eligibility for re-appointment. Accordingly, the said Auditors are proposed to be appointed as Joint Auditors of the Company at the ensuing Annual General Meeting. Dividend Fixed Deposits Your Directors have not recommended any dividend on equity shares for the financial year under review. Directors' Responsibility Statement Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956 with respect to Directors' Responsibility Statement it is hereby confirmed that: (i) them consistently and made in the preparation of the accounts for the financial year ended 31st March, 2002, the applicable accounting standards have been followed; the Directors have selected such accounting policies and judgements and applied estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the loss of the Company for the year under review; the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and the Directors have prepared the accounts for the financial year ended 31st March, 2002 on a 'going concern' basis. the Companies Act, 1956 the provisions of (ii) (iii) (iv) Directors Shri M.D.Sudharsan, retires by rotation and being eligible offers himself for reappointment at the ensuing Annual General Meeting. The Company has not accepted any fixed deposit during the year. Hence, no information is required to be appended to this report in terms of Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1988. 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 and outgo during the year. 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. Acknowledgement Your Directors wish immense to place on appreciation for the assistance and cooperation received from various Statutory Authorities. record their For and on behalf of the Board L.V. Merchant Surendra Pipara } Directors Reliance Ventures Limited Mumbai Dated : 11th July, 2002 160 Reliance Ventures ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Auditors’ Report To, The Members of Reliance Ventures Limited. We have audited the attached Balance Sheet of Reliance Ventures Limited as at 31st March, 2002 and the Profit and Loss Account for the year ended on that date annexed thereto. the These Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. financial statements are responsibility of the We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 1. As required by the Manufacturing and Other Companies (Auditors' Report) Order, 1988, the Central Government of India 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. issued by 2. Further to our comments in the Annexure referred to in paragraph 1 above, we report that: a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. b) c) d) e) f) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of such books. The Balance Sheet and Profit and Loss Account referred to in this Report are in agreement with the books of account. In our opinion, the Balance Sheet and Profit and Loss the Account complies with mandatory accounting standards referred to in Section 211(3C) of the Companies Act, 1956. requirements of the In our opinion, and based on information and explanations given to us, none of the directors are disqualified as on 31st March, 2002 from being appointed as directors in terms of clause (g) of sub- section (1) of Section 274 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 in conformity with the accounting principles generally accepted in India : i) ii) in so far as it relates to the Balance Sheet, of the state of affairs of the Company as at 31st March, 2002 and in so far as it relates to the Profit and Loss Account, of the 'Loss' of the Company for the year ended on that date. For Chaturvedi & Shah Chartered Accountants Rajesh D. Chaturvedi Partner Mumbai Dated : 11th July, 2002 For Rajendra & Co. Chartered Accountants R.J. Shah Partner Reliance Ventures ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:16)(cid:8)(cid:17)(cid:18) Reliance Ventures Limited 161 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 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), (xi), (xii), (xiv) and (xvi) of the clause A and item (ii) of the clause D of paragraph 4 of the aforesaid Order are not applicable. 3. 4. 5. 6. 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. loan, secured or The Company has not granted any 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. the to 7. 8. In our opinion and according information and explanations given to us, the Company has not accepted any deposits from public. the to internal audit In our opinion arrangement commensurate with its size and the nature of its business. the Company has an 9. According to the information and explanations given to us, the the Employees' Provident Fund and provisions of 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, 2002 for a period of more than six months from the date they became payable. 11. In our opinion and according information and explanations given to us, no personal expenses of Directors have been charged to revenue account. the to 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. 14. 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. For Chaturvedi & Shah Chartered Accountants Rajesh D. Chaturvedi Partner Mumbai Dated : 11th July, 2002 For Rajendra & Co. Chartered Accountants R.J. Shah Partner 162 Reliance Ventures Limited Reliance Ventures ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Balance Sheet as at 31st March, 2002 Schedule As at 31st March, 2002 Rs. Rs. (Rs. in thousands) As at 31st March, 2001 Rs. Rs. SOURCES OF FUNDS: Shareholders' Funds Share Capital 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 ‘A’ ‘B’ ‘C’ Less : Current Liabilities and Provisions ‘D’ Current Liabilities Provisions 2,02,00 2,02,00 1394,12,62 1396,14,62 1427,21,72 1429,23,72 1384,08,12 1419,88,12 56 12,04,59 12,05,15 13 2 15 35 9,34,19 9,34,54 13 2 15 Net Current Assets 12,05,00 9,34,39 Miscellaneous Expenditure (To the extent not written off or adjusted) Profit and Loss Account Total 62 88 88 33 1396,14,62 1429,23,72 Notes on Accounts ‘E’ As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants Rajesh D. Chaturvedi Partner Mumbai Dated : 11th July, 2002 R.J. Shah Partner L.V. Merchant Surendra Pipara M. D. Sudharsan } Directors V. Sankaranarayanan } Assistant Secretary Reliance Ventures Limited 163 Reliance Ventures ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:16)(cid:8)(cid:17)(cid:18) Profit and Loss Account for the Year ended 31st March, 2002 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) INCOME EXPENDITURE Audit fees Filing fees General Expenses Miscellaneous Expenditure written off Loss before tax Less: Provision for taxation Loss after tax Add: Balance brought forward from last year Balance carried to Balance Sheet Schedule 2001-2002 (Rs. in thousands) 2000-2001 Rs. 13 9 6 27 Rs. 13 2 1 27 Rs. – 55 (55) – (55) (33) (88) Rs. – 43 (43) – (43) 10 (33) Basic and Diluted Earnings per share (Rupees) (0.03) (0.02) Notes on Accounts ‘E’ As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants Rajesh D. Chaturvedi Partner Mumbai Dated : 11th July, 2002 R.J. Shah Partner L.V. Merchant Surendra Pipara M. D. Sudharsan } Directors V. Sankaranarayanan } Assistant Secretary 164 Reliance Ventures Limited Reliance Ventures ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules Forming Part of the Balance Sheet SCHEDULE ‘A’ SHARE CAPITAL Authorised: 20,20,000 Equity Shares of Rs. 10 each 4,80,000 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 Equity Shares - fully paid up 50,000 Rosche Trading Pvt. Ltd. of Rs.10 each In Preference Shares - partly paid up 90,000 12% Cumulative Redeemable Preference shares of Rosche Trading Pvt. Ltd. of Rs.100 each, Rs.55 paid up In Debentures - fully paid up As at 31st March, 2002 Rs. (Rs. in thousands) As at 31st March, 2001 Rs. 2,02,00 48,00 2,50,00 2,02,00 2,02,00 48,00 2,50,00 2,02,00 2,02,00 2,02,00 (Rs. in thousands) As at 31st March, 2002 Rs. Rs. As at 31st March, 2001 Rs. Rs. 5,00 49,50 5,00 49,50 40,95,000 Reliance Polyolefins Pvt. Ltd. 409,50,00 420,00,00 (42,00,000) (Zero coupon Optionally Fully Convertible Debentures of Rs.1000 each) 2,40,900 Reliance Chemicals Pvt. Ltd. (Series I) 24,09,00 32,10,00 (3,21,000) (Zero coupon Optionally Fully Convertible Debentures of Rs.1000 each) 28,84,042 Reliance Chemicals Pvt. Ltd. (Series II) 288,40,42 288,40,42 (Zero coupon Optionally Fully Convertible Debentures of Rs.1000 each) 33,07,760 Reliance Aromatics and Petrochemicals 330,77,60 339,41,60 (33,94,160) Pvt. Ltd. (Zero coupon Optionally Fully Convertible Debentures of Rs.1000 each) 33,07,660 Reliance Energy & Project Development 330,76,60 339,41,60 (33,94,160) Pvt. Ltd. (Zero coupon Optionally Fully Convertible Debentures of Rs.1000 each) 1383,53,62 1384,08,12 1419,33,62 1419,88,12 Reliance Ventures Limited 165 Reliance Ventures ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 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 Debenture application money Advance payment of taxes SCHEDULE ‘D’ CURRENT LIABILITIES AND PROVISIONS Current Liabilities Sundry Creditors: Due to : Small Scale Industries Others Provisions Provision for taxation As at 31st March, 2002 Rs. Rs. (Rs. in thousands) As at 31st March, 2001 Rs. Rs. 56 35 12,04,50 9 9,34,10 9 12,04,59 12,05,15 9,34,19 9,34,54 As at 31st March, 2002 Rs. Rs. (Rs. in thousands) As at 31st March, 2001 Rs. Rs. — 13 — 13 13 2 15 13 2 15 Notes on Accounts SCHEDULE ‘E’ 1. Significant Accounting Policies a) General The financial statements have been prepared in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956, as adopted consistently by the company. b) 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 opinion of the management. c) Preliminary expenses are amortised over a period of five years on pro-rata basis. 2. The Previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. 3. Earnings per share Basic, as well as diluted, earnings per equity share (Rs.) Numerator - profit/(loss) after tax (Rs. in thousands) Denominator - weighted average number of equity shares Nominal value per equity share (Rs.) 4. Contingent Liabilities Uncalled liabilities on partly paid Preference shares 2001-2002 (0.03) (55) 20,20,000 10 2000-2001 (0.02) (43) 20,20,000 10 As at 31st March, 2002 As at 31st March, 2001 Rs. in thousands Rs. in thousands 40,50 40,50 5. 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. 166 Reliance Ventures Limited Reliance Ventures ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts Schedule 'E' (contd..) 6. 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 2 2. Capital raised during the year: (Rs. in thousands) Public Issue Bonus Issue N I N I L L Rights Issue Private Placement N I L N I L 3. Position of mobilisation and deployment of funds: (Rs. in thousands) Total Liabilities 1 3 9 6 1 4 7 7 Total Assets 1 3 9 6 1 4 7 7 Source of Funds: Paid-up Capital Secured Loans Application of Funds: 2 0 2 0 0 Reserves and Surplus N I L N I L Unsecured Loans 1 3 9 4 1 2 6 2 Net Fixed Assets N I L Investments 1 3 8 4 0 8 1 2 Net Current Assets 1 2 0 5 0 0 Accumulated Losses 8 8 Miscellaneous Expenditure 4. Performance of Company: (Rs. in thousands) Turnover/Income N I L Total Expenditure Profit/(Loss) before Tax ( 5 Earnings per Share (Rupees) ( 0 . 0 5 3 ) ) Profit/(Loss) after Tax Dividend per Share (Rs) 5. Generic names of principal products, services of the Company: Item Code Product Description N A N A 6 2 5 5 ( 5 5 ) N I L As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants Rajesh D. Chaturvedi Partner Mumbai Dated : 11th July, 2002 R.J. Shah Partner L.V. Merchant Surendra Pipara M. D. Sudharsan } Directors V. Sankaranarayanan } Assistant Secretary Reliance Ventures Limited 167 Reliance Ventures ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:16)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Directors’ Report To the Members, Auditors Your Directors have pleasure in presenting the 2nd Annual Report together with the Audited Statement of Accounts for the financial year ended 31st March, 2002. Operations During the year under review, the Company has earned a profit of Rs. 8,56,67,955/-. Dividend M/s. Chaturvedi & Shah and M/s. Rajendra & Co., Joint Auditors of the Company, hold office till the conclusion of the ensuing Annual General Meeting and are eligible for reappointment. The Auditors have, under section 224(1-B) of the Companies Act, re- 1956 appointment. Accordingly, the said Auditors are proposed to be appointed as Joint Auditors of the Company at the ensuing Annual General Meeting. the certificate of their eligibility furnished for Your Directors have not recommended any dividend for the year under review. Fixed Deposits Directors’ Responsibility Statement Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, with respect to Directors’ Responsibility Statement, it is hereby confirmed that: (i) (ii) (iii) in the preparation of the accounts for the financial year ended 31st March, 2002, the applicable accounting standards have been followed; them consistently and made the Directors have selected such accounting policies and applied judgements and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for the year under review; the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and the Companies Act, 1956 the provisions of (iv) the Directors have prepared the accounts for the financial year ended 31st March, 2002 on a ‘going concern’ basis. Directors Shri S. Seth retires by rotation and being eligible offers himself for reappointment at the ensuing Annual General Meeting. The Company has not accepted any fixed deposit during the year. Hence, no information is required to be appended to this report in terms of Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1988. 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 and outgo during the year. 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. Acknowledgement Your Directors wish immense to place on appreciation for the assistance and cooperation received from various Statutory Authorities. record their For and on behalf of the Board S. Seth Atul Dayal } Directors Mumbai Dated : 11th July, 2002 168 Reliance Power Ventures Limited Reliance Power ventures ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Auditors’ Report To, The Members of Reliance Power Ventures Limited. We have audited the attached Balance Sheet of Reliance Power Ventures Limited as at 31st March, 2002 and the Profit and Loss Account for the year ended on that date annexed thereto. the These Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. financial statements are responsibility of the the financial statements are We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 1. As required by the Manufacturing and Other Companies (Auditors' Report) Order, 1988, the Central Government of India 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. issued by 2. Further to our comments in the Annexure referred to in paragraph 1 above, we report that: a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. b) c) d) e) f) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of such books. The Balance Sheet and Profit and Loss Account referred to in this Report are in agreement with the books of account. In our opinion, the Balance Sheet and Profit and Loss the Account complies with mandatory accounting standards referred to in Section 211(3C) of the Companies Act, 1956. requirements of the In our opinion, and based on information and explanations given to us, none of the directors are from being disqualified as on 31st March, 2002 appointed as directors in terms of clause (g) of sub- section (1) of Section 274 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 in conformity with the accounting principles generally accepted in India : i) ii) in so far as it relates to the Balance Sheet, of the state of affairs of the Company as at 31st March, 2002 and in so far as it relates to the Profit and Loss Account, of the 'Profit' of the Company for the year ended on that date. For Chaturvedi & Shah Chartered Accountants Rajesh D. Chaturvedi Partner Mumbai Dated : 11th July, 2002 For Rajendra & Co. Chartered Accountants Apurva R. Shah Partner Reliance Power ventures ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) Reliance Power Ventures Limited 169 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 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), (xi), (xii), (xiv) and (xvi) of the clause A and item (ii) of the Clause D of paragraph 4 of the aforesaid Order are not applicable. 3. 4. 5. 6. 7. 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. the to In our opinion and according information and explanations given to us, the Company has not accepted any deposits from public. the to 8. 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, 2002 for a period of more than six months from the date they became payable. 11. In our opinion and according to the information and explanations given to us, no personal expenses of Directors have been charged to revenue account. 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. According to the information and explanations given to us, the provisions of any special statute applicable to Chit-Fund, Nidhi or Mutual Benefit Society are not applicable to the Company. 14. In our opinion, the Company has maintained proper records and made timely entries in respect of investments made by the Company. The Company’s investments are held in its own name, save and except, those in the process of being transferred in its name. For Chaturvedi & Shah Chartered Accountants Rajesh D. Chaturvedi Partner Mumbai Dated : 11th July, 2002 For Rajendra & Co. Chartered Accountants Apurva R. Shah Partner 170 Reliance Power Ventures Limited Reliance Power ventures ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Balance Sheet as at 31st March, 2002 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 ‘D’ Current Liabilities Provisions As at Schedule 31st March, 2002 Rs. Rs. (Rs. in thousands) As at 31st March, 2001 Rs. Rs. ‘A’ 2,02,00 8,57,52 2,02,00 84 10,59,52 721,50,50 732,10,02 2,02,84 486,05,50 488,08,34 ‘B’ ‘C’ 754,62,78 492,67,31 1,61 55 2,16 22,55,05 62 22,55,67 78 39 1,17 4,60,59 57 4,61,16 Net Current Assets Miscellaneous Expenditure (To the extent not written off or adjusted) (22,53,51) 75 (4,59,99) 1,02 Total 732,10,02 488,08,34 Notes on Accounts ‘E’ As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants Rajesh D. Chaturvedi Partner Apurva R. Shah Partner Mumbai Dated : 11th July, 2002 S. Seth Atul Dayal Rohit Shah } Directors R. K. Khandelwal } Assistant Secretary Reliance Power Ventures Limited 171 Reliance Power ventures ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) Profit and Loss Account for the Year ended 31st March, 2002 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) INCOME Dividend on long term investments Interest (Tax Deducted at source Rs. NIL, previous year Rs. 39 thousand) Miscellaneous income EXPENDITURE Payment to Auditors : Audit fees Tax Audit fees Filling fees Loss on sale of investments Professional fees General expenses Miscellaneous Expenditure written off Profit before tax Less : Provision for Taxation Profit after tax Add: Balance brought forward from last year Balance carried to Balance Sheet Basic and Diluted Earnings per share (Rupees) Notes on Accounts ‘E’ Schedule For the year 1-4-2001 to 31-3-2002 Rs. Rs. (Rs. in thousands) For the period 19-1-2000 to 31-3-2001 Rs. Rs. 8,56,67 — 1,02 13 6 8 32 — 10 27 — 1,76 21 8,57,69 1,97 13 — 1 — 4 6 32 96 8,56,73 5 8,56,68 84 8,57,52 42.41 56 1,41 57 84 — 84 0.04 As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants Rajesh D. Chaturvedi Partner Apurva R. Shah Partner Mumbai Dated : 11th July, 2002 S. Seth Atul Dayal Rohit Shah } Directors R. K. Khandelwal } Assistant Secretary 172 Reliance Power Ventures Limited Reliance Power ventures ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules Forming Part of the Balance Sheet SCHEDULE ‘A’ SHARE CAPITAL Authorised: 21,00,000 Equity Shares of Rs.10 each 4,00,000 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 Quoted In Equity Shares - fully paid up As at 31st March, 2002 Rs. (Rs. in thousands) As at 31st March, 2001 Rs. 2,10,00 40,00 2,50,00 2,02,00 2,02,00 2,10,00 40,00 2,50,00 2,02,00 2,02,00 As at 31st March, 2002 Rs. (Rs. in thousands) As at 31st March, 2001 Rs. 3,28,90,275 BSES Limited of Rs. 10 each 754,62,78 492,67,31 (2,02,38,252) AGGREGATE VALUE OF Quoted Investments Unquoted Investments 754,62,78 492,67,31 As at 31st March, 2002 Book Value Market Value Rs. Rs. As at 31st March, 2001 Book Value Rs. Market Value Rs. 729,17,74 754,62,78 — 754,62,78 492,67,31 — 492,67,31 380,17,56 Note : The Company has not provided for diminution in market value of long term quoted investments which is lower by Rs. 25,45,04 thousand, compared to the book value, as the decline in value is considered temporary. Reliance Power ventures ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) Reliance Power Ventures Limited 173 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules Forming Part of the Balance Sheet SCHEDULE ‘C’ CURRENT ASSETS, LOANS AND ADVANCES Current Assets Cash and Bank Balances Cash on hand (Rs. 292/- previous year Rs. NIL) Balance with Bank In Current Account with a Scheduled Bank Loans and Advances Advances payment of taxes SCHEDULE ‘D’ CURRENT LIABILITIES AND PROVISIONS Current Liabilities Sundry Creditors: Due to: Small Scale Industries Ohers Provisions Provision for taxation As at 31st March, 2002 Rs. Rs. — 1,61 1,61 55 2,16 (Rs. in thousands) As at 31st March, 2001 Rs. Rs. — 78 78 39 1,17 As at 31st March, 2002 (Rs. in thousands) As at 31st March, 2001 Rs. Rs. Rs. Rs. — 22,55,05 — 4,60,59 22,55,05 62 22,55,67 4,60,59 57 4,61,16 Notes on Accounts SCHEDULE 'E' 1. SIGNIFICANT ACCOUNTING POLICIES a) General The financial statements have been prepared in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956 as adopted consistently by the Company. b) 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 opinion of the management. c) Preliminary expenses are amortised over a period of five years on pro-rata basis. 2. The Current financial year is for the period of twelve months, wehreas the previous year was for a period from 19th January, 2000 to 31st March, 2001. The current fiancial year's figures to that extent are not comparable. 3. The previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. 4. Earnings per share Basic, as well as diluted, earnings per equity share (Rs.) Numerator - profit/(loss) after tax (Rs. in thousands) Denominator - weighted average number of equity shares Nominal value per equity share (Rs.) 2001-2002 42.41 8,56,68 20,20,000 10 2000-2001 0.04 84 20,20,000 10 5. 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. 174 Reliance Power Ventures Limited Reliance Power ventures ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts Schedule 'E' (contd.) 6. 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 3 7 3 1 State Code 1 1 Balance Sheet Date 3 1 - 0 3 - 0 2 2. Capital raised during the year: (Rs. in thousands) Public Issue Bonus Issue N I N I L L Rights Issue Private Placement N I L N I L 3. Position of mobilisation and deployment of funds: (Rs. in thousands) Total Liabilities 7 5 4 6 5 6 9 Total Assets 7 5 4 6 5 6 9 Source of Funds: Paid-up Capital Secured Loans Application of Funds: 2 0 2 0 0 Reserves and Surplus 8 5 7 5 2 N I L Unsecured Loans 7 2 1 5 0 5 0 Net Fixed Assets N I L Investments 7 5 4 6 2 7 8 Net Current Assets (2 2 5 3 5 1) Accumulated Losses N I L Miscellaneous Expenditure 4. Performance of Company: (Rs. in thousands) Turnover/Income Profit before Tax 8 5 7 6 9 Total Expenditure 8 5 6 7 3 Profit after Tax Earnings per Share (Rupees) 4 2 . 4 1 Dividend per Share (Rs) 5. Generic names of principal products, services of the Company: Item Code Product Description N A N A 7 5 9 6 8 5 6 6 8 N I L As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants Rajesh D. Chaturvedi Partner Apurva R. Shah Partner Mumbai Dated : 11th July, 2002 S. Seth Atul Dayal Rohit Shah } Directors R. K. Khandelwal } Assistant Secretary Reliance Power Ventures Limited 175 Reliance Power ventures ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Directors’ Report To the Members, Your Directors have pleasure in presenting the 3rd Annual Report together with the Audited Statement of Accounts for the financial year ended 31st March, 2002. Operations The Company has incurred a loss of Rs. 42,35,963/- during the year. Your directors have not recommended any dividend for the year under review. After the close of the financial year, the Company acquired 26% of the voting capital of Indian Petrochemicals Corporation Limited (IPCL), at Rs.231 per share, in the process of disinvestment of IPCL. In compliance with the provisions contained under The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 and pursuant to the terms of Share Purchase Agreement, the Company had made a Public Announcement on 27th May, 2002 expressing its intent to acquire fully paid-up equity shares representing 20% of the total voting capital of IPCL held by the public shareholders. The Company has successfully completed the acquisition of 20% of the total voting capital of IPCL. Consequently, the Company’s holding in IPCL has increased to about 46% of the voting capital. Change of Name The name of the company has been changed from WorldTel India Holdings Limited to Reliance Petroinvestments Limited with effect from 19th December, 2001. The Company became a subsidiary of Reliance Industries Limited on 6th December, 2001 and ceased to be subsidiary on 17th April, 2002. The Company has been granted Certificate of Registration by the Reserve Bank of India, to commence the business of non- banking financial company. Directors’ Responsibility Statement Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956 with respect to Directors’ Responsibility Statement, it is hereby confirmed that: (i) (ii) (iii) in the preparation of the accounts for the financial year ended 31st March, 2002, the applicable accounting standards have been followed; them consistently and made the Directors have selected such accounting policies and applied judgements and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the loss of the Company for the year under review; the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and the Companies Act, 1956 the provisions of (iv) the Directors have prepared the accounts for the financial year ended 31st March, 2002 on a ‘going concern’ basis. Audit Committee As required by the provisions of Section 292A of the Companies the Board of Directors has constituted Audit Act, 1956, Committee comprising of three Directors i.e. Shri Jyotindra Thacker, Shri Ajeet Varma and Shri A. V. Betkekar. Directors During the year Shri Manoj Modi and Shri S. Seth ceased to be Directors of the Company. The Board places on record its appreciation for the valuable guidance received from Shri Manoj Modi and Shri S. Seth, during their tenure as Director. Shri Ajeet Varma and Shri A. V. Betkekar were appointed as additional directors with effect from 1st November, 2001. They hold office as directors upto the date of the ensuing Annual General Meeting. The Company has received notices under section 257 of their the Companies Act, 1956, proposing appointment as directors, subject to retirement by rotation. Shri Jyotindra Thacker retires by rotation and being eligible offers himself for reappointment at the ensuing Annual General Meeting. Auditors M/s. Chaturvedi & Shah and M/s. Rajendra & Co., Joint Auditors of the Company, hold office until the conclusion of the ensuing Annual General Meeting. The Company has received letters from them to the effect that their appointment, if made, would be within the prescribed limits under section 224 (1-B) of the Companies Act, 1956. Accordingly, the said Auditors are proposed to be appointed as Joint Auditors of the Company at the ensuing Annual General Meeting. Fixed Deposits The Company has not accepted any fixed deposit from the public. Hence, no information is required to be appended to this report in terms of Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1988. 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 and outgo during the year. 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. Acknowledgement Your Directors wish immense to place on appreciation for the assistance and cooperation received from various Statutory Authorities. record their For and on behalf of the Board Ajeet Varma Jyotindra Thacker } Directors Mumbai Dated : 3rd September, 2002 176 Reliance Petroinvestments Limited Reliance Petroinvesments ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Auditors’ Report b) c) d) e) f) To, The Members of Reliance Petroinvestments Limited. (Formerly known as Worldtel India Holdings Limited) We have audited the attached Balance Sheet of Reliance Petroinvestments Limited as at 31st March, 2002 and the Profit and Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit. the financial statements are We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 1. As required by the Manufacturing and Other Companies the Central (Auditors’ Report) Order, 1988 Government of India 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. issued by 2. Further to our comments in the Annexure referred to in paragraph 1 above, we report that: a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. In our opinion proper books of account as required by law have been kept by the Company, so far as appears from our examination of such books. The Balance Sheet and Profit and Loss Account referred to in this Report are in agreement with the books of account. 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 In our opinion, and based on information and explanations given to us, none of the directors are disqualified as on 31st March, 2002 from being appointed as directors in terms of clause (g) of sub- section (1) of Section 274 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 in conformity with the accounting principles generally accepted in India: i) ii) in so far as it relates to the Balance Sheet, of the state of affairs of the Company as at 31st March, 2002 and in so far as it relates to the Profit and Loss Account, of the ‘Loss’ of the Company for the year ended on that date. For Chaturvedi & Shah Chartered Accountants Rajesh D. Chaturvedi Partner Mumbai Dated : 3rd September, 2002 For Rajendra & Co. Chartered Accountants Apurva R. Shah Partner Reliance Petroinvestments Limited 177 Reliance Petroinvesments ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 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 8. 4(A) (i) and (ii) of the said Order are not applicable. In our opinion the Company has an internal audit arrangement commensurate with its size and the nature of its business. 2. Since the Company has not carried out any manufacturing and / or trading activity, items (iii), (iv), (v), (vi), (xi), (xii), (xiv) and (xvi) of the clause A and item (ii) of the Clause D of paragraph 4 of the aforesaid Order are not applicable. 3. 4. 5. 6. 7. taken any The Company has not loans, 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 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. the to In our opinion and according information and explanations given to us, the Company has not accepted any deposits from the Public. the to 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, 2002 for a period of more than six months from the date they became payable. 11. In our opinion and according information and explanations given to us, no personal expenses of Directors have been charged to revenue account. the to 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. According to the information and explanations given to us, the provisions of any special statute applicable to Chit- Fund, Nidhi or Mutual Benefit Society are not applicable to the Company. 14. In our opinion, the Company has maintained proper records and made timely entries in respect of investments dealt in or traded by the Company. The Company’s investments are held in its own name. For Chaturvedi & Shah Chartered Accountants Rajesh D. Chaturvedi Partner Mumbai Dated : 3rd September, 2002 For Rajendra & Co. Chartered Accountants Apurva R. Shah Partner 178 Reliance Petroinvestments Limited Reliance Petroinvesments ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Balance Sheet as at 31st March, 2002 As at Schedule 31st March, 2002 Rs. Rs. (Rs. in thousands) As at 31st March, 2001 Rs. Rs. SOURCES OF FUNDS Shareholders' Funds Share Capital Total APPLICATION OF FUNDS Investments Current Assets, Loans and Advances Current Assets Cash and Bank balances Loans and Advances ‘A’ ‘B’ ‘C’ ‘D’ Less : Current Liabilities and Provisions ‘E’ Current Liabilities Provisions 45,63 4,49,75 4,95,38 1,05 35,75 36,80 Net Current Assets Miscellaneous Expenditure (To the extent not written off or adjusted) Profit and Loss Account Total Notes on Accounts ‘G’ 8,87,76 8,87,76 2,63,00 4,58,58 23,26 1,42,92 8,87,76 6,95,47 89,01 7,84,48 1,31 29,25 30,56 8,87,76 8,87,76 — 7,53,92 33,28 1,00,56 8,87,76 As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants Rajesh D. Chaturvedi Partner Apurva R. Shah Partner Mumbai Dated : 3rd September, 2002 Ajeet Varma A. V. Betkekar Jotindra Thacker Ajit Dhariwal } } Directors Deputy Secretary Reliance Petroinvestments Limited 179 Reliance Petroinvesments ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Profit and Loss Account for the Year ended 31st March, 2002 Schedule 2001-2002 2000-2001 (Rs. in thousands) INCOME Interest (Tax Deducted at source Rs. 584 thousands, previous year Rs. 185 thousands) Dividend on current investments Brokerage (Tax Deducted at source Rs. 1 thousand, previous year Rs. NIL) Profit on sale of current investments Miscellaneous income EXPENDITURE Provision for doubtful advances Personnel expenses Administrative expenses Miscellaneous Expenditure written off ‘F’ Loss before tax Less : Provision for Taxation Loss after tax Add: Balance brought forward from last year Rs. 28,62 6,55 24 — 11 60,00 — 1,36 10,02 Rs. Rs. Rs. 8,19 — — 59,21 2,50 35,52 69,90 1,25,00 10 2,53 10,02 71,38 (35,86) 6,50 (42,36) (1,00,56) 1,37,65 (67,75) 28,00 (95,75) (4,81) Balance carried to Balance Sheet (1,42,92) (1,00,56) Basic and Diluted Earnings per share (Rupees) (0.48) (1.08) Notes on Accounts ‘G’ As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants Rajesh D. Chaturvedi Partner Apurva R. Shah Partner Mumbai Dated : 3rd September, 2002 Ajeet Varma A. V. Betkekar Jotindra Thacker Ajit Dhariwal } } Directors Deputy Secretary 180 Reliance Petroinvestments Limited Reliance Petroinvesments ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules Forming Part of the Balance Sheet SCHEDULE ‘A’ SHARE CAPITAL Authorised: 5,00,00,000 Equity Shares of Rs.10 each 5,00,00,000 Unclassified Shares of Rs.10 each Issued, Subscribed and Paid up: As at 31st March, 2002 Rs. 50,00,00 50,00,00 100,00,00 (Rs. in thousands) As at 31st March, 2001 Rs. 50,00,00 50,00,00 100,00,00 88,77,551 Equity Shares of Rs.10 each fully paid up 8,87,76 8,87,76 [Acquired by Reliance Industries Limited, (RIL) the Holding Company during the year. With effect from 17th April, 2002 RIL has ceased to be holding company] SCHEDULE ‘B’ INVESTMENTS Current Investments (Other than trade) Unquoted In Mutual Fund - fully paid up 24,43,343.141 Reliance Income Fund - (—) Montly Dividend Plan of Rs. 10 each SCHEDULE ‘C’ CASH AND BANK BALANCES Balance with banks: In Current Account with a Scheduled Bank In Fixed Deposit with a Scheduled Bank 8,87,76 8,87,76 As at 31st March, 2002 Rs. (Rs. in thousands) As at 31st March, 2001 Rs. 2,63,00 2,63,00 — — As at 31st March, 2002 (Rs. in thousands) As at 31st March, 2001 Rs. 5,63 40,00 45,63 Rs. 47 6,95,00 6,95,47 Reliance Petroinvestments Limited 181 Reliance Petroinvesments ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules Forming Part of the Balance Sheet SCHEDULE ‘D’ As at 31st March, 2002 LOANS AND ADVANCES Unsecured considered good Share application money Advances recoverable in cash or in kind or for value to be received Advance towards Debenture application money Advance payment of taxes Rs. — 3,30 4,12,00 34,45 Unsecured considered doubtful Share application money Less: provision for doubtful advances SCHEDULE ‘E’ Rs. 4,49,75 1,85,00 6,34,75 1,85,00 4,49,75 (Rs. in thousands) As at 31st March, 2001 Rs. Rs. 60,00 24,34 — 4,67 89,01 1,25,00 2,14,01 1,25,00 89,01 CURRENT LIABILITIES AND PROVISIONS Rs. Rs. Rs. Rs. As at 31st March, 2002 (Rs. in thousands) As at 31st March, 2001 Current Liabilities Sundry Creditors: Due to : Small Scale Industries Others Provisions Provision for taxation — 1,05 — 1,31 1,05 35,75 36,80 1,31 29,25 30,56 Schedules forming part of the Profit and Loss Account SCHEDULE ‘F’ ADMINISTRATIVE EXPENSES Auditors remuneration : Statutory audit fees Out of pocket expenses Tax Audit fees Professional fees Filing fees Miscellaneous expenses 2001-2002 Rs. Rs. 1,05 — Rs. 1,94 3 (Rs. in thousands) 2000-2001 Rs. 1,05 — 13 12 6 1,36 1,97 26 — 8 22 2,53 182 Reliance Petroinvestments Limited Reliance Petroinvesments ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts SCHEDULE 'G' 1. SIGNIFICANT ACCOUNTING POLICIES a) General The financial statements have been prepared in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956, as adopted consistently by the company. b) Preliminary expenses Preliminary expenses are amortised over a period of five years on pro-rata basis. c) Investments Current investments are carried at the lower of cost and quoted/fair value, computed category wise. 2. The Previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. 3. Consequent to fresh Certificate of Incorporation dated 19th December, 2001 received from the Registrar of Companies, Maharashtra, name of the Company has been changed from “Worldtel India Holdings Limited” to “Reliance Petroinvestments Limited”. 4. Earnings per share Basic, as well as diluted, earnings per equity share (Rs.) Numerator - profit/(loss) after tax (Rs. in thousands) Denominator - weighted average number of equity shares Nominal value per equity share (Rs.) 2001-2002 (0.48) (42,36) 88,77,551 10 2000-2001 (1.08) (95,75) 88,77,551 10 5. 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. Reliance Petroinvestments Limited 183 Reliance Petroinvesments ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts Schedule 'G' (contd.) 6. 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 3 9 State Code 1 1 Balance Sheet Date 3 1 - 0 3 - 0 2 2. Capital raised during the year: (Rs. in thousands) Public Issue Bonus Issue N I N I L L Rights Issue Private Placement N I L N I L 3. Position of mobilisation and deployment of funds: (Rs. in thousands) Total Liabilities Source of Funds: Paid-up Capital Secured Loans Share application money Application of Funds: Net Fixed Assets Net Current Assets Accumulated Losses 9 2 4 5 6 Total Assets 9 2 4 5 6 8 8 7 7 6 Reserves and Surplus Unsecured Loans N I N I L L N I L N I L N I L Investments 2 6 3 0 0 4 5 8 5 8 1 4 2 9 2 Miscellaneous Expenditure 2 3 2 6 4. Performance of Company: (Rs. in thousands) Turnover/Income 3 5 5 2 Total Expenditure 7 1 3 8 Profit/(Loss) before Tax Earnings per Share (Rupees) ( 3 5 8 ( 0 . 4 6 8 ) ) Profit/(Loss) after Tax ( 4 2 3 6 ) Dividend per Share (Rs) N I L 5. Generic names of principal products, services of the Company: Item Code Product Description N A N A As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants Rajesh D. Chaturvedi Partner Apurva R. Shah Partner Mumbai Dated : 3rd September, 2002 Ajeet Varma A. V. Betkekar Jotindra Thacker Ajit Dhariwal } } Directors Deputy Secretary 184 Reliance Petroinvestments Limited Reliance Petroinvesments ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Directors’ Report To the Members, Your Directors have pleasure in presenting the 4th Annual Report together with the Audited Statement of Accounts for the year ended 31st March, 2002. Operations During the period under review the Company has earned a profit of Rs. 41,091/-. Dividend Due to inadequacy of profits your Directors have not recomended any dividend on equity shares for the period under review. Change in Status The Company became a wholly owned subsidiary of Reliance Petroleum Limited (RPL) w.e.f. 28th December, 2001. The status of the Company has thus changed from Private Limited Company to Public Limited Company w.e.f. 14th January 2002. Pursuant to a Scheme of Amalgamation of Reliance Petroleum Limited (RPL) with Reliance Industries Limited (RIL), the investments in shares by RPL will vest on RIL. Upon the coming into effect of the said Scheme of Amalgamation, the Company will be construed a subsidiary of RIL. Directors’ Responsibility Statement Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956 with respect to Directors' Responsibility Statement, it is hereby confirmed that: (i) (ii) (iii) in the preparation of the accounts for the financial year ended 31st March, 2002, the applicable accounting standards have been followed; them consistently and made the Directors have selected such accounting policies and applied judgements and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for the year under review; the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and the Companies Act, 1956 the provisions of (iv) the Directors have prepared the accounts for the financial year ended 31st March, 2002 on a 'going concern' basis. for reappointment at Directors Shri L. V. Merchant retires by rotation and being eligible offers himself the ensuing Annual General Meeting. Shri P. Raghavendran was appointed as an additional director with effect from 28th December, 2001. He holds office as director upto the date of the ensuing Annual General Meeting. The Company has received notice under Section 257 of the Companies Act, 1956, proposing his appointment as director, subject to retirement by rotation. Auditors M/s. Chaturvedi & Shah and M/s. Rajendra & Co., Joint Auditors of the Company, hold office until the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment. The Auditors have, under Section 224(1-B) of the Companies Act, 1956 re- appointment. Accordingly, the said Auditors are proposed to be appointed as Joint Auditors of the Company at the ensuing Annual General Meeting. the certificate of their eligibility furnished for Fixed Deposits The Company has not accepted any fixed deposit during the year. Hence, no information is required to be appended to this report in terms of Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1988. 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 and outgo during the year. 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. Acknowledgement Your Directors place on record their immense appreciation for the assistance and cooperation from various Statutory Authorities. received Mumbai Dated : 18th June, 2002 For and on behalf of the Board L V Merchant P Raghavendran } Directors Reliance Strategic Investments Limited 185 Reliance Strategic Investments Limited.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Auditors’ Report b) c) d) e) f) To, The Members of Reliance Strategic Investments Limited. We have audited the attached Balance Sheet of Reliance Strategic Investments Limited as at 31st March, 2002 and the Profit and Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. the financial statements are We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 1. As required by the Manufacturing and Other Companies (Auditors' Report) Order, 1988, the Central Government of India 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. issued by 2. Further to our comments in the Annexure referred to in paragraph 1 above, we report that: a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of such books. The Balance Sheet and Profit and Loss Account referred to in this Report are in agreement with the books of account. In our opinion, the Balance Sheet and Profit and Loss the Account complies with mandatory accounting standards referred to in Section 211(3C) of the Companies Act, 1956. requirements of the In our opinion, and based on information and explanations given to us, none of the directors are disqualified as on 31st March, 2002 from being appointed as directors in terms of clause (g) of sub- section (1) of Section 274 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 in conformity with the accounting principles generally accepted in India : i) ii) in so far as it relates to the Balance Sheet of the state of affairs of the Company as at 31st March, 2002 and in so far as it relates to the Profit and Loss Account of the 'Profit' of the Company for the year ended on that date. For Chaturvedi & Shah Chartered Accountants Rajesh D. Chaturvedi Partner Mumbai Dated : 18th June, 2002 For Rajendra & Co. Chartered Accountants R.J. Shah Partner 186 Reliance Strategic Investments Limited Reliance Strategic Investments Limited.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 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 had no Fixed Assets during the year, clauses 4(A) (i) and (ii) of the said Order are not applicable. 2. Since the Company has not carried out any manufacturing and / or trading activity clauses (iii), (iv), (v), (vi), (xi), (xii), (xiv) and (xvi) of the clause A of paragraph 4 of the aforesaid Order are not applicable. 3. 4. 5. 6. 7. The Company has not taken any loans, secured or unsecured from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956, or from companies under the same management within the meaning of sub section (1B) of Section 370 of the Companies Act, 1956. loan, secured or The Company has not granted any 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. information and In our opinion and according explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business. the to information and In our opinion and according explanations given to us, the Company has not accepted any deposits from public. the to 8. the Company has an In our opinion 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, 2002 for a period of more than six months from the date they became payable. 11. In our opinion and according information and explanations given to us, no personal expenses of Directors have been charged to revenue account. the to 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. According to the information and explanations given to us, the provisions of any special statute applicable to Chit-Fund, Nidhi or Mutual Benefit Society are not applicable to the Company. 14. In our opinion, the Company has maintained proper records and made timely entries in respect of investments made by the Company . The Company's investments are held in its own name. For Chaturvedi & Shah Chartered Accountants Rajesh D. Chaturvedi Partner Mumbai Dated : 18th June, 2002 For Rajendra & Co. Chartered Accountants R.J. Shah Partner Reliance Strategic Investments Limited 187 Reliance Strategic Investments Limited.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Balance Sheet as at 31st March, 2002 As at Schedule 31st March, 2002 Rs. Rs. (Rs. in thousands) As at 31st March, 2001 Rs. Rs. SOURCES OF FUNDS Shareholders' Funds Share Capital Reserves and Surplus: Profit and Loss Account Total APPLICATION OF FUNDS Investments Current Assets, Loans and Advances Current Assets Cash and Bank Balances Loans and Advances ‘A’ ‘B’ ‘C’ Less : Current Liabilities and Provisions ‘D’ Current Liabilities Provisions 2,02,02 54 2,02,56 2,01,10 2,02,02 13 2,02,15 4,47,50 1,17 42 1,59 13 62 75 41,80 40 42,20 2,88,12 32 2,88,44 Net Current Assets Miscellaneous Expenditure (To the extent not written off or adjusted) 84 62 (2,46,24) 89 Total 2,02,56 2,02,15 Notes on Accounts ‘E’ As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants Rajesh D. Chaturvedi Partner R. J. Shah Partner L. V. Merchant M. D. Sudharsan P. Raghavendran N. Ravichandran } } Directors Deputy Secretary Mumbai Dated : 18th June, 2002 188 Reliance Strategic Investments Limited Reliance Strategic Investments Limited.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Profit and Loss Account for the Year ended 31st March, 2002 INCOME Profit on sale of Current Investments Brokerage (previous year Rs. 103/-) (Tax Deducted at source Rs. 3 thousand, previous year Rs. NIL) EXPENDITURE Filling fees Custodian fees General expenses Audit fees Miscellanceous Expenditure written off Profit/(Loss) before taxation Less : Provision for Taxation Profit/(Loss) after taxation Add: Balance brought forward from last year Balance carried to Balance Sheet Schedule 2001-2002 2000-2001 (Rs. in thousands) Rs. 6 — 2 — 1 13 27 Rs. 1,10 34 9 22 2 13 27 Rs. 1,44 73 71 30 41 13 54 Rs. 6 43 (37) — (37) 50 13 Basic and Diluted Earnings per share (Rupees) 0.02 (0.02) Notes on Accounts ‘E’ As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants Rajesh D. Chaturvedi Partner R. J. Shah Partner L. V. Merchant M. D. Sudharsan P. Raghavendran N. Ravichandran } } Directors Deputy Secretary Mumbai Dated : 18th June, 2002 Reliance Strategic Investments Limited 189 Reliance Strategic Investments Limited.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules Forming Part of the Balance Sheet SCHEDULE ‘A’ SHARE CAPITAL Authorised: 21,00,000 Equity Shares of Rs.10 each 4,00,000 Unclassified Shares of Rs.10 each Issued, Subscribed and Paid up: 20,20,200 Equity Shares of Rs.10 each fully paid up (held by Reliance Petroleum Limited, the Holding Company, which is under amalgamation with Reliance Industries Limited) SCHEDULE ‘B’ INVESTMENTS Current Investments (other than trade) Unquoted In Equity - fully paid up — Reliance Petroinvestments Limited of (43,50,000) Rs. 10 each In Units - fully paid up 12,34,064 Reliance Income Fund - (Growth Plan) units (92,034) of Rs. 10 each As at 31st March, 2002 Rs. (Rs. in thousands) As at 31st March, 2001 Rs. 2,10,00 40,00 2,50,00 2,02,02 2,10,00 40,00 2,50,00 2,02,02 2,02,02 2,02,02 As at 31st March, 2002 Rs. (Rs. in thousands) As at 31st March, 2001 Rs. — 2,01,10 2,01,10 4,35,00 12,50 4,47,50 190 Reliance Strategic Investments Limited Reliance Strategic Investments Limited.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules Forming Part of the Balance Sheet SCHEDULE ‘C’ CURRENT ASSETS, LOAN AND ADVANCES Rs. Rs. Rs. Rs. As at 31st March, 2002 (Rs. in thousands) As at 31st March, 2001 Current assets Cash and Bank Balances Cash on hand Bank Balance: Balance with Bank in Current Account with a Schedule Bank Loans and Advances Advances recoverable in cash or in kind or for value to be received Advance payment of taxes SCHEDULE ‘D’ 1 1,16 8 34 — 41,80 1,17 41,80 10 30 42 1,59 40 42,20 As at (Rs. in thousands) As at 31st March, 2002 31st March, 2001 CURRENT LIABILITIES AND PROVISIONS Rs. Rs. Rs. Rs. Current Liabilities Sundry Creditors: Due to: Small Scale Industries Others Other Liabilities: Advance against debenture application money — 13 — — 12 2,88,00 Provisions Provision for taxation 13 62 75 2,88,12 32 2,88,44 Reliance Strategic Investments Limited 191 Reliance Strategic Investments Limited.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts SCHEDULE 'E' 1. SIGNIFICANT ACCOUNTING POLICIES a) General The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956, as adopted consistently by the company. b) 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. c) Preliminary expenses are amortised over a period of five years on pro-rata basis. 2. Consequent to Certificate of change of name dated 14th January, 2002 issued by the Registrar of Companies, Maharashtra, the name of the company has changed from “Reliance Strategic Investments Private Limited” to “Reliance Strategic Investments Limited”. 3. The Previous year’s figures have been reworked, regrouped, rearranged and/or reclassified wherever necessary. 4. Earnings per share Basic, as well as diluted, earnings per equity share (Rs.) Numerator - profit/(loss) after tax (Rs. in thousands) Denominator - weighted average number of equity shares Nominal value per equity share (Rs.) 2001-2002 0.02 41 20,20,200 10 2000-2001 (0.02) (37) 20,20,200 10 5. 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. 192 Reliance Strategic Investments Limited Reliance Strategic Investments Limited.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts Schedule 'E' (contd..) 6. 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 0 9 1 8 State Code 1 1 Balance Sheet Date 3 1 - 0 3 - 0 2 2. Capital raised during the year: (Rs. in thousands) Public Issue Bonus Issue N I N I L L Rights Issue Private Placement N I L N I L 3. Position of mobilisation and deployment of funds: (Rs. in thousands) Total Liabilities Source of Funds: Paid-up Capital Secured Loans Application of Funds: Net Fixed Assets Net Current Assets Accumulated Losses 2 0 3 3 1 Total Assets 2 0 3 3 1 2 0 2 0 2 Reserves and Surplus N I L Unsecured Loans 5 4 N I L N I L Investments 2 0 1 1 0 8 4 N I L Miscellaneous Expenditure 4. Performance of Company: (Rs. in thousands) Turnover/Income Profit before Tax 1 4 4 Total Expenditure 7 1 Profit after Tax 6 2 7 3 4 1 Earnings per Share (Rupees) 0 . 0 2 Dividend per Share (Rs) N I L 5. Generic names of principal products, services of the Company: Item Code Product Description N A N A As per our Report of even date For and on behalf of the Board For Chaturvedi & Shah Chartered Accountants For Rajendra & Co. Chartered Accountants Rajesh D. Chaturvedi Partner R. J. Shah Partner L. V. Merchant M. D. Sudharsan P. Raghavendran N. Ravichandran } } Directors Deputy Secretary Mumbai Dated : 18th June, 2002 Reliance Strategic Investments Limited 193 Reliance Strategic Investments Limited.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Directors’ Report To the Members, Your Directors have pleasure in presenting the 2nd Annual Report together with the Audited Statement of Accounts for the year ended 31st March, 2002. Operations During the year the company has incurred a loss of Rs. 10,313/-. Your Directors have not recommended any dividend on equity shares for the year under review. Reliance Petroleum Limited is one of the shareholders of the company which is under amalgamation with Reliance Industries Limited (RIL). Pursuant to a scheme of amalgamation, RPL will merge with RIL. Upon the scheme of amalgamation becoming effective, more than half in nominal value of the Company’s equity capital will be held by RIL and consequently the Company will be a subsidiary of RIL. Issue of Equity Shares During the year, the company has increased its Authorised Capital to Rs. 7,50,000/- divided into 75,000 Equity Shares of Rs. 10/- each and has issued 49,800 equity shares of Rs. 10 each, thereby increasing its paid up share Capital up to Rs. 5,00,000/-. Directors’ Responsibility Statement Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, with respect to Directors’ Responsibility statement it is hereby confirmed that: (i) them consistently and made in the preparation of the accounts for the financial year ended 31st March, 2002, the applicable accounting standards have been followed. the Directors have selected such accounting policies and applied judgements and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the loss of the Company for the year under review; the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and the Companies Act, 1956 the provisions of (ii) (iii) (iv) the Directors have prepared the accounts for the financial year ended 31st March, 2002 on a ‘going concern’ basis. Auditors M/s. Pathak H D & Associates, Chartered Accountants, who have been appointed as the Auditors of the Company, retire at the ensuing Annual General Meeting. The Company has received a letter 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 are proposed to be appointed as Auditors of the Company at the ensuing Annual General Meeting. 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 in accordance with the provisions of Section Information 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 are not applicable for the year under review, and hence not furnished. Fixed Deposits The Company has not accepted any fixed deposit from the public. Hence, no information is required to be appended to this report. Acknowledgement Your Directors wish immense to place on appreciation for the assistance and cooperation received from various Statutory Authorities. record their Mumbai Dated : 9th August, 2002 For and on behalf of the Board Rohit C. Shah Mangal Kulkarni } Directors 194 Reliance LNG Private Limited Reliance LNG Private Ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Auditors’ Report b) c) d) e) f) To, The Members of Reliance LNG Private Limited. We have audited the attached Balance Sheet of Reliance LNG Private Limited as at 31st March, 2002 and the Profit and Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on there financial statements based on our audit. the financial statements are We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 1. As required by the Manufacturing and Other Companies (Auditors' Report) Order, 1988, the Central Government of India 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. issued by 2. Further to our comments in the Annexure referred to in paragraph 1 above, we report that: a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of such books. The Balance Sheet and Profit and Loss Account referred to in this Report are in agreement with the books of account. In our opinion, the Balance Sheet and Profit and Loss the Account complies with mandatory accounting standards referred to in Section 211(3C) of the Companies Act, 1956. requirements of the In our opinion, and based on information and explanations given to us, none of the directors are disqualified as on 31st March, 2002 from being appointed as directors in terms of clause (g) of sub- section (1) of Section 274 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 in conformity with the accounting principles generally accepted in India : i) ii) In so far as it relates to the Balance Sheet of the state of affairs of the Company as at 31st March, 2002 and In so far as it relates to the Profit and Loss Account of the 'Loss' of the Company for the year ended on that date. Mumbai Dated : 9th August, 2002 Lalit Mhalsekar Partner For Pathak H D & Associates Chartered Accountants Reliance LNG Private Ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) Reliance LNG Private Limited 195 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 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 had no Fixed Assets during the year, clauses 7. In our opinion and according to the information and 4(A) (i) and (ii) of the said Order are not applicable. 2. Since the Company has not carried out any manufacturing explanations given to us, the Company has not accepted any deposits from public. and/or trading activity, items (iii), (iv), (v), (vi), (xi), (xii), (xiv) 8. According to the information and explanation given to us and and (xvi) of the clause A of paragraph 4 of the aforesaid Order are not applicable. 3. The Company has not taken any loans, secured or unsecured from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956, or from companies under the same management within the meaning of sub section (1B) of Section 370 of the Companies Act, 1956. 4. loan, secured or The Company has not granted any unsecured to companies, firms, or other parties listed in the in our opinion, internal audit is not statutorily applicable. 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, 2002 for a period of more than six months from the date they became payable. 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 11. In our opinion and according information and explanations given to us, no personal expenses of Directors the to have been charged to revenue account. Companies Act, 1956. 5. The Company has not given any loans or advances in the nature of loans during the year. 6. information and In our opinion and according explanations given to us, there are adequate internal control the to procedures commensurate with the size of the Company and the nature of its business. 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. 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. For Pathak H D & Associates Chartered Accountants Mumbai Dated : 9th August, 2002 Lalit Mhalsekar Partner 196 Reliance LNG Private Limited Reliance LNG Private Ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Balance Sheet as at 31st March, 2002 As at Schedule 31st March, 2002 Rs. Rs. (Rs. in thousands) As at 31st March, 2001 Rs. Rs. SOURCES OF FUNDS Shareholders' Funds Share Capital Total APPLICATION OF FUNDS Investments Current Assets, Loans and Advances Current Assets Cash and Bank Balances ‘A’ ‘B’ ‘C’ Less : Current Liabilities and Provisions ‘D’ Current Liabilities Net Current Assets Miscellaneous Expenditure (To the extent not written off or adjusted) Profit and Loss account Total Notes on Accounts ‘E’ ‘F’ 3,89 3,89 13 13 5,00 5,00 83 3,76 22 19 5,00 9 9 21 21 2 2 — (12) 6 8 2 As per our Report of even date For Pathak H. D. & Associates Chartered Accountants Lalit Mhalsekar Partner Mumbai Dated : 9th August, 2002 For and on behalf of the Board Rohit Shah Mangal Kulkarni } Directors Reliance LNG Private Ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) Reliance LNG Private Limited 197 Profit and Loss Account for the Year ended 31st March, 2002 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedule For the year 01.04.2001 to 31.03.2002 Rs. 6 1 1 3 Rs. — 11 (11) (8) (19) (Rs. in thousands) For the period 24.07.2000 to 31.3.2001 Rs. Rs. 6 — 1 1 — 8 (8) — (8) INCOME EXPENDITURE Audit Fees Filing Fees (Previous year Rs. 200/-) General Expenses Miscellaneous expenses written off Loss for the year Add : Balance brought forward from last year Balance carried to Balance Sheet Basic and Diluted Earnings per share (Rupees) (0.59) (41.18) Notes on Accounts ‘F’ As per our Report of even date For Pathak H. D. & Associates Chartered Accountants Lalit Mhalsekar Partner Mumbai Dated : 9th August, 2002 198 For and on behalf of the Board Rohit Shah Mangal Kulkarni } Directors Reliance LNG Private Limited Reliance LNG Private Ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules Forming Part of the Balance Sheet SCHEDULE ‘A’ SHARE CAPITAL Authorised: 75,000 Equity Shares of Rs.10 each (5,000) — Unclassified Shares of Rs. 10 each (5,000) Issued, Subscribed and Paid up: 50,000 Equity Shares of Rs.10 each fully paid up (200) [22,500 shares held by Reliance Industries Limited (RIL) and 22,500 shares held by Reliance Petroleum Limited, which is under amalgamation with RIL] SCHEDULE ‘B’ INVESTMENTS Long Term Investments (Other Investments) Unquoted In Equity shares - fully paid up 1,400 Reliance Broadband Communications Pvt. Ltd. (—) of Rs. 10 each 1,400 Reliance Broadcom Pvt. Ltd. of Rs. 10 each (—) 1,300 Reliance Cyber Technology.com Pvt. Ltd. (—) of Rs. 10 each 1,400 Reliance Statellite Pvt. Ltd. of Rs. 10 each (—) 1,400 Reliance Last Mile Communications Pvt. Ltd. (—) of Rs. 10 each 1,400 Reliance Last Mile Network Pvt. Ltd. of Rs. 10 each (—) As at 31st March, 2002 Rs. (Rs. in thousands) As at 31st March, 2001 Rs. 7,50 — 7,50 5,00 5,00 50 50 1,00 2 2 As at 31st March, 2002 Rs. (Rs. in thousands) As at 31st March, 2001 Rs. 14 14 13 14 14 14 83 — — — — — — — Reliance LNG Private Ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) Reliance LNG Private Limited 199 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Schedules Forming Part of the Balance Sheet SCHEDULE ‘C’ CURRENT ASSETS, LOAN AND ADVANCES Current Assets Cash and Bank Balances Cash on hand Bank Balance: Balance with a Schedule Bank in a Current Account SCHEDULE ‘D’ As at 31st March, 2002 (Rs. in thousands) As at 31st March, 2001 Rs. — 3,89 3,89 Rs. 2 7 9 As at (Rs. in thousands) As at 31st March, 2002 31st March, 2001 CURRENT LIABILITIES AND PROVISIONS Rs. Rs. Rs. Rs. Current Liabilities Sundry Creditors: Due to: Small Scale Industries Others Other Liabilities: Advance towards debenture application money SCHEDULE ‘E’ MISCELLANEOUS EXPENDITURE Preliminary Expenses: Add : Addition during the year Less : Written off during the year — 13 — 6 13 — 13 6 15 21 As at (Rs. in thousands) As at 31st March, 2002 31st March, 2001 Rs. — 7 Rs. 6 19 Rs. 25 3 22 Rs. 7 1 6 200 Reliance LNG Private Limited Reliance LNG Private Ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts SCHEDULE 'F' 1. Significant Accounting Policies a) General The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956 as adopted consistently by the Company. b) 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. c) Preliminary expenses are amortised over a period of five years on pro-rata basis. 2. As no Manufacturing and/or Trading activities were carried out during the year, information required under para 3 and 4 of schedule VI to the Companies Act, 1956 are given to extent applicable. 3. The current financial year is for twelve months, whereas the previous year was for a period from 24-07-2000 to 31-03-2001. The current financial year's figures to that extent are not comparable. 4. The previous year's figures have been reworked,regrouped,rearranged and reclassified wherever necessary. 5. Earnings per share 2001-2002 2000-2001 Basic, as well as diluted, earnings per equity share (Rs.) Numerator - profit/(loss) after tax (Rs. in thousands) Denominator - weighted average number of equity shares Nominal value per equity share (Rs.) (0.59) (11) 17,550 10 (41.18) (8) 2,00 10 Reliance LNG Private Ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) Reliance LNG Private Limited 201 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Accounts Schedule 'F' (contd..) 6. 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 7 8 8 5 State Code 1 1 Balance Sheet Date 3 1 - 0 3 - 0 2 2. Capital raised during the year: (Rs. in thousands) Public Issue Bonus Issue N I N I L L Rights Issue Private Placement 3. Position of mobilisation and deployment of funds: (Rs. in thousands) Total Liabilities Source of Funds: Paid-up Capital Secured Loans Application of Funds: Net Fixed Assets Net Current Assets Accumulated Losses 4. Performance of Company: (Rs. in thousands) Turnover/Income Profit before Tax 5 1 3 Total Assets 5 0 0 Share Application Money N I L Unsecured Loans N I L Investments 3 7 6 1 9 Miscellaneous Expenditure N I L Total Expenditure N I L 4 9 8 5 1 3 N I L N I L 8 3 2 2 1 1 Earnings per Share (Rupees) ( 0 . 5 ( 1 1 9 ) ) Profit after Tax Dividend per Share (Rs) ( 1 1 ) N I L 5. Generic names of principal products, services of the Company: Item Code Product Description N A N A As per our Report of even date For Pathak H. D. & Associates Chartered Accountants Lalit Mhalsekar Partner Mumbai Dated : 9th August, 2002 For and on behalf of the Board Rohit Shah Mangal Kulkarni } Directors 202 Reliance LNG Private Limited Reliance LNG Private Ltd.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Auditors’ Report We have audited the financial statement of Reliance Infocom B.V., Amsterdam, for the year 2001. These financial statements are the responsibility of the company’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the Netherlands. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements give a true and fair view of the financial position of the company as at December 31, 2001 and of the result for the year then ended in accordance with accounting principles generally accepted in the Netherlands and comply with the financial reporting requirements included in Part 9 of Book 2 of the Netherlands Civil Code. Amsterdam March 29, 2002 Th.A. Verkade Registeraccountant Balance Sheet as at December 31, 2001 (before appropriation of results) Note 4 5 Financial Fixed Assets Investments Current Assets: Cash at banks Current Liabilities: Accrued expenses Capital tax Net Current Assets / (Liabilities) Net Assets Shareholders’ equity Issued and fully paid share capital Retained earnings Net result for the year See accompanying notes to the financial statements (in EURO) December 31, 2001 1,060,695 58,209 58,209 8,750 10,008 18,758 39,451 1,100,146 1,112,000 — -11,854 1,100,146 New-1 Reliance Infocom BV.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) Reliance Infocom B.V. 203 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Profit and Loss Account for the period July 19, 2000 through December 31, 2001 Note (in EURO) December 31, 2001 General and administrative expenses Management fees Accounting fees Audit fee Tax advisory fees Legal fees Bank charges Capital tax Other expenses Financial result Interest income - banks Foreign currency exchange result, net Result before provision for corporate tax Provision for corporate tax Net result for the year See accompanying notes to the financial statements -8,047 -2,440 -4,930 -2,000 -2,500 -337 -10,008 -2,925 -33,187 138 21,195 21,333 -11,854 — -11,854 Notes to Financial Statements 1. Group Affiliation and Principal Activites Only July 19, 2000 the Company was established as a wholly owned subsidiary of Brayden Investments N.V., the Netherlands Antilles. The Company is a limited liability company and has its statutory seat in Amsterdam. The first statutory year of the Company ends at December 31, 2001. Effective December 31, 2000 and prior to any activities having been conducted by the Company, Brayden Investments N. V. transferred all its share in the Company to Reliance Industries Limited. The transaction has been acknowledged in a notarial deed dated April 5, 2001. On December 28, 2000 the company changed its name to Reliance Infocom B.V. At the same date the Company issued 10,920 additional shares to Reliance Industries Ltd. Principal activity of the Company is the holdng and financing of group companies. Its parent company is stated to be Reliance Industries Limited, a corporation established in Mumbai, India. 2. Consolidation The company has the following direct participating interests: — Reliance Infocom Inc., U.S.A. 100% The company has decided to utilize the exemptions as provided by article 407 Book 2, title 9 of the Dutch Civil Code. Consequently no consolidation accounts will be prepared. The accompanying financial statements have been prepared in accordance with principles of accounting generally accepted in The Netherlands. 3. Significant Accounting Policies a. General Assets and liabilities are stated at face value unless indicated otherwise. b. Financial Fixed Assets The investments in subsidiaries are stated at historical acquistion cost and a provision is made for any premanent impairment in the value of the investment. 204 Reliance Infocom B.V. Reliance Infocom BV.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes to Financial Statements December 31, 2001 c. Foreign Currencies Assets and liabilities denominated in foreign currencies are translated into EURO at rates of exchange applicable at the balance sheet date. Transactions in foreign currencies are translated at the rates in effect at the dates of transactions. Resulting exchange gains or losses are accounted for in the profit and loss account. d. Recognition of Income and Expense Dividends from investments are recorded as income in the year they are declared. Royalties are recorded as income and expense in the year they are received or paid, respectively. Other income and expenses, including taxation, are recognised and reported on an accrual basis. 4. Investments December 31, 2001 100% held in Reliance Infocom Inc., U.S.A. (USD 900,000) 1,060,695 The investments are stated at historical cost price. According to management there is no permanent decrease in value of the group company, which started its operations during the current period. 5. Shareholders’ Equity The authorised share capital of the Company is EUR 5,560,000 dividend into 55,600 shares of EUR 100 each. At the balance sheet date a total of 11,120 shares were issued and fully paid. Movements in the shareholders’ equity accounts are as follows: Issued and fully paid share capital Retained earnings Net result for the year 6. Taxation July 19, 2000 Changes for the year December 31, 2001 20,000 — — 20,000 1,092,000 — -11,854 1,080,146 1,112,000 — -11,854 1,100,146 The corporate tax is based on the fiscal results, taking into account that certain income and expenses as reported in the profit and loss account are exempted from taxation. Corporate tax has been calculated on the basis of the applicable tax rate in The Netherlands. The income tax receivable relating to the tax loss carry forward has not been capitalised, as it is not expected that the company will generate taxable income in the future. 7. Directors and Employees The Company has no employees other than its director. The Company had one director during the year. No loans or advances have been given to or received from the director. The Company has no supervisory directors. New-1 Reliance Infocom BV.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) Reliance Infocom B.V. 205 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Auditors’ Report We have audited the financial statement of Reliance Infocom B.V., Amsterdam, for the year ended March 31, 2002. These financial statements are the responsibility of the company’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the Netherlands. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements give a true and fair view of the financial position of the company as at March 31, 2002 and of the result for the year then ended in accordance with accounting principles generally accepted in the Netherlands and comply with the financial reporting requirements included in Part 9 of Book 2 of the Netherlands Civil Code. Amsterdam April 19, 2002 Th.A. Verkade Registeraccountant Balance Sheet as at March 31, 2002 (before appropriation of results) Note 4 5 Financial Fixed Assets Investments Current Assets: Prepaid expenses Dividend receivable Cash at banks Current Liabilities: Accrued expenses Creditors Capital tax Net current assets ((liabilities) Net Assets Shareholders’ equity Issued and fully paid share capital Retained earnings Net result for the year See accompanying notes to the financial statements March 31, 2002 (in EURO) December 31, 2001 1,060,695 1,060,695 2,320 14,315 58,073 74,708 14,000 5,273 10,008 29,281 45,427 — — 58,209 58,209 8,750 — 10,008 18,758 39,451 1,106,122 1,100,146 1,112,000 -11,854 5,976 1,106,122 1,112,000 — -11,854 1,100,146 206 Reliance Infocom B.V. Reliance Infocom BV.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Profit and Loss Account for the period January 1, 2002 through March 31, 2002 Note March 31, 2002 (in EURO) December 31, 2001 General and administrative expenses Management fees Accounting fees Audit fee Tax advisory fees Legal fees Bank charges Capital tax Other expenses Financial result Dividend from group company Interest income - banks Foreign currency exchange result, net Result before provision for corporate tax Provision for corporate tax Net result For the year See accompanying notes to the financial statements -2,654 -750 -2,500 -2,000 — — — -435 -8,339 14,315 — — 14,315 5,976 — 5,976 -8,047 -2,440 -4,930 -2,000 -2,500 -337 -10,008 -2,925 -33,187 — 138 21,195 21,333 -11,854 — -11,854 Notes to Financial Statements March 31, 2002 1. Group Affiliation and Principal Activites Only July 19, 2000 the Company was established as a wholly owned subsidiary of Brayden Investments N.V., the Netherlands Antilles. The Company is a limited liability company and has its statutory seat in Amsterdam. The first statutory year of the Company ends at December 31, 2001. Effective December 31, 2000 and prior to any activities having been conducted by the Company, Brayden Investments N. V. transferred all its share in the Company to Reliance Industries Limited. The transaction has been acknowledged in a notarial deed dated April 5, 2001. On December 28, 2000 the company changed its name to Reliance Infocom B.V. At the same date the Company issued 10,920 additional shares to Reliance Industries Ltd. On March 26, 2002 the Company changed its articles of association to change the year-end from December 31 to March 31. Principal activity of the Company is the holdng and financing of group companies. Its parent company is stated to be Reliance Industries Limited, a corporation established in Mumbai, India. 2. Consolidation The company has the following direct participating interests: — Reliance Infocom Inc., U.S.A. 100% The company has decided to utilize the exemptions as provided by article 407 Book 2, title 9 of the Dutch Civil Code. Consequently no consolidation accounts will be prepared. The accompanying financial statements have been prepared in accordance with principles of accounting generally accepted in The Netherlands. 3. Significant Accounting Policies a. General Assets and liabilities are stated at face value unless indicated otherwise. b. Foreign Currencies Reliance Infocom B.V. 207 New Reliance Infocom BV.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes to Financial Statements March 31, 2002 Assets and liabilities denominated in foreign currencies are translated into EURO at rates of exchange applicable at the balance sheet date. Transactions in foreign currencies are translated at the rates in effect at the dates of transactions. Resulting exchange gains or losses are accounted for in the profit and loss account. c. Financial Fixed Assets The investments in subsidiaries are stated at historical acquistion cost and a provision is made for any premanent impairment in the value of the investment. d. Recognition of Income and Expense Dividends from investments are recorded as income in the year they are declared. Royalties are recorded as income and expense in the year they are received or paid, respectively. Other income and expenses, including taxation, are recognised and reported on an accrual basis. 4. Investments 100% held in Reliance Infocom Inc., U.S.A. (USD 900,000) March 31, 2002 December 31, 2001 1,060,695 1,060,695 The investments are stated at historical cost price. According to management there is no permanent decrease in value of the group company. 5. Shareholders’ Equity The authorised share capital of the Company is EUR 5,560,000 dividend into 55,600 shares of EUR 100 each. At the balance sheet date a total of 11,120 shares were issued and fully paid. Movements in the shareholders’ equity accounts are as follows: Issued and fully paid share capital Retained earnings Net result for the year Net result for the year 6. Taxation December 31, 2001 Changes for the year March 31, 2002 1,112,000 — -11,854 1,100,146 — -11,854 11,854 5,976 5,976 1,112,000 -11,854 — 5,976 1,106,122 The corporate tax is based on the fiscal results, taking into account that certain income and expenses as reported in the profit and loss account are exempted from taxation. Corporate tax has been calculated on the basis of the applicable tax rate in The Netherlands. The income tax receivable relating to the tax loss carry forward has not been capitalised, as it is not expected that the company will generate taxable income in the future. 7. Directors and Employees The Company has no employees other than its director. The Company had one director during the year. No loans or advances have been given to or received from the director. The Company has no supervisory directors. 208 Reliance Infocom B.V. Reliance Infocom BV.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Independent Auditors’ Report Board of Directors and Stockholder Reliance Infocom, Inc. New York, We have audited the accompanying balance sheet of Reliance Infocom, Inc. as of March 31, 2002, and the related statements of operations and retained earnings and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements 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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by financial management, as well as evaluating the overall statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements enumerated above present fairly, in all material respects, the financial position of Reliance Infocom, Inc. as of March 31, 2002 and the result of its operations and its cash flow for the year ended March 31, 2002 in conformity with accounting principles generally accepted in the United States of America. New York April 17, 2002 Eisner LLP Accountants and Advisors Balance Sheet as at March 31, 2002 As at March 31, 2002 (US $) As at March 31, 2001 (US $) ASSETS Current assets: Cash Accounts receivable Prepaid expenses and other current assets Total current assets Property and equipment, net Security deposits LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities: Accounts payable and accrued expenses Current taxes Deferred taxes Dividends payable (Note F) Stockholder's equity: Common stock - no par value, 1,000 shares authorised : 100 shares issued and outstanding Retained earnings Total stockholder's equity 306,661 629,735 30,726 967,122 16,310 11,074 994,506 66,163 4,506 2,446 12,500 85,615 900,000 8,891 908,891 994,506 514,951 375,000 9,260 899,211 14,540 8,699 922,450 23,724 — — — 23,724 900,000 (1,274) 898,726 922,450 Reliance Infocom inc.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:9)(cid:8)(cid:17)(cid:18) Reliance Infocom Inc. 209 Statement of Operations and Retained Earnings Year Ended March 31, 2002 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Revenue from consulting services (Note A) General and administrative expenses Operating net income Interest income Income before taxes on income Taxes on income: Current Deferred Net income (Deficit), beginning of year Less dividends Retained earnings, end of year 2001-02 (US $) 1,449,000 1,430,539 18,461 12,819 31,280 6,169 2,446 8,615 22,665 (1,274) 21,391 (12,500) 8,891 Statement of Cash Flows Year Ended March 31, 2002 Cash flows from operating activities: Net Income Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization Changes in: Accounts receivable Prepaid expenses and other current assets Accrued taxes payable - current Accrued taxes payable - deferred Accounts payable and accrued expenses Net cash used in operating activities Cash flows from investing activities: Purchases of property and equipment Security deposit Net cash used in investing activities Cash flows from financing activities: Proceeds from the issuance of common stock Net decrease in cash and cash equivalents Cash and cash equivalents - beginning of year Cash and cash equivalents - end of year Supplemental disclosure of cash flow information: Cash paid during the year for income taxes 2001-02 (US $) 22,665 3,431 (254,735) (21,466) 3,905 2,446 43,039 (200,715) (5,200) (2,375) (7,575) — (208,290) 514,951 306,661 2,263 210 Reliance Infocom Inc. Reliance Infocom inc.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:9)(cid:8)(cid:17)(cid:18) 2000-01 (US $) 375,000 389,054 (14,054) 12,780 (1,274) — — — (1,274) — (1,274) — (1,274) 2000-01 (US $) (1,274) 1,601 (375,000) (9,260) — — 23,724 (360,209) (16,141) (8,699) (24,840) 900,000 — — 514,951 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes to Financial Statements March 31, 2002 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reliance Infocom, Inc. (the “Company”) is a Delaware corporation incorporated on September 21, 2000 as a wholly owned subsidiary of Reliance Infocom B.V. (“B.V”). On October 17, 2000, 100 shares of common stock were issued to B.V. in exchange for $900,000. During the year ended March 31, 2002, the Company performed information technology consulting services, consulting services in the business strategy and biotechnology area, as well as services for business opportunities in the USA for PET-chips (petrochemical sector). Revenue from such services represents approximately 95% of the consulting revenue earned. Other revenues constitute reimbursements for expenditures incurred on the behalf of an affiliate. [1] Cash and cash equivalents: The Company considers all highly liquid accounts (money market funds) and investments with a maturity of three months or less when acquired as cash equivalents. [2] Property and equipment: Property and equipment are carried at cost. Depreciation is provided using the straight-line method over the useful lives of the assets. [3] Revenue recognition: Consulting revenue is recognized as services are performed. [4] Income taxes: The liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The deferred tax liability for March 31, 2002 relates principally to book and tax depreciation differences. [5] Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. NOTE B - PROPERTY AND EQUIPMENT Property and equipment are summarized as follows: Equipment Furniture and fixtures Less: accumulated depreciation and amortization March 31, 2002 (US $) Estimated Useful Life 5 years 7 years 18,840 2,501 21,341 5,031 16,310 NOTE C - LEASES The Company is obligated under two operating leases for office space. The lease in New York expires on January 31, 2003; the monthly rent is US $3,275. The lease in Maryland is a month-to-month lease; the monthly rent is US $2,624. Rent expense under the leases amounted to US $96,923 for the year ended March 31, 2002. NOTE D - EMPLOYMENT CONTRACTS Two employment agreements provide for annual base payments of US $432,000. Neither agreement provides for a specific term, however, the agreements provide for termination payments aggregating US $244,000 in the event the employees are terminated without cause. The agreements call for bonuses to be paid to the employees. Bonuses paid for the year ended March 31, 2002 aggregated US $ 104,000. NOTE E - PENSION PLAN A 401(k) salary deferral plan covers all eligible employees as defined in the plan. The Company elected not to make discretionary matching contributions. NOTE F - DIVIDENDS The Company declared a dividend of US $125 per share for shareholders on records as of March 29, 2002. Reliance Infocom inc.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:9)(cid:8)(cid:17)(cid:18) Reliance Infocom Inc. 211 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Independent Auditors’ Report To, The Members of Reliance Technologies, LLC We have audited the accompanying balance sheet of Reliance Technologies, LLC a Delaware company as of March 31, 2002, and the related statements of income, members’ equity and cash flows for the year ended March 31, 2002. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit. the financial statements are We conducted our audit in accordance with U.S. generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above presents fairly, in all material respects, the financial position of Reliance Technologies, LLC. For the year ended March 31, 2002, and the results of its operations and its cash flows for the year ended March 31, 2002 in conformity with U.S. generally accepted accounting principles. JAMES F. SEXTON & ASSOC., LTD. CERTIFIED PUBLIC ACCOUNTANTS April 22, 2002 Balance Sheet as at March 31, 2002 As at March 31, 2002 (US $) As at March 31, 2001 (US $) ASSETS CURRENT ASSETS: Cash Capital Subscription Receivable Total current assets OTHER ASSETS: Organizational Expense Amortization Allowance Investment - eVision, LLC Total Other assets TOTAL ASSETS LIABILITIES AND MEMBERS’ EQUITY CURRENT LIABILITIES Accrued Expenses Total Current Liabilities MEMBERS’ EQUITY: Members’ Contributed Capital Current Period Loss Total Members’ Equity TOTAL LIABILITIES AND MEMBERS’ EQUITY 212,008 26,111 238,119 3,000 (1,150) 7,400 9,250 247,369 — — 2,351,646 (2,104,277) 247,369 247,369 39,803 5,555 45,358 3,000 (550) 2,057,000 2,059,450 2,104,808 14,274 14,274 4,055,555 (1,965,021) 2,090,534 2,104,808 212 Reliance Technologies, LLC Reliance Technologies LLC.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:11)(cid:8)(cid:17)(cid:18) Statement of Income and Members’ Equity Year Ended March 31, 2002 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Revenue Operating Expenses Bank Service Charges Legal & Professional Amortization Expense License & Taxes Total Operating Expenses Operating Income (Loss) Other Income (Expenses) Interest income Equity in loss of eVision, LLC Total Other Income (Expenses) Net Income (Loss) Members’ Equity - Beginning Members’ Current Contributions Members’ Initial Capital Members’ Equity - Ending 2001-02 (US $) 420 54,202 600 — 55,222 (55,222) 545 (2,049,600) (2,049,055) (2,104,277) 2,090,534 261,112 — 247,369 2001-02 (US $) 150 28,212 550 100 29,012 (29,012) 6,991 (1,943,000) (1,936,009) (1,965,021) — — 4055,555 2,090,534 Statement of Cash Flows Year Ended March 31, 2002 CASH FLOWS FROM OPERATING ACTIVITIES: Net Loss Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Amortization Equity in loss of eVision, LLC (Increase) decrease in capital subscription receivable Increase (decrease) in accrued expenses 2001-02 (US $) 2000-01 (US $) (2,104,277) (1,965,021) 600 2,049,600 (20,556) (14,274) 550 1,943,000 (5,555) 14,274 Net Cash Provided by (Used in) Operating Activities: (88,907) (12,752) CASH FLOWS FROM INVESTING ACTIVITIES: Investment in eVision, LLC Organizational costs Proceeds from members’ capital Net Cash Provided by (Used in) Investing Activities: NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS Cash and cash equivalents Beginning of the year End of the year Amount Included in Operating Expenses Above Interest Expenses Income Taxes — — 261,112 261,112 172,205 39,803 212,008 — — (4,000,000) (3,000) 4,055,555 52,555 39,803 — 39,803 — — Reliance Technologies LLC.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:11)(cid:8)(cid:17)(cid:18) Reliance Technologies, LLC 213 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes on Financial Statements Note 1. Summary of Significant Accounting Policies Nature of Business The Company was formed in Delaware to make business investments and is not involved in any other business activity. Cash Equivalents Holdings in highly liquid investments with maturities of three months or less when purchased are considered to be cash equivalents. Investment in Affiliate The Company’s investments in 20% to 50% - owned affiliates are accounted for using the equity method. Amortization Organization costs are amortized using the straight-line method over five years. Income Tax Status The Company is treated for federal income tax purposes as a pass-through entity. Shares of income, deduction, etc are taken into account by the respective members for federal income tax purposes. Therefore, no provision, liability or benefit for federal income taxes has been included in the financial statements. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Concentration of Risk The Company has invested in the development stage company described below. The future value of the investment is uncertain. Note 2. Investment in Affiliate The Company’s investment in affiliate consists initially of approximately 34% interest in eVision LLC, a developer of visual recognition technology designed for media creators, media users and their customers. Condensed eVision LLC financial data for the year ended March 31, 2002 is summarized below: Current assets Fixed assets (Net) Other assets Current liabilities Members’ equity Revenue Operating expenses Other income - Interest Net Income (loss) 34,400 600,900 32,400 651,700 16,000 4,000 2,108,700 28,200 (2,076,500) The Company recorded the amount of US $2,049,600 as the loss for the year ended March 31, 2002 applicable to its interest under the equity method of accounting for the investment. Note 3. Membership Ownership The Company ownership consists of two members, Reliance Industries Limited (90% interest) and Ram Tech Holdings, Inc. (10% interest) whose membership contributions amounted to US $3,885,000 and US $431,666 respectively, which includes US $5,555 paid in May 2001 by Ram Tech Holdings and US $26,111 outstanding as of March 31, 2002. 214 Reliance Technologies, LLC Reliance Technologies LLC.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:11)(cid:8)(cid:17)(cid:18) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) CIRCULAR TO THE SHAREHOLDERS Dear Shareholder(s), As you are aware, according to the provisions of the Finance Act, 2002, the incidence of tax on dividend income would be on the recipient of dividend. The Act further provides for deduction of tax at source (TDS) on dividend. However, in case of a resident individual, no such deduction will be made if the amount of dividend does not exceed Rs. 2,500. Income Tax will not be deducted, where such dividend amount exceeds Rs. 2,500, if the Resident Shareholder furnishes declaration in Form 15G in duplicate to the Registrar and Transfer Agents of the Company on or before 25th October, 2002. In all cases where tax has been deducted at source, the Company is required to issue TDS certificates inter alia quoting the Permanent Account Number (PAN) of the Shareholders. Under Section 139A(5A) of the Income Tax Act, 1961 obligation is cast on the shareholder, receiving dividend after TDS, to intimate his/her Permanent Account Number (PAN)/General Index Register (GIR) Number to the Company. The relevant part of the said Section is reproduced below for your information: Section 139A(5A): "Every person receiving any sum or income or amount from which tax has been deducted under the provisions of Chapter XVIIB, shall intimate his permanent account number to the person responsible for deducting such tax under that Chaper." "Provided further that a person referred to in this sub section shall intimate the General Index Register Number till such time permanent account number is allotted to such person." In the above circumstances we request you to kindly furnish us your PAN/GIR No. to enable us to print the same on the TDS certificate to be issued to you. In case you are holding shares in dematerialised form you are requested to furnish the said details to your Depository Participant (DP). We request you to send the above information at the earliest. (cid:1) (cid:1) Form for intimating PAN Number 1. Name of the First/Sole Shareholder 2. DP ID 3. Client ID 4. Folio No. (in case of physical holding) 5. No. of Shares held 6. Address : 7. PAN No. / GIR No. 8. Signatures (As per specimen lodged with the Company) RIL Investor pages.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) Reliance Industries Limited 215 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Notes 216 Reliance Industries Limited RIL Investor pages.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) To, Reliance Industries Limited C/o Karvy Consultants Ltd. 46, Avenue 4, Street No.1 Banjara Hills Hyderabad 500 034 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Nomination Form [To be filled in by individual(s)] From Folio No. No. of Shares I am / we are holder(s) of Shares of the Company as mentioned above. I/We nominate the following person in whom all rights of transfer and/or amount payable in respect of Equity Shares 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 & Address * Occupation of Nominee Tick ((cid:2)) 1 5 Service Professional 2 6 Business Farmer 3 7 Nominee’s Address Telephone No. Email Address 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. Student 4 Household Others Pin Code Fax No. Std Code Name and address of equity shareholder {as appearing on the Certificate(s)} Signature & Date (as per specimen with company) Date.................................. Name and Address Signature & Date Thanking you, Yours faithfully, Sole/1st holder (address) 2nd holder 3rd holder 4th holder Witnesses (two) 1. 2.(cid:1) RIL Investor pages.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) Reliance Industries Limited 217 INSTRUCTIONS : (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 1. 2. 3. 4. 5. 6. 7. 8. 9. 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, part- nership firm, Karta of Hindu Undivided Family, holder of power of attorney cannot nominate. If the Shares are held jointly all joint holders shall sign (as per the specimen registered with the Company) the nomination form. A minor can be nominated by a holder of Shares 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 Shares in favour of a nominee shall be a valid discharge by a company against the legal heir(s). 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 registered holders (as per specimen lodged with the company) and (b) the nominee. Whenever the Shares in the given folio are entirely transferred or dematerialised, 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. The registration 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. 13. 14. The company will not entertain any claims other than those of a registered nominee, unless so directed by a Court. The intimation regarding nomination / nomination form shall be filed in duplicate with the Registrar and Transfer Agents of the Company who will return one copy thereof to the Shareholders. For shares held in dematerialised mode nomination is required to be filed with the Depository Participant in their prescribed form. FOR OFFICE USE ONLY Nomination Registration Number Date of Registration Checked by (Name and Signature) 218 Reliance Industries Limited RIL Investor pages.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) FORM NO. 15G [ See rule 29(c) ] Client Id: __________________ DP ID :____________________ DP Name:_________________ Folio No:_________________ Declaration under section 197A(1) of the Income Tax act, 1961, to be made by an individual claiming receipt of dividend without deduction of tax. I_________________________________________________________________ son / daughter / wife of ___________________________________resident of @ _____________________________________________ ___________________________________________________________________________ do hereby declare :- 1. 2. that I am a shareholder in Reliance Industries Limited, Maker Chamber No.4, 3rd floor, Nariman Point, Bombay-400021. that the shares in the said company, particulars of which are given below, stand in my name and are beneficially owned by me, and the dividends therefrom are not includable in the total income of any other person under section 60 and 64 of the Income Tax Act 1961: No of Shares Class of shares & Face Value of each share Total Face value of Shares Distinctive numbers of the shares Date(s) on which shares were acquired by the Declarant 3. that my present occupation is _____________________________. 4. That my estimated total income including the dividends from the shares referred to in paragraph 2 above, computed in accordance with the provision of income tax act 1961, for the previous year ending on 31.3.2003 relevant to the assessment year 2003-2004 will be nil. 5. * That I have not been assessed to income tax at any time in the past but I fall within the jurisdiction of the Chief Commissioner or Commissioner of Income -Tax……………….. OR That I was assessed to income tax for the assessment year—————by the (Assessing Office/Circle/ward/ District and the Permanent Account Number allotted to me is …………………….. 6. that I am resident in India within the meaning of section 6 of the Income tax Act 1961. (cid:1) Signature of the declarant Reliance Industries Limited 219 RIL Investor pages.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) V E R I F I C A T I O N I, _________________________________________________ do hereby declare that to the best of knowledge and belief what is stated above is correct, complete and is truly stated. Verified today, the ………………….day of …………………..2002 Place :- —————————————— Notes: 1. @ Give complete address. 2. The declaration should be furnished in duplicate. 3. *Delete whichever is not applicable. Signature of the declarant 4. Before signing the verification, the declarant should satisfy himself that the information furnished in the declaration is true correct and complete in all respects. Any person making a false statement in the declaration shall be liable to prosecution under section 277 of the Income -tax Act 1961 and on conviction punishable. (i) (ii) In a case where tax sought to be evaded exceeds one lakh rupees with rigorous imprisonment which shall not be less than six months but which may extend to seven years and with fine; In any other case, with rigorous imprisonment which shall not be less than three months but which may extend to three years and with fine. FOR USE BY THE PERSON TO WHOM THE DECLARATION IS FURNISHED 1. NAME & ADDRESS OF THE COMPANY Reliance Industries Limited Registered Office: 3rd floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021. 2. DATE ON WHICHTHE DECLATION WAS FURNISHED BY THE DECLARANT 3. DATE OF DECLARATION,DISTRIBUTION OR PAYMENT OF DIVIDENDS 4. PERIOD IN RESPECT OF WHICH DIVIDEND HAS BEEN DECLARED 5. AMOUNT OF DIVIDEND PAID FORWARDED TO THE CHIEF COMMISSIONER OR COMMISSIONER OF INCOME TAX PLACE : DATE : SIGNATURE OF THE PRINCIPAL OFFICER OF THE COMPANY 220 Reliance Industries Limited RIL Investor pages.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) FORM NO. 15G [ See rule 29(c) ] Client Id: __________________ DP ID :____________________ DP Name:_________________ Folio No:_________________ Declaration under section 197A(1) of the Income Tax act, 1961, to be made by an individual claiming receipt of dividend without deduction of tax. I_________________________________________________________________ son / daughter / wife of ___________________________________resident of @ _____________________________________________ ___________________________________________________________________________ do hereby declare :- 1. 2. that I am a shareholder in Reliance Industries Limited, Maker Chamber No.4, 3rd floor, Nariman Point, Bombay-400021. that the shares in the said company, particulars of which are given below, stand in my name and are beneficially owned by me, and the dividends therefrom are not includable in the total income of any other person under section 60 and 64 of the Income Tax Act 1961: No of Shares Class of shares & Face Value of each share Total Face value of Shares Distinctive numbers of the shares Date(s) on which shares were acquired by the Declarant 3. that my present occupation is _____________________________. 4. That my estimated total income including the dividends from the shares referred to in paragraph 2 above, computed in accordance with the provision of income tax act 1961, for the previous year ending on 31.3.2003 relevant to the assessment year 2003-2004 will be nil. 5. * That I have not been assessed to income tax at any time in the past but I fall within the jurisdiction of the Chief Commissioner or Commissioner of Income -Tax……………….. OR That I was assessed to income tax for the assessment year—————by the (Assessing Office/Circle/ward/ District and the Permanent Account Number allotted to me is …………………….. 6. that I am resident in India within the meaning of section 6 of the Income tax Act 1961. (cid:1) Signature of the declarant Reliance Industries Limited 221 RIL Investor pages.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) V E R I F I C A T I O N I, _________________________________________________ do hereby declare that to the best of knowledge and belief what is stated above is correct, complete and is truly stated. Verified today, the ………………….day of …………………..2002 Place :- —————————————— Notes: 1. @ Give complete address. 2. The declaration should be furnished in duplicate. 3. *Delete whichever is not applicable. Signature of the declarant 4. Before signing the verification, the declarant should satisfy himself that the information furnished in the declaration is true correct and complete in all respects. Any person making a false statement in the declaration shall be liable to prosecution under section 277 of the Income -tax Act 1961 and on conviction punishable. (i) (ii) In a case where tax sought to be evaded exceeds one lakh rupees with rigorous imprisonment which shall not be less than six months but which may extend to seven years and with fine; In any other case, with rigorous imprisonment which shall not be less than three months but which may extend to three years and with fine. FOR USE BY THE PERSON TO WHOM THE DECLARATION IS FURNISHED 1. NAME & ADDRESS OF THE COMPANY Reliance Industries Limited Registered Office: 3rd floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021. 2. DATE ON WHICHTHE DECLATION WAS FURNISHED BY THE DECLARANT 3. DATE OF DECLARATION,DISTRIBUTION OR PAYMENT OF DIVIDENDS 4. PERIOD IN RESPECT OF WHICH DIVIDEND HAS BEEN DECLARED 5. AMOUNT OF DIVIDEND PAID FORWARDED TO THE CHIEF COMMISSIONER OR COMMISSIONER OF INCOME TAX PLACE : DATE : SIGNATURE OF THE PRINCIPAL OFFICER OF THE COMPANY 222 Reliance Industries Limited RIL Investor pages.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) 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 Attendance Slip at the Venue of the meeting 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 28TH ANNUAL GENERAL MEETING of the Company held on Thursday, the 31st October, 2002 at 11.00 a.m. at Birla Matushri Sabhagarh, 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 of of or failing him of as my/our proxy to vote for me/us and on my/our behalf at the 28th Annual General Meeting to be held on Thursday, the 31st October, 2002 at 11.00 a.m. or at any adjournment thereof. Signed this day of 2002. * Applicable for investors holding shares in electronic form. Affix a 30 paise Revenue Stamp Note: (1) 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. (2) Members holding shares under more than one folio may use photocopy of this Proxy Form for other folios. The Company shall provide additional forms on request. (cid:1) Reliance Industries Limited 223 RIL Investor pages.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) Book Post To, If undelivered please return to: Karvy Consultants Limited 46, Avenue 4, Street No. 1 Hyderabad 500 034 India. Tel. Nos.: 91-40-3320666/3320711/3323037 Fax No.: 91-40-3323058 E-mail: rilinvestor@karvy.com 224 Reliance Industries Limited RIL Investor pages.p65 (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:12)(cid:11)(cid:8)(cid:13)(cid:8)(cid:14)(cid:15)(cid:16)(cid:17)(cid:8)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:7)(cid:10)(cid:8)(cid:11)(cid:12) (cid:1)(cid:1)(cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:2)(cid:6)(cid:7)(cid:8) 

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