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
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
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
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
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
4.4 Capital Work-in-Progress and Intangible Assets under development
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
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
2014 31st March,
(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
(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
(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
(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
(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
7. As per Accounting Standard (AS) 17 on Segment Reporting, segment
information has been provided under the Notes to Consolidated Financial
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.