New-look RIL posts Rs 3,280-crore net profit
Our Corporate Bureau
01 October 2002
Mumbai: Reliance Industries Ltd (RIL) has reported a consolidated net profit of Rs 3,280 crore, after a deferred tax provision of Rs 996 crore, for the year ended 31 March 2002.
The gross turnover for the reporting year stood at Rs 57,120 crore. RIL has increased the dividend to 47.5 per cent, a payout of Rs 663 crore. The results include that of Reliance Petroleum (RPL), which was merged with RIL with effect from 1 April 2001.
Following the merger of RPL with RIL, the assets, liabilities, rights and obligations of RPL have been vested in RIL from 1 April 2001.
RIL added that 34,26,20,509 shares of Rs 10 each are to be issued as fully paid-up to the shareholders of RPL. Without payment being received in cash and pending allotment, these have been shown under the head equity share suspense net of calls in arrears of Rs 33 lakh.
Equity share suspense includes 10,46,60,154 shares of Rs 10 each to be allotted to the trustees of the trust created by Reliance Industrial Investments and Holdings, a wholly-owned subsidiary of the company, against its investments in RPL.
About Rs 65 lakh representing capital reserve in RPL books has been credited to the capital reserve, while Rs 1,071.50 crore representing balance in the profit-and-loss account in RPL books has been credited to the profit-and-loss account. The net balance of Rs 10,739.67 crore has been credited to the securities premium account.
The profits from RPLs refinery did not attract any income tax except for the minimum alternate tax (MAT) owing to the tax holiday and, thus, no provision for the deferred tax was made by RPL. But, pursuant to the amalgamation of RPL with RIL, the depreciation benefits under the Income Tax Act (1961) on RPLs assets are now available to RIL.
The company said it has re-valued its plant and machinery located at Patalganga and Naroda during the financial year 1997-98. Consequent to the revaluation, there is an additional charge towards depreciation of Rs 170 crore for the year ended 31 March 2002, and an equivalent amount has been withdrawn from the general reserve. But this had no impact on profit for the year.