Reliance Communications Limited 

(commonly called RCOM) is a major Indian telecommunication

company headquartered in Navi Mumbai, India. It is the 16th largest operator in the world with more than
128 million subscribers. RCOM, founded by Dhirubhai H Ambani (1932–2002), is the flagship company of
the Reliance Anil Dhirubhai Ambani Group. The Reliance Anil Dhirubhai Ambani Group currently has
a net worth in excess of  64,000 crore (US$13.6 billion), cash flows of  13,000 crore ($2.8 billion), and
a net profit of  8,400 crore ($1.8 billion). The Equity Shares of RCOM are listed on Bombay Stock
Exchange Limited and National Stock Exchange Limited. The Global Depository Receipts and Foreign
Currency Convertible Bonds are listed onLuxembourg Stock Exchange and Singapore Stock
Exchange respectively.

Background
It ranks among the top 5 telecommunications companies. Retrieved 2010-04-14. in the world by number
of customers in a single country. Reliance Communications corporate clientele includes 2,100 Indian
and multinational corporations, and over 800 global, regional and domestic carriers. The company has
established a pan-India, next-generation, integrated (wireless and wireline), convergent (voice, data and
video) digital network that is capable of supporting services spanning the entire communications value
chain, covering over 24,000 towns and 600,000 villages. Reliance Communications owns and operates
the next-generation IP-enabled connectivity infrastructure,[2] comprising over 190,000 kilometers of fiber
optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region.

Main subsidiaries
[edit]Reliance Telecommunication Limited (RTL)

In July 2007, the company announced it was buying US-based managed ethernet and application delivery
services company Yipes Enterprise Services for a cash amount of  1200 crore (the equivalent of US$300
million). The deal was announced of the overseas acquisition, the Reliance group has amalgamated the
United States-based Flag Telecom for $210 million (roughly  950 crore). RTL operates in Madhya
Pradesh, West Bengal, Himachal Pradesh, Orissa, Bihar, Assam, Kolkata and Northeast, offering GSM
services.[3]
[edit]Reliance Globalcom

RGL owns the worlds largest private undersea cable system,[4] spanning 65,000 km seamlessly integrated
with Reliance Communications. Over 110,000 km of domestic optic fiber provides a robust Global Service
Delivery Platform, connecting 40 key business markets in India, the Middle East, Asia, Europe, and the
U.S.
[edit]Reliance Internet Data Center (RIDC)

RIDC provides Internet Data Center (IDC) services located

in Mumbai, Bangalore, Hyderabad and Chennai. Spread across 650,000 sq ft (60,000 m2) of hosting
space, it offers IT infrastructure management services to large, medium and small enterprises. It is one of
the leading data center service provider in India and provides services like colocation, managed server
hosting, virtual private server and data security. It has launched cloud computing services,[5] offering
product under its infrastructure as a server (Iaas) and software as a service (Saas) portfolio, which
enables enterprises, mainly small and medium, a cost-effective IT infrastructure and application on pay-
per-user model.
[edit]Reliance Big TV Limited
Main article:  Big TV

Reliance Big Tv launched in August 2008[6] and thereafter acquired 1 million subscribers within 90 days of
launch,[7] the fastest ramp-up ever achieved by any DTH operator in the world. Reliance Big TV offers its
1.7 million customers DVD-quality pictures on over 200 channels using MPEG-4 technology.
[edit]Reliance Infratel Limited (RITL)

RITL’s business is to build, own and operate telecommunication towers, optic fiber cable assets and
related assets at designated sites, and to provide these passive telecommunication infrastructure assets
on a shared basis to wireless service providers and other communications service providers under long-
term contracts.

Management - Reliance Comm

Name Designation
Anil D Ambani Chairman / Chair Person
S P Talwar Director
A K Purwar Director
Name Designation
J Ramachandran Director
Deepak Shourie Director

S.No Name Designation

1 Mr.Anil Dhirubhai Ambani Chairman / Chair Person
2 Mr.S P Talwar Director
3 Mr.A K Purwar Director
4 Mr.Deepak Shourie Director
5 Prof.J Ramachandran Director

Capital structure
From To Class Of Authorized Issued Paid Up Shares Paid Up Face Paid Up
Year Year Share Capital Capital (Nos) Value Capital

2009 2010 Equity Share 1,500.00 1,032.01 2064026881 5 1,032.01

2008 2009 Equity Share 1,500.00 1,032.01 2064026881 5 1,032.01

2007 2008 Equity Share 1,500.00 1,032.01 2064026881 5 1,032.01

2006 2007 Equity Share 1,500.00 1,022.31 2044614990 5 1,022.31

2005 2005 Equity Share 625.00 0.05 100000 5 0.05

Profit loss account

  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Dec ' 05

Income
Operating income 13,554.60 15,086.66 14,792.05 12,756.30 -

Expenses
Material consumed 50.39 29.95 15.15 16.48 -

Manufacturing expenses  7,994.76 5,975.57 4,144.21 3,358.34 -

Personnel expenses 672.39 754.56 858.65 684.40 1.11

Selling expenses 662.96 773.21 1,067.76 1,399.88 -

Adminstrative expenses 1,980.67 2,323.44 2,532.99 1,784.19 0.55

Expenses capitalised - - - - -

Cost of sales 11,361.17 9,856.73 8,618.76 7,243.29 1.66

Operating profit 2,193.43 5,229.93 6,173.29 5,513.01 -

Other recurring income 797.98 675.12 28.68 169.61 13.26

Adjusted PBDIT 2,991.41 5,905.05 6,201.97 5,682.62 11.59

Financial expenses 1,253.84 1,153.24 870.05 456.55 -

Depreciation  1,511.24 1,933.51 1,843.66 1,836.12 2.74

Other write offs - - - - -

Adjusted PBT 226.33 2,818.30 3,488.26 3,389.95 8.86

Tax charges  1,404.59 1,488.64 1,393.66 1,043.38 3.20

Adjusted PAT -1,178.26 1,329.66 2,094.60 2,346.57 5.65

Non recurring items 1,657.19 3,473.01 491.85 62.28 -

   Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Dec ' 05

Other non cash adjustments - - - - -

Reported net profit 478.93 4,802.67 2,586.45 2,408.85 5.65

Earnigs before appropriation 981.68 9,102.91 4,881.35 2,414.50 5.65

Equity dividend 175.44 165.12 154.80 102.23 -

Preference dividend - - - - -

Dividend tax 29.14 28.06 26.31 17.37 -

Retained earnings 777.10 8,909.73 4,700.24 2,294.90 5.65

(Rs crore)

Balance sheet
  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Dec ' 05

Sources of funds
Owner's fund

Equity share capital 1,032.01 1,032.01 1,032.01 1,022.31 0.05

Share application money - - - - 611.57

Preference share capital - - - - -

  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Dec ' 05

Reserves & surplus 49,466.88 50,658.31 23,808.02 19,503.23 14,783.43

Loan funds
Secured loans 3,000.00 3,000.00 950.00 5,113.57 -

Unsecured loans 21,478.28 27,903.61 19,336.43 9,454.27 -

Total 74,977.17 82,593.93 45,126.46 35,093.38 15,395.04

Uses of funds
Fixed assets

Gross block 39,838.17 37,941.15 21,576.32 20,625.82 198.09

Less : revaluation reserve - - - - -

Less : accumulated depreciation 9,225.69 6,533.38 4,688.69 2,527.37 31.85

Net block 30,612.48 31,407.77 16,887.63 18,098.45 166.24

Capital work-in-progress 1,683.52 3,643.86 7,117.56 2,185.60 -

Investments 31,898.60 31,364.75 13,844.14 5,434.43 12,074.10

Net current assets

Current assets, loans & advances 20,005.94 25,543.01 18,515.29 20,107.04 3,158.96

Less : current liabilities & provisions 9,223.37 9,365.46 11,238.16 10,732.14 4.25

Total net current assets 10,782.57 16,177.55 7,277.13 9,374.90 3,154.70

Miscellaneous expenses not written - - - - -

Total 74,977.17 82,593.93 45,126.46 35,093.38 15,395.04

Notes:
Book value of unquoted investments 31,898.31 31,364.63 13,844.14 5,434.43 12,074.10
   Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Dec ' 05

Market value of quoted investments 0.29 0.12 - - -

Contingent liabilities 3,274.83 6,555.82 4,392.73 3,781.30 -

Number of equity sharesoutstanding (Lacs) 20640.27 20640.27 20640.27 20446.15 1.00

Dividend
Year Month Dividend (%)

2010 May 17

2009 Jul 16

2008 Apr 15

2007 Apr 10

RELIANCE COMMUNICATIONS LIMITED Credit Rating

Reliance Communications Limited has informed the Exchange that ICRA Limited has retained the Long Term rating
of Reliance Communications Limited at LAA+ level and placed under watch with negative implications and reaffirmed
its rating of A1+ for Short-Term Fund Based/ Non Fund Based Limits

Reliance Communications Ltd has informed BSE that ICRA Ltd. has assigned long term rating of LAA+ for the long
term debt programme of the Company. ICRA Ltd. has also reaffirmed its short term rating of A1+ assigned earlier.
RELIANCE COMMUNICATIONS LTD. ACCOUNTING POLICY
Industry: Telecommunications - Service Chairman / Chair Person: Anil Dhirubhai Ambani

ISIN No INE330H01018 52Week High 208 Book Value 244.66 Face Value 5.00
BSE Code 532712 52Week Low 84 EPS 2.32 P/E 45.86
NSE Code RCOM P/BV 0.43 Div Yield 0.80 Market Cap. 21961.25

Reliance Communications was in the eye of the storm that rocked the market last week and the stock was sucked
down into a vortex of selling pressure to its life-time low of Rs 89.7 on Friday. It had shaved off 22 per cent from the
previous week’s close at that point.The trends along all-time frames — long, medium and short-term are down in the
stock.
The stock had strong long-term support around Rs 132. Since this level was breached last month, a weekly close
above this level is now required to mitigate the bearishness. Investors wishing to take fresh exposure to the
stock should wait for a close above this level before doing so. Subsequent resistances are Rs 160 and Rs 205.
Medium-term view will turn positive on a close above the second resistance.
The tricky question is – what should those still holding the stock do? These investors should have exited the stock
once it closed below Rs 130. If they haven’t then the
stop-loss can be moved lower to Rs 75. If this level breaks, it is not possible to guess where the slide can halt. That
said the movement over the last two days implies that some buying is emerging at current levels.