Notes to Accounts

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

Year End :

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
31st March, 2015

As at
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
(b) In respect of Others

798

414

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
(b) In respect of Others

20

700

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

(b) In respect of Others

865

1,168

20,569

25,349

787

1,563

1,315

2,917

(B) Other Commitments

(a) Sales Tax deferral liability
assigned
(b) Guarantee against future cash
calls **

* 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.
Source : Dion Global Solutions Limited

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