RELIANCE INDUSTRIES

The Reliance Group, founded by Dhirubhai H. Ambani , is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of $ 30 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.

Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses. It was in 1957 when he returned to India after a stint with A.Besse& Co., Aden he started yarn trading business from a small 500 sq.ft. office in Masjid Bunder, Mumbai.he set up his brand new mill in Naroda, Gujarat. In 1996 Reliance went on to become the biggest textile brand Only Vimal. In 1977 the Reliance Textile Industries came with an IPO which was oversubscribed seven times. Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products. Starting as a small textile company, Reliance has in its journey crossed several milestones to become a Fortune 500 company in less than 3 decades. Reliance Industries Limited operates world-class manufacturing facilities across the country at Allahabad, Barabanki, Dahej, Dhenkanal, Hazira, Hoshiarpur, Jamnagar, Kurkumbh, Nagothane, Nagpur, Naroda, Patalganga, Silvassa and Vadodara.

AUDITORS' REPORT To the Members of Reliance Industries Limited 1. We have audited the attached Balance Sheet of RELIANCE INDUSTRIES LIMITED as at March 31, 2012, the Statement of Profit and Loss and the Cash Flow Statement for the year ended on that date 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. 2. We conducted our audit in accordance with the 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 of India in terms of sub-section (4A) of Section 227 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 in paragraph 3 above, we report that: a) 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; b) 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;

c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account; d) In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956. e) On the basis of written representations received from the Directors as on March 31, 2012 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2012 from being appointed as a director in terms of clause (g) of sub - section (1) of Section 274 of the Companies Act, 1956;

ANNEXURE TO AUDITORS' REPORT 1. In respect of its fixed assets: a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information. b) As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification. c) In our opinion, the Company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the Company is not affected.

2. In respect of its inventories: a) The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. c) The Company has maintained proper records of inventories. As explained to us, there were no material discrepancies noticed on physical verification of inventories as compared to the book records.

3. In respect of the loans, secured or unsecured, granted or taken by the Company to / from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956: a) The Company has given loans to two subsidiaries. In respect of the said loans, the maximum amount outstanding at any time during the year was Rs. 10,254 crore and the year-end balance is Rs. 10,239 crore (including interest free loan of Rs. 6,615 crore). b) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions of the loans given by the Company, are not prima facie prejudicial to the interest of the Company. 4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchases of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

RELIANCE INDUSTRIES BALANCE SHEET: Standalone Balance Sheet ------------------- in Rs. Cr. ------------------Mar '13 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 3,229.00 3,229.00 25.00 0.00 176,766 0.00 180,020 2,422.00 52,101.00 54,523.00 234,543 Mar '13 12 mths Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets 218,745 103,406 115,339 13,525.00 52,509.00 42,729.00 11,880.00 49,547.00 104,156.00 209,552 91,770.00 117,782 4,885.00 54,008.00 35,955.00 18,424.00 889.00 55,268.00 221,251 78,545.50 142,706 12,819.56 37,651.54 29,825.38 17,441.94 604.57 47,871.89 3,271.00 3,271.00 0.00 0.00 159,698 3,127.00 166,096 6,969.00 51,658.00 58,627.00 224,723 Mar '12 12 mths 3,273.37 3,273.37 0.00 0.00 142,799 5,467.00 151,540 10,571.21 56,825.47 67,396.68 218,937 Mar '11 12 mths Mar '12 12 mths Mar '11 12 mths

Loans and Advances Fixed Deposits Total CA, Loans

32,982.00 0.00 & 137,138.00

24,573.00 38,709.00 118,550.00

17,320.60 26,530.29 91,722.78

Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs) 0.00 79,620.00 4,348.00 83,968.00 53,170.00 0.00 234,543.00 50,533.00 557.49 0.00 66,244.00 4,258.00 70,502.00 48,048.00 0.00 224,723.00 45,831.00 498.21 0.00 61,399.87 4,563.48 65,963.35 25,759.43 0.00 218,937.0 41,825.13 446.25

RELIANCE INDUSTRIES INCOME STATEMENT:

profit RI 200903 201303 201303

Reliance

Industries

Mar '13 12 mths Income Sales Turnover Excise Duty Net Sales

Mar '12 12 mths

Mar '11 12 mths

371,119.00 339,792.00 258,651.15 10,822.00 9,860.00 10,515.09

360,297.00 329,932.00 248,136.06

Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses

7,998.00 3,317.00

5,981.00 872.00

3,358.61 3,243.05

371,612.00 336,785.00 254,737.72

310,428.00 279,737.00 198,076.21 7,166.00 3,354.00 4,094.00 2,857.00 2,557.00 2,255.07 2,621.59 2,915.44

Manufacturing 2,258.00

0.00 9,621.00 0.00

7,510.00 255.00 -37.00

7,207.83 500.52 -30.26

332,827.00 296,973.00 213,546.40 Mar '13 Mar '12 33,831.00 39,812.00 2,668.00 37,144.00 11,394.00 0.00 25,750.00 0.00 25,750.00 5,710.00 20,040.00 17,236.00 0.00 2,531.00 Mar '11 37,832.71 41,191.32 2,328.30 38,863.02 13,607.58 0.00 25,255.44 0.00 25,255.44 4,969.14 20,286.30 15,470.19 0.00 2,384.99

Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend

30,787.00 38,785.00 3,036.00 35,749.00 9,465.00 0.00 26,284.00 0.00 26,284.00 5,281.00 21,003.00 22,399.00 0.00 2,628.00

Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

447.00

410.00

386.90

32,286.63 65.05 90.00 557.49

32,710.59 61.26 85.00 498.21

32,733.74 61.97 80.00 446.25

CASH FLOW STATEMENT

Reliance Industries Cash Flow ------------------- in Rs. Cr. ------------------Mar '12 12 mths 25750.00 26974.00 -3046.00 -11465.0 Mar '11 12 mths 25242.24 33280.52 -20332.8 724.57

Mar '13 12 mths Net Profit Before Tax 26284.00 Net Cash From 32995.00 Operating Activities Net Cash (used in)/from -14797.0 Investing Activities Net Cash (used in)/from -8249.00 Financing Activities Net (decrease)/increase 9949.00 In Cash and Cash Equivalents Opening Cash & Cash 39598.00 Equivalents Closing Cash & Cash 49547.00 Equivalents

12463.00 13672.21

27135.00 13462.65 39598.00 27134.86