RELIANCE PETROLEUM LIMITED 1

Contents
Company Information ..................................................................................................................................................... 1
Directors’ Report ............................................................................................................................................................. 2
Auditors’ Report on Financial Statements ...................................................................................................................... 4
Balance Sheet .................................................................................................................................................................... 8
Cash Flow Statement ........................................................................................................................................................ 9
Schedules forming part of the Balance Sheet ................................................................................................................... 10
Significant Accounting Policies and Notes on Accounts .................................................................................................. 12

Company Information
Board of Directors Registered Office
Mukesh D. Ambani - Chairman Motikhavdi
Hital R. Meswani P.O Digvijayagram
Manoj H. Modi District Jamnagar – 361 140
P. M .S. Prasad Gujarat, India.
Yogendra P. Trivedi
Mahesh P. Modi Corporate Office
Atul S. Dayal 3rd Floor, Maker Chambers IV,
Bobby K. Parikh 222 Nariman Point,
Mumbai – 400 021.
Secretary Maharashtra, India.
K. Sethuraman Email: investor_relations@reliancepetroleum.com
http://www.reliancepetroleum.com
Audit Committee
Yogendra P. Trivedi - Chairman Registrar & Transfer Agents
Mahesh P. Modi Karvy Computershare Private Limited
Bobby K. Parikh 46, Avenue 4, Street No. 1,
Banjara Hills, Hyderabad 500 034, India
Shareholders’ / Investors’ Tel +91 40 2332 0666, 2332 0711
Grievance Committee 2332 3031, 2332 3037
Yogendra P. Trivedi - Chairman Fax +91 40 2332 3058
Mahesh P. Modi Email: rplinvestor@karvy.com
Hital R. Meswani http://www.karvy.com

Auditors
Deloitte Haskins & Sells
Chaturvedi & Shah
2 Refining life. Redefining growth.

Director’s Report
Dear Shareholders,

Your Directors are pleased to present the 1st Annual Report and the audited accounts of the foreign currency term loans from Export
Company for the period ended March 31, 2006. Credit Agencies and rupee debt / bonds.

Promoter of the Company Shifting of Registered Office of the

Your Company was initially promoted by Reliance Industries Limited (“RIL”) as its wholly Company
owned subsidiary. RIL, Chevron India Holdings Pte. Ltd., Singapore (“Chevron”) and your The Registered Office of the Company has
Company on April 12, 2006 signed an agreement for purchase by Chevron 5 per cent been shifted from the State of Maharashtra
equity share capital of the Company from RIL. Chevron has agreed to be and has been to the State of Gujarat with effect from
named as one of the Promoters of your Company along with RIL in the Prospectus issued March 29, 2006.
for the Initial Public Offering (IPO) of the Company.
Initial Public Offer of Equity Shares of the
Share Capital Company
Since incorporation of the Company the build up of the paid up capital of the Company is as
under. Your Company entered the capital market
with an IPO of 135 crore equity shares of
Date of No. of Equity Cumulative Remarks Rs.10 each for cash at a price band of Rs.57
Allotment Shares of Rs. 10 Share Capital - 62 per share through a 100 % book
each (Rs.) building process. Of this, 90 crore equity
December 6, 1,00,000 10,00,000 Allotment to Subscribers to shares were reserved as promoter’s
2005 Memorandum of Association contribution and the net offer to the public
was 45 crore equity shares of Rs.10 each.
January 30, 43,00,000 4,40,00,000 Allotment to RIL The issue was open for subscription / bids
2006 between April 13, 2006 and April 20,
February 25, 269,56,00,000 2700,00,00,000 Allotment to RIL 2006.
2006
The IPO has received an overwhelming
April 3, 45,00,00,000 3150,00,00,000 Allotment to Pre-IPO Investors response with an oversubscription of about
2006 52 times. The Company in consultation
April 12, 90,00,00,000 4050,00,00,000 Allotment to RIL (forming part with Book Running Lead Managers
2006 of Promoters Contribution) (BRLMs) has finalised the issue price at
Rs.60 per equity share.
Operations – Implementation of the and the polypropylene plant in, or around, The book building was conducted using the
Project December 2008. Agreements have been facilities provided by Bombay Stock
entered into with Bechtel France S.A.S Exchange Limited and The National Stock
Your Company has been formed to set up a (“Bechtel”) to license the technology for the
greenfield petroleum refinery and Exchange of India Limited.
major process units of the refinery and
polypropylene plant (the “Project”) to be The proceeds from the IPO will be used to
polypropylene plant. Bechtel will also
located in a Special Economic Zone (the partly finance the Company’s Project.
provide engineering, project management
“SEZ”) in Jamnagar in the State of Gujarat, and other construction services for the
Western India. The proposed refinery and Fixed Deposits
Project.
polypropylene plant will be located adjacent The Company has not accepted any fixed
to the existing refinery and petrochemical Your Company has already received deposits.
complexes of RIL. environmental clearance from the Ministry of Directors
Environment and Forest and from the
The refinery will have a complexity of 14.0, Pollution Control Board, Gujarat for setting In terms of Article 128 of Articles of
as measured using Nelson Complexity up the project. The SEZ being developed by Association of the Company Shri Mukesh
Index. The refinery will have a total D. Ambani, Shri Manoj Modi and Shri
Reliance Infrastructure Limited, a subsidiary
atmospheric distillation capacity of of RIL, has already been notified by the P.M.S. Prasad are the first directors of the
approximately 580 kilo barrels of crude oil Government and the Company’s application Company.
per stream day and also a 0.9 million
for setting up the project as a unit in the SEZ
tonnes per annum polypropylene plant. The The Board of Directors had appointed Shri
is pending for approval.
refinery when constructed will be the sixth Hital R. Meswani, Shri Y. P. Trivedi, Shri
largest in the world based on current M. P. Modi, Shri Atul S. Dayal and Shri
The Project cost is estimated at Rs.27,000
capacities. Bobby Parikh as Additional Directors on
crore and is proposed to be financed by
February 25, 2006.
equity of Rs.11,250 crore and debt of
Your Company intends to complete Rs.15,750 crore. The debt is expected to be Members at the Extraordinary General
construction and commission the refinery
raised by foreign currency syndicated loan, Meeting held on March 3, 2006 appointed

Shri Hital R. Meswani, Shri Y. P. Trivedi,
Shri M. P. Modi, Shri Atul S. Dayal and
Shri Bobby Parikh as directors liable to
retire by rotation
In terms of Article 155 of the Articles of
Association, Shri Mukesh D. Ambani Shri
Manoj Modi and Shri P.M.S. Prasad, retire
by rotation and being eligible, offer
themselves for reappointment at the
ensuing Annual General Meeting.
Directors’ Responsibility Statement
Pursuant to the requirement under Section
217(2AA) of the Companies Act, 1956, with
respect to Directors’ Responsibility Statement,
it is hereby confirmed that:
(i) in the preparation of the annual
accounts, the applicable accounting
standards have been followed;
(ii) the directors have selected such
accounting policies and applied them
consistently and made judgements and
estimates that are reasonable and
prudent so as to give a true and fair
view of the state of affairs of the
Company as at March 31, 2006;
(iii) the directors have taken proper and
sufficient care for the maintenance of
adequate accounting records in
accordance with the provisions of the
Companies Act, 1956 for safeguarding
the assets of the Company and for
preventing and detecting fraud and
other irregularities; and
Annexure to Directors’ Report
Particulars required under the Companies (Disclosures of Particulars in the Report of Board of Directors) Rules, 1988:
A. Conservation of Energy and Technology Absorption
The Management of the Company gives due importance to the conservation of energy and absorption of the best technology for
implementation of the Refinery project. However as the project of the Company is in the initial stages of its implementation there is nothing
significant to be disclosed in this regard.
B. Foreign Exchange Earning and Outgo
Foreign Exchange Earned
Foreign Exchange Used
(On account of Capital Advances)
Place : Mumbai,
April 25, 2006
RELIANCE PETROLEUM LIMITED
(iv) the directors have prepared the annual
accounts of the Company on a ‘going
concern’ basis.
Auditors and Auditors’ Report
Messrs. Chaturvedi & Shah, Chartered
Accountants and Messrs. Deloitte Haskins &
Sells, Chartered Accountants, Statutory
Auditors of the Company, hold office until
the conclusion of the ensuing Annual
General Meeting and are eligible for
reappointment.
The Company has received letters from
them to the effect that their appointment /
reappointment, if made, would be within the
prescribed limits under Section 224(1B) of
the Companies Act, 1956 and that they are
not disqualified for such appointment /
reappointment within the meaning of
Section 226 of the said Act.
The notes on accounts referred to in the
Auditors’ Report are self-explanatory and
therefore do not call for any further
comments.
Particulars of Employees
The Company has not paid any
remuneration attracting the provisions of the
Companies (Particulars of Employees) Rules,
1975 read with Section 217(2A) of the
Companies Act, 1956. Hence, no
information is required to be appended to
this report in this regard.
- NIL
- Rs. 1822,09,13,822/-
3
Energy Conservation, Technology
Absorption and Foreign Exchange earnings
and outgo
The particulars relating to energy
conservation, technology absorption,
foreign exchange earnings and outgo, as
required to be disclosed under Section
217(1)(e) of the Companies Act, 1956 read
with the Companies (Disclosure of
Particulars in the Report of Board of
Directors) Rules, 1988 are provided in the
Annexure to this Report.
Acknowledgment
Your directors would like to thank the
investing community including millions of
retail shareholders for the immense faith
reposed in your Company by making the
IPO a resounding success. Your Directors
would also like to express their grateful
appreciation for the assistance and co-
operation received from the Financial
Institutions, Banks, Government
Authorities, Vendors and Members during
the year under review.
For and on behalf of the
Board of Directors
Mukesh D. Ambani
Chairman
Place : Mumbai,
April 25, 2006
For and on behalf of the
Board of Directors
Mukesh D. Ambani
Chairman
4 Refining life. Redefining growth.

Auditors’ Report
To the Members of
RELIANCE PETROLEUM LIMITED

1. We have audited the attached Balance Sheet of Reliance Petroleum Limited as at March 31, 2006 and Cash Flow statement for the period
October 24, 2005 to March 31, 2006 annexed thereto. These financial statements are the responsibility of the Company’s management. Our
responsibility is to express an opinion on these financial statements based on our audit. No profit and loss account has been prepared since
the Company has yet to commence its revenue operations and the necessary details as per part II of Schedule VI of the Companies Act, 1956
have been disclosed in Schedule B as “Project Development Expenditure”.
2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order, 2003, issued by the Central Government in terms of Section 227 (4A) of the
Companies Act, 1956, we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to above, we report that:

i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes
of our audit;

ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet and Cash Flow statement dealt with by this report are in agreement with the books of account;

iv) In our opinion, the Balance Sheet and Cash Flow statement dealt with by this report comply with the accounting standards referred to
in sub-section (3C) of section 211 of the Companies Act, 1956;
v) On the basis of the written representations received from the directors as on March 31, 2006 and taken on record by the board of
directors, we report none of the directors is disqualified as on March 31, 2006 from being appointed as a director in terms of clause (g)
of sub-section (1) of section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts together with the notes
thereto, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2006; and

b) In the case of the Cash Flow statement, of the cash flows for the period October 24, 2005 to March 31, 2006.

For Deloitte Haskins & Sells For Chaturvedi & Shah

Chartered Accountants Chartered Accountants

P. R. Barpande Rajesh Chaturvedi

Partner Partner
M. No.: 15291 M. No.: 45882

Mumbai
Dated: April 25, 2006

Annexure to the Auditors’ Report
Referred to in Paragraph 3 of our report of even date
(i) In respect of its fixed assets:
The Company’s project for setting
up refinery and polypropylene plant
is at start up stage of construction
period and expenditure incurred in
relation to including advances are
disclosed as Capital Work-in-
Progress. Accordingly, clause 4 (i) of
the Companies (Auditor’s Report)
Order, 2003 is not applicable.
(ii) In respect of its inventories:
The Company does not have any
inventory. Therefore the provisions
of clause 4 (ii) of the Companies
(Auditor’s Report) Order, 2003 are
not applicable to the Company.
(iii) The Company has not granted or
taken any loan secured/unsecured
to/from companies, firms or parties
covered in the register maintained
under section 301 of the
Companies Act, 1956. Accordingly,
clause 4 (iii) of the Companies
(Auditor’s Report) Order, 2003 is
not applicable to the Company.
(iv) In our opinion, and according to
the information and explanations
given to us, there is an internal
control system commensurate with
the size of the Company and the
nature of its business for the
purchase of fixed assets. During the
financial period, the Company did
not undertake any activity of
purchase of inventory and sale of
goods and services. During the
course of our audit, we have not
observed any major weaknesses in
the internal control system.
(v) According to the information and
explanations given to us, there are
no contracts or arrangements
referred to in Section 301 of the
Companies Act, 1956 that need to
be entered in the register required
to be maintained under that section.
(vi) The Company has not accepted any
deposits from the public during the
period.
(vii) The Company did not have the
paid-up capital and reserves
exceeding rupees fifty lakhs as at the
commencement of the financial
period nor does have any turnover
in the first financial period and
hence, the provisions of clause 4
(vii) of the Companies (Auditor’s
Report) Order, 2003 are not
applicable to the Company.
(viii) According to the information and
explanations given to us, the
Company’s project for setting up
refinery and polypropylene plant is
at start up stage of construction and
the Company has not commenced
the commercial production and
hence maintenance of cost records is
not applicable during the period
under audit.
(ix) In respect of Statutory dues
(a) According to the information
and explanations given to us,
the Company has no liability
for undisputed statutory dues,
including Provident Fund,
Investor Education and
Protection Fund, Employees’
State Insurance, Sales-tax,
RELIANCE PETROLEUM LIMITED 5
Wealth Tax, Custom Duty,
Excise Duty, cess and any
other material statutory dues
applicable to it other than
Income tax and Service Tax,
which has been generally
regularly deposited with the
appropriate authorities.
(b) According to the information
and explanation given to us,
there are no dues of Sales
Tax, Income Tax, Customs
Duty, Wealth Tax, Service
Tax and Excise Duty, which
have not been deposited on
account of any dispute.
(x) The Company has no accumulated
losses at the end of the period
under audit and it has not incurred
any cash losses during the period.
(xi) In our opinion and according to the
information and explanations given
to us, the Company has not
borrowed any amounts from a
financial institution or bank or by
issue of debentures. Therefore, the
provisions of clause 4 (xi) of the
Companies (Auditor’s Report)
Order, 2003 are not applicable to
the Company.
(xii) According to the information and
explanations given to us, the
Company has not granted any loans
or advances on the basis of security
by way of pledge of shares,
debentures and other securities,
hence the question of maintenance
of adequate records for this purpose
does not arise.
6 Refining life. Redefining growth.
(xiii) In our opinion and according to the
information and explanations given
to us, the Company is not a chit
fund or a nidhi / mutual benefit
fund / society. Therefore, the
provisions of clause 4 (xiii) of the
Companies (Auditor’s Report)
Order, 2003 are not applicable to
the Company.
(xiv) In our opinion and according to the
information and explanations given
to us, the Company have
maintained proper records of
transactions and contracts in respect
of investments in mutual fund and
certificate of deposits with banks
and timely entries have been made
therein. All the investments have
been held by the Company in its
own name.
(xv) According to the information and
As per our Report of even date
For Deloitte Haskins & Sells
Chartered Accountants
P. R. Barpande
Partner
M. No.: 15291
Mumbai
Dated : April 25, 2006
explanations given to us, the
Company has not given any
guarantee for loans taken by others
from banks or financial institutions.
(xvi) To the best of our knowledge and
belief and according to the
explanations given to us, in our
opinion, no term loans have been
availed by the Company. Therefore,
the provisions of clause 4 (xvi) of
the Companies (Auditor’s Report)
Order, 2003 are not applicable to
the Company.
(xvii) According to information and
explanations given to us, and on an
overall examination of the Balance
Sheet of the Company, there are no
funds raised on short term basis
during the period of our audit and
hence the question of using the
same for long term investment
doesn’t arise.
For Chaturvedi & Shah
Chartered Accountants
Rajesh Chaturvedi
Partner
M. No.: 45882
(xviii) The Company has not made any
preferential allotment of shares to
parties and companies covered in
the
Register maintained under Section
301 of the Companies Act, 1956.
(xix) According to the information and
explanations given to us, the
Company has not issued any
debentures during the period under
audit.
(xx) According to the information and
explanations given to us, the
Company has not raised any monies
by way of public issue during the
period under audit.
(xxi) To the best of our knowledge and
belief and according to the
information and explanations given
to us, no fraud on or by the
Company was noticed or reported
during the period under audit.
 RELIANCE PETROLEUM LIMITED 7

Balance Sheet as at 31st March, 2006

(In Rupees)
Schedule As at
31st March, 2006
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital ‘A’ 2700 00 00 000

Share Application Money 450 00 00 000

TOTAL 3150 00 00 000
APPLICATION OF FUNDS
Fixed Assets
Capital Work-in-Progress ‘B’ 1903 61 38 232

Investments ‘C’ 798 52 63 389

Current Assets, Loans and Advances
Current Assets ‘D’
Cash and Bank Balances 450 96 17 284

Loans and Advances ‘E’ 22 11 538

451 18 28 822

Less : Current Liabilities and Provisions ‘F’

Current Liabilities 5 53 50 343
Provisions 35 19 400
5 88 69 743
Net Current Assets 445 29 59 079
Miscellaneous Expenditure 2 56 39 300
(To the extent not written off or adjusted)
(Refer Note 4 in Schedule ‘H’)
TOTAL 3150 00 00 000

Significant Accounting Policies ‘G’

Notes on Accounts ‘H’

As per our Report of even date For and on behalf of the Board

For Deloitte Haskins & Sells For Chaturvedi & Shah Mukesh D. Ambani - Chairman
Chartered Accountants Chartered Accountants Hital R. Meswani

P. R. Barpande
Partner
Rajesh Chaturvedi
Partner
Manoj Modi
P. M. S. Prasad
Y. P. Trivedi
M. P. Modi
Atul S. Dayal
K. Sethuraman
}
-
Directors

Company Secretary
Mumbai
Dated : April 25, 2006
8 Refining life. Redefining growth.

Cash Flow Statement for the period 24th October, 2005 to 31st March, 2006
(In Rupees)
A CASH FLOW FROM OPERATING ACTIVITIES: -

B CASH FLOW FROM INVESTING ACTIVITIES:

Capital Work-in-Progress (1899 81 26 564)
Purchase of Current Investments (2003 87 17 500)
Sale/ Redemption of Current Investments 1206 85 22 150
Interest on Current Investments 2 86 000
Interest accrued on Fixed Deposits 41 83 459
Advance Tax Paid ( 10 01 161)
Net Cash used in Investing Activities (2696 48 53 616)

C CASH FLOW FROM FINANCING ACTIVITIES:

Proceeds from issue of Equity Shares 2700 00 00 000
Share Application Money Received 450 00 00 000
Miscellaneous Expenditure (2 55 29 100)
Net Cash generated from Financing Activities 3147 44 70 900

Net Increase in Cash and Cash Equivalents 450 96 17 284

Opening Balance of Cash and Cash Equivalents -
Closing Balance of Cash and Cash Equivalents 450 96 17 284
Notes:
a. Cash and Cash Equivalents include:
Cash and Bank Balances 450 96 17 284

b. The Cash Flow Statement has been prepared under the ‘Indirect Method’ set out in Accounting Standard 3 ‘Cash Flow Statement’
issued by the Institute of Chartered Accountants of India.

c. This being the first reporting period, there are no corresponding previous year’s figures.

As per our Report of even date For and on behalf of the Board

For Deloitte Haskins & Sells For Chaturvedi & Shah Mukesh D. Ambani - Chairman
Chartered Accountants Chartered Accountants Hital R. Meswani

P. R. Barpande
Partner
Rajesh Chaturvedi
Partner
Manoj Modi
P. M. S. Prasad
Y. P. Trivedi
M. P. Modi
Atul S. Dayal
K. Sethuraman
}
-
Directors

Company Secretary
Mumbai
Dated : April 25, 2006
 RELIANCE PETROLEUM LIMITED 9

Schedules forming part of the Balance Sheet

(In Rupees)
SCHEDULE ‘A’ As at
31st March, 2006
SHARE CAPITAL
Authorised:
1000 00 00 000 Equity Shares of Rs. 10 each 10000 00 00 000
500 00 00 000 Preference Shares of Rs. 10 each 5000 00 00 000
TOTAL 15000 00 00 000

Issued, Subscribed and Paid-up:

270 00 00 000 Equity Shares of Rs. 10 each fully paid-up 2700 00 00 000
TOTAL 2700 00 00 000
Notes:
a. All the above Equity Shares are held by Reliance Industries Limited, the holding company, including six Equity Shares jointly held with
six other individuals.
b. Initial allotment of 10 00 000 Equity Shares to subscribers to the Memorandum of Association was of Re. 1 each. Subsequently, at the
Extra Ordinary General Meeting held on 30th January, 2006, the Company consolidated the Share Capital from a face value of
Re. 1 per share to Rs. 10 per share.

(In Rupees)
SCHEDULE ‘B’ As at
31st March, 2006

CAPITAL WORK-IN-PROGRESS:
Capital Advances 1897 09 13 822
Construction Material at Site 6 22 322
Project Development Expenditure
(Refer Note 2 in Schedule ‘H’)
a. Payments to and Provisions for personnel on deputation 5 21 06 458
b. Rates and Taxes 20 180
c. Travelling Expenses 4 12 016
d. Letter of Credit and Bank Charges 2 52 71 548
e. Other Expenses (includes Sitting Fees of Rs.1 20 000
paid to Directors) 40 20 361
8 18 30 563
Less:
f. Dividend Income from Current Investments 1 05 14 739
g. Profit on Sale of Current Investments 45 53 300
h. Interest Received from Current Investments 2 86 000
i. Interest accrued on Fixed Deposits (Gross, Tax Deducted
at Source Rs. 12 10 377 ) 53 93 836
2 07 47 875
Less:
j. Provision for Current Tax 35 19 400
1 72 28 475
6 46 02 088
TOTAL 1903 61 38 232
10 Refining life. Redefining growth.

Schedules forming part of the Balance Sheet

(In Rupees)
SCHEDULE ‘C’ As at
31st March, 2006
INVESTMENTS
Current Investments - Others
Unquoted
In Certificates of Deposit of Face value of Rs. 1 00 000 each issued by:
Nos.
2,500 ABN Amro Bank Limited 23 46 97 750
2,000 HDFC Bank Limited 19 31 83 600
30,000 ICICI Bank Limited 282 49 75 500
2,500 IDBI Bank Limited 24 18 98 000
3,500 Jammu & Kashmir Bank Limited 33 75 77 800
4,000 Karnataka Bank Limited 38 76 72 400
9,500 State Bank of Bikaner and Jaipur 89 31 61 500
7,500 State Bank of Indore 70 35 03 000
1,500 State Bank of Patiala 14 38 33 650
2,500 State Bank of Travancore 23 93 64 000
10,000 Kotak Mahindra Bank Limited 93 41 06 000
7,500 ING Vysya Bank Limited 72 55 75 450
785 95 48 650
In Units of Mutual Fund:
In Units
1,25,70,217 Standard Chartered Liquidity Fund
- Daily Dividend Plan of Rs. 10 each. 12 57 14 739
TOTAL** 798 52 63 389
Aggregate Value of
Quoted Investments -
Unquoted Investments 798 52 63 389
Movement during the period 24th October, 2005 to 31st March, 2006
Purchased and sold/ redeemed (In Rupees)
Nos. Cost
Certificates of Deposit of face value Rs. 1 00 000 issued by:
Allahabad Bank 10,000 99 72 97 500
American Express Bank 2,000 19 92 32 600
Karnataka Bank Limited 2,000 19 92 71 800
Jammu & Kashmir Bank Limited 10,500 104 11 90 150
ING Vysya Bank Limited 1,000 9 91 37 000
UTI Bank Limited 10,000 98 76 28 000
ABN Amro Bank Limited 1,500 14 70 03 600
Federal Bank Limited 2,000 19 27 08 200
Units of Mutual Fund:
Standard Chartered Liquidity Fund - Daily Dividend Plan of Rs. 10 each. 81,99,68,003 820 05 00 000

Note:
** Includes Rs. 797 47 48 350 being balance of unutilised monies out of issue of Shares.
 RELIANCE PETROLEUM LIMITED 11

Schedules forming part of the Balance Sheet

(In Rupees)
SCHEDULE ‘D’ As at
31st March, 2006
CURRENT ASSETS
Cash and Bank Balances **
Balance with Banks
In Current Accounts with Scheduled Banks 54 33 825
In Fixed Deposit with Scheduled Bank 450 41 83 459
(including Interest accrued Rs.41 83 459, net of Tax Deducted at
Source Rs.12 10 377)
450 96 17 284
TOTAL 450 96 17 284
Note:
** Includes Rs. 5 94 525 being balance of unutilised monies out of issue of Shares.

SCHEDULE ‘E’

LOANS AND ADVANCES

UNSECURED - (Considered good)
Advance Income Tax 22 11 538
(including Tax Deducted at Source Rs.12 10 377)
TOTAL 22 11 538

SCHEDULE ‘F’

CURRENT LIABILITIES AND PROVISIONS

Current Liabilities:
Sundry Creditors - Small Scale Industries -
Sundry Creditors - Others 8 46 643
Other Liabilities 5 45 03 700
5 53 50 343
Provisions
Provision for Current Tax 35 19 400
TOTAL 5 88 69 743

Significant Accounting Policies

SCHEDULE ‘G’
SIGNIFICANT ACCOUNTING POLICIES
1 Basis of Preparation of Financial Statements
The Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting
principles in India and the provisions of the Companies Act, 1956.
2 Use of Estimates
The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognised in the period in which the results are known/ materialised.
12 Refining life. Redefining growth.

3 Fixed Assets

i) Fixed Assets are stated at cost net of CENVAT/ Value Added Tax, less accumulated depreciation, amortisation and impairment
loss, if any.
ii) All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts
and adjustments arising from exchange rate variations attributable to fixed assets are capitalised.
iii) Expenses incurred relating to project prior to commencement of commercial production are classified as Project Development
Expenditure and disclosed under Capital Work-in-Progress (net of income earned during project development stage).

4 Foreign Currency Transactions

i) Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing at the time of the
transaction.

ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of monetary items
which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract
is recognised as exchange difference and the premium paid on forward contracts is recognised over the life of the contract.

iii) Non monetary foreign currency items are carried at cost.

iv) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and
Loss Account except in cases where they relate to acquisition of fixed assets in which case they are adjusted to the carrying cost
of such assets.
5 Investments
Current Investments are carried at lower of cost and quoted/fair value, computed category wise. Long Term Investments are stated
at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the
opinion of the management.
6 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such
assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing
costs are charged to revenue.

7 Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result
of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed
in the Notes. Contingent Assets are neither recognised nor disclosed in the financial statements.
8 Taxes on Income
Provision for Income Tax is made on the basis of estimated taxable income for the year at current rates. Tax expense comprise both
Current Tax and Deferred Tax at the applicable enacted or substantively enacted rates. Current Tax represents the amount of Income
Tax payable/recoverable in respect of the taxable income/ loss for the reporting year. Deferred tax represents the effect of timing
difference between taxable income and accounting income for the reporting year that originate in one year and are capable of reversal
in one or more subsequent years.

Notes on Accounts
SCHEDULE ‘H’

1 The Company was incorporated on 24th October, 2005 and accordingly the Accounts for the first reporting period are from 24th
October, 2005 to 31st March, 2006. Hence there are no corresponding figures for the previous year.
2 The Company is setting up a refinery and polypropylene plant (project) in a Special Economic Zone at Jamnagar, Gujarat. No Profit
and Loss Account has been prepared since the project is at start up stage of construction and the Company has not commenced
revenue operations. The expenditure incurred during the construction period are classified as ‘Project Development Expenditure’
pending capitalisation and will be apportioned to the Assets on the completion of the project. Necessary details as per part II of
Schedule VI of the Companies Act, 1956 have been disclosed in Schedule ‘B’.
 RELIANCE PETROLEUM LIMITED 13

SCHEDULE ‘H’ (Continued)

3 Payment to Auditors (including Service Tax): For the period

24th October, 2005 to 31st March, 2006
(In Rupees)

Audit Fees 16 53 000

For Audit of Interim Accounts 2 20 400
Certification work 1 10 200

19 83 600

4 Miscellaneous Expenditure (to the extent not written off or adjusted) represents share issue expenses. Such expenditure would be
adjusted against the Securities Premium Account as and when Shares are issued.

5 Capital Commitments: As at 31st March, 2006

(In Rupees)
Estimated amount of contracts remaining to be executed on
capital accounts (net of advances) and not provided for 15343 81 41 587
6 The Company’s activities during the period revolve around setting up of the project (Refer Note 2 above). Considering the nature
of Company’s business and operations, there is/are no reportable segments (business and/ or geographical) in accordance with the
requirements of Accounting Standard 17 - ‘Segment Reporting’, issued by the Institute of Chartered accountants of India (ICAI).
7 The Company has temporarily parked its project surplus funds in Certificates of Deposit and in units of Mutual Fund. Such Investments
are not intended to be held till maturity and hence are classified as Current Investments. These Investments would be encashed for
requirement of funds for project execution. The profit/ loss on sale of these Current Investments would be accounted when sold.
8 As per Accounting Standard 18 (AS-18) ‘Related Party Disclosures’, issued by ICAI, the disclosures of transactions with the related
parties as defined in AS-18 are given below :

(i) List of related parties and relationships:

Sr. No. Name of the Related Party Relationship

1 Reliance Industries Limited Holding Company

2 Reliance Utilities and Power Limited Associate
3 Reliance Ports and Terminals Limited Associate
4 Shri Mukesh D. Ambani Key Management Personnel
5 Shri P. M. S. Prasad Key Management Personnel

(ii) Transactions during the period with Related Parties:

(In Rupees)

Sr Nature of Transactions Holding Key Management Total

No (Excluding reimbursements) Company Personnel
1 Share Capital 2700 00 00 000 - 2700 00 00 000
2 Purchase of Investments 1172 30 17 500 - 1172 30 17 500
(see note ‘a’ below)
3 Corporate Guarantee to Banks given by 6573 28 05 942 - 6573 28 05 942
(see note ‘b’ below)
4 Sitting Fees paid to Sh. P. M. S. Prasad - 20 000 20 000

Note:
a. Purchase of Investments from holding company was at Market rates.
b. Corporate Guarantee to Banks represents utilised amount against a total Guarantee amount of Rs. 11300 00 00 000.
14 Refining life. Redefining growth.

9 Additional information as required under Part IV of Schedule VI to the Companies Act, 1956
Balance Sheet Abstract and Company’s General Business Profile:
I. Registration Details:
Registration No. U 1 1 1 0 0 G J 2 0 0 5 P L C 4 8 0 3 0
Balance Sheet Date: 3 1 - 0 3 - 2 0 0 6 State Code 0 4
II. Capital raised during the year: (Amount in Rs. Thousands )
Public Issue: N I L Rights Issue: N I L
Bonus Issue: N I L Private Placement: 2 7 0 0 0 0 0 0
Share Application Money: 4 5 0 0 0 0 0
III. Position of mobilisation and deployment of funds: (Amount in Rs. Thousands )
Total Liabilities: 3 1 5 5 8 8 7 0 Total Assets: 3 1 5 5 8 8 7 0
Sources of Funds: Application of Funds:
Paid up Capital: 2 7 0 0 0 0 0 0 Net Fixed Assets: 1 9 0 3 6 1 3 9
Share Application Money: 4 5 0 0 0 0 0 Investments: 7 9 8 5 2 6 3
Reserves and Surplus: N I L Net Current Assets: 4 4 5 2 9 5 9
Secured Loans: N I L Miscellaneous Expenditure: 2 5 6 3 9
Unsecured Loans: N I L Profit and Loss Account: N A
IV. Performance of the Company: (Amount in Rs. Thousands )
Net Turnover: N A Total Expenditure: N A
Profit / (-) Loss before tax: N A Profit / (-) Loss after tax: N A
Earnings per Share in Rs:
- Basic N A Dividend Rate: N A
- Diluted N A
V. Generic Names of principal products of the Company:
Item Code number 2 7 . 1 0
Product Description B U L K P E TR OL E U M P R OD U C T S
Item Code number 3 9 0 2 1 0 . 0 0
Product Description P O L Y P R O P Y L E N E ( P P )

For and on behalf of the Board

Mukesh D. Ambani - Chairman

Hital R. Meswani
Manoj Modi
P. M. S. Prasad
Y. P. Trivedi
M. P. Modi
Atul S. Dayal
K. Sethuraman
}
-
Directors

Company Secretary
Mumbai
Dated : April 25, 2006
 RELIANCE PETROLEUM LIMITED 15

NOTES
16 Refining life. Redefining growth.

NOTES