TERM PAER

ON

FINANCIAL
MANAGEMENT
COMPANY:-RELIANCE
INFRASTRUCTURE

SUBMITTED TO
MS.ANUSHITAL SINHA
PREPARED BY:-
SHILPI DAW
ROLL NO-RR1903B45

1
 REGD. NO-10903434
ACKNOWLEDGEMENT

I feel deep sense of gratitude in thanking all those who

helped me to carry out the term paper to its eventual
fruitition.

I would like to take this opportunity to extend my

sincere gratitude to LOVELY PROFESSIONAL
UNIVERSITY for providing me with an opportunity to
prepare a term paper on finance management.

I would like to express my most sincere gratitude to my

Faculty guide Ms ANUSHITAL SINHA, Lovely Professional
University – Phagwara for the constant guidance,
encouragement and motivation he extended for the
term paper.

I also extended my gratitude to my friends,

classmates , well wishers and all those who helped me
in some way or other in the completion of term paper.

2
 TABLE OF CONTENT:-
CHAPTER
PAGE NO
INTRODUCTION--------------------------------------------------------
--------------- 04

a)HISTORY---------------------------------------------------------------
---------------05

b)BACKGROUND-------------------------------------------------------
---------------09

C)MANAGEMENT-------------------------------------------------------
--------------10

COMPANY’S POSITION RELATIVE TO OTHER

INDUSTRY-------------------10

CHANGE IN SHARE PRICE OVER A

YEAR----------------------------------------12

CAPITAL STRUCTURE OVER LAST 3

YRS-----------------------------------------14

LIQUIDITY
POSITION----------------------------------------------------------------
-15

FINANCIAL
CREDIBILITY------------------------------------------------------------
-20

CREDIT
RATING-------------------------------------------------------------------
-----22
3
IPO OF COMPPANY OVER LAST 5
YRS-------------------------------------------23

NEWS AND IMPACT ON ITS SHARE

PRICE--------------------------------------25

INTRODUCTION:-
RELIANCE INFRASTRUCTURE:-
Reliance Infrastructure Ltd is a part of
the Reliance-Anil Dhirubhai Ambani Group (ADAG). It is not only
India’s largest private sector enterprise in power utility but also
the largest private sector player in many other infrastructure
sectors of India. The company’s current EPC order book stands
at Rs.190bn. And it is in a good liquidity position, with cash &
cash equivalent of more than Rs.78bn.

The company continues to bag further projects in the

infrastructure space with road (9 projects) and metro (3
projects) being the leading sectors. The company is also the
lead bidder for the Mumbai sea link project.

Reliance Infra led consortium has signed a concession

agreement with the govt of Maharashtra for the second line of
Mumbai Metro Rail Project on BOT) basis.

The top line and bottom line of the company are expected to
grow at a CAGR of 21.25% and 10.79% FY08 to FY11E.
4
 Reliance Infrastructure Ltd is not only India’s largest
private sector enterprise in power utility but also the largest
private sector player in many other infrastructure sectors of
India. In the power sector we are involved in generation,
transmission, distribution and trading of electricity and
constructing power plants as EPC partners. In the infrastructure
space the company is focused on roads, Urban infrastructure
which includes MRTS, Sealink and Airports, Specialty Real
Estate which includes business districts, trade towers,
convention centre and SEZ which includes IT & ITES SEZ and
non IT SEZ as well as free trade zones.

India’s second largest business house. The Company

generates over 940 MW of electricity through its power stations
located in Maharashtra, Andhra Pradesh, Kerala, Karnataka and
Goa. Its companies distribute more than 25 billion units of
electricity to over 25 million consumers across an area that
spans over 1,24,300 sq kms and includes India’s two premier
cities, Mumbai and Delhi.

Global Markets Direct, the leading business information

provider, presents an in-depth business, strategic and financial
analysis of Reliance Infrastructure Limited. The report provides
a comprehensive insight into the company, including business
structure and operations, executive biographies and key
competitors. The hallmark of the report is the detailed strategic
analysis and Global Markets Direct’s views on the company.

a) HISTORY OF LAST 5 YRS:-

 2002
- BSES Ltd has informed that Shri R V Shahi Chairman
& Managing
Director of the Company has relinquished the Office of
Chairman &
Managing Director.The Board of Directors has appointed Shri S
S Dua
as acting Chairman & Managing Director.

5
 -BSES appointed J P Chalsani as chief executive officer of
the southwest Delhi electricity distribution company and the
central-east Delhi electricity distribution company, in which
BSES has a controlling stake.

-Reliance Industries Ltd. increases the stake in the

company to 31.54%

-Signs confidentiality agreement for buying out Enron's

stake in Dabhol Power Company

-Issues Non Covertible Debentures (NCD) for Rs 100 crore

-Company's 500-mw Dahanu thermal power station

achieves a availability of 100 per cent and a plant load factor
(PLF) of 98.92 per cent during March

-Power Ventures increases the holding in the company to

23.88%

-Acquires 51% stake in two Delhi Vidyut Board's power

distribution companies (Central East Delhi Electricity
Distribution Company Ltd and South West Delhi Electricity
Distribution Company Ltd.)

-Delhi government signs a share-holding agreement with

Bombay Suburban Electric Supplies (BSES) and Tata Power for
power distribution in Delhi

-Changed names of its two power distribution companies in

Delhi.
While the South West Delhi electricity Distribution Company
was renamed as BSES Rajdhani Power Ltd, the Central East
Delhi Electricity Distributio Company was christened BSES
Yamuna PowerLtd.

-Pulls out of 250 MW power project in Tamil Nadu

-Reliance group increases stake in the company from 38% to

40.29% through creeping acquisition route

6
 -Reliance Power Ventures acquires 28,28,545 shares of BSES
Ltd, increases the stake to 28.30%

-Completes US$ 120 million Foreign Currency Convertible Bond

issue

 2003

- Company becomes part of the Reliance Group, with Mr Anil D

Ambani, Vice Chairman and Managing Director of Reliance
Industries Ltd.unanimously being appointed by the Board as
Chairman of BSES.

-The name of BSES Ltd changed to Reliance Energy Ltd.

-BSES Andhra Power Ltd, BSES Kerala Power Ltd, BSES

Rajdhani Power Ltd, BSES Yamuna Power Ltd, North Eastern
Electricity Supply Company of Orissa Ltd, Southern Electricity
Supply Company of Orissa Ltd,Tamil Nadu Industries Captive
Power Company Ltd and Western Electricity Supply Company of
Orissa Ltd cease to be subsidiaries of the Company with effect
from March 29, 2003

-Members approve delisting of company's shares from the

following
stock exchanges:

1. Ahmedabad Share & Stock Brokers Association

2. Bangalore Stock Exchange Ltd
3. Calcutta Stock Exchange Association Ltd
4. Delhi Stock Exchange Association Ltd
5. Inter Connected Stock Exchange of India Ltd.

-BSES Andhra Power Ltd. becomes 100-pc subsidiary of

Reliance Energy

-Allots equity shares to Bank of New York on options exercised

by it

-Anil Ambani, vice-chairman and managing director, Reliance

Industries Ltd, and chairman, BSES Ltd, voted as the MTV
Youth Icon
7
of the Year by young Indians across the country

-Maharashtra Govt. took back its nominee from the company

board

-Reliance Salgaocar Power becomes Wholly Owned Subsidiary

of the
company

-BSES signs an agreement with US bank for GDR conversion

 2004

-Reliance decides to revamp Hirma mega thermal power

project

-Easy Bill, a Hero group company, inks pact with BSES for bill
collection

-Promoters' holding in BSES has dropped by 5.67 per cent to

52.55 per cent

-BSES Andhra Power Ltd. & Reliance Salgaocar Power Company

Ltd (RSPCL) merged with the Company

-Janus acquires 4-pc stake in Reliace Energy

-The name of BSES Limited shall be changed to Reliance

Energy Limited and the trading symbol of BSES Limited be
changed from BSES to REL w.e.f. March 12, 2004.

-Mops up 8 million (Rs 805 cr) through a five-year zero-coupon

foreign currency convertible bond (FCCB) issue

-Enters into two foreign currency facility agreements pursuant

to which the Company was required to create security over
certain of its assets by certain specified times after the
respective dates of the Facilities

-Life Insurance Corporation of India has informed that they

have acquired 55,00,000 equity shares of Reliance Energy
Limited.
8
 -Reliance Power Ventures Limited acquires 91,95,622 shares
representing 4.99% of voting rights of Reliance Energy Limited
via preferential allotment and the date of acquisition is April 03.

 2005.

-Reliance Energy, Govt of UP and Reliance sign the State

Support Agreement

-Reliance wins Koldam project over Essar

-Reliance join hands with Temasek to establish first power VF

- launches multilingual power bills on September 16, 2004

 2006

-Reliance Energy join hands with Bajaj for CFL bulbs

-The Company along with its consortium on November
07, 2006 signed Contract with Ministry of Petroleum and
Natural Gas (MoPNG) for exploration and production of four
Coal Bed Methane (CBM) blocks.

 2007

-Reliance Energy Ltd has appointed Shri. Lalit Jalan as

Whole-time Director on the Board.

-CRISIL has reaffirmed its outstanding ratings of

'AAA/Stable/P1+' on
Reliance Energy Ltd's (Reliance Energy's) debt
programmes.

9
 b) BACKGROUND:-
Company Background - Reliance Infrastructure

Industry Name Power -

Generation/Distribution
House Name ADA
Ent. Group
Collaborative Country Name N.A.
Joint Sector Name
N.A.
Year Of Incorporation 1929
Year Of Commercial Production N.A.

Regd. Office

Address Reliance Energy

Centre, Santa Cruz (East)
District Mumbai
State Maharashtra
Pin Code 400055
Tel. No 022-30099999
Fax No 022-30099763
Email
rel.investor@relianceada.com
Internet
http://www.rinfra.com/

Auditors Price Waterhouse

Company Status N.A.

Registrars
Name Karvy Computershare
Private Ltd
Address Cyber Villa, Plot No.17-
24, Vittalrao Nagar, Hyderabad -
500081, Andhra Pradesh

Tel. No. : 23420815 - 820

Fax No. : 23431551
10
Email :
einward.ris@karvy.com
Internet :
http://www.kcpl.karvy.com/

C) MANAGEMENT:-

Name
Designation
Anil D Ambani
Chairman / Chair Person

Satish Seth Vice

Chairman

Lalit Jalan Whole

Time Director

S C Gupta
Director (Operations)

V P Malik
Director

Leena Srivastava
Director

L Rao
Director

V R Galkar
Director

11
 1) COMPANY’S POSITION RELATIVE TO
OTHER INDUSTRY:-

Last price Mkt Cap. Sales

Net Total
(rs crore) Turnover
Profit Asset

NTPC 204.80 168,867.11 44,126.08 8,201.30 93,562.70

Power Grid Corp 110.40 46,465.61 6,675.85 1,690.61 41,999.41
Reliance Power 159.75 38,288.88 --248.90 13,792.81
NHPC 30.50 37,517.27 2,671.85 1,075.22 30,214.65
Tata Power 1,368.55 32,476.68 7,236.23 922.20 13,890.56
Reliance Infra 1,115.80 27,322.62 9,868.61 1,066.54 19,239.62
Adani Power 119.85 26,127.72 -- -1.87 7,277.74
Neyveli Lignite 152.50 25,585.07 3,354.91 821.09 13,526.93
JSW Energy 119.25 19,557.65 - - -
Torrent Power 307.50 14,527.79 4,424.96 405.09 6,485.70

Application Of Funds
Gross Block 6,922.69 62,353.00 40,319.33 78.18 21,460.08
Less: Accum. Depreciation 3,582.52 29,415.30 9,190.89 1.58 3,816.27
Net Block 3,340.17 32,937.70 31,128.44 76.60 17,643.81
Capital Work in Progress 564.42 26,404.90 13,286.00 55.84 10,498.62
Investments 12,147.10 13,983.50 1,592.83 6,282.71 2,793.60
Inventories 440.68 3,243.40 297.57 0.00 56.71
Sundry Debtors 1,523.33 3,584.20 1,373.56 0.00 294.66
Cash and Bank Balance 249.97 271.80 53.06 14.37 240.79
Total Current Assets 2,213.98 7,099.40 1,724.19 14.37 592.16
Loans and Advances 6,757.39 7,826.10 2,928.01 7,407.58 2,167.95
Fixed Deposits 1.04 15,999.80 2,375.82 0.06 1,659.16
Total CA, Loans & Advances 8,972.41 30,925.30 7,028.02 7,422.01 4,419.27
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 5,018.23 7,439.20 8,851.56 43.05 3,479.72
Provisions 766.25 3,249.50 2,189.82 1.30 1,663.26
Total CL & Provisions 5,784.48 10,688.70 11,041.38 44.35 5,142.98
Net Current Assets 3,187.93 20,236.60 -4,013.36 7,377.66 -723.71

12
Miscellaneous Expenses 0.00 0.00 5.50 0.00 2.33
Total Assets 19,239.62 93,562.70 41,999.41 13,792.81 30,214.65
/

3)CHANGE IN SHARE PRICE OVER A YEAR:-

Share holding

Share holding pattern as on : 31/03/2010 31/12/2009 30/09/2009

Face value 10.00 10.00 10.00
No. Of % No. Of % No. Of %
Shares Holding Shares Holding Shares Holding
Promoter's holding
Indian Promoters 104628646 42.73 85028646 37.75 85028646 37.75
Sub total 104628646 42.73 85028646 37.75 85028646 37.75
Non promoter's holding
Institutional investors
Banks Fin. Inst. and
48601300 19.85 46606200 20.69 43336279 19.24
Insurance
FII's 35020354 14.30 37002154 16.43 40976146 18.19
Sub total 99749008 40.74 99098927 43.99 100575807 44.65
Other investors
Private Corporate
8658138 3.54 9571170 4.25 8786818 3.90
Bodies
NRI's/OCB's/Foreign
1613563 0.66 1583117 0.70 1520313 0.67
Others
Govt 73010 0.03 80804 0.04 80804 0.04
Others 970077 0.40 1172205 0.52 1033572 0.46
Sub total 11314788 4.62 12407296 5.51 11421507 5.07
General public 29177820 11.92 28735393 12.76 28244302 12.54
Grand total 244870262 100.00 225270262 100.00 225270262 100.00

ySENSEX 17558.71 55.24 NIFTY 5278.00 23.85

1136.10 12.90 (1.15%)

BSE : Apr 30, 16:01

Open Price 1130.00 Volume 262049
High Price 1158.80 52 Wk High 1404.45
Low Price 1125.00 52 Wk Low 766.70
Prev. Close 1123.20

13
 Bid Offer
Price 1136.10 0.00
Quantity 95.00 0.00

1137.40 11.90 (1.06%)

NSE : Apr 30, 17:30

1128
Open Price Volume 809131
.00
High Price 1158.40 52 Wk High 1404.50
Low Price 1126.00 52 Wk Low 715.95

Prev. Close 1125.50

Bi Off
d er
Price 0.00 0.00
Quantity 0 0

4)CAPITAL STRUCTURE FOR LAST 3 YRS:-

14
Capital structure (Rs in crs)
From To Class Of Authorized Issued Paid Up Paid Up Paid Up
Year Year Share Capital Capital Shares (Nos) Face Value Capital
Equity
2008 2009 358.00 228.43 226023767 10 226.02
Share
Equity
2007 2008 358.00 237.98 235578762 10 235.58
Share
Equity
2006 2007 258.00 230.93 228530308 10 228.53
Share
Equity
2005 2006 258.00 214.72 212320251 10 212.32
Share

The optimum capital structure is one that maximises the market value of the firm. The
capital structure should be planned generally keeping in a view the interest of the
equity shareholders and the financial requirement of the company. The equity
shareholders being the owner of the company and the provider of risk capital(equity),
would be concerned about the way of financing company’s operation.

INTERPRETATION:-
As the capital structure has increased with 228.58 to 235.58
which means that risk has been increased which means with
increase in equity share, risk has also been increased.As
then in 2008-2009, equity shares has decreased to 228.02
which means when in previous year their increased they
become more conscious and analysed everything in order to
decrease their risk. Hence with increase in equity share the
risk increased and with decrease in equity share ,risk
decreases.

They have become conscious and they have taken correct

decision and have made their authorised capital more
secured by taking loan, paying interest etc.

5) LIQUIDITY POSITION:-
FINANCIAL STATEMENT OF COMPANY:-
15
Balance sheet

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Sources of funds

Owner's fund

Equity share capital 226.07 235.62 228.57 212.36 185.61

Share application money 783.49 783.49 - 88.24 568.01

Preference share capital - - - - -

Reserves & surplus 10,308.14 10,024.16 8,412.74 6,820.51 4,834.10

Loan funds

Secured loans 1,848.33 1,125.00 1,435.00 1,919.81 785.00

Unsecured loans 5,483.85 3,884.04 4,423.32 2,347.12 2,953.67

Total 18,649.88 16,052.31 14,499.63 11,388.04 9,326.39

Uses of funds

Fixed assets

Gross block 6,922.69 6,396.14 5,898.36 5,470.61 5,172.97

Less : revaluation reserve 589.74 643.69 697.93 752.17 752.17

Less : accumulated depreciation 3,582.52 3,328.56 3,082.49 2,814.55 2,452.85

Net block 2,750.43 2,423.89 2,117.94 1,903.89 1,967.95

Capital work-in-progress 564.42 568.92 288.49 217.65 192.19

Investments 12,147.10 7,664.36 2,511.88 1,192.74 696.22

Net current assets

Current assets, loans & advances 8,972.41 9,073.85 12,849.04 10,559.79 8,668.18

Less : current liabilities &

5,784.48 3,678.71 3,267.72 2,486.03 2,198.15
provisions

Total net current assets 3,187.93 5,395.14 9,581.32 8,073.76 6,470.03

Miscellaneous expenses not

- - - - -
written
16
 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Total 18,649.88 16,052.31 14,499.63 11,388.04 9,326.39

Profit loss account

Mar '
Mar ' 09 Mar ' 08 Mar ' 06 Mar ' 05
07
Income
Operating income 9,640.16 6,331.50 5,752.47 3,963.97 4,156.73
Expenses
Material consumed 4,272.53 2,501.51 1,601.86 1,031.93 1,030.04
Manufacturing expenses 3,308.95 2,403.59 2,919.43 1,710.82 2,036.25
Personnel expenses 536.62 367.95 290.35 212.80 201.68
Selling expenses 173.26 149.89 133.48 8.35 9.84
Adminstrative expenses 914.40 371.00 310.24 235.88 206.32
Expenses capitalised - - - - -
Cost of sales 9,205.76 5,793.94 5,255.36 3,199.78 3,484.13
Operating profit 434.40 537.56 497.11 764.19 672.60
Other recurring income 971.07 738.58 695.22 555.24 311.84
Adjusted PBDIT 1,405.47 1,276.14 1,192.33 1,319.43 984.44
Financial expenses 330.50 308.76 250.32 191.88 134.82
Depreciation 244.88 222.94 240.06 417.83 479.26
Other write offs - - - - -
Adjusted PBT 830.09 744.44 701.95 709.72 370.36
Tax charges 126.89 160.37 122.07 50.58 49.50
Adjusted PAT 703.20 584.07 579.88 659.14 320.86
Non recurring items 310.12 258.77 103.05 -14.22 61.00
Other non cash adjustments 127.41 241.79 157.92 -65.14 5.46
Reported net profit 1,140.73 1,084.63 840.85 579.78 387.32
Earnigs before appropriation 1,915.59 1,443.91 1,116.78 780.09 509.87
Equity dividend 157.69 147.73 121.12 104.62 87.21
Preference dividend - - - - -
Dividend tax 26.80 25.11 20.58 14.87 11.74
Retained earnings 1,731.10 1,271.07 975.08 660.60 410.92

RATIO ANALYSIS:-
A ratio is simply one number expressed in terms of another number. It means
highlighting in arithmetical terms the relationship between figures drawn from
financial statement. These ratios deals with the relationship between two items
appearing in balance sheet or appearing in trading and profit & loss a/c itself.
17
LIQUIDITY RATIO:
Liquidity means the ability of the firm to meet its current liabilities (or short term
obligation) as they fall due. Liquidity is the ease with which assets may be converted
into cash without loss. It tries to establish relationship between current liabilities
which are the obligation soon becoming due and current assets which presumably
provide the source from which these obligation will be met.

a) Current ratio:-
It shows the relationship between current assets and current liabilities. Current
assets are the assets held on a short term basis which refers to an accounting
period.

b) Liquidity ratio:

Liquidity ratio is the relationship between liquid assets and current liabilities.
The ratio seeks to ascertain the liquidity position of a business enterprise.
Liquidity implies the ability to convert current assets into cash

LIQUIDITY RATIO:-
Liquidity ratios
Current ratio 1.55 2.47 3.93 4.25 3.94
Current ratio (inc. st
0.74 1.06 1.51 2.09 3.58
loans)
Quick ratio 1.45 2.37 3.82 4.07 3.75
Inventory turnover 55.9 40.2 32.8 19.6 31.2
ratio 6 6 7 0 7

INTERPRETATION:-

CURRENT RATIO:-In this we see that the current ratio was highest
in the year 2006 which signifies that the year 2006 was beneficial to
18
the short term creditor and it was more than the year 2005 which
shows that there was not a lack of liquidity and there was no
shortage of working capital.

But after 2006 the position of current ratio have been decreased
which signifies that there was lack of liquidity i.e they are unable to
change their assets into cash which means that there is a lack of
working capital in the organisation as this may be due to any other
reason such as recession in 2008 which have decreased their
current ratio position and they were unable to convert their assets
into cash.

A current ratio of over 1 is good news, generally, although if we are

comparing current ratio from year to year and it seems abnormally
high, company may have problems with collecting accounts
receivable or be carrying too much inventory.

QUICK RATIO:-In this we see that the quick ratio is highest in 2006
i.e. 4.07 which means that in this year there is sufficient availability
of funds to meet its liabilities 100%

But comparison to this year their position of quick ratio have been
decreased from the year 2006 which means that there is no
sufficient availability of funds to meet their liabilities for which they
there is lack of working capital and there is decrease in their current
position.

Quick ratios are often explained as measures of a company’s ability

to pay their current debt liabilities without relying on the sale of
inventory. Compared with the current ratio, the quick ratio is more
conservative because it does not include inventories which can
sometimes be difficult to liquidate. For lenders, the quick ratio is
very helpful because it reveals a company’s ability to pay off under
the worst possible condition.

Although the quick ratio gives investors a better picture of a

company’s ability to meet current obligations the current ratio,
investors should be aware that the quick ratio does not apply to the
19
handful of companies where inventory is almost immediately
convertible into cash

INVENTORY TURNOVER RATIO:- This ratio should be compared

against industry averages. A low turnover implies poor sales and,
therefore, excess inventory as it was in year 2006 which was
19.60in which they have their least inventory high ratio implies
either strong sales or ineffective buying which was in the year 2009
i.e.55.96.

High inventory levels are unhealthy because they represent an

investment with a rate of return of zero. It also opens the company
up to trouble should prices begin to fall.

FINANCIAL CREDABILITY:-
Management Discussion and Analysis
Management Discussion and Analysis of financial condition including results of
operations of the Company for the year under review as required under clause 49 of
the listing agreement with the stock exchanges, is given as a separate statement in the
annual report.

The Company has entered into various contracts in the areas of energy and
infrastructure business. While the benefits from such contracts will accrue in the
future years, their progress is periodically reviewed.

•Increased equity investments :

During FY09, RELI has invested Rs12b, taking total investment in
infrastructure project SPVs (roads, metros, power transmission) at Rs13.4b (vs
20
Rs1.3b in FY08). This represents ~46% of the equity commitments towards
infrastructure SPVs under implementation. Besides, RELI has invested Rs1.6b
mainly representing cost of land acquisition.

• Dividend declared

For the the financial year 2008-09 the company has declared a dividend of Rs 7 per
share (70%) on fully paid up equity shares of Rs 10 each.

Directors recommend a dividend of Rs 6.30 (63 per cent) per equity share
aggregating Rs 147.73 crore for the financial year 2007-08 which, if approved at the
ensuing 79th AGM, will be paid to (i) those members whose names appear on the
Register of Members of the Company after giving effect to all valid share transfers in
physical form lodged with the Company on or before July 7, 2008, and (ii) to those
members whose names appear as beneficial owners as at the end of business hours on
July 7, 2008,

• Fixed Deposits

The Company discontinued accepting fixed deposits since December 1998.The

Company, during the year, transferred Rs 95,061 being the unclaimed deposit and
interest thereon to the Investor Education and Protection Fund set up by the
Government of India. There was no unclaimed fixed deposit as on March 31, 2008.

• Authorised Share Capital

In order to make the preferential issue of equity linked securities to the promoters,
the authorised share capital of the Company was increased during the year by Rs 100
crore, from Rs 1,850 crore to Rs 1,950 crore by increasing the number of authorised
equity shares from 25 crore equity shares to 35 crore equity shares of Rs 10 each.

• Preferential allotment of warrants

The Company allotted 4,30,00,000 warrants at Rs 1,822.08 each (including a premium

of Rs 1,812.08 per equity share) on preferential basis to one of the promoter
companies. The warrants are convertible into equity shares of Rs 10 each on or before
18 months from the date of allotment of warrants, i.e. on or before July 19, 2010.

• Net profit

In this we see that the net profit have been increased 2008 to 2009 which means that
there income is more than there expenses which proves that they are in a good
position in order to handle any kind of obligation in future.
21
 • Gross Profit

In this we see that the gross profit have also increased from 2008-2009 which means
that there is increase in sale of goods and there cost of production is lower which
means that they have taken correct decision and they are in a sound position in order
to handle their any kind of obligation in future.

• Equity share capital:-

In this we see that the share equity share capital is decreasing from 2008 to 2009
which means that there risk have been reduced which was a result of proper
management decision.

• Retained Earning

In this we see that the retained earning is continuously and constantly increasing year
by year which means that the company have a sufficient amount of part of profit
which they can use to cope up with any kind of discrepancy in future. They can
properly utilises their fund in allocation of proper resources.

CREDIT RATING OF COMPANY:-

Rating
CARE has assigned a ‘PR1+’ (PR One Plus) rating to the proposed Commercial
Paper/Short-term Debt issue of Reliance Infratel Limited (RITL)
aggregatingRs.1,500.00 crore. This rating is applicable for instruments having a tenure
upto one year. Instruments with this rating would have strong capacity for timely
payment of short-term debt obligations and carry lowest credit risk.

CARE assigns ‘+’ or ‘-’ signs to be shown after the assigned rating (wherever
necessary) to indicate the relative position within the band covered by the rating
symbol.The rating factors in the strength derived by RITL by virtue of being a part of
the Reliance-ADAG group,operational and management experience in the business of
providing passive telecom infrastructure, status of being one of the largest passive
telecom infrastructure company in India with countrywide network of tower sites and
optic fibre network, significant project execution skills, agreement with RCOM &

22
RTL as anchor tenants, tower sharing agreements with other new telecom service
providers and positive outlook for passive infrastructure sector.

Increasing competition from other tower companies isthe rating concern.Ability of the
company to increase tenancy levels in the increasingly competitive market is
keyrating sensitivity.

Rating Agency Instrument Rating

CRISIL Long Term Debt AAA

Fitch Long Term Debt Ind AAA

CRISIL Short Term Debt P1+

CRISIL Working Capital Debt AAA

Moody's International Debt Baa2

S&P International Debt BBB

Fitch International Debt BBB -

IPO issues made by companies in the last 5 yrs:-

Corporates may raise capital in the primary market by way of an initial
public offer, rights issue or private placement. An Initial Public Offer (IPO)
is the selling of securities to the public in the primary market. This Initial
Public Offering can be made through the fixed price method, book building
method or a combination of both.

3rd MAY 2010:-

QUOTES Live BSE Quote Live NSE Quote BSE Intraday Chart

23
Last Trade 1101.90 1101.55
• 03-May-2010 • 03-May-2010
• Traded 16:11 16:10
•
0.00 •
0.00
Date •
0.00 •
0.00
• Change • 1125.00 • 1134.55
• %Change • 1133.95 • 1134.55
• Open • 1098.05 • 1096.60
• High • 186,013 • 781,161
• Low • 1101.90 • 0.00
• Volume • 0.00 • 0.00
• Best Bid • (03-May- • (03-May-
• Best Offer 2010) 2010)
• Previous 1101.90 1101.55
Close • (14-Oct- • (14-Oct-
• 52 Week 2009) 2009)
High 1404.45 1404.50
• 52 Week • (04-May- • (04-May-
Low 2009) 2009)
705.25 715.95
• Avg.
Volume • 257454 • 1185226

Reliance Infratel plans Rs 5,000-crore IPO

It would be the second-largest IPO after the Rs 6,000-crore one by
state-run National Hydroelectric Power Corporation.

Reliance Infratel, the tower subsidiary of telecom service provider

Reliance Communications (RCom), will file a draft Red Herring
Prospectus (DRHP) for its proposed Initial Public Offer (IPO) of
around Rs 5,000 crore within a wee

This would be second largest IPO after the economic downturn, the
biggest being the Rs 6,000-crore IPO by state-run National
Hydroelectric Power Corporation (NHPC).

Last year, Reliance Infratel had got market regulator Sebi to approve
its proposed IPO. However, with the market conditions “not being
conducive”, the process was frozen.

24
“Reliance Infratel is looking at raising around $1 billion by offloading
a minimum of 10 per cent stake. The company intends to use the
proceeds for its expansion plans, including expansion of its portfolio
of telecom towers and footprint,” sources close to the development
said.

The company needed funds for expansion plans and was in talks
with a clutch of private equity majors. However, with the IPO’s
finalisation, plans to raise funds from private equity companies have
been shelved, they added.

Reasons to buy

- A quick "one-stop-shop" to understand the company.

- Enhance business/sales activities by understanding customers’
businesses better.
- Get detailed information and financial & strategic analysis on
companies operating in your industry.
- Identify prospective partners and suppliers – with key data on their
businesses and locations.
- Capitalize on competitors’ weaknesses and target the market
opportunities available to them.
- Compare your company’s financial trends with those of your
peers / competitors.
- Scout for potential acquisition targets, with detailed insight into the
companies’ strategic, financial and operational performance.

NEWS RELEVANT TO COMPANY AND ITS

IMPACT ON THE SHARE PRICE OF THE
COMPANY:-
25
  RELIANCE INFRA UP 4.49% ON NEWS OF SECURING
ORDER:-

Shares of Reliance Infrastructure are trading at Rs 1,061.30, up

Rs 45.65, or 4.49% at the Bombay Stock Exchange (BSE) on
Monday at 3:05 p.m.

The company has commissioned the first phase of 1,200-MW

Rajiv Gandhi Khedar Thermal Power Plant by putting 600 MW
on stream at Hissar in Haryana on Sunday.

The scrip has touched an intra-day high of Rs 1,064.50 and low

of Rs 1,023. The total volume of shares traded at the BSE is
405,737

In the earlier session, the shares rose 1.73%, or Rs 17.3, at Rs

1,015.65.

Currently, the stock is trading down 24.43% from its 52-week

high of Rs 1,404.45 and above 109.18% over the 52-week low
of Rs 507.35.

Share Price Movement

Price Gain/(Loss)
Period
in Rs in Rs in %
1 Week 1,008.05 7.60 0.75
1 Month 1,004.75 10.90 1.08
3 Months 1,146.90 (131.25) (11.44)
6 Months 1,205.65 (190.00) (15.76)
1 Year 575.30 440.35 76.54

 RELIANCE INFRA RISES 2.50% ON FUNDING NEWS:-

Shares of Reliance Infrastructure are trading at Rs 1,023.30, up

Rs 24.95, or 2.50% at the Bombay Stock Exchange (BSE) on
Thursday at 10:23 a.m.

Reliance ADAG invests over Rs 18.21 billion in the company. It

allotted 19.6 million shares to AAA Project Ventures (P), a

26
Reliance Anil Dhirubhai Ambani promoter group company
against convertible warrants issued to them.

The scrip has touched an intra-day high of Rs 1,027 and low of

Rs 1,000.65. The total volume of shares traded at the BSE is
157,969.

In the earlier session, the shares climbed 0.49%, or Rs 4.9, at

Rs 998.35. Currently, the stock is trading down 27.14% from its
52-week high of Rs 1,404.45 and above 103.04% over the 52-
week low of Rs 504.

Share Price Movement

Price Gain/(Loss)
Period
in Rs in Rs in %
1 Week 1,023.30 (24.95) (2.44)
1 Month 995.35 3.00 0.30
3 Months 1,146.90 (148.55) (12.95)
6 Months 1,205.65 (207.30) (17.19)
1 Year 549.55 448.80 81.67

Reliance ADAG invests over Rs 18.21 bn in Reliance Infra

Reliance Infrastructure today allotted 19.6 million shares to AAA
Project Ventures (P), a Reliance Anil Dhirubhai Ambani promoter
group company against convertible warrants issued to them.

The board had on July 2009 allotted 42.9 million convertible

warrants to AAA Project Ventures (P) entitling them to one equity
share of Rs 10 per warrant at an issue price of Rs 929 a share. The
issue price was calculated as per applicable SEBI guidelines.

The effective purchase cost to the promoter group is Rs 1,112 a

share after taking into consideration the upfront payment of Rs 7.83
billion already received on warrants issues earlier, which were
cancelled.

The promoter group holdings have gone up to 42.73% from 37.74%,

as a result of this new equity capital infusion. On converting the
balance warrants, the promoter group`s holding will increase to
48%.

27
This equity capital infusion will substantially enhance Reliance
Infra`s net worth to Rs 160 billion, and further augment its
borrowing capabilities to Rs 320 billion at even a debt: equity of 2:1,
thereby enabling greater participation in mega growth opportunities
in high growth infrastructure areas, thereby generating superior
returns for its over 1.5 million shareholders.

Shares of Reliance Infrastructure gained Rs 21.65, or 2.17%, to trade

at Rs 1,020.00. The total volume of shares traded was 95,898 at the
BSE (9.35 a.m., Thursday).

 Reliance Industrial Infra up on buying interest

Reliance Infrastructure Industry touched an intraday high of Rs

987.70 and an intraday low of Rs 919. At 12:56 pm, the share was
quoting at Rs 956, up Rs 41.90, or 4.58%.

It was trading with volumes of 223,233 shares, compared to its

five-day average of 74,579 shares, an increase of 199.33%.

The share closed down 0.63% or Rs 5.75 at Rs 914.10.

Share Price Movement During The Last 12 Months

Latest Gain/Loss %
Period Price
Price (Rs.) Gain/Loss

3-Days 909.30 956.00 46.70 5.14

5-Days 887.85 956.00 68.15 7.68

7-Days 913.45 956.00 42.55 4.66

15-Days 911.90 956.00 44.10 4.84

1-Month 918.00 956.00 38.00 4.14

3-Month 1094.15 956.00 -138.15 -12.63

6-Month 984.70 956.00 -28.70 -2.91

9-Month 283.75 956.00 672.25 236.92

28
 1-Year 364.90 956.00 591.10 161.99

Reliance Infrastructure jumps in firm market share

market live news
Reliance Infrastructure jumps in firm market share market news
updates

(05-Apr-2010 , 13:25 Hours IST) share market live updates –

Navia Markets Ltd

The key benchmark indices hovered near their their highest level in
25 months in early afternoon trade as firm Asian stocks underpinned
sentiment. US markets settled at 18-month highs on Thursday, 1
April 2010 while some Asian markets zoomed to 19-months high in
today’s trade buoyed by an upbeat US job data. The BSE 30-share
Sensex was up 139.16 points or 0.79%, up close to 140 points from
the day’s low and off close to 20 points from the day’s high.

The market came off the higher level in early trade after a firm
opening triggered by positive global cues. The market surged to a
fresh 25-month high in early afternoon trade. Stocks held firm in
afternoon trade.

The market breadth was strong. Except the capital goods and IT
indices, all the other sectoral indices on BSE were in green. Metal
stock rose on gains in metal prices on the London Metal Exchange
on Thursday, 1 April 2010. Auto stocks were in demand following
good March 2010 monthly sales of auto firms. Realty stocks also
gained on fresh buying. Index heavyweight Reliance Industries (RIL)
was firm, with the stock moving past the Rs 1,100 mark.

Stock-specific action may rule the roost in the near term based on
expectations of Q4 March 2010 results. IT bellwether Infosys
kickstarts the reporting season on 13 April 2010.

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