Relaince Industries Annual Report 2009-2010 | Relaince Industries Limited Annual Report at Bindashyderabad.com
RELIANCE INDUSTRIES LIMITED
ANNUAL REPORT 2009-2010
DIRECTOR'S REPORT
Dear Shareholders,
Your Directors are pleased to present the 36th Annual Report and the
audited accounts for the financial year ended March 31, 2010.
Financial Results
The financial performance of the Company, for the year ended March 31, 2010
is summarised below:
2009-2010
Rs. crore $ Mn*
Profit before Depreciation,
Interest & Tax 33,041.18 7,359
Less: Interest 1,997.21 445
Depreciation 13,477.01
Less: Transfer from
Revaluation 2,980.48
Reserve 10,496.53 2,338
Profit before Tax 20,547.44 4,576
Less: Provision for
Current Taxation 3,111.77 693
Provision for
Fringe Benefit Tax - -
Provision for
Deferred Tax 1,200.00 267
Profit after Tax 16,235.67 3,616
Add: Balance in Profit
and Loss Account 5,384.19 1,199
Amount Available
for Appropriation 21,619.86 4,815
Appropriations:
General Reserve 14,000.00 3,118
Debenture Redemption Reserve 189.50 42
Dividend on Equity Shares 2,084.67 464
Tax on dividend 346.24 77
Balance carried to Balance Sheet 4,999.45 1,114
21,619.86 4,815
2008-2009
Rs. crore $ Mn*
Profit before Depreciation,
Interest & Tax 25,373.75 5,003
Less: Interest 1,745.23 344
Depreciation 7,182.43
Less: Transfer from
Revaluation 1,987.14
Reserve 5,195.29 1,025
Profit before Tax 18,433.23 3,634
Less: Provision for
Current Taxation 1,206.50 238
Provision for
Fringe Benefit Tax 56.87 11
Provision for
Deferred Tax 1860.54 367
Profit after Tax 15,309.32 3,018
Add: Balance in Profit
and Loss Account 4,363.29 861
Amount Available
for Appropriation 19,672.61 3,879
Appropriations:
General Reserve 11,728.92 2,312
Debenture Redemption Reserve 340.05 67
Dividend on Equity Shares 1,897.05 374
Tax on dividend 322.40 64
Balance carried to Balance Sheet 5,384.19 1,062
19,672.61 3,879
* 1$ = Rs. 44.90 Exchange Rate as on March 31, 2010 (1$ = Rs 50.72 as on
March 31, 2009).
Results of Operations
The year under review was a transformational year for the Company. The
Company has set new global benchmarks for project execution. This was a
landmark year for the Company for its operating performance with earnings
growth amidst extraordinary challenges of price volatility and demand
reduction.
During the year, the Company has scaled new heights and set several new
benchmarks in terms of sales, profits, networth and assets. Turnover for
the year was Rs. 2,00,400 crore ( $ 44.6 billion) against Rs. 1,46,328
crore in the previous year. Exports were higher by 24% at Rs. 1,10,176
crore ($ 24.5 billion). Profit after tax for the year was Rs. 16,236 crore
($ 3.6 billion) as against Rs. 15,309 crore ($ 3.1 billion).
The Company is one of India's largest contributors to the national
exchequer primarily by way of payment of taxes and duties to various
government agencies. During the year, a total of Rs. 17,972 crore ($ 4.0
billion) was paid in the form of various taxes and duties.
Dividend
Your Directors have recommended a dividend of Rs. 7/- per Equity Share
(last year Rs. 13/- per Equity Share on pre bonus share capital) for the
financial year ended March 31, 2010, amounting to Rs. 2,430 crore
(inclusive of tax of Rs. 346 crore) one of the highest ever payout by any
private sector domestic company. The dividend will be paid to members whose
names appear in the Register of Members as on May 11, 2010; in respect of
shares held in dematerialised form, it will be paid to members whose names
are furnished by National Securities Depository Limited and Central
Depository Services (India) Limited as beneficial owners.
The dividend payout for the year under review has been formulated in
accordance with the Company's policy to pay sustainable dividend linked to
long term performance, keeping in view the Company's need for capital for
its growth plans and the intent to finance such plans through internal
accruals to the maximum.
Credit Rating
The Company continues to have the highest domestic credit ratings of AAA
from CRISIL and Fitch. Moody's and S&P have reaffirmed investment grade
ratings for international debt of the Company, as Baa2 and BBB,
respectively. The Company's international rating from S&P is higher than
the country's sovereign rating. Strong credit ratings by leading
international agencies reflect the Company's financial discipline and
prudence.
Employees Stock Option Scheme
The Company implemented the Employees Stock Option Scheme (Scheme'') in
accordance with the Securities and Exchange Board of India (Employee Stock
Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 ('the
SEBI Guidelines'). The Employees Stock Compensation Committee, constituted
in accordance with the SEBI Guidelines, administers and monitors the
Scheme.
The applicable disclosures as stipulated under the SEBI Guidelines as at
March 31, 2010 (cumulative position) are given below:
a. (1) Options Granted 2,98,13,100 (Pre Bonus)
5,96,26,200 (Post Bonus)
b. (1) Exercise Price
Pre Bonus Post Bonus
Option Exercise Option Exercise
Granted Price Granted Price
2,87,28,000 1284* 5,74,56,000 642*
27,000 1684* 54,000 842*
10,08,000 2292* 20,16,000 1146*
50,100 1289* 1,00,200 644.5*
* Plus applicable taxes, as per law.
(1) In view of issue of Bonus shares in the ratio of one share for every
one share held as on record date, the number of Options has been doubled
and Exercise Price halved.
c. Options Vested 56,88,200
d. Options Exercised 10,71,912
e. The total number of shares arising as a 10,71,912
result of exercise of Options
f. Options Lapsed 85,94,874
g. Variation in terms of Options:
Subject to the conditions under the Scheme, the
vesting schedule from April, 2009 onwards has been
deferred by one year, save and except the options
due for deceased employees.
h. Money realised by exercise 68,81,67,504
of Options
i. Total number of Options in force 499,59,414
[(a) - (d) - (f)]
j. Employee wise details of Options granted
(Post Bonus) to:
i. Senior managerial personnel
1. Shri Nikhil R. Meswani 14,00,000
2. Shri Hital R. Meswani 14,00,000
3. Shri Hardev Singh Kohli 1,00,000
4. Shri P.M.S. Prasad 10,00,000
ii. Any other employee who received a grant in
any one year of Options amounting to 5%
or more of Options granted during that year Nil
iii. Identified employees, who were granted Nil
Options, during any one year, equal to
or exceeding 1% of the issued capital
(excluding outstanding warrants and
conversions) of the Company at the
time of grant
m. Diluted Earnings Per Share (EPS) before Rs. 49.65
exceptional items pursuant to issue of shares
on exercise of Options calculated in
accordance with Accounting Standard (AS)
20 'Earnings Per Share'.
The issuance of equity shares pursuant to exercise of Options does not
affect the profit and loss account of the Company, as the exercise is made
at the market price prevailing as on the date of the grant plus taxes as
applicable.
The Company has received a certificate from the Auditors of the Company
that the Scheme has been implemented in accordance with the SEBI Guidelines
and the resolution passed by the shareholders. The Certificate would be
placed at the Annual General Meeting for inspection by members.
Management's Discussion and Analysis Report
Management's Discussion and Analysis Report for the year under review, as
stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges in India, is presented in a separate section forming part of the
Annual Report.
The Company has entered into various contracts in the area of oil and gas,
refining and petrochemicals businesses. While benefits from such contracts
will accrue in future years, their progress is periodically monitored.
Some of the major events of the year include the following:
KG D6 completed 365 days of 100% uptime and zeroincident production. Gas
production from KG D6 has ramped up to 60 MMSCMD in a short span of 9
months from commencement. KG D6 has current production of about 60 MMSCMD.
The design capacity of the KG D6 deepwater gas production facilities were
assessed and achieved a flow rate of 80 MMSCM.
GSPAs have been executed in line with the Government of India's gas
utilization policy for over 69 MMSCMD in the fertilizers, power, city gas
distribution, steel, LPG, refinery and petrochemical sectors.
During the year, development of Panna-K (PK) area was completed.
The Company had made four new gas discoveries during the year.
* Dhirubhai-43 in Well AA1 in CB10 block
* Dhirubhai-44 in Well R1 in KGVD3 block
* Dhirubhai-45 in Well BF1 in CB10 block
* Dhirubhai-46 in Well AH1 in CB10 block
Subsequent to series of new discoveries in the southern and deeper areas of
the KG D6 block, an optimized development plan has been submitted to DGH in
December 2009.
Major events after the end of the financial year till the date of this
report are as under.
* The Company entered into a joint venture with USA based Atlas Energy,
Inc. (Atlas) under which the Company acquired 40% interest in Atlas's core
Marcellus Shale acreage position.
* The Company has become a partner in approximately 300,000 net acres of
undeveloped leasehold in the core area of the Marcellus Shale in
southwestern Pennsylvania for an acquisition cost of US$ 339 million and an
additional US$ 1.36 billion capital costs under a carry arrangement for 75%
of Atlas's capital costs over an anticipated seven and a half year
development program. While Atlas will serve as the development operator,
Reliance is expected to begin acting as development operator in certain
regions in the coming years as part of the joint venture.
* Atlas will continue acquiring leasehold in the Marcellus shale region and
the Company will have the option to acquire 40% share in all new acreages.
The Company has also obtained the right of first offer with respect to
potential future sales by Atlas of around 280,000 additional Appalachian
acres currently controlled by Atlas (not included in the present joint
venture).
The Hon'ble Supreme Court of India has delivered its judgment in the RNRL-
RIL legal dispute. The judgment recognized the dominant role of the
provisions of the Production Sharing Contract and has upheld the policies
formulated by the Government under which it has the authority to regulate
the production and distribution of natural gas.
In view of the findings of the judgment, the Company can sell gas only at
the price approved by the Government and only to the entities who have been
allocated gas under the Gas Utilisation Policy. RIL has no ability to
deviate from price, quantity and tenure as determined under Government's
policies, or to discriminate amongst various consumers.
The judgment of the Hon'ble Supreme Court has set at rest numerous issues
which had been raised in relation to the gas discovered and produced by the
Company.
Subsidiaries
Ministry of Corporate Affairs, Government of India has granted approval
that the requirement to attach various documents in respect of subsidiary
companies, as set out in sub-section (1) of Section 212 of the Companies
Act, 1956, shall not apply to the Company. Accordingly, the Balance Sheet,
Profit and Loss Account and other documents of the subsidiary companies are
not being attached with the Balance Sheet of the Company.
Financial information of the subsidiary companies, as required by the said
approval, is disclosed in the Annual Report. The Company will make
available the Annual Accounts of the subsidiary companies and the related
detailed information to any member of the Company who may be interested in
obtaining the same. The annual accounts of the subsidiary companies will
also be kept open for inspection at the Registered Office of the Company
and that of the respective subsidiary companies. The Consolidated Financial
Statements presented by the Company include financial results of its
subsidiary companies.
Details of major subsidiaries of the Company are covered in Management's
Discussion and Analysis Report forming part of the Annual Report.
Directors
Shri Pawan Kumar Kapil was appointed as an additional Director effective
May 16, 2010. He was also appointed as wholetime director designated as
Executive Director for three years. In terms of Section 260 of the
Companies Act, 1956 he shall hold office only upto the date of the ensuing
Annual General Meeting. The Company has received requisite notice in
writing from a member proposing his candidature for the office of Director
liable to retire by rotation.
Shri Hital R. Meswani, Shri Mahesh P. Modi, Dr. Dharam Vir Kapur, Dr.
Raghunath A. Mashalkar, Directors, retire by rotation and being eligible,
offer themselves for reappointment at the ensuing Annual General Meeting.
Your Directors express their profound grief on the unexpected sudden demise
of Shri R. Ravimohan on December 28, 2009.
Shri H.S. Kohli, Director has resigned from the Board effective May 16,
2010.
The Board placed on record its deep sense of appreciation for the
invaluable contribution made by Shri H.S. Kohli and Shri R. Ravimohan
during their tenure as wholetime directors of the Company.
Group
Pursuant to intimation from the Promoters, the names of the Promoters and
entities comprising group' are disclosed in the Annual Report for the
purpose of the SEBI (Substantial Acquisition of Shares and Takeovers)
Regulations, 1997.
Directors' Responsibility Statement
Pursuant to the requirement under Section 217(2AA) of the Companies Act,
1956, with respect to Directors' Responsibility Statement, it is hereby
confirmed that:
(i) In the preparation of the annual accounts for the year ended March 31,
2010, the applicable accounting standards read with requirements set out
under Schedule VI to the Companies Act, 1956, have been followed and there
are no material departures from the same;
(ii) the Directors have selected such accounting policies and applied them
consistently and made judgements and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the
Company as at March 31, 2010 and of the profit of the Company for the year
ended on that date;
(iii) The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities;
and
(iv) The Directors have prepared the annual accounts of the Company on a
going concern' basis.
Consolidated Financial Statements
In accordance with the Accounting Standard AS-21 on Consolidated Financial
Statements read with Accounting Standard AS-23 on Accounting for
Investments in Associates and AS-27 on Financial Reporting of Interest in
Joint Ventures, the audited Consolidated Financial Statements are provided
in the Annual Report.
Auditors and Auditors' Report
M/s. Chaturvedi & Shah, Chartered Accountants, M/s. Deloitte Haskins &
Sells, Chartered Accountants and M/s. Rajendra & Co., Chartered
Accountants, Statutory Auditors of the Company, hold office until the
conclusion of the ensuing Annual General Meeting and are eligible for
reappointment.
The Company has received letters from all of them to the effect that their
reappointment, if made, would be within the prescribed limits under Section
224(1B) of the Companies Act, 1956 and that they are not disqualified for
reappointment within the meaning of Section 226 of the said Act.
The Notes on Accounts referred to in the Auditors' Report are self-
explanatory and do not call for any further comments.R....more
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Monday, May 31, 2010
Saturday, May 15, 2010
INDIAN PHILOSOPHY LATEST NEWS
I don't know in dis world , when I came here, but it should have been several centuries before. From those days to this day there has been lot of changes around me.Once upon a time, I used to see a vast empty space behind my ‘praharam’. There used to be less number of people wishing to see me that time. It was difficult to climb the seven hills and reach me. Only those who were bent on getting their wishes fulfilled from me would bother to climb up all the way and come.Now I can’t see beyond rushi ashramam. Even that I am able to see only partially. There are a lot of structures everywhere. People who are coming to me have grown manifold. Now-a-days, u think, u wish to see me, u can board a bus and come to me directly. Still u may have to stand for 3-4 hours in queue, but that is not as difficult as it was in those days.In the very initial days, it was only the tribes living here, who performed all the rituals. And then I started seeing a new set of people performing new poojas. New people had bought over the place from the tribes. In between again there was a problem. For some time my place was closed. Nobody came near me. And then one day another set of people started performing pooja’s on me. And their traditions are continuing today.
When these tribes were worshipping me, there was no difference amongst them. Anyone could seek my blessings. Then when new set of people came, they allowed only somebody and not somebody else. For long time this was the system. Some decade back, they started allowing everybody.
But now I am seeing they are again going back to the same discrimination system. They are allowing some people (VIP’s) to come closer and stay longer with me, while others are being whisked away from a distance.
The world is going round and round. I keep smiling all the time.
But people are changing. Those days, my pooja’s would be performed with all sincerity. Now I can see that people are just paying lip service. Many things are running in their mind, while their lips are chanting words praising ME..That day, there was this priest who was performing the ‘Archana’ on me. There was this ‘VIP’, who was allowed to come much closer to me and was staying there for long time. This priest, as he was performing the pooja, was thinking about the relationship between VIP and an actor. He was thinking how that beautiful actor had got into a relation with this ugly looking VIP. "It should all be for money.. If I had sufficient money, I could also get her probably" he continued his thinking...
The priest approached the VIP and gave the archana plate to him. He told the VIP "Please take the saranya plate..". His brain twisted his tongue to say saranya instead of archana, as he was thinking of saranya and not archana. The VIP was very much upset. The priest lost his job.
PRIYANKA CHOPRA NOT INTERESTED IN A HOLLYWOOD FILMS
After Priyanka refused the offer, director Tarsem Singh signed Freida Pinto to star opposite British actor Henry Cavill. Priyanka is currently shooting in Gulmarg and Srinagar for Saat Khoon Maaf and remained unavailable for comment.
"In fact that has always been a conscious effort throughout my career. I am fortunate enough to be enjoying films like Siddharth Anand's ANJAANA ANJAANI with Ranbir Kapoor on one hand and Vishalji's (Bhardwaj) next on another. Thankfully, it's all working out quite well." said Priyanka who believes in being versatile.
CLICK HERE FOR MORE IMAGES
SACHIN TENDULKAR HELPING FOR CANCER CHILDRENS
Call it an outpouring of faith or a measure of star-struck fans. But a single Tweet from Indian willow star Sachin Tendulkar could actually change the lives of many cancer-afflicted children. Twitter fans of the cricketer from across the country and the world — from Malad to Manhattan and from Fort to Florida — reached out to help children after he tweeted on Thursday.
In less than 24 hours since the cricketer tweeted on the social networking site for support, the kitty of the Sachin's Crusade Against Cancer in Children showed almost Rs 67 lakh. Several corporate houses and individuals ha signed up to dine with the Tendulkars on May 27 even as around a hundred individuals had electronically sent in sums ranging from Rs 100 to Rs 5,000 for the cause. "It is all about changing goodwill into support for a good cause," says Dr P Jagannath, the cancer surgeon whose website indiacancer.org has roped in Tendulkar for the charity drive.
The campaign's aim is to raise Rs 1 crore as the initial corpus. This would help the group raise Rs 10 lakh each year to help treatment of about 20 cancer-afflicted children. Cancer care is extremely expensive as it involves recurring costs for medicines, tests and surgery. Costs for some childhood cancers run into lakhs. "This campaign seeks to raise funds for children afflicted by cancer anywhere in India and under treatment in any good hospital," says the doctor.
Tweeting about his new drive on Thursday afternoon, Tendulkar exhorted his 2.85 lakh followers in Twitter-dom to "Join hands with me to give a new lease of life and hope to children afflicted from cancer". Fans can either chip in sums ranging rom Rs 2,000 to Rs 25,000 for the cause and get personally signed mementoes or meet the star to make higher contributions. On May 27, Tendulkar
Balakrishna SIMHA latest Movie Review | SIMHA latest Movie Gallery | SIMHA latest Movie Wallpapers | SIMHA latest Movie Photos | SIMHA latest Movie Hot Pics | SIMHA latest MovieReview
Film: Simha
Rating: 2.75/5
Banner: United Movies
Cast: Nandamuri Balakrishna, Nayantara, Sneha Ullal, Namitha, K R Vijaya, Saikumar (Malayalam), Hemanth, Rehman, Kota, Brahmi, Ali, Venu Madhav, Dharmavarapu, L B Sriram, Krishna Bhagawan, Jhansi and others
Music: Chakri
Cinematography: Arthur Wilson
Editing: Kotagiri Venkateswara Rao
Story, dialogues, screenplay, direction: Boyapati Sreenu
Producer: Paruchuri Kireeti
Release date: 30/04/2010
Yuvaratna is back and this time he has come up with a rather high voltage treat. How strong he has been and how the audience has received him this time, let us see.
Story:
Sriman Narayana (NBK) is a lecturer at a college and he is known for his strict way, he doesn’t stand injustice and bashes the bulbs out of anyone. In this process, he meets Janaki (Sneha) and she falls for him in due course. But Janaki has got a flashback which has to do with Sriman Narayana as well. What is that flashback? Who is Sriman Narayana? All this forms the rest of the story.
Performances:
Balakrishna has come back to his original form with his punch dialogues, typical body language and mass appeal. However, age is showing on him and voice has stuttered a bit, overall he carried his bit well with his blissful smile.
Sneha Ullal is sweet but her blank expressions still continue. She must learn to open her mouth and speak while saying the dialogues. Looks wise she rocks.
Nayantara looks elegant and is all decked up like a bride at all times. Her role was brief but she did justice to it.
Namitha covers half of the screen and seems to be building up pounds with each passing film. It is about time she does something about her flab.
K R Vijaya has come back after a hiatus of sorts but she still has that composure and grace, she was the apt choice for her role.
Sai Kumar (Malayalam) was okay, Aditya Menon was apt, he has strong screen presence, Brahmi was wasted, Ali was not used, Krishna Bhagawan was barely there, Venu brought few forced smiles, Rehman was standard, LB was regular, Kota was nice, Jeevi, Kinnera, Shravan, Anand Bharathi, Sana and others did their bit to add value.
Plus Points:
Music and songs
Background score
Minus Points:
Weak Comedy tracks
Old story line
Analysis:
After a long gap, it’s a relief for Balakrishna’s fans. The movie scores good this time. But there is no freshness in story line or narration part. It’s the same old cutting heads with axe and there is some change in the design of weapon. The climax sequence is lifted from Magadheera with the fight scene in the same old place where the protagonist’s father fights and dies.
The dialogues of Balayya brought good response in theatres:
Nenu maatladetappudu nee chevule pani cheyyali. Adi tappa vere edainaa pani cheste neeku next birth day undadhu.
Charitra srushtinchalanna, tiraga raayalanna maa vamsame cheyyaali
Although they aren’t great dialogues to underline, the fans those awaited an action packed movie from many years are taking them as holy sentences.
In a fight scene Balayya’s punch of the fist lands on the face of a patient who lies in coma for 28 years. The patient gets up instantly. Doctors get stunned and exclaim, “Wow! What a wonder. Science andani power itani punch lo undi”. Thank god! The director limited the exaggeration with one scene. Otherwise, it would have become another omnibus of exaggerations.
Songs scored good marks on a whole.
‘Simha Simha…’ was shot on Namita and Balakrishna and it’s visually just ok.
‘Orabba..’ is the number shot in a pub with Balayya, Namitha and Sneha Ullal. When Sneha Ullal was seen in a frame with Namitha, she looked like a scooty beside lorry.
‘Bangaru Konda..’ has captivated with rich costumes on Nayantara and Balayya.
‘Kanulara..’ is on Nayan, Balayya and family members in temple background which is good to watch
‘Janaki Janaki..’ is with Balayya and Sneha Ullal and that’s good to watch.
The song ‘Achcha hai acha hai…’ is missing totally.
First half is average with no exciting moments and the second half is packed with high dose action-, although predictable. On a whole, it’s a treat for fans, headache for family audiences and a disappointment for those who wish to watch something new and fresh.
Bottom Line: Better than Balayya's recent movies.
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