Reliance Infrastructure Analysis

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.

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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

IPO OF COMPPANY OVER LAST 5 YRS-------------------------------------------23

NEWS AND IMPACT ON ITS SHARE PRICE--------------------------------------25

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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.

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.

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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. -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

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-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 -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.

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-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 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

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-Life Insurance Corporation of India has informed that they have acquired 55,00,000 equity shares of Reliance Energy Limited. -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.

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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 [email protected] 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 Email : [email protected] : http://www.kcpl.karvy.com/

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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

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 93,562.70Power Grid Corp 110.40 46,465.61 6,675.85 1,690.61 41,999.41Reliance Power 159.75 38,288.88 --248.90 13,792.81NHPC 30.50 37,517.27 2,671.85 1,075.22 30,214.65Tata Power 1,368.55 32,476.68 7,236.23 922.20 13,890.56Reliance Infra 1,115.80 27,322.62 9,868.61 1,066.54 19,239.62

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Adani Power 119.85 26,127.72 -- -1.87 7,277.74Neyveli Lignite 152.50 25,585.07 3,354.91 821.09 13,526.93JSW Energy 119.25 19,557.65 - - -Torrent Power 307.50 14,527.79 4,424.96 405.09 6,485.70

COMPARISON WITH ITS COMPETITORS

Reliance Infra NTPC Power Grid Corp Reliance Power NHPC

/

Mar '09 Mar '09 Mar '09 Mar '09 Mar '09

/

Sources Of Funds

Total Share Capital 226.07 8,245.50 4,208.84 2,396.80 11,182.49

Equity Share Capital 226.07 8,245.50 4,208.84 2,396.80 11,182.49

Share Application Money 783.49 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 10,308.14 50,749.40 9,325.14 11,396.01 6,798.13

Revaluation Reserves 589.74 0.00 0.00 0.00 0.00

Networth 11,907.44 58,994.90 13,533.98 13,792.81 17,980.62

Secured Loans 1,848.33 8,969.60 25,288.25 0.00 8,212.38

Unsecured Loans 5,483.85 25,598.20 3,177.18 0.00 4,021.65

Total Debt 7,332.18 34,567.80 28,465.43 0.00 12,234.03

Total Liabilities 19,239.62 93,562.70 41,999.41 13,792.81 30,214.65

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

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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

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 30/09/2009Face value 10.00 10.00 10.00

No. Of Shares

% Holding

No. Of Shares

% Holding

No. Of Shares

% Holding

Promoter's holdingIndian Promoters 104628646 42.73 85028646 37.75 85028646 37.75Sub total 104628646 42.73 85028646 37.75 85028646 37.75 Non promoter's holding Institutional investorsBanks Fin. Inst. and Insurance

48601300 19.85 46606200 20.69 43336279 19.24

FII's 35020354 14.30 37002154 16.43 40976146 18.19Sub total 99749008 40.74 99098927 43.99 100575807 44.65 Other investorsPrivate Corporate Bodies

8658138 3.54 9571170 4.25 8786818 3.90

NRI's/OCB's/Foreign Others

1613563 0.66 1583117 0.70 1520313 0.67

Govt 73010 0.03 80804 0.04 80804 0.04Others 970077 0.40 1172205 0.52 1033572 0.46Sub total 11314788 4.62 12407296 5.51 11421507 5.07General public 29177820 11.92 28735393 12.76 28244302 12.54Grand total 244870262 100.00 225270262 100.00 225270262 100.00

ySENSEX 17558.71 55.24 NIFTY 5278.00 23.85

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1136.10 12.90 (1.15%)

BSE : Apr 30, 16:01

Open Price 1130.00   Volume 262049High Price 1158.80   52 Wk High 1404.45Low Price 1125.00   52 Wk Low 766.70

Prev. Close 1123.20  

  Bid

Offer

Price 1136.10 0.00Quantity 95.00 0.00

1137.40 11.90 (1.06%)

NSE : Apr 30, 17:30

Open Price 1128

.00  Volume 809131

High Price 1158.40   52 Wk High 1404.50Low Price 1126.00   52 Wk Low 715.95

Prev. Close 1125.50  

  Bi

d Off

erPrice 0.00 0.00Quantity 0 0

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4)CAPITAL STRUCTURE FOR LAST 3 YRS:-

Capital structure (Rs in crs)

From Year

To Year

Class Of Share

Authorized Capital

Issued Capital

Paid Up Shares (Nos)

Paid Up Face Value

Paid Up Capital

2008 2009Equity Share

358.00 228.43 226023767 10 226.02

2007 2008Equity Share

358.00 237.98 235578762 10 235.58

2006 2007Equity Share

258.00 230.93 228530308 10 228.53

2005 2006Equity Share

258.00 214.72 212320251 10 212.32

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.

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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:-

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

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

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 & provisions

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

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

Miscellaneous expenses not written

- - - - -

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

Profit loss account

  Mar ' 09 Mar ' 08Mar '

07Mar ' 06 Mar ' 05

IncomeOperating income 9,640.16 6,331.50 5,752.47 3,963.97 4,156.73

ExpensesMaterial consumed 4,272.53 2,501.51 1,601.86 1,031.93 1,030.04Manufacturing expenses  3,308.95 2,403.59 2,919.43 1,710.82 2,036.25Personnel expenses 536.62 367.95 290.35 212.80 201.68Selling expenses 173.26 149.89 133.48 8.35 9.84Adminstrative expenses 914.40 371.00 310.24 235.88 206.32Expenses capitalised - - - - -Cost of sales 9,205.76 5,793.94 5,255.36 3,199.78 3,484.13Operating profit 434.40 537.56 497.11 764.19 672.60Other recurring income 971.07 738.58 695.22 555.24 311.84Adjusted PBDIT 1,405.47 1,276.14 1,192.33 1,319.43 984.44Financial expenses 330.50 308.76 250.32 191.88 134.82Depreciation  244.88 222.94 240.06 417.83 479.26Other write offs - - - - -Adjusted PBT 830.09 744.44 701.95 709.72 370.36

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  Mar ' 09 Mar ' 08Mar '

07Mar ' 06 Mar ' 05

Tax charges  126.89 160.37 122.07 50.58 49.50Adjusted PAT 703.20 584.07 579.88 659.14 320.86Non recurring items 310.12 258.77 103.05 -14.22 61.00Other non cash adjustments 127.41 241.79 157.92 -65.14 5.46Reported net profit 1,140.73 1,084.63 840.85 579.78 387.32Earnigs before appropriation 1,915.59 1,443.91 1,116.78 780.09 509.87Equity dividend 157.69 147.73 121.12 104.62 87.21Preference dividend - - - - -Dividend tax 26.80 25.11 20.58 14.87 11.74Retained 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.

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:-17

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 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%

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Liquidity ratios

Current ratio 1.55 2.47 3.93 4.25 3.94

Current ratio (inc. st loans) 0.74 1.06 1.51 2.09 3.58

Quick ratio 1.45 2.37 3.82 4.07 3.75

Inventory turnover ratio 55.96 40.26 32.87 19.60 31.27

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 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:-

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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 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

20

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.

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:-21

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

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 -

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.

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

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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 ChartLast Trade

Traded

Date

Change

%Change

Open

High

Low

Volume

Best Bid

Best Offer

Previous

Close

52 Week

High

52 Week

Low

Avg.

Volume

1101.90

03-May-2010

16:11

0.00

0.00

1125.00

1133.95

1098.05

186,013

1101.90

0.00

(03-May-

2010)

1101.90

(14-Oct-

2009)

1404.45

(04-May-

2009)

705.25

257454

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.

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1101.55

03-May-2010

16:10

0.00

0.00

1134.55

1134.55

1096.60

781,161

0.00

0.00

(03-May-

2010)

1101.55

(14-Oct-

2009)

1404.50

(04-May-

2009)

715.95

1185226

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.

“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.

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NEWS RELEVANT TO COMPANY AND ITS IMPACT ON THE SHARE PRICE OF THE COMPANY:-

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.

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.

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Share Price Movement

PeriodPricein Rs

Gain/(Loss) in Rs in %

1 Week 1,008.05 7.60 0.751 Month 1,004.75 10.90 1.083 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 ADAG invests over Rs 18.21 billion in the company. It 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 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.

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%.

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

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Share Price Movement

PeriodPricein Rs

Gain/(Loss) in Rs in %

1 Week 1,023.30 (24.95) (2.44)1 Month 995.35 3.00 0.303 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

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%.

T he share closed down 0.63% or Rs 5.75 at Rs 914.10.

Share Price Movement During The Last 12 Months

Period Price Latest Price Gain/Loss (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

1-Year 364.90 956.00 591.10 161.99

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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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