The Hindu Business Line : Not signing Reliance accounts

While RIL Vice-Chairman Mr Anil Ambani abstained from signing the company's final accounts citing lack of crucial information, the Mukesh Ambani camp countered with its clarifications.

Mr Anil said the company had not provided ownership, management and financial details of Reliance Pharmaceuticals and Reliance Nutraceuticals, the companies that bought 23 per cent stake in Indian Petrochemicals Corporation Ltd.

According to a spokesperson of Mr Mukesh, the additional information was sought through a letter delivered at 1 a.m. this morning, "much beyond official working hours." The response will be provided in due course, he said.

Mr Anil also listed lack of details on dealings with Reliance Infocomm as another reason for not signing the final accounts.

Other reasons included lack of clarity on sale of plant and machinery worth Rs 2,000 crore and a Rs 1,500-crore increase in contingent liabilities.

The younger Ambani also said he had proposed that Reliance stop buying back its own shares as it was "apparently not serious" about it.

RIL has spent only 5 per cent of the Rs 3,000 crore approved for the buyback.

To this, Mr Mukesh's spokesman gave details of how RIL outperformed the Sensex by eight per cent since the announcement.

However, there was no response to points raised by Mr Anil about rewarding shareholders with higher dividends and a liberal bonus issue.

Mr Anil also objected to the appointments of Mr H.S. Kohli as executive director and Mr Ashok Misra as an independent director "without prior consultation, discussion or agreement with the Vice-Chairman and Managing Director, and other directors".

The appointments, according to Mr Mukesh's spokesperson, are in line with established processes followed by Reliance.

`Corporate governance norms followed'

MR Y.P. Trivedi, independent director on the RIL board and leading lawyer, today said the company has followed all corporate governance norms and that Mr Anil's refusal to sign financial accounts will not prevent the Reliance board from passing the accounts.

Mr Trivedi, who also heads RIL's corporate governance committee, spoke to reporters here after the board meeting.

When asked about the alleged breach of corporate governance norms as mentioned by Mr Anil, Mr Trivedi said the committee had "always sought his (Anil's) time but he was busy on some occasions and is always welcome to discuss the issues."

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