Reliance Industries

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:
 
                                                  2007-08     2006-07
 
 Employer’s Contribution to Provident Fund         44.61        42.59
 Employer’s Contribution to Superannuation Fund    10.00         9.98
 Employer’s Contribution to Pension Scheme         14.60        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.
 
 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 withdrawn from Revaluation Reserve and credited to the Profit and Loss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.
 
 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)
 
 Disclosure in Respect of Material Related Party Transactions during the
 year:
 
 1.  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).
 
 2.  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.
 
 3.  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).
 
 5.  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).
 
 8.  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).
 
 9.  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.
 
 18.  As per Accounting Standards (AS) 17 “Segment Reporting”, segment
 information has been provided in the Notes to Consolidated Financial
 Statements.
 
 19.  ADDITIONAL INFORMATION
 
                                                        (Rs. in crore)
                                             As at               As at
                                    31st March, 2008  31st March, 2007
 
 (C)  Contingent Liabilities
 
 (i) Outstanding guarantees furnished 
 to Banks and Financial Institutions
 including in respect of Letters of credit
 
 (a)   In respect of joint ventures           79.26             36.40
 
 (b)   In respect of others                2,456.91          2,932.10
 
 (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*               7,817.26          9,648.08
 
 * 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                  501.63           2,460.93
 
 (iv) Claims against the Company / 
 disputed liabilities not 
 acknowledged as debts
 
 (a)   In respect of joint ventures           43.22              46.83
 
 (b)   In respect of others                  781.63           1,086.08
 
 (v)   Performance Guarantees
 
 (a)   In respect of joint ventures            -                   -
 
 (b)   In respect of others                  275.44              92.54
 
 (vi) Sales tax deferral liability assigned 5,441.80          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.
 
 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.