Reliance Industries Limited Annual Report 2008

FY2008 Annual Report · Reliance Industries Limited

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Touching lives.
Transforming India.

Small steps lead to giant leaps.
You start at the base and climb the peak.
You start by TOUCHING LIVES around you.
And reach out to the wider community and beyond.
You begin with dreams in your eyes.
And move on to share them with others.
You derive inspiration from the visions of prosperity.
And share it with fellow-citizens.
You nurture the finest young minds with commitment to excellence.
And unleash their positive energy with the magic of enterprise.

With all this, you create history by TRANSFORMING INDIA.

These are the unforgettable lessons from the life of our Founder Chairman
Shri Dhirubhai H. Ambani.

Today, our Chairman Shri Mukesh D. Ambani is taking his legacy forward.

Under his able leadership Reliance is expanding to new horizons.

From refineries to oil and gas exploration, chemicals and textiles to retail,
Special Economic Zones to overseas ventures.

The world is waking up to a new resurgent Reliance.

It showcases the arrival of a new global India.

We soar in the sky, with our feet firmly on the ground.

With every Reliance face lit with confidence and optimism.

Letter to Shareholders

Dear Shareowners,

I have great pleasure in sharing with you the
highlights of another year of great achievements.
We set new records for turnover, net profits and
dividend payout.

Reliance achieved several milestones during the
year. We became India's first company in the
private sector to surpass cash profit of Rs.25,000
crores and net profit of Rs.15,000 crores (excluding
exceptional income). We increased our dividend
payout to 130% amounting to Rs.1631 crores,
a new record for us as well as for private sector
in India.

In our upstream business, we had nine discoveries
in the various explorations blocks in India. We also
added to our international footprint by signing
production sharing contracts in several countries.

We also made very creditable progress in the
implementation of the KGD6 project. This is
one of the largest and most complex deepwater
gas projects in the world. As we bring this
field to commercial production it will be a proud
day for Reliance and an important day in India's
hydrocarbon history.

Energy prices, both oil and gas, scaled new heights
globally this year. The development of new
hydrocarbon resources is now more challenging
and expensive than ever before. Reliance has
successfully taken up this challenge in building a
world class organization and mobilizing resources
to develop its upstream portfolio.

Our Jamnagar refinery clearly demonstrated
its best-in-class operations with another year of
high capacity utilization and record margins.
The flexibility, scale and complexity of the refinery
were manifest in its operating performance far
exceeding the regional benchmarks. We were also
able to capture the 'Clean and Green' premium
from supplying low sulphur petroleum products to
discerning markets worldwide.

and started shipping products to the East African
market. GAPCO owns and operates large storage
terminalling facilities and a retail distribution
network including 250 retail outlets in several
countries.

Reliance Petroleum Limited (RPL), a subsidiary of
our Company has completed 90% progress in
building a new refinery. This will be an even more
complex and flexible refinery than the existing
refinery. Based on the progress so far, we expect to
complete the new refinery ahead of schedule.

Both Reliance and RPL Shareholders have gained
from the value creation during the project's
implementation.

The Indian economy grew at nearly 9% this year.
Our Polyester and Polymer businesses also
exhibited impressive growth.

the

In Polyester, we commissioned
largest
expansion in the world last year and consolidated
our market position both in India and globally. In
addition, we entered into agreements to acquire
the assets of Hualon Malaysia, which will add
another 5 lakh tonnes of globally competitive
capacity. Reliance will now account for nearly 7%
of global Polyester production this year.

Our polymers business also benefited from a 15%
growth in demand in India. We have expanded
customer reach, introduced new applications and
increased market share to 55% in our polymer
business.

Reliance Retail Ltd. (RRL) continued its roll out of
stores during the year across various verticals and
formats. With 590 stores in 57 cities, spanning 13
states, and over 3.5 million square feet of trading
space, I am confident that our newest business will
scale the same heights as all our other businesses
have. Additionally, I believe that with the stated
aim of generating 1 million jobs in retail, this is a
truly transformational venture whose success will
further our national priorities.

During the year we took over the operations of
Gulf Africa Petroleum Corporation (GAPCO)

Last year, at our Annual General Meeting
I had talked about infusing a new spirit of

“The development of new

hydrocarbon resources

is now more challenging

and expensive than ever before.

Reliance has successfully

taken up this challenge

in building a world class

organization and mobilizing

resources to develop

its upstream portfolio.”

innovativeness in the company. Innovation is truly
the new watchword for companies that want to
survive beyond and into the next century. Our
recent measures including that of setting up an
Innovation Council comprising some of the best
minds, has borne fruit. We were recently ranked
19th in the list of the “World's 25 Most Innovative
Companies” compiled by Business Week in
collaboration with the Boston Consulting Group.

Our pride in our people and performance was
endorsed by influential global bodies. Reliance's
Hazira manufacturing division won the “Deming
Quality Control Award” for the Operations
Business Unit (2007), making it the world's first
petrochemical company to win this award. Our
Jamnagar refinery was adjudged the winner of
“Golden Peacock National Training Award 2007”
while the Hazira manufacturing division won the
“Golden Peacock Innovation Award 2007”.

India is globalizing rapidly and is today a force to
reckon with in the marketplace. India's growth is
creating wealth and jobs across the world. We are
an integral part of this evolution and have the
responsibility to accelerate India's growth by
reinvesting our cash flow in our businesses.

I am confident that Reliance will firmly establish
itself as one of the world's most successful and
admired companies in the years to come.

I would like to express my gratitude to our
Board of Directors for their unstinting support
and guidance. I am also grateful to all our
stakeholders – our customers, suppliers, bankers,
employees and shareholders, who have reposed
their trust in us and given us their constant
support.

With best wishes,
Sincerely,

Mukesh D Ambani
Chairman & Managing Director

April 21, 2008

TOUCHING
LIVES
INDIA

TRANSFORMING

Financial Highlights

Turnover
PBDIT
Cash Profit
Net Profit
Net Profit (excl. exceptional income)
Net Profit 5 years CAGR
Total Assets

Rs. 139,269 crore ($ 34,713 million)
Rs. 24,201 crore ($ 6,032 million)
Rs. 25,205 crore ($ 6,282 million)
Rs. 19,458 crore ($ 4,850 million)
Rs. 15,261 crore ($ 3,804 million)
30%

Rs. 149,792 crore ($ 37,336 million)

Significant contribution to India's economic growth
• Revenues equivalent to about 3% of India's GDP
• 13.4% of India's total exports
• 4.9% of the Government of India's indirect tax revenues
• 6.6% of the total market capitalisation in India
• Weightage of 16.5% in the BSE Sensex
• Weightage of 12.5% in the Nifty Index

Growing importance across the globe
• Largest producer of Polyester fibre and yarn
• 4th largest producer of Paraxylene (PX) and Purified Terephthalic Acid (PTA)
• 6th largest producer of Mono Ethylene Glycol (MEG)
• 7th largest producer of Polypropylene (PP)

Featured above is the Board of Directors of Reliance Industries Limited.

Standing from left to right:
Dr. Dharam Vir Kapur, Shri Ramniklal H. Ambani, Shri Mansingh L. Bhakta, Shri Mukesh D. Ambani,

Dr. Raghunath Anant Mashelkar, Prof. Dipak C. Jain, Shri Nikhil R. Meswani,

Shri Yogendra P. Trivedi, Shri S. Venkitaramanan, Shri Mahesh P. Modi, Shri Hital R. Meswani,

Shri Hardev Singh Kohli and Prof. Ashok Misra.

RELIANCE INDUSTRIES LIMITED 1

Contents

Company Information

Board of Directors

Mukesh D. Ambani
Chairman & Managing Director

Nikhil R. Meswani
Executive Director

Hital R. Meswani
Executive Director

Hardev Singh Kohli
Executive Director

Ramniklal H. Ambani

Mansingh L. Bhakta

Yogendra P. Trivedi

Dr. Dharam Vir Kapur

Mahesh P. Modi

S. Venkitaramanan

Prof. Ashok Misra

Prof. Dipak C. Jain

Dr. Raghunath A. Mashelkar

Company Secretary
Vinod M. Ambani

Board Committees:

Audit Committee
Yogendra P. Trivedi (Chairman)
S.Venkitaramanan (Vice Chairman)
Mahesh P. Modi

Corporate Governance and
Stakeholders’ Interface
Committee
Yogendra P. Trivedi (Chairman)
Mahesh P. Modi
Dr. Dharam Vir Kapur

Employees Stock
Compensation Committee
Yogendra P. Trivedi (Chairman)
Mukesh D. Ambani
Mahesh P. Modi
Prof. Dipak C. Jain

Finance Committee
Mukesh D. Ambani (Chairman)
Nikhil R. Meswani
Hital R. Meswani

Health, Safety &
Environment Committee
Hital R. Meswani (Chairman)
Dr. Dharam Vir Kapur
Hardev Singh Kohli

Remuneration Committee
Mansingh L. Bhakta (Chairman)
Yogendra P. Trivedi
S. Venkitaramanan
Dr. Dharam Vir Kapur

Shareholders’/Investors’
Grievance Committee
Mansingh L. Bhakta (Chairman)
Yogendra P. Trivedi
Mukesh D. Ambani
Nikhil R. Meswani
Hital R. Meswani

Solicitors & Advocates
Kanga & Co.

Auditors
Chaturvedi & Shah
Deloittee, Haskins & Sells
Rajendra & Co.

Bankers
ABN AMRO Bank
Allahabad Bank
Andhra Bank
Bank of America
Bank of Baroda
Bank of India
Bank of Maharashtra
Calyon Bank
Canara Bank
Central Bank of India
Citi Bank N.A.
Corporation Bank
Deutsche Bank
HDFC Bank Limited
Hong Kong and Shanghai
Banking Corporation Limited
ICICI Bank Limited
IDBI Bank Limited
Indian Bank
Indian Overseas Bank
Oriental Bank of Commerce
Punjab National Bank
Standard Chartered Bank
State Bank of Hyderabad
State Bank of India
State Bank of Patiala

34th Annual General Meeting on Thursday, June 12, 2008 at 11.00 a.m. at
Birla Matushri Sabhagar, 19, Marine Lines, Mumbai 400 020.

RELIANCE INDUSTRIES LIMITED 7

State Bank of Saurashtra
Syndicate Bank
UCO Bank
Union Bank of India
Vijaya Bank

Registered Office
3rd Floor, Maker Chambers IV
222, Nariman Point
Mumbai 400 021, India
Tel: +91 22 2278 5000
Fax: +91 22 2278 5111
e-mail: investor_relations@ril.com
Website: www.ril.com

Major Manufacturing
Divisions

Dahej
P. O. Dahej, Bharuch - 392 130,
Gujarat, India.

Hazira
Village Mora, Bhatha P.O.,
Surat-Hazira Road,
Surat 394 510, Gujarat, India.

Jamnagar
Village Meghpar / Padana,
Taluk Lalpur,
Dist. Jamnagar 361 280
Gujarat, India.

Nagothane
P. O. Petrochemicals Township,
Nagothane,
Raigad - 402 125, Maharashtra, India.

Naroda
103/106, Naroda Industrial Estate,
Naroda, Ahmedabad 382 320
Gujarat, India.

Patalganga
B-4, Industrial Area, Patalganga,
Off Bombay-Pune Road,
Near Panvel, Dist. Raigad 410 207,
Maharashtra, India.

Vadodara
P. O. Petrochemicals,
Vadodara - 391 346, Gujarat, India.

Registrars & Transfer Agents

Karvy Computershare Private
Limited
46, Avenue 4, Street No.1,
Banjara Hills,
Hyderabad 500 034, India.
Tel: +91 40 2332 0666, 2332 0711
2332 3031, 2332 3037
Fax: +91 40 2332 3058
e-mail: rilinvestor@karvy.com
Website: www.karvy.com

Touching lives. Transforming India.

Consistent growth over ten years

Turnover (Rs. crore)

Profit After Tax (Rs. crore)

Net Worth (Rs. crore)

Market Capitalisation (Rs. crore)

Earnings Per Share (Rs.)

Book Value Per Share (Rs.)

RELIANCE INDUSTRIES LIMITED 9

Financial Highlights

2007-08

06-07

05-06

04-05

03-04

02-03

01-02

00-01

99-00

Rs. in crore
98-99

$ Mn

Turn over

Total Income

Earnings Before Depreciation,
Interest and Tax (EBDIT)

Depreciation

Profit After Tax

Equity Dividend %

Dividend Payout

Equity Share Capital

Equity Share Suspense

34,713 139,269 118,354

89,124 73,164 56,247

50,096 45,404

23,024 15,847

10,624

36,116# 144,898 # 118,832

89,807 74,614

57,385

51,097 46,186

23,407 16,534

11,232

7,212 # 28,935 #

20,525

14,982 14,261

10,983

9,366

8,658

5,562

4,746

3,318

1,208

4,847

4,815

3,401

3,724

3,247

2,837

2,816

1,565

1,278

855

4,850 # 19,458 #

11,943

9,069

7,572

5,160

4,104

3,243

2,646

2,403

1,704

407

362

130

110

100

7 5

1,631

1,440

1,393

1,045

52.5

733

5 0

698

47.5

663

42.5

448

4 0

385

1,454

1,393

1,396

1,054

1,053

6 0

342

37.5

350

933

Equity Share Warrants

419

1,682

Reserves and Surplus

19,520

78,313

62,514

48,411 39,010

33,057

28,931 26,416

13,712 12,636

11,183

Net Worth

20,301

81,449

63,967

49,804 40,403

34,453

30,327 27,812

14,765 13,983

12,369

Gross Fixed Assets

31,714 127,235 107,061

91,928 59,955

56,860

52,547 48,261

25,868 24,662

22,088

Net Fixed Assets

21,159

84,889

71,189

62,675 35,082

35,146

34,086 33,184

14,027 15,448

15,396

Total Assets

37,336 149,792 117,353

93,095 80,586

71,157

63,737 56,485

29,875 29,369

28,156

Market Capitalisation

82,049 329,179 198,905 110,958 76,079

75,132

38,603 41,989

41,191 33,346

12,176

Number of Employees

25,487

24,696

12,540 12,113

11,358

12,915 12,864

15,083 15,912

16,640

Contribution to
National Exchequer

3,414

13,696

15,344

15,950 13,972

12,903

13,210 10,470

4,277

3,719

2,893

Key Indicators

2 0 0 7 - 0 8

06-07

05-06

04-05

03-04

02-03

01-02

00-01

99-00

98-99

Earnings Per Share - Rs.

3.34 #

1 3 3 . 9 #

82.2

65.1

54.2

36.8

29.3

23.4

25.1

22.4

18.0

Turnover Per Share - Rs.

23.88

958.1

814.2

639.6

525.0

402.8

358.8

325.2

218.5

150.4

113.8

Book Value Per Share - Rs.

13.97

560.3

440.0

357.4

289.9

246.7

217.2

199.2

140.1

129.9

129.8

Debt : Equity Ratio

0 . 4 5 : 1

0.44:1

0.46:1

0.56:1

0.60:1

0.64:1

0.72:1 0.82:1

0.86:1

EBDIT / Gross Turnover % 20.8 #

20.8 #

Net Profit Margin %

14.0 #

17.3

10.1

16.8

10.2

19.5

10.3

19.5

18.7

19.1

9 . 2

8 . 2

7 . 1

26.8

12.8

30.6

15.5

RONW %*

ROCE %*

28.8#

28. 8 #

23.5

22.7

21.9

17.0

14.8

20.3 #

20.5

21.3

14.0

13.2

16.1

15.3

20.0

21.8

20.4

20.0

31.2

16.0

19.0

18.3

In this Annual Report $ denotes US$

1US$ = Rs. 40.12 (Exchange rate as on 31.03.2008)

*Adjusted for CWIP and revaluation

# Including exceptional income of Rs. 4,733 crore ($ 1,180 Mn)

Touching lives. Transforming India.

Notice

Notice is hereby given that the Thirty-fourth Annual General
Meeting of the Members of Reliance Industries Limited will be
held on Thursday, June 12, 2008 at 11.00 a.m., at Birla Matushri
Sabhagar, 19, New Marine Lines, Mumbai 400 020, to transact
the following businesses :

Ordinary Business :

1. To consider and adopt the audited Balance Sheet as at March
31, 2008, the 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 a dividend on equity shares.

3. To appoint Directors in place of those retiring by rotation.

4. To appoint Auditors and to fix their remuneration and in
this regard to consider and if thought fit, to pass, with or
without modification(s), the following resolution as an
Ordinary Resolution :

“RESOLVED THAT M/s. Chaturvedi & Shah, Chartered
Accountants, M/s. Deloitte Haskins and Sells, Chartered
Accountants, and M/s. Rajendra & Co., Chartered
Accountants, be and are hereby appointed as Auditors of
the Company, to hold office from the conclusion of this
Annual General Meeting until the conclusion of the next
Annual General Meeting of the Company on such
remuneration as shall be fixed by the Board of Directors.”

Special Business :

5. To re-appoint Shri Mukesh D. Ambani as Managing Director
and in this regard to consider and if thought fit, to pass,
with or without modification(s), the following resolution
as an Ordinary Resolution :

“RESOLVED THAT in accordance with the provisions of
Sections 198, 269, 309 and 317 read with Schedule XIII and
all other applicable provisions, if any, of the Companies
Act, 1956 or any statutory modification(s) or re-enactment
thereof, approval of the Company be and is hereby accorded
to the re-appointment of Shri Mukesh D. Ambani, as
Managing Director of the Company, for a period of 5 (five)
years with effect from April 19, 2009, on the terms and
conditions including remuneration as set out in the
Explanatory Statement annexed to the Notice convening
this Meeting, with liberty to the Board of Directors
(hereinafter referred to as “the Board” which term shall be
deemed to include any Committee of the Board constituted
to exercise its powers, including the powers conferred by
this Resolution) to alter and vary the terms and conditions
and / or remuneration, subject to the same not exceeding the
limits specified under Schedule XIII to the Companies Act,
1956 or any statutory modification(s) or re-enactment
thereof.

RESOLVED FURTHER THAT the Board be and is hereby
authorised to take all such steps as may be necessary, proper
or expedient to give effect to this Resolution.”

6. To re-appoint Shri Nikhil R. Meswani as a Whole-time
Director designated as Executive Director and in this regard
to consider and if thought fit, to pass, with or without
modification(s), the following resolution as an Ordinary
Resolution:

“RESOLVED THAT in accordance with the provisions of
Sections 198, 269, 309 and 317 read with Schedule XIII and
all other applicable provisions, if any, of the Companies
Act, 1956 or any statutory modification(s) or re-enactment
thereof, approval of the Company be and is hereby accorded
to the re-appointment of Shri Nikhil R. Meswani, as a
Whole-time Director, designated as Executive Director of
the Company, for a period of 5 (five) years with effect from
July 1, 2008, on the terms and conditions including
remuneration as set out in the Explanatory Statement
annexed to the Notice convening this Meeting, with liberty
to the Board of Directors (hereinafter referred to as “the
Board” which term shall be deemed to include any Committee
of the Board constituted to exercise its powers, including
the powers conferred by this Resolution) to alter and vary
the terms and conditions and / or remuneration, subject to
the same not exceeding the limits specified under Schedule
XIII to the Companies Act, 1956 or any statutory
modification(s) or re-enactment thereof.

RESOLVED FURTHER THAT the Board be and is hereby
authorised to take all such steps as may be necessary, proper
or expedient to give effect to this Resolution.”

By Order of the Board of Directors

Vinod M. Ambani
President and Company Secretary

Mumbai
April 21, 2008

Registered Office:
3rd Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai 400 021, India
e-mail : investor_relations@ril.com

RELIANCE INDUSTRIES LIMITED 11

Notes :

1. A member entitled to attend and vote at the Annual
General Meeting (the Meeting) is entitled to appoint
a proxy to attend and vote on a poll instead of himself
and the proxy need not be a member of the Company.
The instrument appointing the 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. Corporate members intending to send their authorised
representatives to attend the Meeting are requested to send
a certified copy of the Board Resolution authorising their
representative to attend and vote on their behalf at the
Meeting.

In terms of Article 155 of the Articles of Association of the
Company, Shri R.H. Ambani, Shri S. Venkitaramanan, Prof.
Ashok Misra and Shri Nikhil R. Meswani, Directors, retire
by rotation at the ensuing Annual General Meeting and
being eligible offer themselves for re-appointment. Brief
resume of these Directors, nature of their expertise in
specific functional areas, names of companies in which they
hold directorships and memberships/chairmanships of Board
Committees, shareholding and relationships between
directors inter-se as stipulated under Clause 49 of the Listing
Agreement with the Stock Exchanges in India, are provided
in the Report on Corporate Governance forming part of the
Annual Report. The Board of Directors of the Company
commends their respective re-appointments.

4. 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.

5. Members are requested to bring their Attendance Slip along

with their copy of Annual Report to the Meeting.

6. Members who hold shares in dematerialised form are
requested to write their Client ID and DP ID and those who
hold shares in physical form are requested to write their
Folio Number in the attendance slip for attending the
Meeting.

In case of joint holders attending the Meeting, only such
joint holder who is higher in the order of names will be
entitled to vote.

8. Relevant documents referred to in the accompanying Notice
are open for inspection by the members at the Registered
Office of the Company on all working days, except
Saturdays, between 11.00 a.m. and 1.00 p.m. upto the date
of the Meeting.

(a) The Company has already notified closure of
Register of Members and Transfer Books from
Saturday, May 10, 2008 to Saturday, May 17, 2008
(both days inclusive) for determining the names of
Members eligible for dividend on Equity Shares, if
declared at the Meeting.

(b) The dividend on Equity Shares, if declared at the
Meeting, will be paid on or after June 12, 2008 to
those Members whose names shall appear on the
Company’s Register of Members on May 9, 2008; in
respect of shares held in dematerialised form, the
dividend will be paid to members whose names are
furnished by National Securities Depository Limited and
Central Depository Services (India) Limited as beneficial
owners as on that date.

10. (a) In order to provide protection against fraudulent
encashment of dividend warrants, Members who hold
shares in physical form are requested to intimate the
Company’s Registrars and Transfer Agents ,
M/s. Karvy Computershare Private Limited, under
the signature of the Sole/First joint holder, the
following information to be incorporated on dividend
warrants:

(i) Name of the Sole/First joint holder and the

Folio Number.

(ii) Particulars of Bank Account, viz.:

Name of the Bank
Name of the Branch
Complete address of the Bank with Pin Code
Number
Account type, whether Savings Account
(SA) or Current Account (CA)
Bank Account Number

(b) Members who hold shares in dematerialised form
may kindly note that their Bank Account details, as
furnished by their Depositories to the Company, will
be printed on their dividend warrants as per the
applicable regulations of the Depositories and the
Company will not entertain any direct request from
such Members for deletion of or change in such Bank
Account details. Further, instructions, if any, already
given by them in respect of shares held in physical
form will not be automatically applicable to shares
held in electronic form. Members who wish to
change such Bank Account details are therefore
requested to advise their Depository Participants
about such change with complete details of Bank
Account.

(c) To avoid loss of dividend warrants in transit and undue
delay in respect of receipt of dividend warrants, the
Company has provided a facility to the Members for
remittance of dividend through the Electronic Clearing
System (ECS). The ECS facility is available at locations
identified by Reserve Bank of India from time to time
and covers most of the cities and towns. Members
holding shares in physical form and desirous of availing

Touching lives. Transforming India.

this facility are requested to contact the Company’s
Registrars and Transfer Agents, M/s. Karvy
Computershare Private Limited.

14.

11.

12.

13.

All unclaimed dividends declared up to the financial
year ended March 31, 1995 have been transferred to
the General Revenue Account of the Central
Government as required under the Companies Unpaid
Dividend (Transfer to General Revenue Account of
the Central Government) Rules, 1978 (the Rules).
Members who have not so far claimed or collected
their dividends declared up to the aforesaid financial
year are requested to claim such dividends from the
Registrar of Companies, Maharashtra, CGO Complex,
2nd Floor, “A” Wing, CBD-Belapur, Navi Mumbai -
400 614, Telephone (091) (022) 2757 6802, by making
an application in Form II of the Rules.

Pursuant to the provisions of Section 205A(5) and
205C of the Companies Act, 1956, the Company has
transferred the unpaid or unclaimed dividends for the
financial years 1995-96, 1996-97, 1997-98, 1998-99
and 1999-2000 to the Investor Education and
Protection Fund (the IEPF) established by the Central
Government.

Dividends for the financial year ended March 31, 2002
and thereafter, which remain unpaid or unclaimed for a
period of 7 years from the date they became due for
payment will be transferred by the Company to IEPF.
Information in respect of such unclaimed
dividends and the last date for claiming the same
are provided in the Shareholders’ Referencer
forming part of the Annual Report. Members who
have not so far encashed dividend warrant(s) for the
aforesaid years are requested to seek issue of duplicate
warrant(s) by writing to the Company’s Registrars
and Transfer Agents, M/s. Karvy Computershare
Private Limited, immediately.

It may be noted that the Company had sent reminders
to the Members in this regard. Members are
requested to note that no claims shall lie against
the Company or the IEPF 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 claim.

Members who hold shares in physical form in multiple
folios in identical names or joint holding in the same
order of names are requested to send the share
certificates to the Company’s Registrars and Transfer
Agents, M/s. Karvy Computershare Private Limited,
for consolidation into a single folio.

Non-Resident Indian Members are requested to inform
the Company’s Registrars and Transfer Agents, M/s.
Karvy Computershare Private Limited, immediately
of :

a) Change in their Residential status on return to

India for permanent settlement.

b) Particulars of their Bank Account maintained in
India with complete name, branch, account type,
account number and address of the Bank with Pin
Code Number, if not furnished earlier.

15.

16.

Members are advised to refer to the Shareholders’
Referencer provided in the Annual Report.

Members are requested to fill in and send the
Feedback Form provided in the Annual Report.

EXPLANATORY STATEMENT PURSUANT TO SECTION
173(2) OF THE COMPANIES ACT, 1956

The following Explanatory Statement sets out all material facts
relating to the Special Business mentioned in the accompanying
Notice:

Item Nos. 5 and 6

Shri Mukesh D. Ambani has been the Chairman and Managing
Director of the Company since July 31, 2002. The term of
office of Shri Mukesh D. Ambani, as Managing Director of the
Company will expire on April 18, 2009.

The term of office of Shri Nikhil R. Meswani, Whole-time
Director, designated as Executive Director, will expire on June
30, 2008

The present proposal is to seek the members’ approval for the
reappointment of and remuneration payable to Shri Mukesh D.
Ambani as Managing Director and Shri Nikhil R. Meswani as
Whole-time Director, designated as Executive Director, in terms
of the applicable provisions of the Companies Act, 1956.

The Board of Directors of the Company (the ‘Board’), at its
meeting held on April 21, 2008 has, subject to the approval of
Members, re-appointed Shri Mukesh D. Ambani and Shri Nikhil
R. Meswani for a further period of 5 years from the expiry of
their respective term, on the remuneration determined by the
Remuneration Committee of the Board at its meeting held on
April 21, 2008.

Shri Mukesh D. Ambani upon reappointment as Managing
Director shall continue to hold office of the Chairman and
Managing Director.

Broad particulars of the terms of re-appointment of and
remuneration payable to Shri Mukesh D. Ambani and Shri Nikhil
R. Meswani are as under:

RELIANCE INDUSTRIES LIMITED 13

(a)

Salary, Perquisites and Allowances:

Rs. per month

Name and Designation

Salary

Perq uisites
& Allowances

Shri Mukesh D. Ambani
Chairman and
Managing Director

Shri Nikhil R. Meswani
Executive Director

5,00,000

4,00,000

1,25,000

2,00,000

The perquisites and allowances, as aforesaid, shall
include accommodation (furnished or otherwise) or
house rent allowance in lieu thereof; house maintenance
allowance together with reimbursement of expenses
and / or allowances for utilisation of gas, electricity,
water, furnishing and repairs; medical reimbursement;
leave travel concession for self and family including
dependents; club fees, medical insurance and such other
perquisites and / or allowances. The said perquisites
and allowances shall be evaluated, wherever applicable,
as per the provisions of Income-tax Act, 1961 or any
rules thereunder or any statutory modification(s) or
re-enactment thereof; in the absence of any such Rules,
perquisites and allowances shall be evaluated at actual
cost. However, the Company’s contribution to
Provident Fund, Superannuation or Annuity Fund, to
the extent these singly or together are not taxable under
the Income-tax law, and gratuity payable and
encashment of leave at the end of the tenure, as per the
rules of the Company and to the extent not taxable
under the Income-tax law, shall not be included for the
purpose of computation of the overall ceiling of
remuneration. Further, Employee Stock Options
granted / to be granted, from time to time, are not to be
considered as perquisite and not to be included for the
purpose of computation of the overall ceiling of
remuneration.

(b)

Commission:

In addition to the salary, perquisites and allowances as
above, Shri Mukesh D. Ambani and Shri Nikhil R.
Meswani shall also be entitled to receive commission
on net profits. The commission payable to them as
also to Shri Hital R. Meswani, another Whole-time
Director of the Company for each financial year, shall
be in the ratio of their respective salaries (excluding
perquisites and allowances), and the overall
remuneration (including commission to all three of them)
shall not exceed 0.402% of the net profits of the
Company as computed in the manner referred to under
Section 198(1) of the Companies Act, 1956, or any
statutory modification(s) or re-enactment thereof.

(c)

Reimbursement of Expenses:

Reimbursement of expenses incurred for travelling,
boarding and lodging including for their respective

spouses and attendant(s) during business trips;
provision of car for use on the Company’s business
and telephone expenses at residence shall be reimbursed
and not considered as perquisites.

(d)

General:

(i)

The office of Managing Director and Whole-time
Director may be terminated by the Company or
the concerned Director by giving the other 3
(three) months’ prior notice in writing.

(ii) The terms and conditions set out for re-
appointment and payment of remuneration herein
may be altered and varied by the Board as it may,
from time to time, deem fit.

Shri Mukesh D. Ambani and Shri Nikhil R. Meswani satisfy all
the conditions set out in Part-I of Schedule XIII to the Companies
Act, 1956 for being eligible for the re-appointment.

The above may be treated as an abstract of the terms of
re-appointment of Shri Mukesh D. Ambani and Shri Nikhil R.
Meswani under Section 302 of the Companies Act, 1956.

A brief resume of Shri Mukesh D. Ambani and Shri Nikhil R.
Meswani, nature of their expertise in specific functional areas,
names of companies in which they hold directorship and
membership / chairmanship of Board Committees and
relationships between directors inter-se, as stipulated under
Clause 49 of Listing Agreement with the Stock Exchanges in
India, are provided in the Report on Corporate Governance
forming part of the Annual Report.

Shri Mukesh D. Ambani and Shri Nikhil R. Meswani are interested
in the resolutions set out respectively at Item Nos. 5 and 6 of
the Notice, which pertain to their respective re-appointments
and remuneration payable to each of them. Further, Shri Hital R.
Meswani may be deemed to be interested in the Resolution
pertaining to the re-appointment of and remuneration payable
to Shri Nikhil R. Meswani, as they are related to each other.
Save and except the above, none of the other Directors of the
Company is, in any way, concerned or interested in these
Resolutions.

The Board commends the Resolutions set out at Item Nos. 5
and 6 of the Notice for your approval.

By Order of the Board of Directors

Vinod M. Ambani
President and Company Secretary

Mumbai
April 21, 2008

Touching lives. Transforming India.

Management’s 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.

Overview FY 2007-08

A year of significant achievements

This was yet another successful period for Reliance Industries
Limited’s Oil and Gas Exploration & Production business which
resulted in several key achievements.

Reliance announced several discoveries which are as follows:

(cid:127) Wells KG-III-05-P1 and KG-III-05-J1 in block KG-OSN-

2001/1 (KG-III-5)

(cid:127) Well MD1 in block KG-DWN-98/1 (KG-D4)

(cid:127) Well CY-III-D5-A1 in block CY-DWN-2001/2 (CY-III-

D5)

(cid:127) Well KG-D6-R1 in block KG-DWN-98/3 (KG-D6)

(cid:127) Well GS-01-B1 in block GS-OSN-2001/1 (GS-01)

(cid:127) Well KG-V-D3-A1 and B1 in block KG-DWN-2003/1

(KG-V-D3)

(cid:127) Well NEC-25-J1 in block NEC-OSN 97/2 (8 th gas

discovery in NEC-25 block)

Development plan for MA oil fields (KG-D6) approved
by the Management Committee.

Development plan for Sohagpur Coal Bed Methane (CBM)
Blocks (East and West) approved by the Directorate General
of Hydrocarbons (DGH).

During the year, Reliance signed an agreement to acquire certain
polyester (capacity) assets of Hualon, Malaysia. It is a leading
polyester producer in Malaysia with a capacity of half a million
tonnes per annum along with downstream textile manufacturing
capabilities spread over two locations in Malaysia, namely Nilai
and Malacca. This acquisition was the second international
acquisition in the polyester sector after Reliance acquired Trevira.
This will help Reliance consolidate its position as the world’s largest
polyester manufacturer with an annual capacity of 2.5 million
tonnes, which represents an increase of 25% over its existing
capacity. With this acquisition, Reliance’s global market share in
polyester fibre and yarn will exceed 7%.

In the Refining & Marketing business, Reliance took over majority
control of Gulf Africa Petroleum Corporation (GAPCO) and started
shipping products to the East African markets. GAPCO owns and
operates large storage terminal facilities and a retail distribution
network in countries like Tanzania, Uganda and Kenya. It owns
and operates large coastal storage terminals in Dar es Salaam
(Tanzania), Mombassa (Kenya), and Kampala (Uganda). It has
other well-spread depots in East and Central Africa. It also markets
through 250 outlets covering retail and industrial segments.

Reliance also signed MoU with GAIL (India) Limited to explore
opportunities of setting up petrochemical plants in feedstock rich
countries outside India. Earlier, Reliance and GAIL had signed a
MoU for co-operation in identified areas in natural gas - pipeline
transmission and marketing, coal bed methane gas opportunities,
city and local gas distribution, operations and maintenance services,
exploration & production and technology and knowledge sharing.

Reliance Petroleum Limited (RPL) continued the second year of
implementation of its refinery project with an overall project
progress of 90%. Based on the progress made so far, RPL expects
to complete the refinery project ahead of schedule.

During the year, Reliance Retail Limited (RRL) continued its rollout
of stores across various verticals and formats. Reliance Retail today
operates over 590 stores in 57 cities, spanning 13 states, with over
3.5 million square feet of trading space.

During FY 2007-08, two international investment rating agencies,
Moody’s and S&P, reaffirmed investment grade rating for the
international debt of Reliance.

Reliance’s Hazira manufacturing division was awarded the “Deming
Quality Control Award” for the Operations Business Unit (2007),
making it the world’s first petrochemical company to win this
award.

Reliance’s Jamnagar refinery was adjudged the winner of “Golden
Peacock National Training Award 2007”.

Reliance’s Hazira manufacturing division was adjudged the winner
of “Golden Peacock Innovation Award 2007”.

Reliance is amongst the “World’s 25 Most Innovative Companies”.
The Company was ranked 19th in the list compiled by Business
Week in collaboration with Boston Consulting Group.

Record financial performance

Turnover

PBDIT

Cash Profit

Net Profit

Rs. 139,269 crore
$ 34,713 million

Rs. 24,201 crore
$ 6,032 million

Rs. 25,205 crore
$ 6,282 million

Rs. 19,458 crore
$ 4,850 million

Net Profit (excl.
exceptional income)

Rs. 15,261 crore
$ 3,804 million

+ 18%
+ 27%

+ 18%
+ 28%

+ 43%
+ 54%

+ 63%
+ 77%

+ 28%
+ 38%

(cid:127)
(cid:127)
(cid:127)
RELIANCE INDUSTRIES LIMITED 15

During the year, Reliance set several benchmarks in terms of sales,
profits, net worth and assets. Reliance achieved the unique status
of becoming India’s first Company in the private sector to achieve
a net profit exceeding Rs. 15,000 crore (excluding exceptional
income). The net profit for the year was at Rs. 15,261 crore ($
3,804 million) with a Compounded Annual Growth Rate (CAGR)
of 30% over the past five years excluding exceptional income.

Reliance announced a dividend of 130% - amounting to Rs. 1,631
crore ($ 407 million). This is the highest ever payout by any
private sector company in India.

Return on Equity was at 24.8% and Return on Capital Employed
was at 20.3%. Reliance’s net gearing was at 22.3% and the net
debt/equity ratio was 0.35 as on March 31, 2008.

Reliance has always played a pivotal role in the growth of India’s
economy and endeavours to contribute to the country’s progress
and development. Reliance’s revenues are equivalent to about 3%
of India’s GDP. Reliance accounts for:

13.4% of India’s total exports

4.9% of the Government of India’s indirect tax revenues

6.7% of the total market capitalisation in India

(cid:127) Weightage of 16.5% in the BSE Sensex

(cid:127) Weightage of 12.5% in the Nifty Index

Financial Review

Reliance delivered superior financial performance during the year
with improvement across all major parameters.

Turnover achieved for the year ended 31st March 2008 was Rs.
139,269 crore ($ 34.7 billion), reflecting a growth of 18% over
the previous year. Increase in revenue was due to 12% increase in
prices and a 6% growth in volumes. During the year, exports were
higher by 25% at Rs. 83,492 crore ($ 20.8 billion).

Consumption of raw materials increased by 17% from Rs. 76,872
crore to Rs. 90,304 crore ($ 22.5 billion). This was mainly on
account of higher crude and naphtha prices. Traded goods purchase
increased from Rs. 1,821 crore to Rs. 6,008 crore ($ 1.5 billion)
primarily comprising petroleum products for retail sales.

Employee cost was Rs. 2,119 crore ($ 528 million) for the year as
against Rs. 2,094 crore. The previous year’s figure includes
Rs. 376 crore towards expenditure incurred on Voluntary Retirement
Scheme / Special Separation Scheme announced for the employees
of erstwhile IPCL Vadodara unit.

Operating Profit before other income increased by 16% from
Rs. 20,046 crore to Rs. 23,306 crore ($ 5.8 billion). Net operating
margin for the period was 17.5% as compared to 17.9% in the
previous year.

Other income was higher at Rs. 895 crore ($ 223 million) against
Rs. 478 crore primarily on account of increase in interest income.

Interest costs were lower by 9% at Rs. 1,077 crore ($ 269 million)
primarily on account of appreciation of the rupee vis-à-vis the US
dollar. During the year, the rupee appreciated by 7.7% against the
US dollar. Moreover, 85% of Reliance’s debt is foreign currency
denominated. During the year, Rs. 885 crore of interest was

capitalized, as against Rs 535 crore in the previous year. Gross
interest cover was 12.3 compared to 11.9 for the previous year.

Depreciation was marginally higher at Rs. 4,847 crore
($ 1.2 billion) against Rs. 4,815 crore in the previous year.

Exceptional item of Rs. 4,733 crore ($ 1.2 billion) represents
gains primarily arising out of transactions concerning RPL shares.
The transactions were conducted through stock exchanges and
have helped to further broad base the shareholding pattern of RPL.
The sale of shares monetises only a fraction of Reliance’s holding
in RPL at the same time increasing free float in the market. This
has unlocked value for Reliance shareholders. Reliance now holds
70.38% of RPL’s equity.

Profit after tax, including exceptional item, was Rs. 19,458 crore
($ 4.9 billion) as against Rs. 11,943 crore for the previous year, an
increase of 63%. Profit after tax, excluding exceptional item was
Rs. 15,261 crore ($ 3.8 billion), representing an increase
of 28%.

Basic earning per share (EPS), including exceptional item, for the
year was Rs. 133.9 ($ 3.3). Basic earning per share (EPS) excluding
exceptional item, for the year was Rs. 105.0 ($ 2.6) against
Rs. 82.2 for the previous year.

The outstanding debt as on 31st March 2008 was Rs 36,480 crore
($ 9.1 billion) compared to Rs 27,826 crore as on 31st March
2007. Net gearing as on 31st March 2008 was 22.3% as compared
to 25.2% on 31st March 2007.

Reliance has domestic credit ratings of AAA from CRISIL and
FITCH. Moody’s and S&P have reaffirmed investment grade ratings
for international debt of Reliance, as Baa2 and BBB respectively.

Capital expenditure during the year was Rs. 19,503 crore ($ 4.9
billion) primarily on account of exploration and production,
implementation of value maximisation projects and expansion of
petrochemical capacities. Details of the capital expenditure
undertaken during the year are as follows:

Oil & Gas (E&P)
Refining & Marketing
Petrochemicals
Common
TOTAL

FY 2007-08
13,443
2,661
506
2,893
19,503

(In Rs. crore)

FY 2006-07
5,725
1,430
462
1,363
8,980

Contribution to the National Exchequer

Reliance is one of India’s largest contributors to the national
exchequer primarily by way of payment of taxes and duties
to various government agencies. During the year, a total of
Rs. 13,696 crore ($ 3.4 billion) was paid in the form of various
taxes and duties.

Leadership in exports

Reliance maintained its leadership status as India’s largest exporter.
Exports, including deemed exports, were at Rs. 83,492 crore
($ 20.8 billion) as against Rs. 66,627 crore in the previous year.

Reliance exports products to 108 countries. Some of them are the
most stringent quality-driven and value-driven developed nations.
This demonstrates Reliance’s global competitiveness, the world-

(cid:127)
(cid:127)
(cid:127)
16

Touching lives. Transforming India.

class quality of its products and superior logistical capabilities. The
Company has achieved this significant growth in exports while
maintaining its share in the domestic market.

Revenues from exports now represent 60% of the Company’s
turnover. Petroleum products constitute 77% and petrochemicals
contribute 23% of the total exports.

Resources and Liquidity

Reliance’s financial framework allows it to maintain a conservative
financial profile even while pursuing aggressive business growth
strategies. This is reflected in Reliance’s domestic as well as
international ratings. The Company’s long-term debt is rated ‘AAA’
from CRISIL and ‘Ind AAA’ by Fitch - the highest ratings awarded
by these agencies. The short-term debt programme is rated P1+
and working capital debt programme is rated AAA (Assigned) by
CRISIL, the highest credit rating that can be assigned in this category.
The Company’s international debt has been rated BBB (Stable
Outlook) by S&P, Baa2 (Stable Outlook) by Moody’s and BBB-
(Stable Outlook) by Fitch. S&P has rated Reliance above India’s
sovereign rating.

Reliance’s gross debt equity ratio, including long-term and short
term debt as on March 31, 2008, is at 0.45. The Company’s long
term debt as on March 31, 2008 was at Rs. 27,957 crore ($ 6,968
million). Of this, foreign currency denominated debt represents
85% with an average maturity of 5.2 years. The average maturity
of the Company’s long-term debt is 5 years.

Reliance continued to demonstrate dynamism and flexibility in
debt issuance during the year. In May 2007, the Company set a new
benchmark in Asia by raising a $ 2 billion syndicated term loan for
a 10-year period at competitive rates with participation from 23
banks from across the globe. This is a landmark deal as it makes
Reliance the first corporate borrower from India to have accessed
the External Commercial Borrowings (ECB) market for this size.
In September 2007 the Company also raised $ 500 million by way
of a syndicated term loan at competitive rates amidst the sub-
prime turmoil in the global markets.

Reliance meets its working capital requirements through commercial
credit lines provided by a consortium of Indian and foreign banks.
Reliance undertakes liability management transactions to reduce
overall cost of debt and diversify liability mix.

As on March 31, 2008, Reliance has cash and cash equivalent of
Rs. 7,566 crore ($ 1,886 million). The Company actively manages
its short-term liquidity to generate reasonable returns by investing
surplus funds while preserving the safety of capital.

Business Review

Oil and Gas Exploration & Production (E&P)

Sector overview

High commodity prices and robust demand for oil and gas resulted
in the E&P industry experiencing a record year. IPE Brent prices
averaged at $ 82.8 /bbl during FY 2007-08 as against an average of
$ 64.2 /bbl in FY 2006-07. Henry Hub natural gas price averaged at
$ 7.4 /MMBTU for FY 2007- 08. One of the major events in the
industry was crude oil prices crossing an all time high of $ 100 /bbl.
The energy demand was driven by secular global growth. Supply
chain pressures also led to price escalations. In another significant

development, spot Liquefied Natural Gas (LNG) prices breached its
oil price parity in the Asian LNG markets.

The International Energy Agency forecasts the global demand for
oil to grow by 1.5% to 87.2 million BPD in 2008. The previous
year 2007 saw an increase in global oil demand to 86.0 million
BPD, resulting in an increase of 1.3% over 2006.

High commodity prices and robust growth have ensured strong
profitability and cash flows for E&P companies. They have
encouraged significant investments across the global energy value
chain, resulting in severe pressure in the supply chain. The cost of
exploration and development has increased sharply with the cost
of drilling rigs, seismic services, engineering, fabrication and
installation costs contributing to the increase. This trend is likely
to continue in the medium term.

Rising challenges in the E&P sector

The capital expenditure in the E&P industry is estimated to be
upwards of $ 300 billion per annum. Operators are increasingly
looking at opportunities in the deep waters of the Gulf of Mexico,
West Africa, Latin America and in the Asia Pacific Region.

Deep water exploration is a fast emerging frontier for oil and gas
as the era of ‘easy’ oil seems to have come to an end. The overall
cost inflation in upstream projects in deepwater areas has increased
by more than 100% since 2002. Cost of steel has increased by
100% since 2002 while in sub-sea and EPC contracts price inflation
is also around 100%. PIRA estimates that since 2002, finding &
development costs have increased from $ 8/ bbl to $ 15/ bbl in
2006, an increase of 90%. CERA estimates that capex inflation
has risen from a base of 100 to touch 198 in the third quarter of
2007.

Shortage of rigs is hampering exploration efforts worldwide. The
high day rates of operating the rigs are driven by demand/supply
fundamentals and rise in the cost of manpower, services and raw
materials. Demand for 6th generation drill-ships capable of drilling
in harsher environments far exceeds the availability. Consequently,
contracting rigs is a big challenge for operators and due to this
shortage, rig utilisation rates are expected to remain high. Shipyards
constructing deepwater rigs are fully booked and the lead time for
a new build is between 3-4 years.

Recent oil and gas discoveries are in deep waters, oil sands, shales,
arctic and unconventional geographies. These discoveries are in
much harsher terrains and in new frontiers. In addition, availability
of manpower, services and equipment is limited. Evacuation and
transportation logistics of resources are also becoming more
challenging. All these factors are resulting in project cost escalation
and delays.

About 88% of world’s proven oil reserves of 1,148 billion barrels
are under the control of national oil companies (NOCs) with no
equity participation by international oil companies (IOCs) in them.
IOCs in the western part of the world now control less than 10% of
the world’s oil and gas resource base.

In spite of these challenges, profitability of E&P companies has
been strong in recent times, driven largely by record oil prices.
During the past five years, oil prices have increased from an average
of $ 25 /bbl in 2002 to $ 72 / bbl in 2007, an increase of 188%.
More recently, oil prices have moved to as high as $ 120 /bbl.

RELIANCE INDUSTRIES LIMITED 17

Henry Hub gas prices have also increased from $ 3.34 /MMBTU in
2002 to the average price of $ 7.4 /MMBTU in 2007.

(cid:127) Macro-economic factors

Growth of end-user segments

Cost of gas vis-à-vis alternate liquid fuels

Regulation and policy making

Environmental concerns

New uses of natural gas (for example, co-generation)

Reliance’s E&P portfolio

Reliance with its subsidiaries is India’s largest exploration acreage
holder in the private sector with a portfolio comprising the
following:

30% interest in Panna-Mukta and Tapti (PMT) fields

33 exploration blocks awarded under the NELP and Pre-NELP
licensing rounds

5 coal bed methane (CBM) blocks

Exploration interests in Yemen, Oman, East Timor, Kurdistan
(Iraq), Colombia and Australia

Reliance’s ambition is to be a global energy major with a significantly
diversified upstream portfolio. The Company’s focus on training
people, processes and technology is expected to help in
strengthening its commitment towards exploration, development
and production activities.

Development of a global natural gas market continues

Gas accounts for 34% of the energy basket in the Former Soviet
Union region and in Europe, 24% in USA, 15% in Japan and 14%
in Korea. The world average is 24%. In India, gas accounts for just
8% of the energy basket constrained by limited availability of gas
and nascent transmission and distribution infrastructure.

The share of gas in the global energy mix is set to increase primarily
driven by the power sector, industrial sector, city gas distribution
and gas-to-liquid opportunities. Gas is preferred because of its cost
competitiveness and environmental advantages over other fossil
fuels. Gas is also more convenient to use vis-à-vis other
fossil fuels.

Accelerating global demand, increasing import dependency, and
the build-out of LNG infrastructure are supporting price discovery.
Industry expectations suggest continued strength in global GDP
over the long-term driven by developing economies of Asia and
the Middle East and a 40% increase in LNG liquefaction capacity
over the coming 3 years addressing 11% of global demand by 2010.

Powerful trends are supporting demand growth and prices in both
the developed and developing nations. In 2007-08, Henry Hub
Prices averaged $ 7.4 / MMBTU. In Europe, the NBP prices
averaged 40 pence per therm which is the equivalent of around
$ 8 /MMBTU. The Asian LNG prices were $ 9.5 /MMBTU based
on average for prices in Japan and Korea. Long term contracts
signed by China for LNG are at around $ 10 /MMBTU (FOB).
These contracts are for 2-3 MMTPA and the first sale is expected
to commence in the year 2013-14.

In the developed world, natural gas is the only near-term generation
option to bridge the energy gap. A similar trend is clear in Asia and
Australia. In the developing world, rapid economic growth is fueling
energy demand in all its forms. Natural gas has been a niche fuel,
not easily available due to infrastructure constraints and domestic
productive capacity. However, the price of alternative fuels
(particularly crude products) is supporting a re-evaluation of energy
source, which in many cases favors natural gas. While nuclear and
renewable remain the long term “green” solutions of choice, natural
gas will remain the primary near-term alternative to meet the
demand for growth in generation in developed and developing
economies.

Natural Gas in India

The landscape of the Indian natural gas market is set to witness
significant change. Natural gas currently accounts for around 8%
of the total energy mix in India as against the global average of
24%. However, with increased availability and spurt in transmission
and distribution infrastructure, the share of natural gas in the energy
mix is set to rise. For 2007-08, gas production is expected to be 88
MMSCMD and LNG consumption is estimated at 33 MMSCMD.

The major demand centers, excepting the north-eastern market
which is not connected to the transmission network of the rest of
India, have been considered for making demand projections. The
un-met demand for natural gas is estimated to increase from about
113 MMSCMD (FY 2007-08) to 396 MMSCMD by the year 2022.
The following factors are expected to drive the increased
consumption of natural gas in India:

(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
18

Touching lives. Transforming India.

Performance of PMT

The Tapti expansion project called “New Revised Plan of
Development” was carried with the objective of development of
Mid Tapti field and expansion of Central Processing/Compression/
Export capacity. This included a new Compression and Processing
Platform (TCPP), a Second Tapti Flare Platforms (STFP), a new
9 slot well head platform (MTA), intra-field flow lines and an
export pipeline. On completion of this project, additional
production from Tapti has stabilized at 6 MMSCMD of gas and
4,500 BOPD of condensate.

The development plans of South West Panna (SWP) and Panna K
(PK) fields have been approved and the Engineering, Procurement,
Installation and Commissioning Contracts (EPIC) are in progress.
Production from SWP and PK fields is expected in 2009.

The Panna-Mukta fields produced 1,910,000 tonnes of crude oil
and 2,030 MMSCM of natural gas, reflecting a growth of 9% and
22% respectively. The Tapti field produced 3,365 MMSCM of gas
and 232,000 tonnes of condensate, reflecting a growth of 51% and
82% respectively.

RELIANCE INDUSTRIES LIMITED 19

Successes in exploration

On Shore Terminal (OT)

It was another very successful year of exploration for Reliance.
The Company surpassed its previous record and had 9 offshore
discoveries of which seven were gas discoveries, one an oil discovery
and another one contained both oil and gas. The discoveries were
across four offshore basins viz. Mahanadi, Krishna, Cauvery and
Gujarat-Saurashtra. With these, the inventory of discovered blocks
stands at 37 reflecting a success ratio of 63 %.

Three gas discoveries were made in the Krishna basin in deep water
(KG-D6-R1, KG-V-D3-A1 & B1). Two more gas discoveries were
made in the Krishna basin in shallow water (KG-III-05-P1 & J1). A
deep water discovery was made in the Cauvery basin (CY-D5-A1)
yielding both oil and gas. An oil discovery was made in the deep
waters of the prolific Krishna basin (KG-D4-MD1). One gas
discovery each was made in the shallow waters of the Gujarat-
Saurashtra basin (GS-01-B1) and Mahanadi basin (NEC-25-J1). In
order to assess their commerciality, appraisal process is underway.

Development plan for Sohagpur coal bed methane blocks (East
and West) was approved by the DGH.

Reliance’s strategic perspective on E&P

Deepwater projects typically face many technical challenges. It is
essential that these challenges are assessed, mitigated, and managed
throughout project execution by selecting appropriate field
development plans, risk management, and modifying project
implementation methods.

Some of the most critical activities involved in developing
deepwater block are selection and design of concept, mitigation of
reservoir uncertainties, well completions, flow-lines and risers,
mitigation of flow control and assurance risk, processing and support
transportation and storage facilities.

Reliance’s development strategy is focused on use of best practices
and application of proven technology.

Developments in KG-D6 (D1 and D3):

The development of discoveries Dhirubhai-1 and Dhirubhai-3 in
the KG-D6 block are on schedule for production of first gas during
second half of FY 2008-09. Milestones achieved are:

Drilling and Well Completions

17 wells were drilled during the year. Hardware required for the
purpose of wells completion has been delivered and well completion
is under progress.

Off Shore: Sub-sea

Sub-sea hardware has been received. Installation barges and support
vessels have been mobilized and are operational. Installation work
is in advanced stages of completion.

Off Shore Installation

Off shore equipment has been delivered. Installation of the jacket,
deck and living quarters for the Control-cum-Riser Platform (CRP)
has been completed. Hookup and pre-commissioning activities
have commenced. Installation of the sub-sea is progressing in full
swing and vessels have been mobilized for off-shore installation
purposes.

Major equipment and packages have been delivered at the site.
Civil works are almost completed with around 80% of structural
work also complete. Installation of major equipment and packages
has also been completed. Consequently, the infrastructure facilities
at the OT are in operation. Construction of buildings in the
infrastructure area is in advanced stage of completion.

Development Plans

During the year, Reliance submitted the development plan for
Dhirubhai - 26 cretaceous oil discovery (MA) in KG-D6 and it has
since been approved.

MA field is a fast track development project. This will be the first
Floating Production Storage & Off-take (FPSO) project in India
located at depth ranging from 1,100 meters to 1,400 meters.
Facilities on board the FPSO include process plant, gas compression
facilities, power generation facilities and offloading. Major sub-sea
hardware fabrication has already been completed and shipped to
the site. Installation of sub-sea hardware has commenced as per
schedule. Mooring lines, buoy and gas injection umbilical have
been installed. Installation of production risers has commenced.

The development plan for the NEC-25 block has been submitted
to the DGH for its approval.

International blocks

The international business comprises 11 blocks with acreage of
about 80,000 square kilometers - 3 in Yemen (1 producing and 2
exploratory), 2 each in Oman, Kurdistan and Colombia, 1 each in
East Timor and Australia.

The average production at the Yemen Block 9 was 4,500 BOPD.
There was a discovery of oil in the exploratory well Malik - 1. The
size of the discovery is yet to be ascertained.

Processing and interpretation of recently acquired 2D and 3D
has been completed in the Oman Block 18. Processing and
interpretation of data is in progress. An inventory of drillable
locations is being finalized. Preparatory activities like setting up
a shore base are currently underway with an objective to drill
an exploratory well subject to the availability of a suitable
exploratory rig.

Reliance has further expanded its international footprint in
exploration business:

Executed two Production Sharing Contracts (PSC),
with the Kurdistan Regional Government (KRG). These
PSC’s cover petroleum exploration activities in the ‘Rovi’
and ‘Sarta’ blocks in the Kurdistan region of Iraq.

Signed Production Sharing Agreement (PSA) for an offshore
block no. 41 in Oman deep water. The block measures over
20,000 square kilometers. The new block is adjacent to
Reliance’s earlier block which was acquired in 2005.

Signed Production Sharing Agreements (PSA) for two on
land blocks in Yemen. The exploration blocks 34 and 37 are
located in Jeza basin of eastern Yemen. Reliance holds 70%
participating interest in both these blocks.

Signed contracts for two offshore blocks, Borojo North and
Borojo South, in Colombia. The contracts envisage

(cid:127)
(cid:127)
(cid:127)
(cid:127)
20

Touching lives. Transforming India.

exploration of two blocks located in the Pacific Ocean, west
of Colombia in water depths reaching up to 1,500 meters.
The size of each block is approximately 4,000 square
kilometers.

Acquired an exploration permit for an offshore block WA
405 P in Australia.

Refining and Marketing

Industry overview and prospects

Demand was robust throughout the year even as crude prices climbed
over $ 100 /bbl; despite the looming threat of global slowdown.
OPEC’s reluctance to increase global oil supply and tightening of
product specifications added pressure to an already stretched refining
system. Rising costs and project delays continued to hamper growth
in new refinery capacity additions. Complex refiners continued to
gain due to wide light-heavy differentials and higher light product
margins. High oil prices however put simple refining margins under
pressure.

Prospects for the sector remain positive given the robust demand
outlook and continuing delays as well as cancellation of several
planned projects. Outlook for margins remains positive for complex
refiners.

Resilient demand despite high oil prices

According to the International Monetary Fund (IMF) global
economy grew by an estimated 4.9% in 2007 despite concerns of
tighter financial market conditions, high oil prices and inflation. A
key contributor to the positive growth trend remained the Asian
region, with China and India registering an impressive 11.4% and
8.7% economic growth respectively. In addition, Middle East and
CIS countries grew by 6% and 8.2% respectively.

In 2007, global demand for petroleum products grew to 86.0 million
BPD from 84.9 million BPD in 2006. The demand came in stronger
from the Non-OECD countries, driven primarily by China, Middle
East and Latin America, as compared to the OECD nations where
the demand was lower due to weaker economic activity, higher oil
prices and mild weather conditions particularly in OECD Pacific.
The economic expansion started showing signs of slowdown after
a strong growth in the third quarter of the calendar year 2007.

IMF estimates the global growth to decelerate to 4.1% in 2008 due
to financial strains originating in the US sub-prime sector and a
continued slow growth in Europe and Japan.

Even with a potential of a slower economic expansion, the
International Energy Agency (IEA) expects stronger growth in
global demand for petroleum products and forecasts it to grow by
1.5% to 87.2 million BPD in 2008, driven mainly by demand
growth centers of China, India, the Middle East and Africa, where
the economic growth projections continue to remain robust. In
the medium term, petroleum product demand is expected to clock
a compounded annual growth rate of 2.2% during 2008 - 2012, as
per projections of IEA Mid Term Outlook. IEA expects the
petroleum product consumption to increase to 95.82 million BPD
in 2012. Concerns of a tight crude oil market and supply disruptions
will continue through the next year.

Transportation fuels driving the growth

Several populated economies are at threshold levels of per capita
income, beyond which mobility and transportation fuel
requirements tend to grow exponentially. Given this intrinsic linkage
between the economy and mobility, the world is expected to undergo
considerable shift in favor of lighter transportation fuels. Asia (led
by India and China), Middle East and Africa have emerged as new
economic centres and are expected to drive demand growth for
petroleum products in the foreseeable future. This should call for
matching growth in refining capacities in the region that are suitable
for meeting growing transportation fuel demand.

In 2007, aggregate demand for transportation fuels comprising
gasoline, diesel and jet kerosene grew by an average 1.2% against a
decline of 0.1% for fuel oil. The trend of faster growth in
transportation fuels is likely to continue. According to the World
Refining and Fuel Service (HART Publishing), gasoline, diesel and
jet kerosene are expected to grow at a compounded annual rate of
1.7%, 2.5% and 2.2% respectively till 2010. Growth in residual
fuel oil is expected to be the least due to ongoing substitution with
natural gas in power generation and heavy industrial applications.

Policy responses to high oil prices

Faced with the low prospect of oil prices easing in the absence of
higher production, governments have reached a tipping point that
forces them to address demand-side energy policy. The USA
introduced its energy bill “Energy Independence and Security Act”
which mandates the CAFE (Corporate Average Fuel Economy) to
increase to 35 miles per gallon by 2020 from existing 22 miles per
gallon for light trucks and 27.5 miles per gallon for cars. The
Renewable Fuel Standard (RFS) sets annual requirements for the
amount of renewable fuels produced and used in motor vehicles.

In addition to the USA, several large consuming countries have
already come up or are in the process of formulating their own
policies that revolve around efficiency improvements and
mandating alternative fuels. The mandated bio-fuels would be
blended with the petroleum products in varying quantities.

Greening of fuels

During the past two decades, global planners and related stakeholders
have painstakingly worked towards making petroleum products
cleaner and greener. The refining industry has also taken proactive
steps in co-operating towards this global cause. A large portion of
investments made in the refining industry are aimed at producing
fuels with low sulphur content and cleaner burning in order to
reduce emission levels.

In most of the major oil consuming countries like EU, Japan and
some Asian countries, sulphur will be virtually eliminated from
gasoline and diesel by the year 2009 with a mandated maximum
content of 10 parts per million (ppm). The current standard is 15
ppm in the case of diesel and 30 ppm for gasoline in the United
States, whereas the standard is 15 ppm for both in Canada. Gasoil
is also being targeted, with Europe reducing the maximum limit on
sulphur from 2000 ppm to 1000 ppm from January 2008. This
ongoing trend will present new trade opportunities for global
complex refiners like Reliance. The society at large stands to be
the leading beneficiary of this trend.

(cid:127)
RELIANCE INDUSTRIES LIMITED 21

Refinery capacity and utilization trends

During 2007, global refining capacity grew marginally, from 85.1
million barrels per day (BPD) to 85.3 million BPD. According to
Oil & Gas Journal’s Worldwide Refinery Report, the rise in capacity
was only through creep by few players. No refineries closed down
in 2007, mainly due to high refining margins that made even the
smallest plants profitable. This meager capacity rise resulted in
additional pressure on the global refining system that was already
stretched to operating rates of about 85.3%, which are amongst
the highest levels witnessed in the last two decades. The average
capacity utilization rates in 2007-08 for refineries in North
America, Europe and Asia were at 86.2%, 83.9% and 85.7%
respectively. This set the stage for continued strength in refining
margins, well above historical averages, for two consecutive years
of 2006 and 2007.

IEA estimates an additional global crude distillation capacity
requirement of about 9.7 million BPD towards meeting the estimated
global demand by 2012. Though several large capacity
announcements have taken place in recent years, their progress
has been slow on account of rising costs and manpower shortage.
In an already stretched refining industry, it has raised concern over
the ability to meet incremental demand growth and improved
prospects for refining margins, especially for complex refiners.

Gross Refining Margins

Refining margins witnessed significant volatility during the year.
Margins peaked in the second quarter of the year due to high light
product cracks and tightened product markets but dropped in the
third quarter mainly due to increased crude prices and reduced cracks.
In the fourth quarter, US Gulf Coast margins continued to decline
due to weak gasoline cracks whereas Singapore complex margins
increased on the strength of high jet fuel / kerosene and gas oil
cracks.

Refinery Gross margins ($ / bbl)

Reliance

11.7

15.0

FY 2006-07

FY 2007-08

Regional Benchmarks

Singapore (Dubai)

US Gulf Coast (Brent)

US Gulf Coast (WTI)

Rotterdam (Brent)

Mediterranean (Urals)

6.1

7.8

8.3

4.6

5.8

7.6

6.9

8.9

4.9

4.8

(Source : Reuters)
Margins for complex refineries continue to remain strong, supported
by tightened product markets, strong margins for light products
and unplanned outages by large refiners. However, margins for
simple refiners dropped on the back of improved utilization, lower
turnaround rate and fuel switching in China and US.

Reliance’s Jamnagar refinery achieved superior gross refining
margins due to scale, complexity, higher yields, superior product
mix and a wide crude slate.

Product margins remained healthy with crack spread for gasoline
in Singapore averaging at $ 13.5 /bbl in 2007 as against $ 10.9 /bbl

in 2006, while that of gas oil at $ 16.7 and $ 15.3 /bbl respectively.
Fuel oil crack margins averaged at $ (-) 10.3 /bbl in the year 2007
against $ (-) 12.7 /bbl in 2006, leading to improved margins for
simple refiners.

The medium term outlook for refining margins looks positive, due
to robust growth in demand, stretched utilization levels and lagging
new capacity buildup. Refining capacity bottlenecks are also unlikely
to reduce prior to 2012 on account of project delays. In addition
to supply-demand dynamics, refining margins are influenced by
the cost efficiency in crude oil sourcing, manufacturing reliability,
material evacuation infrastructure and the ability to produce
transportation fuels.

Changes in product specifications are also leading to lower yields
of clean products as the refiners reconfigure themselves in order to
meet specifications. Complex refiners stand to gain from (i) higher
premiums for ultra-clean fuels in the western markets and (ii)
changing crude oil dynamics.

The complex configuration of Reliance’s refinery gives it the ability
to process both heavy and sour crude. Incremental oil supplies
through new discoveries are in the “challenged-category” and
require unique capabilities for processing. These factors continue
to support a high level of light-heavy differential and provide an
advantage to complex refineries.

Crude price movements and outlook

Crude prices continued to rise and touched a new high, with the
WTI peaking at $ 120 / bbl in April 2008. Spurt in crude prices
were due to a combination of geopolitical events and unplanned
outages of some of the oil production fields. The prices continued
to hover at historically high levels with Brent, WTI and Dubai
crude prices still averaging at $ 82.8, $ 81.6 and $ 76.5 /bbl for FY
2007-08. This reflected an increase of 29%, 26% and 25%
respectively over the corresponding levels of FY 2006-07.

Demand for petroleum products in India

During the year, domestic demand for petroleum products increased
from 111.7 million tonnes to 118.8 million tonnes - a growth of
6.3%. Transportation fuels grew faster at over 10%. The
consumption of HSD (High Speed Diesel), which accounts for more
than a third of the total consumption, grew at 11.1%. Growth in
MS (Motor Spirit) was at 11.2% and that of ATF (Aviation Turbine
Fuel) was at 14.1%. Demand for LPG (Liqueified Petroleum Gas)
was up by 7.5% while sales of Naphtha and Kerosene declined by
14.8% and 0.6% respectively. Aggregate Indian refining capacity
remained unchanged at 149 million tonnes.

Performance review

Reliance’s refinery, located in Jamnagar in Northwest India, has a
capacity of 33 million tonnes per annum. It is the first refinery
established by the private sector in India and is the third largest
single location refinery in the world.

During FY 2007-08, the refinery processed 31.8 million tonnes of
crude and had a high utilisation rate of 96.4%. The utilisation rate
could have been higher but for the planned maintenance shutdown
of one unit of crude distillation of the refinery in October 2007.

Touching lives. Transforming India.

Production details of Reliance’s petroleum products are as follows:

Petrochemicals

The petrochemical industry is an integral part of energy value
chain that offers a wide range of products to meet material needs
of virtually every sector like agriculture, water conservation,
construction, automobiles, consumer durables, textile, healthcare,
packaging etc. During the past few years substantial investments
have been made in new capacities in emerging economies like
China, India and the Middle East. While growth in China and India
are driven by local demand, the Middle East region is expected to
emerge as a production hub due to availability of cheap feedstock
like ethane, propane and condensate.

The Ethylene scenario:

Ethylene is the principal petrochemical building block and is a
major feedstock for polymers. Global ethylene demand grew by
4.6% in 2007 reaching 114 million tonnes, primarily due to strong
demand from its derivatives like Polyethylene and Ethylene Oxide
/ Glycols. The growth in supply was largely from Middle East
which grew at 23.5%.

Global capacity of Ethylene during this period grew by 4.5% to
132 million tonnes keeping industry operating rates relatively
high. In Asia, Formosa Plastic started its 1200 KT Ethylene cracker
at Mai Liao in Taiwan. Qapco, Qatar expanded its 525 KT Ethane
based cracker taking it to 720 KT. Iran added two new crackers
with Arya Sasol started its 1,000 KT Ethane feed cracker and Jam
Petrochemicals started its 1,320 KT mixed feed cracker in 2007.

Ethylene operating rates

Cracker operating rates are a prime indicator of Ethylene chain
profitability. Historically, Ethylene chain profitability was seen to
increase exponentially at operating rates above 90%. Global
Ethylene capacity utilization has remained above 90% since 2004
and is expected to stay high in 2008.

Production (KT)

FY 2006-07

FY 2007-08

Gases & Distillates

Fuel oils and solids

Total Production

28,001

4,726

32,727

28,522

4,617

33,139

For the year under review, average gross refining margin stood at $
15 /bbl, reflecting a premium of $ 7.4 /bbl over the Singapore
Crack Margins. Reliance’s consistent performance over the
benchmark reflects the benefits of higher complexity, capability
to process heavier / sour crude and produce superior product quality.
Reliance’s refinery has particularly benefited from tightening of
product specifications around the world and has been able to capture
the ‘Clean and Green’ premium of supplying products to the most
quality conscious markets across continents.

Petroleum products marketing

The Company has 1,432 retail outlets in India. Expansion plans of
the network are affected primarily due to under-recoveries and an
uneven level playing field for private players.

Aggregate export volumes of refined products grew by over 25%
to 22.1 million tonnes from 17.7 million tonnes in the previous
year. Exports account for 67% of aggregate refinery product
volumes and export revenues were at $ 16.1 billion, reflecting a
growth of 43% as compared to the previous year. For the very first
time, Reliance’s refinery at Jamnagar exported high quality 50
ppm Ultra Low Sulphur Diesel to European markets. Asia accounted
for 55% of overall exports; Europe accounted for 20% followed by
Africa which accounted for 18% of the overall petroleum products
exports.

During the year, Reliance took over majority control of Gulf Africa
Petroleum Corporation (GAPCO). GAPCO owns and operates large
storage terminal facilities and a retail distribution network in several
East African countries. This acquisition is a strategic step for
Reliance towards achieving its global vision in the petroleum
downstream sector by integrating the entire value chain consisting
of refining, shipping, trading, terminal and marketing through retail
and wholesale segments.

After acquisition of GAPCO in August 2007 supply, infrastructure
and retail network have been strengthened to achieve distribution
efficiency, superior productivity and higher throughputs. Sales and
cash profits have grown significantly under Reliance’s management.

The East African countries have seen rapid economic growth and
demand for petroleum products. Import of petroleum products in
these countries is also expected to rise in the near future and
Reliance is now strategically positioned to capitalise these
opportunities.

Reliance entered the high-growth aviation fuel segment this year
and has presence at 14 airports in India.

Reliance plans to sharpen its focus on global markets for a significant
part of petroleum products produced at the refinery. Towards this
end, Reliance converted its Jamnagar complex as an Export Oriented
Unit (EOU) in April 2007.

Ethylene global demand-supply

RELIANCE INDUSTRIES LIMITED 23

$ 0.75 to $ 2.00 /MMBTU, making the region one of the lowest
cost ethylene producers in the world.

Changing age profile of crackers and its impact

Globally 10% of cracker capacities are less than 5 years of age,
whereas 23% cracker capacities are more than 30 years old. These
aging facilities are likely to be under pressure from new world scale
plants. The older crackers which are mainly based on liquid feeds
and are smaller in size (below 300 KT) are likely to be the most
vulnerable during a down cycle due to higher variable costs and
feedstock costs.

(Source : CMAI)

Large capacity additions in the Middle East and Asia during 2009-
2011 may impact operating rate thus marking the potential for a
down cycle. The industry is also witnessing a high feedstock cost
environment due to strong crude oil and resultant naphtha prices.

Shift in global ethylene capacity base

Large capacity addition currently underway in the Middle East and
China are poised to change the geographical demand supply
dynamics. Share of developed regions (North America and Europe),
currently at 46%, is likely to come down significantly by 2012. On
a global capacity base of 132 million tonnes, over 28 million
tonnes of new capacities are planned or being added in Middle East
and China during next few years. The bulk of these facilities are
coming up in Saudi Arabia, Iran and China.

Ethylene capacity additions planned in India

Ethylene capacity in India marginally increased with 70 KT of
expansions by GAIL. In next five years the capacity is expected to
increase from current 3.1 million tonnes to 5.8 million tonnes,
with a CAGR of nearly 14 %. While 65% of new capacity and
expansion would be based on refinery off-gas at Reliance, nearly
35% would be based on liquid/mixed feed being pursued by other
producers.

Changing feedstock mix in future

Annual Ethylene demand growth is expected to average at 4.8%
over the next few years. Polyethylene and Ethylene Oxide / Glycol
are likely to remain the dominant derivatives. Based on new
capacities announced and plants that are under construction, global
Ethylene capacity is expected to be at 162 million tonnes by
2012, slightly ahead of the demand growth.

Globally, ethylene is produced from a variety of hydrocarbon
feedstock. Over 60% of current cracker capacity is based on liquid
feed. The balance is based on gas of which around 12% is based on
the advantageously priced gas in the Middle East. The share of gas
based crackers in global capacity is expected to increase in future.
Ethane, which is used as a primary feedstock for most of the
Middle East crackers, is available at fixed natural gas prices of

Reliance’s off-gas cracker at Jamnagar (2.0 million tonnes of total
Olefins) will be configured to benefit from integration between the
refineries and petrochemical complex wherein production
economics would be comparable to many of the Middle East
facilities.

The Polymers scenario (PP, PE, PVC):

Consumption of major thermoplastics was at 183 million tonnes
globally. Polyethylene, comprising of High-density Polyethylene
(HDPE), Linear Low-density Polyethylene (LLDPE) and Low-
density Polyethylene (LDPE) constitute about 38% of major
thermoplastics usage followed by Polypropylene (PP) 24% and
Polyvinyl Chloride (PVC) 19%. Reliance is present in nearly 90%
of global thermoplastics categories.

Touching lives. Transforming India.

were highly acclaimed and leading global machinery manufacturers
of BOPP lines approved these for their customers worldwide.

Reliance’s production

Reliance maintained its leadership in domestic market with a share
of 55%. Aggregate production increased by 160 KT, registering a
growth of 5% over previous year. The increase in production is
attributed to the full impact of the new PP plant at Jamnagar and
also to the scheduled maintenance shutdown of the cracker and
downstream plants at Hazira during the previous year.

Polymer Production in KT

Product

FY 2006-07

FY 2007-08

P P

PVC

Total

1,641

1,011

562

3,214

1,712

1,083

579

3,374

Polypropylene business (PP):

In 2007, the global capacity of PP was 49 million tonnes and
demand was at 44 million tonnes. Demand grew at a healthy rate of
5.8%. Operating rate was relatively high at 90%.

North-East Asia (NEA), West Europe and North America account
for 70% share of the global demand. Markets of the Indian
subcontinent, CIS and Baltic States and NEA have grown faster at
13%, 11% and 9% respectively.

Prices remained firm throughout the year. With cost push from
crude and naphtha, prices are expected to remain firm in the near
future but could soften thereafter, depending on quantum and
timings of new capacities.

Over 4.4 million tonnes of new PP capacity could be added during
2008-09, of which 0.9 million tonnes is being commissioned by
RPL. Almost 2.85 million tonnes of new capacity is coming up in
Middle East alone.

However, with high degree of integration of PP manufacturing
with its refinery, Reliance is well placed on the feedstock front as
compared to other PP producers. The Company’s focus on specialty
grades fetching higher realization and capturing value through chain
operations would help its PP business maintain global leadership
position.

Domestic demand for PP witnessed strong growth of 16% during
the year. The demand for 2008-09 is expected to be healthy. PP
consumption growth is driven by growth in packaging, automotive,
durables and industrial applications.

Key end use segments in packaging are bulk packaging for cement,
food grains, chemicals packaging. Flexible packaging growth is
driven mainly by BOPP for packaging of snack food and garments,
while rigid packaging sector growth depends on FMCG products
like bottles for shampoo, talcum powder etc.

Automotive sector, both four and two-wheeler segments, consumes
PP for bumper, dashboard, front panel, mudguard, mirror housing,
battery casing applications. Major applications of PP in durable
sector are in washing machines, refrigerators, mixer grinders etc.
With the thrust on infrastructure development, booming

Combined global demand for PE, PP and PVC was estimated at 148
million tonnes during 2007, growing at 5.5%. This growth was
mainly driven by LLDPE (6.0%), PP (5.8%) and HDPE (5.6%).
Developing countries such as China and India have contributed
significantly to global demand growth.

PP, HDPE and LLDPE would continue to lead demand growth for
polymers in the future. Overall demand growth is expected to be
around 5.3 %, marginally behind the capacity growth of 5.4 %
during the same period.

Aggregate consumption of PE, PP and PVC in India crossed 5
million tonnes in 2007-08, registering an impressive growth of
15%. This was achieved despite a high price environment with
product pricing in some cases on a 15-year high. The demand
growth is attributed mainly to demand in packaging, injection
molded components (used in the automotive and appliances sectors),
pipes used in agriculture and infrastructure development, flexible
packaging as well as bulk packaging. Demand is expected to remain
firm in the near term.

Customer services

With the rapid growth in the domestic market, Reliance is
aggressively enhancing its reach by expanding the marketing and
distribution network.

In order to improve service levels and make the process of doing
business with Reliance an efficient process, state-of-the-art IT
systems have been put in place which allow customers access to the
company on a 24X7 basis.

Reliance has over 10,000 customers ranging from very large units
to very small plastic converting companies that sources only a few
bags of materials at a time. All these different customer segments
are serviced through a large network of agents and dealers spread
across the country.

Rishta - A 3600 Partnership with Customers

During the year, Polymer Business substantially enhanced customer
engagement through a series of CRM initiatives. A total of 176 of
such events, under the brand “Rishta”, were conducted in over 75
cities and all metros. These events focus on new areas of usage of
polymers in agriculture, in building and construction, automotive,
appliance etc.

Innovation in materials

Reliance has developed four new grades of PP in its pilot plant. A
total of 5 new grades were commercialised and taken to market
place during the year. Special grades of PP were developed that

consumerism and increase in organized retail, growth in
polypropylene is expected to continue.

Use of PP in non-woven is emerging as an exciting of area of
growth in India. A large number of non-woven lines were
commissioned this year.

With the new 900 KT PP capacity expected to come on stream
through RPL, the Company’s aggregate capacity will increase to
2.7 million tonnes. This expansion will take Reliance from currently
being the 7th largest producer of PP to 3rd largest producer globally.

As a part of its continuing growth strategy, Reliance has moved
rapidly to make the most of existing global opportunity. This has
been done by identifying and developing new applications, import
substitution through introduction of new grades and a constant
replacement of conventional materials to increase consumption
in the domestic market. The Company has also successfully exported
products in newer niche markets, realizing better margins.

Polyethylene business (PE):

Polyethylene continues to be the largest consumed commodity
plastic. Global capacity was 78 million tonnes and consumption
crossed 68 million tonnes in 2007, registering a growth of 5.1%.
The operating rates were high at 87%. North East Asia and Middle
East leads the demand growth, higher than the aggregate demand.

Capacity addition

Middle East is adding bulk of the new capacities followed by capacity
additions in North East & South East Asia. These capacity additions
are driven by cost competitiveness in the Middle East and high
demand in North East Asia.

Nearly 47% of new PE capacities over next five years are coming
up in the Middle East region primarily driven by the availability of
cheap feedstock.

Globally, LLDPE continues to have the highest consumption growth
of around 6% on account of growth in the flexible packaging
sector. Injection/ roto molding and wires & cables are expected to
grow more than sector average. Usage pattern is dominated by
films which was 75% of LLDPE in 2007 and expected to remain
the same in 2012 as well.

PE prices were strong and reached their peak levels in 2007. In the
markets of South East Asia, which set the benchmark prices for the
Indian domestic market, HDPE prices were firm and registered a
10% increase; LLDPE registered a 12% growth; whereas LDPE
registered a 20% growth.

RELIANCE INDUSTRIES LIMITED 25

In India, the PE demand grew by 17% during FY 2007-08. Demand
was driven by a robust growth in HDPE as well as LLDPE. HDPE
growth was led by high growth in HD/HM pipe and injection molding
sectors. LLDPE growth has been driven primarily by flexible
packaging.

In India, demand for PE is expected to remain robust on the basis
of growth in agriculture sector, water conservation and organized
retailing. Prices may, however, be affected due to large capacity
additions/expansion expected in the region.

Reliance is focusing on high growth sectors like Metallocenes and
HM Film. Reviving the specialty polymer manufacturing capability
of Ethyl Vinyl Acetate (EVA)/ Ultra High Molecular Weight
Polyethylene (UHMW-PE) is expected to provide an added
advantage in capturing demand for EVA in India and in developing
high performance application areas of UHMW-PE.

Reliance received PE 100 certification for its PE pipe grade Relene
46GP003, manufactured at Dahej, from M/s Bodycote, Sweden.
With this certification Reliance has joined a select group of only
11 manufacturers out of 440 present globally, whose PE pipe grades
are certified for use in high pressure applications which can withstand
10 MPA of stress for 50 years, @ 20o C (without KNEE). This is a
rare achievement with RIL being the only Indian and seventh
Asian producer to get this most coveted certification for this very
critical application. Reliance would leverage this certification
coupled with its in-house capability to produce PE Pipes to create
a differentiated platform for our PE pipe brands.

Pipes made out of PE 100 grades have outstanding pressure and
abrasion resistance, superior stress crack resistance and provide a
higher margin of safety. These pipes find extensive use in
applications for gas distribution, water distribution and effluent
disposal.

Poly Vinyl Chloride business (PVC):

Global PVC demand grew in excess of 5% in 2007 to around 35.3
million tonnes. China, with a 10 million tonnes demand in 2007 is
the single largest market for PVC both in terms of volume and
growth rate.

North America accounts for around 23% of global GDP demand. A
slowdown in US GDP could have some impact on demand. However,
housing slowdown in the US could have limited impact on global
PVC demand since growth in building, construction and
infrastructural development in the developing world would
compensate for this slowdown.

Global PVC capacity is expected to reach 50 million tonnes from
the current 42 million tonnes over the next 5 years. In 2007, 2.3
million tonnes of capacity was added. Of this China alone added
2.1 million tonnes of new capacity based on Carbide process. PVC
capacity in China in 2007 was 12.5 million tonnes and is expected
to reach 17.5 million tonnes in 2012. More than 85% of this
incremental 5 million tonnes would be carbide based.

PVC consumption in India was 1.4 million tonnes in 2007-08, a
growth of 12% over the previous year. Pipes and fittings continued
to be the major sector accounting for 70% of domestic PVC demand.

PVC is a major product for infrastructure sector. Pipes for
transportation of water for irrigation, drinking water, various
sewerage applications, profiles for building industry, wire and cable

Touching lives. Transforming India.

require PVC as raw material. This has resulted in PVC demand
mimicking growth of infrastructure sector in a significant way.

With increasing emphasis and higher budgetary outlays on
infrastructure and housing, health and hygiene, PVC consumption
is expected to grow in the coming years. Due to stagnant domestic
capacity and increasing domestic demand, Reliance imported and
augmented its supply.

Cracker Products, Aromatics and Chemicals

During the year, Reliance produced 1,891 KT of ethylene and 748
KT of propylene, an increase of 7% for both over the previous
year.

Butadiene production during the year was at 175 KT representing
an 11% increase over the previous year. Butadiene demand grew by
3% globally. Supply and demand were balanced and the operating
rates reached 85% and prices witnessed high fluctuations due to
short term production disturbances.

Capacity additions in North East Asia during the first quarter resulted
in over-supply which put pressure on prices. Margins were under
pressure also due to high feedstock prices. However, supplies became
tight from the second quarter and prices stayed firm. The increasing
price trend continued till the end of the year with strong demand
from major downstream sectors.

During the year, the Company produced 75 KT of Poly Butadiene
Rubber (PBR), an increase of 4% over the previous year. Global
demand for PBR has increased strongly and with limited new capacity
additions, the supply situation remains tight and is expected to
remain so during 2008-09.

Additionally, under technical know-how from Indian Space Research
Organisation (ISRO), Reliance produces Hydroxy Terminated Poly
Butadiene (HTPB) - a high speciality chemical that is used as a
binder for the solid propellants in satellite launch vehicles. During
the year, Reliance produced 15 tonnes of HTPB. With a capacity
of 50 tonnes, Reliance is one of the leading HTPB suppliers to
ISRO.

Reliance’s benzene production at 650 KT during the year makes it
a leading producer in Asia. It has maintained market leadership in
India and has emerged as the supplier of choice for all consumers.
The Company exported around 385 KT of Benzene this year
across different geographies. It focused on the deficit areas like the
USA, Europe and the Middle East.

Reliance produced 111 KT of toluene during the year, representing
a 15 % increase over the previous year. Reliance maintained
leadership position in the domestic market with a market share of
45%.

Reliance continues to be a leading producer of Linear Alkyl Benzene
(LAB) and Normal Paraffin in the country. LAB production for
the year was at 173 KT. Consumption of LAB in India has been
growing at CAGR of 5.3% since 2000. With a capacity of 180 KT,
Reliance is the world’s sixth largest producer of LAB and has a
25% market share in India.

Polyester (PFY, PSF, PET)

Market leadership and innovation

Reliance has achieved market leadership through innovation in
products, processes and cost competitiveness. This was achieved
with the help of the combined efforts in the field of product
innovation, cost competitiveness and efficient utilisation of its
assets.

Innovation at Reliance goes beyond product and process innovation
and encompasses the entire organization. Among the employees,
60 “Innovation Stars” have been selected and trained to enhance
and channelise innovation mindset. The aim is to encourage
disruptive thinking and produce innovative solutions.

Innovation is helping Reliance take Polyester beyond traditional
textiles. The recently developed “tear-resistant” paper is expected
to revolutionize the paper industry in the near future.

Green Polyester

In an effort to help conserve water resources, Reliance has
introduced “Swarang”, which is an inherently dyed polyester thus
avoiding polluting effluent.

The Company has also taken major steps to recycle used polyester
bottles thus reducing land fill concerns. More than 25% of used
polyester bottles in the country are collected and used for producing
“Green Polyesters”.

Reliance also launched “Recron Rainbow”, multi-coloured filament
polyester with novel dyeing effects. This will help the downstream
textile industry in introducing fashion garments.

Reliance is also working on food preservation polyester solution
to enhance life of fruits and vegetables. This is expected to be
launched in the current financial year.

Health care solutions

Reliance is emphasizing on health care polyester solutions for
providing cost-effective products. These are anti-microbial
polyester products which are widely used in bed sheets, gloves and
active wear. It is also developing clean care solutions which will be
widely used in clinics and hospitals.

Market environment - rising share of Polyester

Historically, cotton was the dominant fibre for mass consumption
for centuries but in the late 1980s, man-made fibres including
polyester started becoming the preferred fibre in the textile industry.
As against a 3% growth of all fibres, polyester filament yarn is
growing at double the rate of all fibres while polyester staple fibre
is growing at more than 4%. Such high growth rates are expected to
help polyester staple fibre to overtake cotton consumption by
2020 and polyester filament yarn will become the largest segment
by 2015.

Reliance is the world’s largest polyester manufacturer and
is well placed to capture the global demand growth.

Global scenario

The demand for textile polyester increased to 30.4 million tonnes
at the end of 2007, an increase of 7.5% over the previous year. Of
the total polyester demand, Polyester Filament Yarn (PFY)

accounted for 18.4 million tonnes, registering an increase of 8%
over the previous year. Polyester Staple Fibre (PSF) demand stood
at 12 million tonnes, an increase of 6% over the previous year.
Global polyester capacity addition during 2007 was 3.3 million
tonnes, of which 2.2 million tonnes was commissioned in China.

In the current global scenario, polyester consumption growth is
being driven by Asia in general and China and India in particular.

Emergence of new applications, changing lifestyle and rising
affluence remain supportive of growth in polyester consumption.
Key applications that are growing are non-apparels, technical
textiles, and non-woven as well as polyester resin usage in packaged
food and beverages. Technical textiles are growing at around twice
the rate of textiles for clothing applications and now account for
more than half of the total textile production globally.

Global PET resin capacity in 2007 was around 17 million tonnes,
an increase of 10% over the previous year. However, global demand
is around 13 million tonnes, an increase of 8% over the previous
year. Asian PET capacity in 2007 was 7.6 million tonnes, increase
of 4% over previous year. Asian demand during the same time
stood at 3.7 million tonnes, an increase of 9% over the previous
year.

Polyester margin environment

Cotton, the second largest fibre in demand, is witnessing a firm
trend in prices. Falling stocks accompanied by declining acreage
has increased prices of cotton by more than 26% in the previous
year. Global quest for bio-fuels is impacting the agriculture
economies world-wide. In February 2008, cotton futures for May
2009 went up to as high as 97 cents per pound ($ 2,138/ tonne)
showing signs of firm undertone. This is one of the highest levels
in the last decade.

The United States, the world’s third largest cotton producer, has
seen a 28% fall in acreage under cotton production for current
season (2007-08) and is likely to see a further drop in the years to
come. Most of the farmers have shifted to planting of corn and
soyabean, due to robust demand from the bio-fuel industry.

Due to rapid additions in polyester capacity in China, there has
been over-supply since 2000. Low margins in the last few years
have reduced incremental growth in polyester capacities in countries
like China. From an incremental capacity of 2 million tonnes over
incremental demand in 2004, currently incremental demand is
more than the annual new capacity creation.

RELIANCE INDUSTRIES LIMITED 27

at 16 Kgs and the US at 38 Kgs, India is still at less than 5 Kgs and
Africa is at less than 4 Kgs. These regions contribute to nearly half
of the world’s population and are witnessing increase in disposable
income with overall economic prosperity. Historically it is seen
that rising per capita income and industrialisation increase textile
consumption for both apparel and non-apparel applications. Due
to inherent constraints in growth of cotton, polyester is likely to
capture the maximum share of future growth.

Steadily rising prices of crude and naphtha through the year
impacted polyester margins worldwide. Delays in commissioning
of PTA and MEG plants in the year 2007-08 have increased cost
of polyester production globally. The year 2007 witnessed some
unexpected shutdowns in MEG capacities in the Middle East,
resulting in a sharp rise in feedstock prices to as high as $ 1,700 per
tonne. Easing of supply constraints of feedstock in 2008-09 is
expected to bring down pressure on polyester margins.

Consolidating leadership

Reliance, with annual capacity of two million tonnes, is uniquely
positioned as compared to stand-alone producers due to fully
integrated operations.

During 2007, Reliance consolidated its position in the global
polyester industry with acquisition of certain polyester (capacity)
assets of Hualon Corporation in Malaysia, through its subsidiary
Recron Malaysia. This is the second overseas acquisition for
Reliance after Trevira in Europe. It is a leading polyester producer
in Malaysia with a capacity of half a million tonnes per annum,
along with downstream textile manufacturing capabilities spread
over two locations in Malaysia, namely Nilai and Malacca.

This acquisition will help Reliance to consolidate its position further
as the world’s largest polyester manufacturer with a 2.5 million
tonnes capacity. With this acquisition, Reliance’s global market
share in polyester fibre and yarn will exceed 7%.

The domestic scenario

Currency appreciation has been of major concern for textile
exporters in India. Last year, the Indian Rupee has appreciated
against US dollar by 7.7%. Textile exports being a highly competitive
business, is adversely affected by an appreciating rupee.

The Indian Government reduced the import duty on polyester
from 10% to 7.5% and again to 5% mid year in November 2007.
The Government, in an effort to give a fillip to investments in
downstream textile industry has extended Textile Up-gradation
Fund in the 11th Five Year Plan. Benefits of this fund have been
extended to technical textiles, which is an under-penetrated segment
for industrial and household polyester applications.

With a growing presence in domestic textile growth segments like
non-woven, industrial and automotive yarns, Reliance is well
positioned to increase its polyester market share over other Indian
manufacturers.

Domestic demand

(Source : PCI)
Polyester consumption is growing faster than that of any other
fibre. There are large pockets of population that have low
consumption like the Indian sub-continent and Africa. While the
global per capita demand for all fibres stands at 11 Kgs, with China

Polyester witnessed exciting demand growth in the domestic market
at 17% over the previous year. POY demand grew by 18% whereas
PSF demand grew by 12%. The increased demand for polyester was
driven by robust investments in textile sector and PET consuming
industries during the previous year.

Touching lives. Transforming India.

Indian PET bottle resin market grew by 26% and is expected to
sustain the growth rate due to a wider scope of increased penetration
in carbonated soft drink, mineral water, fruit juice, healthcare and
agro-chemicals segments. Reliance, with a share of 55% in PET
market, is the largest player in the country.

and unexpected shutdowns of some capacities in the Middle East.
This resulted in an unprecedented rise in the prices of MEG in the
global market. The prices touched a peak of $ 1,700 per tonne
during the year. Margin for MEG is expected to continue to remain
firm in the near term.

Production volumes of the Polyester (PFY, PSF and PET) including
Trevira and Recron Malaysia, increased by 16.6% to 1,910 KT.
Production from the new domestic polyester facility has been
placed successfully in the market. The Company has maintained
its focus on specialty products which account for 54% and 38% of
PSF and PFY production respectively. Reliance’s domestic market
share is now in excess of 49%.

Reliance’s polyester intermediates (PX, PTA and MEG) production
grew by 9% to 4,714 KT during the year. The production increase
is attributed to the new 730 KT PTA plant at Hazira which was
commissioned in FY 2006-07, partially offset by planned shutdown
of its Paraxylene unit at Jamnagar in 3Q FY 2007-08. The
Company’s domestic market share in polyester intermediates stood
at 76%.

Polyester Production in KT

Fibre Intermediates Production in KT

Product

FY 2006-07

FY 2007-08

Product

FY 2006-07

FY 2007-08

PFY

PSF

PET

Total

663

718

257

1,638

840

765

305

1,910

PTA

MEG

Total

1,779

1,777

781

4,337

1,878

2,035

801

4,714

Fibre Intermediates (PX, PTA, MEG)

In the last few years, petrochemical industry has been affected by
high crude prices. Due to rapid growth of investments in PTA
capacity in China, there has also been a mismatch in PX-PTA
demand supply. Consequently, China is expected to remain a net
importer of PX over the next few years. Current global PX capacity
is 29.7 million tonnes, an increase of 4% over the previous year.

Over the next few years, about 5 million tonnes of PX capacity is
expected to be added globally. Reliance, the world’s 4th largest
producer of PX, has announced a capacity expansion of 2.6 million
tonnes at Jamnagar. This expansion is in line with Reliance’s strategy
of retaining integration across the petrochemical chain. It will
also provide Reliance the added flexibility of integrating the PX
business with its refinery business in situations of fluctuating gasoline
demand and/or margins.

Global PTA capacity during 2007 was 43.4 million tonnes, an
increase of 13% over the previous year. PTA demand during 2007
was 37.7 million tonnes which was an increase of 10.5% over
previous year. PTA supplies during the year were constrained by
low availability of PX. To meet the growth in polyester production,
3 million tonnes of incremental PTA is required annually. Most of
the new PTA plants are being commissioned in China. However,
China is expected to continue to import 5-6 million tonnes of
PTA annually over the next two years.

Following on from the new 700 KT capacity plant at Hazira,
Reliance is the world’s 4th largest producer of PTA. This new
generation plant is amongst the most cost effective facilities in
the world. It has incorporated new processes and equipment like
High Pressure Catalytic Converting Unit (HPCCU), a water
recovery system that makes the plant environment friendly.

Global capacity of MEG during 2007 was 21.4 million tonnes, an
increase of 6% over the previous year. MEG demand during 2007
was 18.4 million tonnes, an increase of 8%. The availability of
MEG was impacted by supply constraints. MEG supplies during the
year were affected due to delays in commissioning of new projects

Integration with the refinery coupled with high-quality
manufacturing assets and a customer-centric organisation has helped
the Company position its intermediates business as the most
preferred supplier of PTA and MEG in the key markets.

Textiles

Reliance’s Manufacturing Division at Naroda, Ahmedabad is one of
the largest and most modern textile complexes in the world. The
Company’s flagship brand VIMAL is one of the most trusted brands
of premium textiles in the country. Main growth drivers for VIMAL
are retail presence across India, innovation and focus on premium
products and men’s formal wear.

The Company also plans to sharpen its focus on global automotive
furnishing business. Aligned to this objective, the company has
taken various steps to position its business globally:

Increasing the domestic retail presence, by opening 23
additional Company outlets, and increasing the number of
retail counters to 500 and promoting the products and services
through Reliance Retail.

Apart from being a major supplier of fabrics with all the
leading US and European brands, Reliance proposes to enter
into garment supplies, ensuring a one point solution for their
needs.

The textile division has achieved a major breakthrough in the
domestic and American automotive markets aimed at obtaining
a foothold in the world’s auto-textile segment, currently worth
$ 5 billion.

The manufacturing facility at Naroda, Ahmedabad has
completed its modernization and upgradation.

New product initiatives

Copol & Copol blended fabrics.

Polyester / Wool / Bamboo blended fabrics with inherent anti-
microbial, anti-odor and UV protection properties.

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RELIANCE INDUSTRIES LIMITED 29

(cid:127) Wool / Soya blended fabrics with having similar moisture

absorption capabilities as cotton.

Durable moisture management in 100% polyester sports wear
fabrics.

Fire-retardant and water proof tent fabric, providing additional
safety from fire hazards.

(cid:127) Water and oil repellant fabrics made from eco friendly recycled

polyester.

Opportunities

Reliance is in the energy business with interests in the entire value
chain of exploration, production, refining, marketing,
petrochemicals, textiles and infrastructure development. The
Company’s financial strength, superior project execution
capabilities and strong leadership skills is uniquely poised to
effectively avail of all opportunities and create new ones going
forward.

With the ever increasing demand for oil and petroleum products
the Company’s foray into the exploration and production arena
will contribute significantly to value creation. The Company is
committed to allocate resources towards the E&P business segment.
In addition to the development of KG-D6, the company will continue
its ongoing efforts of exploration and development of various
blocks. The production of gas from this block will catapult Reliance
to becoming the single largest gas producer in the country with
more than 50% market share. The Company expects this business
segment to deliver sustainable long term returns.

With growing demand for transportation fuels, changing
environment norms and slow pace of new capacity additions
worldwide, the refining segment of the Company continues to
throw exciting opportunities. Reliance’s existing refinery at
Jamnagar is one of the few complex refineries in the world, with
Nelson Complexity Index of 11.3. With high oil price environment
and stretched refining system, the Company is expected to benefit.
The significant progress has been made in the construction of new
RPL refinery and is expected to be completed before December
2008. This new refinery once commissioned will nearly double
refining capacity. The Company would also be focusing on tapping
the trade opportunities that would arise with the ongoing scenario
of slow growth in capacities worldwide due to an ongoing thrust on
the modernization and up-gradation of existing refineries.

In the petrochemicals space, the Company would continue to
maintain its leadership positions through capacity additions and
investing in value added products. In line with its growth strategy,
Reliance has announced the setting up of an integrated cracker and
petrochemical complex of global scale, with a capacity of 2 MMTPA
in the Special Economic Zone in Jamnagar.

Challenges, Risks and Concerns

Reliance’s efforts are focused more on two projects, viz. the
development of the KG-D6 block and the implementation of the
new refinery at Jamnagar, through its subsidiary, RPL.

The upcoming new refinery poses the challenge of completion of
the same on schedule by December 2008. The Company is confident
of achieving this target. This project is assisted by the project
implementation partners, Bechtel, with their significant experience
in implementing world scale projects.

The development of KG-D6 block is more complex than many
other deep water projects due to the met-oceanic conditions, an
uneven terrain for sub-sea activities, strong sub-sea currents and a
very tight supply chain market.

The performance of this block is subject to a number of risks
common to the E&P industry, which include geological conditions
being more complex than originally predicted, stratigraphic
compartmentalization, water encroachment or water breakthrough,
permeability issues, inadequate pressure support, poor or inadequate
well spacing and operating efficiencies of various facilities.

Currently, the project is progressing well towards meeting the target
installation and commissioning dates.

Reliance’s exports, which constitute about 60% of its turnover,
are earned in foreign currency, primarily the US dollar. In addition,
earnings in local currency are also based upon import parity prices.
As part of the fund raising efforts, the Company is likely to continue
to tap the global financial markets. Thus, the Company’s business
is exposed to foreign exchange fluctuations and interest rate risk.

Internal Controls

The Company maintains a system of internal controls designed to
provide a high degree of assurance regarding the effectiveness and
efficiency of operations, the adequacy of safeguards for assets, the
reliability of financial controls, and compliance with applicable
laws and regulations.

The organization is well structured and the policy guidelines are
well documented with pre-defined authority. The Company has
also implemented suitable controls to ensure that all resources are
utilized optimally, financial transactions are reported with the
accuracy and there is strict compliance with all applicable laws and
regulations.

The Company has put in place sufficient systems to ensure that
assets are safeguarded against loss from unauthorized use of
disposition and that transactions are authorized, recorded and
reported. The Company also has an exhaustive budgetary control
system to monitor all expenditures against approved budgets on an
ongoing basis.

Recognizing the important role of internal scrutiny, the Company
has an internal audit function which is empowered to examine the
adequacy and the compliance with policies, plans and statutory
requirements. It is also responsible for assessing and improving the
effectiveness of risk management, control and governance process.
Continuous audit and verification of the systems enables the various
business groups to plug any shortcomings sooner rather than later.
It also evaluates the Company’s strategic risk management system
and suggests risk mitigation measures for all key operations. In
addition, the top management and the Audit committee of the
Board review the findings and recommendations.

Major Subsidiaries

Reliance Petroleum Limited

Reliance Petroleum Limited (RPL) has marched ahead at a blistering
pace during the year in implementation of its global sized complex
refinery, being built at Jamnagar in Gujarat State on the west coast
of India.

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30

Touching lives. Transforming India.

RPL was set up with the objective of creating value for shareholders
by harnessing the emerging opportunities in the global energy
sector, arising out of several years of under investment in refining
capacity. RPL is setting up a greenfield petroleum refinery capable
of processing 580,000 barrels of crude oil per stream day (BPSD).
It will also produce 0.9 million tonnes polypropylene per annum
and will be located in the Special Economic Zone at Jamnagar. On
completion, the RPL refinery will be the sixth largest in the world
with a Nelson Complexity Index of 14, which is amongst the
highest in the sector globally.

been installed and are at various stages of completion and testing
at site. Over 95% of structural steel fabrication work, 74% of
structural erection and 94% of underground piping works are
complete now. Substantial progress is achieved in the areas of
above-ground pipe fabrication and erection as well. The
construction activities are at peak and RPL is fully geared to sustain
construction on fast track in the coming quarters. Simultaneously,
RPL has made considerable progress on the start-up planning and
operations preparedness activities to support an early
commissioning of the refinery.

RPL is a 70.38% owned subsidiary of RIL. RPL also benefits from
its strategic alliance with Chevron Corporation USA, a global super
major in the energy sector, through its subsidiary Chevron India
Holding Pte Limited, Singapore.

Overview of the implementation progress

There has been significant traction at the RPL project with 90%
progress in implementation of its complex refinery. RPL has
mobilised sufficient site infrastructure to sustain construction on
fast track in the coming quarters. RPL expects to complete the
refinery ahead of schedule.

During the year, RPL surpassed several significant milestones,
including completion of engineering works, procurement and
contracting activities, near completion of equipment deliveries
and rapid progress on equipment installations at site. The significant
milestones achieved during the past few months include the
following:

Overall procurement progress at 99%; activity in the close-
out mode already.

Deliveries and installation of over dimensional cargos (ODC)
and super ODCs completed.

Overall construction progress nearing 80% mark for the
complex.

Start-up planning and operations preparedness activities gained
significant momentum.

The year witnessed successful completion of project engineering
activities with only residual engineering activities continuing to
support ongoing construction at site. RPL has achieved rapid
progress on the procurement front as well. Procurement and
contracting activities for all required equipments and bulk materials
have been completed. Deliveries of key equipments and their
installations gained significant momentum. RPL has received 5,350
equipments, including several over dimensional cargos (ODCs) and
super heavy equipments from vendors across the world. With this,
93% of equipments are already at site. Deliveries of bulk materials,
including pipes, fittings as well as electrical and instrumentation
bulks matched the pace of equipment deliveries and their installation
at site. With near completion of deliveries of equipments and bulk
materials, focus has shifted towards achieving a close-out and vendor
follow-up for residual deliveries.

The civil construction is nearly complete with nearly 2.0 million
cubic meters of concreting works done at site. Over 4,000
equipments, including several super heavy equipments, have already

Reliance Retail Limited (RRL)

With a vision to generate inclusive growth and prosperity for
farmers, vendor partners, small shopkeepers and consumers,
Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to
lead Reliance Group’s foray into organized retail.

With a 27% share of world GDP, retail is a significant contributor
to overall economic activity across the world. Of this, organized
retailing contributes between 20% to 55% in various developing
markets. The Indian retail industry is pegged at $ 300 billion and
growing at over 13% per year. Of this, presently, organized retailing
is about 5%. This is expected to grow to 10% by 2011. RRL has
embarked upon an implementation plan to build state-of-the-art
retail infrastructure in India, which includes a multi-format store
strategy of opening neighbourhood convenience stores,
hypermarkets, specialty and wholesale stores across India.

RRL launched its first store in November 2006 through its
convenience store format ‘Reliance Fresh’. Since then RRL has
rapidly grown to operate 590 stores across 13 states at the end of
FY 2007-08. RRL launched its first ‘Reliance Digital’ store in
April 2007 and its first and India’s largest hypermarket ‘Reliance
Mart’ in Ahmedabad in August 2007. This year, RRL has also
launched its first few specialty stores for apparel (Reliance Trends),
footwear (Reliance Footprints), jewellery (Reliance Jewels), books,
music and other lifestyle products (Reliance Timeout), auto
accessories and service format (Reliance Autozone) and also an
initiative in the health and wellness business through ‘Reliance
Wellness’. In each of these store formats, RRL is offering a unique
set of products and services at a value price point that has not been
available so far to the Indian consumer. Overall, RRL is well
positioned to rapidly expand its existing network of 590 stores
which operate in 57 cities.

During the year, RRL also focused on building strong relationships
in the agri-business value chain and has commenced marketing
fruits, vegetables and staples that the company sources directly to
wholesalers and institutional customers. RRL provides its customers
with high quality produce that has better shelf life and more
consistent quality than was available earlier. RRL has made
significant progress in establishing state-of-the-art staples
processing centres and expects to make them operational by May
2008.

Through the year, RRL also expanded its supply chain infrastructure.
The Company is fully geared to meet the requirements of its rapidly
growing store network in an efficient manner.

Recognizing that strategic alliances are going to be a key driver to
its retail business, in FY 2007-08, RRL established key joint ventures
with international partners in apparel, optical and office products
businesses. Further, RRL will continue to seek synergistic

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opportunities with other international players as well. This year,
RRL will continue its focus on rapid expansion of the existing and
other new formats across India.

Special Economic Zones

The Government of India announced the Special Economic Zones
policy in the year 2000 and notified the Central SEZ Act 2005 and
SEZ Rules 2006 in February 2006 with a view to promote exports
and generate employment through economic development.
Reliance Industries Limited is developing SEZs, at Gurgaon and
Jhajjar in Haryana and at Jamnagar in Gujarat. Both the States
have a pragmatic approach towards business and were amongst the
first few States to legislate their respective SEZ Acts in line with
the national policy.

Haryana SEZ

Reliance Ventures Ltd. (RVL), a subsidiary of RIL, in a joint venture
(JV) with Haryana State Industrial Investment Development
Corporation (HSIIDC) is promoting Reliance Haryana SEZ Limited
(RHSEZ) to develop two SEZs in the State. RVL will hold 90% and
HSIIDC 10% in the JV.

The company has received formal approval from the Government
of India (GoI) in this regard and 1088 acres of land has been
notified as Multi Services SEZ at Gurgaon. This phase of
development is meant for the services sector such as IT/ITeS,
education, health care, media services and financial services.
The SEZ at Jhajjar will be developed as a Multi Product SEZ with
emphasis on the manufacturing industry.

The SEZs are well connected to all the national highways emanating
from Delhi. The rail link from Delhi to West India via Rewari /
Jaipur also passes through the site. The proposed SEZs will function
as an integrated package with all the required infrastructure facilities
to ensure sustainable development of medium and large scale
industries and service activities with sufficient provision for future
growth and expansion.

The project has been planned to enable inclusive growth of villages.
To achieve the above objectives, the company has already started
capacity building programs including health, education and technical
training. As part of its corporate commitment, Reliance has started
an Industrial Training Centre at Gurgaon. Reliance has also adopted
three ITIs under the public-private partnership scheme of the
Government of India.

Jamnagar SEZ

The approval for setting up an SEZ at Jamnagar (JSEZ) was received
in March 2006. The JSEZ is spread over approximately 11,000
acres. A total of over 4,000 acres of land has already been notified.

The first SEZ Unit, Reliance Petroleum Limited (RPL) got
approval in May 2006 to set up a crude petroleum refinery and
polypropylene plant.

A number of global chemical companies have evinced keen interest
in setting up units in JSEZ.

Infrastructure development at the site is in full swing. The railway
sidings for solid products are nearing completion. The captive
power plant and water desalination plant have started pre-
commissioning activities. The water treatment plant is already
commissioned.

JSEZ has a dedicated craft training centre where every month
approximately 200 unskilled workers are trained to be skilled,
semi-skilled, riggers, welders, pipe fitters, scaffolders, mill wright
mechanics and carpenters. Nearly 2,600 unskilled workers have
deftly engaged themselves in economic pursuits after this intensive
training.

Research and Development

With the implementation of various multi-pronged initiatives at
various R&D centers involving product, process and catalyst
development projects, the research activities at Reliance received
a major boost during the year. This effort was supplemented by
sponsored and outsourced collaborative research programs with
national and international institutes and labs to leverage expertise
across boundaries. This has resulted in creating new business
opportunities and intellectual capital rights, value enhancement,
cost reduction through various technology and knowledge platforms.

Some achievements of Reliance’s R&D are as under:

Petrochemicals

Synergistic PP clarifiers

Energy efficient process for a portfolio of Ultra High
Molecular Weight (UHMWPE) grades

Development of New Generation Paraffin Dehydro-
genation Catalyst (RPDC-10)

Commercialisation of New Generation Para Diethyl Benzene
(PDEB) Catalyst

Development of Catalysts for Hydrogenation of Acetylene in
HCl Stream

Development of Noble metal based Catalyst for PET plant

High Impact Polystyrene (HIPS) grade Polybutadiene Rubber
(PBR)

Process for Recovery of Benzene from PBR-I Waste Water
Stream

Scale-up Studies on Cyanide removal from Ammonium Sulfate
Stream of ACN plant by steam stripping

Adsorptive Process for the Recovery of Monomers

Optimization of Oxychlorination Reactor and Modeling of
Ethylene Dichloride (EDC) Cracker

Commercialisation of Bi-component Pilot Plant and four
specialty PFY

Recron Stretch

Recron Polylon (Incorporate properties of Nylon)

Recron Micrelle (Ultra microdenier)

Development of Low Abrasive Full Dull yarns for high speed
texturising

Development of Recron Rainbow, a mixed filament with novel
dyeing effects

Development of RELCOT for moisture management fabrics.

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Development of proprietary finish with special surface
coatings for polyester short-cut fibres for better dry dispersion
in concrete

The goal of the innovation movement is to make Reliance one of
the most innovative companies in the world with a corporate
culture that fosters innovation.

Development of self coloured polyester (Swarang)

Demonstration of Concept feasibility and product by process
for making eco-friendly and self coloured polyester
(“Swarang”) yarns for three colours

Nanotechnology has been a key enabler for breakthroughs in new
materials. PP-Nanoclay based composites have been validated for
automotive applications at several customer trials. Significant
improvement in properties has been demonstrated.

Another significant milestone is the development of PE100, a
high pressure Polyethylene (PE) pipe grade for transportation of
gas and water. Reliance will be the first company in India to get the
PE100 certification, which is expected to help in the growth of
the PE pipe industry. International accreditation is expected in
mid 2008.

Major Advancements have been achieved in RELDONOR® and
RELCATt® technology for high performance grades of PP in
extrusion, thermoforming, injection moulding for durables and
automobile sectors and packaging at Hazira.

In 2007-08, ten patents have been filed and seven patents have
been granted including one US patent. Reliance has also filed 14
patents this year relating to the polyester business.

Reliance has undertaken collaborative research programs with
reputed research institutes achieving good progress in various
initiatives.

Refining and Marketing

Development of improved FCC catalyst and additive: Both
the new catalyst and additives were tested in the riser pilot
plant and were found to provide about 0.5 % increase in
propylene yield

Development of Anode/Needle coke from FCC CSO

Increase in propylene yield of FCC-1 plant

Quality check up of fresh FCC catalyst

Cracking of Naphtha and lighter feedstock in FCC riser bottom

There are a number of agreements with industries / institutes for
co-development of various catalysts and processes.

Reliance Innovation Leadership Centre (RIL-C) and RRTC

Reliance has announced an ambitious Innovation agenda with the
sole quest of propelling the company to the forefront of global
innovation leadership. The charter for this Agenda has been
defined as

Growth is Life

Innovation as a Way of Life

Innovation-led Growth

It is intended that innovation will become the language, the
behaviour definer, the culture and the soul of Reliance.

The innovation agenda entails setting up of the Reliance
Innovation Council, comprising global thought leaders under
chairmanship of Dr. R. A. Mashelkar, one of India’s foremost
scientist and a member of the Company’s Board. Besides Shri.
Mukesh D. Ambani, CMD, RIL, the council membership comprises
Prof C.K. Prahlad, Global Strategy Guru, Prof. George Whitesides,
Harvard University, Prof. Jean-Marie Lehn, Nobel Laureate, Prof
Robert Grubbs, Nobel Laureate and Dr. Larry Summers, Ex President,
Harvard University. The council will be supported by Reliance
Innovation Leadership Center (RIL-C), Pune.

The RIL-C has been created with an important mandate of driving
the Reliance Innovation Agenda. It will act as a catalyst in providing
leadership and support to the business of Reliance by harnessing
cutting-edge, futuristic but practical, science, technology and
innovation initiatives from both within and outside the
organization.

The Reliance Research and Technology Centre (RRTC) is set to be
created with a floor space of more than half a million square feet in
the central district of Navi Mumbai. The RRTC will act as a hub for
the research centers already operating at various manufacturing
locations. Reliance intends to create world class physical and
intellectual infrastructure in RRTC, with some of the best globally
available scientists bolstering its innovation agenda.

Six Sigma

During the year, Reliance completed 27 Six Sigma projects, leading
to financial benefits worth Rs.25 crore per annum.

Presently, 446 Six Sigma improvement projects are being executed
across 14 manufacturing divisions, including 40 Lean Six Sigma
projects. The Company has 582 Black and Green Belts in Six
Sigma projects at its manufacturing locations and offices. Nearly
2,200 team members and supervisory personnel are providing active
support for the success of the projects.

Human Resource Development

One of the “Key” reasons for the exponential growth of Reliance
is undoubtedly its “People”. Given the right environment and
nurturing that is provided, time and time again seemingly
“Ordinary” people surprise the company as they deliver
“Extraordinary” results. This has indeed been the cornerstone of
Reliance’s resounding success. While continuing to harness the
limitless potential and capability of the Human Mind, Spirit and
Energy, the Company constantly endeavours to provide a platform
for individual opportunities and growth of its people across diverse
businesses, manufacturing sites and services in multiple locations.

Reliance with its subsidiaries continues to build its workforce which
today is in excess of 48,000 strong with a diverse background of
individuals - essential for the kind of organisation that Reliance is.
The employees today, include amongst others - more than 200
Doctorates, 10,000 plus Engineers, 3,000 plus Management
Graduates, 1,000 plus Accountants and over 1,000 other
professionals. There is an appropriate blend of Youth and
Experience with approx 50% of the workforce below 40 years of
age. The average age of around 34 years continues to move

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downwards in alignment with the company ethos of providing and
entrusting responsibilities at a young age. This strategy has stood
Reliance in good stead and provided the company with that cutting
edge competitive advantage which is extremely difficult for anyone
to replicate.

The year 2007-08 has been another landmark year of significant
success with Reliance’s ongoing initiatives, and as has been the
story over the years, the launch of several new initiatives. Some of
these are shared below:

Learning and Development

The accelerated learning programme “Dronacharya”,
launched in the previous year at Jamnagar manufacturing
division. Under the programme, a senior person called
“Dronacharya” takes under his tutelage 2-3 youngsters -
“Arjunas” - and trains them ready to manage independent
positions in 3-6 months. This programme has had
resounding success with over 1500 “Arjunas” being trained.
With the resounding success of this programme, this is now
being rolled out to other manufacturing divisions.

Training, which has now become a way of life, saw a total
of 160,253 man days - a significant increase over the
previous year. The focus has been on “In-House Home
grown programmes” [Developing Accountants, Engineers
etc], Competency Development Programmes and Soft Skills
Learning. Further 360 programmes specifically for
infrastructure projects were conducted.

The Company endeavours to work with leading engineering
and management institutes. In addition to the MPRE
[Management Programme for Reliance Engineers] with IIM-
Bangalore and a Reliance Certified Engineering Course with
IIT-Mumbai for its Science graduates, Reliance has now put
together a Reliance Instrumentation Engineering
Programme for Science Graduates with Sardar Vallabhbhai
National Institute of Technology (SVNIT), Surat - a three
year programme where the first batch is of 50 students.
This would take care of the Company’s large requirement
of Instrumentation Engineers on an ongoing basis.

(cid:127) On the management education front, two new programmes
were launched - MDP’s [Management Development
Programme] - Level 1 and Level 2 with IIM-Bangalore.
These are again customized programmes targeted at
Reliance’s high growth managers. During the year, more
than 180 such managers went through such 2-3 weeks campus
programmes.

Building the Talent Pipeline

The Company has hired over 1,500 engineering talents to
take care of its growth and other initiatives.

(cid:127) Reliance sourced, got on board and trained over 1,700

employees at Jamnagar.

To take care of Company’s business requirements, a new
BMT [Business Management Trainee] Scheme was
introduced. This will be an on-going annual initiative.

(cid:127) Reliance has also had a successful foray into the IIMs with
over 30 employees being hired over the last 2 years. This

has now become an annual programme for attracting talent
for its various businesses.

Towards a “Best in Class Employer”

In line with the company’s growth trajectory, Reliance is
extensively focused on building start-of-the art processes
and systems which will make it comparable with the “Best
in Class Employers” globally. Towards this end, the
Company engaged M/s. Hewitt Associates, a globally reputed
consulting organization with significant experience in
dealing with “Best Employers Programmes” to work with
the management in rolling out a major Company-wide
initiative. This would be focused around areas of
Performance Management, Reward and Recognition, Career
Opportunities, Learning and Development, Policies
amongst others. The main objective being to take a re-
look at the existing processes and benchmark with the best
in each area and work towards going beyond.

Other Initiatives

ESOS [Employee Stock Option Scheme] - One of the widest
programs of its kind in the Indian Corporate Sector, was
introduced in the previous year, covering under its ambit as
many as more than 14,000 employees. Keeping in view the
Organisation’s value and belief of creating “Owner
Managers”, this program has helped achieve that vision in
no uncertain terms with not just giving the people higher
order responsibilities but returns as well to go with it. Such
a wide spectrum, broad-based coverage of creating
“entrepreneurs” has rarely been seen in Corporate India.

Job Evaluation - Reliance engaged Hay group, a leading
global consulting firm in the area of Job Evaluation and
completed the “End-to-End” Job Evaluation exercise for
its petrochemicals business. The Company now plans to
roll this out to the rest of the organisation. This would help
the Company in building a platform for various initiatives
- organisation structuring, career planning, compensation
and benefits planning - to name a few.

Awards and Recognitions

Reliance has merited a series of awards and recognitions for
excellence for businesses and operations.

Shri Mukesh Ambani was awarded the Defence India Excellence
Award 2007. The Award is a salute to those who have made
the country proud.

Shri Mukesh Ambani was conferred the Indian of the Year
Award by NDTV. This is India’s most prestigious award for
outstanding contribution towards the betterment of the nation.
Shri Mukesh Ambani received the coveted award in the Business
Category.

Shri Mukesh Ambani was conferred the Outstanding Business
Leader of the Year Award by CNBC TV18.

Shri Mukesh Ambani was awarded the Business Leadership
Award 2007 by NDTV Profit.

Shri Mukesh Ambani was conferred the Leadership Award for
Global Vision by the United States India Business Council.

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Touching lives. Transforming India.

Shri Mukesh Ambani was elected to be a member of the
Honorary Fellows of The Institution of Chemical Engineers,
UK.

On invitation to Shri Mukesh Ambani, Reliance Industries
Limited became a Council Member of World Business Council
for Sustainable Development (WBCSD) in July 2007.
Presently, Shri Mukesh Ambani is the only Indian CEO who is
Council Member of WBCSD.

Dr. Ravi Bastia was conferred the “Padma Shri” in 2008 by
the Government of India for his contribution to earth sciences.

Corporate Ranking and Ratings:

Reliance featured in the Fortune Global 500 list of ‘World’s Largest
Corporations’ for the fourth consecutive year.

Ranked 269th in 2007 having moved up 73 places from the
previous year.

Featured as one of the world’s Top 200 companies in terms
of Profits.

Among the top 25 climbers for two years in a row.

Featured among top 50 companies with the biggest increase
in Revenues.

Ranked 26th within the refining industry.

Reliance is ranked 182nd in the FT Global 500 (up from previous
year’s 284th rank).

PetroFed, an apex hydrocarbon industry association, conferred
the PetroFed 2007 awards in the categories of “Refinery of
the Year” and “Exploration & Production - Company of
the Year”.

Brand Reliance was conferred the “Bronze Award” at The
Buzziest Brands Awards 2008, organized by agencyfaqs!

Institute of Economic Studies conferred the “Udyog Ratna”
award in October 2007 for contributions to the industry.

Chemtech Foundation conferred the “Hall of Fame” in
February 2008 for sterling contributions to the industry.

Chemtech Foundation conferred
the “Outstanding
Achievement - Oil Refining” for work at the Jamnagar
Manufacturing Division.

Petroleum Federation of India conferred the “Refinery of the
Year Award - 2007” to Jamnagar Manufacturing Division.

Exports

“The Plastics Export Promotion Council - PLEXCOUNCIL
Export Award” in the category of Plastic Polymers for the
year 2006-2007 was awarded to Reliance being the largest
exporter in this category.

Health, Safety and Environment

Jamnagar Manufacturing Division was conferred the “Golden
Peacock Award for Occupational Health & Safety - 2007” by
Institute of Directors.

Jamnagar Manufacturing Division was conferred the “ICC
Award for Water Resource Management in Chemical Industry”.

Jamnagar Manufacturing Division was conferred the “Good
House Keeping Award” from Baroda Productivity Council.

Jamnagar Manufacturing Division was conferred the
“BEL-IND” Award for the best scientific paper at the 58th
National Conference of Occupational Health.

Naroda Manufacturing Division was conferred the “Safety
Award and Certificate of Appreciation” presented by Gujarat
Safety Council & Directorate of Industrial Safety & Health,
Gujarat State for the recognition of safety performance at the
29th State Level Annual Safety Conference.

Dahej Manufacturing Division received “BSC 5-Star” rating
from British Safety Council, UK.

Dhenkanal Manufacturing Division received the “2nd Prize
for Longest Accident Free Period” from the Hon’ble Minister
of Labour, State of Orissa.

Hoshiarpur Manufacturing Division bagged the First Prize in
“Safety in Punjab”, organized by Punjab Safety Council.

Patalganga Manufacturing Division won the “Gold Medal at
CASHe (Change Agents for Safety, Health and Environment)
Conference”. It also won the III Prize in Process Management
category for Presentation on Safety through Design in
chemical process industry in Petrosafe 2007 Conference.

Kurkumbh Manufacturing Division won the “Greentech Safety
Award silver trophy” for outstanding achievement in safety
management in chemical sector.

Hazira Manufacturing Division received the “TERI Corporate
Environmental Award (Certificate of Appreciation)” for PET
recycling project.

Nagothane Manufacturing Division received the “Shrishti
G-Cube Award for Good Green Governance” from Minister for
Commerce and Industry, on World Earth Day.

Training and Development

Jamnagar Refinery was adjudged the winner of the “Golden
Peacock National Training Award -2007”.

Patalganga Manufacturing Division won the “ASTD (American
Society for Training & Development) Excellence in Practice
Award” for innovative practice titled Learning Function’s role
as Business partner: Empowering people with Knowledge to
achieve Business Goals.

Reliance won the CNBC TV-18 instituted “Jobstreet.com
Jobseekers’ Employer of Choice Award”.

Energy Excellence

Exploration & Production (E&P) Division won “The Infraline
Energy Excellence Awards 2007: Hydrocarbon Columbus Award
for Excellence in Petroleum Exploration”.

Patalganga Manufacturing Division won the First Prize in
“Energy Conservation in State of Maharashtra” organized by
Maharashtra Energy Development Agency (MEDA).

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Jamnagar Manufacturing Division won the “Oil & Gas
Conservation Award -2007” from the Centre for High
Technology, Ministry of Power & Natural Gas for the
excellent performance in reduction/elimination of steam leaks
in the plant.

Jamnagar Manufacturing Division was the recipient of the
“Infraline Energy Award-2007” by Ministry of Power.

Hazira Manufacturing Division won the Government of
India Energy Conservation Award (2007) conferred by the
Bureau of energy efficiency and Ministry of Power.

Hazira Manufacturing Division was adjudged “Excellent Energy
Efficient Unit” at Energy Summit - 2007 by CII.

Vadodara Manufacturing Division received the CII award for
“Excellence in Energy Management - 2007” as energy efficient
unit. This division also received the 2nd prize in “National
Energy Conservation Award - 2007” from Bureau of Energy
efficiency, Ministry of Power, Government of India.

The Company’s manufacturing divisions at Vadodara and
Hazira were honoured with CII-National award for excellence
in water management - 2007 as water efficient unit in “Within
the fence” category. Additionally, Hazira Manufacturing
Division was honoured as water efficient unit “Beyond the
Fence” category.

Quality

For the first time ever, globally, a petrochemical company
bagged the “Deming Prize for Management Quality”. “The
Quality Control Award for Operations Business Unit 2007”
was awarded to the Hazira Manufacturing Division for
Outstanding Performance by Practicing Total Quality
Management.

“QUALTECH PRIZE 2007”, which recognizes extraordinary
results in improvement and innovation, was won by Hazira
Manufacturing Division for its Small Group Activity Project.

Vadodara Manufacturing Division’s Polypropylene-IV
(PP-IV) plant was conferred the “Spheripol Process Operability
Award-2006” for the highest operability rate with an on stream
factor 98.97% by M/s. BASELL, Italy.

Allahabad Manufacturing Division won the “Excellent
Category Award” at National Convention of Quality Circle
(NCQC) - 07.

Six-Sigma

Lean Six sigma project on “Reducing retention time of caustic
soda lye tankers at Jamnagar” won the 1st prize in the national
level competition held by Indian Statistical Institute (ISI).

Patalganga Manufacturing Division’s Six Sigma Project on
Improve Transfer Efficiency for Automatic winders in PFY
won the 2nd Prize for “Best design for Six Sigma Project in
International Six Sigma Competition” organized by IQPC
(International Quality and Productivity center).

Barabanki Manufacturing Division won the 3rd prize in “All
India Six Sigma case study contest 2008” for the Case study
on “Reduction of waste of Plant 2 from 16% to 8%”.

Hoshiarpur Manufacturing Division won the 2nd prize in “Six
Sigma competition at National Level” organized by ISI and
Quality Council of India (in manufacturing category), while
Dhenkanal and Barabanki Manufacturing Divisions won the
3rd prize.

Vadodara Manufacturing Division’s Six Sigma project won the
1st prize as the “Best Six Sigma project” at National level
by CII.

Technology, R&D and Innovation

Vadodra Manufacturing Division’s R&D bagged an award from
Indian Institute of Chemical Engineers for Excellence in
Process / Product Development for the work on “Eco friendly
Process for Acetonitrile Recovery”.

“DSIR National Award for R&D Efforts in Industry (2007)”
was conferred on Hazira Manufacturing Division for the
Cyclehexane Recovery Project.

Patalganga Manufacturing Division’s Project titled
Augmentation of ETP and use of biogas in Fired heaters won
the “Best Innovative Project” from CII.

Reliance bagged the “Innovation Award at Tech Converge
2007” for innovative developments in short-cut fibres.

Hazira Manufacturing Division won the “Golden Peacock
Innovation Award - 2007” for its Cyclohexane Recovery
Process.

Information Technology

“CIO of the Year Award” for the best IT-enabled organization
in India for the Year 2007.

“Ones to Watch - CIO - USA Award”, for figuring among the
top 20 organizations fostering excellence in IT team.

“The Skoch Challenger Award” conferred for the best IT Head
(managing the most IT enabled organization) of the
Year 2007.

“Best IT Implementation Award”, by PC Quest for Knowledge
Management Systems portal (KMS).

“CIO Excellence Award” for Chemical Industry Information
Technology Forum for exemplary Information Technology
implementation amongst global chemical companies.

“CTO Forum Hall of Fame Award” for the best CIOs in India
for not only providing service to their organisations, but also
serving as idols.

Social Initiatives

Hazira Manufacturing Division won the “Golden Peacock
Global Award for Corporate Social Responsibility” - 2008.

Touching lives. Transforming India.

Report on Corporate Social Responsibility

Health, Safety and Environment

Health, Safety and Environment (HSE) is a high priority issue at
Reliance. The aim is to provide comprehensive health services
covering preventive, promotive, curative and community health
care services.

Further, the management’s vision to put safety of personnel above
all, is evident from the policy statement, “Safety of persons
overrides all production targets”. This vision drives the company
to continuously look for ways to break new barriers in safety
management for the benefit of all.

To establish a direction towards attaining world-class environmental
management, the Company has identified key performance
indicators such as material consumption, energy efficiency, GHG
emission, air quality, ozone depleting substances, water
consumption, waste water discharge, hazardous and non-hazardous
waste generation and disposal.

Health

Reliance’s state-of-the-art Occupational Health Centres (OHC) at
its manufacturing divisions offer health care services to its
employees. These centres are equipped with diagnostic and
therapeutic equipment and are manned by qualified occupational
health specialists. The programmes conducted by medical centres,
include preventive health care through pre-employment and also
periodic medical examinations of all employees. The results are
computerized and analysed so as to provide targeted interventions
at the individual and group levels. The medical departments also
carry out informative lecture sessions, exhibitions and diagnostic
camps. Curative treatments are a part and parcel of the services
provided. The employees are also supported for hospitalization by
regular liaisoning and provision of financial support, where required.

CASHe

Reliance’s preventive health care, provided through workplace
improvements is carried out under the CASHe Programme. Started
in 2003, it has grown to encompass the entire enterprise. The
programme has been instrumental in creating a culture of
implementing health, safety and environment projects on a priority
basis. This programme has also helped the Company to improve
its performance on the occupational health and safety front, besides
being recognized in international forums, like the International
Commission on Occupational Health Congress, held in Italy.

Occupational Health Centres (OHC)

The Company’s occupational health centers are also in the forefront
in organizing preventive educational programmes for non-
communicable diseases, such as: heart problems, hypertension,
diabetes and other lifestyle diseases, along with informative sessions
for communicable diseases, such as: malaria, tuberculosis and HIV /
AIDS. The Company endeavours to move towards the concept of
wellness as it recognizes that a healthy worker is a productive
worker.

Safety

Having reached high levels of safety management within the
country, the management has, in the last few years, been steadily
taking strategic steps to take the Company to world class levels.
This year, under the guidance of the HSE Committee of Directors,

Reliance entered into a strategic partnership with DuPont Safety
Resources. The engagement is focused on behavioral as well as
process safety aspects and aims at bringing in excellence in safety
management.

In addition to personnel safety, process safety is also a top priority
for the Company. World class documented standards, emphasis on
line management responsibility, an improved and standardized
process for safety observations are helping the manufacturing sites
achieve higher employee participation in the safety management
process. In line with the Company’s vision to always tie-up with
the best in the world, Reliance has tied-up with the Centre for
Chemical Process Safety, of the American Institute of Chemicals
Engineers (AIChE) of USA.

The focus on construction safety has further increased with
standardized safety management practices being established at all
construction areas from Jamnagar to Kakinada. Construction of
office buildings is also being monitored strongly from a safety
point of view. This emphasis has led to the Company achieving a
low lost time incident rate even at construction projects.

With business needs increasing, the Company is also focusing on
transportation and distribution safety. This focus shall not only
help establish international systems for the existing businesses, but
also prepare for the upcoming businesses such as Retail.

The Centre for HSE Excellence is accordingly getting further
strengthened with the necessary skill sets and competencies. The
Centre is helping Reliance to implement and practice world class
standards as well as standardize the processes and establish the
“Reliance Way” of Safety Management.

Environment

In its pursuit of excellence in sustainable development, Reliance
further integrated its safety and environment performance in the
overall business plan and strategy. A management system approach,
consisting of gap analysis, planning, implementation, and review
has percolated to all business plans through ISO 14001:2004 at all
manufacturing locations.

Through its annual environment plan and business targets, the
Company identifies projects and takes action to achieve these
targets with the ultimate goal of becoming water positive, carbon
neutral, with maximum possible recycling and reuse of hazardous
and other wastes. A management framework with defined structures,
roles and responsibilities, group guidelines, audits and training has
been instituted to implement the journey towards world-class
excellence in environment. The Company initiated reporting
environmental efforts to the world through Global Reporting
Initiative following G-3: 2006 guidelines. Reliance’s second
Sustainability Report for FY 2005-06, “My Reliance. My Life”
received the highest possible accreditation: GRI Checked A+. The
Company has also undertaken an exercise to establish world class
corporate environmental standards with the help of DuPont experts.

Reliance is statutory compliant in the area of environment. As a
policy, environment impact assessment and qualitative risk analysis
are performed for all new and major expansion projects and
incorporate all necessary measures to mitigate environmental
impacts due to project implementation. All the hardware - such as
effluent treatment plants, air emission abatement units and waste
disposal facilities, were maintained and improved further. The above

RELIANCE INDUSTRIES LIMITED 37

efforts have resulted in a significant improvement in water
consumption, water recycle and reuse, CO2 and other air emissions,
ozone depleting substances consumption and hazardous waste
generation.

This year, Reliance’s exploration and production (E&P) division,
involved in exploratory drilling in various off-shore blocks off the
coast of State of Andhra Pradesh, has moved into development
phase for the KG-D6 project. Regulatory environment monitoring
programs have been instituted from the beginning of construction
phase to ensure a fool-proof compliance tracking and reporting
mechanism.

Climate change and Energy conservation: During 2007-08,
Reliance registered two Clean Development Mechanism (CDM)
projects, one each from Patalganga and Allahabad, with UNFCCC
for CO2 reduction. More than 100,000 Certified Emission
Reduction (CER) from two of the registered projects have been
verified and issued by United Nations Framework Convention on
Climate Change (UNFCCC). The Company is exploring all
possibilities to take the benefit of CDM credits through various
projects. Reliance also became member of Carbon Capture and
Sequestration Association, London, for active participation in
worldwide activities related to Carbon Capture and Storage (CCS).

To decrease the Company’s carbon footprint, activities have been
initiated in the area of bio-diesel through non-edible route of
Jatropha seeds. Extensive distribution of Jatropha saplings and
cultivation in the wasteland has been targeted and a pilot plant of
20 Ton Per day (TPD) bio-diesels is ready for commissioning.
Reliance is also exploring the possibility of bio-ethanol using second
generation raw material.

Fresh water consumption and effluent discharge: Reliance as a
responsible corporate has accorded top priority to water
conservation and reuse to preserve fresh water, one of the precious
natural resources. Jamnagar Manufacturing Division is not dependent
on fresh water resource and continues to generate fresh water from
sea. A study was undertaken by internationally renowned consultant
M/S ENSR, USA to improve the effluent treatment plant’s (ETP)
operation at Jamnagar Manufacturing Division. Their recommen-
dations are being implemented. New facilities have been created
for township and labour camps at the Jamnagar Manufacturing
Division and also at the Nagpur Manufacturing Division for the
treatment of domestic sewage and its reuse and recycle.

Compared to the previous year, there has been a reduction in
consumption of water at manufacturing locations Jamnagar,
Kurkumbh, Hoshiarpur, Silvassa, Dhenkanal and Nagpur
manufacturing divisions have achieved 100 % recycling of the
treated water and thus attained the status of “Zero discharge” sites.
Vadodara and Hazira Manufacturing Divisions have initiated the
“Zero Discharge Project”.

Waste reduction and utilization: Reliance’s Manufacturing Divisions
at Vadodara and Hazira have achieved significant reduction in
hazardous waste generation through process improvement,
recycling and reuse efforts, employing Six Sigma methodology.
Efforts on plastic waste recycling, through Indian Center for Plastics
in the Environment (ICPE), and PET bottle waste recycling, have
been very well documented, and continue to reduce load on municipal
waste. These efforts also generate employment for the weaker
sections of society. A project on conversion of biological sludge to
manure by vermi-compost has been initiated at Vadodara, Hazira

and Naroda Manufacturing Divisions. Canteen waste at
Manufacturing Divisions located at Jamnagar, Hazira and Nagothane
is converted to bio-gas and used as fuel. At Nagothane Manufacturing
Division, conversion of horticulture bio-mass to coal briquettes
and its use as fuel has been implemented.

The Company has taken a proactive measure for the safe disposal
of electronic waste, fluorescent tube lights, empty paint containers,
spray cans, etc. Silvassa Manufacturing Division has established E-
Waste disposal through E-Parisara, MoEF approved recycling
agency, while the Manufacturing Divisions at Jamnagar and Hazira
have instituted tube light and empty paint container crusher with
recovery and safe disposal of toxics. These practices are being
implemented at others sites as well.

Training and Audits: During the year, Reliance has accorded highest
priority to the training, awareness and learning mechanism at all
levels. During the year, various internal and advanced training
programs and inter-site meets were conducted involving experts.
Learning on specific environmental issues through participation
in national and international conferences, workshop and courses,
has been encouraged at Reliance. Effective networking and
collaboration with national and international agencies such as
universities, research institutes, regulatory bodies, industrial and
professional association has helped to assimilate and implement
the world class best practices in HSE management.

Environment audit is one of the important tools on which special
emphasis is given and the Company currently has more than 75
“Trained Lead Auditors” for ISO 14001:2004. Various audits
conducted during the year include third party statutory audits in
the state of Gujarat and ISO audits; group environment audit;
independent assurance of Reliance’s Sustainability Reports by Ernst
& Young; Audit by Japanese Union of Scientists & Engineers at
Hazira and Nexant team at Jamnagar. Action plans are made to
liquidate all audit observations.

Community Environment Initiatives: Various environment
programs, such as tree plantation, water conservation & harvesting
and energy saving initiatives were conducted by all sites within the
complex and in the nearby community. All sites, as part of the
‘World Environment Day’ celebrations created awareness on Global
Warming and melting of ice. This year, manufacturing Divisions at
Vadodara and Dahej gave special emphasis to schools and initiated
Green School project using the framework developed by Centre for
Science and Environment (CSE), New Delhi.

To enhance bio-diversity in the vicinity of the on-shore facility at
Kakinada, Reliance undertook an extensive mangrove plantation
exercise and also forestation for restoration of degraded mangrove
areas in Coringa mangrove forest in association with MS
Swaminathan Foundation. Reliance has also sponsored study of
coastal wetlands of Godavari Delta to Environment Centre- a
reputed NGO of Andhra Pradesh.

Social Responsibility and Community Development

Social welfare and community development is at the core of
Reliance’s Corporate Social Responsibility (CSR) philosophy and
continues to be a top priority for the Company. It revolves around
the Company’s deeply-held belief in the principle of symbiotic
relationship with the local communities, recognizing that business
ultimately has a purpose - to serve human needs. Close and
continuous interaction with the people and communities in and

Touching lives. Transforming India.

around the manufacturing divisions has been the key focus while
striving to bring around qualitative changes and supporting the
underprivileged.

Felicitated meritorious students from neighbouring villages
and tribal hamlets. Each student received a set of note books,
stationary items and a school bag.

Reliance’s contributions to the community are in the area of health,
education, infrastructure development (drinking water, improving
village infrastructure, construction of schools etc.), environment
(effluent treatment, tree plantation, treatment of hazardous waste),
relief and assistance in the event of a natural disaster, and
miscellaneous activities such as contribution to other social
development organizations etc. The Company’s CSR teams at all
manufacturing divisions interact with the neighbouring community
on regular basis. The Company takes pride in the fact that its CSR
representatives are known by their first names in the regions that
it operates.

Education

‘Teach them young’ is the very motto of Reliance as the Company
believes that the quality of inputs received by an individual at an
early age contributes to his or her growth as a capable human
being. To ensure high quality of teaching, Reliance has made
significant efforts towards value enhancement of teachers through
professional and institutionalized training. Dahej Manufacturing
Division conducted educational and excursion tours of students and
teachers from the primary schools of neighbouring villages, and
also organized ‘Balmela’ and Science and Mathematics Fair.

To provide training in the field of effective techniques and modern
methods of teaching to high school teachers in the Hazira area,
the Company organized training of teachers in various subjects.

Reliance has launched the “Sky is the limit” programme at Hazira,
to address the problem of school drop-outs in the local community.

The Company also provides opportunities to engineering and
management institute students to undergo in-plant training/projects
as part of their academic curriculum, thus enabling them to
appreciate application of theoretical knowledge and get an exposure
to the industrial practices.

Efforts were made to enhance employability/skill development of
local youths. This was done by giving opportunities to them to
work in the Company’s operating plants, which in turn improve
their job prospects.

Executive Development Programs for officers of neighbouring
industries were organized in coordination with PRIA (Patalganga
Rasayani Industries Association).

The Company’s major manufacturing locations provide good
quality education to the children of all employees and also cater to
the needs of surrounding villages. Jamnaben Hirachand Ambani
School, Kokilaben Dhirubhai Ambani Vidya Mandir, and Jamnaben
Hirachand Ambani Saraswati Vidya Mandir are schools near the
Company’s manufacturing locations at Patalganga, Hazira and
Jamanagar respectively. A modern educational infrastructure
coupled with extra-curricular activities and recreational facilities
distinguish all these schools.

To encourage school children from neighbouring villages,
Nagothane Manufacturing Division based CSR cell – MGCC Area
Development Research Foundation (MADER) Trust took following
initiatives:

There are several Zilla Parishad schools located on the
hilltop near Nagothane Manufacturing Division where all
the children who are attending school are tribal. With an
objective to encourage the tribal students, Reliance also
provided school uniforms.

Barabanki Manufacturing Division renovated a primary school in
an adjoining village. Hoshiarpur Manufacturing Division provided
free uniform (winter and summer), books, bags, shoes and stationery
to the school-going children of neighbouring village.

Health

Health Awareness Programs, covering diverse topics such as noise
pollution, hazards substance abuse, prevention of HIV/AIDS and
First Aid were conducted for students of schools at the neighbouring
towns and villages of Patalganga. Barabanki Manufacturing Division
provides medical service and awareness programs on health, hygiene,
cleanliness and sanitation in neighboring villages.

Hoshiarpur Manufacturing Division too conducts monthly check-
up camps at neighbouring villages. Free medicines and spectacles
were also provided. Round the clock free ambulance service has
been provided to roadside accident victims.

Hazira Rehabilitation Centre for the Physically Challenged has
been set up in partnership with Disabled Welfare Trust of India for
capacity building of physically challenged children from the weaker
sections of society.

Initiatives to Combat HIV / AIDS and TB

The Company provides Community Medical Centres near most of
its manufacturing divisions. These centres cater to the
Governmental health care programmes like maternal and child
health, TB, malaria, HIV / AIDS etc., besides providing curative
treatment. These Centres have been well received and go a long
way in providing the medical relief for the community. The
Company has implemented HIV / AIDS and DOTS programme at
Hazira and Jamnagar, and is in the process of replicating the same
at the other manufacturing divisions. This initiative is a public-
private partnership between the Government, NGOs and Reliance.
This comprehensive project extends from creating awareness to
providing treatment, care and support. Reliance’s initiative to
combat HIV / AIDS has been recognized by UNAID, World Bank
and other national and international institutions.

Adoption of Public Health Centre (PHC)

Reliance has adopted a Primary Health Centre (PHC) from the
State Government of Gujarat and converted it into a model primary
health centre. The PHC located at Dahej in Bharuch District,
Gujarat, has attained the status of the best PHC in the District in a
short-span of 6 months and has established itself as a centre of
excellence.

Highway Rescue Intervention

To provide emergency and trauma care to victims of highway
accidents, Hazira has tied-up with an NGO to run the project on
the State Highway in Gujarat starting from Sachin to Bharuch, and
the State Highway via Hazira - Olpad - Hansot - Ankleshwar. The

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RELIANCE INDUSTRIES LIMITED 39

project will benefit thousands of commuters who use this highway
on a daily basis.

Traffic Police personnel are the first government agency to respond
to an emergency involving a chemical tanker or a truck. With the
increase in the number of accidents on roads and the unending
addition of new chemicals, it is important that these personnel
understand the hazards and the basic steps to be taken to safeguard
themselves and the general public from the hazards of chemicals.
The Company’s initiative of training traffic police personnel by
its Kurkumbh Manufacturing Division in handling road transport
emergencies involving chemicals will go a long way in serving the
objective of community well-being.

Dhirubhai Ambani Hospital, Lodhivali

Reliance also operates the Dhirubhai Ambani Hospital, Lodhivali
and renders quality medical services to the rural population and
highway accident victims.

Moti Khavdi Medical Centre

As part of corporate social responsibility services, a community
medical centre was established in Moti Khavdi, a village near
Jamnagar Manufacturing Division, during the pre-commissioning
stage of the refinery in November 1995. This Community Medical
Centre provides comprehensive medical services free of cost and
round the clock. About 1.2 lakh villagers of nearby areas like Moti
Khavdi, Nani Khavdi, Padana, Meghpar, Gagva, Jogvad, Baid,
Kanalus, Sikka, Sarmat, Navaniya, Mungani, Jakhar, Bara, Vasai
and Amra benefit from the same.

Community Medical Services at SEZ, Jamnagar

A massive workforce from all parts of India are working at the
mega construction activities in the SEZ at Jamnagar. The Company
has given shelter in several colonies. Each labour colony has a
separate medical centre. Each medical centre is manned round the
clock by doctors, nurses and ambulances.

Thalassaemia detection camp and Parental counseling

The tribal areas in regions near Surat, Gujarat, are highly endemic
to the prevalence of a thalassaemic trait, which is a genetic disorder.
The Company launched a thalassaemia detection camp in
association with the Indian Red Cross in the local high school.
Children from the nearby school were tested for the disorder. The
opportunity was also used for detecting aneamia and sickle cell
aneamia. A post-test counseling session was organized for the parents
of these children.

Project “Cancer-Aid” for Cancer patients

In partnership with the Lions Cancer Detection centre, the
Company provides monetary assistance for purchase of medicines
to cancer patients.

Mobile Dispensaries

Reliance also operates free medical diagnostic and therapeutic
services at neighbouring villages of several of its manufacturing
locations.

Blood Donation Drives

The Company’s employees organize and participate in blood
donation campaigns every year across its manufacturing divisions
and offices.

Public Health Care

Sir Hurkisondas Nurrotumdas Hospital and Research Centre
(HNHRC)

Dhirubhai Ambani Foundation (DAF), with financial and technical
services support from the Reliance Group, joined in 1997 the
Management of HNHRC, a charitable hospital offering tertiary
health care facilities to all strata of society and providing free and
subsidized services to the poor and indigent patients availing of
various diagnostic and treatment facilities.

Thousands of patients have received treatment indoors in the
various wards and specialized care areas and at OPD services at
P.T. Clinic, the popular Diagnostic Centre of the Hospital. The
Hospital continues its age-old tradition of rendering free service to
all in the casualty ward. More than 4,000 surgeries were performed
during the year, of which a major portion was special and supra-
major surgeries.

The Hospital carried out several Cadaver Transplants in the recent
past. Further, the eye Donation drive initiated by the hospital
witnessed an increased response. Some of the important outreach
programmes conducted during the year included a Senior Citizen
Health Screening Program in association with Rotary Club, and a
medical back-up for the Special Olympics event organized by the
Lions Club - International. Twice a month, the hospital continues
to conduct free health check-up for senior citizens and physically
challenged in Mumbai. These programmes have gone a long way in
educating the community on prevention of diseases, and promoting
a healthy lifestyle.

The hospital is in the process of building a multi-storied ultra
modern tertiary care hospital with state-of-art facilities and
infrastructure embracing the entire spectrum of health care services.
Several new facilities would be added, and many of the existing
facilities would be significantly upgraded in areas like Neurology
and Neurosurgery, Urosurgery, Cardiology and Cardiac Surgery,
Cardiovascular Surgery and Cosmetology. A chain of blood banks
would be established at various centers under a new initiative by the
DAF. Educational and research activities at the hospital shall
receive significant boost by way of advanced facilities and better
funding. The project, when completed, would be a landmark
healthcare facility in this city.

Sir Hurkisondas Nurrotumdas Medical Research Society (HNMRS)

DAF, through the Reliance Group, supports the scientific research
activities of HNMRS. The Society has been carrying out scientific
research activities since 1974 -75 and has completed more than
130 research projects. The scientists from HNRMS have presented
over 180 papers at various national and international conferences.
More than 130 papers have been published in peer reviewed
scientific journals, about half of them being highly rated as
prestigious international journals. Topics of national health priority
constitute a major share of the research projects undertaken.

The researchers are motivated to expand their research avenues to
carry out epidemiological studies and community-based surveys.
As part of such studies, children from nearby schools and susceptible
population from neighbourhood communities are regularly screened
by medical / paramedical professionals. Those in need of medical
care are offered special attention and treatment at the institution
free of cost.

Touching lives. Transforming India.

Drishti

Project Drishti, a nation-wide corneal grafting drive to bring light
into the lives of visually challenged from the underprivileged segment
of society, has restored the gift of sight to over 5,500 Indians. A
unique joint initiative of Reliance Industries Limited and National
Association of Blind (NAB), Project Drishti has undertaken over
5,500 keroptoplasty surgeries in less than 4 years since it was
started - all free of cost. It is now the largest corneal grafting
surgery project enabled by a single corporate entity in India.

Drishti Painting Competition

As a part of corporate initiative to propagate awareness of Project
Drishti, Drishti painting competition is organized for school children
at several manufacturing divisions and offices of the Company.

Community Development

Jamnagar Manufacturing Division continues to extend a helping
hand to surrounding villages and the community at large. Activities
during the year focussed on improving village infrastructure, supply
of drinking water, education support etc.

During the year, in a unique initiative to improve rural house-
keeping and sanitation, a totally fresh approach was adopted to
beautify Moti Khavdi; Reliance’s adopted village. Cleaning and
sanitation drive at Moti Khavdi was taken up as an ongoing project.

Three MoUs were finalized with the State Government of Gujarat
for development of Dwarka during the year. They are to (i) develop
the temple square in front of the famous Dwarkadheesh temple (ii)
construct ‘Sudama Setu’-a bridge to connect both the banks of
Gomati river behind Dwarkadheesh’s temple and (iii) develop
‘Panch-kui’ area on the sea-shore where five wells, believed to be
dug by Pandavas, still give fresh potable water right on the sea-
shore.

To maintain and support village cows in surrounding villages, two
more brand new cow-sheds for Kanalus and Kanachikari were
constructed and handed over to the respective villages. These cows
and cow-sheds (“Gaushala”) receive regular fodder supply from
the Company’s Jamnagar Manufacturing Division.

Construction of a public lavatory, water tank and avedo (common
drinking water facility for villagers) was done at Nani Khavdi during
the year under report. Drinking water through water tankers was
supplied during a crisis period in Sikka, Nani Khavdi, Meghpar and
Padana. At Kanachikari, Drinking water pipelines were laid during
the year.

A new primary school building at Navagam was constructed and
repairing of some village schools was taken up. Participation and
distribution of sweets in village schools during the Independence
Day and the Republic Day; support to Government of Gujarat’s
drive for girls’ education; distribution of gifts to girls of villages
during Navratri festival; supporting Navratri celebrations in
Jamnagar were some of the salient aspects of Jamnagar
Manufacturing Division’s Community Welfare Cell as part of routine
and regular activities.

In a major initiative to celebrate Navratri, the world’s longest
dance festival on a large scale; Jamnagar manufacturing division
took a lead to form Gujarat Industries Navratri Festival. A gala
festival was organized and celebrated at state capital Gandhinagar’s
helipad ground for nine days jointly with leading industries of

Gujarat. The event brought to fore the role of industries,
handicrafts, art and culture etc in the development of Gujarat as a
vibrant state. The event evoked tremendous response and applause
from every quarter of the society at large.

Reliance Rural Development Trust (RRDT)

The work to improve the rural infrastructure under the Government
of Gujarat’s rural development plans was continued with full energy
by RRDT. During the year under report, the RRDT created 760
facilities in the rural areas at a cost of Rs. 24.07 crore. The facilities
included 247 concrete roads, 465 anganwadis, 38 drinking water
facilities, 1 panchayat office, 2 community halls, 5 check-dams
and 2 other amenities in the rural areas of the State of Gujarat.
RRDT has turned out to be an exemplary corporate NGO steadily
and silently implementing government’s developmental plans for
rural areas of Gujarat. It is a unique synergy between a corporate
giant like Reliance Industries Limited and the Government of
Gujarat, formed to carry out rural development projects in private
public partnership.

Dahej Manufacturing Division has been playing a pivotal role in
the development of the society. Social initiatives undertaken by
Dahej Manufacturing Division are concentrated towards promotion
of education, health awareness and medical facilities, infrastructure
development and supply of safe drinking to the villages.

Some of the initiatives undertaken by the Company’s E&P Division
near KG-D6 include 1) gainful employment for local communities,
2) vocational training for the youth, 3) employment for members
of Gadimoga panchayat, 4) financial assistance for community
activities, 5) sponsoring of cultural and sports events, 6) financial
relief to affected communities, 7) compensation to local fishermen,
8) academic and financial assistance and educational support
through distribution of books, 9) improvement of village school
infrastructure and 10) medical help to local communities.

After successfully implementing zero garbage concept at Nagothane
Manufacturing Division, the Company’s CSR cell took the initiative
to propagate the concept of solid waste (dry and wet waste)
management in the neighbouring villages so as to help villagers in
keeping their village environment neat, clean and garbage-free.

Reliance has also solved the long-standing drinking water problem
of villages near its Manufacturing Divisions located at Naroda and
Nagpur. Further, Reliance has created public bathing facilities and
toilets for truckers and residents of villages for improving hygiene
near its Allahabad Manufacturing Division.

Empowerment of Women and Youth

Reliance has conducted many training programmes, which would
help the rural women and youth to be self sustaining and generate
income for themselves and support their families.

The training programmes conducted at Vadodara for the rural
women and youth of surrounding villages of Vadodara Manufacturing
Division during the current year are: 1) Women Empowerment, 2)
Dress making & Designing, 3) Beauty Culture & Healthcare,
4) Hospital attendant (Helpers for Hospital & Nursing Homes), 5)
Plumbing & Hand Pump repairing training, 6) Computer Hardware,
7) Motor Vehicle Driving, 8) Mobile Repairing and 9) Doormat
making. Several persons participated and benefited from the above
training programmes.

RELIANCE INDUSTRIES LIMITED 41

Nagothane Manufacturing Division based CSR cell-MADER Trust
is supporting several Self-Help groups in income generating
activities such: Hatsadi tandul (brown rice cultivation), phenoyl
making, agarbati-making, candle-making, papad-making and
supplying it to industrial canteens and also hand-carry-bag making.
Hoshiarpur Manufacturing Division conducts free stitching courses
for the women of nearby villages.

Skill Up-gradation

Reliance runs special training programs to equip the young people
of neighboring villages with life and work skills necessary for
sustaining livelihood. Nagothane Manufacturing Division conducted
training in fashion designing courses for the ladies to upgrade the
skills of those women who are already trained in basic tailoring.
This division also conducted computer education courses and nursing
assistant training courses. The trainees also received hands on
training at the local hospitals and primary health centres at
Nagothane. The Company also trains the youth in vehicle driving
courses and also helps them in getting a driver’s license so that
they can earn a livelihood by starting their own business as motor
drivers.

The Company’s Polymer business division organised technical
training programmes at 50 Industrial Training Institutes (ITIs) all
over India to enhance skills of artisans for new and advanced
technique of plumbing with PPR pipes. The Company also offers
plumbing kits, free of cost, to various plumbers as well as to ITIs to
promote this new energy efficient application in the building
industry. PPR pipes are faster to install than metal pipes. This
results in improving daily productivity of plumbers thereby
increasing in their earnings. This initiative covered many plumbers
across the country.

Eco-friendly Initiatives

In addition to the above initiatives, the Company also focusses on
the development of the eco-system and improvement of the green
belt across its manufacturing and E&P sites.

Polyethylene (PE) Biogas Domes for Renewable Energy
Source

Biogas technology for rural development has been a focus area for
Government of India. Ministry of New and Renewable Energy
(MNRE) promotes family-type biogas plants under the National
Project on Biogas Development (NPBD). The project was launched
in 1981-82 with the objective of producing clean and alternate
renewable energy for cooking and lighting, enriched organic manure
for agricultural usage, improving sanitation and hygiene and
reducing drudgery of women. The two cubic metre “Deenabhandu”
model is the most popular family type fixed dome biogas plant
developed with conventional brick and cement. Many of these
plants get defunct due to dome cracks leading to gas leakages. The
Company has developed a 100 per cent leak-proof Rotomolded
PE Dome, which gives end-users a unique combination of properties
like good strength, stiffness, light weight, seamless construction,
ease of installation and very little maintenance. The PE-based
dome has been developed by Reliance and has been approved by
the Ministry of New and Renewable Energy, Government of India.

Sports for the Physically Challenged

Reliance has joined hands with the organising team of Special
Olympics Gujarat (Bharat) for the physically challenged children
of Gujarat. Several hundred children participated in the events that
were organised at the Reliance Sports Complex, Vadodara.

Real Indian Heroes

On the occasion of Shri Dhirubhai Ambani’s 75th birthday, 60
years of Indian Independence and 30 years of Reliance, the Company
took up a unique initiative to salute the Real Indian Heroes of
Independent India. Partnering with the TV Channel, CNN-IBN, a
series of programmes to felicitate the unsung heroes of India was
launched. CNN-IBN identified 24 Real Heroes, which included six
each from the four zones of India. In recognition for their
outstanding contribution to society, Reliance felicitated each of
these 24 Real Heroes to further encourage their contributions.

Transforming lives at the bottom of the Pyramid

Dhirubhai Ambani Foundation (DAF)

Reliance constantly aims at creating and living up to rising
expectations among its valued stakeholders. The Company cares
for providing clean and green environment on a sustainable basis.
It recycles used bottles to produce value added products. When
most of the environmental concerns are subsidised, Reliance has
found a solution for being environmental friendly on a sustainable
basis. In the case of recycling bottles, Reliance is indirectly
providing livelihood to around 200,000 individuals. This business
has transformed lives of those at the bottom of the pyramid.

Packaging solution to farmers (Leno bags)

Reliance organised extensive awareness programmes on improved
packaging solutions for potato and other vegetables for farmers all
over India. This included demonstration on use of Leno bags, which
are more durable, functionally more efficient and cheaper than
traditional materials. This programme helped the farmers reduce
the cost of packaging of potato. These bags also helped farmers to
reduce wastage while keeping in cold storage. The Company’s
efforts helped the farmers to improve their earnings. The
programme covered more than 10,000 farmers across India.

Dhirubhai Ambani Foundation (DAF) was established in 1995 by
Shri Dhirubhai Ambani, the Patron Trustee of the Foundation. A
public charitable trust registered under the Bombay Public Trusts
Act, 1950, DAF has for its objectives a broad spectrum of worthy
causes ranging from health and environment, to promotion of
social and economic welfare, and rural development. However, its
main thrust has been on education and public healthcare.

DAF systematically pursues philanthropic activities to promote
national welfare and social good. Reliance lends valuable support
to DAF in terms of financial contribution and wherever necessary,
infrastructural support. Reliance also draws on the DAF expertise
in evolving and coordinating the Corporate Social Responsibility
Initiatives and other group companies also help DAF initiatives
wherever possible. Thus, DAF initiatives reinforce Reliance’s
commitment to social responsibility.

Education: Rewards and Scholarships

DAF SSC Merit Reward and Undergraduate Scholarship Schemes:
The Foundation’s much acclaimed SSC Merit Reward and
Undergraduate Scholarship Schemes continued to encourage and

Touching lives. Transforming India.

assist meritorious students at the district level to pursue higher
education in different vocations to enhance the Human Resource
potential of the country. Now in their twelvth year, both the
schemes are currently applicable in the states of Maharashtra,
Gujarat, Goa and the Union Territory of Daman, Diu and Dadra
Nagar Haveli.

The first three in overall merit and one physically challenged
student securing the highest marks in each of the 64 districts at the
annual SSC and HSC examinations of the respective state Boards,
as well as the first ten CBSE students from Maharashtra and Gujarat
and 2 from Goa, in the merit list of CBSE New Delhi, are eligible
for the Rewards and Scholarships.

Reaching out to other states:

To offer equal opportunities to the physically challenged
meritorious students from the rest of the country, the Foundation
has extended the Rewards and Scholarship Schemes to the first five
physically challenged students from all the States and Union
Territories of India that provide the list of such meritorious students.
Accordingly, in 2007-08, physically challenged meritorious students
from Rajasthan received SSC Merit Rewards and Undergraduate
Scholarships at a function held in Jaipur, whereas at a function held
in Hyderabad, 20 Physically Challenged meritorious students from
the state of Andhra Pradesh received the Rewards and Undergraduate
Scholarships for the years 2006-07 and 2007-08.

Reliance Kargil scholarships scheme

Children of martyrs / disabled soldiers of the Kargil war received
financial support under this Scheme for their education from Std.
V to XII. The unique feature of the Scheme is that the corpus was
created with contributions from Reliance Group employees, with
the Management responding by making equal contribution.

“Dhiruhbai Ambani Scholars’ scheme” for Meritorious Children
of Reliance Shareholders

The Scheme was announced in 2003 as a one-time measure to
commemorate the silver jubilee of the company’s listing on the
Bombay Stock Exchange. In the first year, 900 meritorious children
of the shareholders received the scholarships. Of these, in 2007 -
08 which is the 4th year of the Scheme, a total of 101 scholars
continued to receive the scholarship for their education, leading to
Degree / Diploma course, the rest having completed their education.

Reliance School of Life Sciences (RSLS)

Reliance School of Life Sciences is a centre of excellence established
by the DAF in 2007. It is dedicated to providing graduate, post
graduate, doctoral research and continuing education programmes
in various domains of life sciences and related technologies. RSLS
currently operates from a state of the art campus at Navi Mumbai.
The first Diploma Programme in Clinical Research and
Biopharmaceutical Manufacturing commenced from July 2007.

Dhirubhai Ambani International School

In just five years, Dhirubhai Ambani International School has
emerged as a centre of excellence, with outstanding achievements
and all-round development of its students, as outlined in the Annual

Report 2006 - 2007. An LKG-12 school, it prepares students for
the ICSE, the IGCSE and the IB Diploma Examinations and is a
member of the Cambridge International Primary Program (CIPP).

The first three batches of the school’s IB Diploma candidates are
pursuing their undergraduate studies at leading universities worldwide,
and this year some are completing their degrees in the UK and
India! The fourth batch, the Class of 2008 (88 candidates), has
also earned outstanding university placement offers, as reflected
in the accompanying list as per Annexure-A. Several of these
universities have also offered scholarships to our students.

A range of achievements in broader areas, in addition to those
already reported on before, indicates the increasing balance and
depth of learning experiences at the school.

The CAS (Creativity, Action and Service) program, part of the IB
Diploma program, serves as a key opportunity for our students to
engage with a variety of social causes. Our students work with a
number of NGOs - Advitya, Akanksha, CCDT, Magic Bus,
Muktangan, Pratham, Pukar, and Amnesty. Indo-French Schools,
a joint service project between our school, L’Ermitage School,
Paris and The Franco-Indian school of Bombay, teach English to
children in a slum in Malad (Mumbai). It also has conducted eye
check-ups for children there. The ‘Across the Road’ service project
recently launched by the school serves children in the slum areas
adjacent to the school and supports them in their educational and
developmental needs.

In December 2007, the school celebrated its Annual Day as ‘The
Great Indian Mela’ - a musical event to celebrate India’s 60
years of Independence, as well as a fete that raised considerable
funds for the NGOs that our students support and work with. The
two evening performances were enjoyed by 6,500 people from the
school community.

In keeping with its philosophy of constantly endeavoring to provide
opportunities for the overall development of children, this year
the school is launching The Dhirubhai Ambani International
School Study & Activity Center at Matheran. Set in a lush
green 18-acre campus, with sports, recreation and study facilities,
it serves as a base for outdoor pursuits for our children and faculty,
and for engaging with neighboring villages in their development.
DAIS students have annual exchange trips with L’Ermitage, and
also CAS exchange trips with a school in Mauritius.

In May-June 2007, the school organized its Inaugural International
Football Camp, which was led by three prominent coaches from
the United Kingdom. Over 70 students from the school participated
in this 7-day camp.

In March 2008, the school earned Regional Membership of
‘Round Square’. The criteria for membership include a strong
commitment to participate in the six pillars that form the
foundation of ‘Round Square’ - international understanding,
democracy, environment, adventure, leadership, and service.

RELIANCE INDUSTRIES LIMITED 43

College-wise position of admission offers earned by the IB Diploma Class of 2008

NAME OF THE UNIVERSITY

COUNTRY

Harvard University
Yale University
University of Oxford
University of Cambridge
Imperial College London
Princeton University
University of Chicago
University College London
Columbia University
McGill University
Duke University
University of Pennsylvania
Stanford University
Cornell University
Carnegie Mellon University
University of California-Berkeley
University of Edinburgh
King’s College London
Northwestern University
University of Manchester
Brown University
University of British Columbia
University of Bristol
University of Michigan-Ann Arbor
University of Toronto
Boston University
New York University
University of Texas-Austin
University of Wisconsin-Madison
University of Warwick
University of California-San Diego
London School of Economics
University of Sheffield
University of Nottingham
University of Illinois-Urbana Champaign
University of York
Emory University
University of St. Andrews
Purdue University
University of Southampton
Queen’s University
Penn State University
Rice University
University of California-Davis
Georgia Institute of Technology
Cardiff University
University of Liverpool
Georgetown University
Durham University
University of California-Santa Barbara
University Southern California
Ohio State University
University of Sussex

USA
USA
UK
UK
UK
USA
USA
UK
USA
Canada
USA
USA
USA
USA
USA
USA
UK
UK
USA
UK
USA
Canada
UK
USA
Canada
USA
USA
USA
USA
UK
USA
UK
UK
UK
USA
UK
USA
UK
USA
UK
Canada
USA
USA
USA
USA
UK
UK
USA
UK
USA
USA
USA
UK

WORLD UNIVERSITY RANKING
Times Higher Education
Supplement Nov 2007
(World’s top 200 Universities)
1
2
2
2
5
6
7
9
11
12
13
14
19
20
20
22
23
24
29
30
32
33
37
38
45
47
49
51
55
57
58
59
68
70
73
74
74
76
77
80
88
90
92
96
97
99
101
102
109
117
119
120
121

U. S. NEWS &
WORLD REPORT
America's Best Colleges
2008 Edition
2
3
NA
NA
NA
1
9
NA
9
NA
8
5
4
12
22
21
NA
NA
14
NA
14
NA
NA
25
NA
57
34
44
38
NA
38
NA
NA
NA
38
NA
17
NA
64
NA
NA
18 (in Business)
17
42
35
NA
NA
23
NA
44
27
57
NA

Annexure - A

NUMBER OF
ADMISSION
OFFERS TO
DAIS STUDENTS
1
2
1
2
8
2
1
16
2
7
1
8
2
2
9
6
1
9
7
4
4
3
6
15
6
12
9
4
1
24
1
5
1
6
15
2
3
2
12
2
1
7
1
3
9
1
1
2
1
2
12
1
2

Touching lives. Transforming India.

NAME OF THE UNIVERSITY

COUNTRY

WORLD UNIVERSITY RANKING
Times Higher Education
Supplement Nov 2007
(World’s top 200 Universities)

U. S. NEWS &
WORLD REPORT
America's Best Colleges
2008 Edition

NUMBER OF
ADMISSION
OFFERS TO
DAIS STUDENTS

Texas A & M University-College Station
University of Western Ontario
Arizona State University
Indiana University-Bloomington
University of Aberdeen
University of California-Irvine
University of Bath
Tufts University
Virginia-Tech University
Rutgers, The State University of New Jersey
University of Surrey
Rensselaer Polytechnic Institute
University of California-Los Angeles
Syracuse University
University of Miami
Northeastern University
Drexel University
New Jersey Institute of Technology
Harvey Mudd College
Embry-Riddle Aeronautical University
Swarthmore College
Wellesley College
Middlebury College
Haverford College
Wesleyan University
Vassar College
Bryn Mawr College
Lafayette College
Bard College
Franklin & Marshall College
Denison University
Babson College
Villanova University
Bentley College
Rochester Institute of Technology
Emerson College
New York Institute of Technology
School of the Art Institute of Chicago
Savannah College of Art and Design
Parsons The New School for Design
Otis College of Art & Design
Florida Institute of Technology
Chapman University
California College of Arts
City University, London
School of Oriental and African Studies
Royal Halloway, University of London
Loughborough University
Kingston University
Brunel University
The University of Bradford
Carleton University
University of Guelph
York University
University of Ontario

USA
Canada
USA
USA
UK
USA
UK
USA
USA
USA
UK
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
UK
UK
UK
UK
UK
UK
UK
Canada
Canada
Canada
Canada

122
126
134
137
137
140
145
159
166
177
190
191
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA

62
NA
124
11 (in Business)
NA
44
NA
28
71
59
NA
44
25
50
52
96
108
124
1 (in Engg)
9 (in Engg)
3 (in Liberal Arts)
4 (in Liberal Arts)
5 (in Liberal Arts)
10 (in Liberal Arts)
11 (in Liberal Arts)
11 (in Liberal Arts)
24 (in Liberal Arts)
34 (in Liberal Arts)
37 (in Liberal Arts)
40 (in Liberal Arts)
52 (in Liberal Arts)
27 (in Business)
1 (Master’s Universities)
6 (Master’s Universities)
8 (Master’s Universities)
16 (Master’s Universities)
80 (Master’s Universities)
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA

1
1
1
7
1
1
6
1
1
1
2
2
5
2
1
1
1
1
3
1
2
2
1
1
1
2
5
2
1
1
1
3
1
1
1
3
1
2
1
1
1
4
1
2
1
4
1
2
1
2
1
1
1
1
1

Report on Corporate Governance

RELIANCE INDUSTRIES LIMITED 45

Corporate Governance is based on the principles of integrity,
fairness, equity, transparency, accountability and commitment to
values. Good governance practices stem from the culture and
mindset of the organisation. As stakeholders across the globe evince
keen interest in the practices and performance of companies,
Corporate Governance has emerged on the centre stage.

Over the years, governance processes and systems have been
strengthened at Reliance. In addition to complying with the
statutory requirements, effective governance systems and practices
towards improving transparency, disclosures, internal controls and
promotion of ethics at work-place have been institutionalised.
Reliance recognises that good Corporate Governance is a continuing
exercise and reiterates its commitment to pursue highest standards
of Corporate Governance in the overall interest of all the
stakeholders. For implementing the Corporate Governance
practices, Reliance has a well defined policy framework consisting
of the following :

•

Reliance’s values and commitments policy
Reliance’s code of ethics
Reliance’s business policies
Reliance’s policy for prohibition of insider trading
A detailed programme of ethics management

These policies and their effective implementation underpin the
commitment of the Company to uphold the highest principles of
Corporate Governance consistent with the Company’s goal to
enhance shareholder value.

Corporate Governance Monitoring and Review Process at
Reliance :

Reliance continuously reviews its policies and practices of
Corporate Governance with a clear goal not merely to comply
with statutory requirements in letter and spirit but also constantly
endeavours to implement the best international practices of
Corporate Governance, in the overall interest of all stakeholders.

Some of the major initiatives taken by the Company towards
strengthening its corporate governance systems and practices
include the following :

(a) Corporate Governance and Stakeholders’ Interface

Committee :

The Corporate Governance and Stakeholders’ Interface
Committee consisting of independent directors examines
various Corporate Governance practices from time to time
and recommends to the Board for adoption.

Establishment of a dedicated independent Board Committee
demonstrates the level of management’s commitment in
putting in place a pervasive governance framework flowing
from the top.

The scope of the Corporate Governance and Stakeholders’
Interface Committee was enhanced to act as Nomination
Committee as well. Accordingly, the Committee evaluates
and recommends to the Board the appointment of Directors
on the Board. This move of the management aims at ensuring
increased level of transparency, objective evaluation of the

Board strength and impartial selection of new Directors on
the Board.

(b) Corporate Governance Manual :

The Corporate Governance Manual (‘the Manual’) of the
Company sets out amongst others the procedures for effective
functioning of the Board and its Committees. The Manual
also incorporates the Code of Business Conduct and Ethics for
Directors and Management Personnel, Code of Ethics for
Employees, Code of Conduct for Prohibition of Insider Trading
and key accounting policies. These policies are constantly
monitored and reviewed by the Corporate Governance and
Stakeholders’ Interface Committee, from time to time.

The Company has appointed an independent practicing
Company Secretary to conduct secretarial audit. The quarterly
audit reports are placed before the Board and the annual audit
report placed before the Board is included in the Annual Report.

This audit has been introduced to report to the management
as well as the shareholders of the status of compliance with
various applicable corporate and securities laws.

(d) Guidelines for the Board / Committee Meetings :

The Company has defined guidelines for meetings of the Board
and Board Committees. These Guidelines seek to systematise
the decision making process at the meetings of the Board and
Board Committees in an informed and efficient manner. The
salient features of the guidelines have been dealt with in detail
elsewhere in this report.

(e) Best Governance Practices :

It is the Company’s constant endeavour to adopt the best
governance practices as laid down in international codes of
Corporate Governance and as practiced by well known global
companies.

Some of the best global governance norms put into practice at
Reliance include the following -

(i)

The Company has a designated Lead Independent
Director with a defined role.

(ii) All securities related filings with Stock Exchanges and

SEBI are reviewed on a quarterly basis by the Share-
holders’ / Investors’ Grievance Committee.

(iii) The Company has established policies and procedures

for corporate communication and disclosures.

(f) Role of the Company Secretary in Overall Governance

Process :

The Company Secretary plays a key role in ensuring that the
Board procedures are followed and regularly reviewed. The
Company Secretary ensures that all relevant information,
details and documents are made available to the directors and
senior management for effective decision making at the
meetings. The Company Secretary is primarily responsible to
ensure compliance with applicable statutory requirements and

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46

Touching lives. Transforming India.

is the interface between the management and regulatory
authorities for governance matters. All the Directors of the
Company have access to the advice and services of the
Company Secretary.

(g) Observance of the Secretarial Standards issued by the

Institute of Company Secretaries of India :

The Institute of Company Secretaries of India (ICSI) is one of
the premier professional bodies in India. ICSI has issued
Secretarial Standards on important aspects like Board meetings,
General meetings, Payment of Dividend, Maintenance of
Registers and Records, Minutes of Meetings and Transmission
of Shares and Debentures. Though these standards are
recommendatory in nature, the Company adheres to the
standards voluntarily.

In accordance with Clause 49 of the Listing Agreement with
the Stock Exchanges in India (Clause 49) and some of the
best practices followed internationally on Corporate
Governance, the report containing the details of governance
systems and processes at Reliance Industries Limited is as
under :

1. Company’s Philosophy on Code of Governance

Reliance’s philosophy on Corporate Governance envisages
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,
lenders, Government and the society at large. Reliance is
committed to achieve and maintain the highest standards of
Corporate Governance. Reliance believes that all its actions
must serve the underlying goal of enhancing overall shareholder
value on a sustained basis.

Reliance is committed to the best governance practices that
create long term sustainable shareholder value. Keeping in
view the Company’s size, complexity, global operations and
corporate traditions, the Reliance Governance framework is
based on the following main principles :

Constitution of a Board of Directors of appropriate
composition, size, varied expertise and commitment to
discharge its responsibilities and duties.

Ensuring timely flow of information to the Board and its
Committees to enable them to discharge their functions
effectively.

Independent verification and safeguarding integrity of
the Company’s financial reporting.

A sound system of risk management and internal control.

Timely and balanced disclosure of all material information
concerning the Company to all stakeholders.

Transparency and accountability.

Compliance with all the applicable rules and regulations.

Fair and equitable treatment of all its stakeholders
including employees, customers, shareholders and
investors.

2. Board Composition and Particulars of Directors

Board Composition

The Company’s policy is to maintain optimum combination
of Executive and Non-Executive Directors. The Board consists
of 13 Directors, out of which 8 are Independent Directors.
Composition of the Board and category of Directors are as
follows :

Category
Promoter Director

Executive Directors

Non-Executive
Non-Independent
Director
Independent
Directors

Name of the Directors
Mukesh D. Ambani
Chairman &
Managing Director
Nikhil R. Meswani
Hital R. Meswani
Hardev Singh Kohli
Ramniklal H. Ambani

Mansingh L. Bhakta
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Mahesh P. Modi
S. Venkitaramanan
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar

All the Independent Directors of the Company furnish a
declaration at the time of their appointment as also annually
that they qualify the conditions of their being independent as
laid down under Clause 49. All such declarations are placed
before the Board.

No Director is related to any other Director on the Board in
terms of the definition of ‘relative’ given under the Companies
Act, 1956, except Shri Nikhil R. Meswani and Shri Hital R.
Meswani, who are brothers.

What constitutes independence of Directors

For a Director to be considered Independent, the Board
determines that the Director does not have any direct or
indirect material pecuniary relationship with the Company.
The Board has adopted guidelines to determine independence,
which are in line with the applicable legal requirements.

Lead Independent Director

The Board of Directors of the Company has designated Shri
Mansingh L. Bhakta as the Lead Independent Director. The
role of Lead Independent Director is as follows :

To preside over all meetings of Independent Directors.

To ensure that there is adequate and timely flow of
information to Independent Directors.

To liaise between the Chairman & Managing Director,
the Management and the Independent Directors.

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RELIANCE INDUSTRIES LIMITED 47

To advise on the necessity of retention or otherwise of
consultants who report directly to the Board or the
Independent Directors.

To preside over meetings of the Board and Shareholders
when the Chairman and Managing Director is not present
or where he is an interested party.

To perform such other duties as may be delegated to the
Lead Independent Director by the Board / Independent
Directors.

Directors’ Profile

Brief resume of all the Directors, nature of their expertise in
specific functional areas and names of companies in which
they hold directorships, memberships/chairmanships of Board
Committees and their shareholding in the Company are
provided below :

Shri Mukesh D. Ambani is a Chemical Engineer from
the University of Bombay and pursued MBA from
Stanford University, USA. He is the son of Shri Dhirubhai
H. Ambani, Founder Chairman of the Company. Shri
Ambani joined Reliance in 1981 and initiated Reliance’s
backward integration from textiles into polyester fibres
and further into petrochemicals, petroleum refining and
oil and gas exploration and production. In this process,
he directed the creation of several new world-class
manufacturing facilities involving diverse technologies
that have raised Reliance’s petrochemicals manufacturing
capacities from less than a million tonnes to about twenty
million tonnes per year.

Shri Ambani directed and led the creation of the world’s
largest grassroots petroleum refinery at Jamnagar, India,
with a current capacity of 660,000 barrels per day (33
million tonnes per year) integrated with petrochemicals,
power generation, port and related infrastructure.

Shri Ambani had set up one of the largest and most complex
information and communications technology initiative
in the world in the form of Reliance Infocomm Limited
(now Reliance Communications Limited).

Shri Ambani is also steering Reliance’s initiatives in a
world scale, offshore, deep water oil and gas exploration
and production program, setting up of a second petroleum
refinery at Jamnagar, development of infrastructure
facilities and implementation of a pan-India organized
retail network spanning multiple formats and supply chain
infrastructure.

Shri Ambani’s accolades include:

Bestowed the US-India Business Council (USIBC)
‘Global Vision’ 2007 Award for Leadership in 2007.

Invited to be a member of the World Business
Council for Sustainable Development (WBCSD).
He is the only Indian CEO to be a Council Member
of WBCSD.

Conferred ‘ET Business Leader of the Year’ Award
by The Economic Times (India) in the year 2006.

Conferred the Degree Honoris Causa, Honorary
Doctorate by the Maharaja Sayajirao University
in 2007.

Conferred the India Business Leadership Award by
CNBC-TV18 in 2007.

Received the first NDTV-Profit ‘Global Indian
Leader Award’ from Hon’ble Prime Minister of
India, Shri Manmohan Singh in New Delhi in the
year 2006.

Had the distinction and honour of being the co-
chair at the World Economic Forum in Davos,
Switzerland.

Ranked 42nd among the ‘World’s Most Respected
Business Leaders’ and second among the four Indian
CEOs featured in a survey conducted by
Pricewaterhouse Coopers and published in Financial
Times, London, in November, 2004.

Conferred the World Communication Award
for the ‘Most Influential Person’ in Tele-
communications by Total Telecom, in October,
2004.

Conferred the ‘Asia Society Leadership Award’ by
the Asia Society, Washington D.C., USA, in May,
2004.

Shri Ambani is a member of the Prime Minister’s Council
on Trade and Industry, Government of India and the
Board of Governors of the National Council of Applied
Economic Research, New Delhi. He is a member of the
Indo-US CEOs Forum, the International Advisory Board
of Citigroup, International Advisory Board of the
National Board of Kuwait and McKinsey Advisory Council.

He is the Chairman, Board of Governors of the Indian
Institute of Management, Bangalore and a member of
the Advisory Council of the Indian Institute of
Technology, Mumbai. He is also a member of the Advisory
Council for the Graduate School of Business of the
Stanford University.

Shri Ambani is the Chairman of Reliance Petroleum
Limited and Reliance Retail Limited and a Director of
Reliance Europe Limited, KDA Enterprises Private
Limited and Pratham India Education Initiative. He is
the Chairman of the Finance Committee, a member of
the Shareholders’/ Investors’ Grievance Committee and
the Employees Stock Compensation Committee of the
Company.

Shri Ambani is the Promoter of the Company and holds
18,07,923 shares of the Company in his name as on
March 31, 2008.

Shri Nikhil R Meswani is a Chemical Engineer. He is
the son of Shri Rasiklal Meswani, one of the Founder
Directors of the Company.

Shri Meswani joined Reliance at an early age in 1986 and
since July 01, 1988 he is a Whole-time Director designated
as Executive Director on the Board of Reliance.

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48

Touching lives. Transforming India.

He is responsible for the entire Petrochemicals and
Polyester Businesses. He has contributed to the growth
of the Petrochemicals and Polyester Divisions of Reliance
to its present position as a market leader in India and one
amongst the top ten Petrochemicals companies in
the world. In addition, he handles several corporate
responsibilities.

Shri Meswani is a Director of Reliance Commercial
Dealers Limited. He is a member of the Finance
Committee and the Shareholders’/ Investors’ Grievance
Committee of the Company.

He is a member on several committees of the Government
of India connected with the Ministry of Textiles,
Petrochemicals and Petroleum & Natural Gas.

Shri Meswani is the President of Association of Synthetic
Fibre Industry. He was also the Chairman of Asian
Chemical Fibre Industries Federation.

He was named Young Global Leader of Tomorrow by the
World Economic Forum in 2005 and continues to actively
participate in the activities of the World Economic
Forum.

He was honoured by the Textile Association (India),
Institute of Economic Studies, Ministry of Commerce &
Industry and the University Institute of Chemical
Technology (UICT), Mumbai.

Shri Meswani holds 1,21,174 shares of the Company in
his name as on March 31, 2008.

Shri Hital R. Meswani graduated with honours in the
Management & Technology programme from University
of Pennsylvania. He received a B.S. Degree in Chemical
Engineering and B.S. Economics from the Wharton
Business School, both from University of Pennsylvania,
U.S.A.

Shri Meswani joined Reliance Industries Limited in 1990.
He is on the Board of the Company as Whole-time
Director designated as Executive Director since August
4, 1995, with overall responsibility of the Petroleum
Business and all manufacturing and project activities of
the group.

Shri Meswani is a Director of Reliance Industrial
Investments and Holdings Limited, Reliance
Petroleum
Limited and Reliance Commercial Dealers Limited. He
is the Chairman of the Audit
Committee of Reliance
Industrial Investments and Holdings Limited, member of
the Shareholders’/Investors’ Grievance Committee of
Reliance Petroleum Limited. He is the Chairman of the
Health, Safety & Environment Committee and a member
of the Finance Committee and the Shareholders’/
Investors’ Grievance Committee of the Company.

Shri Meswani holds 87,930 shares of the Company in his
name as on March 31, 2008.

Shri Hardev Singh Kohli is a MSc. He has wide
experience in implementation and operation of fertilizers
and petrochemicals plants. Since 1991, he has been

working at the Company’s Hazira Manufacturing Division.
He was appointed as a Whole-time Director of the
Company designated as Executive Director with effect
from April 1, 2000.

In recognition of his far reaching vision, management
skills, innovative ideas, untiring efforts and dynamic
leadership, he was conferred the prestigious The Wisitex
Foundation Award - 1996 “Man of the Corporate
Management”.

He is a member of the Health, Safety and Environment
Committee of the Company.

Shri Kohli holds 1,155 shares of the Company in his
name as on March 31, 2008.

Shri Ramniklal H. Ambani has been one of the senior
most Directors of the Company since January 11, 1977.

Shri Ramniklal H. Ambani is the elder brother of Shri
Dhirubhai H. Ambani, the Founder Chairman of the
Company and has been instrumental in chartering the
growth of the Company during its initial years of
operations from its factory at Naroda, in Ahmedabad.

Shri Ambani along with Late Shri Dhirubhai H. Ambani,
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.

Shri Ambani is a Director of Gujarat Industrial Investments
Corporation Limited, Sintex Industries Limited and
Yashraj Investments and Leasing Company Private
Limited. He is the Chairman of the Audit Committee of
Gujarat Industrial Investments Corporation Limited. He
is the Chief Mentor in Tower Overseas Limited.

Shri Ambani holds 84,397 shares of the Company in his
name as on March 31, 2008.

Shri Mansingh L. Bhakta is a Director of the Company
since September 27, 1977. He is a Senior Partner of
Messrs. Kanga & Company, a leading firm of Advocates
and Solicitors in Mumbai. He has been in practice for
over 50 years and has vast experience in the legal field
and particularly on matters relating to corporate laws,
banking and taxation.

Shri Bhakta is the legal advisor to leading foreign and
Indian companies and banks. He has also been associated
with a large number of Euro issues made by Indian
companies. He was the Chairman of the Taxation Law
Standing Committee of LAWASIA, an Association of
Lawyers of Asia and Pacific which has its headquarters in
Australia.

Shri Bhakta is a Director of Ambuja Cements Limited,
Micro Inks Limited, The Indian Merchant’s Chamber,
Mumbai, JCB Manufacturing Limited and JCB India
Limited. He is the Lead Independent Director of the
Company. He is the Chairman of the Shareholders’/
Investors’ Grievance Committee and the Remuneration
Committee of the Company. He is the Chairman of the

RELIANCE INDUSTRIES LIMITED 49

Audit Committee, the Compensation and Remuneration
Committee and the Banking Matters Committee of
Ambuja Cements Limited and a member of the Audit
Committees of Micro Inks Limited and JCB India Limited.
He is Recipient of Rotary Centennial Service Award for
Professional Excellence from Rotary International. He
is listed as one of the Leading Lawyers of Asia for 2006
and 2007 by Asialaw, Hongkong.

Shri Bhakta holds 1,57,000 shares of the Company in his
name as on March 31, 2008.

Shri Yogendra P. Trivedi is a Director of the Company
since April 16, 1992. Shri Trivedi is practicing as Senior
Advocate, Supreme Court. He is a member of the Rajya
Sabha. He is holding important positions in various fields
viz., economic, professional, political, commercial,
education, medical, sports and social fields. He has received
various awards and merits for his contribution in various
fields. He was a Director in Central Bank of India and
Dena Bank amongst many other reputed companies. He
is the past President of Indian Merchants’ Chamber and
was on the Managing Committee of ASSOCHAM and
International Chamber of Commerce.

Shri Trivedi is the Chairman of The Zandu Pharmaceutical
Works Limited, Sai Service Station Limited and Trivedi
Consultants Private Limited. He is a Director of Reliance
Petroleum Limited, Safari Industries (India) Limited, Birla
Power Solutions Limited, Birla Cotsyn (India) Limited,
The Supreme Industries Limited, Zodiac Clothing
Company Limited, Seksaria Biswan Sugar Factory
Limited, New Consolidated Construction Company
Limited, Colosseum Sports and Recreation International,
Metro Exporters Private Limited, Clare Mont Trading
Private Limited and Monica Travels Private Limited.

Shri Trivedi is also a Member of Indian Merchants’
Chamber, All India Association of Industries, Western
India Automobile Association.

Shri Trivedi is the Chairman of the Audit Committees of
Reliance Petroleum Limited, The Zandu Pharmaceutical
Works Limited and Birla Power Solutions Limited. He is
a member of the Audit Committee of Zodiac Clothing
Company Limited, Sai Service Station Limited, Seksaraia
Biswan Sugar Factory Limited and New Consolidated
Construction Company Limited. He is the Chairman of
the Shareholders’/ Investors’ Grievance Committee of
Reliance Petroleum Limited. He is also the Chairman of
the Audit Committee, Corporate Governance and
Stakeholders’ Interface Committee, the Employees Stock
Compensation Committee and the Retail Business
Committee of the Company. He is also a member of the
Shareholders’/Investors’ Grievance Committee and the
Remuneration Committee of the Company.

Shri Trivedi holds 12,200 shares of the Company in his
name as on March 31, 2008.

h) Dr. Dharam Vir Kapur is a Director of the Company
since March 28, 2001. He is an honours Graduate in

Electrical Engineering with wide experience in Power,
Capital Goods, Chemicals and Petrochemicals Industries.

Dr. Kapur had an illustrious career in the Government
sector with a successful track record of building vibrant
organisations and successful project implementation. He
served Bharat Heavy Electricals Limited (BHEL) in
various positions with distinction but his most remarkable
achievement was establishment of a fast growing systems
oriented National Thermal Power Corporation (NTPC)
of which he was the founder Chairman-cum-Managing
Director. For the contribution to success and leadership
of the fledgling organisation, he was described as
Model Manager by the Board of Executive Directors of
World Bank.

Dr. Kapur served as Secretary to the Government of
India in the Ministries of Power, Heavy Industry and
Chemicals & Petrochemicals during 1980-86. He was
also associated with a number of national institutions as
Member, Atomic Energy Commission; Member, Advisory
Committee of the Cabinet for Science and Technology;
Chairman, Board of Governors, IIT Bombay; Member,
Board of Governors, IIM Lucknow and Chairman,
National Productivity Council.

In recognition of his services and significant contributions
in the field of Technology, Management and Industrial
Development, Jawaharlal Nehru Technological
University, Hyderabad conferred on him the degree of
D. Sc.

Dr. Kapur is Chairman (Emeritus) of Jacobs H&G (P)
Limited and Chairman, GKN Driveline (India) Limited
and Drivetech Accessories Limited. He is also a member
of Boards of Directors of Honda Seil Power Products
Limited, Zenith Birla (India) Limited, DLF Power
Limited and DLF Limited. Earlier he was a Director on
the Boards of Tata Chemicals Limited, L&T Limited
and Ashok Leyland Limited. He is Chairman of Audit
Committees of Honda Seil Power Products Limited and
GKN Driveline (India) Limited, Shareholders’/Investors’
Relations Committees of Honda Seil Power Products
Limited and DLF Limited, Chairman’s Executive
Committee of GKN Driveline (India) Limited and
Corporate Governance Committee of DLF Limited. He
is a member of Audit Committee of Zenith Birla (India)
Limited and DLF Limited and of the Remuneration
Committee of Honda Seil Power Products Limited.

He is also a member of the Corporate Governance and
Stakeholders’ Interface Committee, Remuneration
Committee, Retail Business Committee and Health, Safety
and Environment Committee of the Company.

Dr. Kapur holds 6,799 shares of the Company in his
name as on March 31, 2008

Shri Mahesh P. Modi, M.Sc.(Econ.) (London), is a
Director of the Company since March 28, 2001.
He held high positions in Government of India as
Chairman of Telecom Commission; Secretary, Ministry
of Coal; Special Secretary, Insurance and Joint Secretary,

Touching lives. Transforming India.

Ministry of Petroleum, Chemicals and Fertilizers. He has
considerable management experience, particularly in the
fields of energy, insurance, petrochemicals and telecom.

At present, Shri Modi is a Director on the Boards of
ICICI Prudential Life Insurance Company Limited and
Reliance Petroleum Limited. He is the Chairman of the
Audit Committee of ICICI Prudential Life Insurance
Company Limited.

Shri Modi is a member of the Audit Committee and the
Shareholders’/Investors’ Grievance Committee of
Reliance Petroleum Limited. He is also a member of the
Audit Committee, the Employees Stock Compensation
Committee and the Corporate Governance and
Stakeholders’ Interface Committee of the Company.

Shri Modi holds 562 shares of the Company in his name
as on March 31, 2008.

j) Shri S. Venkitaramanan is a Director of the Company
since June 27, 1997. He 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.

Shri Venkitaramanan is a former Governor of Reserve
Bank of India and former Secretary to the Government
of India, Ministry of Finance. He is a Director of Housing
Development Finance Corporation Limited, New Tirupur
Area Development Corporation Limited and Tamil Nadu
Water Investment Company Limited.

Shri Venkitaramanan is a member of the Audit Committee
and the Remuneration Committee of the Company.

Shri Venkitaramanan does not hold any shares of the
Company.

k) Prof. Ashok Misra is a Director of the Company since
April 27, 2005. He is a Ph.D. and M.S. in Polymer
Science & Engineering from the University of
Massachusetts, USA and M.S. in Chemical Engineering
from Tufts University, USA and B. Tech. in Chemical
Engineering from IIT, Kanpur. He has also completed
the Executive Development Program in 1999 and the
programme on “Strategies for Improving Directors’
Effectiveness” in 2003 at the Kellogg School of
Management, Northwestern University, Evanston,
Illinois, USA.

Prof. Misra authored one book on Polymers and published
several articles in international journals and has been
awarded six patents. He is on the editorial boards of four
scientific journals.

Prof. Misra is Director of Indian Institute of Technology
Powai, Mumbai, since May 2000. He is a member of
several professional scientific societies. He is the
President of the Indian National Academy of Sciences
India (NASI); Fellow of the National Academy of
Engineering, Indian Institute of Chemical Engineers,
Indian Plastics Institute and the Maharashtra Academy
of Sciences. He is a member of the Scientific Advisory
Committee to the Cabinet, Government of India. He is
a Member of the International Academic Advisory Panel,

Government of Singapore; International Advisory Board,
College of Engineering, University of California, Santa
Barbara, USA and Member, Independent Scientific
Advisory Board of the World Bank for the African
Institutes of Science & Technology. He is a Director on
the Boards of National Thermal Power Corporation
Limited (NTPC) and Rashtriya Chemicals & Fertilizers
Limited (RCF). He is the Chairman of the Management
Controls Committees of NTPC and Management
Committee of RCF. He is on the Board / Council of
several national educational institutions and serves as
Member on a number of national committees for research
and development programmes.

Prof. Misra holds 220 shares of the Company in his
name as on March 31, 2008.

Prof. Dipak C. Jain is a Director of the Company since
August 4, 2005. He is a Ph.D. in Marketing and M.S. in
Management Science from the University of Texas and
M.S. in Mathematical Statistics from Gauhati University.
Prof. Jain is a distinguished teacher and scholar. He has
been Dean of the Kellogg School of Management,
Northwestern University, Evanston, Illinois, USA since
July, 2001. He has more than 20 years experience in
management and education. He has published several
articles in international journals on marketing and allied
subjects.

Prof. Jain’s academic honors include the Sidney Levy
Award for Excellence in Teaching in 1995; the John D.C.
Little Best Paper Award in 1991; Kraft Research
Professorships in 1989-90 and 1990-91; the Beatrice
Research Professorship in 1987-88; the Outstanding
Educator Award from the State of Assam in India in 1982;
Gold Medal for the Best Post-Graduate of the Year from
Gauhati University in India in 1978; Gold Medal for the
Best Graduate of the Year from Darrang College in Assam
in India in 1976; Gold Medal from Jaycees International
in 1976; the Youth Merit Award from Rotary International
in 1976; and the Jawaharlal Nehru Merit Award,
Government of India in 1976.

Prof. Jain is a Member of American Marketing Association
and the Institute of Management Services. He is a Director
of John Deere & Company, Hartmarx Corporation and
Northern Trust Bank (companies incorporated outside
India). He is a Director of Reliance Retail Limited. He is
also a member of the Retail Business Committee and the
Employees Stock Compensation Committee of the
Company.

Prof. Jain does not hold any shares of the Company.

m) Dr. Raghunath Anant Mashelkar, an eminent scientist
was appointed as a Director of the Company since June
9, 2007. He is a Ph.D. in Chemical Engineering. He is
the President of Global Research Alliance, a network of
publicly funded R&D institutes from Asia-Pacific, Europe
and USA with over 60,000 scientists.

Formerly, Dr. Mashelkar was the Director General of the
Council of Scientific and Industrial Research (CSIR) for
over eleven years. He was also the President of Indian
National Science Academy (INSA).

RELIANCE INDUSTRIES LIMITED 51

Dr. Mashelkar is only the third Indian Engineer to have
been elected as Fellow of Royal Society (FRS), London in
the twentieth century. He was elected Foreign Associate
of National Academy of Science, USA (2005), Foreign
Fellow of US National Academy of Engineering (2003),
Fellow of Royal Academy of Engineering, U.K. (1996),
and Fellow of World Academy of Art & Science, USA
(2000).

Twenty-six universities have honoured him with honorary
doctorates, which include Universities of London, Salford,
Pretoria, Wisconsin and Delhi.

Dr. Mashelkar has won over 50 awards and medals from
several bodies for his outstanding contribution in the
field of science and technology. He is the only scientist
so far to have won the JRD Tata Corporate Leadership
Award (1998) and the Star of Asia Award (2005) at the
hands of George Bush Sr., the former president of USA.

The President of India honoured Dr. Mashelkar with
Padmashri (1991) and with Padmabhushan (2000), which
are two of the highest civilian honours in recognition of
his contribution to nation building.

Dr. Mashelkar is a Director of ICICI Knowledge Park,
Thermax Limited, Tata Motors Limited, Piramal Life
Sciences Limited, Indigene Pharmaceuticals Private
Limited, GeneMedix Biological Private Limited and
Hindustan Unilever Ltd.

Dr. Mashelkar is a member of the Audit committee of
Tata Motors Limited.

Dr. Mashelkar does not hold any shares of the Company.

B. Scheduling and selection of Agenda Items for Board

meetings

(i) Minimum six pre-scheduled Board meetings are held
every year. Apart from the above, additional Board
meetings are convened by giving appropriate notice
to address the specific needs of the Company. In
case of business exigencies or urgency of matters,
resolutions are passed by circulation.

(ii)

The meetings are usually held at the Company’s
Registered Office at Maker Chambers IV, 222,
Nariman Point, Mumbai - 400 021.

(iii) All divisions/departments of the Company are
advised to schedule their work plans well in advance,
particularly with regard to matters requiring
discussion / approval / decision at the Board /
Committee meetings. All such matters are
communicated to the Company Secretary in
advance so that the same could be included in the
Agenda for the Board / Committee meetings.

(iv) The Board is given presentations covering Finance,
Sales, Marketing, major business segments and
operations of the Company, global business
environment, all business areas of the Company
including business opportunities, business strategy
and the risk management practices before taking
on record the quarterly / annual financial results of
the Company.

The information required to be placed before the
Board includes :

3. Board Meetings, its Committee Meetings and Procedures

Institutionalised decision making process

The Board of Directors is the apex body constituted by
the shareholders for overseeing the overall functioning
of the Company. The Board provides and evaluates the
strategic direction of the Company, management policies
and their effectiveness and ensures that the long-term
interests of the shareholders are being served. The
Chairman and Managing Director is assisted by the
Executive Directors / senior managerial personnel in
overseeing the functional matters of the Company.

The Board has constituted seven standing Committees,
namely Audit Committee, Corporate Governance and
Stakeholders’ Interface Committee, Employees Stock
Compensation Committee, Finance Committee, Health,
Safety and Environment Committee, Remuneration
Committee and Shareholders’ / Investors’ Grievance
Committee. The Board is authorized to constitute
additional functional Committees, from time to time,
depending on the business needs.

The internal Guidelines for Board / Board Committee
meetings facilitate the decision making process at the
meetings of the Board/Committees in an informed and
efficient manner. The following sub-sections deal with
the practice of these guidelines at Reliance.

General notices of interest of Directors.

Terms of reference of Board Committees.

The minutes of the Board meetings of unlisted
subsidiary companies.

Minutes of meetings of Audit Committee and
other Committees of the Board, as also
resolutions passed by circulation.

Appointment or resignation of Chief Financial
Officer and Company Secretary.

Annual operating plans of businesses, capital
budgets and any updates.

Quarterly results for the Company and its
operating divisions or business segments.

Dividend declaration.

Quarterly summary of all long-term borrowings
made, bank guarantees issued, loans and
investments made.
Sale of material nature, of investments,
subsidiaries, assets, which is not in normal course
of business.
Statement of significant transactions and
arrangements entered by unlisted subsidiary
companies.

(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
52

Touching lives. Transforming India.

Quarterly details of foreign exchange exposures
and the steps taken by management to limit
the risks of adverse exchange rate movement,
if material.
Internal Audit findings and External Audit
Reports (through the Audit Committee).
Proposals for investment, mergers and
acquisitions.
Details of any joint venture, acquisitions of
companies or collaboration agreement.
Status of business risk exposures, its
management and related action plans.
(cid:127) Making of loans and investment of surplus

funds.
Non-compliance of any regulatory, statutory
or listing requirements and shareholders service
such as non-payment of dividend, delay in share
transfer (if any), etc.
Show cause, demand, prosecution notices and
penalty notices which are materially
important.
Fatal or serious accidents, dangerous
occurrences, any material effluent or pollution
problems.
Any material default in financial obligations
to and by the Company, or substantial non
payment for goods sold by the Company.
Any issue, which involves possible public or
product liability claims of substantial nature,
including any judgment or order, which may
have passed strictures on the conduct of the
Company or taken an adverse view regarding
another enterprise that can have negative
implications on the Company.
Significant labour problems and their proposed
solutions. Any significant development in
Human Resources / Industrial Relations front
like implementation of Voluntary Retirement
Scheme etc.
Transactions that involve substantial payment
towards goodwill, brand equity or intellectual
property.
Brief on statutory developments, changes in
Government policies etc. with impact thereof,
directors’ responsibilities arising out of any
such developments.
Brief on clarifications made to the press.
The Chairman of the Board and the Company
Secretary in consultation with other concerned
members of the senior management, finalise the
agenda papers for the Board meetings.
C. Board Material distributed in advance

(v)

Agenda and Notes on Agenda are circulated to the
Directors, in advance, in the defined Agenda format. All

material information is incorporated in the Agenda papers
for facilitating meaningful and focused discussions at the
meeting. Where it is not practicable to attach any
document to the Agenda, the same is tabled before the
meeting with specific reference to this effect in the
Agenda. In special and exceptional circumstances,
additional or supplementary item(s) on the Agenda are
permitted.

D. Recording Minutes of proceedings at Board and

Committee meetings

The Company Secretary records the minutes of the
proceedings of each Board and Committee meeting. Draft
minutes are circulated to all the members of the Board /
Committee for their comments. The final minutes are
entered in the Minutes Book within 30 days from
conclusion of the meeting.

E. Post Meeting Follow-up Mechanism

The Guidelines for Board and Committee meetings
facilitate an effective post meeting follow-up, review
and reporting process for the decisions taken by the Board
and Committees thereof. The important decisions taken
at the Board / Board Committee meetings are
communicated to the departments / divisions concerned
promptly. Action taken report on the decisions/minutes
of the previous meeting(s) is placed at the immediately
succeeding meeting of the Board / Committee for noting
by the Board / Committee.

F. Compliance

The Company Secretary while preparing the Agenda,
Notes on Agenda, Minutes etc. of the meeting(s), is
responsible for and is required to ensure adherence to all
the applicable laws and regulations including the
Companies Act, 1956 read with the Rules issued
thereunder and the Secretarial Standards recommended
by the Institute of Company Secretaries of India.

4. Number of Board Meetings held and the dates on which

held

Seven Board meetings were held during the year, as against the
minimum requirement of four meetings. The Company has
held at least one Board meeting in every three months and the
maximum time gap between any such two meetings was not
more than four months. The details of the Board meetings are
as under:

Sl. Date
No.

Board
Strength

April 26, 2007
1
July 28, 2007
2
September 10, 2007
3
October 18, 2007
4
November 19, 2007
5
January 17, 2008
6
7 March 27, 2008

12
13
13
13
13
13
13

No. of
Directors
Present
12
13
11
13
12
12
13

(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
RELIANCE INDUSTRIES LIMITED 53

5. Attendance of Directors at Board Meetings, last Annual General Meeting (AGM) and number of other Directorships

and Chairmanships / Memberships of Committees of each Director in various companies :

Name of the Director Attendance of meetings

during 2007-08

Board
Meetings

Last AGM

No. of Other
Directorship (s)*

Mukesh D. Ambani
Nikhil R. Meswani
Hital R. Meswani

Hardev Singh Kohli
Ramniklal H. Ambani
Mansingh L. Bhakta

Yogendra P. Trivedi

Dr. Dharam Vir Kapur

Mahesh P. Modi

S. Venkitaramanan
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar

7
7
6

6
7
7

7
7
7
4

Yes
Yes
Yes

Yes

Yes
Yes
No
Yes

2
1
3

Nil
2
4

1 1

3
2
1
4

No. of Membership(s)/
Chairmanship(s)
Board Committees of
Other Companies**

Nil
Nil
2
(including 1 as Chairman)
Nil
1 (as Chairman)
3
(including 1 as Chairman)

8
(including 4 as Chairman)
6
(including 4 as Chairman)
3
(including 1 as Chairman)
Nil
Nil
Nil
1

* The Directorships held by Directors as mentioned above, do not include Alternate Directorships and Directorships of Foreign

Companies, Section 25 Companies and Private Limited Companies.

** In accordance with Clause 49, Memberships / Chairmanships of only the Audit Committees and Shareholders’ / Investors’

Grievance Committees of all Public Limited Companies (excluding Reliance Industries Limited) have been considered.

Video/tele-conferencing facilities are also used to facilitate directors traveling abroad or present at other locations to participate
in the meetings.

6. Board Committees :

A. Standing Committees

Details of the Standing Committees of the Board and other
related information are provided hereunder :

(i)

Audit Committee

Composition : The Audit Committee of the Board
comprises three Independent Non-Executive
Directors, namely Shri Yogendra P. Trivedi,
Chairman, Shri S. Venkitaramanan, Vice Chairman,
and Shri Mahesh P. Modi. All the members of the
Audit Committee possess financial / accounting
expertise. The composition of the Audit Committee
meets the requirements of Section 292A of the
Companies Act, 1956 and Clause 49 of the Listing
Agreement.

Shri Vinod M. Ambani is the Secretary to the Audit
Committee.

Objective : The Audit Committee assists the Board
in its responsibility for overseeing the quality and
integrity of the accounting, auditing and reporting

practices of the Company and its compliance with
the legal and regulatory requirements. The
Committee’s purpose is to oversee the accounting
and financial reporting process of the Company,
the audits of the Company’s financial statements,
the appointment, independence and performance
of the statutory auditors, the performance of
internal auditors and the Company’s risk
management policies.

Terms of Reference : The terms of reference /
powers of the Audit Committee are as under :

A. Powers of the Audit Committee:

To investigate any activity within its terms
of reference.

To seek information from any employee.

To obtain outside legal or other professional
advice.

To secure attendance of outsiders with
relevant expertise, if it considers necessary.

Touching lives. Transforming India.

B. The role of the Audit Committee includes:

Oversight of the Company’s financial reporting
process and the disclosure of its financial
information to ensure that the financial
statements are correct, sufficient and credible.

Recommending to the Board, the appointment,
reappointment and, if required, the replacement
or removal of Statutory Auditors and fixation
of audit fees.

Approval of payment to Statutory Auditors for
any other services rendered by the Statutory
Auditors.

Reviewing with the management, the annual
financial statements before submission to the
Board for approval, with particular reference to :
• Matters required to be included in the
Directors’ Responsibility Statement to be
included in the Directors’ Report in terms of
sub-section (2AA) of Section 217 of the
Companies Act, 1956.

• Changes, if any, in accounting policies

and practices and reasons for the same.

• Major accounting entries involving estimates
based on the exercise of judgement by the
management.

• Significant adjustments made in the financial

statements arising out of audit findings.

• Compliance with listing and other legal
requirements relating to financial statements.

• Disclosure of related party transactions.
• Qualifications in draft audit report.

Reviewing with the management, the quarterly
financial statements before submission to the Board
for approval.

Reviewing with the management, the performance
of Statutory and Internal Auditors, adequacy of
internal control systems.

Reviewing the adequacy of internal audit function,
if any, including the structure of the internal audit
department, staffing and seniority of the official
heading the department, reporting structure,
coverage and frequency of internal audit.

Discussion with Internal Auditors any significant
findings and follow up thereon.

the findings of any

Reviewing
internal
investigations by the Internal Auditors into matters
where there is suspected fraud or irregularity or a
failure of internal control systems of a material
nature and reporting the matter to the Board.

10. Discussion with Statutory Auditors before the audit
commences, about the nature and scope of audit as

11.

12.

13.

14.

well as post audit discussion to ascertain any area of
concern.

To look into the reasons for substantial defaults, if
the depositors,
any,
debentureholders, shareholders (in case of non
payment of declared dividends) and creditors.

the payment

To review the functioning of the Whistle Blower
Mechanism.

Carrying out such other function as may be
specifically referred to the Committee by the Board
of Directors and / or other Committees of Directors
of the Company.

To review the following information :
• The management discussion and analysis of
financial condition and results of operations;
• Statement of significant related party
transactions (as defined by the Audit
Committee), submitted by management;
• Management letters / letters of internal
control weaknesses issued by the Statutory
Auditors;

•

Internal audit reports relating to internal
control weaknesses; and

• The appointment, removal and terms of

remuneration of Internal Auditors.

15.

16.

Reviewing the financial statements and in particular
the investments made by the unlisted subsidiaries
of Company.

Review of uses / application of funds raised through
an issue (public issue, rights issue, preferential issue,
etc.).

Meetings : Six meetings of the Audit Committee were
held during the year ended March 31, 2008, as against
the minimum requirement of four meetings.

Attendance of each Member at the Audit
Committee meetings held during the year

Name of the Committee
Member

No. of

meetings meetings
attended

held

Yogendra P. Trivedi,
Chairman
S. Venkitaramanan,
Vice-Chairman
Mahesh P. Modi

6
6

Executives of Accounts Department, Finance
Department, Secretarial Department and Management
Audit Cell and Representatives of the Statutory and
Internal Auditors were invited to attend the Audit
Committee Meetings. The Cost Auditors appointed by

RELIANCE INDUSTRIES LIMITED 55

the Company under Section 233B of the Companies Act,
1956 were also invited to attend the Audit Committee
Meetings, where cost audit reports were discussed.

The Chairman of the Audit Committee was present at
the last Annual General Meeting.

(ii) Corporate Governance and Stakeholders’ Interface

(CGSI) Committee

Composition : The Corporate Governance and
Stakeholders’ Interface Committee of the Board
comprises three Independent Directors, namely, Shri
Yogendra P. Trivedi, Chairman, Dr. Dharam Vir Kapur
and Shri Mahesh P. Modi.

Terms of Reference : The terms of reference of the
Corporate Governance and Stakeholders’ Interface
Committee, inter alia, include the following :

Observance of practices of Corporate Governance
at all levels and to suggest remedial measures
wherever necessary.

Provision of correct inputs to the media so as to
preserve and protect the Company’s image and
standing.

Dissemination of factually correct information to
the investors, institutions and public at large.

Interaction with the existing and prospective FIIs
and rating agencies, etc.

Establishing oversight on important corporate
communication on behalf of the Company with
the assistance of consultants / advisors, if
necessary.

Ensuring institution of standardised channels of
internal communications across the Company to
facilitate a high level of disciplined participation.

Recommendation for nomination of Directors on
the Board.

Selection of Independent Directors :

Considering the requirement of the skill-sets on the Board,
eminent persons having an independent standing in their
respective field/profession and who can effectively
contribute to the Company’s business and policy decisions
are considered by the Corporate Governance and
Stakeholders’ Interface Committee, which also acts as
Nomination Committee for appointment of independent
directors on the Board. The number of directorships and
memberships held on various committees of other
companies by such persons is also considered. The Board
considers the recommendations of the Committee and
takes appropriate decision.

Meetings : Four meetings of the Corporate Governance
and Stakeholders’ Interface Committee were held during
the year ended March 31, 2008.

Attendance of each Member at the CGSI
Committee meetings held during the year

Name of the
Committee
Member

Yogendra P. Trivedi,
Chairman
Dr. Dharam Vir Kapur
Mahesh P. Modi

No. of
meetings
held

No. of
meetings
attended

4
4
4

(iii) Employees Stock Compensation Committee

Composition : The Employees Stock Compensation
Committee of the Board comprises four Directors,
namely, Shri Yogendra P. Trivedi (Chairman), Shri Mahesh
P. Modi, Prof. Dipak C. Jain and Shri Mukesh D. Ambani.

Terms of Reference : The Committee was formed inter
alia to formulate detailed terms and conditions of the
Employees Stock Option Scheme including :

the quantum of options to be granted under
Employees Stock Option Scheme per employee
and in aggregate;

the conditions under which option vested in
employees may lapse in case of termination of
employment for misconduct;

the exercise period within which the employee
should exercise the option and that the option would
lapse on failure to exercise the option within the
exercise period;

the specified time period within which the employee
shall exercise the vested options in the event of
termination or resignation of an employee;

the right of an employee to exercise all the options
vested in him at one time or at various points of
time within the exercise period;

the procedure for making a fair and reasonable
adjustment to the number of options and to the
exercise price in case of corporate actions such as
rights issues, bonus issues, merger, sale of division
and others;

the grant, vest and exercise of option in case of
employees who are on long leave; and

the procedure for cashless exercise of options, if
any.

Meetings : Two meetings of the Employees Stock
Compensation Committee were held during the year ended
March 31, 2008

Touching lives. Transforming India.

Attendance of each Member at the Employees Stock
Compensation Committee meetings held during
the year

Other transactions or financial issues that the Board
may desire to have them reviewed by the Finance
Committee.

Name of the
Committee
Member

Yogendra P. Trivedi,
Chairman
Mahesh P. Modi
Prof. Dipak C. Jain
Mukesh D. Ambani

No. of
meetings
held

No. of
meetings
attended

10. Delegate authorities from time to time to the
Executives / Authorised persons to implement the
decisions of the Committee.

2
2
2
2

11. Regularly review and make recommendations about
changes to the charter of the Committee

Finance Committee held one meeting during the year,
which was attended by all its members.

(v) Health, Safety and Environment (HS&E) Committee

Composition : The Health, Safety and Environment
Committee of the Board comprises three Directors,
namely, Shri Hital R. Meswani, Chairman, Shri Hardev
Singh Kohli and Dr. Dharam Vir Kapur.

Terms of Reference : The Health, Safety and
Environment Committee has been constituted, inter alia,
to monitor and ensure maintaining the highest standards
of environmental, health and safety norms and
compliance with applicable pollution and environmental
laws at all works / factories / locations of the Company
and to recommend measures, if any, for improvement in
this regard.

The Committee reviews, inter alia, the Health Safety
and Environment Policy of the Company, performance
on health, safety and environment matters and the
procedures and controls being followed at various Plants
of the Company and compliance with the relevant
statutory provisions.

Meetings : Four meetings of the Health, Safety and
Environment Committee were held during the year ended
March 31, 2008.

Attendance of each Member at the HS&E
Committee meetings held during the year

Name of the
Committee
Member

Hital R. Meswani,
Chairman
Hardev Singh Kohli
Dr. Dharam Vir Kapur

No. of
meetings
held

No. of
meetings
attended

4
4
4

(iv) Finance Committee

Composition : The Finance Committee of the Board
comprises three Directors, namely, Shri Mukesh D.
Ambani, Chairman, Shri Nikhil R. Meswani and Shri Hital
R. Meswani.

Terms of Reference :

Review the Company’s financial policies, risk
assessment and minimisation procedures, strategies
and capital structure, working capital and cash flow
management and make such reports and
recommendations to the Board with respect thereto
as it may deem advisable.

Review banking arrangements and cash
management.

Exercise all powers to borrow moneys (otherwise
than by issue of debentures), and taking necessary
actions connected therewith including refinancing
for optimisation of borrowing costs.

Giving of guarantees / issuing letters of comfort /
providing securities within the limits approved by
the Board.

Borrow monies by way of loan and / or issuing and
allotting Bonds / Notes denominated in one or more
foreign currencies in international markets, for the
purpose of refinancing the existing debt, capital
expenditure, general corporate purposes including
working capital requirements and possible strategic
investments within the limits approved by the
Board.

Provide corporate guarantee / performance
guarantee by the Company within the limits
approved by the Board.

Approve opening and operation of Investment
Management Accounts with Foreign Banks and
appoint them as Agents, establishment of
representative / sales offices in or outside India etc.

Carry out any other function as is mandated by the
Board from time to time and / or enforced by any
statutory notification, amendment or modification
as may be applicable.

RELIANCE INDUSTRIES LIMITED 57

(vi) Remuneration Committee

Composition : The Remuneration Committee of the
Board comprises four Independent Directors, namely,
Shri Mansingh L. Bhakta, Chairman, Shri Yogendra P.
Trivedi, Shri S. Venkitaramanan and Dr. Dharam Vir
Kapur.

Terms of Reference : The Remuneration Committee
has been constituted to recommend / review remuneration
of the Managing Director and Whole-time Directors,
based on their performance and defined assessment
criteria.

Meetings : There was no meeting of the Remuneration
Committee during the year.

Remuneration policy, details of remuneration and
other terms of appointment of Directors :

The remuneration policy of the Company is directed
towards rewarding performance, based on review of
achievements on a periodic basis.

The remuneration policy is in consonance with the
existing Industry practice.

Remuneration paid to the Chairman & Managing Director and the Whole-time Directors, including the number
of Stock Options granted during 2007-08:

Name of the Director

Salary

Perquisites
and
allowances

Retiral
benefits

Commission
payable

Total

Rs. in lacs

Mukesh D. Ambani

Nikhil R. Meswani

Hital R. Meswani

Hardev Singh Kohli

60.00

15.00

41.67

48.00

24.00

67.09

18.75

4.54

4.51

17.34

4,275.44

1,068.86

Nil

4,402.19

1,112.40

1,112.37

126.10

Stock
Options
granted
Nos.
Nil*

7,00,000

50,000

The tenure of office of the Managing Director and Whole-time Directors is for a period of 5 years from their respective dates
of appointments and can be terminated by either party by giving three months’ notice in writing. There is no separate
provision for payment of severance fees.

*The Chairman and Managing Director, Shri Mukesh D. Ambani, being the Promoter of the Company, has not been granted
any stock option in compliance with the SEBI Guidelines. The other relevant details of stock options, including exercise
period, vesting period etc. are covered elsewhere in this Report.

The Non-Executive Directors are paid sitting fee at the rate of Rs.20,000/- for attending each meeting of the Board and / or
Committee thereof. Each of the Non-Executive Directors is also paid commission amounting to Rs.21,00,000/- on an annual
basis, provided that the total commission payable to such Directors shall not exceed 1% of the net profits of the Company.

Sitting fee and commission to the Non-Executive Directors, for 2007-08 are as detailed below :

Name of the Non–Executive Director
Ramniklal H. Ambani
Mansingh L. Bhakta
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Mahesh P. Modi
S.Venkitaramanan
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar
Total

Sitting Fee
1.40
2.60
5.00
3.00
3.80
2.60
1.40
1.80
0.80
22.40

Commission
21.00
21.00
21.00
21.00
21.00
21.00
21.00
21.00
17.50
185.50

Rs. in lacs
Total
22.40
23.60
26.00
24.00
24.80
23.60
22.40
22.80
18.30
207.90

Touching lives. Transforming India.

During the year, the Company has paid Rs.86.09 lacs as
professional fees to M/s. Kanga & Co., a firm in which
Shri M.L. Bhakta, Director of the Company, is a partner.
There were no other pecuniary relationships or
transactions of the Non-Executive Directors vis-à-vis
the Company. The Company has not granted any stock
option to any of its Non-Executive Directors.

(vii) Shareholders’ / Investors’ Grievance Committee

Composition : The Shareholders’ / Investors’ Grievance
Committee (the Committee) of the Board, comprises
five Directors, namely, Shri Mansingh L. Bhakta,
(Chairman), Shri Yogendra P. Trivedi, Shri Mukesh D.
Ambani, Shri Nikhil R. Meswani and Shri Hital R.
Meswani.

Terms of Reference : The Committee, inter alia,
approves issue of duplicate certificates and oversees and
reviews all matters connected with transfer of securities
of the Company. The Committee also looks into
redressal of shareholders’/ investors’ complaints related
to transfer of shares, non-receipt of Balance Sheet, non-
receipt of declared dividends, etc. The Committee
oversees performance of the Registrar and Transfer
Agents of the Company, and recommends measures for
overall improvement in the quality of investor services.
The Committee also monitors implementation and
compliance of the Company’s Code of Conduct for
Prohibition of Insider Trading in pursuance of SEBI
(Prohibition of Insider Trading) Regulations, 1992. The
Board has delegated the power of approving transfer of
securities to the Managing Director and / or the Company
Secretary.

Meetings : Six meetings of the Shareholders’/Investors’
Grievance Committee (SIGC) were held during the year
ended March 31, 2008.

Attendance of each Member at the SIGC meetings
held during the year

Name of the
Committee
Member

Mansingh L. Bhakta,
Chairman

Yogendra P. Trivedi

Mukesh D. Ambani

Nikhil R. Meswani

Hital R. Meswani

Compliance Officer

No. of
meetings
held

No. of
meetings
attended

Shri Vinod M. Ambani is the Compliance Officer for
complying with the requirements of SEBI Regulations
and the Listing Agreements with the Stock Exchanges in
India.

Investor Grievance Redressal

Number of complaints received and resolved to the
satisfaction of investors during the year under review
and their break-up are as under :

Type of Complaints

Number of
Complaints

Non-Receipt of Annual Reports

Non-Receipt of Dividend
Warrants

Non-Receipt of Interest /
Redemption Warrants

Non-Receipt of Certificates

Total

320

4476

1506

1045

7347

There were no outstanding complaints as on March 31,
2008. 136 requests for transfers and 876 requests for
dematerialisation were pending for approval as on March
31, 2008, which were approved and dealt with by April 2,
2008

B. Functional Committees:

The Board is authorized to constitute one or more
Functional Committees delegating thereto powers and
duties with respect to specific purposes. Meetings of such
Committees are held as and when the need arises. Time
schedule for holding the meetings of such Functional
Committees are finalised in consultation with the
Committee Members.

The Retail Business Committee, comprising Shri Yogendra
P. Trivedi, Chairman, Dr. Dharam Vir Kapur and Prof.
Dipak C. Jain, was constituted to study the retail business
opportunity.

Procedure at Committee Meetings

The Company’s guidelines relating to Board meetings are
applicable to Committee meetings as far as may be practicable.
Each Committee has the authority to engage outside experts,
advisers and counsels to the extent it considers appropriate to
assist in its work. Minutes of the proceedings of the Committee
meetings are placed before the Board meetings for perusal
and noting.

7. Code of Business Conduct and Ethics for Directors

and Management Personnel

The Code of Business Conduct and Ethics for Directors and
management personnel (‘the Code’), as recommended by the
Corporate Governance and Stakeholders’ Interface Committee
and adopted by the Board, is a comprehensive Code applicable
to all Directors and management personnel. The Code while

RELIANCE INDUSTRIES LIMITED 59

laying down, in detail, the standards of business conduct, ethics
and governance, centres around the following theme :

“The Company’s Board of Directors and Management
Personnel are responsible for and are committed to setting
the standards of conduct contained in this Code and for updating
these standards, as appropriate, to ensure their continuing
relevance, effectiveness and responsiveness to the needs of
local and international investors and all other stakeholders as
also to reflect corporate, legal and regulatory developments.
This Code should be adhered to in letter and in spirit.”

A copy of the Code has been put on the Company’s website
www.ril.com.

The Code has been circulated to all the members of the Board
and management personnel and the compliance of the same is
affirmed by them annually.

A declaration signed by the Chairman & Managing Director
of the Company is given below :

I hereby confirm that the Company has obtained from all the
members of the Board and management personnel, affirmation
that they have complied with the Code of Business Conduct
and Ethics for Directors and management personnel in respect
of the financial year 2007-08.

Mukesh D. Ambani
Chairman & Managing Director

8. Whistle Blower Mechanism

The Company promotes ethical behaviour in all its business
activities and has put in place mechanism of reporting illegal
or unethical behaviour. Employees may report violations of
laws, rules, regulations or unethical conduct to their immediate
supervisor / notified person. The reports received from

10. General Body Meetings

employees will be reviewed by the Ethics Office and the
Corporate Governance and Stakeholders’ Interface
Committee. The Directors and management personnel are
obligated to maintain confidentiality of such reportings and
ensure that the whistle blowers are not subjected to any
discriminatory practices.

Subsidiary Monitoring Framework

All the subsidiary companies of the Company are Board
managed with their Boards having the rights and obligations
to manage such companies in the best interest of their
stakeholders. As a majority shareholder, the Company
nominates its representatives on the Boards of subsidiary
companies and monitors the performance of such companies,
inter alia, by the following means -

Financial statements, in particular the investments made
by the unlisted subsidiary companies, are reviewed
quarterly by the Audit Committee of the Company.

b) All minutes of the meetings of the unlisted subsidiary
companies are placed before the Company’s Board
regularly.

c) A statement containing all significant transactions and
arrangements entered into by the unlisted subsidiary
companies is placed before the Company’s Board.

Shri Yogendra P. Trivedi and Shri Mahesh P. Modi, Independent
Directors of the Company have been appointed as Independent
Directors on the Board of Reliance Petroleum Limited, a listed
subsidiary of the Company. Prof. Dipak C. Jain, Independent
Director of the Company has been appointed as a Director on
the Board of Reliance Retail Limited, a subsidiary of the
Company.

(A) Annual General Meetings:
Location, date and time of the Annual General Meetings held during the preceding 3 years and the Special Resolutions passed thereat
are as follows:
Year

Special Resolutions passed

Date and Time

Location

2004-05

2005-06

2006-07

Birla Matushri
Sabhagar, 19
Marine Lines,
Mumbai-400 020

Birla Matushri
Sabhagar, 19
Marine Lines,
Mumbai- 400 020

Birla Matushri
Sabhagar, 19
Marine Lines,
Mumbai-400 020

August 3, 2005
11.00 a.m.

June 27, 2006
11.00 a.m.

October 12, 2007
11.00 a.m.

1 . For re-appointment of Shri Hardev Singh Kohli as the

Executive Director of the Company.

2 . For payment of commission to the Directors of the
Company other than the Managing Director and
Wholetime Directors.

1 . For approving the Employees Stock Option Scheme
for granting stock options to the employees of the
Company.

2. For extension of the Employees Stock Option Scheme
to the directors and employees of the Company’s
subsidiaries.

1 . For payment of enhanced commission to the Directors
of the Company other than the Managing Director
and Wholetime Directors.

Touching lives. Transforming India.

(B) Special Resolution passed through Postal Ballot:

No special resolution was passed through Postal
Ballot during 2007-08.

A Special Resolution was passed on March 29, 2007,
by the Company’s members through postal ballot for
preferential issue of 12,00,00,000 warrants @ Rs.1,402
per warrant to entities in the Promoter Group,
convertible into an equal number of equity shares of
the Company.

11. 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 relatives, or subsidiaries,
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.
Attention of Members is drawn to the disclosures of
transactions with the related parties set out in Notes on
Accounts - Schedule ‘O’, forming part of the Annual
Report.

A total of 12,00,00,000 warrants were allotted on
preferential basis on April 12, 2007, to entities in the
Promoter Group, in accordance with the SEBI (Disclosure
and Investor Protection) Guidelines, 2000. These
warrants are exercisable within a maximum period of 18
months from the date of allotment, into an equal number
of fully paid-up equity shares of the Company.

The Company’s major related party transactions are
generally with its Subsidiaries and Associates. The related
party transactions are entered into based on considerations
of various business exigencies such as synergy in
operations, sectoral specialisation and the Company’s
long term strategy for sectoral investments, optimization
of market share, profitability, legal requirements, liquidity
and capital resources of Subsidiaries and Associates.

All related party transactions are negotiated on arms
length basis and are intended to further the interests of
the Company.

b. Disclosure of Accounting Treatment

The Company has continued to adjust the foreign
currency exchange differences on amounts borrowed for
acquisition of fixed assets, to the carrying cost of fixed
assets in compliance with Schedule VI to the Companies
Act, 1956 as per legal advice received, which is at variance
to the treatment prescribed in Accounting Standard (AS11)
on “Effects of Changes in Foreign Exchange Rates”
notified in the Companies (Accounting Standards) Rules,
2006. Had the treatment as per AS 11 been followed, the
net profit after tax for the year would have been higher
by Rs. 30 crore ($ 7.5 million).

c. Details of non-compliance by the Company,
penalties, strictures imposed on the Company by
Stock Exchanges or SEBI, or any other statutory
authority, on any matter related to capital markets,
during the last three years.

There has been no instance of non-compliance by the
Company on any matter related to capital markets during
the last three years and hence no penalties or strictures
have been imposed on the Company by the Stock
Exchanges or SEBI or any other statutory authority.

12. Means of Communication

(a) Half Yearly Reports : Half Yearly Reports covering
financial results are sent to members at their registered
addresses.

(b) Quarterly Results : Quarterly Results are published in
‘The Economic Times’ and ‘Maharashtra Times’.

(c) News Releases, Presentations, etc. : Official news
releases, detailed presentations made to media, analysts,
institutional investors, etc. are displayed on the
Company’s website www.ril.com. Official Media Releases
are sent to the Stock Exchanges.

(d) Website : The Company’s website www.ril.com contains
a separate dedicated section ‘Investor Relations’ where
shareholders information is available. The Annual Report
of the Company is also available on the website in a
user-friendly and downloadable form.

(e) Annual Report : Annual Report containing, inter alia,
Audited Annual Accounts, Consolidated Financial
Statements, Directors’ Report, Auditors’ Report and other
important information is circulated to members and
others entitled thereto. The Management Discussion
and Analysis (MD&A) Report forms part of the
Annual Report.

(f) Chairman’s Communique : Printed copy of the
Chairman’s Speech is distributed to all the shareholders
at the Annual General Meetings. It is also sent to all
shareholders who do not attend the Annual General
Meeting. The same is also placed on the website of the
Company.

(g) Reminder to Investors : Reminders for Unpaid
Dividend / Unpaid Interest on Debentures are sent to the
Shareholders / Debentureholders as per records
every year.

(h) SEBI EDIFAR : Annual Report, Quarterly Results,
Shareholding Pattern, etc. of the Company were
the SEBI EDIFAR website
also posted on
www.sebiedifar.nic.in till the quarter ended September
2007, after which the same was replaced with
Corporate Filing and Dissemination System.

RELIANCE INDUSTRIES LIMITED 61

(i) Corporate Filing and Dissemination System
(CFDS) : The CFDS portal jointly owned, managed
and maintained by BSE and NSE is a single source to
view information filed by listed companies. From the
quarter beginning October 2007, all disclosures and
communications
filed
electronically through the CFDS portal. Hard copies
of the said disclosures and correspondence are also
filed with the Exchanges.

to BSE & NSE are

(j) Designated Exclusive email-id : The Company has
designated the following email-ids exclusively for
investor servicing.

(a) For queries on Annual Report -
Investor_relations@ril.com

(b) For queries in respect of shares in physical mode -

rilinvestor@karvy.com

(k)

Shareholders’ Feedback Survey : The Company
sent feedback form seeking shareholders’ views on
various matters relating to investor services and the
Annual Report 2006-07.

The shareholders were requested to rate the services
on five parameters, viz., (1) Excellent, (2) Very Good,
(3) Good, (4) Satisfactory and (5) Unsatisfactory.

Many shareholders participated and sent their feedback
to the Company. The feedback received from the
shareholders was placed before the Shareholders’ /
Investors’ Grievance Committee.

An analysis of the feedback received from the
shareholders is given hereunder:

13. General Shareholder Information

13.1 Company Registration Details :

The Company is registered in the State of Maharashtra,
India. The Corporate Identity Number (CIN) allotted to
the Company by the Ministry of Corporate Affairs (MCA)
is L17110MH1973PLC019786.

13.2 Annual General Meeting (Day, Date, Time and Venue):

Thursday, June 12, 2008 at 11.00 a.m.
Birla Matushri Sabhagar, 19, New Marine Lines,
Mumbai 400020

13.3 Financial Calendar (tentative)

Financial Year : April 1, 2008 to March 31, 2009

Results for the quarter ending :

(cid:127) June 30, 2008

- Third week of July, 2008

(cid:127) September 30, 2008

- Third week of October,

2008

(cid:127) December 31, 2008

- Third week of January,

2009

(cid:127) March 31, 2009

- Third week of April,

2009

Annual General Meeting

- June, 2009

13.4 Book Closure Period

- Saturday, May 10, 2008
to Saturday, May 17,
2008 (both days
inclusive), for payment
of dividend.

13.5 Dividend Payment Date

- On or after June 12,

2008

Touching lives. Transforming India.

13.6 Listing of Equity Shares, Debt Securities and Global Depository Receipts (GDRs) on Stock Exchanges, Payment

Code/Trading Symbol

ISIN/ CUSIP

500325

RELIANCE EQ

INE002A01018

RILYP

759470107

of Listing Fee, Stock Codes etc.

Exchange
A Equity Shares

Bombay Stock Exchange Limited, (BSE),
Phiroze JeejeebhoyTowers, Dalal Street,
Mumbai 400 001.
National Stock Exchange of India Limited (NSE),
‘‘Exchange Plaza”,
Bandra-Kurla Complex,
Bandra (E), Mumbai 400 051.

B GDRs

Luxembourg Stock Exchange,11,
Avenue de la Porte-Neuve, L-2227
Luxembourg.
Also traded on PORTAL System (NASDAQ, USA)
and IOB System (London Stock Exchange)
Overseas Depository
The Bank of New York Mellon Corporation,
101 Barclay Street,
New York NY 10286 USA.

Domestic Custodian
ICICI Bank Limited,
Empire Complex,
E7/F7, 1st Floor,414, Senapati Bapat Marg,
Lower Parel, Mumbai 400013.

Payment of Listing Fees : Annual listing fee for the year 2008-09 (as applicable) has been paid by the Company to
BSE and NSE. Annual maintenance and listing agency fee for the calendar year 2008 has been paid by the Company to
the Luxembourg Stock Exchange.

C Debt Securities

The Wholesale Debt Market(WDM) Segment of NSE.

Debenture Trustees

(1) Axis Bank Limited

Maker Tower F, 13th Floor,
Cuffe Parade, Colaba,
Mumbai 400 005.

(2)

IDBI Trusteeship Services Limited
Asian Building, Ground Floor,
17, R. Kamani Marg, Ballard Estate,
Mumbai 400 023.

RELIANCE INDUSTRIES LIMITED 63

13.7

Stock Market Data

Month

(In Rs. per share)

Bombay Stock Exchange (BSE)

National Stock Exchange (NSE)

Month’s
High Price

Month’s
Low Price

Month’s
High Price

Month’s
Low Price

April, 2007

May, 2007

June, 2007

July, 2007

August, 2007

September, 2007

October, 2007

November, 2007

December, 2007

January, 2008

February, 2008

March, 2008

1,625.00

1,785.00

1,779.00

1,948.00

1,969.90

2,426.00

2,850.00

3,235.00

2,960.00

3,252.10

2,650.00

2,442.00

1,305.00

1,555.05

1,640.00

1,680.00

1,700.00

1,945.00

2,264.25

2,605.00

2,654.00

2,120.00

2,230.00

2,120.00

1626.60

1797.80

1,800.00

1,948.50

1970.00

2,426.00

2,989.00

2.928.00

2,988.00

3,298.00

2,642.00

2,428.40

1305.25

1,531.25

1,647.10

1,676.10

1,683.20

1,921.25

2,197.70

2,577.00

2,651.55

2,120.00

2,235.00

2,120.00

Source: BSE & NSE websites

The closing market price per equity share on April 21, 2008 is Rs.2642.15 on BSE and Rs. 2643.60 on NSE.

13.8

Share price performance in comparison to broad based indices - BSE Sensex and NSE Nifty as on March 31, 2008

Percentage Change in

RIL Share
price

Sensex

Financial Year

2007-08

2 years

3 years

5 years

10 years

65.49

184.40

438.09

962.66

1560.67

19.68

38.69

140.95

413.15

301.89

2007-08

2 years

3 years

5 years

10 years

Percentage Change in

RIL Share
price

Nifty

65.35

184.88

438.31

956.96

1579.67

23.89

39.15

132.58

384.00

323.00

Touching lives. Transforming India.

13.9

Registrars and Transfer Agents :

Karvy Computershare Private Limited
46, Avenue 4, Street No.1
Banjara Hills Hyderabad 500 034
E-Mail: rilinvestor@karvy.com
Telephone Nos. : +91-40-23320666 /

Meeting. The Company obtains from a Company
Secretary in Practice half-yearly certificate of
compliance with the share transfer formalities as required
under Clause 47 (c) of the Listing Agreement with Stock
Exchanges and files a copy of the certificate with the
Stock Exchanges.

23320711/ 3323037

13.11 Distribution of Shareholding as on March 31, 2008

Fax No.: +91 40 2332 3058

List of Investor Service Centres of Karvy Computershare
Private Limited forms part of the Annual Report.

13.10

Share Transfer System :

Presently, the share transfers which are received in
physical form are processed and the share certificates
returned within a period of 7 days from the date of receipt,
subject to the documents being valid and complete in all
respects. The Board has delegated the authority for
approving transfer, transmission etc. of the Company’s
securities to the Managing Director and /or Company
Secretary. A summary of transfer / transmission of
securities of the Company so approved by the Managing
Director / Company Secretary, is placed at every Board

13.12 Shareholding Pattern as on March 31, 2008

Cate -
gory
code

(A)

Category of Shareholder

Number of
Shareholders

Total number
of Shares

As a
percentage of
(A+B+ C)

Shareholding of Promoter and
Promoter Group1

(1)

Indian

(a)

(b)

(c)

(d)

(e)

Individuals / Hindu Undivided Family

Central Government / State

Government(s)

Bodies Corporate

Financial Institutions / Banks

Any other (specify)

i. Petroleum Trust (through Trustees
for sole beneficiary-M/s. Reliance
Industrial Investments and
Holdings Limited.)

Sub - Total (A) (1)

(2)

Foreign

(a)

(b)

(c)

(d)

Individuals (Non-Resident
Individuals / Foreign Individuals)

Bodies Corporate

Institutions

Any other (specify)

Sub - Total (A) (2)

1 05 86 013

0.73

63 14 58 707

10 46 60 154

74 67 04 874

0.00

43.44

0.00

7.20

51.37

0.00

RELIANCE INDUSTRIES LIMITED 65

Cate -
gory
code

Category of Shareholder

Total Shareholding of Promoter
and Promoter Group
(A) = (A)(1) + (A)(2)

(B)

Public Shareholding2

(1)

Institutions

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

Mutual Funds / UTI

Financial Institutions / Banks

Central Government / State
Government(s)

Venture Capital Funds

Insurance Companies

Foreign Institutional Investors

Foreign Venture Capital Investors

Any other (specify)

Sub - Total (B) (1)

(2)

Non-institutions

(a)

(b)

Bodies Corporate

Individuals

i. Individual shareholders holding
nominal share capital up to Rs. 1 lac

ii. Individual shareholders holding
nominal share capital in excess
of Rs. 1 lac

(c)

Any other (specify)

Number of
Shareholders

Total number
of Shares

As a
percentage of
(A+B+ C)

74 67 04 874

51.37

498

455

1 058

3 95 50 061

17 51 103

37 42 983

8 36 53 619

25 91 36 306

2.72

0.12

0.26

0.00

5.75

17.83

0.00

2 113

38 78 34 072

26.68

10 939

7 22 05 802

4.97

20 90 530

16 17 01 166

11.12

463

1 96 20 455

1.35

i. NRIs/OCBs

ii. Pending Confirmation

Sub - Total (B) (2)

Total Public Shareholding
(B) = (B)(1) + (B)(2)

TOTAL (A) + (B)

Shares held by Custodians and
against which Depository
Receipts have been issued

26 151

21 28 083

21 30 196

21 30 248

GRAND TOTAL (A) + (B) + (C)

21 30 249

1 16 27 417

26 51 54 840

65 29 88 912

139 96 93 786

0.80

0.00

18.24

44.92

96.29

5 39 54 815

145 36 48 601

3.71

100.00

(C)

1For definitions of “Promoter Shareholding” and “Promoter Group” refer to Clause 40A of Listing Agreement

2For definition of “Public Shareholding”, refer to Clause 40A of Listing Agreement

Touching lives. Transforming India.

13.13 Top 10 Shareholders as on March 31, 2008

Sl.No.

Name of the Shareholder(s)

Petroleum Trust (through Trustees for sole beneficiary-
M/s Reliance Industrial Investments and Holdings Ltd.)

Life Insurance Corporation of India

Ekansha Enterprise Private Limited

Bhumika Trading Private Limited

Eklavya Mercantile Private Limited

The Bank of New York Mellon as Depository (for GDRs)

Farm Enterprises Limited

Bahar Trading Private Limited

Anumati Mercantile Private Limited

Madhuban Merchandise Private Limited

TOTAL

No. of Shares

% of Total
Shareholding

10 46 60 154

7 11 54 778

6 22 86 240

6 14 15 983

6 13 37 013

5 39 54 815

4 60 38 645

4 41 47 728

4 39 18 407

3 42 33 723

7.20

4.89

4.28

4.22

3.71

3.17

3.04

3.02

2.36

58 31 47 486

40.12

13.14 Shareholding Pattern by Size as on March 31, 2008

Sl.

No.

Category

Electronic

Physical

Total

(Shares)

Holders

% to
total
Shares

Holders

1 - 500 10 13 995

6 94 81 772

4.78 10 64 925 4 71 94 874

3.25 20 78 920

11 66 76 646

501 - 1000

25 733

1 81 57 016

1001 - 2000

10 006

1 38 71 937

2001 - 3000

2 634

64 65 103

3001 - 4000

1 107

38 61 004

4001 - 5000

660

29 92 866

5001 - 10000

1 048

73 28 168

10001 - 20000

570

81 76 865

1.25

0.95

0.44

0.27

0.21

0.50

0.56

5 901

40 66 460

0.28

31 634

2 22 23 476

1 689

23 05 895

0.16

11 695

1 61 77 832

358

8 81 713

0.06

2 992

73 46 816

152

5 35 160

0.04

1 259

43 96 164

4 02 063

0.03

748

33 94 929

101

7 25 290

0.05

1 149

80 53 458

6 17 073

0.04

615

87 93 938

% to
total
Shares

8.03

1.53

1.11

0.51

0.30

0.23

0.55

0.60

Above 20000

1 341

126 39 09 315

86.95

26 76 027

0.18

1 375 126 65 85 342

87.13

TOTAL 10 57 094

139 42 44 046

95.91 10 73 293 5 94 04 555

4.09 21 30 387 145 36 48 601 100.00

RELIANCE INDUSTRIES LIMITED 67

13.15 Geographical Distribution of Shareholders as on March 31, 2008

Sl.

Name of

the City

Electronic

Holders %
age

Physical

Total

% Holders
age

%
age

Shares % Holders %
age

age

%
age

1 Mumbai

2 49 420 11.71 129 77 33 558 89.27

1 84 114

8.64

1 59 98 391 1.10

4 33 534

20.35 131 37 31 949

90.37

2 Delhi

3 Ahmedabad

4 Kolkata

Bengaluru

Chennai

Pune

8 Hyderabad

9 Vadodara

84 113

60 180

48 134

42 694

35 017

36 808

25 590

30 344

3.95

2.82

2.26

2.00

1.64

1.73

1.20

1.42

1 47 87 495

1 43 63 651

74 58 385

53 73 067

57 25 753

48 62 690

25 32 567

37 18 186

1.02

0.99

0.51

0.37

0.39

0.33

0.17

0.26

94 843

63 485

44 837

31 201

29 161

21 922

26 034

22 617

4.45

2.98

2.10

1.46

1.37

1.03

1.22

1.06

52 87 418 0.36

1 78 956

29 07 069 0.20

1 23 665

23 48 397 0.16

92 971

17 12 655 0.12

73 895

14 84 418 0.10

64 178

12 71 944 0.09

58 730

11 74 138 0.08

51 624

10 60 420 0.07

52 961

8.40

5.80

4.36

3.47

3.01

2.76

2.42

2.49

2 00 74 913

1 72 70 720

98 06 782

70 85 722

72 10 171

61 34 634

37 06 705

47 78 606

10 Others

4 44 794 20.88

3 76 88 694

2.59

5 55 079 26.06

2 61 59 705 1.80

9 99 873

46.93

6 38 48 399

1.38

1.19

0.67

0.49

0.50

0.42

0.25

0.33

4.39

TOTAL

10 57 094 49.62 139 42 44 046 95.91 10 73 293 50.38

5 94 04 555 4.09 21 30 387 100.00 145 36 48 601 100.00

13.16 Build up of Equity Share Capital

Particulars

Sl.
No.

1
2

3
4
5
6
7
8
9
10
11
12
13

14
15
16
17

18
19

20
21

Subscribers to Memorandum
Shareholders of Reliance Textile Industries Limited
(Merged with the Company)
Conversion of Loan
Rights Issue -I
Bonus Issue I
Debenture Series I Conversion
Consolidation of Fractional Coupon Shares
Conversion of Loan
Conversion of Loan
Rights Issue II
Debenture Series II Conversion
Debenture Series I Conversion Phase II
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company)
Rights Issue II NRIs
Debenture Series III Conversion
Rights Issue II
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) II
Bonus Issue-II
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) III
Debenture Series IV Conversion
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) IV

Allotment
Date

No. of Shares

October 19, 1975

1 100

May 9, 1977
September 28, 1979
December 31, 1979
September 19, 1980
December 31, 1980
May 15, 1981
June 23, 1981
September 22, 1981
October 6, 1981
December 31, 1981
December 31, 1981

April 12, 1982
June 15, 1982
August 31, 1982
September 9, 1982

59 50 000
9 40 000
6 47 832
45 23 359
8 40 575
24 673
2 43 200
1 40 800
23 80 518
8 42 529
27 168

81 059
774
19 20 000
41

December 29, 1982
September 30, 1983

1 942
1 11 39 564

September 30, 1983
September 30, 1983

371
64 00 000

April 5, 1984

617

Touching lives. Transforming India.

Sl.
No.
22

23
24
25

26
27
28
29
30

31
32

34
35
36
37

42
43

45
46
47
48
49
50
51
52

54
55
56

Particulars

Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) V
Debenture Series I Conversion
Debenture Series II Conversion
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) VI
Consolidation of Fractional Coupon Shares
Debenture Series E Conversion
Debenture Series III Conversion
Debenture Series IV Conversion
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) VII
Consolidation of Fractional Coupon Shares
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) VIII
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) IX
Debenture Series G Conversion
Rights Issue III
Debenture Series G Conversion
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) X
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) XI
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) XII
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) XIII
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) XIV
Euro Issue GDR-I
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company)
Shareholders of Reliance Petrochemicals
Limited (Merged with the Company)
Loan Conversion
Debenture Series H Conversion
Warrant Conversion (Debenture Series F)
Euro Issue GDR II
Loan Conversion
Warrant Conversion (Debenture Series J)
Private Placement of Shares
Conversion of Reliance Petrochemicals
Limited Debentures
Shareholders of Reliance Polypropylene
Limited and
Reliance Polyethylene Limited
(Merged with the Company)
Warrants Conversion
Conversion of 3.5% ECB Due 1999 I
Conversion of 3.5% ECB Due 1999 II

Allotment
Date

No. of Shares

June 20, 1984
October 1, 1984
December 31, 1984

January 31, 1985
April 30, 1985
April 30, 1985
July 5, 1985
December 17, 1985

December 31, 1985
December 31, 1985

50
97 66 783
2 16 571

91
45 005
53 33 333
52 835
42 871

106
610

November 15, 1986

40 284

April 1, 1987
August 1, 1987
February 4, 1988
February 4, 1988

June 2, 1988

October 31, 1988

November 29, 1990

May 22, 1991

169
6 60 30 100
3 15 71 695
29 35 380

322

October 10, 1991
June 3, 1992

25
1 84 00 000

December 4, 1992
July 7, 1993
August 26, 1993
August 26, 1993
February 23, 1994
March 1, 1994
August 3, 1994
October 21, 1994

4 060

7 49 42 763
3 16 667
3 64 60 000
1 03 16 092
2 55 32 000
18 38 950
87 40 000
2 45 45 450

December 22, 1994

75 472

March 16, 1995
March 10, 1995
May 24, 1997
July 11, 1997

9 95 75 915
74 80 000
544
13 31 042

RELIANCE INDUSTRIES LIMITED 69

Sl.
No.

57
58
59
60
61
62
63
64
65

Particulars

Conversion of 3.5% ECB Due 1999 III
Conversion of 3.5% ECB Due 1999 IV
Conversion of 3.5% ECB Due 1999 V
Conversion of 3.5% ECB Due 1999 VI
Bonus Issue III
Conversion of 3.5% ECB Due 1999 VII
Conversion of 3.5% ECB Due 1999 VIII
Conversion of Warrants
Shareholders of Reliance Petroleum Limited
(Merged with the Company)
Shareholders of Indian Petrochemicals
Corporation Limited (Merged with the Company)

Less : Shares Bought Back and extinguished on January 24, 2005
Total Equity as on March 31, 2008

Allotment
Date

No. of Shares

July 22, 1997
September 13, 1997
October 22, 1997
November 4, 1997
December 20, 1997
December 4, 1997
September 27, 1999
January 12, 2000

6 05 068
18 64 766
18 15 755
1 03 475
46 60 90 452
15 68 499
7 624
12 00 00 000

October 23, 2002

34 26 20 509

October 13, 2007

6 01 40 560
145 65 18 096
- 28 69 495
145 36 48 601

13.17. Corporate Benefits to Investors

13.18 Dematerialisation of Shares

a. Bonus Issues of Fully Paid-up Equity Shares

Financial Year
1980-81
1983-84
1997-98

Ratio
3:5
6:10
1:1

b. Dividend Declared for the last 10 Years

Financial
Year
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98

Dividend Declaration
Date
March 10, 2007
June 27, 2006
August 03, 2005
June 24, 2004
June 16, 2003
October 31, 2002
June 15, 2001
June 13, 2000
June 24, 1999
June 26, 1998

Dividend
Rate (%)
110.00
100.00
75.00
52.50
50.00
47.50
42.50
40.00
37.50
35.00

Shares issued on Demerger

Consequent upon the demerger of the Coal based, Gas
based, Financial services and Telecommunications
undertakings / businesses of the Company in December
2005, the shareholders of the Company were allotted
equity shares of the four companies, namely, Reliance
Energy Ventures Limited (REVL), Reliance Natural
Resources Limited (RNRL), Reliance Capital Ventures
Limited (RCVL) and Reliance Communication
Ventures Limited (RCoVL) in the ratio of 1 equity share
of each of the companies for every equity share held
by the shareholders in Reliance Industries Limited,
as on the record date fixed for the purpose.

Accordingly, 122,31,30,422 equity shares each of REVL,
RNRL, RCVL and RCoVL were allotted on January 27,
2006.

95.91% of the Company’s Paid up Equity Share Capital
has been dematerialised upto March 31, 2008 (95.34%
upto March 31, 2007). Trading in Equity Shares of the
Company is permitted only in dematerialised form.

Liquidity:

The Company’s Equity Shares are among the most liquid
and actively traded shares on the Indian Stock Exchanges.
RIL shares consistently rank among the top few
frequently traded shares, both in terms of the number of
shares traded, as well as value. The highest trading activity
is witnessed on the BSE and NSE. Relevant data for the
average daily turnover for the financial year 2007-2008
is given below:

No. of Shares
Amount
(in Rs. crore)

BSE
9,03,232

NSE
31,53,793

Total
40,57,025

201.98

718.42

920.40

[Source : This information is compiled from the data
available from the websites of BSE and NSE]

Touching lives. Transforming India.

13.19

Outstanding GDRs / Warrants and Convertible
Bonds, Conversion Date and likely impact on
equity

(a) GDRs : Outstanding GDRs as on March 31, 2008
represent 5,39,54,815 equity shares constituting 3.71%
of the Paid up Equity Share Capital of the Company.
Each GDR represents two underlying equity shares in the
Company. GDR is not a specific time-bound instrument
and can be surrendered any time and converted into the
underlying equity shares in the Company. The shares so
released in favor of the investors upon surrender of GDRs
can either be held by the investors concerned in their
name or sold off in the Indian secondary markets for
cash.

RIL GDR Program - Important Information

• RIL GDRs are listed at Luxembourg Stock Exchange.
GDRs are traded amongst Qualified Institutional
investors in the Portal System of NASD. GDRs are
also traded on International Order Book (IOB) of
London Stock Exchange.

(cid:127) RIL GDRs are exempted securities under US Securities
Law. RIL GDR program has been established under
Rule 144A and Regulation S of the US Securities Act,
1933. Reporting is done under the exempted route of
Rule 12g3-2(b) under the US Securities Exchange
Act, 1934.

(cid:127) The Bank of New York Mellon is the Depositary
and ICICI Bank Limited is the Custodian of all
the Equity Shares underlying the GDRs issued
by the Company.

RIL GDR Price Movement over last 1 year

Source : Bank of New York Mellon website

RIL GDR Performance in comparison to broad
based indices – S&P 500 and BNY ADR Index

Source : Bank of New York Mellon website

(b) Employee Stock Options : A total of 2,97,63,000
Options have been granted. Each Option, upon exercise
of the same, would give rise to one equity share of Rs. 10/
-each fully paid up. The exercise would be made at the
market price prevailing as on the dates of the grant plus
applicable taxes as may be levied on the Company in this
regard. The details of Options granted are as follows:

2,87,28,000

July 2,
2007

March 16,
2007

October 1,
2007

Date of
Grant
Total
options
granted
Price per
share
* plus applicable taxes as may be levied on the Company
in this regard.

Rs.1,284/-* Rs.1,684/-* Rs.2,292/-*

10,08,000

27,000

These Options vest over one year to a maximum period
of seven years, depending upon specified criteria. The
Options can be exercised during a period of five years or
such other period as the Employees Stock Compensation
Committee may decide from the date of grant. The
Options unexercised during the exercise period would
lapse.

c) Equity Share Warrants : A total of 12,00,00,000
warrants were allotted on preferential basis on April 12,
2007, to entities in the Promoter Group in accordance
with SEBI (Disclosure and Investor Protection)
Guidelines, 2000. Such warrants are exercisable within a
maximum period of 18 months from the date of
allotment, into an equal number of fully paid-up equity
shares of the Company.

13.20

Locations of Manufacturing Divisions

Allahabad
A/10-A/27, UPSIDC Industrial Area
Kailash Nagar, Karchana, P. O. T.S.L.
Dist. Allahabad - 211 010
Uttar Pradesh, India.

Barabanki
Dewa Road, Somaiya Nagar
Barabanki - 225 123
Uttar Pradesh, India.
Dhenkanal
Village Baulpur, District Dhenkanal
Orissa - 759 031, India.
Dahej
P. O. Dahej, Bharuch - 392 130
Gujarat, India
Hazira
Village Mora, Bhatha
P.O. Surat - Hazira Road
Surat - 394 510, Gujarat
India.

RELIANCE INDUSTRIES LIMITED 71

For Shares/Debentures held in Demat form

To the investors’ Depository Participant(s) and/or Karvy
Computershare Private Limited.
(ii) Any query on Annual Report

Shri S. Sudhakar
Vice President - Corporate Secretarial
Reliance Industries Limited,
3rd Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai 400 021.
Email:investor_relations@ril.com

13.22

Transfer of unpaid/unclaimed amounts to Investor
Education and Protection Fund

During the year under review, the Company has credited
Rs. 3.86 crore to the Investor Education and Protection
Fund (IEPF) pursuant to Section 205C of the Companies
Act, 1956 read with the Investor Education and
Protection Fund (Awareness and Protection of Investors)
Rules, 2001. Details of the aforesaid transfer are as under :

Type of Transfer

Dividend
Interest on Debentures
Redemption of
Debentures
Total amount transferred
during the year

Amount
transferred
(Rs. in crore)
3.74
0.12

3.86

The Cumulative amount transferred to IEPF upto March
31, 2008 is Rs. 72.69 crore (including Rs. 3.71 crore of
erstwhile IPCL).

14.

Compliance Certificate of the Auditors

Certificate from the Auditors of the Company, M/s.
Chaturvedi & Shah, M/s. Deloitte Haskins & Sells and
M/s. Rajendra & Co., confirming compliance with the
conditions of Corporate Governance as stipulated under
Clause 49, is attached to the Directors’ Report forming
part of the Annual Report.

This Certificate has also been forwarded to the Stock
Exchanges where the securities of the Company are listed.

15.

Adoption of Mandatory and Non-Mandatory
Requirements of Clause 49

The Company has complied with all the mandatory
requirements and has adopted the following non-
mandatory requirements of Clause 49.

Remuneration Committee:

The Company has constituted Remuneration Committee
to recommend / review remuneration of the Managing
Director and Whole-time Directors based on their
performance and defined assessment criteria.

Hoshiarpur
Dharmshala Road, V.P.O. Chohal
District Hoshiarpur
Punjab - 146 014, India.
Jamnagar
Village Motikhavdi, P.O. Digvijay Gram
Dist. Jamnagar - 361 140
Gujarat, India.
Kurkumbh
D-1, M.I.D.C. Kurkumbh
Taluka Daund
Dist. Pune - 413 801
Maharashtra, India.
Nagothane
P. O. Petrochemicals Township
Nagothane
Raigad - 402 125, Maharashtra, India.
Nagpur
Village Dahali
Mouda Ramtek Road
Tehsil Mouda - 441104
District Nagpur, Maharashtra, India.
Naroda
103/106
Naroda Industrial Estate
Naroda, Ahmedabad - 382 320
Gujarat, India.
Patalganga
B-4, Industrial Area, Patalganga
Off Bombay - Pune Road
Near Panvel
Dist. Raigad - 410 207
Maharashtra, India.
Silvassa
342, Kharadpada
Near Silvassa
Union Territory of Dadra &
Nagar Haveli - 396 235, India.
Vadodara
P. O. Petrochemicals
Vadodara - 391 346
Gujarat, India.

13.21

(i)

Address for Correspondence
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 Computershare Private Limited
46, Avenue 4, Street No. 1
Banjara Hills
Hyderabad - 500 034.
E-Mail: rilinvestor@karvy.com

Touching lives. Transforming India.

Shareholder Rights:

16.

CEO and CFO Certification

The Chairman and Managing Director and the Chief
Financial Officer of the Company give annual certification
on financial reporting and internal controls to the
Board in terms of Clause 49. The Chairman and
Managing Director and the Chief Financial Officer
also give quarterly certification on financial results while
placing the financial results before the Board in terms
of Clause 41.

17.

Secretarial Audit Report

The Company has appointed Dr. K.R. Chandratre,
Practicing Company Secretary, to conduct Secretarial
Audit of the Company for the financial year ended March
31, 2008, who has submitted his report confirming the
compliance with all the applicable provisions of various
corporate laws. The Secretarial Audit Report is annexed.

18.

Capital Integrity Audit

The Audit Report, confirming that the total issued capital
of the Company is in agreement with the total number of
shares in physical form and the total number of
dematerialised shares held with National Securities
Depository Limited and Central Depository Services
(India) Limited, is placed before the Board on a quarterly
basis. A copy of the Audit Report is submitted to the
Stock Exchanges in India where the securities of the
Company are listed.

19.

Fee to Statutory Auditors

The fee paid to the Statutory Auditors for the year was
Rs. 9.18 crore (previous year Rs. 8.77 crore), including
Rs. 4.05 crore (previous year Rs. 3.20 crore) as fee paid
for certification in finance and tax matters.

Half yearly financial Reports are sent to the Members
at their address registered with the Company.

Training of Board Members:

New Directors appointed by the Board are given formal
induction and orientation with respect to the Company’s
vision, strategic direction, core values including ethics,
corporate governance practices, financial matters and
business operations. The new appointee is also facilitated
with a tour of the Company’s key manufacturing facilities
to get familiar with the Company’s operations.

The Board members are also provided with the necessary
documents / brochures, reports and internal policies to
enable them to familiarize with the Company’s
procedures and practices.

Periodic presentations are made at the Board and
Committee Meetings, on business and performance
updates of the Company, global business environment,
business strategy and risks involved.

Quarterly updates on relevant statutory changes and
landmark judicial pronouncements encompassing
important laws are circulated to the Directors.

Meetings of Independent Directors

The Independent Directors of the Company meet from
time to time as they deem appropriate without
the presence of Executive Directors or management
personnel. These meetings are conducted in an informal
and flexible manner to enable the Independent Directors
to discuss matters pertaining to the affairs of the
company and put forth their views to the Lead
Independent Director. The Lead Independent Director
takes appropriate steps to present such views to the
Chairman and Managing Director.

Whistle Blower policy:

The Company promotes ethical behaviour in all its
business activities and has put in place a mechanism of
reporting illegal or unethical behaviour. The Company
has a whistle blower policy wherein the employees are
free to report violations of laws, rules, regulations or
unethical conduct to their immediate supervisor or such
other person as may be notified by the management to
the workgroups. Such reports received will be reviewed
by the Corporate Governance and Stakeholders Interface
Committee from time to time. The confidentiality of
those reporting violations shall be maintained and they
shall not be subjected to any discriminatory practice.

RELIANCE INDUSTRIES LIMITED 73

Secretarial Audit Report

The Board of Directors
Reliance Industries Limited
Maker Chambers IV,
Nariman Point,
Mumbai 400 021.

I have examined the registers, records and documents of Reliance
Industries Limited (“the Company”) for the financial year ended
on March 31, 2008 maintained under the provisions of -

The Companies Act, 1956 and the Rules made under that Act;

The Depositories Act, 1996 and the Regulations and the
Byelaws framed under the Act;

The following Regulations and Guidelines prescribed under
the Securities and Exchange Board of India Act, 1992
(‘SEBI Act’) -

The Securities and Exchange Board of India (Substantial
Acquisition of Shares and Takeovers) Regulations, 1997;

The Securities and Exchange Board of India (Prohibition
of Insider Trading) Regulations, 1992;

The Securities and Exchange Board of India (Disclosure
and Investor Protection) Guidelines, 2000; and

The Securities and Exchange Board of India (Employee
Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999.

The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)
and the Rules made under that Act; and

The Equity Listing Agreement with Bombay Stock Exchange
Limited and National Stock Exchange of India Limited and
GDR Listing Agreement with Luxembourg Stock Exchange
and Debt Listing Agreement with National Stock Exchange of
India Limited.

I report that, based on my examination and verification of
the registers, records and documents produced to me and
according to the information and explanations given to me
by the Company, the Company has, in my opinion, complied
with the provisions of the Companies Act, 1956 (“the Act”)
and the Rules made under the Act, and Memorandum and
Articles of Association of the Company, with regard to:

(a) maintenance of statutory registers and documents and

making in them necessary entries;

(b) closure of Register of Members / Debenture Holders;

(c)

(d)

forms, returns, documents and resolutions required to be
filed with the Registrar of Companies;

service of documents by the Company on its Members,
Debenture holders, Debenture Trustees and Registrar of
Companies;

(e) Notice of Board meetings and Committee meetings of

Directors;

(f)

the meetings of Directors and Committees of Directors
including passing of resolutions by circulation;

(g)

the 33rd Annual General Meeting held on October 12,
2007;

(h) approval of the shareholders, secured creditors (including
debenture holders) and unsecured creditors in their
respective court convened meetings held on April 21,
2007 in terms of the Hon’ble Bombay High Court Order
under Sections 391-394 of the Act read with the
Companies (Court) Rules, in relation to amalgamation
of Indian Petrochemicals Corporation Limited with the
Company;

(i) minutes of proceedings of General Meetings and of Board

and other meetings;

(j)

approvals of shareholders, the Board of Directors, the
Committee of Directors and government authorities,
wherever required;

(k) constitution of the Board of Directors and appointment,

retirement and re-appointment of Directors;

(l)

remuneration of Directors including the Managing
Director and Whole-time Directors;

(m) appointment and remuneration of Auditors and Cost

Auditors;

(n)

transfers and transmissions of the Company’s shares and
debentures and issue and delivery of original and duplicate
certificates of shares and debentures;

(o) payment of interest on debentures and redemption of

debentures ;

(p)

form of balance sheet as prescribed under Part I of Schedule
VI to the Act and requirements as to Profit & Loss
Account as per Part II of the said Schedule;

(q)

transfer of unpaid / unclaimed amounts as required under
the Act to the Investor Education and Protection Fund;

(r) borrowings and registration, modification and satisfaction

of charges;

(s)

investment of the Company’s funds including inter
corporate loans and investments;

(t) giving guarantees in connection with loans taken by

subsidiaries and associate companies;

(u) contracts, common seal, registered office and publication

of name of the Company; and

(v) generally, all other applicable provisions of the Act and

the Rules made under that Act.

I further report that:

(a)

the Directors of the Company have obtained Director
Identification Number as per Section 266A of the Act.

(b) the Directors have complied with the requirements as to
disclosure of interests and concerns in contracts and
arrangements, shareholdings / debenture holdings and
directorships in other companies and interests in other
entities.

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74

Touching lives. Transforming India.

(c)

(d)

(e)

the Directors have complied with the disclosure
requirements in respect of their eligibility of appointment,
their being independent and compliance with the Code of
Business Conduct & Ethics for Directors and
Management Personnel.

the Company has obtained all necessary approvals of the
Central Government and / or other authorities, under the
Act.

there was no prosecution initiated against, or show cause
notice received by, the Company and no fines or penalties
were imposed on the Company under the Companies
Act, SEBI Act, SCRA, Depositories Act, Listing
Agreement and Rules, Regulations and Guidelines framed
under these Acts against the Company, its Directors and
Officers.

I further report that the Company has complied with the
provisions of the Depositories Act, 1996 and the Regulations
and the Byelaws framed thereunder with regard to
dematerialisation / rematerialisation of securities and
reconciliation of records of dematerialised securities with all
securities issued by the Company.

I further report that, the Company has complied with:

the requirements under the Equity Listing Agreements
entered into with Bombay Stock Exchange Limited,
National Stock Exchange of India Limited and GDR
Listing Agreement with Luxembourg Stock Exchange and
the Debt Listing Agreement with National Stock
Exchange of India Limited.

(b)

(c)

(d)

(e)

the provisions of the Securities and Exchange Board of
India (Substantial Acquisition of Shares and Takeovers)
Regulations, 1997 with regard to the disclosures and
maintenance of records required under the Regulations.

the provisions of the Securities and Exchange Board of
India (Prohibition of Insider Trading) Regulations, 1992
with regard to disclosures and maintenance of records
required under the Regulations.

the provisions of the Securities and Exchange Board
of India (Employee Stock Option Scheme and Employee
Stock Purchase Scheme) Guidelines, 1999 with regard
to implementation of Employees Stock Option Scheme,
Grant of Options and related disclosures and other
aspects.

the provisions of the Securities and Exchange Board
of India (Disclosure and Investor Protection) Guidelines,
2000 with regard to issue and allotment of warrants on
preferential basis to entities in the Promoter Group.

Dr. K. R. Chandratre
Practising Company Secretary
Certificate of Practice No. 5144

Place : Mumbai
Dated: April 11, 2008.

RELIANCE INDUSTRIES LIMITED 75

Shareholders’ Referencer

Contents

1. At a Glance

Investor Service and Grievance Handling Mechanism

3. Company’s Recommendation to the Shareholders/

Investors

4. Concepts and Procedures for Securities Related

Matters

4.1. Dividend

4.1.1. Payment of Dividend

4.1.2. Payment of Dividend through Electronic Clearing

Service (ECS) Facility

4.1.3. Course of Action in case of Non-receipt of

Dividend, Revalidation of Dividend Warrants etc.

4.1.4. Unclaimed Dividend

4.2. Dematerialisation / Rematerialisation of Shares

Shareholders’ Referencer

1. At a Glance

Presently, the Company has over 2 million folios of
shareholders holding Equity Shares in the Company.

Face value of the Company’s Equity Shares is Rs. 10.

The Company’s Equity Shares are listed on Bombay Stock
Exchange Limited (BSE) and National Stock Exchange
of India Limited (NSE). The Global Depository Receipts
(GDRs) of the Company are listed on the Luxembourg
Stock Exchange and also traded on PORTAL System
(NASDAQ, USA) and SEAQ System (London Stock
Exchange)

The Company’s Equity Shares are most actively traded
security on both BSE and NSE.

The Company’s Equity Shares are under compulsory
trading in demat form only.

About 96% of the Company’s Equity Shares are held in
demat form.

The Company’s Equity Shares are freely transferable
except as may be required statutorily.

Karvy Computershare Private Limited (Karvy),
Hyderabad, an ISO 9002 Certified Registrars and Transfer
Agents, is the Registrars and Transfer Agents (R&TA) of
the Company.

4.3. Nomination Facility

Investor Service and Grievance Handling Mechanism

4.4.

Transfer / Transmission / Transposition / Duplicate
Certificates etc.

4.5. Miscellaneous

4.5.1. Change of address

4.5.2. Change of name

4.5.3. Authority to another person to deal with shares

4.6.

Shareholders’ General Rights

4.7. Duties / Responsibilities of Investors

Initiatives Taken by the Company

Information Regarding Tax on Dividend and Sale of
Shares

Investor Servicing and Grievance Redressal at
External Agencies

8. Other Information

9. Contact Details

All share related transactions viz., transfer, transmission,
transposition, nomination, dividend, change of name / address
/ signature, registration of mandate / Power of Attorney,
replacement / split / consolidation of share certificates / demat
/ remat of shares, issue of duplicate certificates etc. are being
handled by Karvy. Karvy, the largest Registrar in the country
having a vast number of Investor Service Centres across the
country, discharges investor service functions effectively,
efficiently and expeditiously.

Investors are requested to correspond directly with Karvy, on
all share related matters. List of Investor Services Centres of
Karvy is enclosed (Annexure - I).

The Company has an established mechanism for investor
service and grievance handling, with Karvy and the Compliance
Officer appointed by the Company for this purpose, being the
important functional nodes. The Company has appointed
Internal Securities Auditors to concurrently audit the securities
related transactions being handled at Karvy and communication
exchanged with investors, regulatory and other concerned
authorities.

The Company has prescribed service standards for various
investor related activities being handled by Karvy, which are
covered in the section on ‘Initiatives Taken by the Company’.
These standards are periodically reviewed by the Company.
Any deviation therefrom is examined by the Internal Securities
Auditors who also advise the corrective actions thereon and
inform the Company on the matters on a monthly basis.

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76

Touching lives. Transforming India.

The Board of Directors of the Company has constituted a
Shareholders’ / Investors’ Grievance Committee (the
Committee) which, inter alia, approves issue of duplicate
certificates and oversees and reviews all matters connected
with securities transfers and other processes. The Committee
also reviews the redressal of shareholders’ complaints related
to transfer of shares, non-receipt of Balance Sheet, non-
receipt of dividend etc. The Committee oversees performance
of the R&TA and recommends measures for overall
improvement in the quality of investor services. A summary
of investor related transactions and details is also considered
by the Board of Directors of the Company.

3. Company’s Recommendation to the Shareholders /

Investors

In pursuit of the Company’s objective to mitigate / avoid
risks while dealing with securities and related matters, the
following are the Company’s recommendations to share
holders / investors:

Open Demat Account and Dematerialise your shares

Investors should convert their physical holdings of securities
into demat holdings. Holding securities in demat form helps
investors to get immediate transfer of securities. No stamp
duty is payable on transfer of shares held in demat form and
risks associated with physical certificates such as forged
transfers, fake certificates and bad deliveries are avoided.

Consolidate Multiple Folios

Investors should consolidate their shareholding held in multiple
folios. This would facilitate one-stop tracking of all corporate
benefits on the shares and would reduce time and efforts required
to monitor multiple folios.

Investor should provide an ECS mandate to the Company in
case of shares held in physical form and ensure that the correct
and updated particulars of their bank account are available
with the Depository Participant (DP) in case of shares held in
demat form. This would facilitate in their receiving direct
credits of dividends, refunds etc., from companies and avoiding
postal delays and loss in transit.

Fill and submit Nomination Form

Investors should register the nominations, in case of physical
shares, with the Company and in case of dematerialised shares
with their DP. Nomination would help successors to get the
shares transmitted in their favor without any hassles.

Keep holding details confidential

Folio number (Client ID and DP ID number in respect of
dematerialised securities) should not be disclosed to unknown
persons. Signed blank transfer deeds (delivery instruction slips
in respect of dematerialised shares) should not be given to
unknown persons.

Deal with Registered Intermediaries

Investors should transact through a registered intermediary
who is subject to regulatory discipline of SEBI, as it will be
responsible for its activities, and in case intermediary
does not act professionally, investors can take up the matter
with SEBI.

Obtain documents relating to purchase and sale of
securities

A valid Contract Note / Confirmation Memo should be
obtained from the broker / sub-broker, within 24 hours of
execution of purchase or sale of securities and it should be
ensured that the Contract Note / Confirmation Memo contains
order number , trade number, trade time, quantity, price and
brokerage. In case the investors have any doubt about the
details contained in the contract note, they can avail the
facility provided by BSE/NSE to verify the trades on BSE/
NSE websites. It is recommended that this facility be availed
in respect of a few trades on random basis, even if there is no
doubt as to the authenticity of the trade/transaction.

Monitor holdings regularly

Demat account should not be kept dormant for long. Periodic
statement of holdings should be obtained from the concerned
DP and holdings verified. Where the investor is likely to be
away for a long period of time and where the shares are held in
electronic form, the investor can make a request to the DP to
keep the account frozen so that there can be no debit to the
account till the instruction for freezing the account is
countermanded by the investor.

Investors should register their mobile numbers with DPs for
SMS alert facility. National Securities Depository Limited and
Central Depository Services (India) Limited proactively
inform investor of transaction in the demat account by sending
SMS. Investors will be informed about debits and credits to
their demat account without having to call-up their DPs and
investors need not wait for receiving Transaction Statements
from DPs to know about the debits and credits.

Exercise caution

There is likelihood of fraudulent transfers in case of folios
with no movement or where the shareholder has either expired
or is not residing at the address registered with the Company.
Company / DP should be updated on any change of address or
contact details. Similarly information of death of shareholders
should also be communicated.

Mode of Postage

Share Certificates and high value dividend / interest warrants /
cheques / demand drafts should not be sent by ordinary post. It
is recommended that investors should send such instruments
by registered post or courier.

4. Concepts and Procedures for Securities Related

Matters

4.1. Dividend

4.1.1. Payment of Dividend

The Dividend is paid under two modes viz:

(a)

Electronic Clearing Service (ECS) and any other mode
through electronic means like Real Time Gross
Settlement (RTGS), National Electronic Fund Transfer
(NEFT) and through Direct credit

(b)

Payment by mailing dividend warrants

RELIANCE INDUSTRIES LIMITED 77

4.1.2. Payment of dividend through Electronic Clearing

Service (ECS) facility

What are the benefits of ECS (payment through
electronic facilities)?

What is payment of dividend through ECS Facility and
how does it operate?

Reserve Bank of India’s ECS facility provides investors an
option to receive dividend / interest directly in their bank
accounts rather than receiving the same through post. Under
this option, investor’s bank account is directly credited and an
advice thereof is issued by the Company after the transaction
is effected. The concerned bank branch credits investor’s
account and indicates the credit entry as “ECS” in his / her
passbook / statement of account. If any investor maintains
more than one bank account, payment can be received at any
one of his / her accounts as per the preference of the investor.
The investor does not have to open a new bank account for
the purpose.

What is payment of dividend through NEFT Facility
and how does it operate?

NEFT denotes payment of dividend electronically through
RBI clearing to selected bank branches which have
implemented Core Banking solutions (CBS). This extends to
all over the country, and is not necessarily restricted to the 68
designated centres where payment can be handled through
ECS. Most of the Public Sector Banks (PSB) have implemented
CBS where some of their bank branches are networked through
computer. This facilitates a constituent to do banking
anywhere with any of the Bank’s branches. Almost all the
Private sector Banks have implemented networking of all
their branches. The PSB’s while implementing CBS have given
their constituents a new bank account number. To facilitate
payment through NEFT, the shareholder is required to ensure
that the bank branch where his/her account is operated, is
under CBS and also record the particulars of the new bank
account with the DP with whom the demat account is
maintained. Initially the payment through NEFT will be
implemented for payment which is being remitted to the
investor holding bank accounts with private sector banks and
selectively for other PSB. Based on this experience it will be
extended to cover a larger network of banks in the future. At
present RBI carries out six settlements a day through NEFT
which will result in almost instant credit to the investors bank
account. Real Time Gross Settlement (RTGS) facilitates
payment electronically for high value payments. Payment
through RTGS will be done for dividend payments of a sum
above Rs 1,000,000 (Rs Ten Lakhs and above) subject to the
implementation of CBS by the recipient bank and the Indian
Financial Service Code (IFSC) available to the recipient bank.

What is payment of dividend through Direct Credit
and how does it operate?

The Company will be appointing one bank as its Dividend
banker for distribution of dividend. The said banker will carry
out direct credit to those investors who are maintaining bank
account with the said bank, provided the bank account details
are registered with the DP for dematerialised shares and / or
registered with the R &TA prior to the payment of dividend
for shares held in physical form.

Some of the major benefits are :

Shareholder need not make frequent visits to his bank
for depositing the physical paper instruments.

Prompt credit to the bank account of the investor
through electronic clearing.

Fraudulent encashment of warrants is avoided.

Exposure to delays / loss in postal service avoided.

e. As there can be no loss in transit of warrants, issue of

duplicate warrants is avoided.

Which cities provide ECS facility?

SEBI in consultation with Reserve Bank of India has extended
the ECS Facility to the investors residing at 68 locations
centres, Ahmedabad, Agra, Allahabad, Amritsar, Aurangabad,
Bengaluru, Baroda, Bhilwara, Bhopal, Bhubaneshwar, Burdwan,
Calicut, Chandigarh, Chennai, Coimbatore, Dehradun,
Dhanbad, Durgapur, Erode, Gorakhpur, Guwahati, Gwalior,
Haldia, Hubli, Hyderabad, Indore, Jabalpur, Jaipur, Jalandhar,
Jammu, Jamshedpur, Jodhpur, Kakinada, Kanpur, Kochi/
Ernakulam, Kolhapur, Kolkata, Lucknow, Ludhiana, Madurai,
Mangalore, Mumbai, Mysore, Nagpur, Nashik, Nellore, New
Delhi, Panaji, Patna, Pondicherry, Pune, Raipur, Rajkot,
Ranchi, Salem, Shimla, Sholapur, Siliguri, Surat,
Thiruvananthapuram, Tirupati, Tirupur, Trichur, Trichy,
Udaipur, Varanasi, Vijaywada and Visakhapatnam.

The Reserve Bank of India may extend, this service to some
more centres.

How to avail of ECS Facility?

Investors holding shares in physical form may send their ECS
Mandate Form, duly filled in, to the Company’s R&TA. The
Form may be downloaded from the Company’s website
www.ril.com under the section “Investor Relations” or from
the Company’s R&TA’s website http://karisma.karvy.com/
intranet/jsp/docs/ECS.doc (for accessing this link registration
may be required, address link for registration is http://
karisma.karvy.com/karisma/html/index.htm).

However, if shares are held in dematerialised form, ECS
mandate has to be sent to the concerned Depository Participant
(DP) directly, in the format prescribed by the DP.

Why cannot the Company take on record bank details
in case of dematerialised shares?

As per the Depository Regulations, the Company is obliged to
pay dividend on dematerialised shares as per the bank account
details furnished by the concerned Depository. Therefore,
investors are requested to keep their bank particulars updated
with the Depository Participants.

Can ECS Facility be opted out by investors?

Investors have a right to opt out from this mode of payment
by giving an advance notice of four weeks, prior to payment
of dividend, either to the Company’s R&TA or to the
concerned DP, as the case may be.

Touching lives. Transforming India.

How to register a request for obtaining payment
through ECS for the shares held in dematerialised
form?

The investor should approach the DP and submit a request
letter to the DP along with a copy of the cancelled cheque of
the investors’ bank account. The DP in turn will record the 9
digit MICR number along with the account particulars of the
investor. This action would facilitate future payment of
dividend, etc. to be received in electronic mode. Recording
the 9 digit MICR number with the DP will also facilitate receipt
of payment through NEFT or RTGS.

4.1.3. Course of Action in case of Non-receipt of
Dividend, Revalidation of Dividend Warrant etc.

What should a shareholder do in case of non-receipt of
dividend?

Shareholders may write to the Company’s R&TA, furnishing
the particulars of the dividend not received, and quoting the
folio number/DPID and Client ID particulars (in case of
dematerialised shares). The R&TA shall check the records and
issue duplicate dividend warrant if the dividend remains unpaid
in the records of the Company after expiry of the validity
period of the warrant which is normally three months from
the date of its issue. If the validity period of the lost dividend
warrant has not expired, shareholders will have to wait till the
expiry date since duplicate warrant cannot be issued during the
validity of the original warrant. On expiry of the validity
period, if the dividend warrant is still shown as unpaid in
records of the Company, duplicate warrant will be issued. The
R&TA would request the concerned shareholder to execute an
indemnity before issuing the duplicate warrant.

However, duplicate warrants will not be issued against those
shares wherein a ‘stop transfer indicator’ has been instituted
either by virtue of a complaint or by law, unless the procedure
for releasing the same has been completed.

No duplicate warrant will be issued in respect of dividends
which have remained unpaid / unclaimed for a period of seven
years in the unpaid dividend account of the Company as they
are required to be transferred to the Investor Education and
Protection Fund (IEPF) constituted by the Central
Government.

Why do the shareholders have to wait till the expiry of
the validity period of the original warrant?

Since the dividend warrants are payable at par at several centres
across the country, banks do not accept ‘stop payment’

instructions. Hence, shareholders have to wait till the expiry
of the validity of the original warrant.

What is the procedure for revalidation of dividend
warrants?

Shareholders who have not encashed their dividend warrants
within the validity period may send their request of revalidation
to the Company’s R&TA enclosing the said dividend warrants.
The Company’s R&TA will after due verification of the
records, issue a revalidated dividend warrant. The revalidated
warrant will be valid for a period not exceeding 3 months
from the date of such warrant.

How can a bank or any other person be authorised to
receive dividends on behalf of shareholders?

Shareholders may write to the Company’s R&TA furnishing
the name and address of the authorised person/bank along
with folio number and current communication address. The
Company’s R&TA will despatch the respective shareholders’
dividend warrants to the concerned person / bank. This facility
is applicable only for the shareholders holding shares in physical
form.

4.1.4. Unclaimed / Unpaid Dividend:

What are the statutory provisions governing unclaimed
dividend?

Prior to amendment of Section 205A and enactment of Section
205C by the Companies (Amendment) Act, 1999, companies
were required to transfer to the General Revenue Account of
the Central Government, any moneys transferred to the
‘unpaid dividend account’ and which remained unpaid or
unclaimed for a period of 3 years from the date of transfer to
the unpaid dividend account. With effect from October 31,
1998, any moneys transferred to the ‘unpaid dividend account’
of the Company and remaining unpaid or unclaimed for a
period of 7 years from the date it becomes due, shall be
transferred to the Investor Education and Protection Fund
(IEPF). Investors are requested to note that no claims
shall lie against the Company or IEPF for any moneys
transferred to IEPF in accordance with the provisions
of Section 205C of the Companies Act, 1956.

What is the status of unclaimed and unpaid dividend
for different years?

In view of the statutory provisions, as aforesaid, the status of
unclaimed and unpaid dividend of the Company is captured in
Chart 1.

Chart 1 Status of unclaimed and unpaid dividend for different years

Dividend upto 1994-95

Transfer of unpaid
dividend

Transferred to General Revenue
Account of the Central
Government

Claims for unpaid
dividend

Can be claimed from ROC,
Maharashtra*

Dividend for 1995- 96 to
1999-2000
Transferred to Central
Government’s Investor
Education and Protection
Fund (IEPF)
Cannot be claimed

Dividend for 2000-01
and thereafter
Will be transferred to
IEPF on due date(s)

Can be claimed from
the Company’s R&TA
within the time limits
provided in Chart 2
given below:

RELIANCE INDUSTRIES LIMITED 79

* Shareholders who have not encashed their dividend warrant(s) relating to one or more of the financial year(s) upto and including 1994-
95 are requested to claim such dividend from the Registrar of Companies, Maharashtra, CGO Complex, 2nd Floor, “A Wing”, CBD-
Belapur, Navi Mumbai - 400 614. Telephone (091) (022) 2757 6802, in Form II of the Companies Unpaid Dividend (Transfer to General
Revenue Account of the Central Government) Rules, 1978.

Chart 2 Information in respect of unclaimed and unpaid dividends declared for 2000-01 and thereafter

Financial year ended

RIL

Erstwhile IPCL (Merged with RIL)

Date of declaration of
Dividend

Last date for
claiming unpaid
Dividend

Date of declaration
of Dividend

31.03.2001

31.03.2002

31.03.2003

31.03.2004

31.03.2005

31.03.2006

31.03.2007 (Interim)

15.06.2001

31.10.2002

16.06.2003

24.06.2004

03.08.2005

27.06.2006

10.03.2007

14.06.2008

30.10.2009

15.06.2010

23.06.2011

02.08.2012

26.06.2013

08.03.2014

27.09.2001

27.09.2002

13.06.2003

12.06.2004

27.06.2005

25.05.2006

10.03.2007

Last date for
claiming
unpaid
Dividend

26.09.2008

26.09.2009

12.06.2010

11.06.2011

26.06.2012

24.05.2013

08.03.2014

4.2. Dematerialisation / Rematerialisation of Shares

What is dematerialisation of shares?

Dematerialisation (Demat) is the process by which securities
held in physical form are cancelled and destroyed and the
ownership thereof is entered into and retained in a fungible
form on a depository by way of electronic balances. Trading
in demat form is regulated by the Depositories Act, 1996 and
is monitored by the Securities and Exchange Board of India
(SEBI). The two depositories presently functioning are
National Securities Depository Limited (NSDL) and Central
Depository Services (India) Limited (CDSL).

Why dematerialise shares? Trading in Compulsory
Demat

SEBI has notified various companies whose shares shall be
traded in demat form only. By virtue of such notification, the
shares of the Company are also subject to compulsory trading
only in demat form on the Stock Exchanges.

Benefits of Demat

Elimination of bad deliveries

Elimination of all risks associated with physical
certificates

No stamp duty on transfers

Immediate transfer / trading of securities

Faster settlement cycle

Faster disbursement of non cash corporate benefits like
rights, bonus, etc.

SMS alert facility

Lower brokerage is charged by many brokers for trading
in dematerialised securities

Periodic status reports and information available on
internet

Ease related to change of address of investor

Elimination of problems related to transmission of demat
shares

Ease in portfolio monitoring

How to dematerialise shares?

The procedure for dematerialising shares is as under :

Open Beneficiary Account with a Depository Participant
(DP) registered with SEBI.

Submit Demat Request Form (DRF) as given by the DP,
duly signed by all the holders with the names and signatures
in the same order as appearing in the concerned
certificate(s) and the Company records.

Obtain acknowledgment from the DP on handing over
the share certificate(s) along with the DRF.

Demat confirmations are required to be completed in 21
days as against 30 days (excluding time for despatch) for
physical transfer. Service standards prescribed by the
Company for completing demat is three days from the
date of the receipt of requisite documents for the purpose.

Receive a confirmation statement of holdings from the
DP. Statement of holdings is sent by the DPs from time
to time. Presently, confirmation is given by DPs on an
immediate basis through email or SMS facilities, thus
enabling shareholders to further trade in the securities
immediately. Shareholders should not send share
certificate(s) / documents to the Company / Company’s
R&TA directly.

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Touching lives. Transforming India.

Additional information on the matter may be received from -
Shri S. P. Venugopal, Deputy General Manager, Demat Advisory
Cell, Karvy Computershare Private Limited 46, Avenue 4,
Street No.1, Banjara Hills, Hyderabad 500 034, India Telephone
Nos: +91 40 2332 0666 / 2332 0711 / 2332 3031 / 2332
3037; e-mail: spvenu@karvy.com

How to get dividend on dematerialised shares? Will
such shareholders be eligible for receiving Annual
Report every year and also to attend General Meetings?

Dividend of shareholders holding shares in dematerialised form
(residing at 68 centres stated hereinabove) will be credited
through ECS/ electronically to the bank accounts as opted by
them while opening the Beneficiary Accounts with the DP. In
other cases, dividend warrants will be despatched to them with
the bank account details, as furnished by the Depositories,
printed thereon. Holding shares in dematerialised form will
not have any adverse affect on the rights of the Shareholders.
As members of the Company, they will be entitled to receive
Annual Report, attend General Meetings and participate and
vote thereat to the extent of their shareholding.

Is pledge of dematerialised shares possible?

Dematerialised shares can be pledged for the purpose of availing
of any funding / loan arrangement with a bank.

What is the SMS alert facility?

NSDL and CDSL have launched SMS Alert facility for demat
account holders whereby investors can receive alerts for debits
(transfers) to their demat accounts and for credits in respect
of corporate actions for IPO and offer for sale. Under this
facility, investors can receive alerts, a day after such debits
(transfers) / credits take place. These alerts are sent to those
account holders who have provided their mobile numbers to
their Depository Participants (DPs). Alerts for debits are sent,
if the debits (transfers) are up to five ISINs in a day. In case
debits (transfers) are for more than five ISINs, alerts are sent
with a message that debits for more than five ISINs have
taken place and that the investor can check the details with
the DP.

What is rematerialisation of shares?

It is the process through which shares held in demat form are
converted into physical form by issuance of share
certificate(s).

What is the procedure for rematerialisation of shares?

Shareholders should submit duly filled in Rematerialisation
Request Form (RRF) to the concerned DP.

DP intimates the relevant Depository of the request
through the system.

DP submits RRF to the Company’s R&TA.

Depository confirms rematerialisation request to the
Company’s R&TA.

The Company’s R&TA updates accounts and prints
certificate(s) and informs the Depository.

Depository updates the Beneficiary Account of the
shareholder by deleting the shares so rematerialised.

Share certificate(s) is despatched to the shareholder.

4.3. Nomination Facility:

What is nomination facility and to whom it is more
useful? What is the procedure of appointing a
nominee?

Section 109A of the Companies Act, 1956 provides the facility
of nomination to shareholders. This facility is mainly useful
for individuals holding shares in sole name. In the case of joint
holding of shares by individuals, nomination will be effective
only in the event of the death of all joint holders. Investors,
especially those who are holding shares in single name, are
advised to avail of the nomination facility by submitting the
prescribed Form 2B to the Company’s R&TA. Form 2B may
be downloaded from the Company’s website, www.ril.com under
the section “Investor Relations”. However, if shares are held
in dematerialised form, nomination has to be registered with
the concerned DP directly, as per the format prescribed by the
DP.

Who can appoint a nominee and who can be appointed
as a nominee?

Individual shareholders holding the shares / debentures in single
name or joint names can appoint a nominee. In case of joint
holding, joint holders together have to appoint the nominee.
While an individual can be appointed as a nominee, a trust,
society, body corporate, partnership firm, karta of HUF or a
power of attorney holder will not be nominee(s). Minors can,
however, be appointed as a nominee.

How to avail of nomination facility for more than one
folio?

There can be only one nomination for one folio. Folios having
different order or combination of names of shareholders will
require separate nominations.

Can a nomination once made be revoked / varied?

It is possible to revoke / vary a nomination once made. If
nomination is made by joint holders, and one of the joint
holders dies, the remaining joint holder(s) can make a fresh
nomination by revoking the existing nomination.

Are the joint holders deemed to be nominees to the
shares?

Joint holders are not nominees; they are joint holders of the
relevant shares having joint rights on the same. In the event
of death of any one of the joint holders, the surviving joint
holder(s) of the shares is / are the only person(s) recognised
under law as holder(s) of the shares. Joint Shareholders may
together appoint a nominee.

Can a Non Resident Indian (NRI) nominate ?

Yes, Non Resident Indian (NRI) can nominate. But, a Power
of Attorney holder cannot nominate on behalf of NRI.

Can a NRI be a nominee?

NRI can be a nominee on repatriable or non-repatriable basis
subject to Reserve Bank of India’s permission as applicable.

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RELIANCE INDUSTRIES LIMITED 81

What rights are conferred on the nominee and how
can he exercise the same?

Can shares be transferred to a minor, Hindu Undivided
Family, Firm, Trust etc. ?

The nominee is entitled to all the rights of the deceased
shareholder to the exclusion of all other persons. In the event
of death of the shareholder, all the rights of the shareholder
shall vest in the nominee. In case of joint holding, all the
rights shall vest in the nominee only in the event of death of
all the joint holders. The nominee is required to apply to the
Company by reporting death of the nominator along with the
attested copy of the death certificate.

The nominee has an option to decide to register himself as a
shareholder or he/she could send an application to have the
shares transferred to any other person to whom the nominator
could have otherwise transferred the shares. If the nominee
opts to transfer the shares to a third party, he/she should
submit to the Company’s R&TA, the transfer deed(s) duly
stamped and executed, along with the relevant certificate(s)
and other documentary proof(s).

If shares are held in dematerialised form, nomination has to
be registered with the concerned DP directly, as per the format
prescribed by the DP.

4.4. Transfer / Transmission / Transposition / Duplicate

Certificates etc.

How to get shares registered in favour of transferee(s)?

Transferee(s) need to send share certificate(s) along with share
transfer deed in the prescribed form 7B, duly filled in, executed
and affixed with share transfer stamps, to the Company’s
R&TA. It takes about 7 days for the Company’s R&TA to
process the transfer, although the statutory time limit fixed
for completing a transfer is one month under the Listing
Agreement and two months under the Companies Act, 1956.
The Government of India, Ministry of Finance, Department
of Revenue, has fixed the Stamp Duty on Transfer (whether
with or without consideration) of shares at the rate of twenty
five paise (25 paise) for every Rs. 100 or part thereof of the
market value of the shares on the date of execution of the
transfer deed. The transfer deed is valid for a period of one
year from the date of presentation or till the book closure
date, whichever is later. In case the transfer deed has expired,
the holder may approach the Registrar of Companies to get
the same revalidated. In case of dematerialised shares, the
shares are credited to the purchaser’s account by the respective
Depository Participant under the directions of the concerned
Depository. Presently, transfer of dematerialised shares does
not attract stamp duty.

What should transferee (purchaser) do in case transfer
form is returned with objections?

Transferee needs to immediately proceed to get the errors/
discrepancies corrected. Transferee needs to contact the
transferor (seller) either directly or through his broker for
rectification or replacement with good securities. After
rectification or replacement of the securities the same can be
resubmitted for affecting transfer. In case the errors are non
rectifiable, purchaser has recourse to the seller and his broker
through the Stock Exchange to get back his money. However,
in case of off market transactions matter should be settled
with the seller only

Yes, shares can be transferred to a minor. In such a case the
share transfer deed is required to be signed by the natural
guardian on behalf of the minor.

In the case of Hindu Undivided Family (HUF) shares can be
transferred in the name of the Karta of HUF, in the case of a
Firm shares can be transferred to a partner of the firm and in
the case of a Trust shares can be transferred to a trustee of the
trust.

What is the procedure for transfer of shares in the case
of Non Residents ?

In the case of transfer of shares by Non Residents in addition
to the normal procedure for transfer of shares, prior approval
of Reserve Bank of India (RBI) is required to be obtained by
the Non Resident investors.

Can single holding of shares be converted into joint
holdings or joint holdings into single holding? If yes,
what is the procedure involved in doing the same?

Yes, conversion of single holding into joint holdings or joint
holdings into single holding or transfer within the family
members leads to a change in the pattern of ownership, and
therefore, procedure for a normal transfer as mentioned above
needs to be followed.

How to get shares registered which are received by way
of gift? Does it attract stamp duty?

The procedure for registration of shares gifted (held in physical
form) is same as the procedure for a normal transfer. The
stamp duty payable for registration of gifted shares would be
@ 25 paise for every Rs. 100 or part thereof, of the face value
or the market value of the shares prevailing as on the date of
the document, if any, conveying the gift or the date of
execution of the transfer deed, whichever is higher. The
procedure for registration of shares gifted (held in demat form)
is the same as the procedure for transfer of shares in demat
form in off market mode.

What is the procedure for getting shares in the name
of surviving shareholder(s), in case of joint holding, in
the event of death of one shareholder?

The surviving shareholder(s) will have to submit a request
letter supported by an attested copy of the death certificate
of the deceased shareholder and accompanied by the relevant
share certificate(s). The Company’s R&TA on receipt of the
said documents and after due scrutiny, will delete the name of
the deceased shareholder from its records and return the share
certificate(s) to the surviving shareholder(s) with necessary
endorsement.

If a shareholder who holds shares in his sole name dies
without leaving a Will, how can his legal heir(s) claim
the shares?

The legal heir(s) should obtain a Succession Certificate or
Letter of Administration with respect to the shares and send a
true copy of the same, duly attested, along with a request
letter, transmission form, and the share certificate(s) in
original, to the Company’s R&TA for transmission of the
shares in his / their name(s).

Touching lives. Transforming India.

In case of a deceased shareholder who held shares in
his / her own name (single) and had left a Will, how do
the legal heir(s) get the shares transmitted in their
name(s)?

The legal heir(s) will have to get the Will probated by the
Court of competent jurisdiction and then send to the
Company’s R&TA a copy of the probated copy of the Will,
along with relevant details of the shares, the relevant share
certificate(s) in original and transmission form for transmission
of the shares in his / their name(s).

How can the change in order of names (i.e. trans-
position) be effected?

Share certificates along with a request letter duly signed by all
the joint holders may be sent to the Company’s R&TA for
change in order of names, known as ‘transposition’.
Transposition can be done only for the entire holdings under
a folio and therefore, requests for transposition of part holding
cannot be accepted by the Company / R&TA. For shares held
in demat form, investors are advised to approach their DP
concerned for transposition of the shares the Company.

What is the procedure for obtaining duplicate share
certificate(s) in case of loss / misplacement of original
share certificate(s)?

Shareholders who have lost / misplaced share certificate(s)
should inform the Company’s R&TA, immediately about loss
of share certificate(s), quoting their folio number and details
of share certificate(s), if available. The R&TA shall
immediately mark a ‘stop transfer’ on the folio to prevent
any further transfer of shares covered by the lost share
certificate(s). It is recommended that the shareholders should
lodge a FIR with the police regarding loss of share certificate(s).
They should send their request for duplicate share certificate(s)
to the Company’s R&TA. Documents required to be submitted
along with the application include Indemnity Bond, Surety
Form, copy of FIR, Memorandum of Association and Certified
Copy of the Board Resolution (in case of companies).

What should a shareholder do in case he finds the
original share certificate(s) after receipt of duplicate
share certificate(s)?

Such a shareholder is requested to surrender the original share
certificate(s), after cancellation, to the Company’s R&TA
immediately, if the duplicate share certificate(s) have been
issued to him/her. Further, as the shareholder has been issued
duplicate share certificate(s), he/she would be liable to
indemnify any innocent third party(ies) purchasing the original
share certificate(s), directly or indirectly, with or without the
knowledge of the original shareholder, as it tantamounts to
passing of adverse title.

What is the procedure for splitting of a share certificate
into smaller lots?

Shareholders may write to the Company’s R&TA enclosing
the relevant share certificate for splitting into smaller lots.
The share certificates, after splitting, will be sent by the
Company’s R&TA to the shareholders at their registered
address.

How to get the certificates issued in various denomi-
nations consolidated into Single Certificate?

Consolidation of share certificates helps in saving costs in the
event of dematerialising shares and also provides convenience
in holding the shares physically. Shareholders having
certificates in various denominations under the same folio
should send all the certificates to Karvy for consolidation of
all the shares into a single certificate.

If the shares are not under the same folio but have the same
order of names, the shareholder should write to Karvy for the
prescribed form for consolidation of folios. This will help the
investors to efficiently monitor the holding and receivable
thereon.

4.5. Miscellaneous

4.5.1. Change of address

What is the procedure to get change of address
registered in the Company’s records?

Shareholders holding shares in physical form, may send a
request letter duly signed by all the holders giving the new
address along with Pin Code. Shareholders are also requested
to quote their folio number and furnish proof such as attested
copies of Ration Card / PAN Card / Passport / Latest Electricity
or Telephone Bill / Lease Agreement etc. If shares are held in
dematerialised form, information about change in address needs
to be sent to the DP concerned.

Can there be multiple addresses for a single folio?

There can only be one registered address for one folio.

4.5.2. Change of name

What is the procedure for registering change of name
of shareholders?

Shareholders may request the Company’s R&TA for effecting
change of name in the share certificate(s) and records of the
Company. Original share certificate(s) along with the
supporting documents like marriage certificate, court order
etc. should be enclosed. The Company’s R&TA, after
verification, will effect the change of name and send the share
certificate(s) in the new name of the shareholders. Shareholders
holding shares in demat form, may request the concerned DP
in the format prescribed by DP.

4.5.3. Authority to another person to deal with shares

What is the procedure for authorising any other person
to deal with the shares of the Company?

Shareholders need to execute a Power of Attorney in favour
of the concerned person and submit a notarised copy of the
same to the Company’s R&TA. After scrutiny of the
documents, the R&TA shall register the Power of Attorney
and inform the shareholders concerned about the registration
number of the same. Whenever a transaction is done by the
Power of Attorney holder this registration number should
be quoted in the communication.

4.6. Shareholders’ General Rights

To receive not less than 21 days notice of general meetings
unless consented for a shorter notice.

To receive notice and forms for Postal Ballots in terms
of the provisions of the Companies Act, 1956 and the
concerned Rules issued thereunder.

To receive copies of Balance Sheet and Profit and Loss
Account along with all annexures / attachments (Generally
known as Annual Report).

To participate and vote at general meetings either
personally or through proxy (proxy can vote only in
case of a poll).

To receive dividends and other corporate benefits like
bonus, rights etc. once approved.

To demand poll on any resolution at a general meeting in
accordance with the provisions of the Companies Act,
1956.

To inspect statutory registers and documents as permitted
under law.

To require the Board of Directors to call an extraordinary
general meeting in accordance with the provisions of the
Companies Act, 1956.

4.7. Duties / Responsibilities of Investors

To remain abreast of corporate developments, company
specific information and take informed investment
decision(s).

To be aware of relevant statutory provisions and ensure
effective compliance therewith.

Not to indulge in fraudulent and unfair trading in securities
nor to act upon any unpublished price sensitive
information.

To participate effectively in the proceedings of
shareholders’ meetings.

To respond to communications seeking shareholders’
approval through Postal Ballot.

To respond to communications of SEBI / Depository /
Depository Participant / Brokers / Sub-brokers / Other
Intermediaries / Company, seeking investor feedback /
comments.

Initiatives taken by the Company setting new
Benchmarks in Investor Service

The service standards that have been set by the
Company for various investor related transactions / activities
are as follows :

RELIANCE INDUSTRIES LIMITED 83

(A) Registrations
Sl No Particulars

Folio Consolidation

Transfers
1.
Transmission
2.
3.
Transposition
4. Deletion of Name
5.
6. Change of Name
7. Demat
8. Remat
9.
10. Replacement of Certificate
11. Certificate Consolidation
12. Certificate Split

Issue of Duplicate Certificate

(B) Correspondence

Sl. No Particulars

Queries / Complaints
1. Non-receipt of Annual Reports
2. Non-receipt of Dividend Warrants
3. Non-receipt of Interest/

TDS certificate

Redemption Warrants
4. Non-receipt of Certificate
Event Based
1.
2. Allotment / call money
3. Others
Requests
1. Change of Address
2. Revalidation of Dividend

Warrants

3. Revalidation of Redemption

Warrants

4. Bank Mandate / Details
5. Nomination
6.
7. Multiple Queries
IEPF Letters
8.

Power of Attorney

Service Standards
(No. of working days)
7
4
4
3
3
3
3
3
35
3
3
3

Service Standards
(No. of working days)

2
4

4
2

2
4
2

3
2
2
2
4
3

Undelivered Share Certificates & Warrants

The Company with the help of its R&TA has been engaged in
a continuous exercise of tracking investors who could not be
reached at their existing address.

Intimation Letters to Investors

The Company gives an opportunity by sending intimation
letters to investors for claiming their outstanding dividend /
interest amount which is due for transfer to Investor Education
& Protection Fund.

Consolidation of Folios

The Company has initiated a unique investor servicing measure
for consolidation of small holdings within the same household.

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Touching lives. Transforming India.

In terms of this, those shareholders holding less than 10 shares
(under a single folio) in the Company, within the same
household, can send such shares for transfer along with transfer
forms duly filled in and signed, free of cost; the stamp duty
involved in such cases will be borne by the Company.

Benefits of Consolidation of Folios:

The present day scenario provides the investor with the
comfort of maintaining the portfolios through
dematerialisation. Investors need to open multiple demat
accounts in case the shares are held in different
combinations. Consolidation of the folios would minimise
the necessity to open multiple demat accounts and
thereby maintenance costs can be reduced.

Consolidation of folios would also help in shareholder(s)
getting a single share certificate for all the shares held by
them thereby reducing dematerialisation costs if the
shareholder(s) opt for converting the shares into
electronic mode.

(cid:127) Maintenance of multiple folios would result in payment
of dividend amounts through multiple warrants, resulting
in higher chances of pilferage / misplacement in postal
transit. Consolidation of folios would lead to payment of
dividend through a single warrant and hence the
shareholder is assured of receiving the dividend on all the
shares held by him by a single transaction.

In case of dividend being credited directly to the bank
accounts of the investor, the requirement for the investor
to verify his bank account to ensure that dividend for all
the shares has been credited does not arise. The dividend
for all the shares held by him would be credited as a single
transaction.

Scheme for disposal of ‘Odd Lot’ Equity Shares

At the Annual General Meeting of the Company held on June
26, 1998, our Founder Chairman Shri Dhirubhai H. Ambani,
announced for the benefit of small shareholders a scheme for
disposal of ‘Odd Lot’ shares (the Scheme) to facilitate such
shareholders to realise the full market value without having to
suffer a discount for odd lots.

In order to assist small shareholders in disposal of such odd lot
shares held in physical form, the Company has formed a Trust
known as ‘Reliance Odd Lot Shares Trust’ which will dispose
of the odd lot shares on behalf of the shareholders.

The salient features of the Scheme effective July 1, 1998, are
as under :

This Scheme is available to Indian national residents in
respect of any master folio having holdings up to 49
shares. The entire holding which is in odd lot under a
master folio has to be offered under the Scheme.

The Scheme is purely to facilitate the disposal of odd lot
Equity Shares and is absolutely optional. Shareholders
are free to avail of any other offer that may be available.

The holders of Equity Shares in odd lot may avail of the
Scheme by lodging duly filled in application form and a
duly executed transfer deed along with the relevant share
certificate(s).

The odd lot shares offered under the Scheme are sold on
a first-come-first served basis in the open market, through
designated brokers in the Bombay Stock Exchange /
National Stock Exchange.

All costs of implementing the Scheme will be borne by
the Company and shareholders will receive the full sale
proceeds of their holdings without any deduction for
service charges and brokerage.

Information Regarding Tax on Dividend and Sale of
Shares

The provisions relating to tax on dividend and sale of shares
are provided for ready reference of Shareholders:

No tax is payable by shareholders on dividend.
However, the Company is required to pay dividend
tax @ 15% and surcharge @ 10%, together with
education cess @ 2% and higher education cess
@ 1%.

Short Term Capital Gains (STCG) tax is payable @
15% (as proposed in the Finance Bill 2008-09)and
surcharge @ 10% above income level of Rs. 10 lakh in
case of ‘individuals’ together with education cess @
2% and higher education cess @ 1%, in case shares are
sold within 12 months from the date of purchase.

No Long Term Capital Gains (LTCG) tax is payable on
sale of shares through a recognised stock exchange,
provided STT as mentioned above has been paid and
shares are sold after 12 months from the date of purchase.
In any other case, lower of the following is payable as
long term capital gain tax:

(a) 20% of the capital gain computed after substituting
‘cost of acquisition’ with ‘indexed cost of
acquisition’;

(b) 10% of the capital gain computed before substituting
‘cost of acquisition’ with ‘indexed cost of
acquisition’.

Securities Transaction Tax (STT) is payable as under -
@ 0.125% (w.e.f. June 1, 2006) by both the purchaser
and the seller in respect of delivery based transactions -
@ 0.017% (w.e.f. June 1, 2006) by the seller in respect
of derivatives - @ 0.025% (w.e.f. June 1, 2006) by the
seller in respect of transactions in securities not being
settled by actual delivery.

Investor Servicing and Grievance Redressal at External
Agencies

I) Ministry of Corporate Affairs

Ministry of Corporate Affairs (MCA) has launched a
major e- Governance initiative christened as “MCA 21”
on the MCA portal (www.mca.gov.in). One of the key
benefits of this initiative includes timely redressal of
investor grievances. MCA 21 system accepts complaints
under the eForm prescribed, which has to be filed online.
The nature of complaint may relate to:

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RELIANCE INDUSTRIES LIMITED 85

Shares / Dividends

Debentures / Bonds

Fixed Deposits - non receipt of amount

(cid:127) Miscellaneous - non receipts

Any other

The status of complaint can be viewed by quoting the
Service Request Number (SRN) provided at the time of
filing the complaint.

II)

Investor Education and Protection Fund (IEPF)

IEPF is for promotion of investors’ awareness and
protection of the interests of investors. IEPF through
Investor Helpline is assisting investors- free of charge-
in redressal of their grievances. It provides a facility,
to the investors, to lodge their grievance on the
website itself. This facility is available on website
http://www.investorhelpline.in. The complaints can be
lodged on various issues such as

Refund Order / Allotment Advice related

Non-Receipt of Dividend

Non-Receipt of Share certificates / Units after
allotment / transfer / Bonus Transmission etc.

Non-Receipt of Debentures / Bond Certificate or
Interest / Redemption Amount

Offer for Rights Issue

Non-Receipt of Investments and returns thereon
on Collective Investment Schemes / Plantation
Companies

Non-Receipt of Annual Report / AGM Notice / Proxy
Form

Non-Registration of Change in Address of Investor

Non-Receipt of Fixed / Public Deposits related
amounts

Demat related Grievances

III) Securities and Exchange Board of India (SEBI)

SEBI, in its endeavour to protect the interest of investors,
has provided a platform wherein the investors can lodge
their grievances. This facility is available on the SEBI
website (www.sebi.gov.in) under the Investor Guidance
Section. The complaints can be lodged on various issues
such as:

Non receipt of dividend

Non receipt of share certificates after transfer

(cid:127) Matters pertaining to non-receipt of allotment

advice/ Refund Orders

(cid:127) Matters pertaining to Debentures

Non receipt of letter of offer of rights

Any other After lodging the complaint, the
Investors can track the status as well.

IV) Stock Exchanges

a) National Stock Exchange of India Limited (NSE) - NSE
has formed an Investor Grievance Cell (IGC) to redress
investors’ grievances electronically. IGC is manned by a
team of professionals who possess relevant experience
in the areas of capital markets, company and legal affairs;
especially trained to identify the problem faced by the
investor, and to find and resolve at the earliest. The
Investors have to log on to the website of NSE i.e.
www.nseindia.com and in the Investors Service Centre
Section they can fill in Form I or Form II depending
upon the type of complaint and file the same
electronically with NSE. Generally, complaints are
resolved within a period of 45 days.

b) Bombay Stock Exchange Limited (BSE) - BSE provides
an opportunity to its members to file their complaints
electronically through its website www.bseindia.com under
the Investor Desk Section. Here again as in case of NSE,
the Investors can fill in various complaint forms
depending upon the nature of their complaint and file
them electronically.

V) Depositories

a. National Securities Depository Limited (NSDL) - In order
to help its clients resolve their doubts, queries, complaints,
NSDL has provided an opportunity wherein they can
raise their queries by logging on to www.nsdl.co.in under
the ‘Query Now’ section or an email can be marked
mentioning the query to relations@nsdl.co.in.

b. Central Depository Services (India) Limited (CDSL) -
Investors who wish to seek general information on
depository services may mail their queries to
investors@cdslindia.com. With respect to the complaints
/ grievances of the demat accountholders relating to the
services of the Depository participants, mails may be
addressed to complaints@cdslindia.com.

8. Other Information

A) Permanent Account Number (PAN):

SEBI has vide circular MRD/DoP/Cir-05/2007 dated April
27, 2007 made PAN the sole identification number for
all participants in the securities market, irrespective of
the amount of transaction. Now onwards, it has become
mandatory to quote PAN before entering into any
transaction in the securities market. PAN Card is now
mandatory for operating a demat account. Application
for fresh allotment of PAN can be made through Internet.
Further, requests for changes or correction in PAN data
or request for new PAN card (for an existing PAN) may
also be made through Internet. The detailed procedure
on this has been mentioned on the website (www.tin-
nsdl.com). The Income Tax Department of India has
highlighted the importance of PAN on its website
incometaxindia.gov.in wherein lot of queries with respect
to PAN have been replied in the FAQ section.

B) Insider Trading:

‘Insider Trading’ is a process in which any person who, is
or was connected with the company or is deemed to have
been connected with the company, on the basis of

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86

Touching lives. Transforming India.

possession of unpublished price sensitive information
trades in the shares of the Company for personal gains
to the detriment of other innocent investors. In order to
prevent insider trading and protect the rights of innocent
investors, SEBI has enacted the SEBI (Prohibition of
Insider Trading) Regulations 1992. As per Regulation 13
of the said Regulations initial and continual disclosures
are required to be made by investors as under:

Initial Disclosure:

Any person who holds more than 5% shares or voting
rights in any listed company shall disclose to the company
[in Form A], the number of shares or voting rights held
by such person, on becoming such holder, within 4
working days of : (a) the receipt of intimation of allotment
of shares; or (b) the acquisition of shares or voting rights,
as the case may be.

Continual Disclosure:

Any person who holds more than 5% shares or voting
rights in any listed company shall disclose to the company
[in Form C] the number of shares or voting rights held
and change in shareholding or voting rights, even if such
change results in shareholding falling below 5%, if there
has been change in such holdings from the last disclosure
made under sub-regulation (1) or under this sub-regulation;
and such change exceeds 2% of total shareholding or
voting rights in the company.

9. Contact Details

Ministry of Corporate Affairs
‘A’ wing, Shastri Bhawan Rajendra Prasad Road,
New Delhi - 110 001.
Phone : 011 - 23384660, 23384470, 23389403
Website: www.mca.gov.in

Depositories

National Securities Depository Limited
Trade World, A Wing, 4th & 5th Floors,
Kamala Mills Compound, Senapati Bapat Marg,
Lower Parel, Mumbai 400 013.
Tel +91 22 2499 4200
Fax +91 22 2497 2993 / 2497 6351
e-mail: info@nsdl.co.in
Website: www.nsdl.co.in

Central Depository Services (India) Limited
Phiroze Jeejeebhoy Towers, 16th Floor,
Dalal Street, Mumbai 400 023.
Tel +91 22 2272 3333
Fax +91 22 2272 3199 / 2272 2072
e-mail: investors@cdslindia.com
Website: www.cdslindia.com

Registrars and Transfer Agents
Karvy Computershare Private Limited
Karvy House, 46, Avenue 4,
Street No. 1, Banjara Hills, Hyderabad 500 034.
Tel +91 40 2332 0666 / 2332 0711 /
2332 3037 / 2332 3031
Fax +91 40 2332 3058
e-mail: rilinvestor@karvy.com

Securities and Exchange Board of India
SEBI Bhavan, Plot No. C4-A,
‘G’ Block, Bandra-Kurla Complex, Bandra (East),
Mumbai 400 051.
Tel +91 22 26449000 / 40459000
e-mail: sebi@sebi.gov.in

Securities and Exchange Board of India
Office of Investor Assistance and Education
SEBI Bhavan, Plot No. C4-A, ‘G’ Block,
Bandra-Kurla Complex, Bandra (East),
Mumbai 400 051.
Tel +91 22 26449188/26449199
Fax +91 22 2644 9039
e-mail: oiac_assistance@sebi.gov.in

Registrar of Companies,
Maharashtra Everest,
100 Marine Drive, Mumbai 400 002.
Tel +91 22 22812639
Fax +91 22 22811977
e-mail: rocbom.sb@sb.nic.in

Company Law Board
(Western Region Bench)
2nd Floor, NTC House,
15, N.M. Marg, Ballard Estate,
Mumbai 400 038.
Tel +91 22 2261 1456

Regional Director (Western Region)
Ministry of Corporate Affairs
Everest, 5th Floor, 100, Marine Drive,
Mumbai 400 002.
Tel +91 22 2281 7259
Fax +91 22 2281 2389
e-mail: rdwest@sb.nic.in

Bombay Stock Exchange Limited (BSE)
Phiroze Jeejeebhoy Towers,
Dalal Street,
Mumbai 400 001.
Tel +91 22 2272 1233 / 4
Fax +91 22 2272 1919
e-mail: is@bseindia.com
Website: www.bseindia.com

The National Stock Exchange of India Limited (NSE)
“Exchange Plaza” Plot No. C/1,
“G” Block Bandra-Kurla Complex, Bandra (E),
Mumbai 400 051.
Tel +91 22 2659 8100 - 8114
Fax +91 22 2659 8120
e-mail: ccnse@nse.co.in
Website: www.nseindia.com

RELIANCE INDUSTRIES LIMITED 87

General Shareholder Information covering inter alia
listing details, stock market data, the Company’s share
price performance etc. is provided in the Report on
Corporate Governance forming part of the Annual
Report.

NOTE:

The terms ‘shareholders’ and ‘investors’ have been used
interchangeably. The contents of this Referencer are for the
purpose of general information of readers; for full particulars
/ provisions, readers are advised to refer to the relevant Acts
/ Rules / Regulations / Guidelines / Clarifications. Shareholders
are requested to give their feedback in the Feedback Form
provided in the Annual Report.

DEALING IN SECURITIES MARKET

DO’S

Insist that the DIS numbers are pre-printed and your
account number (client id) be pre stamped.

Incase you are not transacting frequently make use of
the freezing facilities provided for your demat account.

Pay the margins required to be paid in the time
prescribed.

Deliver the shares in case of sale or pay the money in
case of purchase within the time prescribed.

Participate and vote in general meetings either
personally or through proxy.

Be aware of your rights and responsibilities.

Incase of complaints approach the right authorities
for redressal in a timely manner

DON’TS

Transact only through Stock Exchanges.

Don’t undertake off-market transactions in securities.

Deal only through SEBI registered intermediaries.

Don’t deal with unregistered intermediaries.

Don’t fall prey to promises of unrealistic returns.

Don’t invest on the basis of hearsay and rumors; verify
before investment.

Don’t forget to take note of risks involved in the
investment.

Don’t be misled by rumours circulating in the market.

Don’t follow the herd or play on momentum - it could
turn against you.

Don’t be misled by so called hot tips.

Don’t try to time the market.

Don’t hesitate to approach the proper authorities for
redressal of your doubts / grievances.

Don’t leave signed blank Delivery Instruction Slips of
your demat account lying around carelessly or with
anyone.

Do not sign blank Delivery Instruction Slips (DIS) and
keep them with Depository Participant (DP) or broker
to save time. Remember your carelessness can be
your peril.

Complete all the required formalities of opening an
account properly (Client registration, Client agreement
forms etc).

Ask for and sign “Know Your Client Agreement”.

Read and properly understand the risks associated
with investing in securities / derivatives before
undertaking transactions.

Assess the risk - return profile of the investment as
well as the liquidity and safety aspects before making
your investment decision.

Ask all relevant questions and clear your doubts with
your broker before transacting.

Invest based on sound reasoning after taking into
account all publicly available information and on
fundamentals.

Give clear and unambiguous instructions to your broker
/ sub-broker / depository participant.

Be vigilant in your transactions.

Insist on a contract note for your transaction.

Verify all details in contract note, immediately on
receipt.

Crosscheck details of your trade with details as available
on the exchange website.

Scrutinize minutely both the transaction and the holding
statements that you receive from your Depository
participant.

Keep copies of all your investment documentation.

Handle Delivery Instruction Slips (DIS) Book issued
by DP’s carefully.

Touching lives. Transforming India.

Directors’ Report

Dear Shareholders,

Your Directors are pleased to present the 34th Annual Report and the audited accounts for the financial year ended March 31, 2008.

Financial Results

The financial performance of the Company for the financial year ended March 31, 2008 is summarised below:

Profit before Depreciation,
Interest & Tax

Less:

Interest

Less:

Depreciation

Transfer from
Revaluation
Reserve

Profit before Tax

Less:

Provision for
Current Taxation

Provision for
Fringe Benefit Tax

Provision for
Deferred Tax

Profit after Tax

Add:

Balance in Profit
and Loss Account

Excess provision
for tax for earlier years

Amount Available for Appropriation

Appropriations:

General Reserve

Dividend on Equity Shares

Tax on dividend

Balance carried to Balance Sheet

2006-2007

Rs. crore

$ Mn*

20,524.51

1,188.89

4,722

274

6,627.85

1,780.71

2007-2008

Rs. crore

28,934.64

1,077.36

4,847.14

23,010.14

2,604.96

47.00

899.89

19,458.29

$ Mn*

7,212

269

1,208

5,735

649

224

4,850

6,812.16

1,997.01

4,815.15

14,520.47

1,617.10

40.34

919.63

11,943.40

2,765.37

689

3,029.09

48.10

22,271.76

16,000.00

1,631.24

277.23

4,363.29

22,271.76

5,551

3,988

406

1,088

5,551

0.51

14,973.00

3,444

10,565.17

1,440.44

202.02

2,765.37

14,973.00

2,430

331

636

3,444

1,108

3,340

372

212

2,747

697

* 1 $ = Rs 40.12 Exchange Rate as on March 31, 2008 (1 $ = Rs 43.47 as on March 31, 2007)

Results of Operations

During the year, the Company has scaled new heights and set
several new benchmarks in terms of sales, profits, networth and
assets. This was a landmark year for the Company as it delivered
record financial and operating performance amidst challenging
and volatile market conditions. Turnover for the year was
Rs. 1,39,269 crore ($ 34.7 billion) against Rs. 1,18,354 crore
($ 27.2 billion) in the previous year, reflecting a growth of 18%.
During the year, exports were higher by 25% at Rs.83,492 crore ($
20.8 billion).

Profit after tax, including exceptional item, for the year was
Rs.19,458 crore ($ 4.9 billion) as against Rs.11,943 ($ 2.7 billion)
crore for the previous year, registering an increase of 63%. Profit
after tax, excluding exceptional item was Rs. 15,261 crore ($ 3.8
billion), representing an increase of 28% and the Compounded
Annual Growth Rate (CAGR) of 30% over the past five years.

Exceptional item of Rs. 4,733 crore ($ 1.2 billion) represents
gains primarily arising out of transactions concerning shares of
Reliance Petroleum Limited, a subsidiary of the Company.

RELIANCE INDUSTRIES LIMITED 89

The Company is one of India’s largest contributors to the national
exchequer primarily by way of payment of taxes and duties to
various government agencies. During the year, a total of Rs.13,696
crore ($ 3.4 billion) was paid in the form of various taxes and
duties.

Dividend

Your Directors have recommended a dividend of Rs. 13/- per Equity
Share (last year Rs. 11/- per Equity Share) for the financial year
ended March 31, 2008, amounting to Rs.1,631 crore - the highest
ever payout by any private sector company in India. The dividend
will be paid to members whose names appear in the Register of
Members as on May 9, 2008; in respect of shares held in
dematerialised form, it will be paid to members whose names are
furnished by National Securities Depository Limited and Central
Depository Services (India) Limited as beneficial owners as on
that date.

The dividend pay out for the year under review has been formulated
in accordance with the Company’s policy to pay sustainable dividend
linked to long term performance, keeping in view the Company’s
need for capital for its growth plans and the intent to finance such
plans through internal accruals to the maximum.

Credit Rating

The Company has the highest domestic credit ratings of AAA
from CRISIL and Fitch. Moody’s and S&P have reaffirmed
investment grade ratings for international debt of the Company, as
Baa2 and BBB, respectively. The Company’s international rating
from S&P is higher than the country’s sovereign rating.

Employees Stock Option Scheme

Members’ approval was obtained at the Annual General Meeting
held on June 27, 2006 for introduction of Employees Stock Option
Scheme.

Employees Stock Option Scheme was approved and implemented
by the Company and Options were granted to employees in
accordance with the Securities and Exchange Board of India
(Employee Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999 (‘the SEBI Guidelines’). The Employees
Stock Compensation Committee, constituted in accordance with
the SEBI Guidelines, administers and monitors the Scheme.

The applicable disclosures as stipulated under the SEBI Guidelines
as at March 31, 2008 are given below:

a. Options Granted

b. Exercise Price

29,763,000

Exercise Price
1,284*
1,684*
2,292*
* Plus applicable taxes, as may be levied on the Company

Options granted
28,728,000
27,000
1,008,000

c. Options Vested

d. Options Exercised

e. The total number of shares arising
as a result of exercise of Options

Nil

f. Options Lapsed

g. Variation in terms of Options

h. Money realised by exercise of Options

1,711,600

Nil

i. Total number of Options in force

28,051,400

j. Employee wise details of Options

granted to:

i. Senior Management Personnel

1. Shri Nikhil R.Meswani
2. Shri Hital R. Meswani
3. Shri Hardev Singh Kohli

7,00,000
7,00,000
50,000

ii. Any other employee who received
a grant in any one year of Options
amounting to 5% or more of
Options granted during that year

iii.Identified employees who were

granted Options, during any one
year, equal to or exceeding 1% of
the issued capital (excluding
outstanding warrants and
conversions) of the Company
at the time of grant

k. Diluted Earnings Per Share (EPS)

before exceptional items pursuant to
issue of shares on exercise of Options
calculated in accordance with
Accounting Standard (AS) 20
‘Earnings Per Share’

Nil

Rs. 104.98

As the exercise would be made at the market price prevailing as on
the date of the grant plus applicable taxes as may be levied on the
Company, the issuance of equity shares pursuant to exercise of
Options will not affect the profit and loss account of the Company.

The Company has received a certificate from the Auditors of the
Company that the Scheme has been implemented in accordance
with the SEBI Guidelines and the resolution passed at the Annual
General Meeting held on June 27, 2006. The Certificate would be
placed at the Annual General Meeting for inspection by members.

Management’s Discussion and Analysis Report

Management’s Discussion and Analysis Report for the year under
review, as stipulated under Clause 49 of the Listing Agreement with
the Stock Exchanges in India, is presented in a separate section
forming part of the Annual Report.

The Company has entered into various contracts in the areas of oil
& gas, refining and petrochemicals businesses. While benefits from
such contracts will accrue in the future years, their progress is
periodically monitored.

Additionally, some of the major events of the year include the
following:

During the year the Company’s Oil and Gas Exploration &
Production business made significant offshore discoveries in
the east and west coast of India. RIL surpassed its previous
record and had 9 discoveries. Three gas discoveries were made
in the Krishna basin in deep water (KG-D6-R1, KG-V-D3-A1

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90

Touching lives. Transforming India.

& B1). Two more gas discoveries were made in the Krishna
basin in shallow water (KG-III-05-P1 & J1). A deep water
discovery was made in the Cauvery basin (CY-D5-A1) yielding
both oil and gas. An oil discovery was made in the deep waters
of the prolific Krishna basin (KG-D4-MD1). One gas discovery
each was made in the shallow waters of the Gujarat-Saurashtra
basin (GS-01-B1) and Mahanadi basin (NEC-25-J1). In order
to assess their commerciality, appraisal process is underway.
The development plan for MA field (Dhirubhai-26) has been
approved by the Management Committee. The development
plan for Sohagpur Coal Bed Methane blocks (East and West)
approved by the DGH.

During the year, the Company signed an agreement to acquire
certain polyester (capacity) assets of Hualon, Malaysia. It is a
leading polyester producer in Malaysia with a capacity of half
a million tonnes per annum along with downstream textile
manufacturing capabilities spread over two locations in
Malaysia, namely Nilai and Malacca. This acquisition was the
second international acquisition in the polyester sector after
the Company acquired Trevira in Europe. This acquisition
will help the Company consolidate its position as the world’s
largest polyester manufacturer with an annual capacity of 2.5
million tonnes, which represents an increase of 25% over its
existing capacity. With this acquisition, Reliance’s global
market share in polyester fibre and yarn will exceed 7%.

In the Refining & Marketing business, the Company took
over majority control of Gulf Africa Petroleum Corporation
(GAPCO) and started shipping products to the East African
markets. GAPCO owns and operates large storage terminal
facilities and a retail distribution network in countries like
Tanzania, Uganda and Kenya. It owns and operates large
coastal storage terminals in Dar es Salaam (Tanzania),
Mombassa (Kenya), and Kampala (Uganda). It has other well-
spread depots in East and Central Africa and operates nearly
250 retail outlets.

The Company also signed MoU with GAIL (India) Limited to
explore opportunities of setting up petrochemical plants in
feedstock rich countries outside India.

Subsidiaries

Ministry of Corporate Affairs, Government of India, vide order
No. 47/108/2008-CL-III dated April 16, 2008 has granted approval
that the requirement to attach various documents in respect of
subsidiary companies, as set out in sub-section (1) of Section 212
of the Companies Act, 1956, shall not apply to the Company.
Accordingly, the Balance Sheet, Profit and Loss Account and other
documents of the subsidiary companies are not being attached with
the Balance Sheet of the Company. Financial information of the
subsidiary companies, as required by the said order, is disclosed in
the Annual Report. The Company will make available the Annual
Accounts of the subsidiary companies and the related detailed
information to any member of the Company who may be interested
in obtaining the same. The annual accounts of the subsidiary
companies will also be kept open for inspection by any investor at
the Registered Office of the Company and that of the respective
subsidiary companies. The Consolidated Financial Statements
presented by the Company include financial results of its subsidiary
companies.

Reliance Petroleum Limited (RPL), a listed subsidiary of the
Company, has set a rapid pace on all fronts in the implementation
of a world-class, complex greenfield refinery at Jamnagar in Gujarat.
The project has made rapid strides during the year and achieved
overall progress of 90%. Based on the progress made so far, RPL
expects to complete the refinery project ahead of its initial schedule
of December, 2008. During the year, the Company sold 20.80
crore equity shares, representing 4.62% of the equity share capital
of RPL out of its holding of 75%. After this sale, the shareholding
of the Company in RPL stands at 70.38%. The sale of shares
monetized only a small portion of the Company’s holding in RPL
and helped to broadbase the shareholding of RPL, besides unlocking
value for the Company’s shareholders.

Reliance Retail Limited (RRL), another subsidiary of the Company,
launched its first store in November 2006 through its convenience
store format ‘Reliance Fresh’. Since then RRL has rapidly grown
to operate 590 stores across 13 states at the end of Financial Year
2007-08. RRL launched its first ‘Reliance Digital’ store in April
2007 and its first and India’s largest hypermarket ‘Reliance Mart’
in Ahmedabad in August 2007. This year, RRL has also launched its
first few specialty stores for apparel (Reliance Trends), footwear
(Reliance Footprints), jewellery (Reliance Jewels), books, music
and other lifestyle products (Reliance Timeout), auto accessories
and service format (Reliance Autozone) and also an initiative in
the health and wellness business through ‘Reliance Wellness’. In
each of these store formats, RRL is offering a unique set of products
and services at a value price point that has not been available so far
to the Indian consumer. Overall, RRL is well positioned to rapidly
expand its existing network of 590 stores which operate in 57
cities.

Reliance Ventures Limited, a subsidiary of the Company in a joint
venture with Haryana State Industrial Investment Development
Corporation (HSIIDC), is promoting Reliance Haryana SEZ Limited
(RHSEZ) to develop the two SEZs in Haryana State. The proposed
SEZs will function as an integrated package with all the required
infrastructure facilities to ensure sustainable development of
medium and large scale industries and service activities with
sufficient provision for future growth and expansion.

More details of the above subsidiaries of the Company are covered
in Management’s Discussion and Analysis Report forming part of
the Annual Report.

Directors

In terms of Article 155 of the Articles of Association of the
Company, Shri R.H. Ambani, Shri S. Venkitaramanan, Prof. Ashok
Misra and Shri Nikhil R. Meswani, Directors, retire by rotation and
being eligible, offer themselves for reappointment at the ensuing
Annual General Meeting. Brief resume of the Directors proposed
to be reappointed, nature of their expertise in specific functional
areas, names of companies in which they hold directorships and
memberships /chairmanships of Board Committees, shareholding
and relationships between directors inter-se, as stipulated under
Clause 49 of the Listing Agreements with the Stock Exchanges in
India, are provided in the Report on Corporate Governance.

Group

Pursuant to an intimation from the Promoters, the names of the
Promoters and entities comprising ‘group’ as defined under the
Monopolies and Restrictive Trade Practices (“MRTP”) Act, 1969

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RELIANCE INDUSTRIES LIMITED 91

are disclosed in the Annual Report for the purpose of the SEBI
(Substantial Acquisition of Shares and Takeovers) Regulations, 1997.

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 read with requirements set out under
Schedule VI to the Companies Act, 1956, have been followed
and there are no material departures from the same;

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 March 31,
2008 and of the profit of the Company for the year ended on
that date;

(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 annual accounts of the

Company on a ‘going concern’ basis.

Consolidated Financial Statements

In accordance with the Accounting Standard AS-21 on Consolidated
Financial Statements read with Accounting Standard AS-23 on
Accounting for Investments in Associates, the audited Consolidated
Financial Statements are provided in the Annual Report.

Auditors and Auditors’ Report

M/s. Chaturvedi & Shah, Chartered Accountants, M/s. Deloitte
Haskins & Sells, Chartered Accountants and M/s. Rajendra & Co.,
Chartered Accountants, Statutory Auditors of the Company, hold
office until the conclusion of the ensuing Annual General Meeting
and are eligible for reappointment.

The Company has received letters from all of them to the effect
that their reappointment, if made, would be within the prescribed
limits under Section 224(1B) of the Companies Act, 1956 and that
they are not disqualified for such reappointment within the meaning
of Section 226 of the said Act.

The Notes on Accounts referred to in the Auditors’ Report are
self-explanatory and therefore do not call for any further comments.

Cost Auditors

The Central Government had directed an audit of the cost accounts
maintained by the Company in respect of textiles, polyester and
chemicals businesses. The Central Government has approved the
appointments of Shri S. N. Bavadekar, Cost Accountant, for
conducting the cost audit for textiles, a part of the polyester business
and a part of chemicals business, M/s. V.J. Talati & Co., Cost
Accountants, for conducting the cost audit of a part of the
chemicals business, M/s. Diwanji & Associates, M/s. Kiran J. Mehta
& Co., Cost Accountants for conducting cost audit of a part of the
chemicals business and M/s. Bavadekar & Co., M/s. V. Kumar &

Associates, M/s. K. G. Goyal & Associates and Shri R. C. Srivastava,
Cost Accountants, for conducting the cost audit of a part of the
polyester business for the financial year ended March 31, 2008.

Secretarial Audit Report

As a measure of good corporate governance practice, the Board of
Directors of the Company appointed Dr. K.R. Chandratre,
Practicing Company Secretary, to conduct Secretarial Audit of the
Company. The Secretarial Audit Report for the financial year
ended March 31, 2008, is provided in the Annual Report.

The Secretarial Audit Report confirms that the Company has
complied with all the applicable provisions of the Companies Act,
1956, Depositories Act, 1996, Listing Agreements with the Stock
Exchanges, Securities Contracts (Regulation) Act, 1956 and all the
Regulations of SEBI as applicable to the Company, including the
Securities and Exchange Board of India (Substantial Acquisition of
Shares and Takeovers) Regulations, 1997 and the Securities and
Exchange Board of India (Prohibition of Insider Trading)
Regulations, 1992.

Particulars of Employees

In terms of the provisions of Section 217(2A) of the Companies
Act, 1956, read with the Companies (Particulars of Employees)
Rules, 1975 as amended, the names and other particulars of the
employees are set out in the annexure to the Directors’ Report.

However, having regard to the provisions of Section 219(1)(b)(iv)
of the said Act, the Annual Report excluding the aforesaid
information is being sent to all the members of the Company and
others entitled thereto. Any member interested in obtaining such
particulars may write to the Company Secretary at the registered
office of the Company.

Energy Conservation, Technology Absorption and Foreign
Exchange Earnings and Outgo

The particulars relating to energy conservation, technology
absorption, foreign exchange earnings and outgo, as required to be
disclosed under Section 217(1)(e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988 are provided in the Annexure-I
to this Report.

Transfer of Unpaid and Unclaimed amounts to IEPF

Pursuant to the provisions of Section 205A(5) of the Companies
Act, 1956, the declared dividends and interest on debentures which
remained unpaid or unclaimed for a period of 7 years have been
transferred by the Company to the Investor Education and
Protection Fund (IEPF) established by the Central Government
pursuant to Section 205C of the said Act.

Corporate Governance

The Company is committed to maintain the highest standards of
Corporate Governance. The Directors adhere to the requirements
set out by the Securities and Exchange Board of India’s Corporate
Governance practices and have implemented all the stipulations
prescribed. The Company has implemented several best corporate
governance practices as prevalent globally.

The Report on Corporate Governance as stipulated under Clause
49 of the Listing Agreement forms part of the Annual Report.

Touching lives. Transforming India.

The declaration regarding compliance with RIL Code of Business
Conduct and Ethics for Directors and Management Personnel forms
part of Report on Corporate Governance.

The requisite Certificate from the Auditors of the Company,
M/s. Chaturvedi & Shah, M/s. Deloitte Haskins & Sells and
M/s. Rajendra & Co., confirming compliance with the conditions
of Corporate Governance as stipulated under the aforesaid Clause
49, is attached to this Report.

Acknowledgement

Your Directors would like to express their appreciation for assistance
and co-operation received from the financial institutions, banks,
Government authorities, customers, vendors and members during
the year under review. Your Directors also wish to place on record
their deep sense of appreciation for the committed services by the
executives, staff and workers of the Company.

For and on behalf of the Board of Directors

Mukesh D. Ambani
Chairman & Managing Director

Mumbai
April 21, 2008

Annexure – I

Particulars required under the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988.

A. CONSERVATION OF ENERGY

(a) Energy conservation measures taken:

Some major energy conservation measures carried
out during the year are listed below:

At Hazira Manufacturing Division’s Captive Power
Plant, energy saving has been achieved by usage of
HP fuel gas make-up substituting C4 at the rate of
1.2 Ton Per Hour (TPH).

At Jamnagar Manufacturing Division’s Sulphur
Complex, energy saving has been achieved by adding
Plate & Frame exchanger in place of existing rich
/ lean amine shell & tube exchanger in ATU.

At Hazira Manufacturing Division, energy saving
has been achieved by reduction of C3 at the rate of
1.6 TPH dumping in fuel gas header and export
Cracker gas as per Naphtha quality.

At Hazira Manufacturing Division’s Mono
Ethylene Glycol - 2 Plant, reduction in ethylene
burning has been achieved by substituting steam due
to high selectivity catalyst.

Improvement in biogas recovery was done at Hazira
Manufacturing Division. Further, as a part of Clean
Development Mechanism (CDM), a project on
energy efficiency through steam optimization
(Cracker and Aromatics Plant steam optimization
measures) has been completed.

6) Methyl Acetate recovery; optimization of quench
air conditions in all products; stopping of pack pre-
heaters in spinning by improving pack life &
optimizing pack inventory; and process changes in
exchanger EA-402 were carried out at Patalganga
Manufacturing Division which resulted in significant
energy savings and revenues.

At Patalganga Manufacturing Division, reduction
in specific heating oil consumption in CP7 by trap
design modification & process optimization was
achieved. Also, parallel reboiler to R/R column E-
1035N, activation of economizer mode in inverters
for spinning & CP equipments and stopping of brine
chillers resulted in savings of energy.

Under Energy Saving Scheme-II, installation of
E-1221 and D-1221 were carried out at Kurkumbh
Manufacturing Division.

Air Conditioning system optimization was
completed at Silvassa Manufacturing Division.

10) Energy saving by replacing HP steam with MP
steam in stripper reboiler in VGO Hydrotreater
contributed to energy saving was achieved at
Jamnagar Manufacturing Division.

RELIANCE INDUSTRIES LIMITED 93

11) Cooling tower ID fans were replaced with high-
flow energy efficient fans at Nagothane Manu-
facturing Division.

12) Reduction in power of compressed air system was
achieved at Allahabad Manufacturing Division.

13) Air washer system in AHU was completed at Silvassa

Manufacturing Division.

14) Hydrocarbon recovery from CG Sour oil trap vent
from atmosphere to first stage suction drum was
achieved at Dahej Manufacturing Division.

15) HRSG Burner modification No. 5 was carried out at

Hazira Manufacturing Division.

16) Optimized Loading of Spinneret in Pack Pre Heaters

was done at Allahabad Manufacturing Division.

17) Stopping of 6 nos. aerators in monsoon period was
completed at Nagothane Manufacturing Division.

18) At Dahej Manufacturing Division, saving in
demineralized water was achieved as a result of
ethylene oxide recatalyzation, cleaning of Ethylene
Oxide Reactor by gas cooler and replacement of
ion exchange resulted in increase of cycle time.

(b) Additional investments / proposals being imple-

mented for reduction of consumption of energy

Increase in Pre-heat temperature from 241 Degrees
Celsius to 266 Degrees Celsius by Heat recovery
from Vacuum gas oil (VGO) product stream in Crude
distillation unit (CDU) 1 and 2 was achieved at
Jamnagar Manufacturing Division.

2) Mono Ethylene Glycol plant (MEG) 3 plant parallel
reactor operation and usage of S-882 catalyst at
Hazira Manufacturing Division.

As part of CDM, at Hazira Manufacturing Division
following initiatives have been planned (a) Make-
up Water Heaters in Heat recovery steam generator
(HRSG) (58496 Certified emission reductions
(CER) per annum); (b) PTA-3 energy efficiency
through waste heat recovery (48626 CERs per
annum); (c) Biogas recovery from effluents and
thus fossil fuel replacement (7400 CERs per annum)
and (d) HRSG Burner modification (14057 CERs
per annum).

Recovery of pentane in Paraxylene Plant was done
at Patalganga Manufacturing Division.

Scheme for reducing supplementary firing in HRSGs-
1, 2, 8 & 9 by Superheater modification of CPP at
Hazira Manufacturing Division.

Fuel gas heating from 25 Degrees Celsius to 180
Degrees Celsius at 9 Gas turbines (GT) using stack
heat via makeup water heater resulted in 25 kg/hr/
GT fuel saving at Hazira Manufacturing Division.

Coal based heating oil system in POY Plant was
used at Nagpur Manufacturing Division.

CPP On-line Optimiser was initiated for fuel saving
in CPP at Hazira Manufacturing Division.

Glycol jet ejectors (CP 1/2/3) were installed in
Polyester Yarn Plant at Hazira Manufacturing
Division.

10) Dehydrator regeneration gas exchanger provision
was made in Ethane Propane Recovery Unit
(EPRU) Plant at Dahej Manufacturing Division.

11) Replaced old small size oil type compressors with
large size oil free compressors at Silvassa
Manufacturing Division.

12) Reduction by 60 Degrees Celsius in recycle furnace
stack was achieved by cleaning Cracker unit at
Hazira Manufacturing Division’s.

13) New compressor for balance hydrogen recovery was
installed in chlor alkali (CA) plant of Dahej
Manufacturing Division.

14)

15)

16)

Installed new injection heater for maximization of
condensate recycle in Purified Terephthalic Acid
(PTA) plant at Hazira manufacturing Division.

Increasing CP 4, 5, 6 return dowtherm condensate
temperature from 265 Degrees Celsius to 288
Degrees Celsius in PSF plant at Hazira
Manufacturing Division.

Installed new burner in the Steam super heater to
extract energy from waste gases at Kurkumbh
Manufacturing Division.

17) Coating of cooling water pumps was done at

Nagothane Manufacturing Division.

18) Replaced insulation of Xylene fractionation column

at Patalganga Manufacturing Division.

19) Nagpur Manufacturing Division, reduced contract
maximum demand for plant to reduce costs.

20) Reduced steam consumption by 0.1 MT/MT by
process optimization in Polyester Staple Fibre (PSF)
plant at Barabanki Manufacturing Division.

(c)

Impact of measures at (a) & (b) above for
reduction of energy consumption and consequent
impact on the cost of production of goods

At Jamnagar Manufacturing Division, an estimated
energy savings of Rs. 35 crore per annum is expected
in the next financial year. This is being achieved by
increasing pre-heat temperature from 241 Degrees
Celsius to 266 Degrees Celsius by Heat recovery
from VGO product stream in CDU1 & CDU2.

Hazira Manufacturing Division achieved a saving
of Rs.15 crore per annum by usage of high pressure
(HP) fuel gas in Cracker as fuel gas make up to
substitute C4. Other 28 major schemes implemented
throughout the year resulted in saving of Rs. 8 crore
per annum.

At Jamnagar Manufacturing Division, by adding
Plate & Frame exchanger in place of existing rich
/ lean amine Shell & Tube exchanger in ATU,

Touching lives. Transforming India.

revenue saving of Rs. 14 crore per annum was
achieved.

Hazira Manufacturing Division achieved a saving
of Rs. 7 crore per annum by reducing C3 @ 1.6
TPH dumping in fuel gas header and export cracker
gas as per naphtha quality.

In MEG - 2 Plant, reduction in ethylene burning by
substituting steam resulted in saving of Rs. 6 crore
per annum and also a biogas recovery improvement
resulted in savings to the tune of Rs. 5 crore per
annum at Hazira Manufacturing Division.

Various energy conservation measures undertaken
by the polyester manufacturing divisions at
Allahabad, Barabanki, Dhenkanal, Hoshiarpur,
Nagpur and Silvassa has resulted in savings of
revenue to the tune of Rs. 3 crore per annum.
Further, an estimated saving of Rs. 12 crore per
annum is expected in the next financial year.

At Patalganga Manufacturing Division, the cost
reduction achieved by energy savings schemes work
out to Rs. 6 crore per annum.

(d) Total energy consumption and energy consump-
tion per unit of production as per Form ‘A’
attached hereto

B. TECHNOLOGY ABSORPTION

(e) Efforts made in technology absorption - as per

Form B given below:

Form B

Research and Development (R&D)

Specific areas
in which the research and
development (R&D) is being carried out by the
Company

State-of-art chromatographic,
spectroscopic,
microscopic facilities (like SEM, XRD, NMR etc)
establishment in Hazira. New generation polymer
technology development, new product development
and improved product were carried out.

Technology for polypropylene product - from
concept to pilot scale development and moving
towards commercial trial in Hazira.

(cid:127) Manufacturing process

improvement using
advance microscopy and spectroscopy technique
for value addition in PP, PE, PVC, RELPIPE, PTA
and PSF product.

Hazira was invited and participated in research
paper presentation in national & international
conference; Development partnership with UICT,
DSIR and others for developmental program &
manufacturing excellence; 1 US Patent granted to
RIL on Polyolefin.

Launching of improved version of catalyst &
process for PDEB production in Vadodara.

New generation catalyst for paraffin dehydro
genation.

Lab. scale catalysts for hydrocarbon oxidation &
acetylene (in HCl) hydrogenation.

Catalysts & process for production of C6 & C8
co-monomers

(cid:127) Mathematical modeling of oxy reactor & EDC

cracker.

Processes for removal of toxic pollutants (cyanide
& benzene) from waste water streams

Adsorptive purification of polyethylene.
High impact PP and Clarified PP grades for niche
market. This is achieved through new additives.
The additives have the capability to improve the
impact properties of PP. A new approach for low
cost clarifier of PP is also being developed at
lab scale.

Development of PE-100 plus (HMHDPE)
pipe grade.

UHMWPE: Slurry polymerization in hexane.

Alternate chain transfer agent in polymerization
of 1, 3-butadiene.

Pacol reactor optimization in Patalganga.

Development of pulsar fancy yarn products.

Development for taffetta fabrics, Yarns for single
end sizing application.

Additive cost reduction in Hoshiarpur.

Bi-shrinkage yarn produced in Nagpur.

2. Benefits derived as a result of the above R&D

Unique process with super selective catalyst for
production of export quality PDEB with above 99.0%
purity.

Catalyst with higher selectivity & lesser raw
material consumption. A potential cost reduction
of Rs. 23 crore was achieved due to this.

Noble metal based catalysts for oxidation &
hydrogenation. A potential cost reduction of Rs. 3
crore is estimated.

Potential value generation for Rs. 4 crore was
achieved due to catalysts & process for production
of C6 & C8 co-monomers in Vadodara.

Potential for Rs. 5 crore through reduction in
alumina consumption is estimated by adsorptive
purification of polyethylene in Vadodara.

Potential benefit Rs. 1 crore is estimated due to
alternate chain transfer agent in Polymerization of
1, 3-butadiene in Vadodara.

3. Future plan of action

Basic Studies of new material development in
Hazira.

Nano structured catalysts for hydrogenation &
dehydrogenation processes in Vadodara.

Applications of nano zeolites in aromatics
conversion processes (6) Energy efficient separation
& purification processes.

Nano structured adsorbents for purification &
recovery of monomers.

Treatment of plant waste water streams for
re-use.

Development of nano metal / metal oxides
composites of polyolefin.

2. Benefits derived as a result of the above efforts

Recovery of Acetonitrile in Vadodara unit increased
from 66% to 95% resulting in an additional earning
of Rs. 1.6 crore

In ACN plant Vadodara savings on raw material,
catalyst consumption to the extent of Rs. 9.0 crore
was achieved.

In ACN plant Vadodara savings on raw material
propylene consumption to the extent of Rs. 1.4
crore was achieved.

Information regarding Imported Technology

New process for polymerization of 1, 3-butadiene
in Vadodara.

Product

Installation of SSM air texurising pilot machine in
Silvassa.

High shrinkage fiber development in Dhenkanal.

PFF silicon finish oil consumption to be reduced
by 0.5 Kg / MT in Hoshiarpur.

4. Expenditure on R & D

a) Capital

b) Recurring

c) Total

Rs. crore

203.50

104.74

308.34

d) Total R & D expenditure as a percentage of 0.22%

total turnover

Technology absorption, adoption and innovation

1. Efforts, in brief, made towards technology

absorption, adoption and innovation:

(cid:127) Methyl Acetate hydrolysis in Patalganga.

Improved & eco-friendly process for purification
& recovery of Acetonitrile in Vadodara.

The high selectivity catalyst one batch operation
completed and the technology fully absorbed in
ACN plant of Vadodara.

The technology of continuous catalyst injection
in ACN reactor fully absorbed in Vadodara.

New PP random copolymer grade SRM 250 NC
produced.

Improved dehydrogenation catalyst RPDC 10
produced.

ATY YARN technology , installation of AIKI ATY
pilot machine in Silvassa.

Bishrinkage yarn technology in Silvassa.

DM no. 1 baler modified for increasing the bale
weight of conjugate fiber in Hoshiarpur.

Technology Year of Status
import
from

import

implementa
-tion /
absorption

High performance
dehydrogenation
catalyst for LAB at
Vadodara

High selectivity
catalsyt for MEG
Production at
Vadodara

Continuous catalyst
makeup system for
A C N, Propylene
amoxidation reactor
at Vadodara

UOP

Scientific
Design

Successfully

2007-08 implemented
and absorbed.

Successfully

2007-08 absorbed
and under
implementa -
tion

Inter Cat Inc. 2007-08 Successfully
U.S.A.

implemented
and
absorbed.

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

(f) 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 on and
avail of export opportunities based on economic
considerations. During the year the Company has exports
(FOB value) worth Rs.75,974.22 crore (US$ 18,936.74
million).

(g) Total Foreign exchange earned and used

Rs. crore

a. Total Foreign Exchange earned

76,010.76

b. Total savings in foreign exchange
through products manufactured by
the Company and deemed exports
(US$ 15,671.45 million)

Sub total (a+b)

62,873.85

1,38,884.61

c. Total Foreign Exchange used

1,05,357.86

Touching lives. Transforming India.

Form ‘A’

Form of disclosure of particulars with respect to conservation of energy

Part ‘A’

Power & Fuel Consumption

April,07 to March,08

April,06 to March,07

Electricity
a) Purchased Units (Lacs)

Total Cost (Rs. In crores) #
Rate / Unit (Rs.) #

b) Generation through captive

power facilities
1) 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.)

2) Through Steam Turbine/Generator

Units (Lacs)
KWH per unit of fuel
Fuel Cost / Unit (Rs.)
3) Through Wind Mill Turbine

Units (Lacs)
Purchased Fuels consumed
Furnace Oil
Quantity (K.Ltrs)
Total Cost (Rs. In crores)
Average rate per Ltr. (Rs.)
Diesel Oil
Quantity (K.Ltrs)
Total Cost (Rs. In crores)
Average rate per Ltr. (Rs.)
Others
(a) Gas

Quantity (1000 M3)
Total Cost (Rs. In crores)
Average rate per 1000M3 (Rs)

(b) Coal

Quantity (MT)
Total Cost (Rs. In crores)
Average rate per MT (Rs.)

Internal Fuels consumed
Gas
Quantity (1000 M3)
GT fuels
Quantity (K.Ltrs)
# Excluding Demand Charges

4,732.39
167.38
3.54

4,582.19
150.62
3.29

23,738.67
4.63
1,181.36
4.98

1,298.81
3.99
5.39

55,396.09
4.29
2.37

24,310.08
4.68
1,213.14
4.99

1,246.39
4.08
4.75

51,930.66
4.49
2.83

24.37

79.58

257,000.51
504.08
19.61

25,496.61
60.11
23.58

1,358,268.20
792.96
5,838.06

20,429.00
3.28
1,607.15

208,912.67
355.36
17.01

155,990.40
318.29
20.40

1,091,968.64
774.35
7,091.34

23,032.04
4.11
1,786.30

2,473,129.32

2,428,707.83

1,213,235.02

1,210,081.53

RELIANCE INDUSTRIES LIMITED 97

Consumption per unit of Production

Product

Electricity
(KWH)

Furnace
O i l / HSD / HFHSD
(Ltrs)

LSHS
(kgs)

Gas
(SM3)

Current
Year

Previous Current Previous Current

Year

Previous
Year

Current
Year

Previous
Year

Fabrics (per 1000 mtrs)
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)
PET (per MT)
PX (per MT)
Petro-products (per MT)
PBR (per MT)
Caustic Soda (per MT)
Acrylonitrile (per MT)
Acrylic Fibre (per MT)

-
4,085 3,918
861 898 25
381 346 33
309 334 6
575 585 52
-
527 486
-
454 449
-
541 570
323 332
-
594 532 45
336 352
-
198 220 10
-
66 65
-
707 723
-
2,562 2,516
-
593 547
-
3,224

1
21
13
6
41
-
-
-
-
20
-
11
-
-
-
-
-

-
16
2
-
220
2
1
2
0
-
-
-
-
11
3
4
-

-
66
27
-
108
7
5
2
1
-
-
-
-
114
22
-
448

453
39
56
-
119
36
36
25
25
53
72
228
41
479
88
(59)
-

443
23
26
-
133
32
19
14
25
66
90
257
41
341
94
-
933

For and on behalf of the Board of Directors,

Mukesh D. Ambani
Chairman & Managing Director

Mumbai
April 21, 2008

Auditors’ Certificate on Corporate
Governance

To the Members,
Reliance Industries Limited

We have examined the compliance of conditions of Corporate
Governance by Reliance Industries Limited, for the year ended on
31st March 2008, 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 implementation thereof adopted
by the Company for ensuring compliance with the conditions of the
Corporate Governance as stiputed 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.

We state that such compliance is neither an assurance as to 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 For Deloitte Haskins & Sells For Rajendra & Co.
Chartered Accountants Chartered Accountants

Chartered Accountants

D. Chaturvedi
Partner
Membership No.5611 Membership No.31467

A. Siddharth
Partner

A. R. Shah
Partner
Membership No.47166

Place : Mumbai
Dated : April 21, 2008

Touching lives. Transforming India.

Persons constituting group coming within the definition of “group” as defined in the Monopolies and Restrictive Trade Practices Act,
1969, for the purpose of Regulation 3(1)(e)(i) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and
Takeovers) Regulations, 1997, include the following:

Sr No.

Name of the Entity

Aavaran Textiles Private Limited

Amur Trading Private Limited

Anumati Mercantile Private Limited

Bahar Trading Private Limited

Bhumika Trading Private Limited

Deccan Finvest Private Limited

Ekansha Enterprise Private Limited

Eklavya Mercantile Private Limited

Farm Enterprises Limited

Hercules Investments Private Limited

Jagadanand Investments And Trading Company Private Limited

Jagdishvar Investments And Trading Company Private Limited

Jogiya Traders Private Limited

Kankhal Investments And Trading Company Private Limited

Kardam Commercials Private Limited

Kedareshwar Investments And Trading Company Private Limited

Krish Commercials Private Limited

Kshitij Commercials Private Limited

Madhuban Merchandise Private Limited

Nikhil Investments Company Private Limited

Nityapriya Commercials Private Limited

Ornate Traders Private Limited

Pams Investments And Trading Company Private Limited

Petroleum Trust (through Trustees for sole beneficiary - M/s Reliance Industrial Investments & Holdings Limited)

Priyash Commercials Private Limited

Real Fibres Private Limited

Reliance Aromatics And Petrochemicals Private Limited

Reliance Chemicals Private Limited

Reliance Consolidated Enterprises Private Limited

Reliance Consultancy Services Private Limited

Reliance Energy And Project Development Private Limited

Reliance Industrial Infrastructure Limited

Reliance Life Sciences Private Limited

Reliance Polyolefins Private Limited

Reliance Universal Enterprises Private Limited

Reliance Welfare Association

Sanatan Textrade Private Limited

Silvassa Hydrocarbons And Investments Private Limited

Synergy Synthetics Private Limited

Terene Industries Private Limited

Tresta Trading Private Limited

Vita Investments & Trading Company Private Limited

RELIANCE INDUSTRIES LIMITED 99

Financial Statements and Notes

100

Touching lives. Transforming India.

RELIANCE INDUSTRIES LIMITED 101

Auditors’ Report

To the Members of
Reliance Industries Limited

1. We have audited the attached Balance Sheet of Reliance
Industries Limited as at March 31, 2008, the Profit and Loss
Account and also the Cash Flow Statement 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.

2. 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.

3. As required by the Companies (Auditor’s Report) Order 2003
issued by the Central Government of India in terms of sub-
section (4A) of Section 227 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.

e. On the basis of written representations received from the
Directors as on March 31, 2008 and taken on record by
the Board of Directors, we report that none of the
Directors is disqualified as on March 31, 2008 from being
appointed as a director 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 accounts
read together with the Significant Accounting Policies and
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 the case of the Balance Sheet, of the state of affairs
of the Company as at March 31, 2008;

in the case of the Profit and Loss Account, of the
Profit for the year ended on that date; and

(iii) in the case of the Cash Flow Statement, of the Cash

flows for the year ended on that date.

For Chaturvedi & Shah For Deloitte Haskins & Sells For Rajendra & Co.
Chartered Accountants Chartered Accountants

Chartered Accountants

Further to our comments in the Annexure referred to in
paragraph 3 above, we report that:

D. Chaturvedi
Partner
Membership No.: 5611 Membership No.: 31467

A. Siddharth
Partner

A. R. Shah
Partner
Membership No.: 47166

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;

Mumbai
April 21, 2008

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 those books;

The Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in agreement
with the books of account;

In our opinion and read with Note No. 5 of Schedule “O”
regarding accounting for foreign currency exchange
differences on amounts borrowed for acquisition of fixed
assets, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report are in
compliance with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act,
1956;

102

Touching lives. Transforming India.

Annexure to Auditors’ Report
Referred to in Paragraph 3 of our report of even date

In respect of its fixed assets:
a.

The Company has maintained proper records showing
full particulars including quantitative details and situation
of fixed assets on the basis of available information except
in respect of Naroda complex wherein the fixed assets
register is in the process of being updated.

b. As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner,
which in our opinion is reasonable, having regard to the
size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
In our opinion, the Company has not disposed off a
substantial part of its fixed assets during the year and the
going concern status of the Company is not affected.

In respect of its inventories:
a.

The inventories have been physically verified during the
year by the management. In our opinion, the frequency of
verification is reasonable.
In our opinion and according to the information and
explanations given to us, the procedures of physical
verification of inventories followed by the management
are reasonable and adequate in relation to the size of the
Company and the nature of its business.
The Company has maintained proper records of
inventories. As explained to us, there were no material
discrepancies noticed on physical verification of
inventories as compared to the book records.

In respect of the loans, secured or unsecured, granted or taken
by the Company to/from companies, firms or other parties
covered in the Register maintained under Section 301 of the
Companies Act, 1956:
a.

The Company has given loans to a wholly owned
subsidiary of the Company. In respect of the said loans,
the maximum amount outstanding at any time during the
year and the year-end balance is Rs. 2,887.87 crore.
In our opinion and according to the information and
explanations given to us, the rate of interest, where
applicable and other terms and conditions, are not prima
facie prejudicial to the interest of the Company.
The principal amounts, are repayable on demand and there
is no repayment schedule. The interest, where applicable,
is payable on demand.
In respect of the said loans, the same are repayable on
demand and therefore the question of overdue amounts
does not arise. In respect of interest, where applicable,
there are no overdue amounts.
The Company has not taken any loan during the year
from companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies
Act, 1956. Consequently, the requirements of Clauses
(iii) (f) and (iii) (g) of paragraph 4 of the Order are not
applicable.

In our opinion and according to the information and explanations
given to us, there is an adequate internal control system
commensurate with the size of the Company and the nature of
its business for the purchase of inventory and fixed assets and
also for the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct
major weaknesses in internal control system.
In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
a.

In our opinion and according to the information and
explanations given to us, the transactions made in
pursuance of contracts or arrangements, that need to be
entered in the Register maintained under section 301 of
the Companies Act, 1956 have been so entered.
In our opinion and according to the information and
explanations given to us, these contracts or arrangements
represent fees for professional services rendered
aggregating to Rs. 0.86 crore which appear reasonable.

6. According to the information and explanations given to us, the
Company has not accepted any deposits from the public.
Therefore, the provisions of Clause (vi) of paragraph 4 of the
Order are not applicable to the Company.
In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. 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, carried out a detailed
examination of the same.
In respect of statutory dues:
a. According to the records of the Company, undisputed
statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees’ State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and any other statutory
dues have been generally regularly deposited with the
appropriate authorities. According to the information and
explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at
March 31, 2008 for a period of more than six months from
the date of becoming payable. Amounts due and
outstanding for a period exceeding 6 months as at March
31, 2008 to be credited to Investor Education and
Protection Fund of Rs. 6.11 crore, which are held in
abeyance due to pending legal cases, has not been
considered.

b. The disputed statutory dues aggregating to Rs. 1,752.95
crore, that have not been deposited on account of disputed
matters pending before appropriate authorities are as
under:

RELIANCE INDUSTRIES LIMITED 103

13. In our opinion, the Company is not a chit fund / nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii)
of paragraph 4 of the Order are not applicable to the Company.
14. The Company has maintained proper records of the
transactions and contracts in respect of dealing or trading in
shares, securities, debentures and other investments and timely
entries have been made therein. All shares, securities, debentures
and other investments have been held by the Company in its
own name.

15. The Company has given guarantees for loans taken by others
from banks and financial institutions. According to the
information and explanations given to us, we are of the opinion
that the terms and conditions thereof are not prima facie
prejudicial to the interests of the Company.

16. The Company has raised new term loans during the year. The
term loans outstanding at the beginning of the year and those
raised during the year have been applied for the purposes for
which they were raised.

17. According to the information and explanations given to us and
on an overall examination of the Balance Sheet of the Company,
we are of the opinion that there are no funds raised on short-
term basis that have been used for long-term investment.
18. The Company has not made any preferential allotment of shares
to parties and companies covered in the Register maintained
under Section 301 of the Companies Act, 1956.

19. The Company has created securities / charges in respect of

secured debentures issued.

20. The Company has not raised any monies by way of public

issues during the year.

21. In our opinion and according to the information and explanations
given to us, no material fraud on or by the company has been
noticed or reported during the year.

For Chaturvedi & Shah For Deloitte Haskins & Sells For Rajendra & Co.
Chartered Accountants Chartered Accountants

Chartered Accountants

D. Chaturvedi
Partner

A. Siddharth
Partner

A. R. Shah
Partner

Membership No.: 5611 Membership No.: 31467

Membership No.: 47166

Mumbai
April 21, 2008

Annexure to Auditors’ Report
Referred to in Paragraph 3 of our report of even date

Sr.
No.

Name of
the statute

Nature of
the Dues

Amount
(Rs. in
crore)

Period to
which the
amount
relates

Forum where
dispute is
pending

Income Tax
Act, 1961

Income-Tax/ 1,258.29 Various years Commissioner of
Penalties

from 2000-01 Income-Tax
(Appeals)
to 2006-07

3.30

2001-02 and Income-Tax
Appellate
2002-03
Tribunal

Central Excise
Act, 1944

Excise Duty
and Service
Tax

14.62 Various years Commissioner of

from 1992-1993 Central Excise
to 2004-2005 (Appeals)

166.26 Various years Central Excise
from 1986-87 and Service Tax
to 2006-07

Appellate
Tribunal

Central Sales Tax
Act, 1956 and
Sales Tax Act
of various states

Sales Tax/
VAT and
Entry Tax

10.76 Various years Joint/ Deputy
from 1991-92 Commissioner/
Commissioner
to 2003-04
(Appeals)

69.24 Various years Sales Tax
from 1992-93 Appellate
to 2006-07

Tribunal

108.68 Various years High Court

from 1996-97
to 2003-04

Customs Act,
1962

Custom Duty

94.50

2002-03 and Commissioner
2007-08

of Customs
(Appeals)

22.98 Various years Central Excise
from 1997-98 and Service Tax
to 2005-06

Appellate
Tribunal

3.15

1997-98

High Court

Textile
Committee
Act, 1963

TOTAL

Textile
Committee
Cess

1.17 Various years Textile

from 1997-98 Committee
to 2003-04

Tribunal

1,752.95

10. The Company does not have accumulated losses at the end of
the financial year. The Company has not incurred cash losses
during the financial year covered by the audit and in the
immediately preceding financial year.

11. Based on our audit procedures and according to the information
and explanations given to us, we are of the opinion that the
Company has not defaulted in repayment of dues to financial
institutions, banks and debenture holders.

12. In our opinion and according to the explanations given to us
and based on the information available, no loans and advances
have been granted by the Company on the basis of security by
way of pledge of shares, debentures and other securities.

104

Touching lives. Transforming India.

Reliance Industries Limited
Balance Sheet as at 31st March, 2008

SOURCES OF FUNDS

Shareholders’ Funds
Share Capital
Equity Share Suspense
Equity Share Warrants
Reserves and Surplus

Loan Funds
Secured Loans
Unsecured Loans

Deferred Tax Liability

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

TOTAL

Significant Accounting Policies
Notes on Accounts

Schedule

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

1,453.39
-
1,682.40
78,312.81

6,600.17
29,879.51

1,04,229.10
42,345.47
61,883.63
23,005.84

14,247.54
6,227.58
4,280.05
72.54
24,827.71
18,058.13
42,885.84

21,045.47
2,992.62
24,038.09

1,393.21
60.14
-
62,513.78

81,448.60

63,967.13

9,569.12
18,256.61

36,479.68

7,872.54

1,25,800.82

27,825.73

6,982.02

98,774.88

99,532.77
35,872.31
63,660.46
7,528.13

84,889.47
22,063.60

71,188.59
16,251.34

12,136.51
3,732.42
1,835.35
3.07
17,707.35
12,206.00
29,913.35

16,865.53
1,712.87
18,578.40

18,847.75

1,25,800.82

11,334.95

98,774.88

‘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 Deloitte Haskins & Sells
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. Siddharth
Partner

A.R. Shah
Partner

Mumbai
April 21, 2008

V.M. Ambani
Company Secretary

Chairman & Managing Director
Executive Director
Executive Director
Executive Director

-
-
-
-

M.D. Ambani
N.R. Meswani
H.R. Meswani
H.S. Kohli
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
S. Venkitaramanan
Prof. Ashok Misra

Prof. Dipak C. Jain } Directors

Reliance Industries Limited
Profit and Loss Account for the year ended 31st March, 2008

RELIANCE INDUSTRIES LIMITED 105

INCOME

Turnover
Less: Excise Duty / Service Tax Recovered
Net Turnover
Other Income
Variation in Stocks

EXPENDITURE
Purchases
Manufacturing and Other Expenses
Interest and Finance Charges
Depreciation
Less: Transferred from Revaluation Reserve
[Refer Note 4, Schedule ‘O’]

Profit before Tax

Provision for Current Tax
Provision for Fringe Benefit Tax
Provision for Deferred Tax

Profit after Tax

Add: Balance brought forward from Previous Year

Excess Provision for Tax for earlier years

Amount Available for Appropriations

APPROPRIATIONS
General Reserve
Interim Dividend on Equity Shares
Interim Dividend on Equity Shares paid by erstwhile IPCL
Proposed Dividend on Equity Shares
Tax on Dividend

16,000.00
-
-
1,631.24
277.23

Balance Carried to Balance Sheet

Basic and Diluted Earnings per Share of face value of
Rs 10 each (in Rupees)
Basic and Diluted Earnings per Share of face value of
Rs 10 each (in Rupees) (Before exceptional items)
Basic and Diluted Earnings per Share of face value of
Rs 10 each (in Rupees) (Considering Taxation for Previous Years)
[Refer Note 13, Schedule ‘O’]
Significant Accounting Policies
Notes on Accounts

‘N’
‘ O ’

Schedule

2007-08

2006-07

(Rs. in crore)

1,39,269.46
5,826.46

1,18,353.71
6,660.99

‘J’
‘K’

‘L’
‘M’

1,33,443.00
5,628.79
(1,867.16)
1,37,204.63

6,007.71
1,02,262.28
1,077.36

6,627.85
1,780.71

6,812.16
1,997.01

1,11,692.72
478.28
654.60
1,12,825.60

1,821.28
90,479.81
1,188.89

4,815.15
98,305.13
14,520.47
1,617.10
40.34
919.63
11,943.40
3,029.09
0.51
14,973.00

12,207.63
2,765.37

82.16

82.17

4,847.14
1,14,194.49
23,010.14
2,604.96
47.00
899.89
19,458.29
2,765.37
48.10
22,271.76

17,908.47
4,363.29

133.86

104.98

134.19

10,565.17
1,345.44
95.00
-
202.02

As per our Report of even date

For and on behalf of the Board

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. Siddharth
Partner

A.R. Shah
Partner

Mumbai
April 21, 2008

V.M. Ambani
Company Secretary

Chairman & Managing Director
Executive Director
Executive Director
Executive Director

-
-
-
-

M.D. Ambani
N.R. Meswani
H.R. Meswani
H.S. Kohli
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
S. Venkitaramanan
Prof. Ashok Misra

Prof. Dipak C. Jain } Directors

106

Touching lives. Transforming India.

Reliance Industries Limited
Cash Flow Statement for the year 2007-08

A: CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit before tax as per Profit and Loss Account

23,010.14

14,520.47

2007-08

2006-07

(Rs. in crore)

Adjusted for:

Net Prior Year Adjustments

Diminution in the value / Write off of Investments

2.02

13.92

(Profit) / Loss on Sale / Discarding of Fixed Assets (net)

1.79

Depreciation

Transferred from Revaluation Reserve

Effect of Exchange Rate Change

Profit on Sale of Investments (net)

Exceptional Item

Dividend Income

Interest / Other Income

Interest and Finance Charges

6,627.85

(1,780.71)

(398.62)

(118.87)

(4,733.50)

(18.37)

(662.40)

1,077.36

(1.92)

106.50

6.19

6,812.16

(1,997.01)

(165.33)

(3.93)

(107.81)

(277.12)

1,188.89

Operating Profit before Working Capital Changes

10.47

23,020.61

5,560.62

20,081.09

Adjusted for:

Trade and Other Receivables

Inventories

Trade Payables

Cash Generated from Operations

Net Prior Year Adjustments

Taxes Paid

(3,930.18)

(2,111.03)

2,934.09

(1,465.72)

(790.56)

948.83

(3,107.12)

19,913.49

(2.02)

(2,484.73)

(1,307.45)

18,773.64

1.92

(1,905.01)

Net Cash from Operating Activities

17,426.74

16,870.55

B: CASH FLOW FROM INVESTING ACTIVITIES:

Purchase of Fixed Assets

Sale of Fixed Assets

Purchase of Investments

Sale of Investments

Movement in Loans and Advances

Interest Income

Dividend Income

(19,111.22)

14.61

(70,090.07)

69,116.24

(4,496.00)

592.99

18.37

(8,254.07)

29.69

(45,631.77)

35,539.69

(586.67)

228.31

107.81

Net Cash Used in Investing Activities

(23,955.08)

(18,567.01)

RELIANCE INDUSTRIES LIMITED 107

Cash Flow Statement for the year 2007-08 (Contd.)

2007-08

2006-07

(Rs. in crore)

C: CASH FLOW FROM FINANCING ACTIVITIES:

Proceeds from Issue of Share Capital

Proceeds from Equity Share Warrants

Proceeds from Long Term Borrowings

Repayment of Long Term Borrowings

Short Term Loans

Dividends Paid (including dividend distribution tax)

Interest Paid

Net Cash from Financing Activities

Net Increase / (Decrease) in Cash and Cash Equivalents

Opening Balance of Cash and Cash Equivalents

Add: On Amalgamation

1,835.35

Closing Balance of Cash and Cash Equivalents

0.04

1,682.40

10,769.61

(2,100.86)

528.25

(1,906.40)

8,973.04

2,444.70

1,835.35

4,280.05

261.10

3,617.36

(1,215.19)

2,742.69

(3,378.58)

(1,721.30)

306.08

(1,390.38)

3,225.73

1,835.35

2,146.16

1,079.57

As per our Report of even date

For and on behalf of the Board

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. Siddharth
Partner

A.R. Shah
Partner

Mumbai
April 21, 2008

V.M. Ambani
Company Secretary

Chairman & Managing Director
Executive Director
Executive Director
Executive Director

-
-
-
-

M.D. Ambani
N.R. Meswani
H.R. Meswani
H.S. Kohli
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
S. Venkitaramanan
Prof. Ashok Misra

Prof. Dipak C. Jain } Directors

108

Touching lives. Transforming India.

Schedules forming part of the Balance Sheet

SCHEDULE ‘A’

SHARE CAPITAL

Authorised:

250,00,00,000 Equity Shares of Rs. 10 each

(250,00,00,000)

50,00,00,000 Preference Shares of Rs. 10 each

(50,00,00,000)

Issued, Subscribed and Paid up:

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

2,500.00

500.00

3,000.00

2,500.00

500.00

3,000.00

145,36,48,601 Equity Shares of Rs. 10 each fully paid up

1,453.65

1,393.51

(139,35,08,041)

Less: Calls in arrears - by others

0.26

0.30

TOTAL

1. Of the above Equity Shares:

1,453.39

1,393.21

(a)

(b)

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

Shares out of the issued and subscribed share capital before the buyback of shares were allotted as Bonus
Shares by capitalisation of Securities Premium and Reserves.

52,31,98,799
(52,31,98,799)

Shares out of the issued and subscribed share capital before the buyback of shares were allotted pursuant to
the various schemes of amalgamation without payments being received in cash and includes 10,46,60,154
shares allotted to Petroleum Trust, the sole beneficiary of which is Reliance Industrial Investments and
Holdings Limited, a wholly owned subsidiary of the Company.

(c)

33,04,27,345
(33,04,27,345)

Shares out of the issued and subscribed share capital before the buyback of shares were allotted on
conversion / surrender of Debentures and Bonds, conversion of Term Loans, exercise of warrants against
Global Depository Shares (GDS) and re-issue of forfeited equity shares.

(d)

6,01,40,560
(-)

Shares were issued pursuant to a scheme of amalgamation of erstwhile Indian Petrochemicals Corporation
Limited with the Company without payments being received in cash.

In the year 2004-05, the Company bought back and extinguished 28,69,495 equity shares.

3. The Company has reserved issuance of 6,96,75,402 (Previous Year 6,96,75,402) Equity Shares of Rs. 10 each for offering to eligible
employees of the Company and its subsidiaries under Employees Stock Option Scheme (ESOS). During the year 2007-08, the
Company has granted 10,35,000 Options to the eligible employees which includes 27,000 options at a price of Rs. 1,684/- and
10,08,000 options at a price of Rs. 2,292/- (Previous Year 2,87,28,000 options at a price of Rs. 1,284/-) plus all applicable taxes, as
may be levied in this regard on the Company. The options would vest over a period of 7 years from the date of grant based on specified
criteria.

In terms of the approval of the shareholders of the Company and as per the applicable statutory provisions including Securities and
Exchange Board of India (Disclosure and Investor Protection) Guidelines 2000, the Company, on April 12, 2007, has issued and
allotted 12,00,00,000 warrants on preferential basis to entities in the Promoter Group entitling them to apply for equivalent number
of fully paid up equity shares of Rs. 10/- each of the Company, at a price of Rs. 1,402/- per equity share. The warrant holders have
a right to apply for equity shares within 18 months from the date of allotment of the warrants. Amounts received against the warrants
are shown as Equity Share Warrants in the Balance Sheet, pending exercise thereof.

RELIANCE INDUSTRIES LIMITED 109

Schedules forming part of the Balance Sheet

SCHEDULE ‘B’

RESERVES AND SURPLUS

Revaluation Reserve

As per last Balance Sheet

Less: Transferred to Profit and Loss Account

(Refer Note 4, Schedule ‘O’)

Deduction on Sale / Discarding of Revalued Assets

Capital Reserve

As per last Balance Sheet

Capital Redemption Reserve
As per last Balance Sheet

Securities Premium Account

As per last Balance Sheet

Add: On Amalgamation

Premium on conversion of Optionally Fully
Convertible Debentures

Less: Premium on redemption / buy back of Debentures / Bonds

Less: Calls in arrears - by others

Debentures Redemption Reserve

As per last Balance Sheet

General Reserve*

As per last Balance Sheet

Add: Transferred from Profit and Loss Account

Less: Charge on account of transitional provisions under

Accounting Standard 15

Profit and Loss Account

TOTAL

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

2,651.97

1,780.71

4,650.19

1,997.01

1.21

871.26

291.28

887.94

2,651.97

291.28

887.94

21,331.99

18.19
21,313.80

1.78

34,000.00

16,000.00

50,000.00

15,467.41

5,461.25

403.33

21,331.99

-
21,331.99

1.79

21,312.02

21,330.20

587.02

23,500.00

10,565.17

34,065.17

65.17

50,000.00

4,363.29

78,312.81

34,000.00

2,765.37

62,513.78

* Cumulative amount withdrawn on account of Depreciation on Revaluation is Rs. 2,563.43 crore.

110

Touching lives. Transforming India.

Schedules forming part of the Balance Sheet

SCHEDULE ‘C’

SECURED LOANS

A. DEBENTURES

Non Convertible Debentures

B. TERM LOANS

From Banks

Foreign Currency Loans

Rupee Loans

C. WORKING CAPITAL LOANS

From Banks

Foreign Currency Loans

Rupee Loans

TOTAL

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

4,118.12

5,346.26

20.59

20.00

40.59

1,075.22

1,406.83

856.36

3,325.91

2,482.05

6,600.17

4,182.27

9,569.12

1. Debentures referred to in A above to the extent of:

a) Rs. 2,115.00 crore are secured by way of first 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) Rs. 521.25 crore are secured by way of first 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 assets situated at Hazira, District Surat in the State of Gujarat.

c) Rs. 1,227.05 crore are secured by way of first mortgage / charge on all the properties, both present and future, excluding book

debts, office premises and certain other properties specifically excluded of the Refinery Division of the Company.

d) Rs. 110.34 crore are secured by way of first mortgage / charge on certain properties situated at village Munja Dhanot, District

Kalol in the State of Gujarat and on fixed assets situated at Hoshiarpur Complex of the Company.

e) Rs. 49.43 crore are secured by way of first mortgage / charge on certain properties situated at Ahmedabad in the State of Gujarat

and on fixed assets situated at Nagpur Complex of the Company.

f) Rs. 44.05 crore are secured by way of first mortgage / charge on certain properties situated at Surat in the State of Gujarat and on

fixed assets situated at Allahabad Complex of the Company.

g) Rs. 51.00 crore are secured by way of first mortgage / charge on movable and immovable properties situated at Thane in the State

of Maharashtra and on movable properties situated at Baulpur Complex of the Company.

RELIANCE INDUSTRIES LIMITED 111

Schedules forming part of the Balance Sheet

2. Debentures referred to in A above are redeemable at par, in one or more instalments, on various dates with the earliest redemption
being on 27th May, 2008 and the last being on 24th November, 2018. The debentures are redeemable as follows: Rs. 926.00 crore in
financial year 2008-09, Rs. 742.30 crore in financial year 2009-10, Rs. 175.00 crore in financial year 2010-11, Rs. 250.00 crore in
financial year 2011-12, Rs. 593.70 crore in financial year 2012-13, Rs. 458.26 crore in financial year 2013-14, Rs. 408.82 crore in
financial year 2014-15, Rs. 164.04 crore in financial year 2015-16, Rs. 133.33 crore in financial year 2016-17, Rs. 133.33 crore in
financial year 2017-18 and Rs. 133.34 crore in financial year 2018-19.

3. Working Capital Loans referred to in C above to the extent of :

a) Rs. 2,352.11 crore 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, bills, materials in transit, etc. save and except
receivables of Oil and Gas Division.

b) Rs. 129.94 crore are secured against Government Securities and Treasury Bills.

SCHEDULE ‘D’

UNSECURED LOANS

A. Long Term

i) From Banks

ii) From Others

B. Short Term

i) From Banks

ii) From Others

C. Deferred Sales Tax Liability

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

20,011.14

3,800.30

6,035.50

4.95

9,702.62

4,548.11

23,811.44

14,250.73

3,944.36

36.50

6,040.45

27.62

3,980.86

25.02

TOTAL

29,879.51

18,256.61

112

Touching lives. Transforming India.

Schedules forming part of the Balance Sheet

SCHEDULE ‘E’

FIXED ASSETS

Description

Gross Block

Depreciation

Net Block

As at
01-04-2007

Additions Deductions/
Adjustments

As at
31-03-2008

For the Year

Upto
31-03-2008

As at
31-03-2008

As at
31-03-2007

(Rs. in crore)

OWN ASSETS :
Leasehold Land
Freehold Land
Buildings
Plant & Machinery
Railway Sidings
Electrical Installations
Equipments
Furniture & Fixtures
Vehicles
Ships
Aircrafts & Helicopters
Jetties
Sub-Total

LEASED ASSETS :
Plant & Machinery
Ships
Sub-Total

INTANGIBLE ASSETS :
Technical Knowhow Fees**
Software **

Sub-Total

Total

Previous Year

Capital Workin-Progress

1,631.60
708.83
5,069.94
84,539.07
0.60
2,065.63
1,413.71
352.23
157.48
274.94
117.40
646.97
96,978.40

123.19
9.98
133.17

2,097.59
323.61

2,421.20

16.72
267.68
518.94
3,539.86
-
122.70
142.66
82.77
42.36
-
68.42
-
4,802.11

-
-
-

-
65.33

65.33

-
-
7.54
150.78
-
0.13
0.27
1.00
11.39
-
-
-

1,648.32
976.51
5,581.34
87,928.15
0.60
2,188.20
1,556.10
434.00
188.45
274.94
185.82
646.97
171.11 1,01,609.40

-
-
-

-
-

123.19
9.98
133.17

2,097.59
388.94

2,486.53

37.93
-
234.37
5,730.51
0.09
151.40
132.70
36.27
25.86
8.10
9.32
68.85
6,435.40

32.85
-
32.85

116.18
43.42

159.60

50.25
-
1,429.30
36,773.33
0.19
900.21
606.32
202.02
94.27
209.93
80.47
482.86
40,829.15

1,598.07
976.51
4,152.04
51,154.82
0.41
1,287.99
949.78
231.98
94.18
65.01
105.35
164.11
60,780.25

1,619.29
708.83
3,873.22
53,352.25
0.50
1,316.75
939.98
185.80
81.02
73.11
46.25
232.96
62,429.96

51.74
9.98
61.72

71.45
-
71.45

104.30
-
104.30

1,173.94
280.66

923.65
108.28

1,039.83
86.37

1,454.60

1,031.93

1,126.20

99,532.77

4,867.44

171.11 1,04,229.10

6,627.85*

42,345.47

61,883.63

63,660.46

84,970.13

14,792.96

230.32

99,532.77

6,812.16

35,872.31

63,660.46

23,005.84

7,528.13

NOTES :
a)
b) Buildings include :

Leasehold land includes Rs. 203.19 crore (Previous Year Rs. 207.75 crore) in respect of which lease deeds are pending execution.

Cost of Shares in Co-operative Housing Societies Rs. 0.06 crore (Previous Year Rs. 0.03 crore)

i)
ii) Rs. 93.20 crore (Previous Year Rs. 93.20 crore) incurred towards purchase / acquisition of 1,94,819 Equity Shares of Re. 1 each of

Mature Trading & Investments Privite Limited with a right of occupancy of certain area of a commercial premises.

iii) Rs. 29,125 (Previous Year Rs. 29,125) towards 5 shares of Rs. 200 each of Bombay Gujarat Art Silk Vepari Mahajan Co-operative
Shops & Warehouse Society Limited, 60 shares of Rs. 100 each of New Piece Goods Bazar Co. Limited, 15 shares of Rs. 100 each of
Pandesara Industrial Co-operative Society Limited, 20 shares of Rs. 200 each of The Bombay Market Art Silk Co-operative (Shops
& Warehouses) Society Limited and 225 shares of Rs. 100 each, Rs. 25 paid up of Crimpers Industrial Co-operative Society Limited,
with a right of occupancy of certain area of concerned commercial premises.

iv) Rs. 4.88 crore (Previous Year Rs. 4.88 crore) in respect of which conveyance is pending.

c) Capital Work-in-Progress includes :

Rs. 1,373.74 crore on account of pre-operative expenses (Previous Year Rs. 410.41 crore)

i)
ii) Rs. 1,779.03 crore on account of cost of construction materials at site (Previous Year Rs. 563.07 crore)
iii) Rs. 3,329.85 crore on account of advance against capital expenditure (Previous Year Rs. 1,375.47 crore)

d) Additions / Deletions and Capital Work-in-Progress is net of gain of Rs. 84.12 crore (Previous Year Rs.121.24 crore) 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.

f) Gross Block includes Rs. 22,497.34 crore being the amount added on revaluation of Building, Plant and Machinery, Electrical Installations

and Equipment as at 1st August, 2005, based on report issued by international valuers.

g) Additions for previous year includes Rs. 5,860.61 crore being assets acquired on amalgamation of erstwhile Indian Petrochemicals

Corporation Limited with the Company.
Refer to Note 4, Schedule ‘O’

*
** Other than internally generated

RELIANCE INDUSTRIES LIMITED 113

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’

INVESTMENTS

A . LONG TERM INVESTMENTS
Goverment and other Securities - Unquoted

6 Years National Savings Certificate
(Deposited with Sales Tax Department
and other Govt. Authorities)

Trade Investments
In Equity Shares - Unquoted, fully paid up

1,00,00,000 Petronet India Limited of Rs. 10 each

(1,00,00,000)

11,08,500 Reliance Europe Limited of Sterling

(11,08,500) Pound 1 each

62,63,125 Indian Vaccines Corporation Limited

(62,63,125) of Rs. 10 each

12,04,20,000 Gujarat Chemicals Port Terminal
(12,04,20,000) Company Limited of Rs. 10 each

Other Investments
In Equity Shares - Quoted, fully paid up

68,60,064 Reliance Industrial Infrastructure Limited

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

8,043 Portland General Electric Company

(8,043) Common Stock Equity

In Equity Shares - Unquoted, fully paid up

22,500 Reliance LNG Limited of Rs. 10 each

(22,500)

In Equity Shares of Subsidiary Companies - Quoted, fully paid up
316,69,58,030 Reliance Petroleum Limited of Rs. 10 each

(337,50,00,000)

(Refer Note 1)

In Equity Shares of Subsidiary Companies - Unquoted, fully paid up

14,75,04,400 Reliance Industrial Investments and

(14,75,04,400) Holdings Limited of Rs. 10 each

26,91,150 Reliance Ventures Limited of Rs. 10 each

(24,77,150)

20,20,200 Reliance Strategic Investments Limited

(20,20,200) of Rs. 10 each

10,000 Reliance Netherland B.V. of Euro 1 Each

(10,000)

50,00,001 RIL (Australia) Pty Limited of Aus $ 1 each

(-)

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

0.02

0.01

10.00

3.93

0.61

30.42

44.96

16.30

0.78

17.08

0.02
0.02

6,333.92
6,333.92

147.50

2,351.05

2.02

0.06

17.46

10.00

3.93

0.61

30.42

44.96

16.58

0.78

17.36

0.02
0.02

17.10

17.38

6,750.00
6,750.00

147.50

1,602.05

2.02

0.06

114

Touching lives. Transforming India.

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

42,450 Reliance Industries (Middle East) DMCC of
(5,450) AED 1000 each

10,00,00,000 Reliance Jamnagar Infrastructure Limited

(10,00,00,000) of Rs. 10 each
339,00,00,000 Reliance Retail Limited of Rs. 10 each

(339,00,00,000)

1,76,200 Reliance Exploration & Production DMCC

(1,76,200) of AED 1000 each

2,50,000 Reliance Global Management Services
(10,000) Private Limited of Rs. 10 each

In Equity Shares of Subsidiary Companies - Unqoted, partly paid up

610,00,00,000 Reliance Retail Limited of Rs. 10 each

(610,00,00,000)

(Re. 1 paid up)

46.19

100.00

3,390.00

210.84

0.25

6,265.37

610.00

In Preference Shares of Subsidiary Companies - Unquoted, fully paid up
10,00,000 5% Cumulative Redeemable Non Convertible Preference

10.00

(10,00,000) Shares of Reliance Ventures Limited of Re. 1 each
1,50,60,415

9% Compulsorily Convertible Preference Shares of

(-) Reliance Strategic Investments Limited of Re. 1 each
16% Redeemable Non Cumulative Non Convertible

(2,25,00,000) Preference Shares of Reliance Strategic Investment

4,216.92

Limited of Rs. 100 each

4,99,089 5% Redeemable Cumulative Convertible Preference
(-) Shares of Reliance Exploration & Production

552.65

DMCC of AED 1000 each

In Debentures of Subsidiary Companies - Unquoted, fully paid up

2,79,90,000
(2,79,90,000)

0% Unsecured Convertible Debentures of Reliance
Industrial Investments and Holdings Limited of
Rs. 100 each

4,779.57

279.90

8,83,143 0% Unsecured Optionally Convertible Debentures of

441.58

(8,83,143) Reliance Industrial Investments and Holdings Limited

of Rs. 5000 each

721.48

6.55

100.00

3,390.00

210.84

0.01

5,459.03

610.00

10.00

450.00

460.00

279.90

441.58

721.48

In Others

88 Pass Through Certificates (PTC) issued by Indian

(88) Residential MBS Trust - Series VI

18,710.34

14,000.51

5.33

11.47

Total (A)

18,777.75

14,074.33

RELIANCE INDUSTRIES LIMITED 115

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

B. CURRENT INVESTMENTS
Other Investments

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

In Goverment Securities - Quoted (Refer Note 2)
11.99% GOI 2009
7.99% GOI 2017
8.20% GOI 2022

-
150.45
80.00
230.45

In Treasury Bills - Quoted (Refer Note 2)
364 Days Treasury Bills 0.93

Collateral Borrowing & Lending Obligation

In Certificate of Deposit with Schedule
Banks - Quoted

In Public Financial Institution &
Corporate Bonds - Quoted

450 Bank of India

(-)

600 Citi Financial Consumer Finance India Limited

(-)

1,500 EXIM Bank

(-)

0.93
-

1,547.49

45.06

60.00

148.94

2,000 Housing Development Finance Corporation Limited

200.09

(-)
500
(-)

Indian Railway Finance Corporation Limited

500 LIC Housing Finance Limited

(-)

50.10

50.00

1,850 National Bank For Agricultural And Rural Development

185.20

(-)

3,200 Power Finance Corporation Limited

316.12

(-)

100 Punjab National Bank

(-)

250 State Bank of Mysore

(-)

250 State Bank of Bikaner & Jaipur

(-)

700 State Bank of India

(-)

10.01

24.75

25.00

71.71

1,186.98

27.03
-
-
27.03

18.75

18.75
189.07

189.07

2,965.85

234.85

116

Touching lives. Transforming India.

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

In Units-Unquoted

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

- ABN Amro Fixed Term Plan of Rs. 10 per unit

(20,12,86,344)

- Dividend

- Birla Fixed Term Plan of Rs. 10 per unit - Dividend

(7,50,00,000)
10,76,38,459 Birla Cash Plus - Institutional Premium of

(15,10,14,313) Rs. 10 per unit - Growth

- DSP Merill Lynch Fixed Term Plan of
(5,03,001) Rs. 1000 per unit - Dividend
- HSBC Fixed Term - Institutional Growth of

(5,00,00,000) Rs. 10 per unit

ICICI Prudential Institutional Liquid Plan of

(5,87,48,799) Rs. 10 per unit - Growth

139.00

1,00,00,000 ICICI Prudential Fixed Maturity Plan of

10.00

(1,00,00,000) Rs. 10 per unit - Growth

ICICI Prudential Fixed Maturity Plan of

(15,19,23,500) Rs. 10 per unit - Dividend

ING Vysya Fixed Maturity Fund of

(6,00,00,000) Rs. 10 per unit - Dividend
JM Fixed Maturity Fund

(5,04,76,399) of Rs. 10 per unit - Dividend
- Kotak Fixed Maturity Fund
(7,56,89,000) of Rs. 10 per unit - Dividend

- Kotak Liquid Fund - Institutional -

(1,98,14,143) Premium Fund of Rs. 10 per unit - Growth

- LIC Mutual Fund Fixed Maturity Plan of

(6,09,08,036) Rs. 10 per unit - Dividend

4,96,686 Mirae Asset Liquid Fund Super Institutional Growth

50.00

(-) Option of Rs. 1000 each

- Principal Floating Rate Fund Short Term Maturity

(17,13,28,222) Plan - Institutional Plan of Rs. 10 per unit - Growth

- Principal PNB Fixed Maturity Plan of Rs. 10 per unit

(4,50,00,000)

3,58,56,822 SBI Premier Liquid Fund Super Institutional

46.00

(-) Growth of Rs. 10 each

- SBI Debt Fund of Rs. 10 per unit - Growth

(2,50,00,000)

- SBI Debt Fund of Rs. 10 per unit - Dividend

(8,02,46,850)

- Standard Chartered Fixed Maturity Plan of

(9,62,16,200) Rs. 10 per unit - Dividend

- Sundaram BNP Paribas Fixed Term Plan of

(2,52,43,250) Rs. 10 per unit - Dividend

- Tata Fixed Horizon Fund of Rs. 10 per unit - Dividend

(10,62,98,500)

201.29

75.00

180.00

50.30

50.00

62.41

10.00

151.92

60.00

50.48

75.69

30.00

60.91

200.00

45.00

25.00

80.25

96.21

25.24

106.31

RELIANCE INDUSTRIES LIMITED 117

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

- Tata Fixed Horizon Fund of Rs. 10 per unit - Growth

(2,00,00,000)

6,25,354 Templeton India Treasury Management Account Super

75.00

(-)

Institutional Plan Growth of Rs. 1000 each

- UTI Yearly Fixed Maturity Plan of Rs. 10 per unit - Growth

(1,00,00,000)

- UTI Fixed Maturity Plan of Rs. 10 per unit - Dividend

(25,11,53,627)

- UTI Liquid Cash Plan Institutional -Growth

(2,02,690) Option of Rs. 1000 each

20.00

10.00

251.15

25.00

Total (B)

Total (A+B)

320.00

1,942.16

3,285.85

2,177.01

22,063.60

16,251.34

Notes:
1. Out of 316,69,58,030 Equity Shares of Reliance Petroleum Limited, 67,50,00,000 Equity Shares are locked in upto 31st December, 2011.
2.
3. Provision for diminution in the value of investments is Rs. 13.92 crore. (Previous Year Rs. 93.50 crore) and Investment written off
Rs. NIL (Previous Year Rs.13.00 crore)

Investments have been provided as security for Working Capital loans.

AGGREGATE VALUE OF

Quoted Investments
Unquoted Investments

Investments purchased and sold during the year

Mutual Fund Units
ABN Amro Cash Fund - Institutional Plus - Growth
ABN Amro Flexi Debt Fund - Regular - Growth
AIG India Liquid Fund Super Institutional Growth
Birla Cash Plus - Institutional Premium - Growth
Birla Dynamic Bond Fund - Retail - Growth
Birla Sunlife Liquid Plus Institutional - Growth
CANFMP 3 M SRI (open ended) Growth
DBS Chola Freedom Income STP- Institutional.- Cumulative -Org.
DBS Chola Liquid Institutional Plus Cumulative
DBS Chola Short Term Floating Rate Cumulative
DSP Merrill Lynch Cash Plus - Institutional - Growth
DSP Merrill Lynch Liquid Plus - Institutional - Growth
DSP Merrill Lynch Liquidity Fund - Institutional - Growth
DWS Insta Cash Plus Fund - Institutional Plan - Growth
DWS Insta Cash Plus Fund - Super Institutional- Growth Plan
DWS Money Plus Fund - Growth Option
Grindlays Floating Rate Fund - Long Term - Institutional - Growth

As at
31st March, 2008

As at
31st March, 2007

Book Value Market Value

Book Value

Market Value

9,316.85
12,746.75

53,126.09
-

6,813.14 24,454.46
9,438.20 -

Face Value
(Rs.)

Nos.
(in lakhs)

Cost
(Rs. in crore)

10.00
10.00
1,000.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
1,000.00
1,000.00
1,000.00
10.00
10.00
10.00
10.00

495.87
1,610.27
12.22
87,172.56
2,010.27
1,024.07
300.00
1,322.02
996.40
2,930.36
64.08
9.08
8.96
599.09
3,228.82
649.45
6,584.95

50.00
200.00
125.00
10,749.45
250.06
150.00
30.00
161.05
156.00
336.00
650.00
100.04
100.00
75.00
335.00
75.02
777.63

118

Touching lives. Transforming India.

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

HDFC Cash Management Fund - Saving Plan - Growth
HDFC Cash Management Fund - Saving Plus Plan - Wholesale - Growth
HDFC Liquid Fund - Premium Plus Plan - Growth
HSBC Cash Fund - Institutional Plan - Growth
HSBC Liquid Plus - Institutional Plus - Growth
ICICI Prudential Flexible Income Plan - Growth
ICICI Prudential Floating Rate Plan - Growth
ICICI Prudential Institutional Liquid Plan - Super Institutional Growth
ICICI Prudential Institutional Short Term Plan - Cumulative Option
ING Liquid Fund Super Institutional - Growth Option
ING Liquid Plus Fund - Institutional Growth
JM High Liquidity Fund - Super Institutional Plan - Growth
JM Money Manager Fund Super Plus Plan - Growth
JP Morgan India Liquid Fund - Growth Plan
JP Morgan India Liquid Plus Fund - Growth Plan
Kotak Liquid (Institutional Premium) - Growth
LICMF Liquid Fund - Growth Plan
LICMF Liquid Plus Fund - Growth Plan
Lotus India Liquid Fund - Retail Growth
Lotus India Liquid Fund - Super Institutional Growth
Lotus India Short Term Plan - Institutional Growth
Mirae Asset Liquid Fund - Super Institutional - Growth Option
Principal Cash Management Fund Liquid Option Institutional Premium Plan - Dividend
Principal Cash Management Fund Liquid Option Institutional Premium Plan - Growth
Principal Floating Rate Fund Fixed Maturity Plan Institutional Option - Growth
SBI Magnum Insta Cash Fund - Cash Option
SBI Premier Liquid Fund - Super Institutional - Growth
Standard Chartered Liquidity Manager Plus Growth
Sundaram BNP Paribas Fixed Term Plan - Growth
Tata Floater Fund - Growth
Tata Liquid Super High Inv Fund - Appreciation
Templeton Floating Rate Income Fund Short Term Institutional Option - Growth
Templeton India Short Term Income Plan Institutional - Growth
Templeton India Treasury Management Account Super Institutional Plan - Growth
UTI Liquid Cash Plan Institutional - Growth Option
UTI Liquid plus Fund Institutional Plan - Growth Option
UTI Money Market Fund - Growth Plan
Government Securities
7.38% GOI 2015
7.49% GOI 2017
7.99% GOI 2017
5.87% GOI 2010
5.48% GOI 2009
7.27% GOI 2013
Collateral Borrowing & Lending Obligation

Face Value
(Rs.)
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
1,000.00
10.00
10.00
10.00
10.00
10.00
1,000.00
10.00
10.00
1,000.00
10.00
1,000.00
1,000.00
1,000.00
1,000.00
10.00

100.00
100.00
100.00
100.00
100.00
100.00
-

Nos.
(in lakhs)
2,516.71
1,747.20
10,887.15
9,643.48
1,906.03
2,775.33
407.39
1,33,829.36
320.93
12,602.13
2,689.03
834.56
944.89
1,222.92
491.70
9,675.20
2,435.09
959.91
0.96
4,686.78
1,839.28
19.92
582.92
8,754.25
5,599.66
2,229.94
6,379.17
508.84
500.00
1,638.15
380.67
450.11
6.27
236.94
100.92
9.90
164.40

100.00
1,365.00
975.00
250.00
250.00
205.00
-

Cost
(Rs. in crore)
398.00
300.00
1,713.00
1,175.00
200.03
398.00
45.00
15,109.69
50.00
1,476.53
275.02
100.00
100.02
125.00
50.01
1,509.00
342.00
100.04
0.10
506.00
200.08
200.00
70.00
1,045.00
660.51
397.00
813.00
5,567.92
50.00
191.08
5,479.00
50.00
75.02
2,719.00
1,305.10
100.00
35.00

95.83
1,309.98
996.20
240.40
241.66
200.60
887.71

Schedules forming part of the Balance Sheet

RELIANCE INDUSTRIES LIMITED 119

SCHEDULE ‘G’

CURRENT ASSETS

INVENTORIES
Stores, Chemicals and Packing Materials
Raw Materials
Stock-in-Process
Finished Goods / Traded Goods

SUNDRY DEBTORS (Unsecured and Considered Good)
Over six months
Others

CASH AND BANK BALANCES

Cash on hand

Balance with Banks

In Current Accounts :

With Scheduled Banks

With Others*

In Fixed Deposit Accounts :

With Scheduled Banks

OTHER CURRENT ASSETS

Interest Accrued on Investments

Premium Accrued on Investments in Preference Shares $

TOTAL

* Includes balances with non-scheduled banks as follows:

Bank of China
Citi, China - Guangzhou
ABN Amro Bank, Shanghai
ABN Amro Bank, Jakarta
ABN Amro Bank, Jebel Ali
Hongkong & Shanghai Banking Corporation, Turkey
Hongkong & Shanghai Banking Corporation, Vietnam
Hongkong & Shanghai Banking Corporation, New York
Stadtsparkasse Koln, Frankfurt

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

1,072.38
8,393.70
1,523.96
3,257.50

13.06
6,214.52

1,023.02
4,464.87
1,888.74
4,759.88

14,247.54

12,136.51

13.02
3,719.40

6,227.58

3,732.42

11.51

1.80

204.62

1.66

305.29

1.26

4,062.26

1,527.00

4,280.05

1,835.35

72.32

0.22

2.90

0.17

72.54

24,827.71

3.07

17,707.35

As at 31st

As at 31st
March, 2008 March, 2007

(Rs. in crore)
Maximum Balance at
any time during the year

0.02
0.05
0.16
0.05
0.08
0.10
0.03
1.05
0.12

0.03
0.02
0.25
0.04
0.08
0.07
0.04
0.65
0.08

2007-08
0.14
0.15
1.03
0.12
0.55
0.31
0.14
4.31
0.77

2006-07
0.15
0.22
1.12
0.13
0.69
0.28
0.22
1.86
0.22

Premium accrued on Investments in Preference Shares represents Rs. 0.22 crore (Previous Year Rs. 0.17 crore) receivable on
investments in Preference Shares of Reliance Ventures Limited, a wholly owned subsidiary of the Company.

120

Touching lives. Transforming India.

Schedules forming part of the Balance Sheet

SCHEDULE ‘H’

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

LOANS AND ADVANCES

UNSECURED - (Considered Good Unless Otherwise Stated)

Loans to subsidiary companies

Advance Income Tax (net of Provision)

Advances recoverable in cash or in kind or for
value to be received

Less: Considered Doubtful

6,456.35

69.88

Deposits

Balance with Customs, Central Excise Authorities, etc.

TOTAL

1,234.39

69.88

6,038.45

375.28

6,386.47

3,981.63

1,276.30

18,058.13

6,181.44

313.43

1,164.51

3,751.74

794.88

12,206.00

Schedules forming part of the Balance Sheet

SCHEDULE ‘I’

CURRENT LIABILITIES AND PROVISIONS

CURRENT LIABILITIES

Sundry Creditors

- Micro, Small and Medium Enterprises @

- Others *

Liability for Leased Assets

Unpaid Dividend #

Unpaid Matured debentures #

Interest accrued on above #

Interest accrued but not due on Loans

PROVISIONS

Provision for Wealth Tax

Provision for Leave encashment / Superannuation / Gratuity

Other Provisions

Proposed Dividend

Tax on Dividend

TOTAL

RELIANCE INDUSTRIES LIMITED 121

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

20,590.45

5.33

70.32

2.19

0.19

376.99

24.25

620.81

439.09

1,631.24

277.23

16,467.24

11.42

69.52

2.54

0.24

314.57

21,045.47

16,865.53

16.25

493.10

1,203.52

2,992.62

24,038.09

1,712.87

18,578.40

The company had recognised liability based on substantial degree of estimation for excise duty payable on clearance of goods lying in stock
as on 31st March, 2007 of Rs. 297.20 crore as per the estimated pattern of despatches. During the year Rs. 281.49 crore was utilized for
clearance of goods and unused balance of Rs. 15.71 crore was reversed. Provision recognised under this class for the year is Rs. 176.47 crore
which is outstanding as on 31st March, 2008. Actual outflow is expected in the next financial year. The Company had recognised customs
duty liability on goods imported under advance license of Rs. 523.34 crore as at 31st March, 2007. During the year further provision of
Rs. 64.79 crore was made and sum of Rs. 329.40 crore were reversed on fulfilment of export obligation. Closing balance on this account as
at 31st March, 2008 is Rs. 258.73 crore. Other class of provisions where recognition is based on substantial degree of estimation relate to
disputed customer / supplier / third party claims, rebates or demands against the Company. Any additional information in this regard can
be expected to prejudice seriously the position of the Company.
@ The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this
Act have not been given.

Includes Rs. 30.35 crore (Previous Year Rs. 4.54 crore) payable to Subsidiaries

Includes for capital expenditure Rs. 2,254.48 crore (Previous Year Rs. 1,757.42 crore)

These figures do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund except Rs.
6.11 crore (Previous Year Rs. 4.93 crore) which is held in abeyance due to legal cases pending.

122

Touching lives. Transforming India.

Schedules forming part of the Profit and Loss Account

SCHEDULE ‘J’

OTHER INCOME
Dividend:

From Current Investments
From Long Term Investments

Interest:

From Current Investments
From Long Term Investments
From Others
[Tax Deducted at Source Rs. 150.09 Crore
(Previous Year Rs. 44.79 Crore.)]

Premium on Investments in Preference Shares
Profit on Sale of Current Investments (net)
Profit on Sale of Fixed Assets
Miscellaneous Income
Exceptional Items*

2007-08

2006-07

(Rs. in crore)

18.36
0.01

70.47
-
591.88

58.77
49.04

18.37

107.81

50.85
1.16
225.06

662.35

277.07

0.05
118.87
4.25
91.40
4,733.50

0.05
3.93
17.35
72.07
-

TOTAL

5,628.79

478.28

*Represents gains primarily arising out of transactions concerning Reliance Petroleum Limited Shares (Long Term Investments).

SCHEDULE ‘K’

VARIATION IN STOCKS

STOCK-IN-TRADE (at close)

Finished Goods / Traded Goods

Stock-in-Process

STOCK-IN-TRADE (at commencement)

Finished Goods / Traded Goods

Stock-in-Process

Add : On Amalgamation

Finished Goods / Traded Goods

Stock-in-Process

TOTAL

2007-08

2006-07

(Rs. in crore)

3,257.50

1,523.96

4,759.88

1,888.74

6,648.62

4,759.88

1,888.74

4,781.46

6,648.62

3,376.66

1,739.60

5,116.26

837.36

40.40

877.76

6,648.62

(1,867.16)

5,994.02

654.60

RELIANCE INDUSTRIES LIMITED 123

Schedules forming part of the Profit and Loss Account

SCHEDULE ‘L’

MANUFACTURING AND OTHER EXPENSES
RAW MATERIAL CONSUMED
MANUFACTURING EXPENSES

2007-08

2006-07

(Rs. in crore)

90,303.85

76,871.66

Stores, Chemicals and Packing Materials
Electric Power, Fuel and Water
Machinery Repairs
Building Repairs
Labour, Processing, Production Royalty and Machinery Hire Charges
Excise Duty #
Lease Rent
Exchange Differences (Net)

2,520.58
2,052.84
479.32
50.12
235.87
(362.78)
85.54
(986.83)

2,098.71
2,261.69
432.05
60.94
680.12
(6.31)
110.01
217.85

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 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 / Service Tax

ESTABLISHMENT EXPENSES

Insurance
Rent
Rates & Taxes
Other Repairs
Travelling Expenses
Payment to Auditors
Professional Fees
Loss on Sale / Discarding of Fixed Assets
General Expenses *
Wealth Tax
Charity and Donations

4,074.66

5,855.06

1,652.49
273.50

1,734.46
156.21

193.34

203.42

2,119.33

2,094.09

72.34
409.37
2,229.22
518.66

291.45
216.41
502.96
216.12
169.46
9.38
644.26
6.04
531.32
8.00
114.91

67.97
421.03
2,073.76
1,098.69

3,229.59

3,661.45

273.74
210.10
195.21
215.05
130.87
8.95
537.84
23.54
478.53
8.28
26.65

Less : Preoperative Expenses of Projects Under Commissioning (Net)
TOTAL

2,710.31
1,02,437.74
175.46
1,02,262.28

2,108.76
90,591.02
111.21
90,479.81

Excise Duty shown under expenditure represents the aggregate of excise duty borne by the Company and difference between
excise duty on opening and closing stock of finished goods.
Includes Diminution in the value of investments of Rs. 13.92 crore (Previous Year Rs. 93.50 crore) and investment written off Rs.
NIL (Previous Year Rs. 13.00 crore).

SCHEDULE ‘M’

INTEREST AND FINANCE CHARGES
Debentures
Fixed Loans
Finance Charges on Leased Assets
Others
TOTAL

2007-08
319.10
374.24
0.63
383.39
1,077.36

(Rs. in crore)

2006-07
528.70
311.11
1.17
347.91
1,188.89

124

Touching lives. Transforming India.

Significant Accounting Policies

SCHEDULE ‘N’

SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention, except for certain fixed assets which are revalued, in
accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

B. Use of Estimates

The preparation 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 results 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 cenvat / value added tax and includes amounts added on revaluation, less accumulated depreciation
and impairment loss, if any. 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.

(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 capitalized.

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 lease assets is accounted by applying the
interest rate implicit in the lease to the net investment.

Intangible Assets

Intangible Assets are stated at cost of acquisition less accumulated amortisation. Technical know how is amortised over the useful life
of the underlying assets. Computer Software is amortised over a period of 5 years. Amortisation is done on written down value basis
except in respect of crude oil refining where it is amortised on straight-line basis.

F. Depreciation

Depreciation on fixed assets is provided on written down value method (WDV) at the rates and in the manner prescribed in Schedule
XIV to the Companies Act, 1956 over their useful life except, on fixed assets pertaining to crude oil refining and marketing infrastructure
for petroleum products where depreciation is charged on Straight Line method (SLM) over their useful life; on fixed bed catalyst with
a life of 2 years or more depreciation is provided over its useful life; on fixed bed catalysts having life of less than 2 years 100%
depreciation is provided in the year of addition; 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 and insurance spares,
depreciation is provided as aforesaid over the residual life of the respective plants; on development rights and producing properties
depreciation is provided in proportion of oil and gas production achieved vis-a-vis the proved reserves (net of reserves to be retained
to cover abandonment costs as per the production sharing contract and the Government of India’s share in the reserves) considering
the estimated future expenditure on developing the reserves as per technical evaluation; premium on leasehold land is amortised over
the period of lease; cost of jetty is 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 amounts added on revaluation depreciation is
charged as aforesaid over the residual life of the assets as certified by the valuers; on assets acquired under finance lease from 1st April,
2001 depreciation is spread over the lease term.

RELIANCE INDUSTRIES LIMITED 125

SCHEDULE ‘N’ (Contd.)

Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the
profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting
period is reversed if there has been a change in the estimate of recoverable amount.

H. Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction.

(b) Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are
covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognized
as exchange difference and the premium paid on forward contracts is recognized over the life of the contract.

(d)

In respect of branches, which are integral foreign operations, all transactions are translated at rates prevailing on the date of
transaction or that approximates the actual rate on the date of transaction. Branch monetary assets and liabilities are restated at
the year end rates.

(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.

Investments

Current investments are carried at the lower of cost or 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.

Inventories

Items of inventories are measured at lower of cost or net realisable value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and other costs 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 are 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.

K. Turnover

Turnover includes sale of goods, services, sales tax, service tax, excise duty and sales during trial run period, adjusted for discounts
(net), Value Added Tax (VAT) and gain / loss on corresponding hedge contracts.

L. Excise Duty and Sales Tax

Excise duty is 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 paid is charged to profit and loss account.

M. Employee Benefits

(i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year

in which the related service is rendered.

(ii) Post employment and other long term employee benefits are recognized as an expense in the profit and loss account for the year
in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined
using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are
charged to the profit and loss account.

(iii) In respect of employees stock options, the excess of fair price on the date of grant over the exercise price is recognized as deferred

compensation cost amortised over vesting period.

N. Employee Separation Costs

Compensation to employees who have opted for retirement under the voluntary retirement scheme of the Company is charged to the
profit and loss account in the year of exercise of option.

126

Touching lives. Transforming India.

SCHEDULE ‘N’ (Contd.)

O. 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 takes necessarily substantial period of time to get ready for its intended use. All other borrowing
costs are charged to revenue.

P. Financial Derivatives and Commodity Hedging Transactions

In respect of derivative contracts, premium paid, gains / losses on settlement and provision for losses for cash flow hedges are
recognised in the Profit and Loss Account, except in case where they relate to borrowing costs that are attributable to the acquisition
or construction of fixed assets, in which case, they are adjusted to the carrying cost of such assets.

Q. Accounting for Oil and Gas Activity

The Company has adopted Full Cost Method of accounting for its Oil and Gas activity and all costs incurred in acquisition,
exploration and development are accumulated considering the country as a cost centre. Oil and Gas Joint Ventures are in the nature of
Jointly Controlled Assets. Accordingly 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.

R. 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 taxable and accounting income is accounted for using the tax rates and laws
that are 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 virtual certainty that the asset will be realised in future.

S . Premium on Redemption of Bonds / Debentures

Premium on redemption of Bonds / Debentures, net of tax impact, are adjusted against the Securities Premium Account.

T. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of
past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in
the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

Notes on Accounts

SCHEDULE ‘O’

1. The previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other
disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation
to the amounts and other disclosures relating to the current year.

2. As per Accounting Standard 15 “Employee Benefits”, the disclosures of Employee benefits as defined in the Accounting Standard

are given below:

Defined Contribution Plan

(Rs. in crore)

Contribution to Defined Contribution Plan, recognised as expense for the year are as under:

Employer’s Contribution to Provident Fund

Employer’s Contribution to Superannuation Fund

Employer’s Contribution to Pension Scheme

2007-08

2006-07

44.61

10.00

14.60

42.59

9.98

16.33

The Company’s Provident Fund is exempted under section 17 of Employees’ Provident Fund Act, 1952. Conditions for grant of
exemptions stipulates that the employer shall make good deficiency, if any, in the interest rate declared by the trust vis-a-vis
statutory rate.

RELIANCE INDUSTRIES LIMITED 127

SCHEDULE ‘O’ (Contd.)

Defined Benefit Plan

The employees’ gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined
based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to
additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for
leave encashment is recognized in the same manner as gratuity.

I. Reconciliation of opening and closing balances of Defined Benefit obligation

Defined Benefit obligation at beginning of the year

On Amalgamation

Current Service Cost

Interest Cost

Actuarial (gain) / loss

Benefits paid

Settlement cost

Defined Benefit obligation at year end

Gratuity
(Funded)

2007-08

261.27

20.78

18.34

55.12

(64.05)

291.46

2006-07

99.15

126.83

23.00

17.17

11.76

(11.86)

(4.78)

261.27

(Rs. in crore)

Leave Encashment
(Unfunded)

2007-08

441.99

22.80

33.47

67.40

2006-07

288.47

120.59

35.66

30.24

29.02

(47.19)

(61.99)

518.47

441.99

II. Reconciliation of opening and closing balances of fair value of plan assets

(Rs. in crore)

Gratuity (Funded)

Fair value of plan assets at beginning of the year

On Amalgamation

Expected return on plan assets

Actuarial gain / (loss)

Employer contribution

Benefits paid

Settlement cost

Fair value of plan assets at year end

Actual return on plan assets

III. Reconciliation of fair value of assets and obligations

Fair value of plan assets

Present value of obligation

Amount recognised in Balance Sheet

2007-08

210.40

15.37

0.87

27.45

(64.05)

190.04

16.24

2006-07

98.64

67.09

13.20

1.61

46.50

(11.86)

(4.78)

210.40

14.81

Gratuity
(Funded)
As at 31st March

2008

190.04

291.46

101.42

2007

210.40

261.27

50.87

(Rs. in crore)

Leave Encashment
(Unfunded)
As at 31st March

2008

518.47

2007

441.99

128

Touching lives. Transforming India.

SCHEDULE ‘O’ (Contd.)

IV. Expense recognised during the year (Under the head “Payments to and

Provisions for Employees”-Refer Schedule ‘L’)

Current Service Cost

Interest Cost

Expected return on plan assets.

Actuarial (gain) / loss

Net Cost

Investment Details:

GOI Securities

Public Securities

Special Deposit Schemes

State Govt. Securities

Gratuity
(Funded)

(Rs. in crore)

Leave Encashment
(Unfunded)

2007-08

2006-07

2007-08

2006-07

20.78

18.34

23.00

17.17

(15.37)

(13.20)

54.25

78.00

10.15

37.12

22.80

33.47

67.40

123.67

35.66

30.24

29.02

94.92

% Invested

As at 31st

March, 2008 March, 2007

19.02

19.72

11.14

1.12

48.76

0.24

100.00

15.40

17.48

5.00

9.99

0.20

51.82

0.11

100.00

Private Sector Securities [includes equity shares of Reliance Industries Limited
Rs. 0.15 crore (Previous Year Rs. 0.15 crore)]

Insurance Policies

Others (including bank balances)

VI. Actuarial assumptions

Mortality Table (LIC)

Discount rate (per annum)

Expected rate of return on plan assets (per annum)

Rate of escalation in salary (per annum)

Gratuity
(Funded)

Leave Encashment
(Unfunded)

2007-08

2006-07

2007-08

2006-07

1994-96
(Ultimate)

6.5%

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and
other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets
held, assessed risks, historical results of return on plan assets and the Company’s policy for plan assets management.

RELIANCE INDUSTRIES LIMITED 129

SCHEDULE ‘O’ (Contd.)

3. Turnover includes Income from Services of Rs. 67.58 crore (Previous Year Rs. 58.50 crore).

4. The Gross Block of Fixed Assets includes Rs. 25,221.35 crore (Previous Year Rs. 25,221.35 crore) 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. 1,780.71 crore
(Previous Year Rs. 1,997.01 crore) and an equivalent amount, has been withdrawn from Revaluation Reserve and credited to the Profit
and Loss Account.

5. The Company has continued to adjust the foreign currency exchange differences on amounts borrowed for acquisition of fixed assets,
to the carrying cost of fixed assets in compliance with Schedule VI to the Companies Act, 1956 as per legal advice received, which is
at variance to the treatment prescribed in Accounting Standard (AS 11) on “Effects of Changes in Foreign Exchange Rates” notified in
the Companies (Accounting Standards) Rules 2006. Had the treatment as per AS 11 been followed, the net profit after tax for the year
would have been higher by Rs. 29.65 crore.

Payment to Auditors:

(i) Audit Fees

(ii) Tax Audit Fees

(iii) For Certification and Consultation in finance and tax matters

(iv) Expenses Reimbursed

(v) Cost Audit Fees

7. Managerial Remuneration:

(a) Remuneration to Managing Director / Executive Directors

(i) Salaries

(ii) Perquisites and Allowances

(iii) Sitting Fees (paid by erstwhile IPCL)

(iv) Commission

(v) Leave salary / Encashment

(vi) Contribution to Provident fund and Superannuation fund

(vii) Provision for Gratuity

(b) Commission to Non-Executive Directors

(included under the head “ Payments to and Provisions for Employees”)
Computation of net profit in accordance with Section 349 of the Companies Act, 1956:

Profit before Taxation

Add: Depreciation as per accounts

Loss on sale / discarding of Fixed Assets

Investment Written off / provided for

Managerial Remuneration

(Rs. in crore)

2007-08

2006-07

5.10

0.50

3.55

0.03

9.18

0.20

5.53

0.54

2.66

0.04

8.77

0.18

(Rs. in crore)

2007-08

2006-07

1.32

1.63

64.13

0.04

0.33

0.08

67.53

1.85

1.30

1.53

0.04

43.59

0.28

0.32

0.08

47.14

1.00

2007-08

23,010.14

4,847.14

6.04

13.92

66.16

(Rs. in crore)

2006-07

14,520.47

4,815.15

23.54

106.50

45.65

27,943.40

19,511.31

130

Touching lives. Transforming India.

SCHEDULE ‘O’ (Contd.)

Less: Depreciation as per Section 350 of Companies Act, 1956

Premium on Investment in Preference Shares

Profit 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 to Managing Director / Executive Directors
calculated @ 0.402 % of the net profit. (Previous Year @ 0.402%)

Less: Salaries & Perquisites of the Managing Director / Executive Directors eligible
for commission

Commission payable

Commission restricted to

(Rs. in crore)

2007-08

6,627.85

2006-07

6,812.16

0.05

1.84

4.25

4,852.37

16,457.04

66.16

2.03

64.13

0.05

17.35

3.93

12,677.82

50.96

2.06

48.90

43.59

(c) General Expenses includes Rs. 0.23 crore (Previous Year Rs. 0.42 crore including Rs. 0.15 crore paid by erstwhile IPCL)

towards sitting fees paid to non-executive directors.

8. A sum of Rs. 2.02 crore (net debit) [Previous Year Rs. 1.92 crore (net credit)] is included under Establishment expenses representing

Net Prior Period Items.

9. Expenditure on account of premium on forward exchange contracts to be recognised in the profit and loss account of subsequent

accounting period aggregates to Rs. 0.47 crore (Previous Year Rs. 95.28 crore)

10. (a) Fixed assets taken on finance lease prior to 1st April, 2001, amount to Rs. 527.52 crore (Previous Year Rs. 527.52 crore). Future
obligations towards lease rentals under the lease agreements as on 31st March, 2008 amount to Rs. 6.04 crore (Previous Year Rs.
73.30 crore).

Within one year

Later than one year and not later than five years

Later than five years

Total

2007-08

0.58

2.34

3.12

6.04

(Rs. in crore)

2006-07

63.61

6.92

2.77

73.30

(b)

In respect of Fixed Assets acquired on finance lease on or after 1st April, 2001, the minimum lease rentals outstanding as on 31st
March, 2008 are as follows:

Total Minimum
Lease Payments
outstanding
As at 31st March

Future interest
on Outstanding
Lease Payments

2008

3.39

2.24

0.18

5.81

2007

5.02

6.20

1.46

12.68

2007-08

2006-07

0.28

0.14

0.06

0.48

0.66

0.49

0.11

1.26

(Rs. in crore)

Present value of
Minimum
Lease Payments
As at 31st March

2008

3.11

2.10

0.12

5.33

2007

4.36

5.71

1.35

11.42

Within one year

Later than one year and not later than five years

Later than five years

Total

RELIANCE INDUSTRIES LIMITED 131

SCHEDULE ‘O’ (Contd.)

(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.

(d) The Company has taken aircrafts on non-cancellable operating lease and lease rent amounting to Rs. 27.17 crore (Previous Year

Rs. 19.10 crore) has been charged to profit and loss account. The future minimum lease payments are as under:

Not later than one year

Later than one year and not later than five years

Later than five years

Total

11.

(a)

(i) Assets given on finance lease on or after 1st April, 2001

Particulars

Total

2007-08

27.32

89.10

26.63

143.05

(Rs. in crore)

2006-07

29.60

106.71

43.90

180.21

Not later than
one year

Later than one
year and not later
than five years

(Rs. in crore)

Later than
five years

2007-08

2006-07

2007-08 2006-07 2007-08 2006-07 2007-08 2006-07

Gross Investment

106.04

23.76

82.28

Less: Unearned Finance Income

20.56

7.57

12.99

Present Value of Minimum Lease Rental

85.48

16.19

69.29

(ii) General Description of Lease terms:

(cid:127) Lease rentals are charged on the basis of agreed rate of interest.

(cid:127) Assets are given on lease for a period of five years.

(b) Miscellaneous income includes income from finance lease of Rs. 4.63 crore (Previous Year Rs. Nil).

12. The deferred tax liability comprise of the following:

a. Deferred Tax Liability

Related to fixed assets

b. Deferred Tax Assets

Disallowance under the Income Tax Act, 1961

(Rs. in crore)

As at
31st March, 2008

As at
31st March, 2007

8,183.07

7,279.66

310.53
7,872.54

297.64
6,982.02

132

Touching lives. Transforming India.

SCHEDULE ‘O’ (Contd.)

13. EARNINGS PER SHARE (EPS)

i) Net Profit after tax as per profit and loss account (Rs. in crore)

ii) Excess / (short) provision for tax of earlier years (Rs. in crore)

iii) Net Profit attributable to Equity Shareholders (Rs. in crore)

iv) Net Profit before Exceptional Item (Rs. in crore)

2007-08

19,458.29

48.10

19,506.39

15,261.10

2006-07

11,943.40

0.51

11,943.91

11,943.40

v) Weighted Average number of equity shares used as

145,36,48,601

denominator for calculating EPS

vi) Basic and Diluted Earnings per share (Rs.):

vii) Basic and Diluted Earnings (before exceptional item) per share (Rs.):

viii) Basic and Diluted Earnings (Considering Taxation for Previous Years)

per share (Rs.):

ix) Face Value per equity share (Rs.):

133.86

104.98

134.19

10.00

82.16

82.17

10.00

14. PROJECT DEVELOPMENT EXPENDITURE

(in respect of Projects upto 31st March, 2008, included under Capital Work-in-Progress)

Opening Balance

Add: Project Development Expenditure transferred

from profit and loss account

Interest Capitalised

Less: Project Development Expenses Capitalised during the year

Closing Balance

(Rs. in crore)

2007-08

2006-07

410.41

486.91

175.46

884.96

111.21

534.93

1,060.42

1,470.83

97.09

1,373.74

646.14

1,133.05

722.64

410.41

RELIANCE INDUSTRIES LIMITED 133

SCHEDULE ‘O’ (Contd.)

15. As per Accounting Standard 18, the disclosures of transactions with the related parties as defined in the Accounting

Standard are given below:

(i) List of related parties where control exists and 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
27
28
29
30
31
32
33
34
35
36
37
38

Reliance Industrial Investments and Holdings Limited
Reliance Ventures Limited
Reliance Strategic Investments Limited
Reliance Industries (Middle East) DMCC
Reliance Petroleum Limited
Reliance Jamnagar Infrastructure Limited.
Reliance Retail Limited
Reliance Netherland B.V. (including Trevira GmbH)
Reliance Haryana SEZ Limited
Reliance Fresh Limited (Formerly Ranger Farms Limited)
Retail Concepts & Services (India) Limited
Reliance Retail Insurance Broking Limited
Reliance Dairy Foods Limited
Reliance Exploration & Production DMCC
Reliance Retail Finance Limited
RESQ Limited
Reliance Global Management Services Private Limited
Reliance Commercial Associates Limited (From 20th April, 2007)
Reliance Digital Retail Limited (From 28th April, 2007)
Reliance Financial Distribution and Advisory Services Limited (From 14th May, 2007)
RIL (Australia) Pty Limited (From 7th June, 2007)
Reliance Hypermart Limited (From 2nd July, 2007)
Recron (Malaysia) Sdn Bhd (From 20th July, 2007)
Gapco Kenya Limited (From 1st August, 2007)
Gapco Rwanda SARL (From 1st August, 2007)
Gapco Tanzania Limited (From 1st August, 2007)
Gapco Uganda Limited (From 1st August, 2007)
Gapoil Tanzania Limited (From 1st August, 2007)
Gapoil Zanzibar Limited (From 1st August, 2007)
Gulf Africa Petroleum Corporation (Mauritius) (From 1st August, 2007)
Transenergy Kenya Limited (From 1st August, 2007)
Reliance Retail Travel & Forex Services Limited (From 7th September, 2007)
Reliance Brands Limited (From 12th October, 2007)
Reliance Footprint Limited (From 12th October, 2007)
Reliance Trends Limited (From 12th October, 2007)
Reliance Wellness Limited (From 12th October, 2007)
Reliance Lifestyle Holdings Limited (From 23rd November, 2007)
Reliance Universal Ventures Limited (From 23rd November, 2007)

Subsidiary Companies
(Control exists)

134

Touching lives. Transforming India.

SCHEDULE ‘O’ (Contd.)

Sr. No.

Name of the Related Party

Relationship

Delight Proteins Limited (From 27th November, 2007)
Reliance Autozone Limited (From 27th November, 2007)
Reliance F & B Services Limited (From 27th November, 2007)
Reliance Gems and Jewels Limited (From 27th November, 2007)
Reliance Integrated Agri Solutions Limited (From 27th November, 2007)
Strategic Manpower Solutions Limited (From 27th November, 2007)
Reliance Agri Products Distribution Limited (From 28th November, 2007)
Reliance Digital Media Limited (From 28th November, 2007)
Reliance Food Processing Solutions Limited (From 28th November, 2007)
Reliance Home Store Limited (From 28th November, 2007)
Reliance Leisures Limited (From 28th November, 2007)
Reliance Loyalty & Analytics Limited (From 28th November, 2007)
Reliance Retail Securities and Broking Company Limited (From 28th November, 2007)
Reliance Supply Chain Solutions Limited (From 28th November, 2007)
Reliance Trade Services Centre Limited (From 28th November, 2007)
Advantage Retail Private Limited (From 27th December, 2007)
Reliance International Exploration and Production, INC (From 15th January, 2008)
Peninsula Land Kenya Limited (From 15th March, 2008)
Abcus Retail Private Limited (From 17th March, 2008)
Bigdeal Retail Private Limited (From 17th March, 2008)
Reliance Neutraceuticals Private Limited (From 27th March, 2008)*
Reliance Petroinvestments Limited (From 27th March, 2008)*
Reliance Pharmaceuticals (India) Private Limited (From 27th March, 2008)*
Wavely Investments Limited (From 31st March, 2008)
Reliance Industrial Infrastructure Limited
Reliance Europe Limited
Reliance Utilities and Power Limited
Reliance Ports and Terminals Limited
Reliance LNG Limited
Reliance Gas Transportation Infrastructure Limited
Gujarat Chemical Port Terminal Company Limited
Indian Vaccines Corporation Limited
Reliance Utilities Limited
Shri Mukesh D. Ambani
Shri Nikhil R. Meswani
Shri Hital R. Meswani
Shri H.S. Kohli
Dhirubhai Ambani Foundation
Jamnaben Hirachand Ambani Foundation
Hirachand Govardhandas Ambani Public Charitable Trust
HNH Trust and HNH Research Society
Jamnaben Hirachand Ambani Education Trust

39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
*Earlier an associate company, became a subsidiary during the year.

Subsidiary Companies
(Control exists)

Associates

Key Managerial Personnel

Enterprises over which
Key Managerial
Personnel are able to
exercise significant
influence

RELIANCE INDUSTRIES LIMITED 135

SCHEDULE ‘O’ (Contd.)

(ii) Transactions during the year with related parties

Sr. Nature of Transactions
No. (Excluding reimbursements)

A) Fixed Assets / Capital Work in Progress

Subsidiaries

Associates Key Managerial

Others

Total

Personnel

(Rs. in crore)

Assets Purchased during the year

146.87

71.58 -

218.45

(15.46)

(34.76) -

(50.22)

Sales of Fixed Asset

0.42

(296.57)

(0.02) -

(296.59)

Investments

Balance as at 1st April, 2007

14,000.51

51.56 -

14,052.07

Upon Amalgamation

(3,804.73)

(20.53) -

(3,825.26)

- -

(125.08) -

- (125.08)

Purchased / adjusted during the year

5,575.90

- -

5,575.90

(11,545.78)

Sold / redemption during the year

450.00

- -

- 450.00

(0.55) -

(0.55)

Diminution in the value of Investment

- -

(93.50) -

- (93.50)

Balance as at 31st March, 2008

18,710.34

51.28 -

18,761.62

(14,000.51)

(51.56) -

(14,052.07)

C) Premium Accrued on Investment

in Preference Shares

0.22
(0.17)

-
-

D) Sundry Debtors as at 31st March, 2008

917.14

15.26

-
-

- 0.22
- (0.17)

- 932.40

(21.31)

(16.58)

- (37.89)

E) Loans & Advances

Balance as at 1st April, 2007

Upon Amalgamation

Given during the year

Returned during the year

Balance as at 31st March, 2008

F) Sundry Creditors

6,313.34
(4,534.95)
-
(1,025.95)
9,230.84
(12,603.47)
9,233.17
(11,851.03)
6,311.01
(6,313.34)

3,136.91
(1,135.00)
-
(1.91)
24.05
(2,000.00)
0.95
-
3,160.01
(3,136.91)

Balance as at 31st March, 2008

30.35

149.80

(4.54)

(156.37)

-
-
-
-
-
-
-
-
-
-

9,450.25
(5,669.95)
-
(1,027.86)
9,254.89
(14,603.47)
9,234.12
(11,851.03)
9,471.02
(9,450.25)

180.15

(160.91)

136

Touching lives. Transforming India.

SCHEDULE ‘O’ (Contd.)

Sr. Nature of Transactions
No. (Excluding reimbursements)

G) Turnover

H) Other Income

I) Purchases

J) Expenditure

Subsidiaries

Associates Key Managerial

Others

Total

Personnel

(Rs. in crore)

1,212.44

30.10

(457.58)

(197.91)

287.20

12.59

(177.55)

(16.06)

501.92

(3.62)

1,242.54

(655.49)

299.79

(193.61)

501.92

(3.62)

318.81

(318.37)

84.00

(84.00)

14.92

(16.93)

8.88

(8.86)

83.48

(161.81)

82.21 82.21

(13.19)

958.52

(871.89)

93.36

(91.46)

260.38

(141.63)

11.11

(11.04)

Electric Power, Fuel and Water

318.81

Rent

Professional Fees

Charter Hire Charges

Hire Charges

Donations

(318.37)

84.00

(84.00)

14.92

(16.93)

8.88

(8.86)

83.48

(161.81)

Warehousing and Distribution Charges

958.52

Product Handling charges

Manpower Services

General expenses

(871.89)

93.36

(91.46)

260.38

(141.63)

1.00

10.11

(1.03)

(10.01)

Payment to Key Managerial Personnel

67.53

(47.14)

K) Guarantees Issued

Financial Guarantees

Performance Guarantees

7,448.56

360.02

(9,494.09)

(130.94)

137.74

137.68

(71.47)

(21.07)

7,808.58

(9,625.03)

275.42

(92.54)

Note : Figures in bracket represents previous year’s amount.

RELIANCE INDUSTRIES LIMITED 137

SCHEDULE ‘O’ (Contd.)

Disclosure in Respect of Material Related Party Transactions during the year:

Fixed Asset purchased include from Reliance Jamnagar Infrastructure Limited Rs. 138.28 crore (Previous Year Rs. NIL); Reliance
Europe Limited Rs. 1.39 crore (Previous Year Rs. 11.13 crore); Reliance Ports and Terminals Limited Rs. 70.19 crore (Previous
Year Rs. NIL); Reliance Retail Limited Rs. 8.57 crore (Previous Year Rs. 1.71 crore). Reliance Petroleum Limited Rs. NIL
(Previous Year Rs. 13.75 crore); Reliance Industrial Infrastructure Limited Rs. NIL (Previous Year Rs. 23.63 crore). Fixed Assets
sold to Reliance Petroleum Limited Rs. 0.42 crore (Previous Year Rs. 0.91 crore); Reliance Exploration & Production DMCC Rs.
NIL (Previous Year Rs. 295.66 crore).

Purchase of Investments include subscription to equity shares of Reliance Ventures Limited Rs. 749.00 crore (Previous Year Rs.
1,600.03 crore); Reliance Industries (Middle East) DMCC Rs. 39.64 crore (Previous Year Rs. NIL); RIL (Australia) Pty Limited
Rs. 17.46 crore (Previous Year Rs. NIL); Reliance Exploration & Production DMCC Rs. NIL (Previous Year Rs. 210.84 crore);
Reliance Jamnagar Infrastructure Limited Rs. NIL (Previous Year Rs. 99.95 crore); Reliance Petroleum Limited Rs. NIL (Previous
Year Rs. 5,400.00 crore); Reliance Retail Limited Rs. NIL (Previous Year Rs. 3,784.95 crore). Subscription to Preference Shares
of Reliance Strategic Investments Limited Rs. 4,216.92 crore (Previous Year Rs. 450.00 crore); Reliance Exploration & Production
DMCC Rs. 552.65 crore (Previous Year Rs. NIL). Sale / redemption of investments include redemption of preference shares of
Reliance Strategic Investments Limited Rs. 450.00 crore (Previous Year Rs. NIL); diminution in value of investment recognised
Rs. NIL (Previous Year Rs. 90.00 crore) in Gujarat Chemical Port Terminal Company Limited and Rs. NIL (Previous Year Rs.
3.50 crore) in Indian Vaccines Corporation Limited.

Premium receivable on preference shares include from Reliance Venture Limited Rs. 0.22 crore (Previous Year Rs. 0.17 crore).
Sundry Debtors balances include from Reliance Retail Limited Rs. 419.41 crore (Previous Year Rs. NIL); Reliance Dairy Foods
Limited Rs. 15.63 crore (Previous Year Rs. NIL); Reliance Industries (Middle East) DMCC Rs. 249.15 crore (Previous Year Rs.
NIL); Gapco Kenya Limited Rs. 153.30 crore (Previous Year Rs. NIL); Reliance Petroleum Limited Rs 52.66 crore (Previous Year
Rs. 21.28 crore); Reliance Jamnagar Infrastructure Limited Rs. 2.67 crore (Previous Year Rs. 0.03 crore); Reliance Ports and
Terminals Limited Rs. 4.24 crore (Previous Year Rs. 5.36 crore); Reliance Netherland B.V. (including Trevira GmbH) Rs. 24.32
crore (Previous Year Rs. 8.20 crore); Reliance Utilities Limited Rs. 10.98 crore (Previous Year Rs. NIL); Reliance Industrial
Infrastructure Limited Rs. NIL (Previous Year Rs. 2.99 crore).

4. Loans and Advances given include to Reliance Strategic Investments Limited Rs. 2,120.99 crore (Previous Year Rs. 6,791.36 crore);
Reliance Venture Limited Rs. 2,060.10 crore (Previous Year Rs. 4,539.99 crore); Reliance Industrial Investments and Holdings
Limited Rs. 2,778.57 crore (Previous Year Rs. 37.30 crore); Reliance Netherland B.V. (including Trevira GmbH) Rs. 148.39 crore
(Previous Year Rs. 451.28 crore); Reliance Jamnagar Infrastructure Limited Rs. 1,319.00 crore (Previous Year Rs. 655.00 crore);
Reliance Exploration and Production DMCC Rs. 113.91 crore (Previous Year Rs. 114.57 crore); Reliance Industries (Middle East)
DMCC Rs. 606.53 crore (Previous Year Rs. 9.04 crore); Reliance Retail Limited Rs. 23.20 crore (Previous Year Rs. 0.50 crore);
Recron (Malaysia) Sdn Bhd Rs. 42.11 crore ; Gujarat Chemical Port Terminal Company Limited Rs. 22.25 crore (Previous Year Rs.
NIL); Reliance Dairy Foods Limited Rs. NIL (Previous Year Rs. 4.43 crore). Deposits given to Reliance Gas Transportation
Infrastructure Limited Rs. NIL (Previous Year Rs. 2,000.00 crore). Loans and Advances repaid includes from Reliance Strategic
Investments Limited Rs. 3,757.80 crore (Previous Year Rs. 6,166.45 crore); Reliance Venture Limited Rs. 4,550.00 crore (Previous
Year Rs. 5,099.95 crore); Reliance Industrial Investments and Holdings Limited Rs. 259.11 crore (Previous Year Rs. 108.35 crore);
Reliance Exploration and Production DMCC Rs. 229.60 crore (Previous Year Rs. NIL); Reliance Jamnagar Infrastructure Limited
Rs. 355.00 crore (Previous Year Rs. NIL); Reliance Industries (Middle East) DMCC Rs. 60.34 crore (Previous Year Rs. NIL);
Reliance Netherland B.V. (including Trevira GmbH) Rs. NIL (Previous Year Rs. 451.28 crore). Balances outstanding at year end
include Reliance Ventures Limited Rs. 1,001.49 crore (Previous Year Rs. 3,491.39 crore); Reliance Strategic Investments Limited Rs.
14.05 crore (Previous Year Rs. 1,650.86 crore); Reliance Jamnagar Infrastructure Limited Rs. 1,619.00 crore (Previous year Rs.
655.00 crore); Reliance Industrial Investments and Holdings Limited Rs. 2,907.02 crore (Previous Year Rs. 387.55 crore); Reliance
Retail Limited Rs. 23.20 crore (Previous Year Rs. 0.50 crore); Recron (Malaysia) Sdn Bhd Rs. 42.11 crore; Gujarat Chemical Port
Terminal Company Limited Rs. 22.25 crore (Previous Year Rs. NIL); Reliance Industries (Middle East) DMCC Rs. 555.23 crore
(Previous Year Rs. 9.04 crore); Reliance Netherland B.V. (including Trevira GmbH) Rs. 148.70 crore (Previous Year Rs. NIL);
Reliance Exploration and Production DMCC Rs. NIL (Previous Year Rs. 114.57 crore); Reliance Gas Transportation Infrastructure
Limited Rs. 2,000.00 crore (Previous Year Rs. 2,000.00 crore); Reliance Ports and Terminals Limited Rs. 900.00 crore (Previous Year
Rs. 900.00 crore); Reliance Utilities and Power Limited Rs. 200.00 crore (Previous Year Rs. 200.00 crore); Reliance Industrial
Infrastructure Limited Rs. 35.00 crore (Previous Year Rs. 35.00 crore); Reliance Dairy Foods Limited Rs. NIL (Previous Year Rs.
4.43 crore).

138

Touching lives. Transforming India.

SCHEDULE ‘O’ (Contd.)

Sundry Creditors balances include Reliance Ports and Terminals Limited Rs. 99.91 crore (Previous Year Rs. 103.52 crore);
Gujarat Chemical Port Terminal Company Limited Rs. 21.25 crore (Previous Year Rs. 13.36 crore); Reliance Utilities and Power
Limited Rs. 23.85 crore (Previous Year Rs. 32.26 crore); Reliance Europe Limited Rs. 3.75 crore (Previous Year Rs. 4.09 crore);
Reliance Petroleum Limited Rs. 5.65 crore (Previous Year Rs. 2.69 crore); Reliance Global Management Services Private Limited
Rs. 20.74 crore (Previous Year Rs. NIL); Reliance Retail Limited Rs. 3.60 crore (Previous Year Rs. 1.85 crore).

6. Turnover include to Reliance Petroleum Limited Rs. 440.33 crore (Previous Year Rs. 209.98 crore); Reliance Industries (Middle
East) DMCC Rs. 358.69 crore (Previous Year Rs. NIL); Gapco Kenya Limited Rs. 154.56 crore; Reliance Jamnagar Infrastructure
Limited Rs. 12.65 crore (Previous Year Rs. 12.70 crore); Reliance Gas Transportation Infrastructure Limited Rs. 10.63 crore
(Previous Year Rs. 194.85 crore); Reliance Retail Limited Rs. 149.26 crore (Previous Year Rs. 207.38 crore); Reliance Dairy
Foods Limited Rs. 12.14 crore (Previous Year Rs. NIL); Reliance Ports and Terminals Limited Rs. 2.37 crore (Previous Year Rs.
NIL); Reliance Utilities Limited Rs. 17.10 crore (Previous Year Rs. NIL); and to Reliance Netherland B.V. (including Trevira
GmbH) Rs. 84.81 crore (Previous Year Rs. 27.52 crore).

7. Other Income include Dividend received from Reliance Industrial Infrastructure Limited Rs. NIL (Previous Year Rs. 4.89 crore);
Interest received from Reliance Strategic Investment Limited Rs. 11.29 crore (Previous Year Rs. 136.32 crore); Reliance Venture
Limited Rs. 213.02 crore (Previous Year Rs. 39.94 crore); Reliance Industrial Investments and Holdings Limited Rs. 24.75 crore
(Previous Year Rs. NIL); Reliance Exploration and Production DMCC Rs. 16.40 crore (Previous Year Rs. NIL); Reliance
Industries (Middle East) DMCC Rs. 14.80 crore (Previous Year Rs. NIL); Reliance Netherland B.V. (including Trevira GmbH)
Rs. 2.35 crore (Previous Year Rs. NIL); Reliance Jamnagar Infrastructure Limited Rs. 1.59 crore (Previous Year Rs. 0.96 crore);
Reliance Industrial Infrastructure Limited Rs. 2.45 crore (Previous Year Rs. 2.45 crore). Miscellaneous income from Reliance
Ports and Terminals Limited Rs. 8.56 crore (Previous Year Rs. 8.54 crore). Guarantee Commission from Recron (Malaysia) Sdn
Bhd Rs. 1.57 crore (Previous Year Rs. NIL); Reliance Europe Limited Rs. 1.22 crore (Previous Year Rs. NIL); Reliance Netherland
B.V. (including Trevira GmbH) Rs. 0.31 crore (Previous Year Rs. NIL).

Purchases from Reliance Petroleum Limited Rs. 315.53 crore (Previous Year Rs. 2.72 crore); Reliance Industrial Investments and
Holdings Limited Rs. 184.68 crore (Previous Year Rs. NIL); Reliance Jamnagar Infrastructure Limited Rs. 1.71 crore (Previous
Year Rs. 0.17 crore). Expenditure includes Electricity, Power, Fuel and Water charges paid to Reliance Utilities and Power Limited
Rs. 318.81 crore (Previous Year Rs. 318.37 crore). Rent paid to Reliance Ports and Terminals Limited Rs. 84.00 crore (Previous
Year Rs. 84.00 crore). Professional Fees paid to Reliance Europe Limited Rs. 14.92 crore (Previous Year Rs. 16.93 crore). Charter
Hire Charges paid to Reliance Europe Limited Rs. 8.88 crore (Previous Year Rs. 8.86 crore). Hire Charges paid to Gujarat
Chemical Port Terminal Company Limited Rs. 62.13 crore (Previous Year Rs. 97.55 crore); Reliance Industrial Infrastructure
Limited Rs. 21.35 crore (Previous Year Rs.14.26 crore) and Reliance Ports and Terminals Limited Rs. NIL (Previous Year Rs.
50.00 crore). Donation to Dhirubhai Ambani Foundation Rs. 14.55 crore (Previous Year 8.28 crore); Jamnaben Hirachand Ambani
Foundation Rs. 66.06 crore (Previous Year Rs. 3.69 crore). Warehousing and Distribution Charges includes to Reliance Ports and
Terminals Limited Rs. 957.46 crore (Previous Year Rs. 871.68 crore). Product Handling Charges paid to Reliance Ports and
Terminals Rs. 93.36 crore (Previous Year Rs. 91.46 crore). Manpower Services charges to Reliance Global Management Services
Private Limited Rs. 260.38 crore (Previous Year Rs. 141.63 crore). General expenses includes to Reliance Industrial Infrastructure
Limited Rs. 10.11 crore (Previous Year Rs. 10.01 crore). Payment to Key Managerial Personnel includes to Shri Mukesh D.
Ambani Rs. 44.02 crore (Previous Year Rs. 30.46 crore); Shri Nikhil R. Meswani Rs. 11.13 crore (Previous Year Rs.7.77 crore);
Shri Hital R. Meswani Rs. 11.12 crore (Previous Year Rs. 7.76 crore) and Shri H.S. Kohli Rs. 1.26 crore (PreviousYear Rs.1.15
crore).

Financial guarantees include in respect of Reliance Petroleum Limited Rs. 5,773.29 crore (Previous Year Rs. 9,030.99 crore);
Reliance Netherland B.V. (including Trevira GmbH) Rs. 1,434.55 crore (Previous Year Rs. 376.16 crore); Reliance Industries
(Middle East) DMCC Rs. 240.72 crore (Previous Year Rs. 86.94 crore); Gujarat Chemical Port Terminal Company Limited Rs.
19.00 crore (Previous Year Rs. 44.00 crore) and Reliance Europe Limited Rs. 341.02 crore (Previous Year Rs. 86.94 crore).
Performance Guarantee include in respect of Reliance Jamnagar Infrastructure Limited Rs. 136.98 crore (Previous Year Rs. 71.46
crore); Reliance Gas Transportation Infrastructure Limited Rs. 61.49 crore (Previous Year Rs. 10.00 crore); Reliance Ports and
Terminals Limited Rs. 71.95 crore (Previous Year Rs. 7.03 crore); Reliance Industrial Infrastructure Limited Rs. 4.04 crore
(Previous Year Rs. 4.04 crore). In respect of major subsidiary Reliance Petroleum Limited, the Company supports the project
implementation through co-ordination with major project vendors including supervision of their performance.

RELIANCE INDUSTRIES LIMITED 139

SCHEDULE ‘O’ (Contd.)

16. Loans and Advances in the nature of Loans given to Subsidiaries and Associates etc:

A) Loans and Advances in the nature of Loans

Sr.
No.

Name of the Company

(Rs. in crore)

As at
31st March,
2008

As at
31st March,
2007

Maximum
Balance
during the year

1. Reliance Industrial Investments & Holdings Limited*

Subsidiary

2,887.87

2. Reliance Ventures Limited

3. Reliance Strategic Investments Limited

4. Reliance Industries (Middle East) DMCC

5. Reliance Exploration & Production DMCC

Subsidiary

836.74

8.37

540.44

6. Reliance Jamnagar Infrastructure Limited

Subsidiary

1,619.00

7. Reliance Netherland B.V.

Indian Vaccines Corporation Limited

9. Gujarat Chemical Port Terminal Company Limited

Subsidiary

146.03

Associate

0.96

19.00

387.55

3,465.28

1,550.00

9.04

114.57

655.00

0.96

2,887.87

4,131.57

2,956.10

543.97

560.32

1,951.00

146.03

0.96

19.00

* Excluding Debentures of Rs. 721.48 crore (Previous Year Rs. 721.48 crore)

Notes:

(a) Loans and Advances shown above, to subsidiaries fall under the category of Loans & Advances in nature of Loans where there

is no repayment schedule and are re-payable on demand.

(b) All the above loans and advances are interest bearing except for an amount of Rs. 2,387.87 crore to Reliance Industrial Investments
& Holdings Limited, Rs. 1,595.00 crore to Reliance Jamnagar Infrastructure Limited and Rs.227.23 crore to Reliance Industries
(Middle East) DMCC.

(c)

Inter Company Deposits are not considered as they are repayable on demand and interest is charged at market rates.

(d) Loans to employees as per Company’s policy are not considered.

(i)

Investment by the loanee in the shares of the company

*None of the loanees and loanees of subsidiary companies have, per se, made investments in shares of the Company. These
investments represent shares of the Company allotted as a result of amalgamation of erstwhile Reliance Petroleum Limited
with the Company under the Scheme approved by the Hon’ble High Court of Bombay and Gujarat and subsequent inter se
transfer of shares amongst them.

Sr. No. Name of the Company

2.
3.
4.
5.

*Reliance Industrial Investments & Holdings Limited,
sole beneficiaryof Petroleum Trust
*Reliance Chemicals Private Limited
*Reliance Aromatics & Petrochemicals Private Limited
*Reliance Energy & Project Development Private Limited
*Reliance Polyolefins Private Limited

No. of Shares

10,46,60,155

3,11,19,999
29,71,000
10,29,000
3,05,97,462

(Rs. in crore)
Amount
of Loan
3,609.34

648.92
527.12
647.52
328.95

140

Touching lives. Transforming India.

SCHEDULE ‘O’ (Contd.)

(ii) Investment by Reliance Ventures Limited in subsidiaries

Sr. No. Name of the Company

Reliance Netherland B.V.

Reliance Haryana SEZ Limited

Reliance Commercial Associates Limited

(iii) Investment by Reliance Strategic Investments Limited in subsidiaries

Sr. No. Name of the Company

Reliance Neutraceuticals Private Limited

Reliance Pharmaceuticals (India) Private Limited

(iv) Investment by Reliance Industries (Middle East) DMCC in subsidiaries

Sr. No. Name of the Company

Gulf Africa Petroleum Corporation (Mauritius)

(v)

Investment by Reliance Exploration & Production DMCC in subsidiaries

Sr. No. Name of the Company

Reliance International Exploration & Production, INC

Wavely Investments Limited

(vi) Investment by Reliance Netherland B.V. in subsidiaries

Sr. No. Name of the Company

Recron (Malaysia) Sdn Bhd

Peninsula Land Kenya Limited

17. (a) Disclosure of the Company’s Interest in Oil and Gas Joint Ventures:

Sr. No. Name of the Fields in the

% Interest

Sr. No.

No. of Shares

90,000

46,250

50,000

No. of Shares

6,000

7,000

No. of Shares

16,720

No. of Shares

100

No. of Shares

25,00,000

82,108

Joint Ventures

Panna Mukta

Tapti

NEC – OSN - 97/2

KG – DWN - 98/3

GS – OSN - 2000/1

GK - OSJ - 3

GK - OS - 5

Name of the Fields in the
Joint Ventures

30% (30%)

90% (90%)

60% (60%)

40% (40%)

10.

11.

12.

13.

CB - ON/1

AS – ONN - 2000/1

KG – DWN - 2001/1

NEC – DWN - 2002/1

KG – DWN – 2003/1

MN – DWN – 2003/1

% Interest

40% (40%)

90% (90%)

85% (85%)

Figures in bracket represents Previous Year’s percentage(%) interest.

RELIANCE INDUSTRIES LIMITED 141

SCHEDULE ‘O’ (Contd.)

(b) Net Quantities of Company’s interest (on gross basis) in proved reserves and proved developed reserves within India:

Oil:

Beginning of the year

Additions

Deletion

Production

Closing balance for the year

Gas:

Beginning of the year

Additions

Deletion

Production

Closing balance for the year

Proved Reserves
(Million MT)

Proved Developed
Reserves (Million MT)

2007-08

2006-07

2007-08

2006-07

12.47

0.16

0.67

11.64

6.71

6.33

0.57

12.47

4.21

0.04

0.67

3.58

3.64

1.14

0.57

4.21

Proved Reserves
(Million M3*)

Proved Developed
Reserves (Million M3*)

2007-08

2006-07

2007-08

2006-07

2,22,145

1,78,671

1,705

1,662

2,22,188

44,684

1,210

2,22,145

16,776

1,728

1,662

16,842

13,353

4,633

1,210

16,776

* 1 cubic meter (M3)= 35.315 cubic feet and 1 cubic feet = 1000 BTU

18. As per Accounting Standards (AS) 17 “Segment Reporting”, segment information has been provided in the Notes to Consolidated

Financial Statements.

19. ADDITIONAL INFORMATION

(A) Estimated amount of contracts remaining to be executed on capital

accounts and not provided for:

(i)

In respect of joint ventures

(ii)

In respect of others

(B) Uncalled liability on partly paid shares

(Rs. in crore)

As at
31st March, 2008

As at
31st March, 2007

9,889.25

12,682.82

5,490.00

12,741.80

14,851.98

5,490.00

142

Touching lives. Transforming India.

SCHEDULE ‘O’ (Contd.)

(i) Outstanding guarantees furnished to Banks and Financial Institutions

including in respect of Letters of credit

(a)

In respect of joint ventures

(b)

In respect of others

(ii) Guarantees to Banks and Financial Institutions against credit facilities

extended to third parties

(a)

In respect of joint ventures

(b)

In respect of others*

* Includes Rs. 5,773.30 crore (Previous Year Rs. 7,292.19 crore) utilised out of total
guarantee of Rs. 11,300.00 crore issued on behalf of Reliance Petroleum Limited.

(iii) Liability in respect of bills discounted with Banks

(Including third party bills discounting)

(a)

In respect of joint ventures

(b)

In respect of others

(iv) Claims against the Company / disputed liabilities not acknowledged as debts

(a)

In respect of joint ventures

(b)

In respect of others

(v) Performance Guarantees

(a)

In respect of joint ventures

(b)

In respect of others

(vi) Sales tax deferral liability assigned

(Rs. in crore)

As at
31st March, 2008

As at
31st March, 2007

79.26

2,456.91

36.40

2,932.10

7,817.26

9,648.08

501.63

43.22

781.63

275.44

5,441.80

2,460.93

46.83

1,086.08

92.54

5,931.48

(D) The Income-Tax assessments of the Company have been completed up to Assessment Year 2006-07. The disputed demand

outstanding up to the said Assessment Year is Rs. 1,421.54 crore. Based on the decisions of the Appellate authorities and the
interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either
deleted or substantially reduced and accordingly no provision has been made.

RELIANCE INDUSTRIES LIMITED 143

SCHEDULE ‘O’ (Contd.)

20. LICENSED AND INSTALLED CAPACITY

(As certified by the Management)

Refining of Crude Oil

i Ethylene

ii Propylene

iii Benzene

iv Toluene

v Xylene

vi Hydro Cynic Acid

vii Ethane Propane Mix

viii Caustic Soda Lye / Flakes

ix Chlorine

x Acrylonitrile

xi Linear Alkyl Benzene

xii Butadine & Other C4s

xiii Other Chemicals

i Paraxylene

ii Orthoxylene

iii Toluole

Poly Vinyl Chloride

High / Linear Low Density Poly Ethylene

High Density Polyethylene Pipes

Poly Butadiene Rubber

Polypropylene

i Mono Ethylene Glycol

ii Higher Ethylene Glycol

iii Ethylene Oxide

Purified Terephthalic Acid

Polyester Filament Yarn / Polyester Chips

Polyester Staple Fibre / Acrylic Fibre / Chips

Poly Ethylene Terephthalate

Polyester Staple Fibre Fill

Man-made Fibre Spun Yarn on worsted system

Man-made fibre on cotton system (Spindles)

i Man-made Fabrics (Looms)

ii Knitting M/C

Licensed Capacity
As at 31st March,

Installed Capacity
As at 31st March,

2008

N.A.

2007

N.A.

3,600

N.A.

2008

2007

1,883,400

1,580,000

759,740

730,000

197,000

165,000

3,600

450,000

165,825

105,000

41,000

182,338

419,000

656,150

600,460

730,000

197,000

165,000

3,600

450,000

165,825

105,000

30,000

158,500

419,000

656,150

1,904,600

467,900

180,000

625,000

467,900

180,000

625,000

1,055,000

80,000

73,920

80,000

50,000

1,735,190

733,400

52,080

91,000

52,080

91,000

2,050,000

815,725+

807,200+

741,612

290,000

42,000

24,094

23,040

309

765,612

290,000

42,000

24,094

23,040

305

UNIT

Mill. MT

M T

Nos

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

144

Touching lives. Transforming India.

SCHEDULE ‘O’ (Contd.)

21. (a) The Ministry of Corporate Affairs, Government of India vide its Order No. 46/21/2008/-CL-III dated 21st April, 2008 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) (I) & (2), 3(ii)(b) of Part II, Schedule VI to the Companies Act,1956.

(b) The Ministry of Corporate Affairs, Government of India vide its Order No. 47/108/2008/-CL-III dated 16th April, 2008 has
granted approval that the requirement to attach various documents in respect of subsidiary companies, as set out in sub-section
(1) of Section 212 of the Companies Act, 1956, shall not apply to the Company. As per the Order, financial information of each
subsidiary company is attached.

22. PRODUCTION MEANT FOR SALE :

Products

Crude Oil

Gas

Petroleum Products

Ethylene

Propylene

Benzene

Toluene

Xylene

Caustic Soda Lye / Flakes

Acrylonitrile

Linear Alkyl Benzene

Butadiene

Paraxylene

Orthoxylene

Poly Vinyl Chloride

Polyethylene

High Density Polyethylene Pipes

Poly Butadiene Rubber

Polypropylene

Ethylene Glycol

Purified Terephthalic Acid

Polyester Filament Yarn

Polyester Staple Fibre

Man-made Fibre Spun Yarn

Poly Ethylene Terephthalate

Polyester Staple Fibre Fill

Fabrics

Normal Paraffin

Others

Unit

M T

BBTU

‘000 MT

M T

Mtrs. in Lacs

M T

Mtrs. in Lacs

M T

2007-08

642,596

40,884

29,532

52,546

11,687

594,291

109,499

70,141

137,968

39,005

172,637

108,409

744,481

268,789

579,817

1,085,224

74,404

2006-07

548,058

28,485

27,112

13,286

513

603,213

94,825

53,973

126,311

30,382

169,112

83,711

559,050

430,851

567,761

999,226

74,101

1,712,124

1,641,290

476,568

804,649

753,340

637,857

1,186

244,835

42,304

215

25,650

330,289

424,582

524,702

597,254

508,241

9,682

255,985

42,797

233

5,759

139,664

RELIANCE INDUSTRIES LIMITED 145

SCHEDULE ‘O’ (Contd.)

23. Financial and Derivative Instruments

a) Derivative contracts entered into by the Company and outstanding as on 31st March, 2008

(i) For Hedging Currency and Interest Rate Related Risks :

Nominal amounts of derivative contracts entered into by the Company and outstanding as at 31st March, 2008 amount to
Rs. 30,129.40 crore (Previous Year Rs. 15,383.09 crore). Category wise break up is given below :

(Rs. in crore)

Sr.No.

Particulars

As at 31st March, 2008

As at 31st March, 2007

Interest Rate Swaps (net)

Currency Swaps

Options (net)

Forward Contracts (net)

(ii) For Hedging Commodity Related Risks :

Category wise break up is given below

10,201.64

643.48

975.20

18,309.08

5,614.74

1,064.49

2,939.76

5,764.10

(in Kbbl)

As at 31st March, 2008

As at 31st March, 2007

Sr.No.

Particulars

Petroleum
product sales

Crude oil
purchases

Petroleum
product sales

Crude oil
purchases

Net forward swaps

Futures

Spreads

Margin hedging

Net Options

236

475

15,820

18,725

3,457

1,470

6,345

1,575

144

1,950

36,750

13,800

725

1,724

8,100

5,350

Foreign currency exposure that are not hedged by derivative instruments or Forward Contracts as at 31st March, 2008 amount to
Rs. 23,561.76 crore (Previous Year Rs. 14,367.34 crore).

24. VALUE OF IMPORTS ON CIF BASIS IN RESPECT OF

Raw Materials and Traded Goods

Stores, Chemicals and Packing Materials

Capital goods

2007-08

90,619.95

963.87

3,404.98

(Rs. in crore)

2006-07

73,711.35

1,540.26

1,099.98

146

Touching lives. Transforming India.

SCHEDULE ‘O’ (Contd.)

25. EXPENDITURE IN FOREIGN CURRENCY :

Interest on foreign currency loans

Technical know-how and engineering fees

Capital Contracts

Oil and gas activity

Production Royalty

Professional fees

Distribution expenses

Other matters

26. VALUE OF RAW MATERIALS CONSUMED :

Imported

Indigenous

2007-08

1,192.06

7.36

68.00

8,000.22

12.72

155.01

515.22

486.46

(Rs. in crore)

2006-07

704.34

91.34

76.76

2,874.83

435.79

197.73

538.72

467.11

2007-08

2006-07

Rs. in crore

84,851.75

5,452.10

90,303.85

% of
Consumption

93.96

6.04

100.00

Rs. in crore

72,293.11

4,578.55

76,871.66

% of
Consumption

94.04

5.96

100.00

27. VALUE OF STORES, CHEMICALS AND PACKING MATERIALS CONSUMED

Imported

Indigenous

28. EARNINGS IN FOREIGN EXCHANGE

FOB value of exports

Interest

Others

2007-08

% of
Consumption

50.95

49.05

100.00

Rs. in crore

1,284.28

1,236.30

2,520.58

2006-07

% of
Consumption

50.13

49.87

100.00

Rs. in crore

1,052.14

1,046.57

2,098.71

2007-08

75,974.22

33.92

2.62

(Rs. in crore)

2006-07

58,531.32

0.66

0.44

RELIANCE INDUSTRIES LIMITED 147

SCHEDULE ‘O’ (Contd.)

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 :

(i) Final Dividend (2005-06)

a) Number of Non Resident Shareholders

b) Number of Equity Shares held by them

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

(ii) Tax Deducted at Source

(iii) Year to which dividend relates

(ii) Interim Dividend (declared by erstwhile IPCL for 2005-06)

a) Number of Non Resident Shareholders

b) Number of Equity Shares held by them

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

(ii) Tax Deducted at Source

(iii) Year to which dividend relates

(iii) Interim Dividend (2006-07)

a) Number of Non Resident Shareholders

b) Number of Equity Shares held by them

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

(ii) Tax Deducted at Source

(iii) Year to which dividend relates

Note :

2007-08

(Rs. in crore)

2006-07

18,284

28,99,95,096

289.99

Nil

2005-2006

2006-07

1,492

3,89,09,154

21.40

Nil

2005-2006

2006-07

26,676

31,06,12,225

326.91

Nil

2006-2007

The amount of Interim dividend for the year 2006-07 includes Rs. 17.69 crore paid to 8,286 non-resident shareholders holding
2,94,95,360 shares of erstwhile IPCL.

As per our Report of even date

For and on behalf of the Board

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. Siddharth
Partner

A.R. Shah
Partner

Mumbai
April 21, 2008

V.M. Ambani
Company Secretary

Chairman & Managing Director
Executive Director
Executive Director
Executive Director

-
-
-
-

M.D. Ambani
N.R. Meswani
H.R. Meswani
H.S. Kohli
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
S. Venkitaramanan
Prof. Ashok Misra

Prof. Dipak C. Jain } Directors

148

Touching lives. Transforming India.

Balance Sheet Abstract and Company’s General Business Profile

I. Registration Details:

Registration No:

L 1 7 1 1

0 M H 1 9 7 3 P L C 0 1 9 7 8 6

Balance Sheet Date:

1 .

0 3

. 2

0 0 8

State Code:

1 1

N I L

II. Capital raised during the year (Amount in Rs. Crore):

Public Issue:

Bonus Issue:

Conversion of Bonds:

N I L

Rights Issue:

Private Placement:

Equity Share Warrants:

1 6 8 2 .

4 0

III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Crore):

Total Liabilities:

Sources of Funds:

Paid up Capital:

Equity Share Warrants:

Secured Loans:

Deferred Tax Liabilities:

Application of Funds:
Net Fixed Assets:

Current Assets:

4 9 8 3

8 .

9 1

Total Assets:

1 4 9 8 3 8 .

9 1

1 4 5

1 6 8

6 6 0

7 8 7

8 4 8 8

4 2 8 8

3 .

2 .

0 .

2 .

9 .

5 .

3 9

4 0

1 7

5 4

4 7

8 4

Reserves & Surplus:

Unsecured Loan:

Current Liabilities:

7 8 3 1 2 .

8 1

2 9 8 7 9 .

5 1

2 4 0 3 8 .

0 9

Investments:

2 2 0 6 3 .

6 0

IV. Performance of the Company (Amount in Rs. Crore ):

Turnover:

Net Turnover:

Profit Before Tax:

Earning per share in Rs.

3 9 2 6

3 3 4 4

2 3 0 1

1 3

9 .

3 .

0 .

3 .

4 6

0 0

1 4

8 6

V. Generic Names of principal services of the company:

Total Expenditure:

Profit After tax:

1 1 4 1 9 4 .

4 9

1 9 4 5 8 .

2 9

Dividend: Rs. per share

1 3 .

0 0

Item Code No. (ITC Code):
2 7 . 1 0

P E T R O L E U M

Product Description:
B U L K
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
Item Code No. (ITC Code):
3 9 0 1 2 0 . 0 0
Product Description:
P O L Y E T H Y L E N E

P R O D U C T S

( P P )

RELIANCE INDUSTRIES LIMITED 149

Financial Information of Subsidiary Companies

Sr.
No .

Name of Subsidiary Company

Reporting Capital
Currency

Reserves

Total
Assets

Total

Liabilities ments

Invest- Turnover/ Profit
Total
Before
Income Taxation Taxation

Provision
for

Rs. in crore

Profit Proposed Country
After Dividend

Taxation

Reliance Industrial Investments

INR

147.50

400.02

4,181.82

4,181.82 1,655.04

184.68

1.53

0.17

1.36

India

and Holdings Limited

Reliance Ventures Limited

Reliance Strategic Investments

Limited

INR

2.79 2,362.68

3,416.32

390.83

217.58

4.51

3.53 4,361.21

4,395.42

488.45

37.03

25.18

Reliance Industries

(Middle East) DMCC

INR

AED MN

45.56

42.45

10.45

9.74

715.03

666.23

715.03

157.98

499.25

12.24

666.23

147.20

465.18

1.14

4.01

0.01

India

0.50

1.45

23.73

12.24

1.14

Reliance Petroleum Limited

Reliance Jamnagar Infrastructure

Limited

Reliance Retail Limited

8 Reliance Netherland B.V.

Reliance Haryana SEZ Limited

1 0 Reliance Fresh Limited

1 1 Retail Concepts & Services

(India) Limited

INR

EURO MN

INR

4,499.99 8,948.96

27,381.09 27,381.09 2,438.32

100.00

0.00

2,221.58

23.45

254.90

0.05

0.04

0.01

4,051.00

(11.73)

4,854.87

22.10 1,486.15

(1.26)

(0.44)

(0.82)

0.58

0.10

9.39

1.62

12.35

2.13

12.35

2.13

2.32

0.40

6.84

1.18

5.39

0.93

0.05

0.06

2,520.71

0.51

0.55

0.49

5.39

0.93

0.06

0.05

(27.46)

1,559.22

0.44

356.67

(28.64)

(8.32)

(20.32)

0.05

(27.04)

39.97

0.00

67.21

(24.56)

(8.44)

(16.12)

1 2

Reliance Retail Insurance

INR

2.00

(2.99)

3.79

0.29

0.90

(4.08)

(1.48)

(2.60)

Broking Limited

1 3

Reliance Dairy Foods Limited

INR

0.05

(3.13)

39 .00

3 9 . 0 0

0.21

65.77

(4.37)

(1.37)

(3.00)

1 4 Reliance Exploration &

INR

189.13 12.65 509.30 509.30 25.50 65.35 12.65 -

12.65 -

Du b a i

Production DMCC

USD MN

4 7 . 9 9

3.21

1 2 9 . 2 1

6.47

16.58

3.21

2.02

100.03

103.81

102.56

1.98

(0.61)

(0.87)

0.05

(0.02)

0.96

0.25

0.10

51.21

INR

0.05

(0.01)

0.04

3.21

0.26

0.87

(0.02)

(0.01)

230.66

1.41

0.84

0.57

(0.01)

India

Du b a i

India

Netherland

India

Australia

0.05

(2.82)

110.01

0.05

40.00

(4.12)

(1.30)

(2.82)

0.05

(4.34)

3.30

18.35

5.00

(0.59)

(0.16)

19.27

5.25

19.27

5.25

0.63

(6.52)

(2.19)

(4.33)

0.12

0.03

(0.59)

(0.16)

(0.59)

(0.16) -

0.05

(2.48)

1,265.77

49.40

29.09

(3.59)

(1.11)

(2.48)

India

1.72

1.44

(8.07)

1,320.11

(6.77)

1,107.71

235.91

197.95

(8.07)

(6.77)

(8.07)

(6.77)

- Malaysia

1 5

Reliance Retail Finance Limited

1 6

RESQ Limited

1 7

Reliance Global Management

Services Private Limited

1 8

Reliance Commercial

Associates Limited

1 9

Reliance Digital Retail Limited

2 0

Reliance Financial Distribution

and Advisory Services Limited

2 1

RIL (Australia) Pty Limited

2 2 Reliance Hypermart Limited

2 3

Recron (Malaysia) Sdn Bhd

INR

AUS $ MN

INR

RM MN

As on 31.12.2007: 1 Euro = Rs. 57.9825, 1 AED = Rs. 10.7325, 1 US $ = Rs. 39.415, 1 RM = Rs. 11.9175; Exchange Rate as on 31.3.2008: 1 US $ = Rs. 40.12, 1 Aus $ = Rs. 36.6975, 1 KES = Rs. 0.63835;

150

Touching lives. Transforming India.

Financial Information of Subsidiary Companies (Contd.)

Sr.
No .

Name of Subsidiary Company

Reporting Capital
Currency

Reserves

Total
Assets

Total

Liabilities ments

Invest- Turnover/ Profit
Before
Total
Income Taxation Taxation

Provision
for

Rs. in crore

Profit Proposed Country
After Dividend

Taxation

3 2

Reliance Retail Travel & Forex

INR

1.00

(0.27)

1.71

0.96

0.13

(0.43)

(0.16)

(0.27)

2 4 Gapco Kenya Limited

2 5 Gapco Rwanda SARL

2 6 Gapco Tanzania Limited

2 7 Gapco Uganda Limited

2 8 Gapoil Tanzania Limited

2 9 Gapoil Zanzibar Limited

3 0 Gulf African Petroleum

Carporation (Mauritius)

3 1

Transenergy Kenya Limited

INR

USD MN

INR

USD MN

INR

USD MN

INR

USD MN

INR

USD MN

INR

USD MN

INR

USD MN

INR

USD MN

Services Limited

3 3

Reliance Brands Limited

3 4

Reliance Footprint Limited

3 5

Reliance Trends Limited

3 6

Reliance Wellness Limited

3 7

Reliance Lifestyle Holdings Limited

3 8

Reliance Universal Ventures Limited

3 9 Delight Proteins Limited

4 0

Reliance Autozone Limited

4 1

Reliance F&B Services Limited

4 2

Reliance Gems and Jewels Limited

4 3

Reliance Integrated Agri

Solutions Limited

4 4

Strategic Manpower Solutions Limited

4 5

Reliance Agri Products

Distribution Limited

INR

65.91

16.72

0.01

0.00

80.95

20.54

19.87

5.04

73.40

18.62

1.73

0.44

86.71

22.00

7.21

1.83

(4.77)

(1.21)

321.31

81.52

6.70

1.70

6.70

1.70

(47.30)

(12.00)

3 0 4 . 4 4

77.24

78.24

19.85

246.38

62.51

7.49

1.90

78.24

19.85

246.38

62.51

7.49

1.90

36.85

9.35

3.86

0.98

(1.10)

(0.28)

(6.98)

(1.77)

0.67

0.17

176.97

11.94

44.90

3.03

11.23

2.85

57.23

14.52

66.49

16.87

93.53

23.73

0.04

0.01

0.04

0.01

11.75

2.98

(4.73)

(1.20)

10.53

2.67

0.01

0.00

259.67

179.38

(19.87)

65.88

45.51

0.00

(5.04)

7.45

1.89

(8.99)

(2.28)

2.40

0.61

0.71

0.18

0.95

0.24

0.39

0.10

2.40

0.61

1.71

0.27

0.07

2.72

0.69

0.63

0.16

(1.86)

(0.47)

11.67

2.96

0.04

0.01

9.03

2.29

(5.36)

(1.36)

12.39

3.14

0.01

0.00

(19.87)

(5.04)

0.56

0.14

0.05

8.54

0.01

0.05

(0.06)

27.52

0.05

(0.19)

23.99

0.05

(0.09)

89.42

4.76

(0.02)

0.04

(0.06)

0.23

(0.13)

28.44

(0.05)

0.06

0.03

(0.19)

(0.08)

0.05

(4.20)

0.05

(2.15)

0.05

(0.03)

0.05

(0.03)

0.05

(0.03)

0.05

(0.09)

9.58

8.84

6.24

9.09

1.39

4.14

9.58

0.10

0.00

(6.26)

(2.07)

(4.19)

8.84

1.15

0.07

(3.23)

(1.08)

(2.15)

6.24

0.49

(0.00)

0.01

(0.01)

9.09

0.00

0.62

(0.01)

1.39

0.00

0.06

(0.00)

0.01

(0.02)

(0.01)

0.05

(0.20)

25.31

4.14

0.00

(0.11)

(0.03)

(0.08)

0.07

(0.01)

0.19

(0.20)

0.05

(2.35)

19.26

13.47

(3.49)

(1.14)

(2.35)

0.05

(0.03)

0.80

0.05

(0.05)

(0.02)

(0.03)

0.02

(0.48)

(0.16)

(0.32)

Kenya

Rwanda

Tanzania

Uganda

Tanzania

Zanzibar

- Mauritus

Kenya

India

4 6

Reliance Digital Media Limited

INR

0.05

(0.32)

0.23

As on 31.12.2007: 1 Euro = Rs. 57.9825, 1 AED = Rs. 10.7325, 1 US $ = Rs. 39.415, 1 RM = Rs. 11.9175; Exchange Rate as on 31.3.2008: 1 US $ = Rs. 40.12, 1 Aus $ = Rs. 36.6975, 1 KES = Rs. 0.63835;

Financial Information of Subsidiary Companies (Contd.)

RELIANCE INDUSTRIES LIMITED 151

Sr.
No.

Name of Subsidiary Company

Reporting Capital
Currency

Reserves

Total
Assets

Total

Liabilities ments

Invest- Turnover/ Profit
Total
Before
Income Taxation Taxation

Provision
for

Rs. in crore

Profit Proposed Country
After Dividend

Taxation

4 7

Reliance Food Processing

INR

0.05

(0.08)

191.36

Solutions Limited

4 8

Reliance Home Store Limited

4 9

Reliance Leisures Limited

INR

0.05

(0.09)

37.14

0.05

(0.06)

45.99

5 0

Reliance Loyalty & Analytics Limited

INR

0.05

(0.00)

5 1

Reliance Retail Securities and

INR

0.05

Broking Company Limited

0.05

0.07

0.05

0.07

5 2

Reliance Supply Chain

INR

0.05

(0.11)

290.95

Solutions Limited

5 3

Reliance Trade Services Centre Limited

5 4 Advantage Retail Private Limited

5 5

Reliance International Exploration

INR

and Production, INC

USD MN

0.05

(0.01)

2.04

0.56

(11.71)

110.36

0.00

2.01

0.50

2.01

0.50

1.99

(0.12)

(0.04)

(0.08)

22.01

(0.09)

10.71

(0.09)

(0.03)

(0.06)

(0.00)

0.00

(0.00)

0.02

24.87

(0.04)

0.07

(0.11)

(0.00)

0.01

(0.01)

(5.01)

(4.96)

(0.05)

(1.48)

(23.13)

India

U SA

Kenya

India

5 6

Peninsula Land Kenya Limited

INR

148.87

(1.48)

147.44

76.00

KES MN

2,332.11

(23.13)

2,309.73

2,309.73 1,190.54

0.00

(1.48)

(23.13)

5 7 Abcus Retail Private Limited

5 8

Bigdeal Retail Private Limited

5 9

Reliance Neutraceuticals Private

Limited

6 0

Reliance Petroinvestments Limited

6 1

Reliance Pharmaceuticals (India)

Private Limited

6 2

Wavely Investments Limited

INR

0.05

(0.00)

0.05

(0.00)

0.06

(0.00)

0.01

1.02

288.03

4.46

0.00

(0.01)

8.88

167.82

177.10

176.58

0.48

0.45

0.01

1.02

288.03

4.48

0.00

(0.01)

0.00

India

0.45

India

(0.01)

0.00

India

Cyprus

INR

Euro MN

0.00

As on 31.12.2007: 1 Euro = Rs. 57.9825, 1 AED = Rs. 10.7325, 1 US $ = Rs. 39.415, 1 RM = Rs. 11.9175; Exchange Rate as on 31.3.2008: 1 US $ = Rs. 40.12, 1 Aus $ = Rs. 36.6975, 1 KES = Rs. 0.63835;

152

Touching lives. Transforming India.

Consolidated Financial Statements and Notes

RELIANCE INDUSTRIES LIMITED 153

Auditors’ Report on Consolidated Financial Statements

To The Board of Directors
Reliance Industries Limited

We have audited the attached Consolidated Balance Sheet of Reliance
Industries Limited (the Company) and its Subsidiaries (collectively
referred to as “the Group”) as at 31st March, 2008, and also the
Consolidated Profit and Loss Account and the Consolidated Cash
Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company’s
management and have been prepared by the Management on the
basis of separate financial statements and other financial information
regarding components. Our responsibility is to express an opinion
on these financial statements based on our audit.

We conducted our audit in accordance with the 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.

Financial statements / consolidated financial statements of
subsidiaries, which reflect total assets of Rs. 49,640.69 crore
as at 31st March, 2008, total revenue of Rs. 4,556.01 crore and
cash flows amounting to Rs. 77.45 crore for the year then
ended, have been audited by one or jointly by two of us or one
of us with other and financial statements of two associates in
which the share of profit of the Group is Rs. 8.83 crore have
been audited by one of us.

2. We did not audit the financial statements of three subsidiaries,
whose financial statements / consolidated financial statements
reflect total assets of Rs. 879.42 crore as at 31st March, 2008
or 31st December, 2007 as the case may be, total revenue of Rs.
301.75 crore and cash flows amounting to Rs. (26.47) crore for
the year then ended. These financial statements and other
financial information have been audited by other auditors whose
reports have been furnished to us, and our opinion is based
solely on the report of other auditors.

3. We have relied on the unaudited financial statements of one
subsidiary whose consolidated financial statements reflect total
assets of Rs. 872.99 crore as at 31st December, 2007, total
revenue of Rs. 745.66 crore and cash flows amounting to Rs.
41.46 crore for the year then ended and on the unaudited

financial statements of three associates wherein the Group’s
share of profit aggregates to Rs. 6.13 crore (net). These
unaudited financial statements as approved by the respective
Board of Directors of these companies have been furnished to
us by the Management and our report in so far as it relates to
the amounts included in respect of the subsidiary and associates
is based solely on such approved unaudited financial
statements.

4. We report that the consolidated financial statements have been
prepared by the Company’s management in accordance with
the requirements of Accounting Standards (AS) 21,
Consolidated Financial Statements and Accounting Standards
(AS) 23, Accounting for Investments in Associates in
Consolidated Financial Statements notified by Companies
(Accounting Standards) Rules, 2006.

5. Attention is invited to Note no.5 of Schedule “N” regarding
accounting for foreign currency exchange differences on amounts
borrowed for acquisition of fixed assets.

6. Based on our audit as aforesaid, and on consideration of reports
of other auditors on the separate financial statements and on
the other financial information of the components and accounts
approved by the Board of Directors as explained in paragraph
3 above and to the best of our information and according to the
explanations given to us, we are of the opinion that the attached
consolidated financial statements give a true and fair view in
conformity with the accounting principles generally accepted
in India:

(i)

(ii)

in the case of the Consolidated Balance Sheet, of the State
of Affairs of the Group as at 31st March, 2008;

in the case of the Consolidated Profit and Loss Account,
of the Profit of the Group for the year ended on that date;
and

(iii) in the case of the Consolidated Cash Flow Statement, of
the Cash Flows of the Group for the year ended on that
date.

For Chaturvedi & Shah For Deloitte Haskins & Sells For Rajendra & Co.
Chartered Accountants Chartered Accountants

Chartered Accountants

D. Chaturvedi
Partner
Membership No.: 5611 Membership No.: 31467

A. Siddharth
Partner

A. R. Shah
Partner
Membership No.: 47166

Mumbai
April 21, 2008

154

Touching lives. Transforming India.

Reliance Industries Limited
Consolidated Balance Sheet as at 31st March, 2008

SOURCES OF FUNDS

Shareholders’ Funds
Share Capital
Equity Share Suspense
Equity Share Warrants
Reserves and Surplus

Minority Interest
Loan Funds
Secured Loans
Unsecured Loans

Deferred Tax Liability

TOTAL

APPLICATION OF FUNDS

Fixed Assets
Gross Block
Less: Depreciation
Net Block
Capital Work -in -Progress

Investments
In Associates
In Others

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
Miscellaneous Expenditure
[to the extent not written off or adjusted]
TOTAL

Significant Accounting Policies
Notes on Accounts

As per our Report of even date

Schedule

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

‘A’

‘B’

‘C’
‘D’

‘E’

‘F’

‘G’

‘H’

‘M’
‘N’

1,453.39
-
1,682.40
82,374.69

1,393.21
60.14
-
66,765.73

85,510.48
4,088.58

68,219.08
3,422.01

19,576.52
31,119.57

15,046.76
18,604.72

50,696.09
7,798.34

1,48,093.49

33,651.48
6,990.53

1,12,283.10

1,09,180.19
45,119.08
64,061.11
49,884.10

246.32
9,276.53

19,126.14
6,068.30
4,474.16
72.62
29,741.22
21,747.65
51,488.87

23,417.51
3,449.18
26,866.69

1,03,302.76
38,480.20
64,822.56
29,323.71

1,13,945.21

94,146.27

240.73
5,027.28

9,522.85

5,268.01

12,456.27
3,831.35
1,937.04
3.15
18,227.81
14,888.08
33,115.89

18,185.25
2,066.38
20,251.63

24,622.18
3.25

1,48,093.49

12,864.26
4.56

1,12,283.10

For and on behalf of the Board

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. Siddharth
Partner

A.R. Shah
Partner

Mumbai
April 21, 2008

V.M. Ambani
Company Secretary

Chairman & Managing Director
Executive Director
Executive Director
Executive Director

-
-
-
-

M.D. Ambani
N.R. Meswani
H.R. Meswani
H.S. Kohli
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
S. Venkitaramanan
Prof. Ashok Misra

Prof. Dipak C. Jain } Directors

Reliance Industries Limited
Consolidated Profit and Loss Account for the year ended 31st March, 2008

RELIANCE INDUSTRIES LIMITED 155

INCOME

Turnover
Less: Excise Duty / Service Tax Recovered
Net Turnover
Other Income (including Share in Associates)
Variation in Stocks

EXPENDITURE
Purchases
Manufacturing and Other Expenses
Interest and Finance Charges
Depreciation
Less: Transferred from Revaluation Reserve
[Refer Note 4, Schedule ‘N’]

Profit before Tax

Provision for Current Tax
Provision for Fringe Benefit Tax
Provision for Deferred Tax

Profit after Tax (before adjustment for Minority Interest)

Add: Share of (Profit) / Loss transferred to Minority

Profit after Tax (after adjustment for Minority Interest)
Add: Balance brought forward from Previous year
Dividend adjustment on consolidation
Adjustments on Amalgamation of Associate
Excess Provision for tax for Earlier Years

Amount Available for Appropriations

APPROPRIATIONS

Statutory Reserve
General Reserve
Interim Dividend on Equity Shares
Proposed Dividend on Equity Shares
Tax on Dividend

Balance Carried to Balance Sheet

Schedule

2007-08

(Rs. in crore)

2006-07

1,43,004.98
5,858.32

1,20,431.10
6,660.99

‘I’
‘J’

‘K’
‘L’

1,37,146.66
5,956.95
1,533.93
1,44,637.54

9,850.71
1,05,685.28
1,086.52

6,784.91
1,780.71

6,896.46
1,997.01

5,004.20
1,21,626.71
23,010.83
2,572.08
49.58
865.93
19,523.24
(1.86)
19,521.38
3,044.17
12.32
-
46.45
22,624.32

5.74
16,000.00
-
1,631.24
277.23

27.25
10,565.17
1,440.44
-
202.02

17,914.21
4,710.11

134.29

105.42

134.61

1,13,770.11
650.92
696.92
1,15,117.95

1,944.93
92,394.25
1,232.29

4,899.45
1,00,470.92
14,647.03
1,626.46
40.55
905.28
12,074.74
0.09
12,074.83
3,740.66
104.65
(641.60)
0.51
15,279.05

12,234.88
3,044.17

83.07

Significant Accounting Policies
Notes on Accounts

As per our Report of even date

‘M’
‘N’

For and on behalf of the Board

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. Siddharth
Partner

A.R. Shah
Partner

Mumbai
April 21, 2008

V.M. Ambani
Company Secretary

Chairman & Managing Director
Executive Director
Executive Director
Executive Director

-
-
-
-

M.D. Ambani
N.R. Meswani
H.R. Meswani
H.S. Kohli
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
S. Venkitaramanan
Prof. Ashok Misra

Prof. Dipak C. Jain } Directors

156

Touching lives. Transforming India.

Reliance Industries Limited
Consolidated Cash Flow Statement for the year 2007-08

A: CASH FLOW FROM OPERATING ACTIVITIES:

2007-08

2006-07

(Rs. in crore)

Net Profit before tax as per Profit and Loss Account

23,010.83

14,647.03

Adjusted for:

Miscellaneous Expenditure written off

Share in Income of Associates

Net Prior Year Adjustments

Diminution in value / write off of Investments

Investment Grant (non cash income)

(Profit) / Loss on Sale / Discarding of Assets (net)

Depreciation

Transferred from Revaluation Reserve

Effect of Exchange Rate Change

Profit on Sale of Investments (net)

Exceptional Item

Dividend Income

Interest / Other Income

Interest and Finance Charges

Operating Profit before Working Capital Changes

Adjusted for:

Trade and Other Receivables

Inventories

Trade Payables

Cash Generated from Operations

Net Prior Year Adjustments

Taxes Paid

Net Cash from Operating Activities

B: CASH FLOW FROM INVESTING ACTIVITIES:

Purchase of Fixed Assets

Sale of Fixed Assets

Purchase of Investments

Sale of Investments

Movement in Loans and Advances

Interest Income

Dividend Income

1.31

(14.96)

2.02

13.92

(0.47)

(6.13)

6,784.91

(1,780.71)

(357.04)

(250.39)

(4,733.50)

(33.86)

(446.18)

1,086.52

(3,809.04)

(4,026.83)

3,269.57

0.53

2.80

(1.92)

93.07

(0.46)

6.20

6,896.46

(1,997.01)

(164.80)

(123.57)

(109.78)

(283.49)

1,232.29

265.44

23,276.27

5,550.32

20,197.35

(1,763.19)

(849.75)

1,098.22

(4,566.30)

18,709.97

(2.02)

(2,474.85)

16,233.10

(26,745.36)

105.05

(98,475.15)

1,02,810.20

(8,622.82)

462.64

39.89

(1,514.72)

18,682.63

1.92

(1,935.56)

16,748.99

(27,980.32)

34.26

(58,125.11)

60,556.50

(4,238.61)

396.70

111.52

Net Cash Used in Investing Activities

(30,425.55)

(29,245.06)

Consolidated Cash Flow Statement for the year 2007-08 (Contd.)

RELIANCE INDUSTRIES LIMITED 157

C: CASH FLOW FROM FINANCING ACTIVITIES:

Proceeds from Issue of Share Capital

Proceeds from Equity Share Warrants

Proceeds from Issue of Share to Minorities

Proceeds from Long Term Borrowings

Repayment of Long Term Borrowings

Short Term Loans

Dividends Paid (including dividend distribution tax)

Interest Paid

Miscellaneous Expenditure / Issue expenses

Net Cash from Financing Activities

Net Increase / (Decrease) in Cash and Cash Equivalents

Opening Balance of Cash and Cash Equivalents

Add: Upon addition of New Subsidiaries

Add: On Amalgamation

2007-08

2006-07

(Rs. in crore)

0.04

1,682.40

19,382.05

(2,228.94)

498.71

(2,616.93)

(0.52)

16,716.81

2,524.36

261.10

5,000.84

12,223.94

(4,350.44)

2,671.04

(3,273.94)

(1,747.98)

(48.46)

10,736.10

(1,759.97)

1,937.04

12.76

2,616.41

1.03

1,079.57

1,949.80

3,697.01

Closing Balance of Cash and Cash Equivalents

4,474.16

1,937.04

As per our Report of even date

For and on behalf of the Board

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. Siddharth
Partner

A.R. Shah
Partner

Mumbai
April 21, 2008

V.M. Ambani
Company Secretary

Chairman & Managing Director
Executive Director
Executive Director
Executive Director

-
-
-
-

M.D. Ambani
N.R. Meswani
H.R. Meswani
H.S. Kohli
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
S. Venkitaramanan
Prof. Ashok Misra

Prof. Dipak C. Jain } Directors

158

Touching lives. Transforming India.

Schedules forming part of the Consolidated Balance Sheet

SCHEDULE ‘A’

SHARE CAPITAL

Authorised:

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

250,00,00,000 Equity Shares of Rs. 10 each

2,500.00

(250,00,00,000)

50,00,00,000 Preference Shares of Rs. 10 each

500.00

(50,00,00,000)

Issued, Subscribed and Paid up:

3,000.00

145,36,48,601 Equity Shares of Rs. 10 each fully

1,453.65

1,393.51

(139,35,08,041) paid up

Less: Calls in arrears - by others

0.26

0.30

TOTAL

1. Of the above Equity Shares:

1,453.39

1,393.21

(a)

(b)

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

Shares out of the issued and subscribed share capital before the buyback of shares were allotted as Bonus
Shares by capitalisation of Securities Premium and Reserves.

52,31,98,799
(52,31,98,799)

(c)

33,04,27,345
(33,04,27,345)

(d)

6,01,40,560
(-)

Shares were issued pursuant to a scheme of amalgamation of erstwhile Indian Petrochemicals Corporation
Limited with the Company without payments being received in cash.

In the year 2004-05, the Company bought back and extinguished 28,69,495 equity shares.

RELIANCE INDUSTRIES LIMITED 159

Schedules forming part of the Consolidated Balance Sheet

SCHEDULE ‘B’

RESERVES AND SURPLUS

Revaluation Reserve

As per last Balance Sheet
Less: Transferred to Profit and Loss Account

(Refer Note 4, Schedule ‘N’)
Deduction on Sale / Discarding of Revalued Assets

Capital Reserve

As per last Balance Sheet
Add: On Consolidation of Subsidiaries (net)

Exchange Fluctuation Reserve
Capital Redemption Reserve
As per last Balance Sheet

Securities Premium Account
As per last Balance Sheet
Add: On Amalgamation

Premium on Conversion of Optionally Fully
Convertible Debentures

Less: Premium on Redemption / buy back of Debentures / Bonds

Less: Calls in arrears - by others

Debentures Redemption Reserve

As per last Balance Sheet

Statutory Reserve

As per last Balance Sheet
Add: Opening Balance of New Subsidiaries

Transferred from Profit and Loss Account

General Reserve*

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

Less: Charge on account of transitional provisions under

Accounting Standard 15

Share in Reserves of Associates

Revaluation Reserve
As per last Balance Sheet

Profit and Loss Account

TOTAL

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

2,979.34
1,780.71

3,877.72
(272.94)

21,331.99
-
-

21,331.99
18.19
21,313.80
1.78

47.66
33.85
5.74

34,003.95
16,000.00
50,003.95

4,977.56
1,997.01

1.21

1,198.63

2,979.34

3,604.78
(26.72)

887.94

21,312.02

587.02

459.14
3,418.58

15,467.41
5,461.25
403.33

21,331.99
-
21,331.99
1.79

0.43
19.98
27.25

3,877.72
(1.98)

887.94

21,330.20

587.02

87.25

47.66

23,503.95
10,565.17
34,069.12

65.17

50,003.95

34,003.95

9.71

4,710.11

82,374.69

9.71

3,044.17

66,765.73

* Cumulative amount withdrawn on account of Depreciation on Revaluation is Rs 2,563.43 crore.

160

Touching lives. Transforming India.

Schedules forming part of the Consolidated Balance Sheet

SCHEDULE ‘C’

SECURED LOANS

A) DEBENTURES

Non Convertible Debentures

B) TERM LOANS
From Banks
Foreign Currency Loans
Rupee Loans

C) WORKING CAPITAL LOANS

From Banks
Foreign Currency Loans
Rupee Loans

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

4,118.12

5,346.26

10,843.22
2,070.20

4,367.59
1,150.64

12,913.42

5,518.23

1,075.22
1,469.76

856.36
3,325.91

2,544.98

4,182.27

TOTAL

19,576.52

15,046.76

1. Debentures referred to in A above to the extent of:

a) Rs. 2,115.00 crore are secured by way of first 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) Rs. 521.25 crore are secured by way of first 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 assets
situated at Hazira, District Surat in the State of Gujarat.

c) Rs. 1,227.05 crore are secured by way of first mortgage / charge on all the properties, both present and future, excluding book debts,

office premises and certain other properties specifically excluded of the Refinery Division of the Company.

d) Rs. 110.34 crore are secured by way of first mortgage / charge on certain properties situated at village Munja Dhanot, District Kalol in

the State of Gujarat and on fixed assets situated at Hoshiarpur Complex of the Company.

e) Rs. 49.43 crore are secured by way of first mortgage / charge on certain properties situated at Ahmedabad in the State of Gujarat and on

fixed assets situated at Nagpur Complex of the Company.

f) Rs. 44.05 crore are secured by way of first mortgage / charge on certain properties situated at Surat in the State of Gujarat and on fixed

assets situated at Allahabad Complex of the Company.

g) Rs. 51.00 crore are secured by way of first mortgage / charge on movable and immovable properties situated at Thane in the State of

Maharashtra and on movable properties situated at Baulpur Complex of the Company.

2. Debentures referred to in A above are redeemable at par, in one or more instalments, on various dates with the earliest redemption being on
27th May, 2008 and the last being on 24th November, 2018. The debentures are redeemable as follows: Rs. 926.00 crore in financial year
2008-09, Rs. 742.30 crore in financial year 2009-10, Rs. 175.00 crore in financial year 2010-11, Rs. 250.00 crore in financial year 2011-12,
Rs. 593.70 crore in financial year 2012-13, Rs. 458.26 crore in financial year 2013-14, Rs. 408.82 crore in financial year 2014-15, Rs. 164.04
crore in financial year 2015-16, Rs. 133.33 crore in financial year 2016-17, Rs. 133.33 crore in financial year 2017-18 and Rs. 133.34 crore
in financial year 2018-19.

Foreign currency loans referred to in B above to the extent of Rs. 10,807.53 crore and Rupee loan refer to B above to the extent of Rs. 2020.00
crore are secured by a first ranking pari-passu mortgage over leasehold interest under the land lease agreement and the fixed assets (including
plant and machinery) of the Refinery and Polypropylene plant (“project”) in a Special Economic Zone at Jamnagar, Gujarat, India affixed
thereon; a first ranking pari-passu charge over movable assets (other than current assets and investments) of above project; a floating second

RELIANCE INDUSTRIES LIMITED 161

Schedules forming part of the Consolidated Balance Sheet

SCHEDULE ‘C’ (Contd.)

ranking charge over such of Company’s current assets relating to the above project that are charged on a first ranking basis to the working
capital lenders and an assignment of company’s right, title and interest under the key project agreements, including agreements in respect
of utilities.

Foreign currency loans referred to in B above to the extent of Rs. 4.27 crore is secured by equitable mortgage on all assets of Advantage Retail
Private Limited, a subsidiary of Reliance Retail Limited.

Foreign currency loans referred to in B above to the extent of Rs. 22.17 crore is secured by way of charge against Mombassa Terminal, Land
bearing Plots Nos. 1/326, 1/475, 1/476 situated in Mombasa Kenya.

Foreign currency loans referred to in B above to the extent of Rs. 1.12 crore is having charge over all the immovable and movable fixed
assets of two depots and thirteen retail service stations located in the country of Tanzania.

Foreign currency loans referred to in B above to the extent of Rs. 8.13 crore is having charge over all the immovable and movable fixed
assets of seven depots and ten retail service stations including five residential houses located in the country of Tanzania.

4. Rupee loan referred to in B above to the extent of Rs. 50.20 crore are secured by hypothecation of vehicles.

5. Working Capital Loans referred to in C above to the extent of :

a) Rs. 2,352.11 crore 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, bills, materials in transit, etc. save and except receivables of
Oil and Gas Division.

b) Rs. 62.93 crore are secured by way of lien against term deposit with banks.

c) Rs. 129.94 crore are secured against Government Securities and Treasury Bills.

SCHEDULE ‘D’

UNSECURED LOANS

A Long Term

ii)

From Banks

From Others

B Short Term

ii)

From Banks

From Others

C Deferred Sales Tax Liability

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

20,759.95

3,800.30

9,790.05

4,549.19

24,560.25

14,339.24

6,508.22

23.48

4,203.35

37.11

6,531.70

27.62

4,240.46

25.02

TOTAL

31,119.57

18,604.72

162

Touching lives. Transforming India.

Schedules forming part of the Consolidated Balance Sheet

SCHEDULE ‘E’

FIXED ASSETS
Description

Gross Block

Depreciation

Net Block

As at
01-04-2007

Additions

Deductions/
Adjustments

As at
31-03-2008

For the
Year@

Upto
31-03-2008

As at
31-03-2008

As at
31-03-2007

(Rs. in crore)

OWN ASSETS :
Leasehold Land
Freehold Land
Buildings
Plant & Machinery
Railway Sidings
Electrical Installations
Equipments
Furniture & Fixtures
Vehicles
Ships
Aircrafts & Helicopters
Jetties
Sub-Total
LEASED ASSETS :
Plant & Machinery
Ships
Sub-Total
INTANGIBLE ASSETS :
Technical Knowhow Fees**
Software **
Others
Sub-Total
Total
Previous Year
Capital Work in-Progress

1,631.60
1,045.44
5,730.50
86,728.97
0.60
2,104.24
1,661.29
369.08
225.99
274.94
117.40
646.97
1,00,537.02

187.05
285.95
826.97
4,214.86
-
239.04
538.04
104.26
72.14
-
68.42
-
6,536.73

-
336.60
183.67
212.40
-
0.13
2.83
1.08
12.87
-
-
-

1,818.65
994.79
6,373.80
90,731.43
0.60
2,343.15
2,196.50
472.26
285.26
274.94
185.82
646.97
749.58 1,06,324.17

123.19
9.98
133.17

-
-
-

123.19
9.98
133.17

38.51
-
263.42
5,845.45
0.09
155.92
152.96
38.97
35.31
8.10
9.32
68.85
6,616.90

32.85
-
32.85

59.07
-
1,810.91
38,811.86
0.19
901.12

1,759.58
994.79
4,562.89
51,919.57
0.41
1,442.03
842.06 1,354.44
252.47
219.79
167.98
117.28
209.93
65.01
105.35
80.47
164.11
482.86
62,788.63
43,535.54

1,619.29
1,045.44
4,131.22
53,660.41
0.50
1,354.97
962.21
198.45
142.78
73.11
46.25
232.96
63,467.59

51.74
9.98
61.72

71.45
-
71.45

104.30
-
104.30

2,102.39
323.61
206.57
2,632.57

90.53
71.47
0.42
162.42
1,03,302.76 6,699.15#
87,840.75 15,692.56

-
2.81
69.33
72.14

2,192.92
392.27
137.66
2,722.85
821.72 1,09,180.19
230.55 1,03,302.76

117.10
43.82
0.20
161.12
6,810.87*
6,910.33

1,220.29
283.28
18.25
1,521.82
45,119.08##
38,480.20

972.63
108.99
119.41
1,201.03
64,061.11
64,822.56
49,884.10

1,044.47
86.37
119.83
1,250.67
64,822.56

29,323.71

NOTES :
a )
b)

Leasehold land includes Rs. 203.19 crore (Previous Year Rs. 207.75 crore), in respect of which lease deeds are pending execution.
Buildings include :
i)
ii)

Cost of Shares in Co-operative Housing Societies Rs. 0.06 crore (Previous Year Rs.0.03 crore)
93.20 crore (Previous Year Rs. 93.20 crore) incurred towards purchase / acquisition of 1,94,819 equity Shares of Re.1 each of Mature
Trading & Investments Pvt.Ltd.with a right of occupancy of certain area of a commercial premises.

iii) Rs.29,125 (Previous Year Rs.29,125) towards 5 shares of Rs.200 each of Bombay Gujarat Art Silk Vepari Mahajan Co-operative Shops
& Warehouse Society Limited, 60 shares of Rs.100 each of New Piece Goods Bazar Co. Limited, 15 shares of Rs.100 each of
Pandesara Industrial Co-operative Society Limited, 20 shares of Rs.200 each of The Bombay Market Art Silk Co-operative (Shops
& Warehouses) Society Limited and 225 shares of Rs.100 each, Rs.25 paid up of Crimpers Industrial Co-operative Society Limited
with a right of occupancy of certain area of concerned commercial premises

c )

iv) Rs.4.88 Crore (Previous Year Rs. 4.88 crore) in respect of which conveyance is pending.
Capital-work-in progress includes :
i) Rs. 2,745.72 crore on account of pre-operative expenses. (Previous Year Rs. 1,071.05 crore)
ii) Rs. 12,066.14 crore on account of cost of construction materials at site (Previous Year Rs. 3,969.75 crore)
iii) Rs. 4,818.67 crore on account of advance against capital expenditure. (Previous Year Rs. 15,004.05 crore)

d) Additions / Deletions and Capital work in Progress is net of gain of Rs. 1,176.38 crore on account of exchange difference during the year.

e )

f )

(Previous Year net of gain of Rs.287.06 crore)
The Ownership of Jetties vests with Gujarat Maritime Board. However, under an agreement with Gujarat Maritime Board, the company has
been permitted to use the same at a concessional rate.
Gross Block includes Rs. 22,497.34 crore being the amount added on revaluation of Building, Plant and Machinery, Electrical Installations
and Equipment as at 1st August, 2005 based on report issued by international valuers.

g) Additions for previous year includes Rs 5,860.61 crore being assets acquired on amalgamation of erstwhile Indian Petrochemicals

Corporation Limited with the Company.
Refer to Note 4 , Schedule ‘N’

*
* * Other than internally generated
@ Includes depreciation of Rs 25.96 crore accounted as project development expenditure.
#
# #

Includes Fixed Assets of new subsidiaries.
Includes Accumulated Depreciation of new subsidiaries.

RELIANCE INDUSTRIES LIMITED 163

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 / Traded Goods

SUNDRY DEBTORS (Unsecured and Considered Good)
Over six months
Others

CASH AND BANK BALANCES
Cash on hand

Balance with Banks
In Current Accounts

with Scheduled Banks
with Others

In Fixed Deposit Accounts :

with Scheduled Banks

OTHER CURRENT ASSETS
Interest Accrued on Investments
Premium Accrued on Investments in Preference Shares

TOTAL

SCHEDULE ‘G’

LOANS AND ADVANCES

UNSECURED - (Considered Good Unless Otherwise Stated)

Advance Income Tax (net of Provision)

Advances recoverable in cash or in kind or for

value to be received*

Less: Considered Doubtful

Deposits

Balance with Customs, Central Excise Authorities, etc.

TOTAL

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

1,829.24
8,552.36
4,508.37
4,236.17

13.12
6,055.18

1,027.61
4,555.25
1,888.74
4,984.67

19,126.14

12,456.27

13.02
3,818.33

6,068.30

3,831.35

22.00

3.56

251.11
115.77

4,085.28

72.55
0.07

389.62
16.76

1,527.10

4,474.16

1,937.04

3.08
0.07

72.62

29,741.22

3.15

18,227.81

(Rs. in crore)

As at
31st March, 2008

As at
31st March, 2007

416.53

321.55

14,373.16

71.78

6,857.90

69.93

14,301.38

5,579.89

1,449.85

21,747.65

6,787.97

6,953.95

824.61

14,888.08

* Include Preference Share application money of Rs. 2,325.38 crore (Previous Year NIL) and zero coupon optionally convertible loan

of Rs. 3,354.78 crore (Previous Year Rs. 1,958.29 crore).

164

Touching lives. Transforming India.

Schedules forming part of the Consolidated Balance Sheet

SCHEDULE ‘H’

CURRENT LIABILITIES AND PROVISIONS

CURRENT LIABILITIES
Sundry Creditors - Micro, Small and Medium Enterprises

- Others *

Liability for Leased Assets
Unpaid Dividend #
Unpaid Matured debentures #
Share Application Money refundable
Interest accrued on above #
Interest accrued but not due on Loans

PROVISIONS
Provision for Income Tax
Provision for Fringe Benefit Tax
Provision for Wealth Tax
Provision for Leave encashment / Superannuation / Gratuity
Other Provisions
Proposed Dividend
Tax on Dividend

TOTAL

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

9.14
22,789.54
5.33
70.32
2.19
1.79
0.19
539.01

45.11
3.21
24.29
898.61
569.49
1,631.24
277.23

8.15
17,682.62
11.42
69.52
2.54
3.06
0.24
407.70

23,417.51

18,185.25

36.03
2.99
16.28
517.70
1,493.37
0.01
-

3,449.18

26,866.69

2,066.38

20,251.63

* Includes for capital expenditure Rs.3,744.61 crore (Previous Year Rs. 2,451.54 crore)
# These figures do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund except Rs. 6.11

crore (Previous Year Rs. 4.93 crore) which is held in abeyance due to legal cases pending.

Schedules forming part of the Consolidated Profit and Loss Account

SCHEDULE ‘I’

OTHER INCOME
Dividend :

From Current Investments
From Long Term Investments

Interest:

From Current Investments
From Long Term Investments
From Others
[Tax Deducted at Source Rs. 105.34 crore
(Previous Year Rs. 22.05 crore)]

Profit on sale of Current Investments (net)
Profit on sale of Fixed Assets
Miscellaneous Income
Share in Associates
Execptional Items*

TOTAL

2007-08

2006-07

(Rs. in crore)

33.85
0.01

70.85
-
375.33

59.23
50.55

33.86

109.78

51.86
1.16
230.47

446.18

250.39
28.19
449.87
14.96
4,733.50

5,956.95

283.49

123.57
17.41
119.47
(2.80)
-

650.92

*Represents gains primarily arising out of transactions concerning Reliance Petroleum Limited Shares (Long Term Investments).

Schedules forming part of the Consolidated Profit and Loss Account

RELIANCE INDUSTRIES LIMITED 165

SCHEDULE ‘J’

VARIATION IN STOCKS

STOCK-IN-TRADE (at close)

Finished / Traded Goods

Stock-in-Process

STOCK-IN-TRADE (at commencement)

Finished / Traded Goods

Stock-in-Process

Add: on Amalgamation

Finished / Traded Goods

Stock-in-Process

2007-08

2006-07

(Rs. in crore)

4,236.17

4,508.37

4,984.67

1,888.74

6,873.41

4,984.67

1,888.74

8,744.54

6,873.41

3,544.81

1,739.60

5,284.41

837.36

40.40

877.76

14.32

Opening stock of subsidiary acquired during the year

337.20

TOTAL

SCHEDULE ‘K’

MANUFACTURING AND OTHER EXPENSES

RAW MATERIAL CONSUMED

MANUFACTURING EXPENSES

7,210.61

1,533.93

6,176.49

696.92

(Rs. in crore)

2007-08

2006-07

91,446.34

77,768.94

2,267.02
2,108.38
541.55
57.51
256.44
(362.78)
170.80
(1,025.81)

2,101.86
2,262.95
545.75
61.24
876.73
(6.31)
112.66
224.28

LAND DEVELOPMENT & CONSTRUCTION EXPENDITURE

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 Welfare and other amenities

4,013.11

1,230.02

6,179.16

2,133.96
304.12

2,132.63
254.12

300.08

204.14

2,738.16

2,590.89

166

Touching lives. Transforming India.

Schedules forming part of the Consolidated Profit and Loss Account

SCHEDULE ‘K’ (Contd.)

SALES AND DISTRIBUTION EXPENSES

Samples, Sales Promotion and Advertisement Expenses
Brokerage, Discount and Commission
Warehousing and Distribution Expenses
Sales Tax including defeased / Service Tax

ESTABLISHMENT EXPENSES

Insurance
Rent
Rates & Taxes
Other Repairs
Travelling Expenses
Payment to Auditors
Professional Fees
Loss on Sale / Discarding of Fixed Assets
General Expenses*
Wealth Tax
Charity and Donations

2007-08

2006-07

(Rs. in crore)

97.00
429.67
2,441.81
519.38

306.22
223.65
515.81
279.72
191.51
10.56
675.84
22.06
629.71
8.00
115.51

79.97
442.45
2,154.83
1,102.19

3,487.86

3,779.44

285.27
222.47
196.98
215.54
141.36
9.10
550.22
23.61
513.71
8.28
26.71

2,978.59
1,05,894.08

2,193.25
92,511.68

Less : Preoperative Expenses of Projects Under Commissioning (Net)

208.80

117.43

TOTAL

1,05,685.28

92,394.25

# Excise duty shown under expenditure represents the aggregate of excise duty borne by the Company and difference between excise duty

on the opening and closing stock of finished goods.

* Includes Diminution in value of investments Rs. 13.92 crore (Previous Year Rs. 80.07 crore) and investment written off Rs NIL (Previous

Year Rs. 13.00 crore).

SCHEDULE ‘L’

INTEREST AND FINANCE CHARGES

Debentures

Fixed Loans

Finance Charges on Leased Assets

Others

TOTAL

2007-08

319.10

375.83

0.63

390.96

1,086.52

(Rs. in crore)

2006-07

528.70

311.11

1.17

391.31

1,232.29

RELIANCE INDUSTRIES LIMITED 167

Significant Accounting Policies to the 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 on the following basis:

a) The financial statements of the Company and its subsidiary companies are 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 in accordance with Accounting Standard (AS) 21 - “Consolidated Financial Statements”.

In case of foreign subsidiaries, being non-integral foreign operations, revenue items are 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 exchange fluctuation reserve.

c) The difference between the cost of investment in the subsidiaries, over the net assets at the time of acquisition of shares in the

subsidiaries is recognised in the financial statements as Goodwill or Capital Reserve as the case may be.

d) The difference between the proceeds from disposal of investment in a subsidiary and the carrying amount of its assets less
liabilities as of the date of disposal is recognised in the consolidated statement of Profit and Loss account as exceptional item
being the profit or loss on disposal of investment in subsidiary.

e) 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.

f) 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.

In case of associates, where the Company directly or indirectly through subsidiaries holds more than 20% of equity, investments
in associates are accounted for using equity method in accordance with Accounting Standard (AS) 23 - “Accounting for investments
in associates in consolidated financial statements”.

h) The Company accounts for its share in the change in net assets of the associates, post acquisition, after eliminating unrealised
profits and losses resulting from transactions between the Company and its associates to the extent of its share, through its profit
and loss account to the extent such change is attributable to the associates’ profit and loss account and through its reserves for the
balance, based on available information.

The difference between the cost of investment in the associates and the share of net assets at the time of acquisition of shares in
the associates is identified in the financial statements as Goodwill or Capital Reserve as the case may be.

j) As far as possible, the consolidated financial statements are prepared using uniform accounting policies for like transactions and
other events in similar circumstances and are presented in the same manner as the Company’s separate financial statements.

Investments other than in subsidiaries and associates have been accounted as per Accounting Standard (AS) 13 “Accounting for
Investments”.

3. Other significant accounting policies

These are set out under “Significant Accounting Policies” as given in the Standalone Financial Statements of Reliance Industries
Limited.

168

Touching lives. Transforming India.

SCHEDULE ‘N’

NOTES ON ACCOUNTS TO CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT

The Subsidiary companies considered in the consolidated financial statements are:

Country of
incorporation

Proportion of
ownership interest

Name of the Subsidiaries

Reliance Industrial Investments and Holdings Limited

Reliance Ventures Limited

Reliance Strategic Investments Limited

Reliance Industries (Middle East) DMCC

Reliance Petroleum Limited

Reliance Jamnagar Infrastructure Limited

Reliance Retail Limited

Reliance Netherland B.V.

Reliance Haryana SEZ Limited

Reliance Fresh Limited (formerly Ranger Farms Limited)

Retail Concepts & Services (India) Limited

Reliance Retail Insurance Broking Limited

Reliance Dairy Foods Limited

Reliance Exploration & Production DMCC

Reliance Retail Finance Limited

RESQ Limited

Reliance Global Management Services Private Limited

Reliance Commercial Associates Limited (From 20th April, 2007)

Reliance Digital Retail Limited (From 28th April, 2007)

Reliance Financial Distribution and Advisory Services Limited (From 14th May, 2007)

RIL (Australia) Pty Limited (From 7th June, 2007)

Reliance Hypermart Limited (From 2nd July, 2007)

Recron (Malaysia) Sdn Bhd (From. 20th July, 2007)

Gapco Kenya Limited (From 1st August, 2007)

Gapco Rwanda SARL (From 1st August, 2007)

Gapco Tanzania Limited (From 1st August, 2007)

Gapco Uganda Limited (From 1st August, 2007)

Gapoil Tanzania Limited (From 1st August, 2007)

Gapoil Zanzibar Limited (From 1st August, 2007)

Gulf Africa Petroleum Corporation (Mauritius) (From 1st August, 2007)

Transenergy Kenya Limited (From 1st August, 2007)

Reliance Retail Travel & Forex Services Limited (From 7th September, 2007)

Reliance Brands Limited (From 12th October, 2007)

Reliance Footprint Limited (From 12th October, 2007)

Reliance Trends Limited (From 12th October, 2007)

India

U.A.E.

India

Netherlands

India

U.A.E.

India

Australia

India

Malaysia

Kenya

Rwanda

Tanzania

Uganda

Tanzania

Zanzibar

Mauritius

Kenya

India

100%

70.38%

100%

98.74%

100%

92.50%

98.74%

100%

98.74%

100%

98.74%

100%

98.74%

100%

76%

98.74%

RELIANCE INDUSTRIES LIMITED 169

SCHEDULE ‘N’ (Contd.)

Name of the Subsidiaries

Country of
incorporation

Proportion of
ownership interest

Reliance Wellness Limited (From 12th October, 2007)

Reliance Lifestyle Holdings Limited (From 23rd November, 2007)

Reliance Universal Ventures Limited (From 23rd November, 2007)

Delight Proteins Limited (From 27th November, 2007)

Reliance Autozone Limited (From 27th November, 2007)

Reliance F & B Services Limited (From 27th November, 2007)

Reliance Gems and Jewels Limited (From 27th November, 2007)

Reliance Integrated Agri Solutions Limited (From 27th November, 2007)

Strategic Manpower Solutions Limited (From 27th November, 2007)

Reliance Agri Products Distribution Limited (From 28th November, 2007)

Reliance Digital Media Limited (From 28th November, 2007)

Reliance Food Processing Solutions Limited (From 28th November, 2007)

Reliance Home Store Limited (From 28th November, 2007)

Reliance Leisures Limited (From 28th November, 2007)

Reliance Loyalty & Analytics Limited (From 28th November, 2007)

Reliance Retail Securities and Broking Company Limited (From 28th November, 2007)

Reliance Supply Chain Solutions Limited (From 28th November, 2007)

Reliance Trade Services Centre Limited (From 28th November, 2007)

Advantage Retail Private Limited (From 27th December, 2007)

Reliance International Exploration and Production, INC (From 15th January, 2008)

Peninsula Land Kenya Limited (From 15th March, 2008)

Abcus Retail Private Limited (From 17th March, 2008)

Bigdeal Retail Private Limited (From 17th March, 2008)

Reliance Neutraceuticals Private Limited (From 27th March, 2008)*

Reliance Petroinvestments Limited (From 27th March, 2008)*

Reliance Pharmaceuticals (India) Private Limited (From 27th March, 2008)*

Wavely Investments Limited (From 31st March, 2008)

* Earlier an Associate company, became a subsidiary during the year.

India

U.S.A.

Kenya

India

Cyprus

2. The significant associate companies considered in the consolidated financial statements are:

98.74%

100%

98.74%

100%

Name of the associate companies

Reliance Industrial Infrastructure Limited

Reliance Europe Limited

Reliance LNG Limited

Gujarat Chemical Port Terminal Company Limited

Reliance Commercial Dealers Private Limited

Country of

Proportion of

Incorporation

ownership interest

India

U.K.

India

45.43%

50.00%

45.00%

41.80%

50.00%

170

Touching lives. Transforming India.

SCHEDULE ‘N’ (Contd.)

3. The audited / unaudited consolidated financial statements of Reliance Netherland B.V., Reliance Industries (Middle East) DMCC,
Reliance Exploration and Production DMCC upto 31st December, 2007 and RIL (Australia) Pty Limited upto 31st March, 2008 have
been prepared in accordance with International Financial Reporting Standard. Differences in accounting policies of the Company and
its subsidiaries are not material and there are no material transactions from 1st January, 2008 to 31st March, 2008 in respect of
subsidiaries having financial year ended 31st December, 2007. There is no change in Company’s interest in these subsidiaries from 1st
January, 2008 till 31st March, 2008.

5. The Company has continued to adjust the foreign currency exchange differences on amounts borrowed for acquisition of fixed assets,
to the carrying cost of fixed assets in compliance with Schedule VI to the Companies Act, 1956 as per legal advice received, which is
at variance to the treatment prescribed in Accounting Standard (AS11) on “Effects of Changes in Foreign Exchange Rates” notified in
the Companies (Accounting Standards) Rules 2006. Had the treatment as per AS 11 been followed, the net profit after tax for the year
would have been higher by Rs. 16.02 crore.

6. Turnover includes Income from Services of Rs. 67.58 crore (Previous Year Rs. 66.65 crore).

7. Managerial Remuneration:

(a) Remuneration to Managing Director / Executive Directors

i)
Salaries
ii) Perquisites
iii) Sitting Fees (paid by erstwhile IPCL)
iv) Commission
v) Leave salary / Encashment
vi) Contribution to provident fund and Superannuation fund
vii) Provision for gratuity

(b) Commission to Non-Executive Directors

(Included under the head “ Payments to and Provisions for Employees”)

2007-08
1.32
1.63
-
64.13
0.04
0.33
0.08
67.53
1.85

(Rs in crore)
2006-07
1.30
1.53
0.04
43.59
0.28
0.32
0.08
47.14
1.00

8. A sum of Rs. 2.02 crore (net debit) [Previous Year Rs. 1.92 crore (net credit)] is included under Establishment expenses representing

Net Prior Period Items.

9. The deferred tax liability comprises of the following:

a. Deferred Tax Liability

Related to fixed assets
b. Deferred Tax Assets
Related to fixed assets
Disallowance under the Income Tax Act
Carried forward loss of subsidiary

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

8,605.43

7,304.09

0.35
326.37
480.37

-
297.84
15.72

807.09

7,798.34

313.56

6,990.53

RELIANCE INDUSTRIES LIMITED 171

SCHEDULE ‘N’ (Contd.)

10. EARNINGS PER SHARE (EPS)

i) Net Profit after tax (after adjusting Minority Interest)

as per Profit and Loss Account (Rs. in crore)

ii) Excess / (short) provision for tax of earlier years (Rs. in crore)

iii) Net profit attributable to equity shareholders (Rs. in crore)

iv) Net Profit before Exceptional Item (Rs. in crore)

2007-08

19,521.38

46.45

19,567.83

15,324.19

2006-07

12,074.83

0.51

12,075.34

12,074.83

v) Weighted Average number of equity shares used

1,45,36,48,601

as denominator for calculating EPS

vi) Basic and Diluted Earnings per share (Rs.):

vii) Basic and Diluted Earnings (before exceptional item) per share (Rs.):

viii) Basic and Diluted Earnings (Considering Taxation for Previous Years)

per share (Rs.):

ix) Face Value per equity share (Rs.):

11. FINANCIAL AND DERIVATIVE INSTRUMENTS

134.29

105.42

134.61

83.07

a) Derivative contracts entered into by the company and outstanding as on 31st March, 2008

(i) For hedging Currency and Interest Rate Related Risks:

Nominal amounts of derivative contracts entered into by the Company and outstanding as on 31st March, 2008 amount
to Rs 37,960.90 crore (Previous Year Rs. 20,095.29 crore).

Category wise break up is given below:

Sr. No. Particulars

Interest Rate Swaps (net)

Currency Swaps

Options (net)

Forward Contracts (net)

(ii) For hedging commodity related risks:

Category wise break up is given below:

As At
31st March, 2008

14,614.84

2,090.55

2,180.51

19,075.00

(Rs in crore)

As At
31st March, 2007

6,701.49

2,114.49

5,351.19

5,928.12

(in Kbbl)

Sr. No. Particulars

Net forward swaps

Futures

Spreads

Margin hedging

Net Options

As at31st March, 2008

As at 31st March, 2007

Petroleum
product sales

Crude oil
purchases

Petroleum
product sales

Crude oil
purchases

236

475

15,820

18,725

3,457

1,470

6,345

1,575

144

1,950

36,750

13,800

725

1,724

8,100

5,350

In accordance with principles of prudence and other applicable guidelines as per Accounting Standards notified by the Companies
(Accounting Standards) Rules, 2006 read with Schedule VI of the Companies Act, 1956 the Company has charged an amount of Rs
43.78 crore to the Profit and Loss Account in respect of derivative contracts outstanding as at 31st March, 2008.
Foreign currency exposure that are not hedged by derivative instruments as on 31st March, 2008 amount to Rs. 34,378.56 crore.
(Previous Year Rs. 18,742.50 crore)

172

Touching lives. Transforming India.

SCHEDULE ‘N’ (Contd.)

12. Segment Information:

The company has identified three reportable segments viz. Petrochemicals, Refining and Oil and Gas. 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.

(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”.

(i)

Primary Segment Information :

(Rs.in crore)

Particulars

Petrochemicals

Refining

Oil and Gas

Others

Unallocable

Eliminations

Total

2007-08

2006-07

2007-08 2006-07

2007-08

2006-07

2007-08 2006-07 2007-08 2006-07

2007-08

2006-07

2007-08

2006-07

Segment Revenue
External Turnover
Inter Segment Turnover

54,447.10
-

52,313.89
6.13

83,911.80
65,892.94
17,570.40 20,083.75

2,394.14
308.08

2,043.00
244.96

2,251.94
75.55

181.27
-

Gross Turnover

54,447.10

52,320.02 1,01,482.20

85,976.69

2,702.22

2,287.96

2,327.49

181.27

Less: Excise duty / Service
Tax recovered

4,786.89

4,299.28

1,069.91

2,360.61

1.52

1.10

Net Turnover

49,660.21

48,020.74 1,00,412.29

83,616.08

2,702.22

2,287.96 2,325.97 180.17

-
-

-
(17,954.03)

(20,334.84)

- 1,43,004.98 1,20,431.10
-
-

(17,954.03) (20,334.84)

1,43,004.98 1,20,431.10

5,858.32

6,660.99

(17,954.03) (20,334.84)

1,37,146.66 1,13,770.11

Segment Result before Interest
and Taxes
Less: Interest Expense
Add: Interest Income
Add: Exceptional Item
Profit Before Tax
Current Tax
Fringe Benefit Tax
Deferred Tax
Profit after Tax (before
adjustment for Minority
Interest)
Add: Share of (Profit) / Loss
transferred to Minority
Profit after Tax (after
adjustment for Minority
Interest)

Other Information
Segment Assets
Segment Liabilities
Capital Expenditure
Depreciation
Non Cash Expenses
other than depreciation

7,163.08
-
-
-
7,163.08
-
-
-

6,600.69
-
-
-
6,600.69
-
-
-

10,372.76
-
-
-
10,372.76
-
-
-

7,722.59
-
-
-
7,722.59
-
-
-

1,519.81
-
-
-
1,519.81
-
-
-

1,280.61
-
-
-
1,280.61
-
-
-

124.80
-
-
-
124.80
-
-
-

19.31
-
-
-
19.31
-
-
-

(262.78)
1,086.52
446.18
4,733.50
3,830.38
2,572.08
49.58
865.93

(27.37)
1,232.29
283.49
-
(976.17)
1,626.46
40.55
905.28

7,163.08

6,600.69

10,372.76

7,722.59

1,519.81

1,280.61

124.80

19.31

342.79 (3,548.46)

(0.67)

(0.16)

(2.00)

0.81

0.25

7,162.41

6,600.53 10,370.76

7,722.59

1,519.81

1,280.61

125.61

19.56

342.79 (3,548.46)

40,463.42
8,539.17
228.84
2,411.40

39,898.96
7,250.10
886.43
2,628.07

74,989.83
12,680.80

60,501.22
9,844.82
7,991.02 18,763.37
1,842.14
1,928.40

28,817.81
2,536.79
14,413.09
548.68

12,500.00
1,826.00
5,725.00
408.30

9,755.46
470.54
1,430.70
71.44

7,276.08 20,930.41 12,353.91
877.11
2,639.39
1,171.33
2,374.17
8.97
44.28

453.60
3,616.26
11.97

13.92

93.60

-
-
-

-
-
-
-

-
-
-

-
-
-
-

18,917.67
1,086.52
446.18
4,733.50
23,010.83
2,572.08
49.58
865.93

15,595.83
1,232.29
283.49
-
14,647.03
1,626.46
40.55
905.28

19,523.24

12,074.74

(1.86)

0.09

19,521.38

12,074.83

- 1,74,956.93 1,32,530.17
20,251.63
-
30,162.39
-
4,899.45
-

26,866.69
26,437.82
5,004.20

13.92

93.60

(ii) As per Accounting Standard (AS) 17 “Segment Reporting”, the Company has reported segment information on consolidated basis

including businesses conducted through its subsidiaries and associates.

(iii) 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, Poly Butadiene Rubber, Polyester Yarn, Polyester Fibres, Purified
Terephthalic Acid, Paraxylene, Ethylene Glycol, Olefins, Aromatics, Butadiene, Linear Alkyl Benzene, Polyethylene Terephthalate,
Acrylonitrile and Caustic Soda.

— The Refining segment includes production and marketing operations of Petroleum products.

— The Oil and Gas segment includes exploration, development and production of crude oil and natural gas.

— The businesses, which were not reportable segments during the year, have been grouped under the “Others” segment. This mainly

comprises of:

* Textile
* Retail Business
* SEZ development

SCHEDULE ‘N’ (Contd.)

(iv) Secondary Segment Information:

Segment Revenue – External Turnover

- Within India

- Outside India

Total Revenue

Segment Assets

- Within India

- Outside India

Total Assets

Segment Liability

- Within India

- Outside India

Total Liability

4. Capital Expenditure

- Within India

- Outside India

Total Expenditure

RELIANCE INDUSTRIES LIMITED 173

(Rs. in crore)

2007-08

2006-07

58,568.99

84,435.99

54,016.47

66,414.63

1,43,004.98

1,20,431.10

1,70,736.56

1,30,953.36

4,220.37

1,576.81

1,74,956.93

1,32,530.17

25,581.76

1,284.93

26,866.69

19,609.25

642.38

20,251.63

25,808.10

29,657.13

629.72

505.26

26,437.82

30,162.39

13. PROJECT DEVELOPMENT EXPENDITURE

(in respect of Projects upto 31st March, 2008, included under Capital work in progress)

Opening Balance

2007-08

1,071.05

(Rs. in crores)

2006-07

492.72

Add :

Project Development Expenditure transferred from

208.80

Profit and Loss Account

Expenses on Projects under construction

Interest Capitalised

295.01

1,659.17

Less :

Project Development Expenses Capitalised during the year

437.13

Transfer to Inventory*

51.18

Closing Balance

117.43

377.10

813.08

729.28

2,162.98

3,234.03

488.31

2,745.72

1,307.61

1,800.33

729.28

1,071.05

*The expenditure during development period was classified as “Project Development Expenditure” pending allocation under Capital
work in progress. However in consideration of the opinion of the Expert Advisory Committee of the Institute of Chartered Accountants
of India regarding accounting for Property Development Expenditure and Income by the Developer, two subsidiaries of the company
have considered the Project Development Expenditure as inventory and classified it as inventory under current assets except for
expenditure in connection with the assets which the company intends to operate itself. Accordingly, the expenditure incurred
amounting to Rs. 6.91 crore in Reliance Jamnagar Infrastructure Limited and Rs. 44.27 crore in Reliance Haryana SEZ Limited have
been reclassified from Fixed Assets / Capital Work in Progress to Inventory.

174

Touching lives. Transforming India.

SCHEDULE ‘N’ (Contd.)

14. ADDITIONAL INFORMATION

(A) Estimated amount of contracts remaining to be executed on

Capital accounts and not provided for:

(i)

In respect of joint ventures

(ii)

In respect of others

(B) Uncalled liability on partly paid shares / units

(i) Outstanding guarantees furnished to Banks and Financial Institutions

including in respect of Letters of credit

(a)

In respect of joint ventures

(b)

In respect of others

(ii) Guarantees to Banks and Financial Institutions against credit facilities

extended to third parties

(a)

In respect of joint ventures

(b)

In respect of others

(iii) Liability in respect of bills discounted with Banks

(Including third party bills discounting)

(a)

In respect of joint ventures

(b)

In respect of others

(iv) Claims against the Company / disputed liabilities not acknowledged as debts

(a)

In respect of joint ventures

(b)

In respect of others

(v) Performance Guarantees

(a)

In respect of joint ventures

(b)

In respect of others

(vi) Sales tax deferral liability assigned

(Rs. in crore)

As at
31st March, 2008

As at
31st March, 2007

9,889.25

14,182.64

36.00

12,741.80

21,670.11

150.00

79.26

8,239.56

36.40

12,500.77

401.62

501.63

43.22

837.02

278.95

5,441.80

168.90

2,460.93

46.83

1,086.44

92.54

5,931.48

(D) The Income-Tax assessments of the Company have been completed up to Assessment Year 2006-07. The disputed demand
outstanding up to the said Assessment Year is Rs. 1,421.54 crore. Based on the decisions of the Appellate authorities and the
interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted
or substantially reduced and accordingly no provision has been made.

RELIANCE INDUSTRIES LIMITED 175

SCHEDULE ‘N’ (Contd.)

15. Related Party Disclosures :

(i) List of related parties with whom transactions have taken place and relationships:

Sr No. Name of the Related Party

Relationship

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

25.

26.

27.

28.

29.

Reliance Industrial Infrastructure Limited

Reliance Europe Limited

Reliance Utilities and Power Limited

Reliance Utilities Limited

Reliance Ports and Terminals Limited

Reliance LNG Limited

Reliance Gas Transportation Infrastructure Limited

Gujarat Chemical Port Terminal Company Limited

Indian Vaccines Corporation Limited

Reliance Commercial Trading Private Limited

Shinano Retail Private Limited

Teesta Retail Private Limited

Priyash Commercial Private Limited

Pusti Commercial Private Limited

Delta Resources Limited

Indiawin Sports Trading Private Limited

Reliance Commercial Dealers Private Limited

Delta Hydrocarbons S. A., Luxembourg

Growcity Trading Private Limited

Sixty Reliance Fashion India Private Limited

Shri. Mukesh D. Ambani

Shri. Nikhil R. Meswani

Shri. Hital R. Meswani

Shri. H. S. Kohli

Dhirubhai Ambani Foundation

Jamnaben Hirachand Ambani Foundation

Hirachand Govardhandas Ambani Public Charitable Trust

HNH Trust and HNH Research Society

Jamnaben Hirachand Ambani Education Trust

Associates

Key Managerial Personnel

Enterprises over which Key
Managerial Personnel are able to
exercise significant influence

176

Touching lives. Transforming India.

SCHEDULE ‘N’ (Contd.)

(ii) Transactions during the year with related parties:

Sr. Nature of Transactions
No. (Excluding reimbursements)

Associates

Key Managerial
Personnel

(Rs. in crore)

Others

Total

A) Fixed Assets / Capital Work in Progress

Assets Purchased during the year

Assets sold during the year

Investments

Balance as at 1st April, 2007

Upon Amalgamation

106.28

(34.76)

37.36

106.28

(34.76)

37.36

(0.02) -

(0.02)

56.00

(24.97)

- -

56.00

(24.97)

(125.08) -

(125.08)

Purchased / adjusted during the year

100.06 -

100.06

Sold / redemption during the year

- -

(4.60)

Diminution in the value of Investment

- -

(93.50) -

(93.50)

Balance as at 31st March, 2008

151.34

(56.00) -

(56.00)

C) Sundry Debtors as at 31st March, 2008

40.73 -

40.73

D) Loans & Advances

Balance as at 1st April, 2007

Upon Amalgamation

Given during the year

Returned during the year

(8.38) -

(8.38)

6,634.41 -

6,634.41

(3,662.80) -

(3,662.80)

- -

(1.91) -

(1.91)

1,824.66 -

1,824.66

(3,032.50) -

(3,032.50)

4,859.19

(62.80) -

(62.80)

Balance as at 31st March, 2008

3,599.88 -

3,599.88

(6,634.41) -

(6,634.41)

E) Sundry Creditors

Balance as at 31st March, 2008

159.04 -

159.04

(156.86)

RELIANCE INDUSTRIES LIMITED 177

SCHEDULE ‘N’ (Contd.)

Sr. Nature of Transactions
No. (Excluding reimbursements)

Associates

Key Managerial
Personnel

(Rs. in crore)

Others

Total

F) Turnover

G) Other Income

H) Expenditure

Interest Paid

43.44 -

43.44

(209.64) -

(209.64)

12.58 -

12.58

(16.06) -

(16.06)

- -

(0.06) -

(0.06)

Electric Power, Fuel and Water

318.81 -

318.81

Rent

Professional Fees

Charter Hire Charges

Hire Charges

Donations

(318.37) -

(318.37)

84.00 -

84.00

(84.00) -

(84.00)

14.92 -

14.92

(16.93) -

(16.93)

8.88 -

8.88

(8.86) -

(8.86)

83.48 -

83.48

(161.81) -

(161.81)

- -

82.21 82.21

- -

(13.19)

Warehousing and Distribution Charges

1,057.99 -

1,057.99

Product Handling Charges

General Expenses

Payment to Key Managerial Personnel

I) Guarantees Issued

Financial Guarantees

Performance Guarantees

Note : Figures in bracket represents previous year’s amount.

(871.89) -

(871.89)

93.36 -

93.36

(91.46) -

(91.46)

10.11 -

- 10.11

(19.63) -

(19.63)

- 67.53

67.53

- (47.14)

(47.14)

360.02 -

360.02

(130.94) -

(130.94)

137.68 -

137.68

(21.07) -

(21.07)

178

Touching lives. Transforming India.

SCHEDULE ‘N’ (Contd.)

Disclosure in Respect of Material Related Party Transactions:
1.

Fixed Asset purchased include from Reliance Ports and Terminals Limited Rs. 81.15 crore (Previous Year Rs. NIL); Reliance Europe
Limited Rs. 1.39 crore (Previous Year Rs.11.13 crore); Reliance Industrial Infrastructure Limited Rs. NIL (Previous Year Rs. 23.63
crore); Reliance Utilities Limited Rs. 23.74 crore (Previous Year NIL). Fixed Asset sold to Reliance Utilities Limited Rs. 26.24 crore
(Previous Year NIL); Reliance Ports and Terminals Limited Rs. 11.12 crore (Previous Year NIL).
Purchase of investments includes subscription to equity shares of Delta Resources Limited Rs. 69.45 crore; Delta Hydrocarbons S.A.,
Luxembourg Rs. 25.49 crore; Reliance Commercial Dealers Private Limited Rs. 5.00 crore; Indiawin Sports Trading Private Limited
Rs. 0.06 crore. Sold / redemption include sale of equity shares of Reliance Petroinvestments Limited Rs. NIL (Previous Year Rs. 4.05
crore). Diminution in value of investments recognised Rs. NIL (Previous Year Rs. 90.00 crore) in Gujarat Chemical Port Terminal
Company Limited and Rs. NIL (Previous Year Rs. 3.50 crore) in Indian Vaccines Corporation Limited.
Sundry Debtors balances include from Reliance Ports and Terminals Limited Rs. 4.24 crore (Previous Year Rs. 5.36 crore); Reliance
Utilities Limited Rs. 36.46 crore (Previous Year NIL); Reliance Industrial Infrastructure Limited Rs. NIL (Previous Year Rs. 2.99
crore).

4. Loans and Advances given include to Reliance Commercial Dealers Private Limited Rs. 58.25 crore; Delta Resources Limited Rs. 65.29
crore; Indiawin Sports Private Limited Rs. 20.70 crore; Shinano Retail Private Limited Rs. 1,656.06 crore; Gujarat Chemical Port
Terminal Company Limited Rs. 22.25 crore (Previous Year Rs. NIL); Reliance Europe Limited Rs. 1.49 crore (Previous Year Rs. NIL).
Deposits given to Reliance Ports and Terminals Limited Rs. 0.62 crore (Previous Year Rs. 150.33 crore); Reliance Gas Transportation
Infrastructure Limited Rs. NIL (Previous Year Rs. 2,000.00 crore); Reliance Utilities Limited Rs. NIL (Previous Year Rs. 150.00
crore); Reliance Petroinvestments Limited Rs. NIL (Previous Year Rs. 732.17 crore). Loans and Advances repaid include from
Reliance Commercial Dealers Private Limited Rs. 5.00 crore; Shinano Retail Private Limited Rs. 1,656.06 crore; Reliance
Petroinvestments Limited Rs. 3197.17 (Previous Year Rs. 62.80 crore). Balances outstanding at year end include Reliance Industrial
Infrastructure Limited Rs. 35.00 crore (Previous Year Rs. 35.00 crore); Reliance Gas Transportation Infrastructure Limited Rs.
2,000.00 crore (Previous Year Rs. 2,000.00 crore); Reliance Ports and Terminals Limited Rs. 1,050.95 crore (Previous Year Rs.
1,050.33 crore); Reliance Utilities and Power Limited Rs. 200.00 crore (Previous Year Rs. 200.00 crore) and Reliance Utilities Limited
Rs. 150.00 crore (Previous Year Rs. 150.00 crore); Gujarat Chemical Port Terminal Company Limited Rs. 22.25 crore (Previous Year
Rs. NIL); Reliance Commercial Dealers Private Limited Rs. 53.25 crore; Delta Resources Limited Rs. 65.29 crore; Indiawin Sports
Trading Private Limited Rs. 20.70 crore; Reliance Europe Limited Rs. 1.49 crore (Previous Year Rs. NIL); Reliance Petroinvestments
Limited Rs. NIL (Previous Year Rs. 3,197.17 crore).
Sundry Creditors balances include Reliance Ports and Terminals Limited Rs. 109.15 crore (Previous Year Rs. 104.01 crore); Gujarat
Chemicals Port Terminal Company Limited Rs. 21.25 crore (Previous Year Rs. 13.36 crore); Reliance Utilities and Power Limited Rs.
23.85 crore (Previous Year Rs. 32.26 crore); Reliance Europe Limited Rs. 3.75 crore (Previous Year Rs. 4.09 crore).

6. Turnover include to Reliance Gas Transportation Infrastructure Limited Rs. 10.63 crore (Previous Year Rs. 194.85 crore); Reliance
Utilities Limited Rs. 17.10 crore (Previous Year Rs. 4.89 crore); Reliance Ports and Terminals Limited Rs. 15.71 crore (Previous Year
Rs. 6.84 crore).

7. Other Income include dividend received from Reliance Industrial Infrastructure Limited Rs. NIL (Previous Year 4.89 crore). Interest
received from Reliance Industrial Infrastructure Limited Rs. 2.45 crore (Previous Year Rs. 2.45 crore). Miscellaneous income from
Reliance Ports and Terminals Limited Rs. 8.56 crore (Previous Year Rs. 8.54 crore). Guarantee Commission from Reliance Europe
Limited Rs. 1.22 crore (Previous Year NIL).

8. Expenditure include Electricity, Power, Fuel and Water charges paid to Reliance Utilities and Power Limited Rs. 318.81 crore
(Previous Year Rs. 318.37 crore). Rent paid to Reliance Ports and Terminals Limited Rs. 84.00 crore (Previous Year Rs. 84.00 crore).
Professional Fees paid to Reliance Europe Limited Rs. 14.92 crore (Previous Year Rs. 16.93 crore). Charter Hire Charges paid to
Reliance Europe Limited Rs. 8.88 crore (Previous Year Rs. 8.86 crore). Hire Charges paid to Gujarat Chemical Port Terminal
Company Limited Rs. 62.13 crore (Previous Year Rs. 97.55 crore); Reliance Ports and Terminals Limited Rs. NIL (Previous Year Rs.
50.00 crore) and Reliance Industrial Infrastructure Limited Rs. 21.35 crore (Previous Year Rs. 14.26 crore). Donation to Dhirubhai
Ambani Foundation Rs. 14.55 crore (Previous Year Rs. 8.28 crore); Jamnaben Hirachand Ambani Foundation Rs. 66.06 crore
(Previous Year Rs. 3.69 crore). Warehousing and Distribution Charges paid to Reliance Ports and Terminals Limited Rs. 1,056.93
crore (Previous Year Rs. 871.68 crore). Product Handling Charges paid to Reliance Ports and Terminals Limited Rs. 93.36 crore
(Previous Year Rs. 91.46 crore). General expenses includes to Reliance Industrial Infrastructure Limited Rs. 10.11 crore (Previous
Year Rs. 10.01 crore) and Reliance Ports and Terminals Limited Rs. NIL (Previous Year Rs. 9.62 crore). Payment to Key Managerial
Personnel includes to Shri Mukesh D. Ambani Rs. 44.02 crore (Previous Year Rs. 30.46 crore); Shri Nikhil R. Meswani Rs. 11.13 crore
(Previous Year Rs. 7.77 crore); Shri Hital R. Meswani Rs. 11.12 crore (Previous Year Rs. 7.76 crore); Shri H. S. Kohli Rs. 1.26 crore
(Previous Year Rs. 1.15 crore).
Financial guarantees include in respect of Gujarat Chemical Port Terminal Company Limited Rs. 19.00 crore (Previous Year Rs. 44.00
crore) and Reliance Europe Limited Rs. 341.02 crore (Previous Year Rs. 86.94 crore). Performance Guarantee include in respect of
Reliance Gas Transportation Infrastructure Limited Rs. 61.49 crore (Previous Year Rs. 10.00 crore); Reliance Ports and Terminals
Limited Rs. 71.95 crore (Previous Year Rs. 7.03 crore); Reliance Industrial Infrastructure Limited Rs. 4.04 crore (Previous Year Rs.
4.04 crore).

RELIANCE INDUSTRIES LIMITED 179

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

SCHEDULE ‘N’ (Contd.)

16. DETAILS OF INVESTMENTS

A .

INVESTMENTS IN ASSOCIATES
LONG TERM INVESTMENTS
Other Investments
In Equity Shares - Quoted, fully paid up

68,60,064 Reliance Industrial Infrastructure Limited of Rs. 10 each

86.23

(69,80,000)

86.23

In Equity Shares - Unquoted, fully paid up

77.68

11,08,500 Reliance Europe Limited of Sterling Pound 1 each

25.97

21.73

(11,08,500)

- Reliance Petroinvestments Limited of Rs. 10 each

(44,38,777)

22,500 Reliance LNG Limited of Rs. 10 each

(22,500)

5,000 Priyash Commercial Private Limited of Rs. 10 each

(-)

5,000 Pusti Commercial Private Limited of Rs. 10 each

(-)

5,000 Shinano Retail Private Limited of Rs. 10 each

(-)

5,000 Teesta Retail Private Limited of Rs. 10 each

(-)

5,000 Reliance Commercial Trading Private Limited

(-) of Rs. 10 each

50,00,000 Reliance Commercial Dealers Private Limited

(-) of Rs. 10 each

10,40,000 Delta Hydrocarban S.A. Luxembourg

(-)

60,000 India Wins Sports Trading Private Limited

(-) of Rs. 10 each

7,12,47,314 Delta Resources Limited of KES 10 each

(-)

0.02

0.01

4.89

25.49

0.06

69.45

62,63,125 Indian Vaccines Corporation Limited of Rs. 10 each

0.90

(62,63,125)

12,04,20,000 Gujarat Chemical Port Terminal Company

(12,04,20,000) Limited of Rs. 10 each

25,000 Growcity Trading Private Limited of Rs. 10 each

(-)

(Rs. 2,50,000; Previous Year NIL)

5,000 Sixty Reliance Fashion India Private Limited of

(-) Rs. 10 each

33.22

0.03

0.01

160.09

109.18

0.02

0.90

31.22

163.05

Total Investment in Associates (A)

246.32

240.73

180

Touching lives. Transforming India.

SCHEDULE ‘N’ (Contd.)

DETAILS OF INVESTMENTS (Contd.)

INVESTMENTS IN OTHERS
LONG TERM INVESTMENTS
Government and other Securities - Unquoted

6 Years National Savings Certificate
(Deposited with Sales Tax Department
and other Govt. Authorities)

Trade Investments
In Equity Shares - Unquoted, fully paid-up

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

0.02

0.01

0.02

0.01

1,00,00,000 Petronet India Limited of Rs. 10 each

10.00

(1,00,00,000)

25 The Colaba Central Co-operative Consumer’s Wholesale

(25)

and Retail Stores Limited (Sahakari Bhandar) of
Rs. 200 each (Rs. 5,000; Previous Year Rs. 5,000)

10.00

In Preference Share - Unquoted, fully paid-up

10% Non-Cummulative Redeemable Preference Shares of

93.41

(4,67,050 ) Reliance Chemical Private Limited of Rs. 10 each
13,44,700 10% Non-Cumulative optionally convertible preference
shares of Reliance Chemical Private Limited of Rs. 10 each

(-)

Other Investments
In Equity Shares - Quoted, fully paid-up

8,043 Portland General Electric Company

(8,043) Common Stock Equity

7,17,765 State Bank of India of Rs. 10 each

( -)

25,00,000 Industrial Development Finance Corporation

(-) Limited of Rs. 10 each

672.35

0.78

166.08

39.28

206.14

In Equity Shares - Unquoted, fully paid-up

150 Reliance Aromatics & Petrochemicals Private Limited

(150) of Rs.10 each (Rs. 1,500; Previous Year Rs. 1,500)

185 Reliance Energy & Project Development Private Limited

(185) of Rs. 10 each (Rs. 1,850; Previous Year Rs. 1,850)

1,800 Sharanya Trading Private Limited of Rs. 10 each

(-)

(Rs. 18,000; Previous Year NIL)

1,500 Reliance Research & Development Services Private

(-) Limited of Rs. 10 each (Rs. 15,000; Previous Year NIL)

6 Reliance KG Basin E&P Private

(-) Limited of Rs. 10 each (Rs. 60; Previous Year NIL)
6 Reliance KG Exploration & Production Private
(-) Limited of Rs. 10 each (Rs. 60; Previous Year NIL)

6 Reliance Krishna Godavari Exploration & Production Private

(-) Limited of Rs. 10 each (Rs. 60; Previous Year NIL)

Trevira UK Limited
Trevira Italia S.r.l.

-
2.25

93.41

682.35

103.41

0.78

0.21
2.25

RELIANCE INDUSTRIES LIMITED 181

SCHEDULE ‘N’ (Contd.)

DETAILS OF INVESTMENTS (Contd.)

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

Trevira Iberica S.L.
Trevira France S.a.r.l.

Trevira Polska Sp. z o.o.

Industriepark Werk Bobingen GmbH & Co. KG

Industriepark Werk Bobingen Verwaltungs GmbH
Treuhandgemeinschaft Deutsche Chemiefaser GmbH,

0.08
-

0.14

11.73

0.07
0.01

14.28

0.08
0.44

0.14

11.37

0.07
0.01

14.57

In Debentures Quoted, fully paid up

2,000 Citi Corpration Finance (India) Limited - Non

200.00

(-) Convertible Redeemable Debentures

of Rs. 10,00,000 each

5,000 DSP Merryl Lynch Capital Limited - Secured
(-) Guaranteed, Redeemable Non Convertible

Debentures of Rs.1,00,000 each

7,500 DSP Merryl Lynch Capital Limited - Secured
(-) Guaranteed, Non Convertible Debentures of

Rs.1,00,000 each

In Others

400 Peninsula Realty Fund of Rs. 1,00,000 each

50.00

75.00

325.00

545.42

4.00

15.35

88 Pass Through Certificates (PTC) issued by Indian

5.33

11.47

(88) Residential MBS Trust

Interest in a Beneficiary Trust

Total Long Term Investments

CURRENT INVESTMENTS

Other Investments

In Goverment Securities - Quoted (Refer Note 1)

11.99% GOI 2009

7.99% GOI 2017

8.2% GOI 2022

In Treasury Bills - Quoted

182 Days Treasury Bills (Refer Note 2)

364 Days Treasury Bills (Refer Note 1)

In Certificate of Deposit with Schedule
Banks - Quoted

1,654.96

2,892.08

1,654.96

1,785.20

150.45

80.00

230.45

23.45

0.93

24.38

1,547.49

27.03

21.94

18.75

40.69

182

Touching lives. Transforming India.

SCHEDULE ‘N’ (Contd.)

DETAILS OF INVESTMENTS (Contd.)

In Public Financial Institution &
Corporate Bonds - Quoted

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

450 Bank of India
(-)
600 Citi Financial Consumer Finance India Limited
(-)

1,500 EXIM Bank

(-)

45.06

60.00

148.94

2,000 Housing Development Finance Corporation Limited

200.09

(-)
500 Indian Railway Finance Corporation Limited
(-)
500 LIC Housing Finance Limited
(-)

50.10

50.00

1,850 National Bank For Agricultural And Rural Development

185.20

(-)

3,200 Power Finance Corporation Limited

(-)
100 Punjab National Bank
(-)
250 State Bank of Mysore
(-)
250 State Bank of Bikaner & Jaipur
(-)
700 State Bank of India
(-)

Collateral Borrowing & Lending Obligation

In Units - Unquoted

3,00,00,000 ABN AMRO Fixed Term Plan

( -) of Rs. 10 per unit - Growth

2,54,57,322 ABN AMRO Flexible Short Term Plan
( -) of Rs. 10 per unit - Dividend

5,12,41,031 ABN AMRO Money Plus Institutional Plan

( -) of Rs. 10 per unit - Dividend

- ABN AMRO Fixed Term Plan

(20,12,86,344) of Rs.10 per unit - Dividend

- Birla Fixed Term Plan of Rs. 10 per unit - Dividend

( 7,50,00,000)

- Birla Cash Plus - Institutional Premium Plan

(78,08,443) of Rs. 10 per unit - Daily Dividend Reinvestment

316.12

10.01

24.75

25.00

71.71

1,186.98

-
-

30.00

25.46

51.24

10,76,38,459 Birla Cash Institutional Premium Plus of

139.00

(15,10,14,313) Rs. 10 per unit - Growth

- Birla Cash Plus Plan of Rs. 10 per unit - Dividend

(12,47,82,000)

189.07
189.07

201.29

75.00

7.82

180.00

125.02

RELIANCE INDUSTRIES LIMITED 183

SCHEDULE ‘N’ (Contd.)

DETAILS OF INVESTMENTS (Contd.)

3,04,65,268 Birla Cash Plus Plan of Rs. 10 per unit -

(1,39,99,566) Dividend

5,00,00,000 Birla Fixed Term Plan of Rs.10 per unit -

(-) Growth

5,12,18,812 BSL Interval Fund -

(-) of Rs. 10 per unit - Dividend

10,03,128 DSP Merril Lynch Cash Plus

(-) of Rs. 1,000 per unit - Dividend

As at
31st March, 2008

30.52

50.00

51.22

100.32

(Rs. in crore)

As at
31st March, 2007

14.03

1,50,000 DSP Merril Lynch Fixed Term Institutional Plan

15.00

(-) of Rs. 1,000 per unit - Growth

- DSP Merill Lynch Fixed Term Plan

(5,03,001) of Rs. 1,000 per unit - Dividend

10,01,262 DSP Merrill Lynch Liquid Plus
(-) of Rs. 1,000 per unit - Dividend

4,00,00,000 DWS Fixed Term Institutional Plan
(-) of Rs. 10 per unit - Growth

100.18

40.00

50.30

9,93,177 HDFC India Real Estate of Rs. 1,000 per unit

106.42

96.42

(8,93,177)

2,50,00,000 HDFC Fixed Maturity Plan
(-) of Rs. 10 per unit - Dividend

21,85,14,981 HDFC Cash Management Saving Plan
(-) of Rs.10 per unit - Dividend

10,00,00,000 HSBC Fixed Term Institutional Plan
(5,00,00,000)

of Rs. 10 per unit - Growth

2,56,30,375 HSBC Interval Fund

( -) of Rs. 10 per unit - Dividend

2,40,00,000

ICICI Prudential Fixed Maturity Plan of

(1,00,00,000) Rs. 10 per unit - Growth

23,94,80,208 ICICI Prudential Fixed Maturity Plan -

(15,19,23,500) of Rs. 10 per unit - Dividend

ICICI Prudential lnstitutional Liquid Plan of

(5,87,48,799) Rs. 10 per unit - Growth

17,39,88,402 ICICI Prudential Institutional Liquid Plan -

(-) of Rs. 10 each - Dividend

19,24,81,432 ICICI Prudential Flexible Income Plan -
(-) of Rs. 10 per unit - Dividend

6,00,00,000

ICICI Prudential Interval Fund -

(-) of Rs. 10 per unit - Growth

ICICI Prudential Monthly Income Plan

(11,31,53,419) of Rs. 10 per unit - Dividend

ICICI Prudential Equities & Derivatives Fund

(10,00,00,000) of Rs. 10 per unit - Dividend

25.00

232.42

100.00

25.63

24.00

239.54

174.00

203.52

60.00

50.00

10.00

151.92

62.41

129.58

100.00

184

Touching lives. Transforming India.

SCHEDULE ‘N’ (Contd.)

DETAILS OF INVESTMENTS (Contd.)

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

15,69,039 ICICI Prudential Liquid Plan
(-) of Rs. 10 per unit - Dividend

38,11,897 ICICI Prudential Institutional Liquid Plan

(-) of Rs. 10 each - Dividend

ICICI Prudential Liquid Plan

(2,35,55,824) of Rs. 10 each - Dividend

13,50,00,000 ING Vysya Fixed Maturity Fund
(6,00,00,000) of Rs. 10 per unit - Growth

2,50,00,000 ING Vysya Fixed Maturity Institutional Plan

( -) of Rs. 10 per unit - Dividend

50,000 JM Financial Property Fund of Rs. 10,000 each

(50,000)

(Rs. 6,000 paid-up)

-
(5,04,76,399)

JM Fixed Maturity Fund of Rs. 10 per unit - Dividend

- Kotak Liquid Fund - Institutional Premium Plan

(1,98,14,143) of Rs. 10 per unit - Growth

- Kotak Liquid Fund of Rs.10 per unit - Dividend

1.57

3.81

135.00

25.00

30.00

23.56

60.00

10.00

50.48

30.00

25.02

(2,04,52,761)

2,50,00,000 Kotak Fixed Maturity Plan
(-) of Rs. 10 per unit - Growth

- Kotak Fixed Maturity Plan

(7,56,89,000) of Rs. 10 per unit - Dividend

- LIC Mutual Fund Fixed Maturity Plan of

(6,09,08,036) Rs. 10 per unit - Dividend

4,40,27,946 Lotus India Liquid Plus Plan
( -) of Rs.10 per unit - Dividend

6,30,00,000 Lotus India Fixed Maturity Institutional Plan

( -) of Rs.10 per unit - Growth

2,50,00,000 Lotus India Fixed Maturity Plan

( -) of Rs.10 per unit - Dividend

49,99,000 Lotus India Quaterly Interval Fund Plan

( -) of Rs. 10 per unit - Dividend

25.00

44.10

63.00

25.00

5.00

75.69

60.91

4,96,686 Mirae Asset Liquid Fund Super Institutional Plan

50.00

(-) of Rs. 1,000 each - Growth

10,04,092 Mirae Asset liquid Plus Plan

( -) of Rs. 1,000 per unit - Dividend

100.41

- Principal Floating Rate Fund Short Term Maturity Plan

(17,13,28,222) of Rs.10 per unit - Growth

- Principal Floating Rate Fund Short Term Maturity Plan -

(15,01,02,055) Dividend

200.00

150.11

5,73,75,627 Principal Cash Management Institutional Plan

59.75

80.89

(7,76,71,298 ) of Rs. 10 per unit - Growth

RELIANCE INDUSTRIES LIMITED 185

SCHEDULE ‘N’ (Contd.)

DETAILS OF INVESTMENTS (Contd.)

As at
31st March, 2008

As at
31st March, 2007

(Rs. in crore)

- Principal PNB Fixed Maturity Plan

(4,50,00,000 ) of Rs.10 per unit

2,50,00,000 Principal PNB Fixed Maturity Plan
( -) of Rs. 10 per unit - Dividend

2,50,00,000 Principal PNB Fixed Maturity Plan
( -) of Rs. 10 per unit - Growth

85,654 Standard Chartered Liquidity Manager

(7,11,119) of Rs. 1,000 each - Dividend

6,00,00,000 Standard Chartered Fixed Maturity Plan

(-) of Rs. 10 per unit - Growth

2,50,00,000 Standard Chartered Fixed Maturity Plan
(-) of Rs. 10 per unit - Dividend

7,72,20,635 Standard Chartered Grindlays Floating Rate Plan

(-) of Rs. 10 per unit - Dividend

- Standard Chartered Liquidity Manager Plus Plan

(6,60,049) of Rs.1,000 per unit - Dividend

- Standard Chartered Fixed Maturity Plan

(9,62,16,200) of Rs. 10 per unit - Dividend

2,50,00,000 SBI Debt Fund

(8,02,46,850) of Rs. 10 per unit - Dividend

- SBI Debt Fund of Rs. 10 per unit - Growth

(2,50,00,000)

5,00,00,000 Sundaram BNP Paribas Fixed Term Plan

( -) of Rs.10 per unit - Growth

2,50,00,000 Sundaram BNP Paribas Fixed Term Plan

(2,52,43,250) of Rs. 10 per unit - Dividend

5,66,59,324 SBI Premier Liquid Fund of

(-) Rs.10 per unit - Dividend

3,58,56,822 SBI Premier Liquid Super Institutional Plan

(-) of Rs. 10 each - Growth

6,25,354 Templeton India Treasury Management Account

Super Institutional Plan of Rs. 1,000 each - Growth

25.00

8.57

60.00

25.00

77.26

25.00

50.00

25.00

56.84

46.00

75.00

- Tata Fixed Horizon Fund of Rs.10 per unit - Dividend

(10,62,98,500)

6,00,00,000 Tata Fixed Horizon Fund of Rs. 10 per unit - Growth

60.00

(2,00,00,000)

2,49,74,276 Tata Fixed Income Portfolio Fund

(-) of Rs. 10 per unit - Dividend

4,77,54,926 Tata Dynamic Bond Fund

(-) of Rs. 10 per unit - Dividend

- UTI Liquid Cash Plan

(2,02,690) of Rs. 1,000 each - Growth

25.00

50.16

20,000 Urban Infrastructure Opportunities Fund of

200.00

(20,000) Rs. 1,00,000 per unit

45.00

71.12

66.01

96.21

80.25

25.00

25.24

106.31

20.00

25.00

100.00

186

Touching lives. Transforming India.

SCHEDULE ‘N’ (Contd.)

DETAILS OF INVESTMENTS (Contd.)

- UTI Liquid Cash Plan Income

(4,27,213 ) of Rs. 1,000 per unit

As at
31st March, 2008
-

- UTI Fixed Maturity Plan of Rs. 10 per unit - Dividend

(25,11,53,627)

5,00,00,000 UTI Fixed Maturity Plan of

(1,00,00,000) Rs. 10 per unit - Growth

7,00,00,000 UTI Fixed Income Interval Fund

(-) of Rs. 10 per unit - Growth

5,02,06,873 UTI Fixed Maturity Plan

(-) of Rs. 10 per unit - Dividend

50.00

70.00

50.21

3,395.15

(Rs. in crore)

As at
31st March, 2007

43.55

251.15

10.00

2,985.29

Total Current Investments

6,384.45

3,242.08

Investment in Others (B)

9,276.53

5,027.28

Total (A+B)

9,522.85

5,268.01

Investments have been provided as security for Working Capital loans.

Notes:
1.
2. Given on lien in favour of Collector, Jamnagar District.
3. Provision for diminution in the value of investments is Rs. 13.92 crore (Previous Year Rs. 93.50 crore) and Investment written off

Rs. NIL (Previous Year Rs.13.00 crore)

As per our Report of even date

For and on behalf of the Board

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. Siddharth
Partner

A.R. Shah
Partner

Mumbai
April 21, 2008

V.M. Ambani
Company Secretary

Chairman & Managing Director
Executive Director
Executive Director
Executive Director

-
-
-
-

M.D. Ambani
N.R. Meswani
H.R. Meswani
H.S. Kohli
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
S. Venkitaramanan
Prof. Ashok Misra

Prof. Dipak C. Jain } Directors

Annexure 1 to Shareholders’ Referencer
List of Investor Service Centres of Karvy Computershare Private Limited

RELIANCE INDUSTRIES LIMITED 187

Phone - 0ffice

2526660 to 63

Fax Nos.

E-mail

2526663

sandeepagar@karvy.com, ksblagra@karvy.com

26420422 / 26400527 / 28

26565551

ahmedabad@karvy.com

2429272

2561073

aligarh@karvy.com; ksblaligarh@karvy.com

pradeept@karvy.com, ksblallahabad@karvy.com

lrajesh@karvy.com, ksblanantpur@karvy.com

hiren.soni@karvy.com,
ksblankleshwar@karvy.com

shaileshn@karvy.com, ksblabad@karvy.com

26621169

ramapriyanpb@karvy.com

2476797

2402933

254533

avitabh@karvy.com, ksblbareilly@karvy.com

ksblbelgaum@karvy.com

vijayendra@karvy.com, ksblbellary@karvy.com

hiren.soni@karvy.com, ksblbharuch@karvy.com

manish.jain@karvy.com, bhavnagar@karvy.com

ppvarma@karvy.com, ksblbvaram@karvy.com

ANKLESHWAR

02646

243291 / 243292 / 243392 / 243955

Sl. City / Centre
No.

AGRA

AHMEDABAD

ALIGARH

ALLAHABAD

ANANTAPUR

AURANGABAD

BENGALURU

BAREILLY

10 BELGAUM

11 BELLARY

12 BHARUCH

13 BHAVNAGAR

14 BHIMAVARAM

15 BHOPAL

16 BHUBANESHWAR

17 CALICUT

18 CHANDIGARH

19 CHENNAI

21 COIMBATORE

22 CUTTACK

23 DEHRADUN

24 DINDIGUL

25 DURGAPUR

ELURU

ERODE

STD
Code

0562

079

0571

0532

2509106 to 08

2561073 to 74

08554

249601 / 249607 / 249608

0240

080

0581

0831

2363517 / 23 / 24 / 30

26621192 / 26621193

2402544 / 2402722 / 2402880

08392

254531, 254532

02642

242082 / 242394 / 241546

0278

2525005. 2525006

08816

231766 / 67 / 68 / 69

0422

0671

0135

0451

0343

2436077, 2436177

2586375 to 77

08812

227851 / 52 / 54

0424

2225603, 225615, 2225616,
2225617, 2225624

0755

0674

0495

0172

044

2559332, 2559337, 2574569,
2574589, 2574731

2760890

ashutosh.dwivedi@karvy.com,
ksblbhopal@karvy.com

2547531 to 34, 2547382

2511012

ksblbbsr@karvy.com

2760882, 2760884

bijesh@karvy.com, ksblcalicut@karvy.com

5071726, 5071727, 5071728, 5079702 ~

sanjay@karvy.com, chandigarh@karvy.com

28153445, 28151034, 28153658

28153181

chennaiirc@karvy.com

20 CHILAKALURIPET

08647

257501

257502

ksblchpet@karvy.com

2237501 TO -506, 2231387, 2237990

2335187, 3110827, 3109972

srn@karvy.com, cooimbatore@karvy.com

debasis@karvy.com, ksblcuttack@karvy.com

2713351, 2714046, 2714047

2714047

abhishek@karvy.com, ksbldehradun@karvy.com

dindigul@karvy.com

jagdish@karyv.com, ksbldurgapur@karvy.com

ksbleluru@karvy.com

erode@karvy.com

shailendra@karvy.com, sblghaziabad@karvy.com

gobi@karvy.com

28 GHAZIABAD

0120

2701886, 2701891

29 GOBICHETTIPALAYAM 04285

226275, 226276

30 GORAKHPUR

31 GUNTUR

32 HALDIA

33 HUBLI

34 HYDERABAD

INDORE

JAIPUR

JAMNAGAR

JAMSHEDPUR

JUNAGADH

40 KAKINADA

41 KANPUR

42 KARAIKUDI

43 KARUR

44 KOCHI

0551

0863

2333825, 2333814

2326684 / 2326686

03224

276755 to 57

2346519

2326687

abhinav@karvy.com, ksblgorakhpur@karvy.com

ssrikanth@karvy.com, ksblguntur@karvy.com

joshiss@karvy.com, ksblhaldia@karvy.com

0836

040

0731

0141

0288

0657

0285

0884

0512

2353962, 2353974, 2353975

2353961

basavarajhirur@karvy.com, hubli@karvy.com

23312454 / 23320251

23312946

irchyd@karvy.com

5069891, 5069892, 5069893

2375099, 2363321, 2375039

5069894

2364660

2557862 TO 65

2487020, 2487045, 2487048

2624154 / 2624140 / 2624125

pmungre@karvy.com

mbmaheshwari@karvy.com,
ksbljaipur@karvy.com

jamnagar@karvy.com

jamshedpur@karvy.com,
ksbljamshedpur@karvy.com

junagadh@karvy.com

2387382 / 2387383

2387381

vvrao@karvy.com, ksblkakinada@karvy.com

2330127, 2331445, 3092333, 3096000

2558334

prashant@karvy.com, ksblkanpur@karvy.com

04565

237192, 237193

karaikudi@karvy.com

04324

241892, 241893, 241894

241891

karur@karvy.com

0484

2310884, 2322152

2323104

rganesan@karvy.com, ksblcochin@karvy.com

188

Touching lives. Transforming India.

Sl. City / Centre
No.

45 KOLKATA

STD
Code

033

Phone - 0ffice

Fax Nos.

E-mail

24634787 to 89, 24647231,
24647232, 24644891

LUCKNOW

0522

2236820 to 26

47 MADURAI

48 MANGALORE

49 MATTANCHERRY

0452

0824

0484

2350855, 2350852 to 854

2492302, 2496332, 2492901

2223243

24644866,
24634787

2236826

2350856

2496352

alokc@karvy.com,
ksblcalcutta@karvy.com

nitinsaxena@karvy.com,
adminlucknow@karvy.com

madurai@karvy.com, ksblmadurai@karvy.com

cshetty@karvy.com, mangalore@karvy.com

50 MUMBAI

022

26730799 / 843 / 311 / 867 /153 / 292

26730152

51 MUMBAI

52 MYSORE

53 NADIAD

54 NASIK

022

0821

0268

0253

30325600, 30325624, 30325645

2524292, 2524294

2563210 / 2563245 / 2563248

2577811, 5602542, 5602543,
5602544

2285731

2524293

55 NELLORE

0861

2349935 / 2349936 / 2349937

2349939

kparthasarathy@karvy.com,
ksblmattancherry@karvy.com

pbamlani@karvy.com,
mumbaiandheri@karvy.com

francisjf@karvy.com

vasanthank@karvy.com, mysore@karvy.com

nadiad@karvy.com

nabriyad@karvy.com

chandramohan@karvy.com,
ksblnellore@karvy.com

56 NEW DELHI

PALGHAT

PANJIM

PATNA

PONDICHERRY

PRODDATUR

PUNE

63 RAJAHMUNDRY

64 RAJKOT

65 RANCHI

66 RENUKOOT

67 ROURKELA

SALEM

SHIMOGA

SURAT

TANJORE

THENI

TIRUPATI

TIRUPUR

TRICHUR

TRICHY

TRIVANDRUM

TUMKUR

79 UDUPI

80 VADODARA

011

0491

0832

0612

0413

23324401 / 23353835 / 981

23324621

sakulpuri@karvy.com, ksbldelhi@karvy.com

2547143

palghat@karvy.com

2426870, 2426871, 2426872

2426873

rajeshpatki@karvy.com, ksblpanajim@karvy.com

2321355 / 56

2220636, 2220640

sanjayn@karvy.com, ksblpatna@karvy.com

2220659

vipul@karvy.com, ksblpondicherry@karvy.com

08564

250822 / 250823 / 250824

viswam@karvy.com, ksblproddatur@karvy.com

4048790

2434468 / 2434469

25456842

anandjaju@karvy.com, pune@karvy.com

2434471

gv@karvy.com; ksblrjm@karvy.com

2239403/2239404/2239338/ 2294316

2330386, 2330394, 2330320

020

0883

0281

0651

0877

0421

0487

0431

0471

0816

0820

0265

05446

254201

0661

0427

2510771, 2510772

2335700 TO 704

08182

228795, 228796, 227485

0261

8357356 / 8351976 / 8369928

04362

279407, 279408

04546

261285, 261108

2252756

2205865, 5330158

2322483, 2322484

2798200, 2791000

2725987, 2725989 to 991

2261891, 2261892, 2261893

2530962, 2530963, 2530964

2335705

2226747

8368693

2794132

2725987

manish.jain@karvy.com, rajkot@karvy.com

ranchi@karvy.com, ksblranchi@karvy.com

renukoot@karvy.com

nmohanty@karvy.com, rourkela@karvy.com

salem@karvy.com

shimoga@karvy.com, ksblshimoga@karvy.com

surat@karvy.com, ksblsurat@karvy.com

tanjore@karvy.com

jaya@karvy.com, theni@karvy.com

venkatreddy@karvy.com,ksbltirupati@karvy.com

tirupur@karvy.com

josephka@karvy.com

trichy@karvy.com

csjoy@karvy.com, ksbltvm@karvy.com

somnath@karvy.com, tumkur@karvy.com

ksbludupi@karvy.com, udupi@karvy.com

2225325 / 2225389

2363207

shoban@karvy.com, ksblbaroda@karvy.com

81 VALLABH-VIDHYANAGAR

02692

248980, 248873

mukesh.patel@karvy.com, vvnagar@karvy.com

82 VARANASI

83 VIJAYAWADA

84 VISHAKAPATNAM

85 VISHAKAPATNAM
- GAJUWAKA

0542

0866

0891

2225365, 2223814

2223814

ashutosh@karvy.com, ksblvaranasi@karvy.com

2495200 / 400 / 500 / 600 /700 / 800

2495300

cchrao@karvy.com, vijayawada@karvy.com

2752915 to 18

2752915-18

ysrinivas@karvy.com, ksblvizag@karvy.com

0891

2511685, 2511686

prasad@karvy.com, ksblgajuwaka@karvy.com

RELIANCE INDUSTRIES LIMITED 189

Members
Feedback Form
2007-2008

Name : ................................................................................. e-mail id : .............................................................................................

Address : ..............................................................................................................................................................................................

DP ID. : ...............................................................................................................................................................................................

Client ID. : ..........................................................................................................................................................................................

Folio No. : ...........................................................................................................................................................................................
(in case of physical holding)

No. of equity shares held : .................................................................
(the period for which held)

Please rate on a 5 point scale of 1 to 5

Signature of member

1. Excellent

2. Very Good

3. Good

4. Satisfactory 5. Unsatisfactory

Directors' Report and Management's

Contents

Discussion and Analysis

Presentation

Report on Corporate Governance

Contents

Presentation

Shareholders' Referencer

Contents

Presentation

Quality of Financial and non- financial Contents

information in the Annual Report

Presentation

Information on Company's Website

Contents

Presentation

INVESTOR SERVICES

Turnaround time for response to shareholder query

Quality of response

Timely receipt of Annual Report

Conduct of Annual General Meeting

Timely receipt of dividend warrants / payment through ECS

Promptness in confirming demat / remat requests

Overall rating

Views/Suggestions for improvement, if any ............................................................................................................................

.......................................................................................................................................................................................................

Members are requested to send this feedback form to the address given overleaf.

190

Touching lives. Transforming India.

BUSINESS REPLY INLAND LETTER

Postage
will be
paid by the
Addressee

Business Reply Permit No.
MBI-S-1363
Nariman Point
Mumbai - 400 021

No postage
stamp
necessary if
posted in
INDIA

To,
Shri S. Sudhakar
Vice President-Corporate Secretarial
Reliance Industries Limited
Registered Office: 3rd Floor, Maker Chambers IV
222, Nariman Point
Mumbai 400 021

Fold

(cid:1)

DP Id*

Client Id*

RELIANCE INDUSTRIES LIMITED 191

ATTENDANCE SLIP

Registered Office: 3rd floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021.

PLEASE FILL ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE MEETING HALL.
Joint shareholders may obtain additional Slip at the venue of the meeting.

Master Folio No.

No. of Shares

NAME AND ADDRESS OF THE SHAREHOLDER

I hereby record my presence at the 34TH ANNUAL GENERAL MEETING of the Company held on Thursday,
June 12, 2008 at 11.00 a.m.at Birla Matushri Sabhagar, 19, New Marine Lines, Mumbai 400 020.

* Applicable for investors holding shares in electronic form.

Signature of Shareholder / proxy

PROXY FROM

Registered Office : 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021, India

DP Id*

Client Id*

Master Folio No.

I/We…………..…………………………………………………………………………………………. of ……………………being a member/ members of
Reliance Industries Limited hereby appoint…………………...............................................…………………………………………
……..………………………………………………………………… of ………………………………………………………. or failing
him……………………………………...……….......................................... of ……………………………….....................................

as my/our proxy to vote for me/us and on my/our behalf at the 34th Annual General Meeting of the company to be held on Thursday,
June 12, 2008 at 11.00 a.m. and at any adjournment thereof.

** I wish my above Proxy to vote in the manner as indicated in the box below:

Resolutions

For

Against

1. Adoption of Accounts, Reports of the Board of Directors and Auditors

2. Declaration of a dividend

3. Re-appointment of the following Directors retiring by rotation:

a) Shri R.H. Ambani

b) Shri S. Venkitaramanan

c) Prof. Ashok Misra

d) Shri Nikhil R. Meswani

4. Appointment of Auditors

5. Re-appointment of and remuneration payable to Shri Mukesh D. Ambani as Managing Director

6. Re-appointment of and remuneration payable to Shri Nikhil R. Meswani as a Whole-time Director

(cid:1)

Signed this…………………. day of …………………………. 2008

* Applicable for investors holding shares in electronic form.

Signature

Please see the instructions overleaf

Affix a
15 paise
Revenue
Stamp

192

Touching lives. Transforming India.

NOTE: (1) The proxy , to be effective, should be deposited at the Registered Office of the Company at 3rd Floor,
Maker Chambers IV, 222, Nariman Point, Mumbai 400 021 not less than 48 hours before the
commencement of the aforesaid meeting.

(2) A Proxy need not be a member of the Company.

** (3) This is only optional. Please put a ‘X’ in the appropriate column against the resolutions indicated in the Box.
If you leave the ‘For’ or ‘Against’ column blank against any or all the resolutions, your Proxy will be entitled
to vote in the manner as he/she thinks appropriate. Should you so desire, you may also appoint the
Chairman or the Company Secretary of the Company as your Proxy, who shall carry out your mandate as
indicated above in the event of a poll being demanded at the meeting.

OIL & GAS
EXPLORATION

Energy for Indians. Transforming India.

Reliance forayed into Oil and Gas Exploration to meet the nation's energy needs. Today,
we are poised to create a global record by producing gas from the Krishna Godavari (KG)
basin by end 2008, completing the journey from discovery to production in just six years.

The gas from our wells will significantly change the landscape of the Indian natural gas
market. Natural gas currently accounts for around 8% of the total energy mix in India as
against the global average of 24%. With increased availability and development of
transmission and distribution infrastructure, the share of natural gas in the energy mix is
set to rise.

Importantly, natural gas is an environment-friendly source of energy. Unlike other fossil
fuels, it does not pollute the environment.

Further, Reliance will also save precious foreign exchange for the nation by ensuring
import substitution in this vital field of energy.

PETROLEUM &
PETROCHEMICALS

Sustainable Solutions. Transforming India.

Petrochemicals play a crucial role in almost every aspect of modern life, ensuring higher
living standards. The commissioning of RIL's Jamnagar refinery in 1999, led to a significant
change in Indian economy, which until then was dependant on imports for meeting the
country's needs of petroleum and petrochemical products. From an importer, India became a
net exporter.

With limited availability of land mass for cotton production and increase in foodgrain
requirement, it was becoming increasingly evident that cotton alone could not meet the
growing demand for fabrics. Way back in the eighties, RIL had identified polyester as the
future fabric. Soon Reliance became the symbol of world-class fabric at an affordable price.
The common man and woman in India could avail themselves of the same quality that
Reliance was offering the rest of the world through its extensive export operations.

Today, petrochemicals contribute to preserving resources and energy, protecting the climate
and improving quality of life. They play a major role in providing sustainable solutions in
key areas like food-security, water-management, building & construction, textiles,
healthcare, transportation, lifestyle products and technology sectors like IT, communication
and entertainment in an emerging market like India. Over the years, petrochemical
products like plastics have helped replace metal in various industries, offering lighter,
affordable and durable substitutes.

It's our constant endeavour to offer innovative products and improve the quality of life of
our people, our fellow citizens.

ORGANISED
RETAIL

Propelling the Circle of Prosperity. Transforming India.

We began building an unbreakable bond with our shareholders in the eighties. Today,
through our Retail Business, we are extending this business principle to create strong
ties with consumers by delivering quality at affordable prices. At the same time, we
are also forging strong and enduring partnerships with millions of farmers.

Organised retailing along with a next generation physical distribution system is at the
core of this transformational initiative. This idea has evolved from the new paradigm
in consumption of products and services in India. Reliance Retail will usher in
enormous spin-off benefits for the Indian economy and its various constituents by:
delivering better returns to the Indian farmers and producers by connecting them
directly to Indian and global consumers. Reliance Retail will help them to develop
partnerships with small retailers to enlarge their consumer offerings and income, while
generating employment for about one million people in the ensuing years.

Just as information technology and communication enabled a new wave of urban and
industrial prosperity, our organised retailing initiative will bring about a new wave of
rural prosperity. It will carry the benefits of globalisation and reform to the doorsteps
of Indian farmers.

SPECIAL
ECONOMIC
ZONES

New Engines of Growth. Transforming India.

Special Economic Zones (SEZs) will be new engines of growth for the New India.
With world-class infrastructure, the units in our SEZs will compete with the best in
the world. They will create employment for millions of Indians and give them an
opportunity to create value for themselves and also for the country.

We are promoting three SEZs - two in Haryana (Gurgaon and Jhajjar) and one
at Jamnagar, Gujarat. Both the states have pragmatic approach towards business
and were amongst the first few to legislate the SEZ Act 2005, in line with the
national policy.

Our SEZs will function as integrated growth zones with state-of-the-art facilities,
ensuring sustainable development of medium and large scale industries and service
activities with sufficient provision for future growth and expansion.

CORPORATE
SOCIAL
RESPONSIBILITY

Reaching Out to Communities. Transforming India.

Social welfare and community development are at the core of RIL's vision of
Corporate Social Responsibility (CSR) and continue to guide every action at
Reliance.

This vision evolves from our deeply-held belief in the principle of symbiotic
relationship with the local communities, recognising that business ultimately has a
purpose to serve human needs.

Our contributions to the community are in the area of health, education,
infrastructure development (drinking water, improving village infrastructure,
construction of schools, etc.), environment (effluent treatment, tree plantation,
treatment of hazardous waste), relief and assistance in the event of natural disasters,
and contributions to other social development organisations.

Project Drishti, a unique nation-wide corneal grafting drive, to bring light into the
lives of visually challenged from the underprivileged segment of society, has restored
the gift of sight to over 5,500 Indians. It is now the largest corneal grafting surgery
project enabled by a single corporate entity in India.