Reliance Petroleum Updates on Project Progress

Reliance Petroleum Ltd has announced that the Board of Directors of the Company at its meeting held on October 19, 2006 has approved the following disclosure:

1. The status of the Project as on September 30, 2006 is in accordance with the major milestones stated in the Prospectus dated April 28, 2006.

2. As on September 30, 2006, the Company has utilised Rs 4,054.50 crore for the Project against a projected utilisation of funds of Rs 7,266.00 crore. The variation is mainly due to
(i) non-payment of fees under certain vendor contracts awaiting documentation.
(ii) non-incurrence of finance charges as no loans have been drawn.

The Company has entered into Term Loan Agreements for foreign currency borrowings of US $ 2 billion on October 13, 2006 and expects to commence drawing loans in the quarter ending December 2006. The progress of the Project implementation is satisfactory and the Project is expected to be commissioned by December 2008.

3. Balance of unutilised monies out of issue of shares as on September 30, 2006 is held as:

a. Cash and Bank Balances - Rs 4851.21 Crores
b. Deposits - Rs 1100.00 Crores
c. Current Investments - Rs 3459.05 Crores
Total - 9410.26 Crores

The above includes Rs 8,439.70 crore contractually earmarked for payment in advance under project contracts:

4. The Company received over 21 lakhs applications in the Initial Public Offer, and allotted shares to 12.55 lakhs shareholders on May 03, 2006. During the quarter ended September 30, 2006, the Company received 5478 complaints for non-receipt of refund orders. Of the above, 5337 complaints were resolved / replied and there were 141 complaints pending as on September 30, 2006. These complaints have since been resolved / replied.

Source : Equity Bulls

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