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Notes to Accounts of Reliance Industries Ltd.

Mar 31, 2015

1.1 45,04,27,345 Shares were allotted on conversion / surrender of Debentures and Bonds, conversion of Term (45,04,27,345) Loans, exercise of Warrants, against Global Depository Shares (GDS) and re-issue of Forfeited

Equity Shares, since inception.

1.2 17,18,83,624 Shares held by subsidiaries, which were allotted pursuant to the Schemes of Amalgamation sanctioned (17,18,83,624) by the Hon'ble High Courts in the previous years, do not have voting rights and are not eligible for

Bonus Shares

1.3 4,62,46,280 Shares were bought back and extinguished in the last five years.

(4,62,46,280)

1.4 The Company has reserved issuance of 12,67,18,207 (Previous year 13,05,05,114) 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 the Company has granted 45,419 options which includes 21,367 options at a price Rs. 936 per option, 13,052 options at a price of Rs. 961 per option and 11,000 options at a price of Rs. 843 per option plus all applicable taxes, as may be levied in this regard on the Company (Previous year 71,866 options which includes 60,866 options at a price of Rs. 860 per option and 11,000 options at a price of Rs. 880 per option plus all applicable taxes, as may be levied in this regard on the Company) to the Eligible Employees. The options would vest over a maximum period of 7 years or such other period as may be decided by the Human Resources, Nomination and Remuneration Committee from the date of grant based on specified criteria.

1.5 Share Application Money Pending Allotment represents application money received on account of Employees Stock Option Scheme.

2.1 Non Convertible Debentures referred above to the extent of:

a) Rs. 533 crore are secured by way of first mortgage / charge on all the properties situated at Hazira Complex and at Patalganga Complex of the Company.

b) Rs. 500 crore are secured by way of first mortgage / charge on the immovable properties situated at Jamnagar Complex (SEZ unit) of the Company.

c) Rs. 370 crore are secured by way of first mortgage / charge on the immovable properties situated at Hazira Complex and at Jamnagar Complex (other than SEZ units) of the Company.

d) Rs. 31 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.

2.2 Finance Lease Obligations are secured against Leased Assets.

2.3 Bonds include 5.875% Senior Perpetual Notes (the "Notes") of Rs. 5,000 crore. The Notes have no fixed maturity date and the Company will have an option, from time to time, to redeem the Notes, in whole or in part, on any semi- annual interest payment date on or after February 5, 2018 at 100% of the principal amount plus accrued interest.

3. LONG TERM PROVISIONS

During the current financial year, Tapti Joint Venture (JV) achieved resolution with Government of India (GoI) that the Tapti JV will assume responsibility for abandonment obligation of Tapti Part B facilities. Accordingly, the Company has recognized a liability related to dismantling and abandonment of facilities based on the estimated future expenditure. Further the Company has also recognized similar liabilities for D1D3 and MA fields based on the estimates provided in the development plan. Aggregate provision recognised is Rs. 1,404 crore ($ 224.70 Million)

4.1 Working Capital Loans from Banks referred above to the extent of:

(a) Rs. 672 crore (Previous Year Rs. 3,906 crore) are secured by hypothecation of present and future stock of raw materials, stock-in-process, finished goods, stores and spares (not relating to plant and machinery), book debts, outstanding monies, receivables, claims, bills, materials in transit, etc. save and except receivables of Oil and Gas Division.

(b) Rs. Nil (Previous Year Rs. 3,105 crore) are secured by way of lien on Fixed Deposits and Rs. Nil (Previous Year Rs. 978 crore) are secured by lien on Government Securities.

4.2 Working Capital Loan from Others of Rs. Nil (Previous Year Rs. 1,199 crore) are secured by lien on Government Securities.

5.1 Leasehold Land includes Rs. 203 crore (Previous Year Rs. 203 crore) in respect of which lease-deeds are pending execution.

5.2 Buildings includes :

i) Cost of shares in Co-operative Housing Societies Rs. 1 crore (Previous Year Rs. 1 crore).

ii) Rs. 5 crore (Previous Year Rs. 5 crore) in respect of which conveyance is pending.

iii) Rs. 93 crore (Previous Year Rs. 93 crore) in shares of Companies / Societies with right to hold and use certain area of Buildings.

5.3 Intangible Assets - Others includes :

i) Jetties amounting to Rs. 812 crore (Previous Year Rs. 812 crore), the Ownership of which vests with Gujarat Maritime Board.

ii) Rs. 8,367 crore (Previous Year Rs. 8,367 crore) in preference shares of subsidiaries and lease premium paid with right to hold and use Land and Buildings.

5.4 Capital Work-in-Progress and Intangible Assets under Development includes :

i) Rs. 6,770 crore (Previous Year Rs. 4,204 crore) on account of Project Development Expenditure.

ii) Rs. 16,346 crore (Previous Year Rs. 10,951 crore) on account of cost of construction materials at site.

5.6 The Gross Block of Fixed Assets includes Rs. 38,122 crore (Previous Year Rs. 38,122 crore) on account of revaluation of Fixed Assets carried out since inception.

5.7 Additions in Plant and Machinery, Capital Work-in-Progress, Intangible Assets - Development Rights and Intangible Assets under Development includes Rs. 4,709 crore (net loss) [Previous Year Rs. 8,678 crore (net loss)] on account of exchange difference during the year.

5.8 i) In respect of Fixed Assets acquired on finance lease on or after 1st April, 2001, the minimum lease rentals outstanding as on 31st March, 2015 are as follows:

ii) General Description of Lease Terms:

Assets are taken on Lease over a period of 5 to 10 years.

iii) Fixed Assets taken on finance lease prior to 1st April, 2001, amount to Rs. 444 crore (Previous Year Rs. 444 crore). Future obligations towards lease rentals under the lease agreements as on 31st March, 2015 amount to Rs. 1 crore (Previous Year Rs. 2 crore).

5.9 Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II, except in respect of certain assets as disclosed in Accounting Policy on Depreciation, Amortisation and Depletion. Accordingly the unamortised carrying value is being depreciated / amortised over the revised/ remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account amounting to Rs. 318 crore.

6.1 Loans and Advances in the nature of Loans given to Subsidiaries and Associates:

(i) Loans and Advances shown above, fall under the category of 'Long Term Loans & Advances' in nature of Loans and are re-payable within 3 to 5 years except Short Term Loans and Advances to Reliance Ventures Limited and Reliance Strategic Investments Limited.

(ii) All the above Loans and Advances are interest bearing except for an amount of Rs. 11,202 crore given to Reliance Industrial Investments and Holdings Limited and Rs. 33 crore to Reliance Gas Pipelines Limited.

(iii) Loans to employees as per the Company's policy are not considered.

A) (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 (amalgamated in 2001-02) and Indian Petrochemicals Corporation Limited with the Company under the Schemes approved by the Hon'ble High Court of Judicature at Bombay and Gujarat and certain subsequent inter se transfer of shares.

33.2 (a) Net Quantities of Company's Interest (on gross basis) in Proved Reserves and Proved Developed Reserves :

(b) In case of producing field and fields where development of drilling activities are in progress, the geological and reservoir simulation are updated as and when new well information is available. In all cases, reserve evaluation is carried out at least once in a year.

(c) The reserves estimates related to KGD6 and NEC25 have been revised. During the year, the Company recognized reserves towards CB10 block post review of Declaration of Commerciality (DoC) by Management Committee.

(d) The Government of India (GoI), by its letters dated 2nd May 2012, 14th November 2013 and 10th July 2014 has communicated that it proposes to disallow certain costs which the Production Sharing Contract (PSC), relating to KG-DWN-98/3 entitles the Company to recover. Based on legal advice received, the Company continues to maintain that a Contractor is entitled to recover all of its costs under the terms of the PSC and there are no provisions that entitle the GoI to disallow the recovery of any Contract Cost as defined in the PSC. The Company has already referred the issue to arbitration and already communicated the same to GoI for the resolution of dispute. Pending decision of the arbitration, the demand from the GoI of $ 117 million ( Rs. 731 crores) being the Company's share (total demand $ 195 million) towards additional Profit Petroleum has been considered as contingent liability.

(e) In supersession of the Ministry's Gazette notification no. 22011/3/2012-ONG.D.V. dated 10th January, 2014, the GoI notified the New Domestic Natural Gas Pricing Guidelines, 2014, on 25th October 2014. As per new notification, GoI had revised the price of Gas to $ 5.05 per MMBTU on Gross Calorific Value (GCV) basis from the existing price of $ 4.205 on Net Calorific Value (NCV) basis per MMBTU with effect from 01st November 2014 for the period from November 2014 to March 2015. Consequent to the aforesaid dispute referred to under 33.2 (d) above which has been referred to arbitration, the GoI has directed the Company to instruct customers to deposit differential revenue on gas sales from D1D3 field on account of the price determined under the guidelines converted to NCV basis and the prevailing price prior to 1st November 2014 ($ 4.205 per MMBTU) to be credited to the gas pool account maintained by GAIL (India) Limited. The amount so deposited by customer to Gas Pool Account is Rs. 147 crore as at 31st March 2015 is disclosed under Other Long Term Loans and Advances. Revenue has been recognized at the GoI notified price of $ 5.05 MMBTU on GCV basis, in respect of gas quantities sold from D1D3 field from 1st November 2014.



(Rs. in crore)

As at As at 31st March, 2015 31st March, 2014

7. CONTINGENT LIABILITIES AND COMMITMENTS

(I) Contingent Liabilities

(A) Claims against the Company / disputed liabilities not acknowledged as debts*

(a) In respect of Joint Ventures 798 414

(b) In respect of Others 1,770 1,433

(B) Guarantees

(i) Guarantees to Banks and Financial Institutions against credit facilities extended to third parties and other Guarantees

(a) In respect of Joint Ventures - -

(b) In respect of Others 35,418 32,308

(ii) Performance Guarantees

(a) In respect of Joint Ventures - -

(b) In respect of Others 274 290

(iii) Outstanding Guarantees furnished to Banks and Financial Institutions including in respect of Letters of Credits

(a) In respect of Joint Ventures 20 700

(b) In respect of Others 17,704 4,843

(C) Other Money for which the Company is contingently liable

(i) Liability in respect of bills discounted with Banks (Including third party bills discounting)

(a) In respect of Joint Ventures - -

(b) In respect of Others 1,121 4,970

(II) Commitments

(A) Estimated amount of contracts remaining to be executed on capital account and not provided for:

(a) In respect of Joint Ventures 865 1,168

(b) In respect of Others 20,569 25,349

(B) Other Commitments

(a) Sales Tax deferral liability assigned 787 1,563

(b) Guarantee against future cash calls ** 1,315 2,917

* The Company has been advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.

** The Company has issued Guarantees against future cash calls to be made by JV Partners of its wholly owned subsidiary Reliance Marcellus LLC.

(III) The Income-Tax Assessments of the Company have been completed up to Assessment Year 2010-11. The assessed tax liability exceeds the provision made, by Rs. 509 crore as on 31st March, 2015. Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the additional demand raised is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.

b) Foreign Currency Exposures that are not hedged by derivative instruments as on 31st March 2015 amount to Rs. 82,812 crore (Previous Year Rs. 64,918 crore). The unhedged exposures are naturally hedged by future foreign currency earnings and earnings linked to foreign currency.

8. As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Consolidated Financial Statements.

9. DETAILS OF LOANS GIVEN, INVESTMENTS MADE AND GUARANTEE GIVEN COVERED U/S 186 (4) OF THE COMPANIES ACT, 2013 Loans given and Investments made are given under the respective heads.

10.1 The Company had announced Voluntary Separation Scheme (VSS) for the employees of Silvassa Manufacturing Division during the previous year. A sum of Rs. 32,00,000 (Previous Year Rs. 31 crore) has been paid during the year and debited to the Profit and Loss Statement under the head "Employee Benefits Expense".

(b) In case of producing field and fields where development of drilling activities is in progress, the geological and reservoir simulation are updated as and when new well information is available. In all cases, Reserve evalua- tion is carried out at least once in a year.

(c) The reserves estimates related to KGD6 and NEC25 have been revised. During the year, the Company recognized reserves towards CB10 block post review of Declaration of Commerciality (DoC) by Management Committee.

(III) The Income-Tax Assessments of the Company have been completed up to Assessment Year 2010-11. The assessed tax liability exceeds the provision made by Rs. 726 crore as on 31st March, 2015. Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the additional demand raised is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.

11. FINANCIAL AND DERIVATIVE INSTRUMENTS

a) Derivative contracts entered into by the Company and outstanding as on 31st March, 2015

(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, 2015 amount to Rs. 1,74,754 crore (Previous Year Rs. 1,15,654 crore).

b) Foreign Currency Exposures that are not hedged by derivative instruments as on 31st March, 2015 amount to Rs. 85,791 crore (Previous Year Rs. 65,612 crore). The unhedged exposures are naturally hedged by future foreign currency earnings and earnings linked to foreign currency.

c) Other Option Contracts of Rs. 16 crore and Future Contracts of Rs. 306 crore are outstanding as on 31st March, 2015.

12. The audited/unaudited financial statements of foreign subsidiaries / associates have been prepared in accordance with the Generally Accepted Accounting Principle of its Country of Incorporation or International Financial Reporting Standards. The differences in accounting policies of the Company and its subsidiaries / associates are not material and there are no material transactions from 1st January, 2015 to 31st March, 2015 in respect of subsidiaries / associates having financial year ended 31st December, 2014.

Names of Subsidiaries which are yet to commence operations - Sr.

Name of the Companies No.

1 Reliance Jio Global Resources LLC

2 Reliance Marcellus Holdings LLC

3 Reliance Textiles Limited

Names of Subsidiaries which have been liquidated or sold during the year - Sr.

Name of the Companies No.

1 Achman Commercial Private Limited

2 Delight Proteins Limited

3 Gapco Rwanda Limited

4 GenNext Innovation Ventures Limited

5 Infotel Telecom Limited

6 Kaizen Capital LLP

7 LPG Infrastructure (India) Limited

8 Mark Project Services Private Limited

9 Rancore Technologies Private Limited

10 Reliance Agri Ventures Private Limited

11 Reliance Convention and Exhibition Centre Limited

12 Reliance Corporate Centre Limited

13 Reliance Corporate Services Limited

14 Reliance Dairy Foods Limited

15 Reliance F&B Services Limited

16 Reliance Financial Distribution and Advisory Services Limited

17 Reliance Food Processing Solutions Limited

18 Reliance Gas Corporation Limited

19 Reliance Industries Investment and Holding Limited

20 Reliance Infrastructure Management Services Limited

21 Reliance Nutritious Food Products Limited

22 Reliance People Serve Limited

23 Reliance Review Cinema Limited

24 Reliance Security Solutions Limited

25 Reliance Strategic (Mauritius) Limited

26 Reliance Style Fashion India Private Limited

27 Reliance Styles India Limited

All the above Companies have been amalgamated pursuant to the Scheme of Amalgamation except:

1. Gapco Rwanda Limited which has been sold during the year.

2. Reliance Strategic (Mauritius) Limited and Kaizen Capital LLP which have been liquidated during the year.


Mar 31, 2014

1.1 162,67,93,078 Shares were allotted as Bonus Shares in the last five years by capitalisation of Securities Premium (162,67,93,078) and Reserves.

1.2 6,92,52,623 Shares were allotted in the last five years pursuant to the Scheme of amalgamation with Reliance (6,92,52,623) Petroleum Limited without payments being received in cash.

1.3 45,04,27,345 Shares were allotted on conversion / surrender of Debentures and Bonds, conversion of Term (45,04,27,345) Loans, exercise of warrants, against Global Depository Shares (GDS) and re-issue of forfeited equity shares, since inception.

1.4 17,18,83,624 Shares held by Subsidiaries do not have Voting Rights and are not eligible for Bonus Shares (17,18,83,624)

1.5 4,62,46,280 Shares were bought back and extinguished in the last five years. (4,62,46,280)

1.6 The Company has reserved issuance of 13,05,05,114 (Previous year 13,37,43,590) Equity Shares ofRs. 10 each for offering to eligible employees of the Company and its subsidiaries under Employees Stock Option Scheme (ESOS). During the year, the Company has granted 60,866 (Previous Year NIL) options to the eligible employees at a price ofRs. 860 per option plus all applicable taxes, as may be levied in this regard on the Company. The options would vest over a maximum period of 7 years or such other period as may be decided by the Human Resources, Nomination and Remuneration Committee from the date of grant based on specified criteria.

1.7 Share application money pending allotment represents application money received on account of Employees Stock Option Scheme.

2.1 Non Convertible Debentures referred above to the extent of:

a) Rs. 370 crore are secured by way of first mortgage /charge on the immovable properties situated at Hazira Complex and at Jamnagar Complex (other than SEZ units) of the Company.

b) Rs. 917 crore are secured by way of first mortgage/charge on all the properties situated at Hazira Complex and at Patalganga Complex of the Company.

c) Rs. 30 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.

d) Rs.51 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.

e) Rs. 500 crore are secured by way of first mortgage / charge on the immovable properties situated at Jamnagar Complex (SEZ unit) of the Company.

2.2 Finance Lease Obligations are secured against leased assets.

2.3 Bonds include, 5.875% Senior Perpetual Notes (the "Notes") of Rs. 4,793 crore. The Notes have no fixed maturity date and the Company will have an option, from time to time, to redeem the Notes, in whole or in part, on any semi-annual interest payment date on or after February 5,2018 at 100% of the principal amount plus accrued interest.

3.1 Working Capital Loans from Banks referred above to the extent of:

(a) Rs. 3,906 crore are secured by hypothecation of present and future stock of raw materials, stock-in-process, finished goods, stores and spares (not relating to plant and machinery), book debts, outstanding monies, receivables, claims, bills, materials in transit, etc. save and except receivables of Oil and Gas Division.

(b) Rs. 3,105 crore are secured by way of lien on fixed deposits and Rs. 978 crore are secured by lien on Government Securities.

3.2 Working Capital Loan from Others ofRs. 1,199 crore are secured by lien on Government Securities.

4.1 Leasehold Land includesRs. 203 crore (Previous YearRs. 203 crore) in respect of which lease-deeds are pending execution.

4.2 Buildings include:

i) Cost of shares in Co-operative Housing SocietiesRs. 1 crore (Previous YearRs. 1 crore). ii) Rs.5 crore (Previous YearRs. 5 crore) in respect of which conveyance is pending.

iii) Rs. 93 crore (Previous Year Rs. 93 crore) in shares of Companies / Societies with right to hold and use certain area of Buildings.

4.3 Intangible Assets - Others include:

i) Jetties amounting to Rs. 812 crore (Previous Year Rs. 812 crore), the Ownership of which 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.

ii) Rs. 8,367 crore (Previous Year Rs. 8,367 crore) in preference shares of subsidiaries and lease premium paid with right to hold and use Land and Buildings.

4.4 Capital Work-in-Progress and Intangible Assets under development include:

i) Rs. 4,204 crore (Previous YearRs. 2,795 crore) on account of project development expenditure, ii) Rs. 10,951 crore (Previous YearRs. 4,685 crore) on account of cost of construction materials at site.

4.5 Gross Block includesRs. 12,901 crore added on revaluation of Building, Plant & Machinery and Equipments as at 01.01.2009 based on reports issued by international values.

4.6 The Gross Block of Fixed Assets includesRs. 38,122 crore (Previous YearRs. 38,122 crore) on account of revaluation of Fixed Assets carried out since inception. Consequent to the said revaluation there is an additional charge of depreciation of Rs. 1,845 crore (Previous YearRs. 2,072 crore) and an equivalent amount has been withdrawn from Revaluation Reserve/ General Reserve.

4.7 Additions in Plant and Machinery, Capital Work-in-Progress, Intangible Assets - Development Rights and Intangible Assets under development includesRs. 8,678 crore (net loss) [Previous YearRs. 5,070 crore (net loss)] on account of exchange difference during the year.

4.8 Additions for the previous year includes freehold land Rs. 56 crore, buildings Rs.674 crore, plant and machineryRs. 1,189 crore, furniture and fixturesRs. 12 crore, vehiclesRs. 10 crore and softwareRs. 1 crore on amalgamation of Reliance Jamnagar Infrastructure Limited with the Company. Accumulated depreciation of Rs. 603 crore on the above assets has been included in depreciation for the previous year.

(a) Loans and Advances shown above, fall under the category of Long Term Loans and Advances in nature of Loans and are re-payable within 3 to 5 years except Short Term Loans and Advances to Reliance Ventures Limited and Reliance Strategic Investments Limited.

(b) All the above loans and advances are interest bearing except for an amount ofRs. 13,454 crore given to Reliance Industrial Investments and Holdings Limited and Rs. 33 crore paid to Reliance Gas Pipelines Limited.

(c) Loans to employees as per Companys policy are not considered.

B) (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 (amalgamated in 2001-02) and Indian Petrochemicals Corporation Limited with the Company under the Schemes approved by the Honble High Court of Judicature at Bombay and Gujarat and certain subsequent inter se transfer of shares.

(b) In case of producing field and fields where development of drilling activities is in progress, the geological and reservoir simulation are updated as and when new well information is available. In all cases. Reserve evaluation is carried out at least once in a year.

(c) The Government of India, by its letters dated 2nd May 2012 and 14th November 2013 has communicated that it proposes to disallow certain costs which the Production Sharing Contract (PSC), relating to Block KG-DWN-98/3 entitles the Company to recover. Based on legal advice received, the Company continues to maintain that a Contractor is entitled to recover all of its costs under the terms of the PSC and there are no provisions that entitle the Government to disallow the recovery of any Contract Cost as defined in the PSC. The Company has already referred the issue to arbitration and already communicated the same toGol for the resolution of dispute.

5. The figures for the previous year include figures of Reliance Jamnagar Infrastructure Limited, the wholly owned subsidiary company engaged in infrastructure development and maintenance developer of the operating Special Economic Zone, which was amalgamated with the Company with effect from 1st April, 2011 as per the Scheme of Amalgamation (the Scheme) sanctioned by the Honble High Court of Gujarat at Ahmedabad.

The Scheme became effective on 22nd October, 2012, the appointed date of the Scheme being 1st April, 2011.

In accordance with the scheme and as preapproval of the High Court:

a) The assets, liabilities, reserves, rights and obligations of erstwhile Reliance Jamnagar Infrastructure Limited have been transferred to and vested with the Company with effect from 1st April, 2011 and have been recorded at their respective book values, under the pooling of interest method of accounting for amalgamation as prescribed in Accounting Standard 14 on Accounting for Amalgamations.

b) Being a wholly owned subsidiary company, 10,00,00,000 equity shares & 18,50,000,10% non-cumulative optionally convertible preference shares of erstwhile Reliance Jamnagar Infrastructure Limited held by the Company have been cancelled against Share Capital of the amalgamating company and no shares have been issued in pursuance to the scheme of amalgamation.

c) Amount added on amalgamation to profit and loss account of previous year is inclusive of profit for the period 1st April 2011 till 31 st March 2012 and is net of stamp duty paid on amalgamation.

6. CONTINGENT LIABILITIES AND COMMITMENTS (Rs. In crore)

As at As at 31st March, 2014 31st March, 2013

(I) Contingent Liabilities

(A) Claims against the company/disputed liabilities not acknowledged as debts

(a) In respect of Joint Ventures 414 -

(b) In respect of others 1,433 1,663

(B) Guarantees

(i) Guarantees to Banks and Financial Institutions against credit facilities extended to third parties

(a) In respect of Joint Ventures

(b) In respect of others 32,308 31,080

(ii) Performance Guarantees

(a) In respect of Joint Ventures

(b) In respect of others 290 258

(iii) Outstanding guarantees furnished to Banks and Financial Institutions including in respect of Letters of Credit

(a) In respect of Joint Ventures 700 160

(b) In respect of others 4,843 5,099

(C) Other Money for which the company is contingently liable

(i) Liability in respect of bills discounted with Banks (Including third party bills discounting)

(a) In respect of Joint Ventures

(b) In respect of others 4,970 3,961

(II) Commitments

(A) Estimated amount of contracts remaining to be executed on capital account and not provided for:

(a) In respect of Joint Ventures 1,168 441

(b) In respect of others 25,349 7,948

(B) Other commitments

(a) Sales tax deferral liability assigned 1,563 2,345

(b) Guarantee against future cash calls* 2,917 1,645

* The Company has issued guarantees against future cash calls to be made by JV Partners of its wholly owned subsidiary Reliance Marcellus LLC.

(III) The Income-Tax assessments of the Company have been completed up to Assessment Year 2010-11. The disputed demand outstanding up to the said Assessment Year is Rs. 1,207 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 is considered necessary.

b) Foreign Currency exposures that are not hedged by derivative instruments as on 31st March 2014 amounting to Rs. 64,918 crore (Previous Year Rs. 71,627 crore). The unheeded exposures are naturally hedged by future foreign currency earnings and earnings linked to foreign currency.

7. As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Consolidated Financial Statements.

8. The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively read with General Circular No. 08/2014 dated 4th April 2014 has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.


Mar 31, 2013

1.1 162,67,93,078 Shares were allotted as Bonus Shares in the last five years by capitalisation of Securities Premium (162,67,93,078) and Reserves.

1.2 6,92,52,623 Shares were allotted in the last five years pursuant to the various Schemes of amalgamation (12,93,93,183) without payments being received in cash.

1.3 45,04,27,345 Shares were allotted on conversion / surrender of Debentures and Bonds, conversion of Term (45,04,27,345) Loans, exercise of warrants, against Global Depository Shares (GDS) and re-issue of forfeited equity shares, since inception.

1.4 17,18,83,624 Shares held by Subsidiaries do not have Voting Rights and are not eligible for Bonus Shares (17,18,83,624)

1.5 4,62,46,280 Shares were bought back and extinguished in the last five years. (36,63,431)

1.6 The Company has reserved issuance of 13,37,43,590 (Previous year 13,39,30,481) 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, the Company has not granted any options to the eligible employees [Previous year 68,817 options, which includes 4,100 options at a price of Rs. 972 per option, 18,000 options at a price of Rs. 871 per option, 23,717 options at a price of Rs. 847 per option, 15,000 options at a price of Rs. 765 per option and 8,000 options at a price of Rs. 715 per option plus all applicable taxes, as may be levied in this regard on the Company]. The options would vest over a maximum period of 7 years or such other period as may be decided by the Employees Stock Compensation Committee from the date of grant based on specified criteria.

1.7 Share application money pending allotment represents application money received on account of employees stock option scheme.

2.1 Non Convertible Debentures referred above to the extent of:

a) Rs. 1,593 crore are secured by way of first mortgage / charge on the immovable properties situated at Hazira Complex and at Jamnagar Complex (other than SEZ units) of the Company.

b) Rs. 2,500 crore are secured by way of first mortgage / charge on the immovable properties situated at Jamnagar Complex (other than SEZ units) of the Company.

c) Rs. 1,300 crore are secured by way of first mortgage / charge on all the properties situated at Hazira Complex and at Patalganga Complex of the Company.

d) Rs. 50 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.

e) Rs. 30 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.

f) Rs. 51 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.

g) Rs. 500 crore are secured by way of first mortgage / charge on the immovable properties situated at Jamnagar Complex (SEZ unit) of the Company.

2.2 Bonds include, 5.875% Senior Perpetual Notes (the "Notes") of Rs. 4,343 crore. The Notes have no fixed maturity date and the Company will have an option, from time to time, to redeem the Notes, in whole or in part, on any semi- annual interest payment date on or after February 5, 2018 at 100% of the principal amount plus accrued interest.

3. Working capital loans are secured by hypothecation of present and future stock of raw materials, stock-in-process, finished goods, stores and spares (not relating to plant and machinery), book debts, outstanding monies, receivables, claims, bills, materials in transit, etc. save and except receivables of Oil and Gas Division.

* Includes statutory dues, security deposit and advance from customers.

# These figures do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund except Rs. 10 crore (Previous Year Rs. 9 crore) which is held in abeyance due to legal cases pending.

# 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, 2012 of Rs. 326 crore as per the estimated pattern of despatches. During the year, Rs. 326 crore was utilised for clearance of goods. Provision recognised under this class for the year is Rs. 336 crore which is outstanding as on 31st March, 2013. Actual outflow is expected in the next financial year. The Company had recognised customs duty liability on goods imported of Rs. 704 crore as at 31st March, 2012. During the year, further provision of Rs. 339 crore was made and sum of Rs. 296 crore was reversed on fulfillment of export obligation. Closing balance on this account as at 31st March, 2013 is Rs. 747 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 seriously prejudice the position of the Company.

4. Leasehold Land includes Rs. 203 crore (Previous Year RS. 203 crore) in respect of which lease-deeds are pending execution.

4.1 Buildings include :

i) Cost of shares in Co-operative Housing Societies Rs. 1 crore (Previous Year Rs. 1 crore).

ii) Rs. 5 crore (Previous Year Rs. 5 crore) in respect of which conveyance is pending.

iii) Rs. 93 crore (Previous Year Rs. 93 crore) in shares of Companies / Societies with right to hold and use certain area of Buildings.

4.2 Intangible assets - Others include :

i) Jetties amounting to Rs. 812 crore (Previous Year Rs. 812 crore), the Ownership of which 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.

ii) Rs. 8,367 crore (Previous Year Rs. 8,387 crore) in preference shares of subsidiaries and lease premium paid with right to hold and use Land and Buildings.

4.3 Capital Work-in-Progress and Intangible Assets under development include :

i) Rs. 2,795 crore (Previous Year Rs. 2,320 crore) on account of project development expenditure.

ii) Rs. 4,685 crore (Previous Year Rs. 933 crore) on account of cost of construction materials at site.

4.4 Gross Block includes Rs. 12,901 crore added on revaluation of Building, Plant & Machinery and Equipments as at 01.01.2009 based on reports issued by international values.

4.5 Additions in Plant and Machinery, Capital Work-in-Progress, Intangible Assets - Development Rights and Intangible Assets under development includes Rs. 5,070 crore (net loss) [Previous Year Rs. 7,558 crore (net loss)] on account of exchange difference during the year.

4.6 The Gross Block of Fixed Assets includes RS. 38,122 crore (Previous Year Rs. 38,122 crore) on account of revaluation of Fixed Assets carried out since inception. Consequent to the said revaluation there is an additional charge of depreciation of RS. 2,072 crore (Previous Year RS. 2,340 crore) and an equivalent amount has been withdrawn from Revaluation Reserve and credited to the Profit and Loss Account. This has no impact on profit for the year.

4.7 Additions for the year includes freehold land Rs. 56 crore, buildings Rs. 674 crore, plant and machinery Rs. 1,189 crore, furniture and fixtures Rs. 12 crore, vehicles Rs. 10 crore and software Rs. 1 crore on amalgamation of Reliance Jamnagar Infrastructure Limited with the Company. Accumulated depreciation of Rs. 603 crore on the above assets has included in depreciation for the year. (Refer Note No. 33)

The Company''s Provident Fund is exempted under section 17 of Employees'' Provident Fund and Miscellaneous Provisions Act, 1952. Conditions for grant of exemption stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the trust vis-a-vis statutory rate.

Defined Benefit Plan

The employees'' gratuity fund scheme managed by a Trust (Life Insurance Corporation of India for SEZ unit of the Company) 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 recognised in the same manner as gratuity.

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.

5. The Company had announced Voluntary Separation Scheme (VSS) for the employees during the previous year. A sum of Rs. NIL (Previous Year Rs. 5 crore) has been paid during the year and debited to Statement of Profit and Loss under the head "Employee Benefits Expense".

5.1 A sum of Rs. 3 crore [Previous Year Rs. 1 crore is included under establishment expenses representing Net Prior Period Items.

6. 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:

7. Fixed assets taken on finance lease prior to 1st April, 2001, amount to Rs. 444 crore (Previous Year Rs. 444 crore). Future obligations towards lease rentals under the lease agreements as on 31st March, 2013 amount to Rs. 2 crore (Previous Year Rs. 3 crore).

Disclosure in Respect of Material Related Party Transactions during the year :

1. Purchase of Fixed Assets include Reliance Fresh Limited Rs. 1 crore (Previous Year Rs. 2 crore), Reliance Industrial Infrastructure Limited Rs. 2 crore (Previous Year Rs. 1 crore), Reliance Jamnagar Infrastructure Limited Rs. NIL (Previous Year Rs. 2 crore), Reliancedigital Retail Limited Rs. 4 crore (Previous Year Rs. 1 crore), Reliance Ports and Terminals Limited Rs. 41 crore (Previous Year Rs. 104 crore), Reliance Footprint Limited RS. 1 crore (Previous Year Rs. NIL), Reliance Security Solutions Limited Rs. 3 crore (Previous Year Rs. NIL), Reliance Haryana SEZ Limited Rs. 43 crore (Previous Year Rs. NIL).

2. Purchase / Subscription of Investments include Reliance Exploration & Production DMCC Rs. NIL (Previous Year Rs. 558 crore), Reliance Exploration & Production Mauritius Limited Rs. NIL (Previous Year Rs. 348 crore), Reliance Oil & Gas Mauritius Limited Rs. NIL (Previous Year Rs. 95 crore), Reliance Jio Infocomm Limited Rs. 2,647 crore (Previous Year Rs. 642 crore), Reliance Retail Limited Rs. NIL (Previous Year Rs. 2,580 crore ), RIL (Australia) Pty Limited Rs. 3 crore (Previous Year Rs. 2 crore), Reliance Commercial Associates Limited Rs. 5,667 crore (Previous Year Rs. NIL).

3. Sale / Transfer of Investments include to Reliance Energy Generation and Distribution Limited Rs. NIL (Previous Year Rs. 3,265 crore), Reliance Industrial Investments and Holdings Limited Rs. 1,544 crore (Previous Year Rs. NIL), Reliance Universal Ventures Limited Rs. 7,800 crore (Previous Year Rs. NIL).

Redemption of Investments by Reliance Global Business B.V Rs. 49 crore (Previous Year Rs. NIL), Reliance Industries (Middle East) DMCC Rs. 431 crore (Previous Year Rs. NIL), Reliance Exploration & Production DMCC Rs. 1,673 crore (Previous Year Rs. NIL), Reliance Netherlands B.V Rs. 1 crore (Previous Year Rs. NIL).

4. Capital Advances given include Reliance Haryana SEZ Limited Rs. NIL (Previous Year Rs. 42 crore), Reliance Industrial Infrastructure Limited Rs. 2 crore (Previous Year Rs. NIL).

5. Loans given during the year include Reliance Industrial Investments and Holdings Limited Rs. 7,684 crore (Previous Year Rs. 2,625 crore), Reliance Retail Limited Rs. 303 crore (Previous Year RS. 617 crore), Reliance Exploration & Production DMCC Rs. 71 crore (Previous Year Rs. NIL), Reliance Brands Limited Rs. 11 crore (Previous Year Rs. NIL). Deposits given during the year include Gujarat Chemical Port Terminal Company Limited Rs. 27 crore (Previous Year Rs. 17 crore). Loans returned during the year include Gapco Tanzania Limited Rs. NIL (Previous Year Rs. 84 crore), Reliance Exploration & Production DMCC Rs. NIL (Previous Year Rs. 8 crore).

Advances in the nature of application money returned during the year Reliance Prolific Traders Private Limited Rs. 523 crore (Previous Year Rs. NIL).

6. Revenue from Operations include to Reliance Jamnagar Infrastructure Limited Rs. NIL (Previous Year Rs. 1 crore), Reliance Retail Limited Rs. NIL (Previous Year Rs. 6 crore), Gapco Kenya Limited Rs. 6,559 crore (Previous Year Rs. 4,559 crore), Gapco Tanzania Limited RS. 2,937 crore (Previous Year Rs. 526 crore), Recron (Malaysia) Sdn Bhd Rs. 367 crore (Previous Year Rs. 124 crore), Reliance Trends Limited Rs. 6 crore (Previous Year Rs. 5 crore), LPG Infrastructure (India) Limited Rs. 392 crore (Previous Year Rs. 269 crore), Reliance Petro Marketing Limited Rs. 77 crore (Previous Year Rs. 216 crore), RIL USA Inc. Rs. 14,242 crore (Previous Year RS. 12,572 crore), Reliance Industrial Investments and Holdings Limited Rs. 679 crore (Previous Year Rs. 733 crore), Reliance Fresh Limited RS. 9 crore (Previous Year Rs. 6 crore), Reliance Gems and Jewels Limited Rs. 475 crore (Previous Year Rs. 504 crore), Reliance Utilities Private Limited Rs. NIL (Previous Year Rs. 145 crore), Reliance Utilities and Power Private Limited Rs. 243 crore (Previous Year RS. NIL), Reliance Ports and Terminals Limited Rs. 6 crore (Previous Year RS. 20 crore), Reliance Gas Transportation Infrastructure Limited RS. 86 crore (Previous Year Rs. 147 crore), Reliance Corporate IT Park Limited Rs. 2 crore (Previous Year RS. 5 crore), Reliance Industries (Middle East) DMCC Rs. NIL (Previous Year Rs. 100 crore), Reliance Jio Infocomm Limited Rs. 408 crore (Previous Year Rs. 35 crore), Reliance digital Retail Limited Rs. 4 crore (Previous Year Rs. NIL), Reliance Progressive Traders Private Limited Rs. 5 crore (Previous Year Rs. NIL), Reliance Prolific Traders Private Limited Rs. 1 crore (Previous Year Rs. NIL), Reliance Eminent Trading & Commercial Private Limited RS. 2 crore (Previous Year Rs. NIL), Gujarat Chemical Port Terminal Company Limited Rs. 1 crore (Previous Year Rs. NIL).

7. Other Income from Reliance Industrial Investments and Holdings Limited Rs. 371 crore (Previous Year Rs. 315 crore), Reliance Ventures Limited Rs. 108 crore (Previous Year Rs. 40 crore), Reliance Strategic Investments Limited Rs. 86 crore (Previous Year Rs. 71 crore), Reliance Exploration & Production DMCC Rs. 2 crore (Previous Year Rs. NIL), Gapco Kenya Limited Rs. 2 crore (Previous Year Rs. 4 crore), Gapco Tanzania Limited Rs. 2 crore (Previous Year RS. 4 crore), Recron (Malaysia) Sdn Bhd RS. 6 crore (Previous Year Rs. 7 crore), Reliance Jio Infocomm Limited Rs. 41 crore (Previous Year Rs. 39 crore), Reliance Retail Limited Rs. 72 crore (Previous Year Rs. 16 crore), RIL USA Inc. Rs. 25 crore (Previous Year RS. 18 crore), Reliance Holdings USA Inc. Rs. 122 crore (Previous Year Rs. 132 crore), Reliance Eagleford Upstream Holding LP RS. NIL (Previous Year Rs. 2 crore), Reliance Marcellus LLC Rs. 3 crore (Previous Year Rs. 10 crore), Reliance Corporate IT Park Limited Rs. 1 crore (Previous Year Rs. 3 crore), Reliance Industrial Infrastructure Limited Rs. NIL (Previous Year Rs. 2 crore), Reliance Europe Limited Rs. 5 crore (Previous Year Rs. 5 crore), Gapco Uganda Limited Rs. 1 crore (Previous Year Rs. 1 crore), Reliance Gems and Jewels Limited Rs. NIL (Previous Year Rs. 11 crore), Reliance Utilities and Power Private Limited Rs. 3 crore (Previous Year Rs. NIL), Reliance Ports and Terminals Limited Rs. 1 crore (Previous Year Rs. NIL).

8. Purchases / material consumed from Recron (Malaysia) Sdn Bhd Rs. 1 crore (Previous Year Rs. 2 crore), Reliance Petro Marketing Limited Rs. 2 crore (Previous Year Rs. 3 crore), Reliance Jamnagar Infrastructure Limited Rs. NIL (Previous Year Rs. 350 crore), Reliance Ports and Terminals Limited Rs. 154 crore (Previous Year Rs. 138 crore), Reliance Industrial Infrastructure Limited Rs. 12 crore (Previous Year Rs. 11 crore), Reliance Footprint Limited Rs. 2 crore (Previous Year Rs. 2 crore), Gujarat Chemical Port Terminal Company Limited Rs. 1 crore (Previous Year Rs. 2 crore), Reliance Industries (Middle East) DMCC Rs. 2,314 crore (Previous Year Rs. NIL).

9. Electric Power, Fuel and Water charges paid to Reliance Utilities and Power Private Limited Rs. 1,325 crore (Previous Year Rs. 369 crore), Reliance Utilities Private Limited Rs. NIL (Previous Year Rs. 771 crore).

10. Hire Charges paid to Reliance Industrial Infrastructure Limited Rs. 30 crore (Previous Year Rs. 21 crore), Gujarat Chemical Port Terminal Company Limited Rs. 57 crore (Previous Year Rs. 66 crore), Reliance Gas Transportation Infrastructure Limited Rs. 196 crore (Previous Year Rs. 235 crore), Reliance Ports and Terminals Limited Rs. 125 crore (Previous Year Rs. 86 crore), Reliance Corporate IT Park Limited Rs. NIL (Previous Year Rs. 1 crore).

11. Employee Benefits Expense include to Reliance People Serve Limited Rs. 3 crore (Previous Year Rs. 3 crore), Reliance Fresh Limited Rs. 3 crore (Previous Year Rs. 20 crore), Reliance Polyolefins Limited Rs. NIL (Previous Year Rs. 5 crore), Reliance Trends Limited Rs. NIL (Previous Year Rs. 1 crore).

12. Payment to Key Managerial Personnel include to Shri Mukesh D. Ambani Rs. 15 crore (Previous Year Rs. 15 crore), Shri Nikhil R. Meswani Rs. 11 crore (Previous Year Rs. 11 crore), Shri Hital R. Meswani Rs. 11 crore (Previous Year Rs. 11 crore), Shri P.M.S. Prasad Rs. 5 crore (Previous Year Rs. 5 crore), Shri P.K. Kapil RS. 2 crore (Previous Year Rs. 2 crore).

13. Sales and Distribution Expenses include to Reliance Fresh Limited Rs. NIL (Previous Year Rs. 43 crore), Reliance Ports and Terminals Limited Rs. 2,835 crore (Previous Year RS. 2,370 crore), Gujarat Chemical Port Terminal Company Limited Rs. 10 crore (Previous Year Rs. 11 crore), Reliance Jamnagar Infrastructure Limited Rs. NIL (Previous Year Rs. 7 crore), Gapco Kenya Limited Rs. NIL (Previous Year Rs. 3 crore ), Reliance Commercial Land and Infrastructure Limited Rs. 5 crore (Previous Year Rs. NIL), Reliance Polyolefins Limited Rs. 16 crore (Previous Year Rs. NIL).

14. Rent paid to Reliance Jamnagar Infrastructure Limited Rs. NIL (Previous Year Rs. 29 crore).

15. Professional Fees paid to Reliance Supply Chain Solutions Limited Rs. NIL (Previous Year Rs. 18 crore), Reliance Corporate IT Park Limited Rs. 736 crore (Previous Year Rs. 240 crore), Reliance Netherlands B.V Rs. NIL (Previous Year RS. 1 crore), Reliance Europe Limited Rs. 37 crore (Previous Year RS. 27 crore), GenNext Ventures LLP Rs. NIL (Previous Year Rs. 2 crore), Reliance Industrial Infrastructure Limited Rs. 19 crore (Previous Year Rs. 9 crore), Reliance Security Solutions Limited Rs. 1 crore (Previous Year Rs. NIL), Indiawin Sports Private Limited Rs. 23 crore (Previous Year Rs. NIL).

16. General Expenses include to Reliance Fresh Limited Rs. 14 crore (Previous Year Rs. 11 crore), Reliance Trends Limited Rs. 6 crore (Previous Year Rs. 3 crore), Reliance Gems and Jewels Limited Rs. 7 crore (Previous Year Rs. 7 crore), Reliance digital Retail Limited Rs. 1 crore (Previous Year Rs. 3 crore), India win Sports Private Limited Rs. 12 crore (Previous Year Rs. 14 crore), Reliance Commercial Dealers Limited Rs. 258 crore.

17. Donations to Dhirubhai Ambani Foundation Rs. 1 crore (Previous Year Rs. 86 crore), Jamnaben Hirachand Ambani Foundation Rs. 8 crore (Previous Year Rs. 8 crore), HNH Trust and HNH Research Society Rs. 2 crore (Previous Year Rs. 3 crore), Hirachand Govardhandas Ambani Public Charitable Trust Rs. 1 crore (Previous Year Rs. 1 crore), Reliance Foundation Rs. 206 crore (Previous Year Rs. 112 crore).

18. Finance Costs include to Reliance Corporate IT Park Limited Rs. 16 crore (Previous Year Rs. 18 crore).

19. Loans and Advances include Reliance Industrial Investments and Holdings Limited Rs. 17,642 crore (Previous Year Rs. 9,905 crore), Reliance Retail Limited Rs. 928 crore (Previous Year RS. 621 crore), Reliance Strategic Investments Limited Rs. NIL (Previous Year Rs. 22 crore), Gapco Kenya Limited Rs. 2 crore (Previous Year Rs. 2 crore), Gapco Tanzania Limited Rs. 2 crore (Previous Year Rs. 2 crore), Gapco Uganda Limited Rs. 1 crore (Previous Year RS. 1 crore), Reliance Jio Infocomm Limited RS. NIL (Previous Year Rs. 10 crore), Recron (Malaysia) Sdn Bhd Rs. 6 crore (Previous Year Rs. 7 crore), Reliance Europe Limited Rs. 8 crore (Previous Year Rs. 12 crore), RIL USA Inc. Rs. NIL (Previous Year Rs. 2 crore), Reliance Holding USA Inc. Rs. NIL (Previous Year Rs. 18 crore), Reliance Marcellus LLC Rs. NIL (Previous Year RS. 2 crore), Reliance Energy Generation and Distribution Limited RS. 3,265 crore (Previous Year Rs. 3,265 crore), Reliance Exploration & Production DMCC Rs. 72 crore (Previous Year RS. NIL), Reliance Corporate IT Park Limited Rs. 3 crore (Previous Year Rs. 20 crore), Reliance Prolific Traders Private Limited (Application Money) Rs. NIL (Previous Year Rs. 523 crore), Reliance Ventures Limited Rs. 42 crore (Previous Year Rs. NIL), Reliance Brands Limited Rs. 11 crore (Previous Year Rs. NIL).

20. Deposits include Reliance Jamnagar Infrastructure Limited Rs. NIL (Previous Year Rs. 299 crore), Gujarat Chemical Port Terminal Company Limited Rs. 69 crore (Previous Year Rs. 42 crore), Reliance Utilities and Power Private Limited Rs. 350 crore (Previous Year Rs. 200 crore), Reliance Ports and Terminals Limited Rs. 1,050 crore (Previous Year Rs. 1,050 crore), Reliance Utilities Private Limited RS. NIL (Previous Year Rs. 150 crore).

(d) The Government of India, by its letter of 02 May 2012 has communicated that it proposes to disallow certain costs which the PSC relating to Block KG-DWN-98/3 entitles RIL to recover. RIL continues to maintain that a Contractor is entitled to recover all of its costs under the terms of the PSC and there are no provisions that entitle the Government to disallow the recovery of any Contract Cost as defined in the PSC. The Company has already initiated arbitration on the above issue.

21. As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Consolidated Financial Statements.

22. The figures for the current year include figures of Reliance Jamnagar Infrastructure Limited (RJIL), the wholly owned subsidiary company engaged in infrastructure development and maintenance developer of the operating Special Economic Zone, which is amalgamated with the Company with effect from 1st April, 2011 as per the Scheme of Amalgamation (the Scheme) sanctioned by the Humble High Court of Gujarat at Ahmadabad, and are therefore to that extent not comparable with those of previous year.

The Scheme became effective on 22nd October, 2012, the appointed date of the Scheme being 1st April, 2011.

In accordance with the scheme and as per approval of the High Court:

a) The assets, liabilities, reserves, rights and obligations of erstwhile RJIL have been transferred to and vested with the Company with effect from 1st April, 2011 and have been recorded at their respective book values, under the pooling of interest method of accounting for amalgamation as prescribed in Accounting Standard

23. on Accounting for Amalgamations.

b) Being a wholly owned subsidiary company, 10,00,00,000 equity shares & 18,50,000, 10% non-cumulative optionally convertible preference shares of erstwhile RJIL held by the Company have been cancelled against Share Capital of the amalgamating company and no shares has been issued in pursuance to scheme of amalgamation.

c) Amount added on amalgamation to profit and loss account is inclusive of profit for the period 1st April 2011 till 31st March 2012 and is net of stamp duty paid on amalgamation.

(III) The Income-Tax assessments of the Company have been completed up to Assessment Year 2010-11. The disputed demand outstanding up to the said Assessment Year is Rs. 1,192 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.

24. The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.


Mar 31, 2012

1. The Company has reserved issuance of 13,39,30,481 (Previous year 13,52,79,244) 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, the Company has granted 68,817 [Previous year 35,200] Options to the eligible employees which includes 4,100 options at a price of Rs 972/- per option, 18,000 options at a price of Rs 871/- per option, 23,717 options at a price of Rs 847 per option, 15,000 options at a price of Rs 765 per option and 8,000 options at a price of Rs 715 per option (Previous year, 16,000 options at a price of Rs 995 per option and 19,200 options at a price of Rs 929 per option) plus all applicable taxes, as may be levied in this regard on the Company. The options would vest over a maximum period of 7 years or such other period as may be decided by the Employees Stock Compensation Committee from the date of grant based on specified criteria.

2. The Board of Directors of the Company approved the buyback of upto 12 crore fully paid up equity shares of Rs 10/- each, at a price not exceeding Rs 870/- payable in cash, upto an aggregate amount not exceeding Rs 10,440 crore from the open market through Stock Exchange(s). During the year, the Company has bought back and extinguished 36,63,431 Equity Shares of Rs 10/- each.

3. Non Convertible Debentures referred above to the extent of:

a) Rs 1,593 crore are secured by way of first mortgage / charge on the immovable properties situated at Hazira Complex and at Jamnagar Complex (other than SEZ unit) of the Company.

b) Rs 5,000 crore are secured by way of first mortgage / charge on the immovable properties situated at Jamnagar Complex (other than SEZ unit) of the Company.

c) Rs 1,720 crore are secured by way of first mortgage / charge on all the properties situated at Hazira Complex and at Patalganga Complex of the Company.

d) Rs 110 crore are secured by way of first mortgage / charge on certain properties situated at village Mouje Dhanot, District Kalol in the State of Gujarat and on fixed assets situated at Hoshiarpur Complex of the Company.

e) Rs 50 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 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 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.

h) Rs 500 crore are secured by way of first mortgage / charge on the immovable properties situated at Jamnagar Complex (SEZ unit) of the Company.

# 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, 2011 of Rs 345 crore as per the estimated pattern of despatches. During the year, Rs 345 crore was utilised for clearance of goods. Provision recognised under this class for the year is Rs 326 crore which is outstanding as on 31st March, 2012. Actual outflow is expected in the next financial year. The Company had recognised customs duty liability on goods imported under advance license of Rs 1,135 crore as at 31st March, 2011. During the year, further provision of Rs 1,243 crore was made and sum of Rs 1,674 crore was reversed on fulfilment of export obligation. Closing balance on this account as at 31st March, 2012 is Rs 704 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 seriously prejudice the position of the Company.

4. Leasehold Land includes Rs 203 crore (Previous Year Rs 203 crore) in respect of which lease-deeds are pending execution.

5. Buildings include :

i) Cost of shares in Co-operative Housing Societies Rs 1 crore (Previous Year Rs 1 crore).

ii) Rs 5 crore (Previous Year Rs 5 crore) in respect of which conveyance is pending.

iii) Rs 93 crore (Previous Year Rs 93 crore) in shares of Companies / Societies with right to hold and use certain area of Buildings.

6. Intangible assets - Others include :

i) Jetties amounting to Rs 812 crore (Previous Year Rs 647 crore), the Ownership of which 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.

ii) Rs 8,387 crore (Previous Year Rs 8,387 crore) in preference shares of subsidiaries and lease premium paid with right to hold and use Land and Buildings.

7. Capital Work-in-Progress and Intangible Assets under development include :

i) Rs 2,320 crore (Previous Year Rs 1,886 crore) on account of project development expenditure.

ii) Rs 933 crore (Previous Year Rs 666 crore) on account of cost of construction materials at site.

8. Gross Block includes Rs 12,901 crore added on revaluation of Building, Plant & Machinery and Equipments as at 01.01.2009 based on reports issued by international valuers.

9. Additions in Plant and Machinery, Intangible Assets - Development Rights and Intangible Assets under development includes Rs 7,558 crore (net loss) [Previous Year Rs 121 crore (net loss)] on account of exchange difference during the year.

10. The Gross Block of Fixed Assets includes Rs 38,122 crore (Previous Year Rs 38,122 crore) on account of revaluation of Fixed Assets carried out since inception. Consequent to the said revaluation there is an additional charge of depreciation of Rs 2,340 crore (Previous Year Rs 2,633 crore) and an equivalent amount has been withdrawn from Revaluation Reserve and credited to the Profit and Loss Account. This has no impact on profit for the year.

B) (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 (amalgamation in 2001-02) and Indian Petrochemicals Corporation Limited with the Company under the Schemes approved by the Hon'ble High Court of Judicature at Bombay and Gujarat and certain subsequent inter se transfer of shares.

11. The Company announced a Voluntary Separation Scheme (VSS) for the employees of one of the units during the year. A sum of Rs 5 crore (Previous Year Rs 3 crore) has been paid during the year and debited to Statement of Profit and Loss under the head 'Employee Benefits Expense'.

12. Fixed assets taken on finance lease prior to 1st April, 2001, amount to Rs 444 crore (Previous Year Rs 512 crore). Future obligations towards lease rentals under the lease agreements as on 31st March, 2012 amount to Rs 3 crore

Disclosure in Respect of Material Related Party Transactions during the year :

1. Purchase of Fixed Assets include Reliance Fresh Limited Rs 2 crore (Previous Year Rs NIL), Reliance Industrial Infrastructure Limited Rs 1 crore (Previous Year Rs NIL), Reliance Jamnagar Infrastructure Limited Rs 2 crore (Previous Year Rs NIL), Reliancedigital Retail Limited Rs 1 crore (Previous Year Rs NIL), Reliance Ports and Terminals Limited Rs 104 crore (Previous Year Rs NIL).

2. Purchase / Subscription of Investments include Reliance Industries (Middle East) DMCC Rs NIL (Previous Year Rs 20 crore), Reliance Exploration & Production DMCC Rs 558 crore (Previous Year Rs 440 crore) (including conversion of share application money of Rs 11 crore into Preference Shares), Reliance Global Business B.V. Rs NIL (Previous Year Rs 101 crore), Reliance Exploration & Production Mauritius Limited Rs 348 crore (Previous Year Rs 2,208 crore), Reliance Oil & Gas Mauritius Limited Rs 95 crore (Previous Year Rs 614 crore), Infotel Broadband Services Limited Rs 642 crore (Previous Year Rs 4,156 crore) (including conversion of share application money of Rs 46 crore into Equity Shares), Reliance Retail Limited Rs 2,580 crore (Previous Year Rs NIL) (including conversion of share application money of Rs 878 crore into Preference Shares), RIL (Australia) Pty Limited Rs 2 crore (Previous Year Rs 2 crore), Gujarat Chemicals Port Terminal Company Limited Rs NIL (Previous Year Rs 52 crore).

3. Sale / Transfer of Investments include to Reliance Energy Generation and Distribution Limited Rs 3,265 crore (Previous Year Rs NIL).

4. Capital Advances given include Reliance Haryana SEZ Limited Rs 42 crore (Previous Year Rs NIL).

5. Loans given during the year include Reliance Industrial Investments and Holdings Limited Rs 2,625 crore (Previous Year Rs 4,348 crore), Gujarat Chemicals Port Terminal Company Limited Rs 17 crore (Previous Year Rs 19 crore), Reliance Retail Limited Rs 617 crore (Previous Year Rs NIL). Loans returned during the year include Gapco Tanzania Limited Rs 84 crore (Previous Year Rs 180 crore), Reliance Exploration & Production DMCC Rs 8 crore (Previous Year Rs 15 crore), Reliance Gas Corporation Limited Rs NIL (Previous Year Rs 6 crore), Reliance Corporate IT Park Limited Rs NIL (Previous Year Rs 53 crore), Gujarat Chemicals Port Terminal Company Limited Rs NIL (Previous Year Rs 17 crore). Advances in the nature of application / call money advances to Reliance Retail Limited Rs NIL (Previous Year Rs 726 crore), Infotel Broadband Services Limited Rs NIL (Previous Year Rs 46 crore), Reliance Exploration & Production DMCC Rs NIL (Previous Year Rs 11 crore), Reliance Prolific Traders Private Limited Rs NIL (Previous Year Rs 523 crore).

6. Revenue from Operations include to Reliance Jamnagar Infrastructure Limited Rs 1 crore (Previous Year Rs NIL), Reliance Retail Limited Rs 6 crore (Previous Year Rs 136 crore), Gapco Kenya Limited Rs 4,559 crore (Previous Year Rs 3,750 crore), Gapco Tanzania Limited Rs 526 crore (Previous Year Rs 750 crore), Recron (Malaysia) Sdn Bhd Rs 124 crore (Previous Year Rs 41 crore), Reliance Trends Limited Rs 5 crore (Previous Year Rs 3 crore), LPG Infrastructure (India) Limited Rs 269 crore (Previous Year Rs 226 crore), Reliance Petro Marketing Limited Rs 216 crore (Previous Year Rs 809 crore), RIL USA Inc. Rs 12,572 crore (Previous Year Rs 10,210 crore), Reliance Industrial Investments and Holdings Limited Rs 733 crore (Previous Year Rs 948 crore), Reliance Fresh Limited Rs 6 crore (Previous Year Rs 2 crore), Reliance Gems and Jewels Limited Rs 504 crore (Previous Year Rs 59 crore), Reliance Utilities Private Limited Rs 145 crore (Previous Year Rs NIL), Reliance Ports and Terminals Limited Rs 20 crore (Previous Year Rs 5 crore), Reliance Gas Transportation Infrastructure Limited Rs 147 crore (Previous Year Rs 213 crore), Reliance Corporate IT Park Limited Rs 5 crore (Previous Year Rs NIL), Reliance Industries (Middle East) DMCC Rs 100 crore (Previous Year Rs NIL), Infotel Broadband Services Limited Rs 35 crore (Previous Year Rs NIL).

7. Other Income from Reliance Industrial Investments and Holdings Limited Rs 315 crore (Previous Year Rs 884 crore), Reliance Ventures Limited Rs 40 crore (Previous Year Rs 19 crore), Reliance Strategic Investments Limited Rs 71 crore (Previous Year Rs 10 crore), Reliance Jamnagar Infrastructure Limited Rs NIL (Previous Year Rs 2 crore), Reliance Exploration & Production DMCC Rs NIL (Previous Year Rs 1 crore), Gapco Kenya Limited Rs 4 crore (Previous Year Rs 2 crore), Gapco Tanzania Limited Rs 4 crore (Previous Year Rs 8 crore), Recron (Malaysia) Sdn Bhd Rs 7 crore (Previous Year Rs 5 crore), Infotel Broadband Services Limited Rs 39 crore (Previous Year Rs 13 crore), Reliance Retail Limited Rs 16 crore (Previous Year Rs 3 crore), RIL USA Inc. Rs 18 crore (Previous Year Rs 13 crore), Reliance Holdings USA Inc. Rs 132 crore (Previous Year Rs 60 crore), Reliance Eagleford Upstream Holding LP Rs 2 crore (Previous Year Rs 2 crore), Reliance Marcellus LLC Rs 10 crore (Previous Year Rs 9 crore), Reliance Corporate IT Park Limited Rs 3 crore (Previous Year Rs 6 crore), Reliance Industrial Infrastructure Limited Rs 2 crore (Previous Year Rs 2 crore), Reliance Europe Limited Rs 5 crore (Previous Year Rs 3 crore), Gapco Uganda Limited Rs 1 crore (Previous Year Rs NIL), Reliance Gems and Jewels Limited Rs 11 crore (Previous Year Rs NIL).

8. Purchases / material consumed from Recron (Malaysia) Sdn Bhd Rs 2 crore (Previous Year Rs 6 crore), Reliance Petro Marketing Limited Rs 3 crore (Previous Rs 108 crore), Reliance Jamnagar Infrastructure Limited Rs 350 crore (Previous Year Rs 392 crore), Reliance Ports and Terminals Limited Rs 138 crore (Previous Year Rs 1 crore), Reliance

Industrial Infrastructure Limited Rs 11 crore (Previous Year Rs NIL), Reliance Footprint Limited Rs 2 crore (Previous Year Rs NIL), Gujarat Chemicals Port Terminal Company Limited Rs 2 crore (Previous Year Rs NIL).

9. Electric Power, Fuel and Water charges paid to Reliance Utilities and Power Private Limited Rs 369 crore (Previous Year Rs 292 crore), Reliance Utilities Private Limited Rs 771 crore (Previous Year Rs 625 crore).

10. Hire Charges paid to Reliance Industrial Infrastructure Limited Rs 21 crore (Previous Year Rs 22 crore), Gujarat Chemicals Port Terminal Company Limited Rs 66 crore (Previous Year Rs 44 crore), Reliance Gas Transportation Infrastructure Limited Rs 235 crore (Previous Year Rs 652 crore), Reliance Ports and Terminals Limited Rs 86 crore (Previous Year Rs 72 crore), Reliance Corporate IT Park Limited Rs 1 crore (Previous Year Rs NIL).

11. Employee Benefits Expense to Reliance Retail Limited Rs NIL (Previous Year Rs 33 crore), Reliance People Serve Limited Rs 3 crore (Previous Year Rs 2 crore), Strategic Manpower Solutions Limited Rs NIL (Previous Year Rs 4 crore), Reliance Fresh Limited Rs 20 crore (Previous Year Rs 2 crore), Reliance Industrial Infrastructure Limited Rs NIL (Previous Year Rs 21 crore), Reliance Polyolefins Limited Rs 5 crore (Previous Year Rs NIL), Reliance Trends Limited Rs 1 crore (Previous Year Rs NIL).

12. Payment to Key Management Personnel include to Shri Mukesh D. Ambani Rs 15 crore (Previous Year Rs 15 crore), Shri Nikhil R. Meswani Rs 11 crore (Previous Year Rs 11 crore), Shri Hital R. Meswani Rs 11 crore (Previous Year Rs 11 crore), Shri P.M.S. Prasad Rs 5 crore (Previous Year Rs 2 crore), Shri P.K. Kapil Rs 2 crore (Previous Year Rs 2 crore).

13. Sales and Distribution Expenses include to Reliance Fresh Limited Rs 43 crore (Previous Year Rs 49 crore), Reliance Netherlands B.V. Rs NIL (Previous Year Rs 1 crore), Reliance Ports and Terminals Limited Rs 2,370 crore (Previous Year Rs 2,562 crore), Gujarat Chemicals Port Terminal Company Limited Rs 11 crore (Previous Year Rs 10 crore), Reliance Jamnagar Infrastructure Limited Rs 7 crore (Previous Year Rs NIL), Gapco Kenya Limited Rs 3 crore (Previous Year Rs NIL).

14. Rent paid to Reliance Jamnagar Infrastructure Limited Rs 29 crore (Previous Year Rs NIL).

15. Professional Fees paid to Reliance Supply Chain Solutions Limited Rs 18 crore (Previous Year Rs 9 crore), Reliance Corporate IT Park Limited Rs 240 crore (Previous Year Rs 102 crore), Reliance Netherlands B.V. Rs 1 crore (Previous Year Rs NIL), Reliance Europe Limited Rs 27 crore (Previous Year Rs 17 crore), GenNext Ventures LLP Rs 2 crore (Previous Year Rs NIL), Reliance Industrial Infrastructure Limited Rs 9 crore (Previous Year Rs NIL).

16. General Expenses include to Reliance Hypermart Limited Rs NIL (Previous Year Rs 2 crore), Reliance Retail Limited Rs NIL (Previous Year Rs 8 crore), Reliance Footprint Limited Rs NIL (Previous Year Rs 2 crore), Reliance Fresh Limited Rs 11 crore (Previous Year Rs 20 crore), Reliance Polyolefins Limited Rs NIL (Previous Year Rs 4 crore), Reliance Trends Limited Rs 3 crore (Previous Year Rs 3 crore), Reliance Gems and Jewels Limited Rs 7 crore (Previous Year Rs 2 crore), Reliance Industrial Infrastructure Limited Rs NIL (Previous Year Rs 9 crore), Reliancedigital Retail Limited Rs 3 crore (Previous Year Rs NIL), Indiawin Sports Private Limited Rs 14 crore (Previous Year Rs NIL).

17. Donations to Dhirubhai Ambani Foundation Rs 86 crore (Previous Year Rs 18 crore), Jamnaben Hirachand Ambani Foundation Rs 8 crore (Previous Year Rs 6 crore), HNH Trust and HNH Research Society Rs 3 crore (Previous Year Rs 2 crore), Hirachand Govardhandas Ambani Public Charitable Trust Rs 1 crore (Previous Year Rs NIL), Reliance Foundations Rs 112 crore (Previous Year Rs NIL).

18. Finance Costs include to Reliance Corporate IT Park Limited Rs 18 crore (Previous Year Rs 19 crore).

19. Loans and Advances include Reliance Industrial Investments and Holdings Limited Rs 9,905 crore (Previous Year Rs 7,792crore), Reliance Retail Limited Rs 621 crore (Previous Year Rs 879 crore), Reliance Strategic Investments Limited Rs 22 crore (Previous Year Rs NIL), Gapco Kenya Limited Rs 2 crore (Previous Year Rs NIL), Gapco Tanzania Limited Rs 2 crore (Previous Year Rs 85 crore), Gapco Uganda Limited Rs 1 crore (Previous Year Rs NIL), Infotel Broadband Services Limited Rs 10 crore (Previous Year Rs 59 crore), Recron (Malaysia) Sdn Bhd Rs 7 crore (Previous Year Rs 5 crore), Reliance Europe Limited Rs 12 crore (Previous Year Rs 7 crore), RIL USA Inc. Rs 2 crore (Previous Year Rs 1 crore), Reliance Holding USA Inc. Rs 18 crore (Previous Year Rs 60 crore), Reliance Eagleford Upstream Holding LP Rs NIL (Previous Year Rs 2 crore), Reliance Marcellus LLC Rs 2 crore (Previous Year Rs 9 crore), Reliance Energy Generation and Distribution Limited Rs 3,265 crore (Previous Year Rs NIL), Reliance Exploration and Production DMCC Rs NIL (Previous Year Rs 19 crore), Gujarat Chemicals Port Terminal Company Limited Rs NIL (Previous Year Rs 25 crore), Reliance Corporate IT Park Limited Rs 20 crore (Previous Year Rs 44 crore), Reliance Prolific Traders Private Limited (Application Money) Rs 523 crore (Previous Year Rs 523 crore).

20. Deposits includes Reliance Jamnagar Infrastructure Limited Rs 299 crore (Previous Year Rs 299 crore), Gujarat Chemicals Port Terminal Company Limited Rs 42 crore (including conversion of loan given) (Previous Year Rs NIL), Reliance Utilities and Power Private Limited Rs 200 crore (Previous Year Rs 200 crore), Reliance Ports and Terminals Limited Rs 1,050 crore (Previous Year Rs 1,050 crore), Reliance Utilities Private Limited Rs 150 crore (Previous Year Rs 150 crore).

21. The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.


Mar 31, 2011

1. The previous years 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.

Defined Benefit Plan

The employees gratuity fund scheme managed by a Trust (Life Insurance Corporation of India for SEZ unit of the Company) 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 recognised in the same manner as gratuity.

3. Turnover includes Income from Services of Rs. 79.95 crore (Previous Year Rs. 70.98 crore) and sales during trial run period of Rs. NIL (Previous Year Rs. 143.26 crore).

4. The Gross Block of Fixed Assets includes Rs. 38,121.98 crore (Previous Year Rs. 38,121.98 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. 2,633.75 crore (Previous Year Rs. 2,980.48 crore) and an equivalent amount, has been withdrawn from Revaluation Reserve and credited to the Profit and Loss Account. This has no impact on profit for the year.

5. The Company announced a Voluntary Separation Scheme (VSS) for the employees of one of the units during the year. A sum of Rs. 2.58 crore (Previous Year Rs. 19.56 crore) has been paid during the year and debited to Profit and Loss Account under the head "Payments to and Provisions for Employees".

8. A sum of Rs. 2.83 crore (net debit) [Previous Year Rs. 1.35 crore (net debit)] is included under establishment expenses representing Net Prior Period Items.

9. Pursuant to the scheme of arrangement to demerge certain undertakings which was approved by the Honble High Court of Bombay on 9th December, 2005, the Company had demerged assets and liabilities relatable to those demerged undertakings on the close of business on 31st August 2005. There have been certain claims relating to the above demerger / demerged undertakings which have been settled by the Company during the year and an additional amount of Rs. 703.52 crore has been appropriated against Revaluation Reserve.

10. Expenditure on account of Premium on forward exchange contracts to be recognised in the Profit and Loss account of subsequent accounting period aggregates Rs. 55.37 crore (Previous Year Rs. 81.66 crore).

16. RELATED PARTY DISCLOSURES :

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 Reliance Industrial Investments and Holdings Limited

2 Reliance Ventures Limited

3 Reliance Strategic Investments Limited

4 Reliance Industries (Middle East) DMCC

5 Reliance Jamnagar Infrastructure Limited

6 Reliance Retail Limited

7 Reliance Netherlands B.V.

8 Reliance Haryana SEZ Limited

9 Reliance Fresh Limited

10 Retail Concepts and Services (India) Limited

11 Reliance Retail Insurance Broking Limited

12 Reliance Dairy Foods Limited

13 Reliance Exploration & Production DMCC

14 Reliance Retail Finance Limited

15 RESQ Limited

16 Reliance Global Management Services Limited (amalgamated with Reliance Corporate IT Park Limited w.e.f. 01.04.2010)

17 Reliance Commercial Associates Limited

18 Reliancedigital Retail Limited

19 Reliance Financial Distribution and Advisory Services Limited Subsidiary Companies

20 RIL (Australia) Pty Limited

21 Reliance Hypermart Limited

22 Gapco Kenya Limited

23 Gapco Rwanda SARL

24 Gapco Tanzania Limited

25 Gapco Uganda Limited

26 Gapoil (Zanzibar) Limited

27 Gapoil Tanzania Limited (amalgamated with Gapco Tanzania Limited w.e.f. 01.08.2010)

28 Gulf Africa Petroleum Corporation

29 Transenergy Kenya Limited

30 Recron (Malaysia) Sdn Bhd

31 Reliance Retail Travel & Forex Services Limited

32 Reliance Brands Limited

33 Reliance Footprint Limited

34 Reliance Trends Limited

35 Reliance Wellness Limited

36 Reliance Lifestyle Holdings Limited

37 Reliance Universal Ventures Limited

38 Delight Proteins Limited

39 Reliance Autozone Limited

40 Reliance F&B Services Limited

41 Reliance Gems and Jewels Limited

42 Reliance Integrated Agri Solutions Limited

43 Strategic Manpower Solutions Limited

44 Reliance Agri Products Distribution Limited

45 Reliance Digital Media Limited

46 Reliance Food Processing Solutions Limited

47 Reliance Home Store Limited

48 Reliance Leisures Limited

49 Reliance Loyalty & Analytics Limited

50 Reliance Retail Securities and Broking Company Limited

51 Reliance Supply Chain Solutions Limited

52 Reliance Trade Services Centre Limited

53 Reliance Vantage Retail Limited

54 Wave Land Developers Limited

55 Reliance-Grand Optical Private Limited

56 Reliance Universal Commercial Limited

57 Reliance Petroinvestments Limited

58 Reliance Global Commercial Limited

59 Reliance People Serve Limited

60 Reliance Infrastructure Management Services Limited Subsidiary Companies

61 Reliance Global Business, B.V.

62 Reliance Gas Corporation Limited

63 Reliance Global Energy Services Limited

64 Reliance One Enterprises Limited

65 Reliance Global Energy Services (Singapore) Pte. Ltd.

66 Reliance Personal Electronics Limited

67 Reliance Polymers (India) Limited

68 Reliance Polyolefins Limited

69 Reliance Aromatics and Petrochemicals Limited

70 Reliance Energy and Project Development Limited

71 Reliance Chemicals Limited

72 Reliance Universal Enterprises Limited

73 International Oil Trading Limited

74 Reliance Review Cinema Limited

75 Reliance Replay Gaming Limited

76 Reliance Nutritional Food Processors Limited

77 RIL USA Inc.

78 Reliance Commercial Land & Infrastructure Limited

79 Reliance Corporate IT Park Limited

80 Reliance Eminent Trading & Commercial Private Limited

81 Reliance Progressive Traders Private Limited

82 Reliance Prolific Traders Private Limited

83 Reliance Universal Traders Private Limited

84 Reliance Prolific Commercial Private Limited

85 Reliance Comtrade Private Limited

86 Reliance Ambit Trade Private Limited

87 Reliance Petro Marketing Limited

88 LPG Infrastructure (India) Limited

89 Reliance Infosolutions Private Limited

(amalgamated with Reliance Corporate IT Park Limited w.e.f. 01.04.2010)

90 Reliance Corporate Center Limited

91 Reliance Convention and Exhibition Center Limited

92 Central Park Enterprises DMCC

93 Reliance International B. V.

94 Reliance Corporate Services Limited

95 Reliance Oil and Gas Mauritius Limited

96 Reliance Exploration and Production Mauritius Limited

97 Reliance Holding Cooperatief U.A.

98 Indiawin Sports Private Limited

99 Reliance Holding Netherlands B. V.

100 Reliance International Gas B. V.

101 Reliance Exploration and Production B. V.

102 Reliance Exploration and Production Limited Subsidiary Companies

103 Reliance Holding USA Inc.

104 Reliance Marcellus LLC

105 Infotel Broadband Services Limited

106 Reliance Strategic (Mauritius) Limited

107 Reliance Eagleford Midstream LLC

108 Reliance Eagleford Upstream LLC

109 Reliance Eagleford Upstream GP LLC

110 Reliance Eagleford Upstream Holding LP

111 Mark Project Services Private Limited

112 Reliance Energy Generation and Distribution Limited

113 Reliance Marcellus II LLC

114 Reliance Security Solutions Limited

115 Reliance Industries Investment and Holding Limited

116 Reliance Office Solutions Private Limited

117 Reliance Style Fashion India Limited

118 GenNext Innovation Ventures Private Limited

119 GenNext Ventures Private Limited

120 Reliance Home Products Limited

121 Infotel Telecom Limited

122 Reliance Styles India Private Limited

123 Rancore Technologies Private Limited

124 Reliance Industrial Infrastructure Limited

125 Reliance Europe Limited

126 Reliance LNG Limited

127 Indian Vaccines Corporation Limited

128 Gujarat Chemicals Port Terminal Company Limited Associates

129 Reliance Utilities and Power Private Limited

130 Reliance Utilities Private Limited

131 Reliance Ports and Terminals Limited

132 Reliance Gas Transportation Infrastructure Limited

133 Shri Mukesh D. Ambani

134 Shri Nikhil R. Meswani

135 Shri Hital R. Meswani Key Managerial Personnel

136 Shri P.M.S. Prasad

137 Shri P.K.Kapil (w.e.f. 16th May 2010)

138 Dhirubhai Ambani Foundation Enterprises over which

139 Jamnaben Hirachand Ambani Foundation Key Managerial Personnel

140 Hirachand Govardhandas Ambani Public Charitable Trust are able to exercise

141 HNH Trust and HNH Research Society significant influence

142 Reliance Foundation

 
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