We have stalled various projects of national importance on one ground or the other; let us not do the same with Reliance's KG Basin gas.
The Narmada dam assured us of power and water for irrigation of our parched lands. The Tehri project did the same, as did numerous other hydel projects. Indeed, in countries like Canada and the Scandinavian ones, around 90 per cent of the power comes from hydel projects. Yet, a series of litigation as well as agitations, all in the name of protecting the environment, ensured we delayed these projects and, in turn, meant that we had to depend upon more expensive and, ironically, more environmentally-unfriendly thermal power projects. These, and several other such projects, such as a big aluminium one, have been spearheaded by international ‘green’ organisations. The cases have remained in the courts for years, till the Supreme Court set the controversy at rest.
Sadly, we are repeating this behaviour in the case of oil. Huge discoveries of oil and gas have been made in Myanmar and Bangladesh and, it was found, this extended all the way to the Andamans in Indian waters. How important this is can be seen from the fact that, while our dependence on imported oil and gas was just 30 per cent at one time, it is around 75 per cent today. Which is why it is important that a lot more investment is made in exploration and production. For years, this was the exclusive domain of government-owned companies, but once the sector was opened up, there have been many discoveries by private sector players — the biggest, of course, has been Reliance Industries Limited’s (RIL) 80 million metric standard cubic metres per day (mmscmd) of gas in a terrain that is a very tough one, in an area that was prospected and declared dry by a multinational oil giant.
We need to applaud the work done by Reliance Industries and its people, for the work they have done in extremely difficult conditions, in cyclonic seas to provide some relief to India’s energy security. Few other developers have achieved anywhere near the same kind of work, possibly due to the very high costs of drilling and exploration equipment nowadays, or due to the fact that more promising projects are available overseas.
And for this Krishna Godavari Basin gas, the market price could have been a lot higher than what it is at the moment. Instead, the developer and the government benchmarked the price against a lower price — the government then decided that this gas was to be made available to a list of priority sectors first. This would afford them the opportunity to produce power, steel and fertiliser at lower costs and would provide a lot of relief to the exchequer and the economy. The fertiliser and power plants were, till they got the Reliance gas at $4.2 per million metric British thermal units (mmBtu), buying naphtha at $14 for equivalent amounts of gas.
We have to keep in mind as we run to agitate on RIL’s price, that there have been several rounds of the government inviting bidders to participate in the New Exploration Licencing Policy (NELP), but the interest of participating in this highly unpredictable investment is abating — in the last round, no bids were received. I understand there are 170 existing NELP agreements. Can we reopen them at the behest of shareholders and other interest groups as is being demanded in the case of RIL’s KG Basin gas?
I hope that the conspiracy which did not allow hydel or other major projects in India to come up is not allowed to get in the way again. This time, it is not in the form of agitations by the greens, it is being done in a different form. It is being done by raising doubts over what RIL’s production sharing contract (PSC) with the government actually allows, by saying that a family agreement between the two Ambani brothers is more important than the PSC. The idea is to cast a doubt over all PSCs, a move that simply helps those exporting energy to India. How can NELP and the PSC be subservient to a family arrangement?
If it is family arrangements today, it will be some other arrangement the next time around. Environmental and human rights can always be brought in to sabotage other PSC agreements in the future. One of the parties to the agreement has asked for all RIL’s gas contracts to be cancelled, throwing thousands of megawatts of existing generation from existing plants, and also millions of tonnes of cheaper fertiliser production into limbo. All so that the company can be allocated gas at around half the price given to others.
Doesn’t this throw all principles of competition to the winds? And since the price of power is determined through competitive bids (in earlier cases, the cost of fuel was always passed on to customers, never mind what the price of the fuel was), this means the person who gets cheap gas gets windfall profits. And since the government gets a smaller share if the price of RIL gas is dropped by half, this windfall profit will be at the cost of government revenues, the government’s contractual agreements as well as the principles of fair competition.
Exploration and production is a very tricky business, involving huge investments and very high risks of failure, of around 90 per cent or so, I am told. The risk of failure in all such projects has to be borne by the developer. Who will bid for such projects if the NELP and the PSC conditions can be tampered with? It is common knowledge that the fields which are now being offered to bidders are the ones where finding oil/gas is a lot more difficult, risky and expensive. In view of the failure of the last round, we should be debating whether we need to offer improved conditions to attract more developers, not tampering with existing conditions in the name of family agreements that seek to sell gas at a lower price to one company and lower the profits of both the government and the developer.
We need to protect ourselves and realise that our first duty as a country is to secure our energy needs. To do this, we need to strengthen the institutional mechanisms for exploration and production, not mess up existing ones.
source:http://www.business-standard.com/india/storypage.php?autono=363495
Thursday, July 9, 2009
Friday, June 26, 2009
India's richest men join up with Bill Gates for literacy drive in slums
Some of India's richest men have joined forces with Microsoft chairman Bill Gates to launch an ambitious campaign to teach 100 million illiterate Indian slum children to read by the end of 2010.
The task force, which includes British-based billionaires Gopichand Hinduja and L.N Mittal, are expected to lead a fundraising appeal for the campaign at the glitzy Indian Summer Garden Party in Chelsea this weekend.
Its supporters include film director Meera Syal, television comedian Sanjeev Bhaskar, and Gaj Singh, the Maharaja of Jodhpur. Also on board are Indian billionaires Aditya Birla, Keshub Mahindra, Mukesh Ambani, and Dell, the owners of IT giants Google.
Many of them have pledged millions of pounds to the campaign, which is being waged by Pratham, India's largest and most successful charity. The Gates Foundation has donated £9 million, while Google has given a further £2 million.
Their money will fund intensive courses in which the children of poor labourers will be taught how to read and write Hindi for one hour per day for six weeks, by which time they will be able to read stories unaided.
At Kotla Village in East Delhi yesterday, Pratham teacher Manju was reading twelve pre-school children a story to prepare them to learn the Hindi alphabet. Their parents could not afford the books and uniforms they need for government schools, but even if they could, there are simply not enough school places.
Suman Pandey, Pratham's local co-ordinator, said the group was aiming to teach five million children to read in Delhi alone in the next 18 months.
"We have around 42 hours to teach them to read. There's no homework, it's simple rote learning, with 20 children per class," she said.
Since it began its work in 1999, the charity has taught 33 million children basic literacy, several of whom have gone on to university and become community teachers themselves.
Gopichand Hinduja, who is leading the fund-raising appeal, last night told The Daily Telegraph that he hoped the campaign would take poor Indians from the slums and develop them into leaders.
"Indians are all over the world in important positions and it's because of education," he said.
source:http://www.telegraph.co.uk/news/worldnews/asia/india/5637565/Indias-richest-men-join-up-with-Bill-Gates-for-literacy-drive-in-slums.html
The task force, which includes British-based billionaires Gopichand Hinduja and L.N Mittal, are expected to lead a fundraising appeal for the campaign at the glitzy Indian Summer Garden Party in Chelsea this weekend.
Its supporters include film director Meera Syal, television comedian Sanjeev Bhaskar, and Gaj Singh, the Maharaja of Jodhpur. Also on board are Indian billionaires Aditya Birla, Keshub Mahindra, Mukesh Ambani, and Dell, the owners of IT giants Google.
Many of them have pledged millions of pounds to the campaign, which is being waged by Pratham, India's largest and most successful charity. The Gates Foundation has donated £9 million, while Google has given a further £2 million.
Their money will fund intensive courses in which the children of poor labourers will be taught how to read and write Hindi for one hour per day for six weeks, by which time they will be able to read stories unaided.
At Kotla Village in East Delhi yesterday, Pratham teacher Manju was reading twelve pre-school children a story to prepare them to learn the Hindi alphabet. Their parents could not afford the books and uniforms they need for government schools, but even if they could, there are simply not enough school places.
Suman Pandey, Pratham's local co-ordinator, said the group was aiming to teach five million children to read in Delhi alone in the next 18 months.
"We have around 42 hours to teach them to read. There's no homework, it's simple rote learning, with 20 children per class," she said.
Since it began its work in 1999, the charity has taught 33 million children basic literacy, several of whom have gone on to university and become community teachers themselves.
Gopichand Hinduja, who is leading the fund-raising appeal, last night told The Daily Telegraph that he hoped the campaign would take poor Indians from the slums and develop them into leaders.
"Indians are all over the world in important positions and it's because of education," he said.
source:http://www.telegraph.co.uk/news/worldnews/asia/india/5637565/Indias-richest-men-join-up-with-Bill-Gates-for-literacy-drive-in-slums.html
Thursday, June 25, 2009
Tata Power to stop 500 MW supply to Rel Infra after March 2010
Reliance Infra, under flak after it jacked up electricity charges, received yet another setback today with Tata Power deciding to stop
supply of 500 MW of power to it beyond March 31, 2010.
Tata Power said that it was stopping power supply after March 2010 as Reliance Infra has not entered into any power purchase agreement (PPA) with it.
Currently, Tata Power is supplying power of up to 500 MW to Reliance Infra despite there being no PPA between them.
Tata Power has already communicated to Reliance Infra asking it to make alternative arrangements for power beyond March 31, 2010, a company official told reporters here.
Currently, Tata Power is continuing to supply power to the Anil Ambani-controlled company so that no inconvenience is caused to the citizens of Mumbai, the official said.
Historically, Tata Power has been supplying power to erstwhile BSES (now run by Reliance Infra).
After the Electricity Act came into being in 2003, Tata Power initially pleaded with Reliance Infra to enter into a PPA and now that it has not entered, Tata Power was not interested.
Tata Power was under no obligation to supply power to any entity without a PPA, he added.
source: http://economictimes.indiatimes.com/News/News-By-Industry/Energy/Power/Tata-Power-to-stop-500-MW-supply-to-Rel-Infra-after-March-2010/articleshow/4703053.cms
supply of 500 MW of power to it beyond March 31, 2010.
Tata Power said that it was stopping power supply after March 2010 as Reliance Infra has not entered into any power purchase agreement (PPA) with it.
Currently, Tata Power is supplying power of up to 500 MW to Reliance Infra despite there being no PPA between them.
Tata Power has already communicated to Reliance Infra asking it to make alternative arrangements for power beyond March 31, 2010, a company official told reporters here.
Currently, Tata Power is continuing to supply power to the Anil Ambani-controlled company so that no inconvenience is caused to the citizens of Mumbai, the official said.
Historically, Tata Power has been supplying power to erstwhile BSES (now run by Reliance Infra).
After the Electricity Act came into being in 2003, Tata Power initially pleaded with Reliance Infra to enter into a PPA and now that it has not entered, Tata Power was not interested.
Tata Power was under no obligation to supply power to any entity without a PPA, he added.
source: http://economictimes.indiatimes.com/News/News-By-Industry/Energy/Power/Tata-Power-to-stop-500-MW-supply-to-Rel-Infra-after-March-2010/articleshow/4703053.cms
Wednesday, June 10, 2009
Reliance increases LPG supply to oil companies
Reliance Industries Ltd (RIL) has increased LPG supplies to Indian Oil, Bharat Petroleum and Hindustan Petroleum from its twin refineries at Jamnagar, forcing state-run firms to sell cooking fuel cargoes that they had contracted from overseas suppliers. RIL’s production has to be necessarily sold to state-run firms and is not allowed to export LPG.
At the beginning of 2009 calendar year, RIL had indicated availability of 2.7 million tonnes of LPG from its Jamnagar refineries, but in May the company indicated that an additional 700,000 tonnes was available, a government official said.
“The increase in LPG availability forced cancellation or re-export of planned imports,” he said. “Till now, 200,000 to 300,000 tonnes of contracted LPG has either been re-exported or cancelled. RIL is helping dispose of the contracted cargoes.”
India’s total LPG requirement is around 13 million tonnes but state-run refiners do not produce adequate quantities to meet this demand. RIL supplies 2.7 million and the balance is imported.
RIL spokesperson could not be reached for comments.
The official said RIL had last year told the petroleum ministry and the three fuel retailers that it would cut LPG supplies by up to 1 million tonne to 1.7 million tonne from March 2009. It wanted to crack LPG to produce gasoline (petrol) for export to the US and Europe. Accordingly, the oil firms contracted term supplies of LPG from companies like Saudi Aramco.
But the economic downturn and slowdown in fuel demand in the US and Europe led to reversal of plans to produce more gasoline and instead RIL restored the original LPG production.
The official said RIL’s second refinery at Jamnagar had added to the LPG production and the company had indicated availability of around 3,80,000 tonnes a month of the fuel from June to August.
“The PSUs had to cancel or re-export their contracted LPG cargoes as RIL is not allowed to export the cooking fuel and all of the quantity they produce has to be necessarily sold to the state firms,” the official said.
Reliance Petroleum, a subsidiary of RIL, commissioned its new 580,000 barrels per day refinery in December, adjacent to the parent company’s 660,000 plant, making it the world’s biggest refining complex.
RIL had at the beginning of 2009 said it would supply 2.693 million tonnes of LPG to state refiners, but shortly thereafter raised the volumes to 2.965 milllion tonnes, including supplies from the new refinery. It plans to build a 85,000 bpd alkylation unit that will process butane to produce alkylates with a high octane number. That should enable the firm to produce superior quality gasoline to tap US and European markets.
source:http://www.business-standard.com/india/news/reliance-increases-lpg-supply-to-oil-companies/360732/
At the beginning of 2009 calendar year, RIL had indicated availability of 2.7 million tonnes of LPG from its Jamnagar refineries, but in May the company indicated that an additional 700,000 tonnes was available, a government official said.
“The increase in LPG availability forced cancellation or re-export of planned imports,” he said. “Till now, 200,000 to 300,000 tonnes of contracted LPG has either been re-exported or cancelled. RIL is helping dispose of the contracted cargoes.”
India’s total LPG requirement is around 13 million tonnes but state-run refiners do not produce adequate quantities to meet this demand. RIL supplies 2.7 million and the balance is imported.
RIL spokesperson could not be reached for comments.
The official said RIL had last year told the petroleum ministry and the three fuel retailers that it would cut LPG supplies by up to 1 million tonne to 1.7 million tonne from March 2009. It wanted to crack LPG to produce gasoline (petrol) for export to the US and Europe. Accordingly, the oil firms contracted term supplies of LPG from companies like Saudi Aramco.
But the economic downturn and slowdown in fuel demand in the US and Europe led to reversal of plans to produce more gasoline and instead RIL restored the original LPG production.
The official said RIL’s second refinery at Jamnagar had added to the LPG production and the company had indicated availability of around 3,80,000 tonnes a month of the fuel from June to August.
“The PSUs had to cancel or re-export their contracted LPG cargoes as RIL is not allowed to export the cooking fuel and all of the quantity they produce has to be necessarily sold to the state firms,” the official said.
Reliance Petroleum, a subsidiary of RIL, commissioned its new 580,000 barrels per day refinery in December, adjacent to the parent company’s 660,000 plant, making it the world’s biggest refining complex.
RIL had at the beginning of 2009 said it would supply 2.693 million tonnes of LPG to state refiners, but shortly thereafter raised the volumes to 2.965 milllion tonnes, including supplies from the new refinery. It plans to build a 85,000 bpd alkylation unit that will process butane to produce alkylates with a high octane number. That should enable the firm to produce superior quality gasoline to tap US and European markets.
source:http://www.business-standard.com/india/news/reliance-increases-lpg-supply-to-oil-companies/360732/
Monday, June 8, 2009
Shiv Sena workers protest Reliance power tariff hike
Police today resorted to baton charge to disperse the Shiv Sena workers who disrupted traffic on the Western Express Highway protesting hike in electricity charges by Anil Ambani-promoted Reliance Energy Ltd (REL) in suburban Santacruz here.
Sena’s agitation against the tariff hike of REL turned violent after its workers pelted stone at REL’s headquarters on the Andheri-Kurla road and also tried to set a police vehicle on fire.
REL, which distributes power to around 2.6 million consumers in city’s western suburbs, has asked for an average tariff hike of 5 per cent across all the categories of consumers from power regulator Maharashtra Electricity Regulatory Commission (MERC).
According to Jitendra Janawade, a local Sena leader, the agitation was not just against the proposed tariff hike. Recently REL replaced old meters with the Chinese-made ones which has put additional burden on the consumers who have started receiving 30 per cent higher bills. “And once your bill increases, the company also asks for additional security deposit which is a double whammy for the common man,” he said.
Janawade, however, held the police responsible for the agitation turning violent, saying as the delegation of senior leaders was inside REL’s premises discussing the grievances of consumers, with senior company officials, police resorted to baton charge on the peaceful demonstrators. This angered the Shiv Sainiks and common people, who had joined the agitation, and some incident of stone pelting took place.
Sena leaders also raised the issue in the state Assembly and demanded immediate suspension of the police officials who ordered the baton charge.
Meanwhile, a senior REL official said “while we have proposed only an average 5 per cent hike, Brihanmumbai Electric Supply and Transport (BEST), which is controlled by Sena and distributes power in the island city, has asked for a tariff hike of 52 per cent”. “It is ironical that activists of the same party are holding agitation against us,” he said.
source:http://www.business-standard.com/india/news/shiv-sena-workers-protest-reliance-power-tariff-hike/360503/
Sena’s agitation against the tariff hike of REL turned violent after its workers pelted stone at REL’s headquarters on the Andheri-Kurla road and also tried to set a police vehicle on fire.
REL, which distributes power to around 2.6 million consumers in city’s western suburbs, has asked for an average tariff hike of 5 per cent across all the categories of consumers from power regulator Maharashtra Electricity Regulatory Commission (MERC).
According to Jitendra Janawade, a local Sena leader, the agitation was not just against the proposed tariff hike. Recently REL replaced old meters with the Chinese-made ones which has put additional burden on the consumers who have started receiving 30 per cent higher bills. “And once your bill increases, the company also asks for additional security deposit which is a double whammy for the common man,” he said.
Janawade, however, held the police responsible for the agitation turning violent, saying as the delegation of senior leaders was inside REL’s premises discussing the grievances of consumers, with senior company officials, police resorted to baton charge on the peaceful demonstrators. This angered the Shiv Sainiks and common people, who had joined the agitation, and some incident of stone pelting took place.
Sena leaders also raised the issue in the state Assembly and demanded immediate suspension of the police officials who ordered the baton charge.
Meanwhile, a senior REL official said “while we have proposed only an average 5 per cent hike, Brihanmumbai Electric Supply and Transport (BEST), which is controlled by Sena and distributes power in the island city, has asked for a tariff hike of 52 per cent”. “It is ironical that activists of the same party are holding agitation against us,” he said.
source:http://www.business-standard.com/india/news/shiv-sena-workers-protest-reliance-power-tariff-hike/360503/
Sunday, June 7, 2009
Telecom firm to pay for net goof
Finding Reliance Communication deficient in services, UT consumer forum directed it to pay Rs 10,000 as compensation for harassment
along with Rs 2,500 as litigation costs to Tejbir Kaur of Sector 46. The forum also added that Reliance was duty bound to adjust Rs 9,345 and Rs 330 received by it.
According to the complaint, Kaur had purchased internet connection for a year from Reliance for Rs 9,375, but after two months she allegedly found out that hers was an old connection because of which it terminated. She was then reportedly given a new number with the assurance that the amount already paid by her would be transferred into the new account. She, however, alleged that it was not done, rather she received legal notices for non-payment of bills. She took up the matter with concerned officials but when her requests fell on deaf ears, Kaur moved a complaint under Consumer Protection Act. Denying allegations, Reliance in its reply stated that Kaur did not make any payment besides that for the ‘get started kit’. It added that it did not have any policy of adjusting the amount of one connection against any other.
After going through documents placed before it, the forum, headed by Jagroop Singh Mahal, said that the telecommunication company did not produce any evidence to suggest that the receipt (of Rs 9,375) with Kaur was issued to some other person and not her, suggesting the one produced by her as fake. “An adverse inference should be drawn against the company for not producing relevant documents
as evidence,” the forum held.
source: http://timesofindia.indiatimes.com/Chandigarh/Telecom-firm-to-pay-for-net-goof/articleshow/4618435.cms
along with Rs 2,500 as litigation costs to Tejbir Kaur of Sector 46. The forum also added that Reliance was duty bound to adjust Rs 9,345 and Rs 330 received by it.
According to the complaint, Kaur had purchased internet connection for a year from Reliance for Rs 9,375, but after two months she allegedly found out that hers was an old connection because of which it terminated. She was then reportedly given a new number with the assurance that the amount already paid by her would be transferred into the new account. She, however, alleged that it was not done, rather she received legal notices for non-payment of bills. She took up the matter with concerned officials but when her requests fell on deaf ears, Kaur moved a complaint under Consumer Protection Act. Denying allegations, Reliance in its reply stated that Kaur did not make any payment besides that for the ‘get started kit’. It added that it did not have any policy of adjusting the amount of one connection against any other.
After going through documents placed before it, the forum, headed by Jagroop Singh Mahal, said that the telecommunication company did not produce any evidence to suggest that the receipt (of Rs 9,375) with Kaur was issued to some other person and not her, suggesting the one produced by her as fake. “An adverse inference should be drawn against the company for not producing relevant documents
as evidence,” the forum held.
source: http://timesofindia.indiatimes.com/Chandigarh/Telecom-firm-to-pay-for-net-goof/articleshow/4618435.cms
Wednesday, June 3, 2009
RCOM may show loss of Rs 2k cr on AS-11 norms
Reliance Communications would have reported a Rs 2,255-crore loss for the fiscal year that ended in March, had it accounted for foreign
exchange differences as per Accounting Standard 11. The telecom firm which opted to comply with Part I of Schedule VI of the Companies Act, reported a Rs 5,908-crore profit, according to a report prepared by the company’s auditors, BSR.
According to the review report which, as per norms, was sent to RCOM’s board and to exchanges, BSR said: “Had the company accounted for the relevant foreign exchange differences, in accordance with the said standard (AS-11), the profit for the quarter would be lower by Rs 809 crore and profit for the year would change to a loss of Rs 2,255 crore.”
BSR is the Indian affiliate of the global accounting firm KPMG. RCOM capitalised the forex differences on amounts of liabilities and borrowings related to acquisition of fixed assets acquired abroad, in accordance with the Companies Act.
When contacted, a RCOM spokesman said: “The statement of accounts are in full compliance with the applicable provisions of the Companies Act of 1956. The same has already been detailed in the notes to the accounts, while declaring the annual results over a month back, on April 30, 2009”.
This is a practice that is commonly adopted by most Indian companies. In its report, BSR also said: “Nothing has come to our attention that causes us to believe that the accompanying statement of unaudited financial results, prepared in accordance with accounting standards, has not disclosed the information required to be disclosed.” According to auditors, companies typically adopt the Schedule VI, under the Companies Act, when they acquire fixed assets.
Under AS-11, losses are accounted with the profit and loss account, instead of being capitalised, which implies accounting with the balance sheet.
RCOM said it is currently pursuing “aggressive capex plans which include significant expansion of nation-wide wireless network. The company has funded these initiatives primarily by long-term borrowings in foreign currency and foreign currency convertible bonds.”
RCOM also said that “in compliance with the Schedule VI of the Companies Act, 1956 and on the basis of legal advice received by the company, changes to the amount of liability and borrowings related to the acquisition of fixed assets consequent upon short-term fluctuations in foreign exchange rates upto March 30, 2009, are adjusted in the carrying cost of fixed assets.”
source:http://economictimes.indiatimes.com/News/News-By-Company/RCOM-may-show-loss-of-Rs-2k-cr-on-AS-11-norms/articleshow/4610784.cms
exchange differences as per Accounting Standard 11. The telecom firm which opted to comply with Part I of Schedule VI of the Companies Act, reported a Rs 5,908-crore profit, according to a report prepared by the company’s auditors, BSR.
According to the review report which, as per norms, was sent to RCOM’s board and to exchanges, BSR said: “Had the company accounted for the relevant foreign exchange differences, in accordance with the said standard (AS-11), the profit for the quarter would be lower by Rs 809 crore and profit for the year would change to a loss of Rs 2,255 crore.”
BSR is the Indian affiliate of the global accounting firm KPMG. RCOM capitalised the forex differences on amounts of liabilities and borrowings related to acquisition of fixed assets acquired abroad, in accordance with the Companies Act.
When contacted, a RCOM spokesman said: “The statement of accounts are in full compliance with the applicable provisions of the Companies Act of 1956. The same has already been detailed in the notes to the accounts, while declaring the annual results over a month back, on April 30, 2009”.
This is a practice that is commonly adopted by most Indian companies. In its report, BSR also said: “Nothing has come to our attention that causes us to believe that the accompanying statement of unaudited financial results, prepared in accordance with accounting standards, has not disclosed the information required to be disclosed.” According to auditors, companies typically adopt the Schedule VI, under the Companies Act, when they acquire fixed assets.
Under AS-11, losses are accounted with the profit and loss account, instead of being capitalised, which implies accounting with the balance sheet.
RCOM said it is currently pursuing “aggressive capex plans which include significant expansion of nation-wide wireless network. The company has funded these initiatives primarily by long-term borrowings in foreign currency and foreign currency convertible bonds.”
RCOM also said that “in compliance with the Schedule VI of the Companies Act, 1956 and on the basis of legal advice received by the company, changes to the amount of liability and borrowings related to the acquisition of fixed assets consequent upon short-term fluctuations in foreign exchange rates upto March 30, 2009, are adjusted in the carrying cost of fixed assets.”
source:http://economictimes.indiatimes.com/News/News-By-Company/RCOM-may-show-loss-of-Rs-2k-cr-on-AS-11-norms/articleshow/4610784.cms
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