RIL restates accounts,profits down Rs 1,177 cr

Reliance Industries,Indias most valued company,said its profit for seven quarters ended December 31,2008,would have been lower by Rs 1,147 crore if it had followed the Accounting Standard.....

Reliance Industries,Indias most valued company,said its profit for seven quarters ended December 31,2008,would have been lower by Rs 1,147 crore if it had followed the Accounting Standard 11 (AS11) as prescribed by the guidelines on effects of changes in foreign exchange rates notified in the Companies Rules (accounting standards),2006.

The oil and gas majors profit would have been lower by Rs 39 crore for the three months ended December 2008,following the practice,and by Rs 1,177 crore for nine months ended December 2008,the company said in a statement to the Bombay Stock Exchange (BSE). This follows a limited review of accounts for the quarter ended December 2008.

The company said it has continued to adjust the foreign currency exchange differences on amounts borrowed for acquisition of fixed assets to the carrying cost of fixed assets in compliance with schedule VI of the Companies Act,1956,as per legal advice received,which is at variance to the treatment prescribed in AS11 on effects of changes in foreign exchange rates notified in the Companies Rules 2006.

RIL,the countrys largest private company by market capitalisation,had reported a net profit dip of 10 per cent to Rs 3,501 crore for Q3 of FY 2008-09 (excluding exceptional items),compared to Rs 3,882 crore in Q3 of the previous year. RIL had exceptional gains of Rs 4,733 crore for Q3 of FY 08 arising out of transactions concerning shares of Reliance Petroleum. Meanwhile,the companys stock gained 1.01 per cent to close at Rs 1,266 after hitting an intra-day high of Rs 1,285 on the BSE on Wednesday.