Highlights of the un-audited financial results as compared to the previous year are:

— Exports increased by 12.6% to INR94,038 crore ($18.5 billion)

— PBDIT increased by 5.1% to INR25,428 crore ($5 billion)

— Cash Profit before exceptional items increased by 2.7% to INR21,566 crore ($4.3 billion)

— Net Profit before exceptional items increased by 2.3% to INR15,607 crore ($3.1 billion)

— Gross Refining Margin at $12.2 / bbl for the fiscal year 2008-09

— Return on Capital Employed (ROCE) was 20.7% for the fiscal year 2008-09

— Return on Equity (ROE) was 21.0% for the fiscal year 2008-09

— Net Debt to Equity is 0.24 as on March 31, 2009

Corporate highlights:

On March 2, 2009, the board of RIL and Reliance Petroleum Limited (RPL) unanimously approved RPL’s merger with RIL subject to necessary approvals. The exchange ratio recommended by both boards is one share of RIL for every 16 (sixteen) shares of RPL. RIL will issue 6.92 crore new shares, thereby increasing its equity capital to INR1,643 crore. The appointed date of merger of RPL with RIL is 1st April 2008.

— Following the approval of merger by boards of RIL and RPL –

Credit rating agencies – S&P, Moodys, Fitch and Crisil – have reaffirmed rating of RIL’s debt instruments

Merger of RPL with RIL was approved by the shareholders and creditors of both the companies

— RIL has agreed to purchase 22.50 crore equity shares of RPL, constituting 5% of RPL’s equity from Chevron India Holdings Pte Limited Singapore, a wholly owned subsidiary of Chevron Corporation (Chevron) in accordance with the provisions of Equity Investment agreement amongst Chevron, RPL and RIL.

— On October 3, 2008, RIL had allotted 12 crore equity shares of INR10/- each, upon exercise of the rights attached to warrants issued to the Promoter Group on 12th April 2007.

Commenting on the results, Mukesh D. Ambani, chairman and managing director, reliance industries limited said: This was a transformational year for Reliance. We commissioned our large refinery and substantially completed gas development projects. We have set new global benchmarks for project execution. Our operating performance with earnings growth is creditable in a year of extraordinary challenges of price volatility and demand reduction.

Financial performance review and analysis:

Increase in prices accounted for 6.8% growth in revenue while higher volumes accounted for 1.5%. During the year, exports were higher by 12.6% at INR94,038 crore ($18.5 billion).

Consumption of raw materials and purchase of traded goods increased by 11.4% from INR96,312 crore to INR107,304 crore ($21.2 billion) mainly on account of higher crude and naphtha prices during the first half of the year and higher trading of the goods.

Employee cost was INR2,358 crore ($465 million) for the year as against INR2,119 crore primarily on account of Voluntary Separation Scheme (VSS) announced for the employees of Patalganga unit during the quarter ended 31st December 2008. Over 425 employees accepted the VSS offered by the company. A sum of INR110 crore ($22 million) has been paid during the third quarter.

Other expenditure increased by 16% from INR9,839 crore to INR11,413 crore ($2.3 billion). Expenditures were higher due to exchange differences, power and labor costs partially offset by lower establishment expenses.

Operating Profit before other income and depreciation remained flat at INR23,395 crore ($4.6 billion) as against INR23,306 crore in the previous year. Net operating margin for the year was lower at 15.5% as compared to 16.7% in the previous year due to a softer margin environment in both petrochemicals and refining. Upstream margins however, were better due to enhanced realizations from both oil and gas.

Other income was at INR2,033 crore ($401 million) as against INR895 crore due to higher interest income on account of higher cash and cash equivalents and gain on sale of investments.

Depreciation was higher by 4.4% at INR5,059 crore ($997 million) against INR4,847 crore in the previous year primarily on account of higher amortization in oil and gas segment.

Interest cost was higher at INR1,692 crore ($334 million) as against INR1,077 crore primarily on account of increased borrowings during the year. Interest capitalized, during the year, was INR2,532 crore ($499 million) as against INR885 crore in the previous year.

Exceptional item represents provision of INR370 crore ($73 million), in the quarter ending March 31, 2009, towards estimated claims on account of subsidiaries.

Profit after tax, excluding exceptional item was INR15,607 crore ($3.1 billion), representing an increase of 2.3%. Profit after tax, including exceptional item, was INR15,279 crore ($3 billion) as against INR19,458 crore for the previous year.

Basic earning per share (EPS), excluding exceptional item, for the year was INR103.2 ($2.03) against INR105 for the previous year. Basic earning per share (EPS), including exceptional item, for the year was INR101 ($1.99).

The outstanding debt as on March 31, 2009 was INR53,457 crore ($10.5 billion) compared to INR36,480 crore as on 31st March 2008. Net gearing as on March 31, 2009 was 19.2% as compared to 22.3% on 31st March 2008.

RIL has cash and cash equivalents of nearly INR25,000 crore ($5 billion). These are in fixed deposits, certificate of deposits with banks and Government securities and bonds. RIL’s net debt was about equivalent to 1.1 times PBDIT for the year.

The capital expenditure towards projects including interest capitalization for the year was INR24,907 crore ($4.9 billion).

RIL has domestic credit ratings of AAA from CRISIL and FITCH. Moody’s and S&P have reaffirmed investment grade ratings for international debt of RIL, as Baa2 and BBB respectively.

Domestic operations

RIL share in Tapti block production was 1,260 MMSCM of natural gas and 81,475 tonnes of condensate, registering a growth of 25% and 17% respectively over the previous year.

RIL share in Panna-Mukta block production was 500 MMSCM of natural gas and 484,565 tonnes of crude oil, a decrease of 18% and 15% respectively as compared to the previous year. The decrease in production at Panna-Mukta was due to a shutdown in June’08 in the processing platform.

Oil production commenced from KG D6 block on 17th September 2008 with an initial production of 5,000 barrels per day. RIL share in KG D6 block oil production was 117,000 tonnes of crude oil for the period under review. Oil production was shutdown for repair from December 2008 to first week of March 2009. It is currently under planned shutdown for phase II connectivity and the production is expected to resume in the last week of April 2009.

On 2nd April 2009, gas production commenced from KG D6 block (D1 / D3 discoveries) in a record time of six and half years, as against world average of nine – 10 years for similar deepwater facilities. KG D6 is amongst the five largest deepwater gas projects globally.

Gas production is expected to transform India’s energy landscape and is expected to double the current level of indigenous gas production.

RIL has signed Gas sales purchase agreement (GSPA) with customers in fertilizer sector for supply from KG D6. The GSPA was signed with 12 customers in fertilizer sector for supply of about 15 MMSCMD natural gas.

RIL along with BP was awarded the deep water block KG-DWN-2005/2 offered under NELP VII. RIL has 70% participating interest; BP holds the remaining 30% participating interest and is the operator of the block.