MIRA INFORM REPORT

Report Date :

02.01.2007

IDENTIFICATION DETAILS

Name :	RELIANCE RETAIL LIMITED
Formerly Known As :	RELIANCE PETROLEUM RETAIL PRIVATE LIMITED
Registered Office :	9^th Floor, Maker Chambers, IV, 222 Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	17.03.1998
Com. Reg. No.:	11-114010
CIN No.: [Company Identification No.]	U17120MH1998PLC114010
TAN No.: [Tax Deduction & Collection Account No.]	MUMR19886G
PAN No.: [Permanent Account No.]	AAACR7402E
Legal Form :	A closely held public limited liability company. The company’s majority shares are held by Reliance Industries Limited
Line of Business :	To carry on the business of manufacturers, dealers, agents, factors, importers, exporters, merchants and financiers of all kinds of man-made fibres and man-made fibre yarns of all kinds, man-made fibre cords of all kinds and man made fibre fabrics of all kinds, mixed with or without mixing, materials like woollen, cotton, metallic or any other fibres of vegetable, mineral or animal origin, manufacturing such man-made fibres and man-made fibre product of all description and kinds with or without mixing fibres of other origin as described above by any process using petrochemicals of all description or by using vegetable or mineral oil or products of all description required to produce such man-made fibres and to carry on the business of manufacturing, buying, selling, exchanging, converting, altering, importing, exporting, processing, twisting or otherwise handling or dealing in or using or advising in the proper use of, cotton yarn, pure silk yarn, artificial silk yarn, staple fibre and such other fibre, fibres and fibrous materials, or allied products, by-products, substances or substitutes for all or any of them, or yarn or yarns, for textile or other use, as may be practicable.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 8500000
Status :	New Company
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a new diversification initiative in retail by Mr. Mukesh Ambani of Reliance Industries Limited, a fastest growing company in the country. The company intends to make huge investments in retail. Trade relations are fair. The company’s retail outlets in Hyderabad has already commenced and has been getting favourable response. The company can be considered good for any normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	9^th Floor, Maker Chambers, IV, 222 Nariman Point, Mumbai – 400021, Maharashtra
Tel. No. :	91-22-30325000
E-Mail :	sridhar.kothandaraman@ril.com
Corporate Office :	Tulsiani Chambers, 10^th Floor, Nariman Point, Mumbai – 400021, Maharashtra, India

DIRECTORS

Name :	Mr. Chandrakant Shripad Gokhale
Designation :	Director
Address :	A- 301, Falcon Castle Co-operative Housing Society Limited, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
Date of Birth/Age :	13.11.1944
Date of Appointment :	19.03.1998
Name :	Mr. Subodh Prakash Sapra
Designation :	Director
Address :	41 Bakhtawar, Narayan Dabholkar Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	21.09.1937
Date of Appointment :	19.03.1998
Name :	Mr. Rajen Dwarkadas Udeshi
Designation :	Director
Address :	502, Shanti Apartments, 5^th Floor, 98 Walkeshwar Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	31.01.1951
Date of Appointment :	19.03.1998
Name :	Mr. Mukesh Dhirubhai Ambani
Designation :	Director
Address :	‘Sea Wind’, 39 Cuffe Parade, Colaba, Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	19.04.1957
DIN/PAN No. :	00001695
Date of Appointment :	26.06.2006
Other Directorships :	L17110MH1977PLC019786 Reliance Industries Limited Chairman and Managing Director L23200GJ1969PLC001569 Indian Petrochemicals Corporation Limited Chairman U11100GJ2005PLC048030 Reliance Petroleum Limited Chairman U80101MH2002PLC136300 Pratham – India Education Initiative Director
Name :	Mr. Manoj Harjivandas Modi
Designation :	Director
Address :	Flat No. 7, Best Apartments, Walkeshwar, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	03.07.1957
DIN / PAN No. :	00056207
Date of Appointment :	26.06.2006
Other Directorships :	U11100GJ2005PLC048030 Reliance Petroleum Limited Director U72200KA1991PTC012483 Tally Solutions Private Limited Director
Name :	Mr. Dipak Chand Jain
Designation :	Director
Address :	915 Hamlin Street, Evanston, Illinois, 60201, U.S.A.
Date of Birth/Age :	09.06.1967
DIN / PAN No. :	00228513
Date of Appointment :	26.06.2006
Other Directorships :	L17110MH1977PLC019786 Reliance Industries Limited Director

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Jubilant Auto Fuels Trading Private Limited	1900
Avalanche Fuels Private Limited	1900
Infinity Fuels Private Limited	1900
Agni Fuels Private Limited	1450
Arthik Commercial Private Limited	1900
Steadfast Fuel Trading Private Limited	950

BUSINESS DETAILS

Line of Business :

To carry on the business of manufacturers, dealers, agents, factors, importers, exporters, merchants and financiers of all kinds of man-made fibres and man-made fibre yarns of all kinds, man-made fibre cords of all kinds and man made fibre fabrics of all kinds, mixed with or without mixing, materials like woollen, cotton, metallic or any other fibres of vegetable, mineral or animal origin, manufacturing such man-made fibres and man-made fibre product of all description and kinds with or without mixing fibres of other origin as described above by any process using petrochemicals of all description or by using vegetable or mineral oil or products of all description required to produce such man-made fibres and to carry on the business of manufacturing, buying, selling, exchanging, converting, altering, importing, exporting, processing, twisting or otherwise handling or dealing in or using or advising in the proper use of, cotton yarn, pure silk yarn, artificial silk yarn, staple fibre and such other fibre, fibres and fibrous materials, or allied products, by-products, substances or substitutes for all or any of them, or yarn or yarns, for textile or other use, as may be practicable.

GENERAL INFORMATION

Bankers :

Not Available

Banking Relations :	--
Auditors :	Chaturvedi & Shah Chartered Accountants, A- 3, Laxmi Towers, 1^st Floor, Bandra – Kurla Complex, Bandra [East], Mumbai – 400051, Maharashtra, India PAN No. : AAAFC0662N
Holding Company :	Reliance Industries Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000000	Equity Shares	Rs. 10/- each	Rs. 100000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
215050000	Equity Shares	Rs. 10/- each	Rs. 2150.500 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		2150.500	0.100	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		[0.053]	[0.053]	[0.044]
NETWORTH		2150.447	0.047	0.056
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.199	0.175
TOTAL BORROWING		0.000	0.199	0.175
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2150.447	0.246	0.231
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.000	0.000	0.000
Capital work-in-progress		0.179	0.000	0.000
INVESTMENT		15.070	0.236	0.222
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	0.666	0.014	0.012
	Loans & Advances	2110.200	0.000	0.000
Total Current Assets		2110.866	0.014	0.012
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.661	0.006	0.006
	Provisions	0.000	0.000	0.000
Total Current Liabilities		0.661	0.006	0.006
Net Current Assets		2110.205	0.008	0.006
MISCELLANEOUS EXPENSES		24.993	0.002	0.003
TOTAL		2150.447	0.246	0.231

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004
Sales Turnover [including other income]	Nil	Nil
Profit/(Loss) Before Tax	[0.008]	[0.010]
Provision for Taxation	0.000	0.000
Profit/(Loss) After Tax	[0.008]	[0.010.]
Total Expenditure	0.008	0.010

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	N.A.	N.A.	N.A.
Net Profit Margin (PBT/Sales)	(%)	N.A.	N.A.	N.A.
Return on Total Assets (PBT/Total Assets}	(%)	N.A.	[57.14]	[83.33]
Return on Investment (ROI) (PBT/Networth)		N.A.	[0.17]	[0.17]
Debt Equity Ratio (Total Liability/Networth)		0.00	4.36	3.23
Current Ratio (Current Asset/Current Liability)		3193.44	2.33	2.00

LOCAL AGENCY FURTHER INFORMATION

Reliance says it's ready for retail

Bureau

To make equity investment of up to Rs 100000 millions

Organized Retailing

Outlets will sell food, groceries, apparel and footwear, lifestyle and home improvement products, electronic goods and farm implements and inputs.

To also offer products and services in energy, travel, health and entertainment.

Partnerships would be developed to bring the best of global luxury brands.

HIS NEXT BIG IDEA: Mr Mukesh Ambani, Chairman, Reliance Industries, on his way to attend the company's AGM in Mumbai on Tuesday. — Paul Noronha

Mumbai, June 27

Reliance Industries Limited will make an equity investment of up to Rs 100000 millions, "over time," in a new company, Reliance Retail Limited that will manage the group's new retail initiative.

The size of the equity investment is in view of "the overarching nature of this initiative," said Mr. Mukesh Ambani, Chairman, RIL, at the company's AGM here on Tuesday.

The new company will spend more than Rs 250000 millions in the years to come, he said, outlining Reliance's giant ambitions in organized retailing.

Reliance Retail Limited (RRL) will be a wholly owned subsidiary of Reliance Industries, except for a holding in it through employee stock options.

Its retail outlets will sell food, groceries, apparel and footwear, lifestyle and home improvement products, electronic goods and farm implements and inputs. They will also offer products and services in energy, travel, health and entertainment. In addition to this, partnerships would be developed to bring the best of global luxury brands to India as well.

RRL's footprint will cover 1,500 Indian cities and towns and its outlets will be of a varied format, a mix of neighbourhood convenience stores, supermarkets, speciality stores and hypermarkets.

"Conceptually, Reliance is creating a virtuous circle of prosperity by bringing farmers, small shopkeepers and consumers in a win-win partnership," said Mr. Ambani, who called this new business of Reliance's a "defining point in its history."

The retail business would partner with farmers, logistics operators, small shopkeepers and traders and enhance their purchasing power, he said.

A supply chain, logistics and information technology infrastructure would string the whole plan together. RRL will also develop linkages and opportunities in agriculture and food processing that would support the organized retailing business.

The new business would generate one million new jobs, said Mr. Ambani. Already the initiative has 2,000 professionals on the job, their numbers would swell to 10000 as it progresses. Over the next few years they will be joined by another 0.500 million, he added.

Organized retailing, along with the next generation distribution system, is at the core of the transformational initiative at Reliance, he said.

Noting that several sectors are on the threshold of expansive growth, Mr. Ambani said Reliance would open up three broad fronts for itself: urban infrastructure and Special Economic Zones, and life science and healthcare. Reliance is also developing options for cross border acquisitions in existing and new businesses, he said.

The mega investment plan announced by RIL comes at a time when global retail majors are waiting in the wings to gain an Indian entry.

It would also bring a new level of competition to the existing players who do not have the financial strength of Reliance.

A data-based report of Reliance Industries Limited is enclosed below :

IDENTIFICATION DETAILS

Name :	RELIANCE INDUSTRIES LIMITED
Registered Office :	3^rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai – 400 021, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	04.08.1977
Com. Reg. No.	11-19786
CIN No.: [Company Identification No.]	U17110MH1977PLC019786
TAN No.: (Tax Deduction & Collection Account No.)	MUMRO9795C/MUMR00462A
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturers and Marketers of Fabrics, Polyester Filament Yarn, Polyester Staple Fibres, PTA, LAB, Ethylene Glycol, PVC, PE, PP, Crude Oil, Gas, Norman Paraffin, Fibre Fill, Ethylene, Propylene, Benzene, Xylene and Toluene.

LOCATIONS

Registered Office :	3^rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-30325000/30327000/22785000
Fax No.:	91-22-30322268
E-Mail :	info@ril.com, investor_relations@ril.com
Website :	http://www.ril.com
Corporate office :	Reliance Center, 19, Walchand Hirachand Marg, Ballard Estate, Mumbai-400038, Maharashtra, India
Tel No. :	91-22-30327000
Administrative Office :	Chitrakoot, 2^nd Floor, Shree Ram Mills Compound, Ganpatrao Kadam Marg, Worli, Mumbai – 400 013, Maharashtra
Tel. No.:	91-22-24962780/24981163/24981167/24981667-90
Factory :	v Patalganga Complex B-4 Industrial Area, Patalganga, Off Mumbai-Pune Road, Near Panvel, Dist. Raigad – 410 207, Maharashtra State, India. v Naroda Complex 103/106 Naroda Industrial Estate, Naroda, Ahmedabad – 382 330, Gujarat State, India. v Hazira Complex Village Mora, Bhatha P. O. Surat-Hazira Road, Surat – 394 510, Gujarat State, India. v Jamnagar Complex Village Meghpar/Padana, Taluka Lalpur, Jamnagar-361280, Gujarat, India
Refinery Complex :	Taluka Lalpur, District Jamnagar, Gujarat State
Branches :	Chitrakoot, Shree Ram Mills Compound, Ganpatrao Kadam Marg, Worli, Mumbai – 400 018, Maharashtra

DIRECTORS

Name :	Mr. Mukesh D. Ambani
Designation :	Chairman & Managing Director
Date of Appointment:	31.07.2002
Qualification:	Chemical Engineer from Mumbai University & MBA from Stanford University, U.S.A.
Other Directorship:	1) Reliance Europe Limited 2) Reliance Infocomm Limited 3) Reliance Communications I Infrastructure Limited 4) Chairman of Indian Petrochemicals Corporation Limited 5) Member of Shareholder’s/Investors Grievance Committee of the Board.
Name :	Mr. Nikhil R. Meswani
Designation :	Executive Director
Appointment:	Since 1990
Qualification:	Chemical Engineer
Name :	Mr. Hital R. Meswani
Designation :	Executive Director
Name :	Mr. H. S. Kohli
Designation :	Executive Director
Date of Appointment:	01.04. 2000
Experience:	In implementing and operation of petrochemical complexes.
Name :	Mr. Yogendra P. Trivedi
Designation :	Director
Date of Appointment:	16.04.1992
Experience :	In finance & taxation
Name :	Mr. S. Venkitaramanan
Designation :	ICICI Nominee Director
Name :	Mr. U. Mahesh Rao
Designation :	GIC Nominee Director
Name :	Mr. Ramiklal H. Ambani
Designation :	Director
Name :	Mr. Mansingh L. Bhakta
Designation :	Director
Name :	Dr. D. V. Kapur
Designation :	Director
Name :	Mr. M. P. Modi
Designation :	Director
Name :	Mr. Ashok Mishra
Designation :	Independent Director
Name :	Mr. Dipak C Jain
Designation :	Additional Director
Other Personnel :-
Name :	Mr. Vinod M. Ambani
Designation :	Company Secretary

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
PROMOTERS' HOLDINGS
Indian Promoters	176300346	12.63
Persons Acting in Concert	475326789	34.04
Non Promoter's Holdings
Mutual Funds and UTI	25793654	1.85
Banks, Financial Institutions and Insurance Companies	100010001	7.16
FIIs	308568588	22.10
Others
Private Corporate Bodies	16373960	1.17
Indian Public	196040295	14.04
NRIs / OCBs	12312742	0.88
The Bank of New York as Depository (for GDRs)	85651161	6.13

BUSINESS DETAILS

Line of Business :	Manufacturers and Marketers of Fabrics, Polyester Filament Yarn, Polyester Staple Fibres, PTA, LAB, Ethylene Glycol, PVC, PE, PP, Crude Oil, Gas, Norman Paraffin, Fibre Fill, Ethylene, Propylene, Benzene, Xylene and Toluene.
Products :	Item Code No. (ITC Code) 390210.00 Product Description Polypropylene (PP) Item Code No. (ITC Code) 540242.00 Product Description Polyester Filament Yarn (PFY) Item Code No. (ITC Code) 290243.00 Product Description Paraxylene (PX) Item Code No. (ITC Code) 27.10 Product Description Bulk Petroleum Products
Brand Names :	Recron Apparels, Home textiles Industrial sewing threads, Automotive Upholstery Recron Fibrefill Sleep Product: Pillows, Cushions, Toys, Quits, Mattresses Recron 3S Construction Industry (concrere/mortar), asbestos cement (sheet & pipe), paper industry (conventional & speciality), battery industry Recron Stretch Denims, shirting, suiting, dress material, T- shirt, sportswear, swimwear Recron Coutluk Shirting, Suiting, furnishing fabric, curtain and bed sheet Recron Dyefast Knitted cardigan, decorative fabric & home furnishing Recron Superblack Apparel, automotive, non-woven & interlling Recron Superdye Woven & knitted apparel, furnishing & home textile Fiber Intermediates Raw Material Relpet Packing-water, soft drinks, beverages, confectionery Repol Packaging-Woven sacks, TQ and BOPP films, Unipol containers Relene Packaging-woven sanks, films Reclair Packaging-films, squeeze bottles Reon Pipes & fittings, profiles Relpipe Irrigation, water supply, drainage, industrial effluents, telecom cable ducts, gas distribution Relab Detergents Vimal Apparels, fabrics Harmony Furnishing, home textiles RueRel Apparels, Fabrics Vimal V2 Apparels, Fabrics Reance Suits, shirts & trousers SlumbeRel Sleep products Refining Refinery of domestic & Industrial Fuel Oil & Gas Refining, power, fertilisers and petrochemicals
Exports to :	U.S.A., Canada, U.K., Ireland, France, Germany, Spain, The Netherlands, Italy, Greece, Belgium, Hungary, Australia, New Zealand, Argentina, Mexico, Chile, Brazil, Colombia, Hong Kong, Singapore, China, etc.

The company’s production capacity is as under:

Particulars	Unit	Licensed Capacity	Installed Capacity
Refining of Crude Oil	Mill. MT	NA	27
Ethylene	MT	750,000	750,000
Propylene	MT	365,000	365,000
Benzene	MT	291,000	345,000
Butadiene and Other C4s	MT	225,000	225,000
Toluene	MT	197,000	197,000
Xylene	MT	165,000	165,000
Purified Terepthalic Acid	MT	NA	1350,000
Polypropylene	MT	NA	1100,000
Poly Vinyl Chloride	MT	NA	300,000
Polyester Staple Fibre/Polyester Chips	MT	NA	300,000
High/Linear Low Density Polyethylene (Swing Plant)	MT	NA	450,000
Polyester Filament Yarn/Polyester Chips	MT	NA	197,300
Mono Ethylene Glycol	MT	300,000	300,000
Higher Ethylene Glycol	MT	37,500	37,500
Ethylene Oxide	MT	50,000	50,000
Linear Alkyl Benzene	MT	NA	115,000
Man-made Fibre spun yarn on worsted system (Spindles)	Nos.	NA	24,094
Man-made Fibre on cotton system (Spindles)	Nos.	NA	23,040
Man-made Fabrics (Looms)	Nos.	NA	323
Knitting M/C	Nos.	22	20
Paraxylene	MT	1,646,000	1,646,000
Orthoxylene	MT	150,000	150,000
Poly Ethylene Terephthalate	MT	NA	80,000
Polyester Staple Fibre Fill	MT	NA	30,000
High Density Polyethylene Pipes	MT	NA	80,000

PRODUCTION

Particulars	Unit	2003-04
Crude Oil	MT	353,173
Gas	BBTU	29,457
Petroleum Products	'000MT	23,662
Ethylene	MT	--
Propylene	MT	3,138
Benzene	MT	343,810
Toluene	MT	106,014
Xylene	MT	52,932
Paraxylene	MT	564,364
Orthoxylene	MT	205,932
Ethylene Glycol	MT	222,615
PVC	MT	314,515
PE	MT	449,305
PP	MT	1,092,581
PTA	MT	603,949
Polyester Filament Yarn	MT	314,531
Polyester Staple Fibres	MT	327,012
PET	MT	78,001
Fibre Fill	MT	27,854
Fabrics	Mtrs in millions	16.696
Normal Paraffin	MT	24,250
LAB	MT	116,815

GENERAL INFORMATION

No. of Employees :	12864
Bankers :	Ø ABN AMRO Bank, Mumbai Ø Allahabad Bank, Mumbai Ø Andhra Bank, Mumbai Ø Bank of America, Mumbai Ø Bank of Baroda, Mumbai Ø Bank of India, Mumbai Ø Canara Bank, Mumbai Ø Central Bank of India, Mumbai Ø Citibank N. A., Mumbai Ø Corporation Bank, Mumbai Ø Deutsche Bank, Mumbai Ø Dena Bank, Mumbai Ø HDFC Bank Limited, Mumbai Ø Hongkong Bank, Mumbai Ø ICICI Bank Limited, Mumbai Ø IDBI Bank Limited, Mumbai Ø Indian Bank, Mumbai Ø Indian Overseas Bank, Mumbai Ø Oriental Bank of Commerce, Mumbai Ø Punjab National Bank, Mumbai Ø State Bank of India, Mumbai Ø State Bank of Saurashtra, Mumbai Ø Standard Chartered Grindlays Bank Limited, Mumbai Ø Syndicate Bank, Mumbai Ø Union Bank of India, Mumbai Ø Vijaya Bank, Mumbai
Facilities :	SECURED LOANS: - 31.03.2005- A} Debentures-- Non-Convertible Debenture - - 93085.800 -- B] Deep Discount Debentures - 6000.000- Less: Unamortised Discount - 117.900- 5882.100- Total 98967.900 - Working Capital Loans-- From Banks -- A] Foreign Currency Loans---- B] Rupee Loans-- 15543.500 Grand Total-- 114511.400 UNSECURED LOANS: -- A} Long Term-- A] From Banks- 40641.200- B] From Others- 17968.300- 58609.500 -- B} Short Term -- From Banks-- 36325.700 Total-- 94935.200

Banking Relations :	Good
Auditors :	v Chaturvedi & Shah Chartered Accountants v Rajendra & Company Chartered Accountants INTERNATIONAL ACCOUNTANTS v Deloitte Haskins & Sells Chartered Accountants
Associates :	Reliance Life Insurance Company Limited (Subsidiary upto 14^th January 2002) Reliance General Insurance Company Limited (Subsidiary upto 14^th January 2002) Reliance Capital Limited BSES Limited Reliance Infocom Limited Reliance Communications Infrastructure Limited Reliance Telecom Limited Reliance Industrial Infrastructure Limited Reliance Europe Limited Reliance Ports & Terminals Limited Reliance Utilities and Power Limited Reliance Salgaoncar Power company Limited Reliance Enterprise Limited Reliance Global Trading Private Limited Unincorporated Oil and Gas Joint Venture Reliance Rubber and chemicals Private Limited Indian Petrochemicals Corporation Limited Reliance Petroinvestments Limited (Subsidiary upto 17^th April, 2002) Eklavya Mercantille Private Limited  Bahar Trading Private Limited  Bhumika Trading Private Limited  Ekansha Enterprise Private Limited  Anumati Mercantille Private Limited  Sanatan Textrade Private Limited  Reliance Consolidated Enterprises Private Limited  Pams Investments and Trading Company Private Limited  Rajlaxmi Securities Private Limited  Fiery Investments and Leasing Private Limited  Clarion Investments and Trading Company Private Limited  Hercules Investments Private Limited  Nikhil Investments Company Private Limited  Orson Trading Private Limited  Real Fibres Private Limited  Jagdanand Investments and Trading Company Private Limited  Jagdishvar Investments and Trading Company Private Limited  Kankhal Investments and Trading Company Private Limited  Kardam Commercials Private Limited  Kedareshwar Investments and Trading Company Private Limited  Krish Commercials Private Limited  Kshitij Commercials Private Limited  Nityapriya Commercials Private Limited  Priyash Commercials Private Limited  Pusti Commercials Private Limited  Reliance Enterprises Limited  Madhuban Merchandise Private Limited  Amur Trading Private Limited  Tresta Trading Private Limited  Ornate Traders Private Limited  Reliance Chemicals Private Limited  Reliance Polyolefins Private Limited  Lazor Syntex Private Limited  Aavaran Textiles Private Limited  Reliance Aromatics and Petrochemicals Private Limited  Reliance Welfare Association  Reliance Energy and Project Development Private Limited  Vita Investment & Trading Company Private Limited  Reliance Industrial Infrastructure Limited  Dainty Investment & Leasings Private Limited  Jogiya Traders Private Limited
Subsidiaries :	v Vimal Fabrics Limited (formerly – Devti Fabrics Limited) v Reliance Industrial Investments & Holdings Limited v Reliance Ventures Limited v Reliance Power Ventures Limited v Reliance Petroinvestments Limited v Reliance Strategic Investments Limited v Reliance LNG Private Limited v Reliance Infocom BV v Reliance Infocom Inc. v Reliance Technologies LLC v Reliance Communications (U.K.) Limited v Reliance Communications Inc. v Gas Transport & Infrastructure Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000000	Equity Shares	Rs.10/-	Rs.25000.000 millions
500000000	Preference Shares	Rs.100/-	Rs.5000.000 millions
	GRAND TOTAL		Rs.30000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1396377536	Equity Shares	Rs.10/-	Rs.13963.800 millions
Less:	Calls in Arrears – by others		Rs. 4.300 millions
	GRAND TOTAL		Rs.13959.500 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital	13931.700	13930.900	13959.500
2] Reserves & Surplus	484110.900	390102.300	330565.000
NETWORTH	498042.600	404033.200	344524.500
LOAN FUNDS
1] Secured Loans	76649.000	79729.000	114511.400
2] Unsecured Loans	142007.100	108116.900	94935.200
TOTAL BORROWING	218656.100	187845.900	209446.600
DEFERRED TAX LIABILITY	0.000	0.000	34748.200
TOTAL	716698.700	591879.100	588719.300
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	557167.500	302529.900	317891.700
Capital work-in-progress	69577.900	48292.900	33568.100
INVESTMENTS	58461.800	170514.600	139714.000
CURRENT ASSETS, LOANS & ADVANCES
Inventories	101198.200	74128.800	72312.200
Sundry Debtors	41636.200	39278.100	30463.800
Cash & Bank Balances	21461.600	36087.900	2242.400
Other Current Assets	0.000	0.000	9951.500
Loans & Advances	82665.500	138696.700	105430.600
Total Current Assets	246961.500	288191.500	220400.500
Less :
Current Liabilities	176560.200	179174.100	113123.200
Provisions	38909.800	38475.700	9731.800
Total Current Liabilities	215470.000	217649.800	122855.000
Net Current Assets	31491.500	70541.700	97545.500
TOTAL	716698.700	591879.100	588719.300

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	919385.700	742431.300	570403.200
Profit/(Loss) Before Tax	107040.600	90686.800	63011.400
Provision for Taxation	16347.200	14970.000	11410.000
Profit/(Loss) After Tax	90693.400	75716.800	51601.400
Export Value	0.000	0.000	118235.500
Import Value	0.000	0.000	118235.500
Total Expenditure	771117.000	651840.500	460330.300

QUARTERLY RESULTS

PARTICULARS	30.06.2006 1^st Qtr.
Sales Turnover	245220.000
Other Income	440.000
Total Income	245660.000
Total Expenditure	202850.000
Operating Profit	42810.000
Interest	2660.000
Gross Profit	40150.000
Depreciation	9070.000
Tax	3560.000
Reported PAT	25470.000

200606 Quarter 1 :-- EPS is Basic Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 1654 Complaints disposed off during the quarter 1654 Complaints unresolved at the end of the quarter Nil 1. The figures for the corresponding periods have been restated, wherever necessary, to make them comparable. 2. a) The Company, had revalued plant, equipment and buildings situated at Patalganga, Hazira and Jamnagar in 2005-06 Consequent to the revaluation, there is an additional charge for depreciation of Rs 4900 million (US$ 106 million) for the quarter and an equivalent amount has been withdrawn from Revaluation Reserve. This has no impact on profit for the period. b. The Company had revalued its plant and machinery situated at Patalganga and Naroda in 1997-98. Consequent to the revaluation, there is an additional charge for depreciation of Rs 80 million (US$ 2 million) for the quarter and an equivalent amount has been withdrawn from Revaluation Reserve. This has no impact on profit for the period. 3. Pursuant to the adoption of Accounting Standard on Employee Benefits (AS 15) (Revised 2005) issued by The Institute of Chartered Accountants of India, additional liability of Rs 500 million (US$ 11 million) up to March 31, 2006 net of deferred tax of Rs 170 million (US$ 4 million) has been adjusted against the opening balance of revenue reserves. The additional charge on account of the above is Rs 30 million for the quarter. 4. Provision for Current Tax includes, Provision for Fringe Benefit Tax of Rs 60 million (US$ 1 million) (Previous Year Rs 50 million) 5. The above results were reviewed by the audit committee. The Board of Directors at its meeting held on July 20, 2006 approved the above results and its release. 6. The statutory auditors of the Company have carried out a Limited Review of the results for quarter ended June 30, 2006.

.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt Equity Ratio	0.49	0.57	0.69
Long Term Debt Equity Ratio	0.38	0.45	0.58
Current Ratio	1.03	1.10	1.25
TURNOVER RATIOS
Fixed Assets	1.34	1.42	1.14
Inventory	10.17	9.99	7.63
Debtors	22.03	20.56	18.18
Interest Cover Ratio	13.20	7.17	5.39
Operating Profit Margin (%)	16.81	19.49	19.53
Profit Before Interest and Tax Margin (%)	12.99	14.40	13.75
Cash Profit Margin (%)	13.99	15.44	14.95
Adjusted Net Profit Margin(%)	10.18	10.35	9.17
Return On Capital Employed(%)	18.76	19.31	15.47
Return On Net Worth(%)	21.90	21.82	17.39

STOCK PRICES

Face Value	Rs. 10/-
High	Rs. 1062.80
Low	Rs. 1055.00

LOCAL AGENCY FURTHER INFORMATION

History

Subject was originally incorporated on 8^th May 1973 in Karnataka State as a Public Limited Company under the name and style of “Mynylon Limited”.

A company by name of Reliance Industries Private Limited was incorporated in Maharashtra on 11^th February 1967 and was converted into a Public Limited Company on 28^th June 1985 and with effect from 1^st July 1975 Reliance Textile Industries Limited was amalgamated with Mynylon Limited. The name of Mynylon was then changed to Reliance Textile Industries Limited with effect from 11^th March 1977. Due to diversification, name of the company subsequently changed to the present. Its Company Registration Number is 19786.

Incorporated as Reliance Refineries Private Limited in September, 1991, Reliance Petroleum Limited got its’ name in April, 1993. It was promoted by the company. The company came out with a Rs. 86160 millions public issue of triple-option convertible debentures in September, 1993, to part-finance a Rs. 51420 millions grssroot refinery at Jamnagar, Gujarat. Reliance Petroleum Limited enjoys the support of 2 millions international, domestic, institutional and retail shareholders. This is the second largest investor base in the Indian corporate sector next only to the company.

The company has grown into petrochemical major since its modest beginning with a synthetic fabric mill at Naroda. The company has set up texturising / twisting facilities in 1979. Further the company has set up facility at Patalganga, Maharashtra to produce PFY in 1982, PSF in 1986, a linear alkyl benzene (LAB) and a PTA in 1988. The company has technical collaboration for PFY and PSF with DuPont, USA and for PTA with UOP processors, US and ICI, UK.

Subject has setup a petrochemical facility to produce HDPE and PVC at Hazira, Gujarat in technical collaboration with Dupont and BF Goodrich respectively. The Hazira petrochemical plant was commissioned in 1991-92. Its operations capture value addition at every stage from producing crude oil and gas to polyester and polymer products and are vertically integrated to the production of textiles. It operates world’s largest grassroot, multi-fed crackers at its Hazira petrochemical complex.

In 1991-92, the company commissioned a petrochemicals unit to manufacture HDPE and PVC at Hazira, Gujarat, in technical collaboration with Dupont and BF Goodrich respectively. In 1995-96, it entered the telecom industry through a joint venture with Nynex, USA.

In 1995-96, it entered the telecom industry through a joint venture with Nynex, US. Subject entered this industry by promoting Reliance Telecom Limited. It provides cellular services using GSM Standard.

In December 2002, it entered into mobile servicing by promoting Reliance Infocomm Limited. The services are being launched in 3 phases, wherein the first phase it has trigged mobile revolution and in the second phase an enterprise netway revolution and in the final phase it will launch a consumer convergence revolution. The total capex planned by subject for Reliance info has been estimated at Rs. 1,80,000 millions.

It has obtained ISO 9002 certification from BVQI for its Patalganga and Hazira Complexes. It is the first private sector company in India to be rated by the international credit rating agencies.

The company completed its integrated Jamnagar complex during 1999-2000, the company completed its integrated Jamnagar Complex, in a record period of less then 3 years. The Jamnagar Complex Houses the world's largest Grassroot Refinery (under Subsidiary company Reliance Petroleum), paraxylene and polypropylene project with the capacity of 27 million tonnes, 1.4 million tonnes and 6,00,000 tonnes per annum respectively together with country's largest all weather port, power plants and all related infrastructure.

It has also acquired control over the polyster manufacturing facilities of four relatively large polyster producers over the last two years. This has enhanced the effective production capacity in polyester by nearly 200000 tonnes per annum to 800000 tonnes per annum. It was ranked the second largest producer of POY and PSF in the world, and the largest polyster manufacturer in India, with a market share of 51%.

The company is the largest producer of polymers in the country with a market share of 52%. The company’s capacity is nearly a million tonnes per year of polypropylene (PP), 400000 tonnes per year of polyethylene (PE) and 300000 tonnes per year of polyvinyl chloride (PVC). In April 2001, the company successfully completed the first phase of comprehensive restructuring plant for its textiles business located at Naroda, near Ahmedabad in the state of Gujarat which presently contributes 1% of company’ total revenues.

The company has acquired management control of BSES. The acquisition was routed through the company and Reliance Power Ventures Limited, made an open offer to the shareholders for BSES Limited to acquire 32,281,460 equity shares of BSES Limited. After completion of open offer, the equity stake of company in BSES has increased to over 58%, thus making BSES a subsidiary of company. Subsequently the name of the company has been changed to Reliance Energy Limited.

In November 2001, the company sold its just over 10% equity stake in Larsen & Toubro, the second largest player in the cement industry, to Grasim Industries for Rs. 7665 millions. The divestment of the L & T stake is in consonance with its declared objectives of unlocking value from its investments, in the interests of maximizing overall shareholder value.

During the year 2000-01, the company was, in a 90:10 consortium with Niko Resources of Canada, awarded 12 new exploration blocks by the government through a process of competitive international bidding. These 12 blocks cover a wide range of geological settings, spanning shallow and deep waters. Together with the 2 blocks awarded to the company in the earlier rounds of bidding, this has made the company the country's largest E&P (exploration and production) player in the private sector, with an exploration acreage of 1,05,765 sq. km. of both, the east coast and west coast of India.

In March 2002, the Board approved the proposal for amalgamation of Reliance Petroleum Limited (RPL) with the Company. The proposed Scheme of Amalgamation was approved by shareholders of both companies and the effective date for the merger was fixed on September 19, 2002. The exchange ratio will be of 1 share of the company for every 11 shares of Reliance Petroleum Limited held. The merger of RPL with the company represents the largest ever merger in India, creating the country’s largest private sector company on all financial parameters.

The disinvestment process of Government of India has given an opportunity for the company acquire the second largest petrochemical company India i.e. IPCL. The company has picked 26% stake from Government of India and acquired another 20% from public through an open offer.

Subject has signed an MOU with National Organic Chemicals Industries (NOCIL) to take over its Petrochemicals and Plastics Division in January 2004.

It has also acquired control over the polyester manufacturing facilities of four relatively large polyester producers over the last two years. This has enhanced the effective production capacity in polyester by nearly 200000 tonnes per annum to 800000 tonnes per annum.

It is the world’s largest polymers in the country with a market share of 52 %. Company has a capacity of nearly a million tonnes per year of polypropylene (PP) 400000 tonnes per year of polyethylene (PE) and 300000 tonnes per year of polyvinyl chloride (PVC).

Reliance Industries, the flagship company of Reliance Group has business interests in textiles, polyster, petrochemicals, oils and Gas and oil refining.

In an another strategic move the company has acquired IPCL, a leading public sector undertaking the, second largest petrochemical company in India. The company has acquired 26% stake in IPCL held by Government of India through an open offer and transparent process of global competitive bidding. Subsequently under the regulations, the company acquired further 20% equity stake in IPCL through an open offer to the public, thereby increasing its stake in the company to 46%. The total consideration for the successful bid was Rs. 14910 millions (US$ 303 millions) at Rs. 231 per share for acquiring the 25% stake. The total investment made by the company for acquiring the IPCL stake, including the open offer to the public was Rs. 26380 millions.

The company’s PP production unit crosses 1 million MT in 2001-02 and EDC manufacturing facility at Hazira was commissioned. It also plans to open new offices in Indonesia and Turkey and it has established overseas offices in China, UAE and Vietnam. The company was planning to increase the capacity of PET from 80000 tonnes per year to 300000 tonnes per year through the building of the world’s first plant based on Dupont’s revolunationary NG-3 technology. The new plant will be located alongside at Hazira. The expansion project was expected to be completed in the financial year 2003-04.

In October 2002, the Reliance Petroleum Limited amalgamated with Reliance Industries Limited. As per the Scheme of Amalgamation one equity share of RIL was allotted for every eleven equity shares of RPL.

It is in trade terms with: -

v Accurate Paper Tube

v Aditya Forge Limited

v Agencies (India) Corporation

v Aico Agencies Private Limited

v Aksh India Limited

v Ambica Textiles

v Anil Industrial Components

v Associated Chemicals

v Associated Products

v Bhandari Industries

v Billimoria (India)

v CEAG Flameproof Control Gear Private Limited

v Colloids India

v Elite Printers

v Fibro Chemicals

v Geecy Engineering Private Limited

v Harisidh Engineering Works

v IPSA Chemicals Private Limited

v Nec Containers Private Limited

v PITICO Chemicals

v Paper Converters (Private) Limited

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 areas of oil & gas, refining and petrochemicals businesses. While benefits from such contracts will accrue in the future years, their progress is periodically monitored. 

Additionally, some of the landmark events of the year included the following: 

 * Reliance demonstrated a new strategic move to unlock enormous value for its shareholders by reorganizing RIL's business through a process of demerger. In this process, RIL's investments in power generation and distribution, financial services and telecommunication services were demerged in to separate entities and RIL's shareholders received shares in the new entities in the same proportion of their equity holdings in RIL. 

 * RIL commenced the setting up of a new refinery through its subsidiary Reliance Petroleum Limited (RPL). The capital cost of the RPL project is estimated at Rs. 27,0000.000 Millions (approximately US$ 6 billion). RPL expects to commission the project by around December 2008. RPL recently completed its Initial Public Offering and is now a listed entity on the major stock exchanges in India thereby creating tremendous value for RIL's shareholders. RIL holds 75% in RPL and has invested Rs 6,7500.000 Millions as equity contribution in RPL. 

 * RIL's business performance and strong capital structure were duly recognized through an upward re-rating of its borrowings by international credit rating agencies, namely Moodys' and Standard & Poor. RIL is now rated above India's sovereign rating and is at Baa2 (Moodys') and BBB (S & P). The upgrade reflects Reliance's competitive position in refining and petrochemicals and overall moderate financial profile. 

 * RIL announced the closure of the buy-back of equity shares with effect from August 2, 2005. This was pursuant to the programme achieving its key objective of ensuring a positive impact on the stock price thereby contributing to maximization of overall shareholder value. 

 * The Board of Directors gave its consent to pursue Retail Business through a subsidiary of the Company. The Board has approved the initial phase of setting up of hypermarkets / super markets / convenience stores / specialty stores etc. in select cities and towns covering the entire geographical region in the country at an estimated cost of US$ 750 million.  

Subsidiaries: 

During the year, Reliance Industries (Middle East) DMCC, Reliance Power Limited, Reliance Patalganga Power Limited, Reliance Thermal Energy Limited, Jayamkondam Power Limited, Reliance Natural Resources Limited (formerly Global Fuel Management Services Limited), Reliance Energy Ventures Limited, Hirma Power Limited, Reliance Communication Ventures Limited, Reliance Capital Ventures Limited, Relene Petrochemicals Limited, Reliance Infrastructure Limited (formerly Reliance Project Engineering Associates Private Limited), Reliance Petroleum Limited, Reliance Retail Limited and Reliance Netherlands BV (subsidiary of Reliance Ventures Limited) became subsidiaries of the Company. 

Subsequently, pursuant to the Scheme of Arrangement for demerger, Reliance Power Limited, Reliance Patalganga Power Limited, Reliance Thermal Energy Limited, Jayamkondam Power Limited, Reliance Natural Resources Limited (formerly Global Fuel Management Services Limited), Reliance Energy Ventures Limited, Hirma Power Limited, Reliance Communication Ventures Limited and Reliance Capital Ventures Limited ceased to be subsidiaries of the Company. Further during the year, Reliance Power Ventures Limited, Reliance LNG Limited, Reliance Gas Pipelines Limited (formerly Gas Transportation & Infrastucture Company Limited), Reliance Technologies LLC, Reliance do Brasil Industria e Comercio de Produtos Texteis, Quimicos, Petroquimicos e Derivados Limited (Reliance Brazil LLC.) and Relene Petrochemicals Private Limited have ceased to be subsidiaries of the Company. 

Reliance Petroleum Limited (RPL), a subsidiary of the Company, made IPO of 1350.000 Millions equity shares of Rs.10/- each at Rs.60/- (including a premium of Rs.50/-) per share, through 100% book building process and the IPO received a overwhelming response from all the categories of investors.  

The equity shares of RPL will be listed on Bombay Stock Exchange Limited (BSE) and The National Stock Exchange of India Limited (NSE). 

In terms of approval granted by the Central Government under Section 212(8) of the Companies Act, 1956, copy of the Balance Sheet, Profit and Loss Account, Reports of the Board of Directors and Auditors of the subsisting subsidiaries have not been attached with the Balance Sheet of the Company. These documents will be made available upon request by any Member of the Company interested in obtaining the same. However, as directed by the Central Government, the financial data of the subsidiaries have been furnished under Details of Subsidiaries' forming part of the Annual Report. Further, pursuant to Accounting Standard AS-21 issued by the Institute of Chartered Accountants of India, Consolidated Financial Statements presented by the Company includes financial information of its subsidiaries

Structure and Strategy 

Reliance Industries Limited (RIL) is the largest private sector business enterprise in India, on all major financial parameters, including sales, profits, net worth and assets. RIL's operations capture value addition at every stage, from the production of crude oil and gas to polyester, polymer and chemical products, and finally to the production of textiles. RIL is the only company globally to achieve this degree of vertical integration and value addition.  

RIL operates mainly in India but has business activities and customers in more than 100 countries around the world. RIL has production facilities at three major locations in India and a further four locations in Europe. RIL also has exploration and production interests in India, Yemen and Oman. 

RIL is organized into three major business segments which include: Exploration and Production of oil and gas; Refining and Marketing of petroleum products; and Petrochemicals, including the manufacturing and marketing of polymers, polyester, polyester intermediates and chemicals. The Refining & Marketing and Petrochemicals segment accounted for 98 per cent of RIL's revenues for the year ended March 31, 2006. The E&P business is expected to become a significant contributor in terms of revenues and profits starting from the next couple of years. 

RIL's strategy is to build and sustain leadership position across its product categories in the domestic markets, pursue attractive export opportunities, implement vertical integration, access cutting-edge technologies, achieve economies of scale, focus on prudent financial management and invest in high growth opportunities. The primary route for growth adopted by RIL has been through creating businesses and facilities in an organic manner. RIL has grown by setting up world scale, world class projects, scaling them up to meet local and global demand, investing in R&D to develop future prospects and markets, and developing a large pool of qualified and skilled manpower. RIL has also grown through selective acquisitions that ensure greater synergy with its operations. 

RIL is India's first private sector company in the Exploration and Production (E&P) sector to have discovered large gas reserves. The E&P strategy of RIL is aimed at further enhancing the level of vertical integration in its energy business, and realising value across the entire energy chain, while fulfilling important national priorities. In the years to come, RIL is well positioned to be amongst the largest value creators in the upstream oil and gas sector. 

In the Petrochemicals and Refining business, RIL's strategy is to continuously strive for global leadership and endeavour to be amongst the lowest cost producers worldwide. Alongside, RIL will continue to invest in research, quality, safety and environment and thereby set new benchmarks in the industry. In these businesses RIL will also pursue inorganic growth opportunities, which are strategic to its intents and have the potential to create greater value for its shareholders. 

In the petroleum retail marketing business, RIL continues to grow its focused and differentiated offers. RIL operates in petroleum retail markets where it can create a competitive edge from supply positions, superior customer offers and efficiency across the value chain. The Indian consumer has already recognized the value proposition offered by RIL in retailing of petroleum products. 

Going forward RIL will make strategic decisions with regard to the emergingbusinesses that it is seeding today. These include: 

 * Identifying new businesses with high growth potential. 

 * Investing in businesses that can scale rapidly and generate superior returns over an extendable period of time. 

 * Create a differentiated business model and aspire to be lowest cost manufacturer/ service provider, which shall ultimately result in gaining dominant market leadership. 

The new businesses will aim to generate superior return on capital employed, which shall eventually enhance the overall returns. 

RIL will continue its business strategy of building and creating value for all its stakeholders in both its existing and new businesses. RIL will be India's pre-eminent global corporation in terms of size, scale, portfolio diversification and value creation. 

Overview - FY 2005-06 

Landmark Events 

The year 2005-06 was a landmark year in the history of RIL. It marked a new strategic decision to unlock value for its shareholders by reorganizing RIL's business through a process of demerger. In this process, RIL's investments in power generation and distribution, financial services and telecommunication services were demerged in to separate entities and RIL's shareholders received shares in the new entities in the same proportion of their equity holdings in RIL. The successful implementation of the largest demerger process in Indian corporate history has demonstrated RIL's ability to seed new businesses, gain leadership in each of these businesses which are large enough to be independent and thereby create value for RIL's shareholders. 

During the year, RIL commenced the setting up of a new export-oriented refinery through its subsidiary, Reliance Petroleum Limited (RPL). The refinery will have a total atmospheric distillation capacity of approximately 580,000 barrels per stream day with a Nelson Complexity of 14.0 and an integrated polypropylene plant with a capacity of 0.9 Million TPA. The capital cost of the RPL project is estimated at Rs 27,0000.000 Millions (approximately US$ 6 billion). RPL expects to commission the refinery and the polypropylene plant in and around December 2008. RPL recently completed its US$ 1.2 billion Initial Public Offering of equity shares which received an overwhelming response across different classes of investors and are now listed on the Bombay Stock Exchange and The National Stock Exchange. RIL holds 75 per cent in RPL and has invested Rs 6,7500.000 Millions as equity contribution in RPL. 

RIL's business performance and strong capital structure were duly recognized through an upward re-rating of its borrowings by international credit rating agencies, namely Moodys' and Standard & Poor. RIL is now rated above India's sovereign rating and is at Baa2 (Moodys') and BBB (S&P). 

RIL announced the closure of the buyback of equity shares with effect from August 2, 2005. This was pursuant to the programme achieving its key objective of ensuring a positive impact on the stock price thereby contributing towards maximization of overall shareholder value. Under the scheme, RIL purchased 2.86 million shares from the open market valued at Rs 149.610.000 Millions (US$ 34 million) which have since been extinguished prior to April, 2005. 

Operational Excellence

RIL put together another outstanding performance in a year that was marked by several global challenges. 

Crude prices remained firm throughout the year and ranged between US$ 55 per barrel to US$ 70 per barrel. A combination of strong global economic performance and heightened political uncertainties were the significant contributors towards the high price of crude. Despite the higher oil prices in the last couple of years, global oil demand continues to be robust. The forecast from the International Energy Agency is for a demand growth of 1.25 million barrels per day for 2006, this is estimated to be higher than 1.05 million barrels per day for 2005. 

The global refining system continues to be stretched, the pace of new capacity creation continues to be slow, and the light/heavy crude oil price differential continues to widen. A combination of these three factors augurs well for globally competitive complex refineries like RIL's existing refinery at Jamnagar and the new refinery being set up by RPL.  

RIL's refining business continued to show a superior performance over the benchmarked refining margins. Since the commissioning of the refinery, its gross refining margin has been between US$ 2 to US$ 4 per barrel higher compared to Singapore complex refining margins. For FY 2005-06, RIL had the highest ever gross refining margin at US$ 10.3 per barrel and more importantly a spread of US$ 5.8 per barrel over the Singapore complex margin for the last quarter of the year. Apart from operating efficiencies and optimal capacity utilization, the principal differentiator between RIL's refinery and other global refineries has been its ability to take advantage of the light/heavy crude price differential. 

RIL's refinery undertook a maintenance shutdown in October - November 2005 during which it also implemented a Value Maximisation Programme (VMP), which will help in enhancing margins and creating further value on a sustainable basis. The Nelson complexity of the refinery improved from 9.9 to 11.3 as a result of implementation of the VMP.  

RIL continued its rollout of the petroleum retail outlets by adding 867 new outlets taking the total number of outlets to 1,218 at the end of the financial year. The response from these outlets continues to be very encouraging in terms of consumer acceptance and growing market share. 

As regards RIL's petrochemicals business, operating rates of ethylene crackers globally continued to be high on the back of sustained demand and lack of new capacities getting commissioned. RIL continues to be very well positioned on the cost curve among the naphtha-based Asian crackers with operating rates at 100 per cent and among the lowest cost crackers in this region. Margins however were affected by high crude oil and natural gas prices leading to increase in cost of raw material. 

RIL strengthened its global position in this business by adding a new butadiene facility during the year with a capacity of 140,000 TPA. 

The margins for the polyester business improved significantly during the year. Key contributors towards these were lower intermediate price and rising cotton prices. Another significant development was the changes in the duty structure announced in the Union Budget this year which makes polyester more competitive as compared to cotton. The excise duty on polyester was reduced to 8 per cent from earlier level of 16 per cent and this is expected to lead to substantial growth of the polyester industry. RIL is very close to completing one of the largest expansion in polyester capacity in the world by adding 550,000 TPA of new polyester capacity. 

In the E&P business, RIL was awarded a further five blocks under NELP-V, which brings up the portfolio to 41 blocks including two in Panna-Mukta & Tapti and five blocks of coal bed methane. In addition to its domestic portfolio, RIL has two overseas blocks, one each in Yemen and Oman. RIL signed a Technical Evaluation Agreement with ANH (Columbia's hydrocarbon regulator) and also entered into a cooperation agreement with Ecopetrol (National Oil Company of Columbia) for farm-in opportunities in that country. 

RIL continues its efforts in developing its significant gas discovery at the Krishna Godavari Basin. Key contractors and suppliers for the KGD6 block have been appointed and front-end engineering for the offshore facility has been completed. Detailed engineering and placement of orders for all long-lead items are expected to be completed shortly. RIL continuesto be well on track for its phase-I of commercial production in FY 2008-09. 

RIL is building a strong E&P portfolio, starting with increased production in its existing Panna-Mukta & Tapti blocks, and commercializing KGD6 and other blocks in the next 3-5 years. 

Business Review

Exploration and Production  

Globally, the E&P industry registered a record growth during the year, primarily due to spiraling crude oil and gas prices. With growing competition and ever growing demand for energy, especially from developing countries, the focus is on energy security. 

India's share is a meagre 0.5 per cent of global oil reserves of 1,189 billion bbl, while it consumes 3.2 per cent of global oil consumption every year. Oil imports of US$ 43.8 billion were around one third of India's total import bill during the year 2005-06 as compared to US$ 29.8 billion during the previous year on account of both higher prices and volumes. 

During the year, the domestic crude oil and gas production in India was at 32.2 Million MT and 1,137 Billion Cubic Feet. The growing demand for crude oil and gas in the country and policy initiative of Government of India towards increased E&P activity, have given a great impetus to the Indian E&P industry raising hopes of increased exploration. Under the New Exploration Licensing Policy (NELP) of Government of India 110 blocks have been acquired by various E&P companies for exploration. The efforts have resulted in a number of oil and gas discoveries in India and have changed the perception and prospects of the Indian sedimentary basins and the focus on Indian E&P Industry. 

RIL is the largest exploration acreage holder among the Private sector companies in India with 34 domestic exploration blocks covering an area of about 331,000 sq. km. This is in addition to its interest in one exploration block each in Yemen and Oman. RIL also has 5 coal bed methane (CBM) blocks covering an area of about 4,000 sq. km. During the year, RIL signed a Co-operation Agreement with Ecopetrol of Columbia for farm-in opportunities in Columbia.  

RIL's portfolio of E&P assets, gives it the potential to create value across entire value chain from wellhead to burner tip. Accretion of new reserves through exploration, development of existing oil and gas reserves and development of related downstream infrastructure facilities would result in significant value creation for RIL in future. RIL has achieved a high success rate of 74 per cent in terms of discoveries made from the wells drilled thus far, excluding wells under evaluation

AS PER WEBSITE

The company is India's largest private sector enterprise and is a major player in the Indian petrochemicals sector. Its operations capture value addition at every stage from producing crude oil and gas to polyester and polymer products and are vertically integrated to the production of textiles. Reliance has one of the largest marketing networks in Indian industry. All its brands are market leaders

The originally envisaged capacity was substantially enhanced while implementing the project and it commissioned its 27 mmtpa refinery (540000 ballers per day) within a very short period of less then 36 months at a project cost of Rs. 142500 millions (US $ 3.4 bn). The company is the world's largest grassroots refinery and the seventh largest refinery in the world at any single site. The refinery has been set up at 30%-50% lower per tonne capital cost as competed to other refineries recently set up in Asia, by leading international oil companies, establishing new benchmark for capital productivity. It also has a remarkable ability to use almost any kind of crude oil. The company's products have been exported to a large number of destinations in the Far East, Europe and the USA, including to Japan, Singapore, Indonesia, Malaysia, Thailand, China, Greece and Italy. This reflects the fact that the company's products meet the most stringent international environment and quality specifications. In line with the governments oil sector policies, the company is currently selling the five controlled products, namely, LPG, Gasoline, Aviation Fuel, Kerosene and Diesel, to the public sector oil companies, IOC, HPCL and BPCL to the extent required by the Government. The Oil Coordination Committee determines the price realization for the company's controlled products, based on the principle of import parity the company has already applied for marketing rights for the controlled products, as it meets all the criteria specified in this regard by the Government, as per the Gazette Notification of November 1997. As soon as the marketing of controlled products is decontrolled, the company will make appropriate arrangements for the same. The company is also making investments in pipeline projects, to facilitate distribution of petroleum products across the country, in a seamless and cost-efficient manner. The company holds a 13% stake in Petronet V.K. Limited, which owns the 113-km, long Vadinar-Kandla pipeline. This pipeline links the company’s refinery to the Kandla-Bhatinda pipeline, providing access to the high growth north and north-west markets.

The setting up of the Central India pipeline project, which envisages setting up a 1615-km pipeline to serve the landlocked markets in central India, has been approved by the government. The company will hold a 26% stake in the joint venture implementing this project. The company will also hold a 10% stake in Petronet India Limited, the holding company set up for the creation of pipeline infrastructure for evacuations of petroleum products all over India.

The company has passed a resolution to sponsor a depository receipt Programme enabling shareholders of the company (Reliance Industries) to partially disinvest their equity shareholding in the company at an appropriate time in the course of an international offering in one or more trances to strategic investors, financial investors and any other investor in the form of depository receipts and any other financial instruments subject to necessary approvals.

The company will focus on its high value-added product ranges of men's wear, under the Vimal brand, and home textiles, under the Harmony brand. Other textile products, including women's wear products, will be phased out, and the polyester filament yarn processing business will be re-located.

The first phase of restructuring will lead to a reduction of over 4,600 people from the company's total workforce, at an estimated one-time outlay of Rs. 900.00 millions, in an amicable manner within a span of two weeks

It has increased its stake in equity share capital of BSES, an electric utility company, through open offer to 27%. Further it has announced the largest share buy back of Rs. 1,1000 millions at a maximum price of Rs. 303/- per share. The company proposes to invest Rs. 2,50,000 millions over the next 3 to 5 years in the telecom sector covering basic, cellular, long distance, international, voice, data services by setting up a broadband network throughout India.

Press Clippings

“Reliance Group emerges as India’s Largest Wealth Creator in the private sector for the Year 2003-04

April 13, 2004: Reliance Group has emerged as India’s largest wealth creator in the private sector for the financial year 2003-2004. The Group has increased its shareholders wealth in terms of market capitalisation by a whoppping Rs. 506060.000 millions. Its market capitalisation has increased from Rs. 443620.000 millions in March 31^st 2003 to Rs. 949680.000 millions as on March 31^st 2004.

Tata Group and the Bharti Group are the second and third amongst the ‘Largest Wealth Creators’ in the private sector. The Tata Group’s market capitalisation increased by Rs. 369640.000 millions while telecom major Bharati Group rose by Rs. 234630.000 millions. The ‘Top 10’ Largest Wealth Creators’ – Groups for the Year 2003-04 added market capitalisation worth Rs. 1803910.000 millions.

Amongst the ‘Individual Companies Category’, Reliance Industries Limited (RIL) emerged as the ‘Largest Wealth Creator’ amongst the private sector companies. During the 12 month period ended March 31^st 2004, RIL – the flagship company of the Reliance Group, has witnessed its market capitalisation surge by Rs. 365290.000 millions. Its market capitalisation has increased from Rs. 386030.000 millions as on March 31^st 2003 to Rs. 751320.000 millions on March 31^st 2004. At the second position, Bharti Tele-Ventures Limited has added wealth in terms of market capitalisation to the tune of Rs. 234170.000 millions followed by Tata Motors at the third slot at Rs. 118660.000 millions. The ‘Top 10’ Largest Wealth Creators’ – Individual Companies Category added market capitalisation worth Rs. 1359150.000 millions.

In the ‘Top 10’ individual Companies Category, two Reliance Group companies (Reliance Industries Limited ranked first and Reliance Energy Limited ranked fourth) and two Tata Group companies (Tata Motors ranked third and Tata Iron and Steel Company Limited ranked eighth) emerged in the ‘Largest Wealth Creators List’.

In the Group Category, the Reliance Group’s market capitalisation increased from Rs. 443620.000 millions last year (March 31^st 2003) to Rs. 949680.000 for the year ended March 31^st 2004, while Tata Group’s market capitalisation has increased from Rs. 206990.000 millions to Rs. 576640.000 millions.”

Press reports regarding Reliance Industries Limited

The press had reports on June 04, 2005 that Mr.Mukesh Ambani, Chairman and Mr.Anil Ambani, Vice Chairman are close to an amicable solution on the ownership issue in the Reliance Industries Limited.

The Exchange, in order to verify the accuracy or otherwise of the information reported in the press and to inform the market place so that the interest of the investors is safeguarded, had written to the officials of the company.

Reliance Industries Limited has vide its letter inter-alia stated, "The company is unware of the veracity of the matters referred in the news item and hence we are unable to offer any comment. It is also not the policy of the company to comment on media reports".

Vacon Plc, Press Release, April 28, 2005.

Reliance Industries chooses Vacon AC drives for polymerization lines. In close cooperation with its Indian partner Hi-Rel Electronics Pvt Limited, Vacon will deliver 270 AC drives to Reliance Industries Limited (RIL), the largest polyester yarn and polyester staple fibre manufacturer in India with a dominant market position.

To further increase the manufacturing capacity of polyester yarn (also known as Partially Oriented Yarn, POY) and Polyester Staple Fibre (PSF), RIL is expanding their polymerization line processes at the Hazira and Patalganga plants. The 270 Vacon AC drives will control a connected load in excess of 20 MW of the continuous polymerization processes and utilities. At the Hazira plant, the Vacon AC drives will control the continuous polymerization lines for polyester yarn and polyester staple fibre, both lines with the production capacity of 600 tons a day. At their Patalganga plant, the Vacon AC drives will control the continuous polymerization line for polyester yarn producing 250 tons a day.

Over the next two years, RIL will be building an additional half a million tonnes per year of polyester capacity by investing in a 240,000 tonnes per year polyester staple fibre plant at Hazira, 216,000 tonnes per year polyester filament yarn plant at Hazira, and 94,000 tonnes per year polyester filament yarn plant at Patalganga. With the commissioning of these plants, Reliance Industries Limited will almost double its current capacity and become the world’s largest producer of polyester.

Speed control brings energy savings and improves reliability

In controlling the speed of the motors according to need, Vacon AC drives bring several benefits. In addition to energy savings, speed control improves process control and decreased electromechanical stress for the electrical system. The extended lifetime of the mechanics also means lower maintenance and repair costs.

In cooperation with Hi-Rel Electronics, Vacon has developed redundant control systems for the most critical drives. Redundancy is vital to the quality of the product as any trip would result in substantial loss of first grade material and production volumes resulting from time lost in restarting the whole process.

Vacon Group was founded in 1993 for one purpose only: to create, develop and pro-vide AC drives worldwide. Ambitious to meet the most demanding needs of clients seeking top performance, easiness and reliability, Vacon offers AC drives in the power range of 0.25 kW...3 MW. In 2004, the Group revenues totalled EUR 128.6 million.

Reliance Industries Limited (RIL) is India’s largest private sector company on all major financial parameters with turnover of Rs 56,2470.000 Millions (US$ 12.8 billion), net profit of Rs 5,1600.000 Millions (US$ 1.2 billion), net worth of Rs 34,4520.000 Millions (US$ 7.9 billion) and total assets of Rs 71,1570.000 Millions (US$ 16.3 billion).

RIL is the first and only private sector company from India to feature in the 2004 Fortune Global 500 list of ‘World’s Largest Corporations’ and ranks amongst the world’s Top 200 companies in terms of profits.

RIL emerged in the world’s 10 most respected energy/chemicals companies and amongst the top 50 companies that create the most value for their shareholders in a global survey and research conducted by PricewaterhouseCoopers and Financial Times in 2004. RIL also features in the Forbes Global list of world’s 400 best big companies and in FT Global 500 list of world’s largest companies.

RIL emerged as the ‘Best Managed Company’ in India in a study by Business Today and A.T. Kearney in 2003. In 2004, the company emerged as ‘India’s biggest wealth creator’ in the private sector over a 5-year period in a study by Business Today – Stern Stewart and as India’s ‘Most Admired Company’ in a Business Barons – TNS Mode Opinion Poll.

Incorporated in 1983, Hi-Rel Electronics Limited., is a leading solution provider in the fields of Industrial Automation Solutions, Rotating Machine Controls, Soft Starters, Power Controllers, Uninterruptible Power Supply and Power Conditioning products. Hi-Rel endeavours to offer products and create solutions with clear and compelling advantages and to help you achieve the full potential of the machinery and processes. Hi-Rel Electronics has been a trusted partner of Vacon for the last five years. For more information, please see http://www.hirel.net/.

Financial

Subject’s gross turnover for the year ended 31^st March, 2004 increased to Rs. 744180 millions (USD 17.022 million) compared to Rs. 650610 millions in the previous year, registering growth of 14 per cent.

Gross turnover includes inter-divisional transfers of Rs. 181710 millions (USD 4,156 million), compared to Rs. 149650 millions.

Domestic sales accounted for 80 per cent of gross turnover. Manufactured exports, including deemed exports, increased to Rs. 149690 millions (USD 3,424 millions) from Rs. 115100 millions previous year.

Operating profit (PBDIT) increased 17 per cent to Rs. 109830 millions (USD 2,512 millions) during the year, up from Rs. 93660 millions in the previous year.

Outlook

Company’s overall operating earnings presently depend largely on the profitability of its refining and petrochemicals business. The outlook for margins and profitability depends upon overall global economic outlook, global demand –supply scenario and trends in feedstock and product prices. Company proposed entry into retail marketing of transportation fuels through development of its own distribution and marketing infrastructure and acquisition of marketing 7 distribution assets. This process will also add a new revenue stream to company’s existing business portfolio and enhance long-term shareholder value in the coming years.

Oil & Gas

India currently produces just 65 millions standard cubic meter of gas per day (MMSCMD) while the demand is 151 MMSCMD, leaving a huge deficit of 86 MMSCMD. The demand for natural gas is expected to increase further to 231 MMSCMD by 2006-07. Oil & Gas interests form a key operating division of the company. Company believes, it is in a position to greatly contribute to India’s oil and gas needs and emerge as a leading player in the energy sector.

Company is the country’s largest private sector exploration and production (E&P) player, with aggregate exploration and production acreage of nearly 279340 Sq. Km in 31 exploration blocks in India, and also one block in Yemen. Company is the operator in 30 domestic exploration blocks spanning East and West coasts of India.

2 exploration blocks were awarded prior to NELP, where company partners include ONGC Limited and Oil India Limited. Company has also acquired peratorship in 3 exploration blocks from Tullow of U.K. and is in advanced stages of acquiring operatorship of 2 more blocks from Tullow.

Refining & Marketing

Indian Petroleum Refining and Marketing Industry has been dominated by the public sector companies. India has 17 refineries, predominantly located in the west and south of the country. The aggregate capacity of these refineries is 113 million tonnes a year, according to the latest published industry data.

Company’s refinery in Jamnagar is the first and the only refinery to be set up in the private sector in India. Its capacity of 27 million tonnes, is the 5^th largest refinery in the world at any single location and accounts for 24 % of India’s refining capacity.

Petrochemicals

Polymer consumption in India remains one of the lowest in the world at 4 kg per person/year, which is much below consumption levels in developed countries like U.S.A., which has a consumption of 115 kg per person/year.

Company, an integrated polyster manufacturer with global economies of scale, further consolidated its position in the global polyster industry during the year. Company remains the world’s second largest polyster fibre and yarn manufacturer.

Company is the world’s 3^rd largest producer of paraxylene and is thelargest producer of purified terepthalic acid in India. Company is the largest manufacturer of polyster intermediates in India with overall market share of 78 %.

BSES

BSES Limited became part of the Reliance Group. This is a beginning of new relationship and signalled another step that company as India’s fully integrated energy with interest in oil and gas exploration and production, refining and marketing of petroleum products, petrochemicals and power generation, transmission and distribution.

In January, 2003 the company and Reliance Power Ventures Limited a wholly owned subsidiary of the company along with persons acting in concert, made an open offer to the shareholders of BSES Limited, inter alia, to acquire up to 32281460 equity shares of BSES representing 20 % of the its fully diluted equity share capital, at a price of Rs. 230.10 pershare, in terms of the Securities and Exchange Board of India Regulations, 1997. The offer opened on January 17, 2003 and closed on February15, 2003.

Chemicals

Company is the largest producer of linear alkyl benzene (LAB) in the country. The acquisition of IPCL, which has a LAB capacity of 43500 tonnes during the year, strengthened the leadership position of company in India.

Achievements

Of Mr. Mukesh Ambani-

· Rated No. 1. Among the top 50 Power People in the 2002 Power List published by India Today, February 2003

· Ranked 33^rd among the Top 50 most Respected Business Leaders of the World, tops among the three Indian CEO’s featured in a survey conducted by Pricewaterhouse Coopers and published in financial Times, London, January 2003

· Conferred 'Memebership Award’ by The Textile Association (India) December, 2002

· Conferred 'The Entrepreneur of the Decade Award’ by the Bombay Management Association, October 2002

· Rated as one of 'India’s Most Admired CEO’s for the fourth consecutive year in the Business Barons Taylor Nelson Sofres-Mode Survey, July, 2002 and also emerged as one of the Super Six world-class Indian CEO’s

· Recipient of Ernst and Young Entrepreneur of the Year Award –2000

· Honoured by University Department of Chemical Technology (UDCT), University of Bombay as “Distinguished Alumnus of the Decade” December, 1999.

· Conferred the 'Business of the Year 1997’ Award by Business India, December 1997.

· Recognised as 'Global Leader for Tomorrow’ in 1994 by the World Economic Forum, Switzerland and

· Named in 'Time Roster of Young Leaders for the New Millenium’ by Time magazine-December, 1994.

Of Mr. Anil Ambani-

· Rated No. 1. Among the top 50 Power People in the 2002 Power List published by India Today, February 2003

· Conferred 'The Entrepreneur of the Decade Award’ by the Bombay Management Association, October, 2002.

· Rated as one of 'India’s Most Admired CEO’s for the fourthj consequtive year in the Business Barons Taylor Nelson Sofres-Mode Survey, July, 2002 and also emerged as one of the Super Six world-class Indian CEO’s

· Awarded the first Wharton Indian Alumni Award by the Wharton India Economic Forum (WIFE) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December, 2001.

· Named amongst 'The Power 50- India’s 50 most powerful decision-makers in Politics, Business & Finance’, Business Barons, August, 1999.

· Selected by Asiaweek magazine for tits list of 'Leaders of the Millennium in Business and Finance and was introduced as the only 'new hero’ in Business and Finance from India, June 1998

· Leading business magazine Business Barons included him in its list of 'India’s 25 Most Influential Business and Financial Leaders’, June, 1998.

· Conferred the 'Businessman of the year 1997’ award by India’s leading business magazine Business India, December, 1997

Awards and Accolades

Company was the only Indian Company to feature among Asia’s ten most creditworthy companies in The Asset Annual Benchmark Survey of Asia’s Best Credits in 2002.

Reliance Group emerged as India’s 'Most Admired Business House’ for the second consecutive year in the Business Barons –TNS Mode Opinion Poll for 2002.

Company was ranked number one for 'Financial Soundness’ and 'Long Term Vision’, and number two in 'Overall Leadership’, in a Far Eastern Economic Review survey, Review200: Asia’s Leading Companies, in December 2002.

An Asiamoney Survey in December 2002 – January 2003 ranked the company among the top five companies in the 'Overall Best Managed Company’ category.

Company feature in the 'World’s Most Respected Companies list published by Financial Times based on a global survey and research done by Pricewaterhouse Coopers. In the same survey the company was ranked among the world’s 10 most respected energy and chemical companies, and also topped the list of 'Most respected Indians companies’

Company was ranked at number three in 'India’s Most Respected Companies’ list published by Businessworld in January 2003.

The 2001-02 annual report of company was judged the Best Annual Report among Indian Companies and among the best 25 in Asia in a CFO Asia Best Reports Survey in March 2003.

In a Finance Poll in March 2003, Company was ranked number one in India in the 'Best Financial Management’s category.

Company received the inaugural best export performance award for Financial Year 2000-01 from the Government of Maharashtra in March, 2003.

Mukesh Ambani was conferred the “Membership Award” by The Textile Association of India in December 2002.

The company’s fixed assets of important value include Leasehold Land, Freehold Land, Development Rights/Producing Properties, Building, Plant & Machinery, Electrical Installation, Factory Equipments, Furniture & Fixtures, Vehicles, Ships, Aircrafts, Helicopters and Jetties.

ANIL AMBANI RESIGNS FROM THE BOARD OF DIRECTORS

Mumbai, 18th June 2005: Shri Anil D Ambani resigned today as the Vice Chairman and Managing Director and also as a Director of Reliance Industries Limited. The Board considered and accepted his resignation.

The Board of Directors recorded their sincere appreciation of the invaluable services of Shri Anil D Ambani in contributing to the growth of Reliance and help the company in attaining a preeminent position in the corporate world.

Reliance Industries Limited

Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with turnover of Rs 73,1640.000 Millions (US$ 16.7 billion), cash profit of Rs 12,0870.000 Millions (US$ 2.8 billion), net profit of Rs 7,572 0.000 Millions (US$ 1.7 billion) and net worth of Rs 40,403 0.000 Millions (US$ 9.2 billion).

RIL is the first and only private sector company from India to feature in the 2004 Fortune Global 500 list of 'World's Largest Corporations' and ranks amongst the world's Top 200 companies in terms of profits. RIL emerged in the world's 10 most respected energy/chemicals companies and amongst the top 50 companies that create the most value for their shareholders in a global survey and research conducted by PricewaterhouseCoopers and Financial Times in 2004. RIL also features in the Forbes Global list of world's 400 best big companies and in FT Global 500 list of world's largest companies.

RIL emerged as the 'Best Managed Company' in India in a study by Business Today and A.T. Kearney in 2003. In 2004, the company emerged as 'India's biggest wealth creator' in the private sector over a 5-year period in a study by Business Today - Stern Stewart and as India's 'Most Admired Company' in a Business Barons - TNS Mode Opinion Poll.

BOARD COMMITTEE TO CONSIDER REORGANISATION OF RELIANCE'S BUSINESSES

Mumbai, 18th June 2005: The Board of Directors of Reliance Industries Limited took note of the Press Statement issued by Smt. Kokilaben D. Ambani, wife of the Founder Chairman Shri Dhirubhai H. Ambani and expressed happiness at the amicable settlement arrived amongst the Promoter family members. The Board decided to place on record its deep appreciation and sense of gratitude for the tireless and painstaking efforts of Smt. Kokila D. Ambani who holds a special place in the heart of Reliance family of shareholders and other well wishers in settling the differences amongst the family members and Promoter Directors in the overall interests of the Company and its shareholders. In the light of the statement resolving issues between the Promoters in managing the affairs of the Reliance Group of Companies, the Board decided to consider a proposal to reorganize the businesses as per Smt. Kokila D Ambani's principle of ensuring the highest shareholders value.

Reliance Industries Limited is a diverse organisation with various business interests and therefore any business reorganization ought to be done keeping in mind the paramount interests of shareholders and the best interest of the Company. The Board, therefore, decided to authorise the Corporate Governance and Stakeholders' Interface Committee to examine in depth all the relevant issues including statutory and legal requirements and suggest a suitable scheme of reorganization. In this task, the Board further empowered the said Committee to avail of professional and legal expertise to advise on preparing the reorganisation scheme expeditiously.

Reliance Industries Limited

Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with turnover of Rs 73,164 0.000 Millions (US$ 16.7 billion), cash profit of Rs 12,087 0.000 Millions (US$ 2.8 billion), net profit of Rs 7,572 0.000 Millions (US$ 1.7 billion) and net worth of Rs 40,403 0.000 Millions (US$ 9.2 billion).

RIL is the first and only private sector company from India to feature in the 2004 Fortune Global 500 list of 'World's Largest Corporations' and ranks amongst the world's Top 200 companies in terms of profits. RIL emerged in the world's 10 most respected energy/chemicals companies and amongst the top 50 companies that create the most value for their shareholders in a global survey and research conducted by PricewaterhouseCoopers and Financial Times in 2004. RIL also features in the Forbes Global list of world's 400 best big companies and in FT Global 500 list of world's largest companies.

RIL emerged as the 'Best Managed Company' in India in a study by Business Today and A.T. Kearney in 2003. In 2004, the company emerged as 'India's biggest wealth creator' in the private sector over a 5-year period in a study by Business Today - Stern Stewart and as India's 'Most Admired Company' in a Business Barons - TNS Mode Opinion Poll.

KOKILABEN AMBANI ANNOUNCES AMICABLE

FAMILY SETTLEMENT

Mumbai, 1 8th June 2005: The Board of Directors of Reliance Industries placed their deep appreciation of the sincere and painstaking efforts taken by Smt. Kokilaben Ambani in working towards the settlement that will further enhance the value of the Reliance group. The Board further expressed their gratitude to Smt. Kokilaben Ambani for finding an amicable resolution in the overall interests of the company and its shareholders which will pave the way for preserving and taking forward the historic legacy of Shri Dhirubhai Ambani, founder Chairman of the Company.

The press release of Smt. Kokilaben Ambani is enclosed.

Reliance Industries Limited

Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with turnover of Rs 731640.000 Millions (US$ 16.7 billion), cash profit of Rs 120870.000 Millions (US$ 2.8 billion), net profit of Rs 7,572 0.000 Millionse (US$ 1.7 billion) and net worth of Rs 40,403 0.000 Millions (US$ 9.2 billion).

RIL is the first and only private sector company from India to feature in the 2004 Fortune Global 500 list of 'World's Largest Corporations' and ranks amongst the world's Top 200 companies in terms of profits. RIL emerged in the world's 10 most respected energy/chemicals companies and amongst the top 50 companies that create the most value for their shareholders

in a global survey and research conducted by PricewaterhouseCoopers and Financial Times in 2004. RIL also features in the Forbes Global list of world's 400 best big companies and in FT Global 500 list of world's largest companies.

RIL emerged as the 'Best Managed Company' in India in a study by Business Today and A.T. Kearney in 2003. In 2004, the company emerged as 'India's biggest wealth creator' in the private sector over a 5-year period in a study by Business Today - Stern Stewart and as India's 'Most Admired Company' in a Business Barons - TNS Mode Opinion Poll.

Reliance Successfully Closes US$ 350 Million Multi Currency Term Loan

Facility Upsized From Mandated US$ 250 Million Following Overwhelming Response

June 10, 2005: Reliance Industries Limited's (RIL) US$350 Million Multi Currency Term Loan Facility has closed successfully. Due to an overwhelming response from the market, the final facility size was increased from the initial size of US$250 million. The Facility comprises a USD, Euro and JPY Tranche to cater to the diversified international investor base for RIL paper. The proceeds of this transaction are intended for RIL's ongoing capital expenditure programme.

The Mandated Lead Arrangers for the facility were: ABN AMRO Bank N.V., Bank of America N.A., The Bank of Tokyo-Mitsubishi, Limited., Calyon, DBS Bank Limited., The Hongkong and Shanghai Banking Corporation Limited, HVB Corporates & Markets and Mizuho Corporate Asia (HK) Limited.

The Facility was fully underwritten by the Mandated Lead Arrangers and was extremely well received during the syndication stage with 26 financial institutions joining the facility. In total, the facility consists of 34 banks from 13 countries globally. The strong response to this facility clearly demonstrates the confidence of the international banking community in RIL paper. The success of the facility is all the more creditable considering the fact that the pricing achieved was the finest so far for an offshore medium term loan raised by RIL.

Reacting to the continued success of RIL's offering in the international market, Alok Agarwal, President (Finance) of the Reliance group said, "The interest and commitment shown by the international financing community is a clear reflection of RIL's business strengths and the confidence it generates in their global investor base. Their relationship banks have once again proved themselves by bringing this transaction to such a commercially successful close."

The success of this facility follows close on the heels of Reliance's recently concluded multi-currency term loan facility in March of this year. It may be remembered that the earlier US$350m transaction had also closed successfully with a tremendous response from participating banks with a total of 34 banks joining the transaction.

Reliance Industries Limited

Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with turnover of Rs 731640.000 Millions (US$ 16.7 billion), cash profit of Rs 120870.000 Millions (US$ 2.8 billion), net profit of Rs 75720.000 Millions (US$ 1.7 billion) and net worth of Rs 404030.000 Millions (US$ 9.2 billion).

RIL is the first and only private sector company from India to feature in the 2004 Fortune Global 500 list of 'World's Largest Corporations' and ranks amongst the world's Top 200 companies in terms of profits. RIL emerged in the world's 10 most respected energy/chemicals companies and amongst the top 50 companies that create the most value for their shareholders in a global survey and research conducted by PricewaterhouseCoopers and Financial Times in 2004. RIL also features in the Forbes Global list of world's 400 best big companies and in FT Global 500 list of world's largest companies.

RIL emerged as the 'Best Managed Company' in India in a study by Business Today and A.T. Kearney in 2003. In 2004, the company emerged as 'India's biggest wealth creator' in the private sector over a 5-year period in a study by Business Today - Stern Stewart and as India's 'Most Admired Company' in a Business Barons - TNS Mode Opinion Poll.

Reliance Industries wins Silver at the International Exposition of Innovation and Quality Circles

Improvement of reliability in Spin Finish Application System for its polyester staple fibre product

June 7, 2005: Reliance Industries Limited's Hazira complex was awarded the 'silver' at the International Exposition of Innovation and Quality Circles (IEIQC) competition 2005 held in Singapore. The subject of 'Pragati', the team from Reliance, was 'Reliability Improvement in Spin Finish Application System'.

'Magdiwang' the team from Intel Technology Philippines won the gold while the bronze was claimed by 'Syconrof' from PT. Semen Gresik (Persero) Tbk Indonesia. Mr. Cedric Foo, Chairman of SPRING (Singapore Productivity and Innovation Group) Singapore, the organisers of the competition, presented the awards.

This year eight teams from companies of South-East Asia participated in the International Exposition of Innovation and Quality Circles competition. Out of these three were from India; besides Reliance, there was Lucas-TVS Pondicherry Division and PT Indofood Sukses Makmur Tbk bogasari flour mills.

The criteria

The competing teams were graded on a one thousand-point IQC judging criteria. The broad headings under which they were marked are - project selection and definition, analytical techniques, innovative actions and implementation, value creation and results achieved, standardisation, review and continuous improvement, and presentation.

The team members

Mr. Sanjay Agrawal, Mr. Nilesh Sheth, Mr. Vinay Ray, Mr. Piyush Desai and Mr. Vipul Chotalia all from the polyester staple fibre plant of Reliance's Hazira complex comprised the Reliance contingent 'Pragati' for the competition.

International Exposition of Innovation and Quality Circles

The first International Exposition of Quality Circles was organised in 1984 and in 2001, the event was renamed International Exposition of Innovation and Quality Circles with the aim to exchange ideas on the latest IQC concepts and developments. The theme for 2005 was 'Innovation and Teaming for Enterprise Competitiveness'.

Reliance Industries Limited

Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with turnover of Rs 731640.000 Millions (US$ 16.7 billion), cash profit of Rs 120870.000 Millions (US$ 2.8 billion), net profit of Rs 75720.000 Millions (US$ 1.7 billion) and net worth of Rs 404030.000 Millions (US$ 9.2 billion).

RIL is the first and only private sector company from India to feature in the 2004 Fortune Global 500 list of 'World's Largest Corporations' and ranks amongst the world's Top 200 companies in terms of profits. RIL emerged in the world's 10 most respected energy/chemicals companies and amongst the top 50 companies that create the most value for their shareholders in a global survey and research conducted by PricewaterhouseCoopers and Financial Times in 2004. RIL also features in the Forbes Global list of world's 400 best big companies and in FT Global 500 list of world's largest companies.

RIL emerged as the 'Best Managed Company' in India in a study by Business Today and A.T. Kearney in 2003. In 2004, the company emerged as 'India's biggest wealth creator' in the private sector over a 5-year period in a study by Business Today -Stern Stewart and as India's 'Most Admired Company' in a Business Barons - TNS Mode Opinion Poll.

Reliance Industries awarded the 'Golden Jubilee Memorial Trust Excellence Award'

June 2, 2005: Reliance Industries Limited's manufacturing division in Hazira, Surat has won the 'Golden Jubilee Memorial Trust Excellence Award' from The Southern Gujarat Chamber of Commerce & Industry for 'Corporate Excellence' in energy conservation, productivity and exports in textiles and chemicals in the category of large industry.

The award was presented by Shri Shankarsinh Vaghela, Minister of Textiles, Government of India at the 65th Installation function of the office bearers of Southern Gujarat Chamber of Commerce & Industry in Surat. Reliance Hazira has won the award consecutively since the last three years.

American Society for Quality

Reliance Industries wins the International Team Excellence Silver Award

May 26, 2005: Reliance Industries Limited's Hazira complex was awarded the silver at the 20th International Team Excellence Competition organized by the American Society for Quality (ASQ). Reliance is the only company from India in the twenty-year history of the awards to have participated in the competition. Baxter Healthcare and United Space Alliance, both from the USA, won gold and bronze respectively at the World Conference on Quality and Improvement held recently in Seattle, Washington.

This year 25 teams from companies around the world participated in the International Team Excellence Competition.

The team from Reliance presented a project aimed at controlling an industry problem of high b-colour in polyester fiber. Variation in b-colour leads to uneven dye-ability resulting in market complaints and huge monetary loss. A cross functional and multi-stakeholder team resolved this chronic problem using six sigma methodology utilizing the ASQ International Team Excellence Process.

The criteria

The 36 parameters of the criteria rates team success based on the project's impact on organizational goals, project selection and purpose-to action planning, project buy-in, implementation, progress, and results.

The team members

Mr. Sandesh Kadam, Dr. S.Aravindanath, Mr. Neeraj Dhingra, Mr. Rohit Agrawal all from the polyester staple fibre plant from Reliance's Hazira complex and Mr. J.S.Sekhon from its general management comprised the Reliance contingent for the competition.

Previous winners

Some of the previous winners have been Merrill Lynch, Johnson & Johnson, Bayer Corporation, Honda of America Mfg., Boeing, DynMcdermtt Petroleum Company, Fidelity Investments, Liebert Corporation, DST Output, DENSO Manufacturing, Emerson Hermetic Motor Division, Aventis Pasteur, United States Postal Service, J.P.Morgan etc.

International Team Excellence Award

The International Team Excellence Award is a process that promotes business effectiveness through team-based management and encourages individuals, teams, and organizations to excel in quality through participation practices. Since its institution in 1985, 749 teams have participated in the competition.

The competition process combines the application of continuous improvement tools, problem-solving processes, team dynamics, project management, and communication skills to generate significant performance improvements within an organization.

Reliance Industries Limited

Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with turnover of Rs 731640.000 Millions (US$ 16.7 billion), cash profit of Rs 120870.000 Millions (US$ 2.8 billion), net profit of Rs 75720.000 Millions (US$ 1.7 billion) and net worth of Rs 404030.000 Millions (US$ 9.2 billion).

RIL is the first and only private sector company from India to feature in the 2004 Fortune Global 500 list of 'World's Largest Corporations' and ranks amongst the world's Top 200 companies in terms of profits. RIL emerged in the world's 10 most respected energy/chemicals companies and amongst the top 50 companies that create the most value for their shareholders in a global survey and research conducted by PricewaterhouseCoopers and Financial Times in 2004. RIL also features in the Forbes Global list of world's 400 best big companies and in FT Global 500 list of world's largest companies.

RIL emerged as the 'Best Managed Company' in India in a study by Business Today and A.T. Kearney in 2003. In 2004, the company emerged as 'India's biggest wealth creator' in the private sector over a 5-year period in a study by Business Today - Stern Stewart and as India's 'Most Admired Company' in a Business Barons - TNS Mode Opinion Poll.

Reliance Industries emerges as the 'Best Overall Company' at the Stevie Awards

India Wins 3 International Stevie ^Tm Awards In 2005 International Business Awards^sm

April 28, 2005: Reliance Industries Limited leads a strong contingent of Indian winners of International Stevie Awards in the second annual International Business Awards (IBA). The IBAs are a global, all-encompassing business awards program honoring great performances in the workplace. Reliance Industries shares 'Best Overall Company' honors with ZENON Environmental of Canada.

Other Indian winners are:

• Wipro Technologies, Bangalore was recognized for 'Best Marketing Organization'
• J. Walter Thompson, Mumbai, was honored for 'Best TV Advertising Spot', for their work for Philips.

Members of the Awards' Board of Distinguished Judges & Advisors and their staffs selected International Stevie winners from among the Finalists, which were culled from more than 600 nominations by judges around the world during two months of preliminary judging. The awards will be presented to winners on Thursday, May 19, 2005 in New York.

Seventy-six International Stevie Award winners were announced in categories ranging from Best Multinational Company and Best New Product to Best Corporate Social Responsibility Program and Best Executive. The 21 countries represented in the winners' circle include Argentina, Australia, Brazil, Canada, China, Croatia, the Czech Republic, France, Germany, India, Indonesia, Italy, South Korea, Nigeria, Pakistan, Spain, Sweden, Thailand, the United Arab Emirates, the United Kingdom, and the United States.

The Stevie^TM Awards

The Stevie Awards are conferred in three programs: The American Business Awards, The International Business Awards, and The Stevie Awards for Women Entrepreneurs. Honoring companies of all types and sizes and the people behind them, the Stevies recognize outstanding performances in the workplace worldwide. Learn more about The Stevie Awards at www.stevieawards.com.

Reliance Industries Limited

Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with turnover of Rs 731640.000 Millions (US$ 16.7 billion), cash profit of Rs 120870.000 Millions (US$ 2.8 billion), net profit of Rs 75720.000 Millions (US$ 1.7 billion) and net worth of Rs 404830.000 Millions (US$ 9.3 billion).

RIL is the first and only private sector company from India to feature in the 2004 Fortune Global 500 list of 'World's Largest Corporations' and ranks amongst the world's Top 200 companies in terms of profits. RIL emerged in the world's 10 most respected energy/chemicals companies and amongst the top 50 companies that create the most value for their shareholders in a global survey and research conducted by PricewaterhouseCoopers and Financial Times in 2004. RIL also features in the Forbes Global list of world's 400 best big companies and in FT Global 500 list of world's largest companies.

RIL emerged as the 'Best Managed Company' in India in a study by Business Today and A.T. Kearney in 2003. In 2004, the company emerged as 'India's biggest wealth creator' in the private sector over a 5-year period in a study by Business Today - Stern Stewart and as India's 'Most Admired Company' in a Business Barons - TNS Mode Opinion Poll.

Reliance sets up a state-of-the-art Fibre Application Centre in India

May 19, 2005: Reliance Industries Limited (RIL) has set up a state-of-the-art 'Reliance Fibre Application Centre' at Patalganga, near Mumbai to conduct application research of polyester fibre and spun yarn. The Centre was inaugurated today by Mr. Nikhil R. Meswani, Executive Director of Reliance Industries Limited.

At this Centre, Reliance - the world's largest polyester fibre and yarn producer, has joined hands with Rieter Machine Works of Switzerland - the world's leading manufacturer of textile spinning machinery, to work together towards providing compelling value to the downstream textile industry.

It's a unique partnership, where both the parties are committed to offer the customers the best raw material and best machine running performance that will ensure innovative end products.

India's only polyester application research center

This facility is established with an approximate investment of US$ 3 million. It is unique as Reliance is the only polyester manufacturer in India to have this kind of a facility. The Centre is equipped with the state-of-the-art Rieter machines to test fibre applications.

The 'Reliance Fibre Application Centre' has installed chute feed cards, auto leveler drawframe, ringframe, open-end spinning machines and flyerframe. The Centre also has a provision to simulate mill climatic conditions.

Benefits of the partnership

Customers will greatly benefit from this facility, as new specialty manmade fibres from Reliance R&D will be perfectly adapted to the needs of the various spinning processes.

This facility takes Reliance one-step nearer to the customer and reduces the development cycle time by providing quality yarn samples that are tested at the application centre. This will further improve the operational efficiency of downstream textile industry for developing value added products at the shortest possible time.

Reliance Fibre Application Centre together with the Reliance Technology Centre at Patalganga and the Reliance Testing Centre at Coimbatore offers a unique value to Reliance customers.

At the occasion Mr. Nikhil R. Meswani said, "In a quota free regime, the troika of Reliance Technology Center, Reliance Testing Center and Reliance Fibre Application Center will shrink the time taken from conceptualisation of a product to its launch in the global markets, for us and their customers".

The Rieter Group

Rieter Machine Works Limited is a part of The Rieter Group, Switzerland. Rieter Group operates internationally, developing and producing sophisticated systems for the textile and automotive industries. In fiscal 2004 Rieter generated sales of CHF 3'173 million with some 13'500 employees worldwide.

Reliance Industries Limited

Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with turnover of Rs 731640.000 Millions (US$ 16.7 billion), cash profit of Rs 120870.000 Millions (US$ 2.8 billion), net profit of Rs 75720.000 Millions (US$ 1.7 billion) and net worth of Rs 404830.000 Millions (US$ 9.3 billion).

RIL is the first and only private sector company from India to feature in the 2004 Fortune Global 500 list of 'World's Largest Corporations' and ranks amongst the world's Top 200 companies in terms of profits. RIL emerged in the world's 10 most respected energy/chemicals companies and amongst the top 50 companies that create the most value for their shareholders in a global survey and research conducted by PricewaterhouseCoopers and Financial Times in 2004. RIL also features in the Forbes Global list of world's 400 best big companies and in FT Global 500 list of world's largest companies.

RIL emerged as the 'Best Managed Company' in India in a study by Business Today and A.T. Kearney in 2003. In 2004, the company emerged as 'India's biggest wealth creator' in the private sector over a 5-year period in a study by Business Today - Stern Stewart and as India's 'Most Admired Company' in a Business Barons - TNS Mode Opinion Poll.

Backgrounder

Reliance takes research a step forward - towards downstream application of fibre

Reliance Industries Limited is a global player in polyester, fibre intermediates and polymers and has been engaged in polyester R&D for over a decade. The Reliance Technology Centre (RTC) is a world-class research facility at Patalganga, located near Mumbai. The RTC, which was inaugurated in 2003, was set-up to conduct advanced research in polyester and related polymers to develop advanced polyester process and product technologies in India.

RTC is equipped with state-of-the-art research facilities, laboratories and, is manned by the most competent and skilled scientists and engineers at par with the best in the world. The RTC is designed to serve as a catalyst for development of new technologies, processes and value added products and provides new application solutions for textile, construction, paper, furnishing and, packaging industries.

The Reliance Fibre Application Centre at Patalganga takes the research a step forward. After the R&D is undertaken at the RTC, the Fibre Application Centre provides an opportunity to further test the application of the fibre, simulate yarn spinning and accordingly make changes to provide the best product to the customer.

The Reliance Testing Centre at Coimbatore is a NABL (National Accreditation Board for Testing and Calibration Laboratories) and ISO certified center.

The Reliance Fibre Application Centre will work in coordination with RTC and the Reliance Testing Centre.

Products which have resulted from the research effort include RecronTM Dyefast, RecronTM Superdye, RecronTM Stretch, RecronTM Fibrefill, RecronTM Cotluk, RecronTM Superblack and RecronTM 3S.

Financial Review

Operating profit, before other income, was Rs. 7,2780.000 Millions (US$ 1,653 million), against Rs. 5,9750.000 Millions for the corresponding previous period, an increase of 22%

The company's net operating margin was lower during the period at 18.9% mainly due to significant increase in price of crude oil during the half-year, which was not fully absorbed in domestic price of petroleum products.

Other income decreased to Rs. 4160.000 Millions (US$ 94 million), from Rs. 6430.000 Millions on account of the company exercising its option to convert the Preference shares of Reliance Infocomm Limited with effect from 1st April 2005. This was partially offset by higher interest income from current investments and fixed deposits.

Interest expenditure decreased 49% to Rs. 4580.000 Millions (US$ 104 million) due to appreciation of the rupee and reduction in debt.

Depreciation was at Rs. 1,5950.000 Millions (US$ 362 million) as against Rs. 1,8300.000 Millions for the corresponding previous period. The decrease is on account of assets sold during 2004-05 and impact of WDV depreciation on petrochemical assets

The outflow on account of capital expenditure was over Rs. 4,2000.000 Millions (US$ 954 million), primarily on account of oil and gas, petrochemical capacity expansions and normal capital expenditure.

Business Review

Oil & Gas (E&P)

RIL's oil and gas strategy is aimed at further enhancing the level of vertical integration in its energy business, and capturing value across the entire energy chain, while fulfilling important national priorities.

RIL is the largest exploration acreage holder among the Private sector companies in India with 34 domestic exploration blocks covering an area of about 340,000 sqkm. This is in addition to its interest in one exploration block each in Yemen and Oman. Reliance also has 5 coal bed methane blocks covering an area of about 4000 sqkm.

12 exploration blocks were awarded under the 1st round of the New Exploration Licensing Policy (NELP-I) of Government of India, 4 blocks in NELP II, 9 blocks in NELP III and 1 block in NELP IV. Reliance has been awarded 5 more exploration blocks under the just concluded NELP V. The Production Sharing Contract has been signed and application for exploration license has been submitted.

The Company and various partners, including ONGC Limited. and Oil India Limited., were awarded two exploration blocks prior to NELP. The Company has also acquired the operating rights of four exploration blocks from Tullow Oil plc, a UK Company.

Three blocks out of the above-awarded blocks have been relinquished as the expected deposits were found to be sub-economic.

In the Yemen onshore block where Reliance had oil discoveries, the development plan has been approved by Ministry of Yemen. Further exploration activity is also under progress and results are quite encouraging.

In the Oman offshore block, where RIL is the Operator, the existing seismic data has been collected and contract for reprocessing of data is being finalized.

During the quarter, processing and interpretation of acquired data have been taken up in an accelerated manner.

Building on the giant Dhirubhai gas discovery, Reliance continued with the exploratory drilling campaign in the discovery block KG-DWN-98/3 in the Krishna Godavari Basin. First Development well was spud and drilling operations are in progress. Detailed evaluation drilled wells are in progress.

The contract for development is slated to be awarded in calendar Q1-06.

The exploration in the CBM block of RIL is also progressing as per plan.

Reliance has deployed state-of-the-art technology, and is working with leading international technology and service providers for the E&P project, covering all activities, such as seismic studies, processing and interpretation of data and drilling.

RIL also holds a 30% interest in an unincorporated Joint Venture with British Gas and ONGC, to develop the proven Panna-Mukta and Tapti oil & gas fields. British Gas has a 30% share and ONGC the balance 40% share.

The Panna-Mukta fields produced 725,340 tonnes of crude oil and 22.32 billion cubic feet (632 MMSCM) of gas during the half year under report.

The Tapti field produced 40.46 billion cubic feet of gas (1,145 MMSCM) during the half year under report.

Refining & Marketing (R&M)

During the period under report, the domestic demand for petroleum products reduced by 0.6% compared to first half of last year. This is against 5.5% growth last year compared to the corresponding previous period.

The consumption of HSD, which accounts for more than a third of the total consumption of petroleum products, registered a negative growth of 0.6%, against a growth of 8.8% during the corresponding previous period. LPG demand showed significantly lower growth of 0.8% against 13.8% growth during the corresponding previous period. Demand for MS grew by 4.3%. The demand of Aviation turbine fuel grew by 14.7% during the half year. Naphtha sales fell by 11.2% and Kerosene sales increased slightly by 0.8%.

The average prices of WTI, Brent and Dubai for the half year period were $ 58.1 per barrel, $ 56.7 per barrel and $ 51.7 per barrel respectively while the peak prices were $ 69.9 per barrel, $ 67.3 and $ 59.2 per barrel respectively.

The global refining industry in general and the US refining industry in particular was dramatically influenced by the two hurricanes, Katrina and Rita that hit US Gulf coast on 29th August & 24th September respectively. US Gulf coast is the major hub for US refining with total capacity of about 4.7 mn b/d or 27.5% of US capacity. Almost all of this closed during 2 hurricanes. Reportedly as of end Sep '05 3.1 mn b/d capacity still remains closed.

International Energy Agency revised down its global oil demand growth forecast for 2005 to 1.26 million b/d, due to regional economic and logistical disruptions as well as retail price spikes in US due to Katrina and Rita and weaker outlook for China but has maintained a demand growth forecast of 1.75 million b/d for 2006.

The refinery margins were robust in all the regions as product price increases were higher than the concomitant rise in crude oil prices.

During the period under report, Reliance recorded 96% capacity utilisation at its Jamnagar Refinery. The refinery processed 15.87 million tons of crude during the half year.

This capacity utilisation compares favourably with the utilisation rates for other refineries, both in India and abroad, at 91% for North America, 87% for Europe, and 89% for Asia Pacific region.

Exports of refining products during the period under review were 5.2 million tons, compared to 4.8 million tons in the corresponding period last year.

The implementation of setting up of Retail Outlets at various locations is in full swing. Reliance already has the necessary approvals for setting up 5,849 retail outlets in India.

As on date, over 850 outlets are operational. The response from these retail outlets is encouraging as the throughput per outlet is higher than the industry norms. By the end of March 2006, Reliance will have significant presence in the retailing of transportation fuels. Reliance will continue to set new standards for services and product quality through its retail outlets. This will help improve margins, overall return on capital and consequently, shareholder value.

Petrochemicals

Polyester: Reliance is the country's largest manufacturer of PFY, PSF and PET, with a market share of 50%.

RIL's production volumes of PFY, PSF and PET increased by 7% to 549,000 tonnes.

Reliance has maintained its focus on speciality products. 56% of PSF production and 36% of PFY production represented niche products, contributing a premium of up to 50% over commodity prices.

Demand for PFY, PSF and PET, for the period under review, was 7% higher at 896,000 tonnes.

Reliance also continues to be the largest manufacturer of polyester intermediates, PX, PTA and MEG, in the country, with a market share of 77%.

Production of PX, PTA and MEG increased by 5% to 16,08,000 tonnes

Polymers: Reliance is the largest manufacturer of PP, PE and PVC, in the country, with a market share of 46%.

Production volumes of PP, PE and PVC decreased 3% to 939,000 tonnes.

There was an increased focus on high value premium products, with speciality grades contributing 19% of production, and generating a premium of up to 14% over commodity prices.

Domestic demand for PP, PE and PVC, for the period under review, was 12% higher at 1,892,000 tonnes.

RIL operates the world's largest grassroots, multi-feed cracker at its Hazira petrochemicals complex. During the period under review, Reliance produced 421,000 tonnes of ethylene and 200,000 tonnes of Propylene.

Chemicals: During the half-year under review, Linear Alkyl Benzene (LAB) production was 56,000 tonnes. Reliance has a market share of 24% in LAB.

During the half-year, Reliance has successfully commissioned the 140,000 tonnes per annum capacity Butadiene plant at Hazira. Butadiene production during the half-year was 33,000 tonnes.

NET PROFIT NEARLY DOUBLES IN 24 MONTHS TO US$ 2 BILLION

DIVIDEND OF 100%

PAYOUT OF RS 1,3940.000 Millions, HIGHEST IN PRIVATE SECTOR

Mumbai, 27th April 2006 - Reliance Industries Limited. has announced its audited results for the year ended March 31, 2006. Turnover of Rs. 89,1240.000 Millions (US $ 19,976 million). Net Profit of Rs. 9,0690.000 Millions (US $ 2,033 million) - the highest in the private sector.

The performance highlights of Reliance Industries Limited for the year ended 31st March 2006

are:

Turnover of Rs. 89,1240.000 Millions (US$ 19,976 million) against Rs. 73,1640.000 Millions for the previous year, an increase of 22%

Operating Profit (PBDIT) of Rs. 14,9820.000 Millions (US$ 3,358 million) against Rs. 14,2610.000 Millions for the previous year, an increase of 5%.

Cash Profit of Rs. 13,1740.000 Millions (US$ 2,953 million) against Rs. 12,0870.000 Millions for the previous year, an increase of 9%.

Net Profit of Rs. 9,0690.000 Millions (US$ 2,033 million) against Rs. 7,5720.000 Millions for the previous year, an increase of 20%.

Dividend of 100%, payout of Rs. 1,3940.000 Millions (US$ 312 million)

Earnings Per Share (EPS) for the year is Rs. 65.1 (US$ 1.46)

Contribution to the national exchequer in the form of various taxes is Rs. 15,9500.000 Millions

(US$ 3,575 million) against Rs. 13,9720.000 Millions for the previous year

The Company’s production of oil & gas and petrochemicals, including toll conversion, is 13.5 million tonnes during the year, against 12.7 million tonnes for the previous year, an increase of 6%.

Exports of manufactured products were Rs. 32,6910.000 Millions (US$ 7,327 million), against Rs. 25,5320.000 Millions for the previous year, an increase of 28%.

The Company’s Scheme of Arrangement (Scheme), to demerge certain undertakings to four resulting companies was approved by the Hon High Court of Mumbai on 9th December 2005, effective from 21st December 2005.

The consolidated Net profit of the Company after consolidating its subsidiaries and associates is Rs. 9,3980.000 Millions (US$ 2,106 million).

The Company has also reconciled its profits with US GAAP. Reconciliation of Net Profit as per

Indian GAAP and US GAAP is as under:

	Indian GAAP	US GAAP
Consolidated Net Profit	Rs. MM 93980.000 2106	Rs. MM 97350.000 2182
Difference		3370.000 76

The difference is mainly on account of deferred tax. The carrying value of the net assets demerged under the Scheme of demerger is Rs. 19,0060.000 Millions as per US GAAP.

Commenting on the results, Chairman & Managing Director Mukesh Ambani said, “It has been a very good year in an extremely challenging environment. They took several strategic steps to enhance and distribute wealth to their shareholders. What is even more gratifying is the growth in their profits from a little over US$ 1 billion to over US$ 2 billion in a span of just 24 months. They are now investing in each of their businesses to achieve substantial earnings growth in the future and create further value for millions of their shareholders”.

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.23
UK Pound	1	Rs.86.91
Euro	1	Rs.58.26

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	-
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	-
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	-
--CREDIT LINES	1~10	9
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		42

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions