Reliance Industries Limited Annual Report 2009

FY2009 Annual Report · Reliance Industries Limited

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Annual Report 2008-2009

“Enhancing Lives.

Energising India.

The Reliance Way”

The life cycle of a human being
comprises birth, growth and regeneration before the inevitable.
While birth and rest are God’s gifts
Regeneration and renewal need human intervention.

To truly nurture life,
we need rapid growth based on bold and innovative thinking
Such growth comes from envisioning a grand future
And, then moving towards it with firm, steady and rapid steps.

Moving in such a direction has always been The Reliance Way –
a code of conduct, which aims at enriching the present
while embracing the challenges of the future.

Our Founder Chairman Shri Dhirubhai Ambani
saw it as his divine dharma and so he first conceived a grand vision for India
in which we were no longer limited in terms of scale or ability.

He then taught us how to work such that we could achieve his ambitious goals.

The results were swift and evident and their rewards were shared
with millions of shareholders who bought into his dreams.

It is a legacy taken forward by our Chairman, Shri Mukesh D. Ambani
His energy and missionary zeal has guided our push to becoming
one of the world’s largest energy majors.

Drilling in unchartered waters under hostile weather conditions,
Reliance has opened a new chapter in India’s energy security.
The first flow of crude oil and gas from Krishna-Godavari basin
is a major milestone for India in its march towards energy security.

In the process, we are creating unprecedented value for you our
stakeholders, an integral part of our circle of prosperity.

And that is how it will always be as we stay true to our vision:

Enhancing Lives and Energising India.

The Reliance Way.

Letter to Shareholders

Dear Fellow Shareowners,

This has been a truly transformational year at Reliance Industries
(RIL). The successful commissioning of the KG-D6 oil and gas
production fields and the safe start-up of the world-class,
complex refinery in the Special Economic Zone at Jamnagar
catapults RIL into the league of integrated energy companies
globally. RIL is now among the ten largest non-state owned
refining companies and one of the largest deepwater oil and gas
operators in the world.

Through these path-breaking initiatives, RIL is set to radically
change India’s energy landscape. Gas production from KG-D6
will double India’s indigenous production while the new refinery
will make India a major supplier of ‘green-fuels’ to the world.
The emergence of a reliable, eco-friendly energy source will
enable India to take giant strides towards ensuring its energy
security and fuelling growth in core sectors like fertilizer, power
and transportation. It will also help India conserve precious
foreign exchange reserves and reduce the subsidy burden for the
Government. This is our contribution towards energising India’s
growth and its sustainable development in the future.

Over the years, our initiatives have enabled the enrichment of
millions of lives in India. RIL’s hydrocarbon initiatives have
further extended our basic philosophy of ‘share and prosper’.
The vastly increased availability of natural gas will help our
farmers access reliable power and cheaper fertilisers. Assured
availability of gas will ensure sustainable livelihood for millions
of workers engaged in sectors that depend on natural gas as a
feedstock. Through enhanced hydrocarbon availability, we will
enable easy availability of cooking gas for households,
electricity for the common man and meet growing transportation
needs in an eco-friendly manner.

We had committed to reward our shareholders on the successful
completion of our two world class projects. The Board of
Directors of RIL have proposed the issue of bonus shares in the
ratio of one equity share for every one equity share held in the
Company. The Board also declared dividend of Rs 13 per share
for the financial year 2008-09. Both the bonus shares and
dividend will also accrue to the shareholders of erstwhile
Reliance Petroleum Limited which has been amalgamated
recently with the Company.

The year 2008-09 was undoubtedly one of the most challenging
periods in recent history. The credit crisis, heightened volatility

in commodity prices and an economic
meltdown led to unprecedented turbulence
that impacted individuals and businesses alike
the world over. Emerging economies of Asia
led by India and China provided the much
needed support by cushioning the impact of
global slowdown and are seen to be best
positioned for early recovery.

Your Company responded to these challenges
in a timely manner and delivered record
revenues and net profits. We focused on
improving efficiency, leveraging on the
quality of our assets and remaining nimble.
This reflects the strength of our business
model, robustness of our systems and
processes, farsighted planning, meticulous
execution and above all, our indomitable will
to succeed.

While staying focused on our long-term
strategy, we have remained committed to
protecting our employees, ensuring their
safety, supporting local communities and
safeguarding the environment. As a
responsible corporate citizen, RIL has chosen
to refrain from reacting to the propaganda in
the national media with regards to the KG-D6
gas court case. We would like to assure all our
stakeholders that our objective is to act in a
manner that is fully in consonance with our
respect for the law and is protective of the
national interests.

Looking forward, we see exciting
opportunities for growth in the energy sector.
The global economy is showing signs of
revival and the response to stimulus from
leading nations has thus far been encouraging.
Growth is likely to be led by emerging
economies of Asia, like India and China. The
world is expected to need about 50% more
energy in 2030 than it does today. The
ongoing evolution in environment concerns
will necessitate thrust on ‘green fuels’, which

Through these path-breaking

initiatives, RIL is set to radically

change India’s energy landscape.

Gas production from KG-D6 will

double India’s indigenous

production while the new refinery

will make India a major supplier of

‘green-fuels’ to the world.

will further enhance the strength of modern
energy companies like RIL.

At RIL, we have always invested aggressively
into businesses of the future. Our recent
investments in the oil and gas and refining
businesses have created a strong growth
platform. These can now be leveraged to take
the giant leap forward. In preparation for the
next phase of growth, we are focussed on
strengthening internal processes and controls,
streamlining operations, developing strong
leadership and a performance culture to
ensure sustainable, superior growth. RIL is on
its way to becoming a competitive, integrated,
global energy company. Conservative
financial management and strong operating
expertise will ensure that we maximize value
for all our stakeholders in a consistent manner.

I take this opportunity to warmly welcome
RPL shareholders into the RIL family, which
now comprises around 3.5 million
shareowners and is among the largest family
of shareholders anywhere in the world.

I am grateful to the Board of Directors for
their unwavering support and guidance. I
would also like to express my gratitude to all
our stakeholders, who have reposed their trust
in us and given us their constant support.

With best wishes,
Sincerely,

Mukesh D. Ambani
Chairman & Managing Director

October 7, 2009

HIGHLIGHTS

Turnover

PBDIT

Cash Profit

Net Profit

Rs 1,46,328 crore ($ 28,850 million)

: Rs 25,743 crore ($ 5,076 million)

: Rs 22,365 crore ($ 4,410 million)

: Rs 15,309 crore ($ 3,018 million)

Net Profit (excl. exceptional item)

: Rs 15,637 crore ($ 3,083 million)

Net Profit 5 years CAGR

: 25 %

Total Assets

: Rs. 2,45,706 crore ($ 48,444 million)

Significant contribution to India’s economic growth

10.4 % of India’s total exports

2.9 % of the Government of India’s indirect tax exports

6.1 % of the total market capitalisation in India

Weightage of 13.6 % in the BSE Sensex

Weightage of 11.1 % in the S&P CNX Nifty Index

Growing importance across the globe

Largest refining capacity at any single location

Largest producer of Polyester Fibre and Yarn

4th largest producer of Polypropylene (PP) and Paraxylene (PX)
th6 Largest producer of Purified Terephthalic Acid (PTA)
th7 largest producer of Mono Ethylene Glycol (MEG)

THE BOARD OF DIRECTORS OF RELIANCE INDUSTRIES LIMITED
Standing from left to right: Shri P.M.S. Prasad, Dr. Raghunath Anant Mashelkar, Prof. Dipak C. Jain, Shri Nikhil R. Meswani, Dr. Dharam Vir Kapur,
Shri Ramniklal H. Ambani, Shri Mansingh L. Bhakta, Shri Mukesh D. Ambani, Shri Yogendra P. Trivedi, Shri Mahesh P. Modi, Shri Hital R. Meswani,
Shri Hardev Singh Kohli, Prof. Ashok Misra and Shri R. Ravimohan.

Reliance Industries Limited

Contents

Company Information

Board of Directors
Chairman & Managing Director
Mukesh D. Ambani

Executive Directors

Nikhil R. Meswani
Hital R. Meswani
Hardev Singh Kohli
PMS Prasad1
R Ravimohan2

Non Executive Directors
Ramniklal H. Ambani
Mansingh L. Bhakta
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Mahesh P. Modi
S. Venkitaramanan3
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar

Company Secretary

Vinod M. Ambani

Solicitors & Advocates Kanga & Co.

Chaturvedi & Shah,
Deloitte, Haskins & Sells
Rajendra & Co.

Auditors

1w.e.f. August 21, 2009
2w.e.f. September 1, 2009
3up to July 24, 2009
4up to August 21, 2009
Bankers
ABN Amro
Allahabad Bank
Andhra Bank
Bank of America
Bank of Baroda
Bank of India
Bank of Maharashtra
Calyon Bank

Canara Bank
Central Bank of India
Citibank N.A
Corporation Bank
Deutsche Bank
The Hong Kong and
Shanghai Banking
Corporation Limited

HDFC Bank Limited
ICICI Bank Limited
IDBI Bank Limited
Indian Bank
Indian Overseas Bank
Oriental Bank of
Commerce
Punjab National Bank

Standard Chartered Bank
State Bank of Hyderabad
State Bank of India
State Bank of Patiala
Syndicate Bank
UCO Bank
Union Bank of India
Vijaya Bank

Major Manufacturing Divisions

Dahej
P. O. Dahej,
Bharuch - 392 130
Gujarat, India

Hazira
Village Mora, Bhatha
P.O.Surat-Hazira Road
Surat 394 510,
Gujarat, India
Registered Office

Jamnagar
Village Meghpar / Padana,
Taluka Lalpur
Jamnagar 361 280
Gujarat, India

Jamnagar SEZ
Village Meghpar / Padana,
Taluka Lalpur
Jamnagar 361 280
Gujarat, India

3rd Floor, Maker Chambers IV
222 Nariman Point, Mumbai 400 021, India
Tel: +91 22 2278 5000 Fax: +91 22 2278 5111
e-mail: investor_relations@ril.com
Website : www.ril.com

Nagothane
P. O. Petrochemicals
Township,Nagothane
Raigad - 402 125,
Maharashtra, India
Naroda
103/106, Naroda Industrial
Estate, Naroda,
Ahmedabad 382 320
Gujarat, India

Patalganga
B-4, Industrial Area,
Patalganga, Near Panvel,
Dist. Raigad 410 207
Maharashtra, India
Vadodara
P. O. Petrochemicals
Vadodara - 391 346,
Gujarat, India

Registrars & Transfer Agents

Karvy Computershare Private Limited, 46, Avenue 4,
Street No.1, Banjara Hills, Hyderabad 500 034, India
Tel: +91 40 2332 0666, 2332 0711, 2332 3031, 2332 3037
Toll Free No. 1800 425 8998 Fax: +91 40 2332 3058
e-mail: rilinvestor@karvy.com Website : www.karvy.com

35th Annual General Meeting on Tuesday, November 17, 2009 at 11.00 a.m.
at Birla Matushri Sabhagar, 19, Marine Lines, Mumbai 400 020.

Enhancing Lives. Energising India. The Reliance Way

10 Years Trend

Turnover (Rs. crore)

Profit After Tax (Rs. crore)
(Excluding Exceptional Item)

Net Worth (Rs. crore)

Market Capitalisation (Rs. crore)

350,000

300,000
250,000

200,000

150,000

100,000
50,000

329,179

198,905

239,721

33,346

41,989

41,191

38,603

110,958

75,132

76,079

0
0
-
9
9
9
1

1
0
-
0
0
0
2

2
0
-
1
0
0
2

3
0
-
2
0
0
2

4
0
-
3
0
0
2

5
0
-
4
0
0
2

6
0
-
5
0
0
2

7
0
-
6
0
0
2

8
0
-
7
0
0
2

9
0
-
8
0
0
2

Earnings Per Share (Rs.)
(Excluding Exceptional Item)

Book Value Per Share (Rs.)

900
800
700
600
500
400
300
200
100
0

560.3

798.7

129.9

199.2

140.1

217.2

357.4

246.7

440.0

289.9

0
0
-
9
9
9
1

1
0
-
0
0
0
2

2
0
-
1
0
0
2

3
0
-
2
0
0
2

4
0
-
3
0
0
2

5
0
-
4
0
0
2

6
0
-
5
0
0
2

7
0
-
6
0
0
2

8
0
-
7
0
0
2

9
0
-
8
0
0
2

Reliance Industries Limited

Financial Highlights

2008-09

07-08

06-07

05-06

04-05

03-04

02-03

01-02

00-01

99-00

Rs. in crore

$ Mn

28,850 146,328 139,269 118,354 89,124

73,164

56,247 50,096

45,404 23,024

15,847

29,256 148,388 144,898 118,832 89,807

74,614

57,385 51,097

46,186 23,407

16,534

5,003

25,374

28,935

20,525 14,982

14,261

10,983

9,366

8,658

5,562

4,746

Turnover

Total Income

Earnings Before Depreciation,
Interest and Tax (EBDIT)

Depreciation

1,024

5,195

4,847

4,815

3,401

3,724

3,247

2,837

2,816

1,565

1,278

Exceptional Items

(73)

(370)

4,733

412

Profit After Tax

3,018

15,309

19,458

11,943

9,069

7,572

5,160

4,104

3,243

2,646

2,403

Equity Dividend %

Dividend Payout

Equity Share Capital

Equity Share Suspense Account

Equity Share Warrants

374

310

1 4

130

110

100

7 5

52.5

5 0

47.5

42.5

1,897

1,631

1,440

1,393

1,045

733

698

663

448

4 0

385

1,574

1,454

1,393

1,396

1,054

1,053

6 9

1,682

6 0

342

Reserves and Surplus

24,592 124,730

78,313

62,514 48,411

39,010

33,057 28,931

26,416 13,712

12,636

Net Worth

24,916 126,373

81,449

63,967 49,804

40,403

34,453 30,327

27,812 14,765

13,983

Gross Fixed Assets

43,114 218,673 127,235 107,061 91,928

59,955

56,860 52,547

48,261 25,868

24,662

Net Fixed Assets

33,396 169,387

84,889

71,189 62,675

35,082

35,146 34,086

33,184 14,027

15,448

Total Assets

48,444 245,706 149,792 117,353 93,095

80,586

71,157 63,737

56,485 29,875

29,369

Market Capitalisation

47,264 239,721 329,179 198,905 110,958

76,079

75,132 38,603

41,989 41,191

33,346

Number of Employees

24,679

25,487

24,696 12,540

12,113

11,358 12,915

12,864 15,083

15,912

Contribution to National
Exchequer

Key Indicators

Earnings Per Share - Rs.
[Excluding Exceptional item]

2,282

11,574

13,696

15,344 15,950

13,972

12,903 13,210

10,470

4,277

3,719

2 0 0 8 - 0 9

07-08

06-07

05-06

04-05

03-04

02-03

01-02

00-01

99-00

1 . 9

98.8

105.3

82.2

65.1

54.2

36.8

29.3

20.6

25.1

22.4

Turnover Per Share - Rs.

Book Value Per Share - Rs.

18.2

15.8

924.9

958.1

814.2

639.6

525.0

402.8

358.8

325.2

218.5

150.4

798.7

560.3

440.0

357.4

289.9

246.7

217.2

199.2

140.1

129.9

Debt : Equity Ratio

0.63:1

0.45:1

0.44:1

0.46:1

0.56:1

0.60:1

0.64:1 0.72:1

0.82:1

EBDIT / Gross Turnover %

Net Profit Margin %

RONW % *

ROCE % *

17.3

10.5

21.6

20.3

17.3

10.5

21.6

20.3

20.8

14.0

28.8

20.3

17.3

10.1

23.5

20.5

16.8

10.2

22.7

20.5

19.5

10.3

21.9

21.3

19.5

18.7

19.1

9 . 2

17.0

14.0

8 . 2

14.8

13.2

7 . 1

16.1

15.3

26.8

12.8

20.0

20.4

30.6

15.5

21.8

20.0

In this Annual Report $ denotes US$
1US$ = Rs. 50.72 (Exchange rate as on 31.03.2009)
* Adjusted for CWIP and revaluation

1 0

Enhancing Lives. Energising India. The Reliance Way

Notice

Notice is hereby given that the Thirty-fifth Annual
General Meeting of the Members of Reliance Industries
Limited will be held on Tuesday, November 17, 2009 at
11.00 a.m., at Birla Matushri Sabhagar, 19, New Marine
Lines, Mumbai 400 020, to transact the following
businesses :

Ordinary Business:

1. To consider and adopt the audited Balance Sheet as
at March 31, 2009, the Profit and Loss Account for the
year ended on that date and the Reports of the Board
of Directors and Auditors thereon.

2. To appoint Directors in place of those retiring by

rotation.

3. To appoint Auditors and to fix their remuneration and
in this regard to consider and if thought fit, to pass,
with or without modification(s), the following
resolution as an Ordinary Resolution:

“RESOLVED THAT M/s. Chaturvedi & Shah,
Chartered Accountants, M/s. Deloitte Haskins and
Sells, Chartered Accountants, and M/s. Rajendra &
Co., Chartered Accountants, be and are hereby
appointed as Auditors of the Company, to hold office
from the conclusion of this Annual General Meeting
until the conclusion of the next Annual General
Meeting of the Company on such remuneration as
shall be fixed by the Board of Directors.”

Special Business :

4. To consider and, if thought fit, to pass, with or without
modification(s), the following Resolution as an
Ordinary Resolution:

"RESOLVED THAT pursuant to applicable provisions
of the Companies Act, 1956, Article 197 of the Articles
of Association of the Company and in accordance with
the Securities & Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations,
2009 ("the Regulations") and subject to such other
necessary approvals, permissions and sanctions, as
may be required and subject to such terms and
modifications as may be specified while according
such approvals, the Board of Directors of the
Company (hereinafter referred to as "the Board" which
term shall be deemed to include any Committee which
the Board may constitute to exercise its powers,
including powers conferred by this resolution), be
and is hereby authorized to capitalize a sum not
exceeding Rs. 1669,73,75,840/- out of the Company's
Capital Redemption Reserve Account / Securities

Premium Account / General Reserve Account or such
other accounts as are permissible to be utilized for the
purpose, as per the audited accounts of the Company
for the financial year ended March 31, 2009 and that
the said amount be transferred to the Share Capital
Account and be applied for issue and allotment of
equity shares not exceeding 166,97,37,584 equity
shares of Rs.10 each as bonus shares credited as fully
paid up, to the eligible members of the Company
holding equity shares of Rs.10 each whose names
appear on the Company's Register of Members on
such date ("Record Date") as the Board may
determine, in the proportion of one new fully paid
equity share of Rs.10 for every one equity share of
Rs.10 held as on the Record Date and that the new
bonus shares so issued and allotted shall be treated
for all purposes as an increase of the nominal amount
of the equity capital of the Company held by each
such member and not as income.

RESOLVED FURTHER THAT pursuant to the
Securities and Exchange Board of India (Employee
Stock Options Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999 and consequent to the issue
of bonus shares, the Board be and is hereby
authorized to make fair and reasonable adjustment in
the price and number of shares to be issued against
stock options, whether granted or to be granted, under
the Employee Stock Option Scheme of the Company.

RESOLVED FURTHER THAT:

(a)

(b)

the new equity shares of Rs.10 each to be issued
and allotted as bonus shares shall be subject to
the provisions of the Memorandum of
Association and Articles of Association of the
Company and shall rank pari passu in all respects
with and carry the same rights as the existing fully
paid up equity shares of the Company;

the share certificates for bonus shares be
delivered to the shareholders who hold the
existing equity shares in physical form and the
respective beneficiary accounts be credited with
the bonus shares, for such shareholders who
hold the existing equity shares or opt to receive
the bonus shares, in dematerialized form, within
the prescribed period.

RESOLVED FURTHER THAT the Board be and is
hereby authorized to take necessary steps for listing
of the bonus shares so allotted on the Stock
Exchanges where the securities of the Company are

Reliance Industries Limited

1 1

listed as per the provisions of the Listing Agreements
with the Stock Exchanges concerned, the Regulations
and other applicable laws and regulations.

RESOLVED FURTHER that for the purpose of giving
effect to this resolution, the Board be and is hereby
authorised to do all such acts, deeds, matters and
things as may, in its absolute discretion, deem
necessary, expedient, usual or proper and to settle any
questions, difficulties or doubts that may arise in this
regard at any stage including at the time of listing of
the bonus shares without requiring the Board to
secure any further consent or approval of the
Members of the Company to the end and intent that
they shall be deemed to have given their approval
thereto and for matters connected herewith or
incidental hereto expressly by the authority of this
resolution."

5. To re-appoint Shri Hital R. Meswani as a Wholetime
Director designated as Executive Director and in this
regard to consider and if thought fit, to pass, with or
without modification(s), the following resolution as an
Ordinary Resolution:

“RESOLVED THAT in accordance with the provisions
of Sections 198, 269, 309 and 317 read with Schedule
XIII and all other applicable provisions, if any, of the
Companies Act, 1956 or any statutory modification(s)
or re-enactment thereof, approval of the Company be
and is hereby accorded to the re-appointment of Shri
Hital R. Meswani as a Wholetime Director designated
as Executive Director of the Company, for a period of
5 (five) years with effect from August 4, 2010, on the
terms and conditions including remuneration as set out
in the Explanatory Statement annexed to the Notice
convening this Meeting, with liberty to the Board of
Directors (hereinafter referred to as “the Board” which
term shall be deemed to include any Committee of the
Board constituted to exercise its powers, including the
powers conferred by this Resolution) to alter and vary
the terms and conditions of appointment and / or
remuneration, subject to the same not exceeding the
limits specified under Schedule XIII to the Companies
Act, 1956 or any statutory modification(s) or re-
enactment thereof.

RESOLVED FURTHER THAT the Board be and is
hereby authorised to do all acts and take all such steps
as may be necessary, proper or expedient to give effect
to this Resolution.”

6. To appoint Shri PMS Prasad as a Director liable to
retire by rotation and also a Wholetime Director
designated as Executive Director and in this regard to
consider and if thought fit, to pass, with or without
modification(s), the following resolution as an
Ordinary Resolution:

“RESOLVED THAT in accordance with the provisions
of Section 257 and all other applicable provisions, if
any, of the Companies Act, 1956 or any statutory
modification(s) or re-enactment thereof, Shri PMS
Prasad, who was appointed as an Additional Director
pursuant to the provisions of Section 260 of the
Companies Act, 1956 and Article 135 of the Articles of
Association of the Company, be and is hereby
appointed as a Director of the Company liable to retire
by rotation.

RESOLVED FURTHER THAT in accordance with the
provisions of Sections 198, 269 and 309 read with
Schedule XIII and all other applicable provisions, if
any, of the Companies Act, 1956 or any statutory
modification(s) or re-enactment thereof, approval of
the Company be and is hereby accorded to the
appointment of Shri PMS Prasad as a Wholetime
Director designated as Executive Director of the
Company, for a period of 5 (five) years with effect from
August 21, 2009 on the terms and conditions including
remuneration as set out in the Explanatory Statement
annexed to the Notice convening this Meeting, with
liberty to the Board of Directors (hereinafter referred
to as “the Board” which term shall be deemed to
include any Committee of the Board constituted to
exercise its powers, including the powers conferred by
this Resolution) to alter and vary the terms and
conditions of appointment and / or remuneration,
subject to the same not exceeding the limits specified
under Schedule XIII to the Companies Act, 1956 or
any statutory modification(s) or re-enactment thereof.

RESOLVED FURTHER THAT the Board be and is
hereby authorised to do all acts and take all such steps
as may be necessary, proper or expedient to give effect
to this Resolution.”

7. To appoint Shri R Ravimohan as a Director liable to
retire by rotation and also a Wholetime Director
designated as Executive Director and in this regard to
consider and if thought fit, to pass, with or without
modification(s), the following resolution as an

1 2

Enhancing Lives. Energising India. The Reliance Way

Ordinary Resolution:

Notes :

“RESOLVED THAT in accordance with the provisions
of Section 257 and all other applicable provisions, if
any, of the Companies Act, 1956 or any statutory
modification(s) or re-enactment thereof, Shri R
Ravimohan, who was appointed as an Additional
Director pursuant to the provisions of Section 260 of
the Companies Act, 1956 and Article 135 of the
Articles of Association of the Company, be and is
hereby appointed as a Director of the Company liable
to retire by rotation.

RESOLVED FURTHER THAT in accordance with the
provisions of Sections 198, 269 and 309 read with
Schedule XIII and all other applicable provisions, if
any, of the Companies Act, 1956 or any statutory
modification(s) or re-enactment thereof, approval of
the Company be and is hereby accorded to the
appointment of Shri R Ravimohan as a Wholetime
Director designated as Executive Director of the
Company, for a period of 5 (five) years with effect from
September 1, 2009 on the terms and conditions
including remuneration as set out in the Explanatory
Statement annexed to the Notice convening this
Meeting, with liberty to the Board of Directors
(hereinafter referred to as “the Board” which term shall
be deemed to include any Committee of the Board
constituted to exercise its powers, including the
powers conferred by this Resolution) to alter and vary
the terms and conditions of appointment and / or
remuneration, subject to the same not exceeding the
limits specified under Schedule XIII to the Companies
Act, 1956 or any statutory modification(s) or re-
enactment thereof.

RESOLVED FURTHER THAT the Board be and is
hereby authorised to do all acts and take all such
steps as may be necessary, proper or expedient to give
effect to this Resolution.”

By Order of the Board of Directors

Vinod M. Ambani
President and Company Secretary
October 7, 2009
Registered Office:
3rd Floor, Maker Chambers IV,
222 Nariman Point,
Mumbai 400 021, India
e-mail : investor_relations@ril.com

1. A member entitled to attend and vote at the Annual
General Meeting (the “Meeting”) is entitled to
appoint a proxy to attend and vote on a poll instead
of himself and the proxy need not be a member of
the Company. The instrument appointing the proxy
should, however, be deposited at the Registered
Office of the Company not less than forty-eight
hours before the commencement of the Meeting.

2. Corporate members intending to send their
authorised representatives to attend the Meeting are
requested to send to the Company a certified copy
of the Board Resolution authorising their
representative to attend and vote on their behalf at
the Meeting.

In terms of Article 155 of the Articles of Association
of the Company, read with Section 256 of the
Companies Act, 1956, Shri Hardev Singh Kohli, Shri
Yogendra P. Trivedi, Prof. Dipak C. Jain and Shri
Mansingh L. Bhakta, Directors, retire by rotation at
the ensuing Annual General Meeting and being
eligible, offer themselves for re-appointment. The
Board of Directors of the Company commends their
respective re-appointments.

4. Brief resume of all Directors including those
proposed to be appointed, nature of their expertise
in specific functional areas, names of companies in
which they hold directorships and memberships/
chairmanships of Board Committees, shareholding
and relationships between directors inter-se as
stipulated under Clause 49 of the Listing Agreement
with the Stock Exchanges in India, are provided in
the Report on Corporate Governance forming part of
the Annual Report.

5. An Explanatory Statement pursuant to Section 173(2)
of the Companies Act, 1956, relating to the Special
Business to be transacted at the Meeting is annexed
hereto.

6. Members are requested to bring their Attendance Slip
along with their copy of Annual Report to the
Meeting.

In case of joint holders attending the Meeting, only
such joint holder who is higher in the order of names
will be entitled to vote.

8. Relevant documents referred to in the accompanying

Reliance Industries Limited

1 3

Notice are open for inspection by the members at
the Registered Office of the Company on all working
days, except Saturdays, between 11.00 a.m. and 1.00
p.m. up to the date of the Meeting.

9. The Register of Members and Share Transfer Books
of the Company shall remain closed on Wednesday,
October 21, 2009 for determining the shareholders
entitlement for dividend declared by the Board of
Directors.

10. Pursuant to the provisions of Section 205A(5) and
205C of the Companies Act, 1956, the Company has
transferred the unpaid or unclaimed dividends for the
financial years 1995-96, 1996-97, 1997-98, 1998-99,
1999-2000, 2000-01 and 2001-02 to the Investor
Education and Protection Fund (the IEPF) established
by the Central Government.

11. Members who hold shares in physical form in
multiple folios in identical names or joint holding in
the same order of names are requested to send the
share certificates to Karvy, for consolidation into a
single folio.

12. Non-Resident Indian Members are requested to

inform Karvy, immediately of :

a) Change in their Residential status on return to

India for permanent settlement.

b) Particulars of their Bank Account maintained in
India with complete name, branch, account type,
account number and address of the Bank with
Pin Code Number, if not furnished earlier.

13. Members are advised to refer to the Shareholders’

Referencer provided in the Annual Report.

14. Members are requested to fill in and send the
Feedback Form provided in the Annual Report.

EXPLANATORY STATEMENT PURSUANT TO
SECTION 173(2) OF THE COMPANIES ACT, 1956

The following Explanatory Statement sets out all material
facts relating to the Special Business mentioned in the
accompanying Notice:

Item No. 4

Members are aware that the Company has successfully
commissioned two of its largest global scale projects in
the energy sector viz, the Refinery and the KG-D6
projects. In keeping with the Company's tradition of
rewarding shareholders on a sustained basis at the end

of a value creation cycle, the Board of Directors of the
Company ("the Board") at its meeting held on October
7, 2009 has recommended issue of bonus shares in the
ratio of 1:1 i.e. one new fully paid up equity share of Rs.
10/- each for every one fully paid up equity share of Rs.
10/- each, to the eligible members of the Company as on
the Record Date to be fixed by the Board for this purpose.

The bonus shares shall be issued pursuant to the
applicable provisions of the Companies Act, 1956, Article
197 of the Articles of Association of the Company, the
Securities & Exchange Board of India (Issue of Capital
and Disclosure Requirements) Regulations, 2009 and
subject to such other approvals, if any required, after
capitalizing a sum not exceeding Rs. 1669,73,75,840/- from
the Company's Capital Redemption Reserve Account /
Securities Premium Account /General Reserve Account /
or such other accounts as are permissible to be utilized
for the purpose.

The Company has granted Stock Options to the
employees under an Employees Stock Option Scheme
('the Scheme'). Consequent to the issue of bonus shares
and in terms of the Securities & Exchange Board of India
(Employee Stock Option Scheme and Employee Stock
Purchase Scheme) Guidelines, 1999, and in terms of the
Scheme, fair and reasonable adjustment in price and
number of shares to be issued against Stock Options
granted or to be granted by the Company would be
required to be made so that the total value of Stock
Options remains the same after issue of bonus shares.

The amount to be capitalized under this item includes the
amount necessary for issue of bonus shares upon
exercise of Stock Options, vested but not exercised and
unvested, as on the date of this Notice, in accordance
with the Scheme and shall stand reduced to the extent
such Options are not exercised.

The bonus shares so allotted shall rank pari passu in all
respects and carry the same rights as the existing fully
paid up equity shares of the Company.

The Directors of the Company may be deemed to be
concerned or interested in the issue of the bonus shares
to the extent of their respective shareholdings / Stock
Options in the Company.

The Board commends the resolution as set out at Item
No. 4 of the Notice for your approval.

1 4

Enhancing Lives. Energising India. The Reliance Way

Item Nos. 5, 6 and 7

(a) Salary and Perquisites & Allowances per annum

The Board of Directors of the Company (the ‘Board’), at
its meeting held on August 21, 2009 has, subject to the
approval of Members, re-appointed Shri Hital R. Meswani
as Wholetime Director designated as Executive Director,
for a further period of 5 years from the expiry of his
present term which will expire on August 3, 2010, on the
remuneration determined by the Remuneration Committee
of the Board and approved by the Board.

The Board at its meeting held on August 21, 2009
appointed Shri PMS Prasad and Shri R Ravimohan as
additional directors pursuant to the provisions of Section
260 of the Companies Act, 1956 (the ‘Act’) read with
Article 135 of the Articles of Association of the Company.

In terms of the provisions of Section 260 of the Act,
Shri PMS Prasad and Shri R Ravimohan would hold office
up to the date of the ensuing Annual General Meeting.

The Company has received notices in writing from
members alongwith deposit of Rs. 500/- each for
proposing the respective candidature of Shri PMS Prasad
and Shri R Ravimohan for the office of Director of the
Company under the provisions of Section 257 of the Act.

Shri PMS Prasad and Shri R Ravimohan are not
disqualified from being appointed as Director in terms of
Section 274(1)(g) of the Act. The Company has received
the requisite Form ‘DD-A’ from each of Shri PMS Prasad
and Shri R Ravimohan, in terms of the Companies
(Disqualification of Directors under Section 274(1)(g) of
the Companies Act, 1956) Rules, 2003, confirming their
eligibility for such appointment.

Further, the Board appointed, subject to the approval of
Members, Shri PMS Prasad and Shri R Ravimohan as
Wholetime Directors, designated as Executive Directors
of the Company, for a period of five years with effect from
August 21, 2009 and September 1, 2009, respectively.

It is proposed to seek Members’ approval for the re-
appointment of and remuneration payable to Shri Hital
R. Meswani and appointment of and remuneration
payable to Shri PMS Prasad and Shri R Ravimohan, as
Wholetime Directors, designated as Executive Directors,
in terms of the applicable provisions of the Act.

Broad particulars of the terms of appointment / re-
appointment of and remuneration payable to Shri Hital
R. Meswani, Shri PMS Prasad and Shri R Ravimohan,
are as under:

(Rs in Crores):

Name

Shri Hital R. Meswani

Shri PMS Prasad

Shri R Ravimohan

Salary

1.04

0.86

Perquisites &
Allowances
1.45

1.37

The perquisites and allowances, as aforesaid, shall
include accommodation (furnished or otherwise) or
house rent allowance in lieu thereof; house maintenance
allowance together with reimbursement of expenses and
/ or allowances for utilisation of gas, electricity, water,
furnishing and repairs; medical reimbursement; leave
travel concession for self and family including
dependents; medical insurance and such other
perquisites and / or allowances. The said perquisites and
allowances shall be evaluated, wherever applicable, as per
the provisions of Income-tax Act, 1961 or any rules
thereunder or any statutory modification(s) or re-
enactment thereof; in the absence of any such Rules,
perquisites and allowances shall be evaluated at actual
cost. The Company’s contribution to Provident Fund,
Superannuation or Annuity Fund, to the extent these
singly or together are not taxable under the Income-tax
law, and gratuity payable and encashment of leave, as
per the rules of the Company and to the extent not taxable
under the Income-tax law shall not be included for the
purpose of computation of the overall ceiling of
remuneration. Remuneration by way of incentive /bonus
payable to Shri PMS Prasad and Shri R Ravimohan, as
may be determined by the Board and / or the
Remuneration Committee of the Board, is not to be
included for the purpose of computation of the aforesaid
ceiling of remuneration provided that such payment shall
be within the overall ceiling of remuneration permissible
under the Act. It is clarified that Employee Stock Options
granted / to be granted to Shri H R Meswani, Shri PMS
Prasad and Shri R Ravimohan from time to time, are not
to be included for the purpose of computation of the
overall ceiling of remuneration.
(b) Commission:
In addition to the salary, perquisites and allowances as
set out above, Shri Hital R. Meswani shall be entitled to
receive commission on net profits. The commission
payable to him as also to Shri Mukesh D. Ambani,
Chairman & Managing Director and Shri Nikhil R.
Meswani, another Wholetime Director of the Company

Reliance Industries Limited

1 5

will be determined by the Board and/or the Remuneration
Committee of the Board for each financial year. The
overall remuneration including commission to all three of
them shall not exceed 0.40% of the net profits of the
Company as computed in the manner referred to under
Section 198(1) of the Act, or any statutory modification(s)
or re-enactment thereof. No commission is proposed to
be paid to Shri PMS Prasad and Shri R Ravimohan.
(c) Reimbursement of Expenses:
Reimbursement of expenses incurred for travelling,
boarding and lodging including for their spouse and
attendant(s) during business trips; provision of car for
use on the Company’s business; telephone expenses at
residence and club membership shall be reimbursed and
not considered as perquisites.
(d) General:
(i) The office of Wholetime Director may be terminated
by the Company or the concerned Director by giving
the other 3 (three) months’ prior notice in writing.
(ii) The employment of Wholetime Director may be
terminated by the Company without notice or
payment in lieu of notice:
(cid:2) if the Director is found guilty of any gross
negligence, default or misconduct in connection
with or affecting the business of the Company or
any subsidiary or associate company to which he
is required to render services; or

(cid:2) in the event of any serious repeated or continuing
breach or non-observance by the Director of any
of the stipulations contained in the terms of
employment with the Company; or

(cid:2) in the event the Board expresses its loss of

confidence in the Director.

(iii) Upon termination by whatever means of the

Wholetime Director’s employment:
(cid:2) The Director shall immediately tender his
resignation from the office as Director of the
Company and from such other offices held by him
in the Company, in any subsidiary and associate
company and other entities without claim for
compensation for loss of office,

(cid:2) The Director shall not without the consent of the
Company at any time thereafter represent himself
as connected with the Company or any of its
subsidiary or associate company.

(iv) The Wholetime Director will perform his duties as
such with regard to all work of the Company and he
will manage and attend to such business and carry
out the orders and directions given by the Board
from time to time in all respects and conform to and
comply with all such directions and regulations as
may from time to time be given and made by the
Board and his functions will be under the overall
authority of the Chairman & Managing Director.
(v) The Wholetime Director shall adhere to the
Company’s Code of Business Conduct and Ethics
for Directors and Management personnel.

Shri Hital R. Meswani, Shri PMS Prasad and Shri R
Ravimohan satisfy all the conditions set out in Part-I of
Schedule XIII to the Act for being eligible for the
appointment / re-appointment.
The above may be treated as an abstract of the terms of
appointment / re-appointment of Shri Hital R. Meswani,
Shri PMS Prasad and Shri R Ravimohan under Section
302 of the Act.
Shri Hital R. Meswani, Shri PMS Prasad and Shri R
Ravimohan are interested in the Resolutions as set out
respectively at Item No. 5, 6 and 7 of the Notice which
pertain to their respective appointment / re-appointment
and remuneration payable to them. Further, Shri Nikhil R.
Meswani, a Wholetime Director, may be deemed to be
interested in the Resolution pertaining to the re-
appointment of, and remuneration payable to Shri Hital
R. Meswani as they are related to each other. Save and
except the above, none of the other Directors of the
Company is, in any way, concerned or interested in the
Resolution.
The Board commends the Resolutions as set out at Item
Nos. 5, 6 and 7 of the Notice for your approval.

By Order of the Board of Directors

Vinod M. Ambani
President and Company Secretary
October 7, 2009
Registered Office:
3rd Floor, Maker Chambers IV,
222 Nariman Point,
Mumbai 400 021, India
e-mail : investor_relations@ril.com

1 6

Enhancing Lives. Energising India. The Reliance Way

Management's Discussion and Analysis

Forward-looking Statements

The merger is EPS accretive and results in the Company:

This report contains forward-looking statements, which
may be identified by their use of words like 'plans',
'expects', 'will', 'anticipates', 'believes', 'intends',
'projects', 'estimates' or other words of similar meaning.
All statements that address expectations or projections
about the future, including, but not limited to statements
about the company's strategy for growth, product
development, market position, expenditures, and
financial results, are forward-looking statements.
Forward-looking statements are based on certain
assumptions and expectations of future events. The
Company cannot guarantee that these assumptions and
expectations are accurate or will be realised. The
Company's actual results, performance or achievements
could thus differ materially from those projected in any
such forward-looking statements. The Company assumes
no responsibility to publicly amend, modify or revise
any forward looking statements, on the basis of any
subsequent developments, information or events.

Overview

RPL merger with RIL: Value creation through scale and
synergies

The merger of Reliance Petroleum Limited (RPL) with
Reliance Industries Limited (RIL) has enabled seamless
integration of operational scale and financial synergies
that existed between the two Companies. Assets and
liabilities of RPL have been transferred to RIL with effect
from 1st April 2008, as per the approval granted by the
Hon. High Courts of Mumbai and Gujarat. Shareholders
of RPL received 1 share of RIL in lieu of every 16 shares
of RPL held by them, as per the scheme of merger.
Accordingly, 6.92 crore new equity shares of RIL have
been allotted to the shareholders of RPL.

The merger creates a platform for reinforcing the
Company's position as an integrated energy company on
a global scale. The merger enhances value for
shareholders of both Companies.

Through this merger, RIL consolidates a world-class,
complex refinery that complements its’ existing refining
assets. RIL will additionally gain from reduced operating
costs arising out of the combined operations. The merger
is expected to reduce the earnings volatility for RPL
shareholders as they participate in the integrated energy
chain of RIL.

(cid:2) Operating two of the world's largest and most complex

refineries

(cid:2) Owning 1.24 million barrels per day (MBPD) of crude
processing capacity, the largest at any single location
in the world

(cid:2) Owning 25% of the world's most complex refining

capacity

(cid:2) Emerging as the 4th largest producer of polypropylene

globally

(cid:2) Becoming the world's largest producer of ultra-clean

fuels at a single location

RIL joins the league of global deepwater oil and gas
operators

RIL commenced production of hydrocarbons in its KG-
D6 block in the Krishna Godavari basin with the
production of sweet crude of 420 API. The production
of oil in KG-D6 was commissioned in just over two years
of its discovery, making it the world’s fastest green-field
deepwater oil development project.

RIL is enhancing India's energy landscape. RIL has
commenced gas production from KG-D6. Production from
the Dhirubhai 1 and 3 discoveries of the KG-D6 block
will result in a quantum leap towards achieving India's
energy security as it will account for 40% of the
Country's current hydrocarbon production. This will
reduce India's energy dependence on external sources
and help bring down subsidies in the fertiliser, power and
transportation sectors.

The project was completed in six-and-a-half years from
the time of discovery. This is significantly faster than the
time taken for similar production facilities elsewhere in
the world. The hostile weather conditions in the basin
allows a fair weather window of only four months every
year. RIL also had to overcome supply chain challenges,
capital cost escalations and manpower shortages to
adhere to its schedule. The Company was successful in
ensuring that gas was made available to service India's
energy needs in as short a period as possible.

The commencement of gas production from KG-D6 was
a complex task. It required engineering ingenuity to
develop critical infrastructure and the use of cutting-edge
technology hitherto unused in Asia. With the successful
completion of this project, RIL joins a select club of six
large deepwater operators globally.

Reliance Industries Limited

1 7

Refining Hub of the World

RIL started its refinery in the Special Economic Zone
(SEZ) at Jamnagar, which is the most complex, super-sized
refinery built anywhere in recent years. The new refinery
is the 6th largest refinery in the world with crude oil
processing capacity of 580,000 barrels of oil per day
(BPD).

The new refinery catapults RIL into the league of the
largest refiners globally, both in terms of complex refining
capacity and earning potential. RIL Jamnagar has since
emerged as the refining hub of the world with an
aggregate refining capacity of 1.24 MBPD of oil.

The new refinery has a Nelson Complexity Index of 14.0
enabling processing of heavy crudes and production of
superior products, which meet specifications exceeding
Euro IV standards. The refinery complex is now operating
at full capacity.

For the fifth consecutive year, RIL featured in the Fortune
Global 500 list of world's largest corporations. RIL's
current rankings are as follows:

(cid:2) 264 based on Sales

(cid:2) 117 based on Profits

RIL has been adjudged winner of the 'Golden Peacock
Global Award for Excellence in Corporate Governance
2008'.

Reliance Technology Group at Hazira won the
'International Award for creating World Class Research
and Technology Centre'.

RIL - Dahej was awarded the 'Greentech Safety Award
2009 - Gold' in Petrochemicals Sector by the Greentech
Foundation, India.

Financial Performance

$ million
28,850
5,076
4,410
3,018
3,083

Turnover
PBDIT*
Cash Profit
Net Profit
Net Profit*
*(excluding exceptional item)

Rs. crore
1,46,328
25,743
22,365
15,309
15,637

Change
+ 5 %
+ 6 %
- 11 %
- 21 %
+ 3 %

The net profit excluding exceptional item for the year was
at Rs.15,637 crore ($3,083 million) with a Compounded
Annual Growth Rate (CAGR) of 25% over the past five
years.

RIL announced a dividend (interim) of 130% amounting
to Rs. 2,219 crore ($438 million), including dividend
distribution tax. This is one of the highest payout by any
private sector company in India this year.

Return on Equity (without exceptional item) was at 21.6%
and Return on Capital Employed (without exceptional
item) was at 20.3 % for the year. RIL's net gearing was at
27.8 % and the net debt to equity ratio was 0.42 as on
March 31, 2009.

Reliance continues to play a pivotal role in the growth
of India's economy and endeavours to contribute to the
Nation's progress. RIL accounts for:

(cid:2) 10.4% of India's total exports

(cid:2) 2.9% of the Government of India's indirect tax revenues

(cid:2) 6.1% of the total market capitalisation in India

(cid:2) Weightage of 13.6% in the BSE Sensex

(cid:2) Weightage of 11.1% in the NSE S & P CNX Nifty

Financial Review

RIL delivered superior financial performance with
improvements across key parameters.

Turnover achieved for the year ended 31st March 2009
was Rs. 1,46,328 crore ($ 28.9 billion), a growth of 5%
over the previous year. Increase in revenue was due to
8% rise in prices and a 3% decline in volumes. During
the year, exports (including deemed exports) were higher
by 7% at Rs. 89,199 crore ($ 17.6 billion).

Consumption of raw materials increased by 16.1% from
Rs. 90,304 crore to Rs. 1,04,805 crore ($ 20.7 billion). This
was mainly on account of higher crude and naphtha
prices. Traded goods purchases were Rs. 2,205 crore
($ 435 million) as compared to previous year of Rs. 6,008
crore.

Employee cost was Rs. 2,398 crore ($ 473 million) for the
year as against Rs. 2,119 crore. The current year figure
includes Rs.111 crore towards expenditure incurred on
Voluntary Retirement Scheme / Special Separation
Scheme announced for the employees of the Patalganga
unit. Corresponding previous year figure was Rs. 29 crore
for employees of Patalganga, Nagpur & Silvassa unit.

Operating profit before other income increased by 2%
from Rs. 23,306 crore to Rs. 23,683 crore ($ 4.7 billion).
Net operating margin for the period was 16.7% as
compared to 17.5% in the previous year.

1 8

Enhancing Lives. Energising India. The Reliance Way

Other income was higher at Rs. 2,060 crore ($406 million)
against Rs. 895 crore (excluding Rs. 4,733 crore of
exceptional items) primarily on account of increase in
interest income.

EBITDA (excluding exceptional items) increased by 6%
from Rs. 24,201 crore to Rs. 25,743 crore ($5.1 billion).

Interest cost was higher by 62% at Rs. 1,745 crore ($ 344
million) on account of higher borrowings and the impact
of depreciation in the value of the rupee against the US
dollar. With nearly 84% of RIL's long term debt in foreign
currency, RIL was impacted by the 26% depreciation in
the value of the rupee against the US dollar. During the
year, Rs. 3,397 crore of interest was capitalized, as against
Rs. 885 crore in the previous year. Gross interest cover
was 5.0 compared to 12.3 for the previous year.

Depreciation was marginally higher at Rs. 5,195 crore
($1.0 billion) against Rs. 4,847 crore in the previous year.

Exceptional item of Rs. 370 crore ($72.9 million)
represents provisions related to RIL's investment in
Trevira.

Profit after tax, including exceptional item, was Rs. 15,309
crore ($3.0 billion) as against Rs. 19,458 crore for the
previous year, a decrease of 21.3%. Profit after tax,
excluding impact of exceptional items was Rs. 15,637 crore
($3.1 billion), representing an increase of 2.5%.

Earning per share (EPS) for the year was Rs. 96.8 ($1.9).
EPS excluding exceptional items was Rs. 98.8 ($1.9)
against Rs. 105 for the previous year.

Capital expenditure during the year was Rs. 24,713 crore
($4.9 billion) primarily on account of exploration and
production, SEZ refinery and implementation of value
maximization projects. Details of the capital expenditure
undertaken during the year are as follows:

Oil & Gas (E&P)
Refining & Marketing
Petrochemicals
Common
TOTAL

(In Rs. Crore)

FY 2008-09

FY 2007-08

10,270
10,287
2,514
1,642
24,713

13,443
2,661
506
2,893
19,503

During the year, a total of Rs. 11,574 crore ($ 2.3 billion)
was paid in the form of taxes and duties.
RIL remained India's largest exporter. Exports, including
deemed exports, were at Rs. 89,199 crore ($ 17.6 billion)

as against Rs. 83,492 crore in the previous year.

RIL exported to 111 countries, including many quality-
driven and value-driven markets. Exports represent 61%
of the RIL's turnover. Petroleum products constitute 83%
and petrochemicals contribute 17% of the total exports.
Resources and Liquidity
During the year, RIL strengthened its balance sheet and
significantly improved liquidity. This was done with a
view towards insulating the Company from the impact of
the global credit crisis while creating a strong platform
for enhanced growth. This was achieved through the
issuance of equity shares and the raising of longterm
resources from domestic and international markets.
RIL received the balance subscription of Rs.15,142 crore
against 12 crore warrants issued in April, 2007 on a
preferential basis to Promoters/Promoter group as per
provisions of SEBI guidelines.
RIL raised $1.70 billion by way of syndicated loans,
$1.25 billion through ECA-backed financing arrangements
and $100 million equivalent in Japanese Yen through
private placement. In addition, the Company raised long
term resources locally through the issue of debentures
aggregating Rs. 8,000 crore. A substantial portion of these
facilities were drawn down during the year.
RIL's debt as on March 31, 2009 was Rs. 73,904 crore ($
14.6 billion) with long term foreign currency denominated
debt of 84%. The average maturity of Company's long
term debt is 4.2 years. The proportion of short term debt
to total debt is conservative at 8.4%. RIL's liquidity
position and committed working capital facilities mitigate
any refinancing risk.
RIL's gross debt to equity ratio including long-term and
short-term debt as on March 31, 2009 was at 0.63, while
the net debt to equity ratio was at 0.42. As on March 31,
2009, RIL's net gearing was 27.8%.
RIL's cash and cash equivalents as at the year end
amounted to Rs. 25,050 crore ($ 4.9 billion). These are
placed in bank fixed deposits, CDs, Government securities
and bonds. RIL actively manages its short-term liquidity
in order to generate returns by investing its surplus funds
while ensuring safety of capital and maintaining liquidity.
The strength of RIL's balance sheet, credit profile and
earning capability is reflected in the fact that over 100
banks and financial institutions have financial
commitments to the Company. RIL meets its working
capital requirements through commercial credit lines
issued by a consortium of banks. RIL undertakes liability

Reliance Industries Limited

1 9

locations. The International Energy Agency (IEA), in its
World Energy Outlook 2008, estimates that by the year
2030, global energy demand is expected to increase by
50% from its current level. Oil and natural gas are
expected to remain primary energy sources and are
expected to meet 52% of the global demand. Natural gas
- a low carbon, low polluting green fuel - that will flow
from RIL's blocks, will create value and benefit India.
Increased concern of climate change augurs well for
natural gas as it is an environmentally benign fuel with
carbon emissions far lower than other fossil fuels. IEA
estimates that the world requires investments to the tune
of $12 trillion in the oil and gas sector over the next 20
years implying an annual investment of over $ 500 billion.
The cost index of CERA remains high indicating an
increase in sub-sea equipment costs despite the
economic slowdown.

IHS/CERA Upstream Capital Costs Index

Source: CERA

This was a year of contrasts. The first half of the year
saw firm prices and demand. However, following the
credit crisis and the slowdown in global economies,
demand dropped sharply and prices reduced 50% during
the second half.

IEA forecasts that the global oil demand is set to shrink
by 2.7% to 83.9 MBPD in 2009. The year 2008 also saw a
global oil demand slip to 86.3 MBPD, a decrease of 0.3%
over 2007.

The E&P industry clocked record performance in the first
half of FY 2008-09 following high commodity prices.
Average WTI prices remained at $ 82 /bbl vis-à-vis $ 86
/bbl for the previous year. Henry Hub natural gas price
averaged at $ 7.9 /MMBTU for FY 2008-09 as against an

management to reduce overall cost of debt and diversify
its liability mix.

RIL's financial discipline and fiscal prudence is reflected
in the strong credit ratings by leading international rating
agencies. RIL is rated BBB and Baa2 by S&P and
Moody's respectively, a notch above India's Sovereign
rating. RIL's long term debt is rated AAA by CRISIL and
'Ind AAA' by Fitch, the highest rating awarded by both
agencies. RIL's short-term debt is rated P1+ by CRISIL,
the highest credit rating assigned in this category.
Following the approval of merger by boards of RIL and
RPL, Moodys, S&P, Fitch and CRISIL reaffirmed their
respective ratings of RIL's debt instruments.

Note: The figures for the current year include figures of
Reliance Petroleum Limited (RPL), which is
amalgamated with the Company with effect from 1st
April 2008 and to that extent not comparable to those
of previous year.

Total Shareholder Return (Per Annum)

5 years

38%

10 Years

Since Listing (1978)

28%

25%

RIL has among the best track record of any industrial
company globally for delivering shareholders returns
over a thirty year period.

BUSINESS REVIEW

Oil and Gas Exploration & Production

This was clearly one of the toughest and challenging
years for the industry globally. Record prices and
increased focus on energy security led to reduced
availability of resources and made acquisition of
additional acreage tougher. Cost escalations, constrained
project engineering resources and the global credit crisis
restricted investments in the sector. The economic
downturn that followed resulted in unprecedented
demand destruction. Prices fell sharply impacting not just
profitability but also future growth prospects of E&P
companies around the world. Perhaps the only regions
that witnessed growing investments in the sector were
the deepwater regime off the East coast of India and
Brazil.

The structural theme for investment in the sector remains
valid. The world's hunger for reliable and affordable
energy supplies is growing. Overcoming this challenge
requires substantial investments, access to resources and
newer technologies to unlock resources from challenging

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Enhancing Lives. Energising India. The Reliance Way

average of $ 7.4 /MMBTU in FY 2007-08. WTI price
peaked at $ 146 per barrel in July 2008.

Global Natural Gas Market Growing

Globally, gas constitutes 24% of the energy basket while
in India it accounts for a mere 9%. The low share of gas
in India's energy consumption is attributed to limited
availability and nascent infrastructure. Gas accounts for
35% of the energy mix in the former Soviet Union and
Europe, 26% in USA, 17% in Japan and 15% in Korea.

The share of gas in the energy mix is set to increase
mainly due to growing demand from the industrial sector,
city gas distribution, power sector and opportunities in
the gas-to-liquids business. Gas is preferred because of
its cost competitiveness and environmental advantages
over other fossil fuels.

Sizeable investments over the last few years in
developing the natural gas business and related logistic
capabilities have resulted in increased availability of gas
in key markets. Global demand and vastly improved
transportation infrastructure have resulted in gas
becoming a fungible commodity and this is reflected in
the prevailing pricing environment. Improved availability
and transportation, combined with growing demand from
Asia, are resulting in the evolution of long-term gas
contracts. Regional variations in prices are driven
primarily out of differentiated transportation costs.

Natural Gas : Energy Landscape in India Set for Change

India is a growing economy with its GDP expected to
grow five-fold over the next three decades. The Country's
energy needs are expected to grow four-fold from 433
million tonnes of oil equivalent (MTOE) to around 1,856
MTOE by 2032, as per the Integrated Energy Policy of
the Planning Commission of India. However, India has a
huge dependence on imports with over 75% of oil and
25% of gas consumption being imported. In relative terms,
India's East coast is underexplored with its exploration
density of 0.15, which is amongst the lowest in the world.

The energy landscape is now set for change. The East
coast of India covers a vast stretch of sedimentary area
of 2.0 million sq KMs. The coast has been divided into
three major geological provinces viz. the Mahanadi basin,
the Krishna Godavari basin and the Cauvery Palar basin.
The super discoveries in the Krishna Godavari basin
have put the East coast of India into a global focus. The
KG basin is now compared with the Gulf of Mexico and
North Sea in their earlier days. RIL has more than 25

blocks in the East coast of India with exploration at
different stages of maturity. Several discoveries have
taken place in all the three basins and a large number of
prospects / leads have been identified for future
exploitation. With drilling success ratio of 54%, RIL's
drilling campaign is expected to target these basins.

Recent deepwater exploration campaigns have enhanced
the geological understanding significantly bringing about
new geological plays. The hydrocarbon accumulation has
been established in both the biogenic and thermogenic
corridors. The stratigraphic succession of older
mesozoics and younger tertiaries provides a distinct 'two-
tier' petroleum system distribution.

Demand for gas in India is set to increase from 179 million
metric standard cubic meters per day (MMSCMD) to 280
MMSCMD over the next decade, as per the Planning
Commission, Government of India. Supply, however, is
unlikely to keep pace with demand and the share of
imports is set to rise.

Increased availability of gas and enhanced investments
in transmission and distribution infrastructure will act as
the key enablers for its increased contribution to the
energy pool. The New Exploration Licensing Policy
(NELP) has ushered in an era of heightened investments
in exploration, which has resulted in truly large scale
discoveries.
RIL's E&P Business
Exploration
The Company made two gas discoveries during the year
as follows:
(cid:2) Well B1 in the KG-V-D3 block
(cid:2) Well L1 in the KG-D6 block
The appraisal of the southern area of KG-D6 is underway
targeting the extension of the channel levee fan complex
system within the tertiary sequences i.e. Pleistocene,
Pliocene and Miocene. Interpretation of 3D seismic data
during the year has led to identification of new prospects
in this area.
Acreage was added to the portfolio through domestic and
international acquisitions.
(cid:2) RIL, together with BP, was awarded the deepwater
block KG-DWN-2005/2 offered under NELP-VII. RIL
has 70% participating interest and BP holds the
remaining 30% and is the operator of the block.

(cid:2) Reliance acquired acreage in Peru by farming in two

Reliance Industries Limited

2 1

on-land blocks, including one block in which Reliance
is the operator.

(cid:2) Reliance acquired one exploration block (Block 155) in
Peru in partnership with Plus Petrol, CNPC and Petro
Peru.

During the year, Reliance farmed out 25% participating
interest in Block K in East Timor. Reliance now has 14
blocks in its international E&P portfolio including 3 in
Peru, 3 in Yemen (1 producing and 2 exploratory), 2 each
in Oman, Kurdistan and Colombia, 1 each in East Timor
and Australia, with total acreage of 99,000 sq KMs.
RIL's domestic E&P portfolio comprises 30% interest in
Panna-Mukta and Tapti (PMT) fields; 31 exploration
blocks awarded under the NELP and Pre-NELP licensing
rounds and 5 coal-bed methane (CBM) blocks. The total
domestic acreage is 325,000 sq KMs.
RIL has acquired this portfolio keeping in perspective its
prospectivity off the East coast of India and to balance
its portfolio in India and overseas. The portfolio
comprises both on-shore and off-shore as well as shallow
and deepwater blocks. RIL is committed towards playing
a significant role in creating energy security for the Nation
in its endeavour towards becoming a global integrated
energy company.
Development Plans
Production of around 2,000 barrels of oil per day (BOPD)
from 2 completed wells commenced in 1Q 2009 from the
Panna block. Work on the Panna-K platform & pipeline
installation is complete and drilling of 6 wells in the area
has commenced.
The SWP jacket and deck installation is expected to be
completed in FY 2009-10. The drilling of 3 wells is
expected to commence thereafter.
The development plan of the Panna PL was approved by
the Director General of Hydrocarbons, India (DGH) and
the same is expected to be completed in 2011.
The gas production in Tapti is estimated to ramp up
following the planned drilling of three in-fill wells in FY
2009-10.
Development plans for the CBM blocks, NEC-25 and KG-
D6 satellite fields have been submitted to the Government
and are under consideration.
Production
KG-D6
Oil production of light and sweet crude (with API of 42),

which can be processed by any refinery, commenced
from the KG-D6 MA field. In order to expedite production,
RIL commissioned India's first Floating, Production,
Storage and Offloading vessel (FPSO) in a record time
of two years from the discovery.
Gas production commenced from KG-D6 (D1 & D3
discoveries) in a record time of six-and-a-half years from
the time of discovery. In one of the fastest ramp-up in
any gas field worldwide, the gas production has ramped
up to nearly 40 MMSCMD.
RIL had to overcome supply chain challenges and
manpower shortages. RIL's early project completion is
especially commendable as the Bay of Bengal is known
for its extremely hostile weather conditions and sub-sea
currents of 4 knots. Inclement climate conditions allow
for a fair weather window of just four months every year.
The highlights of the KG-D6 project are:
(cid:2) Commissioned in 6.5 years, vis-à-vis world average of

9 years

(cid:2) Set to transform India's energy landscape and double

its gas production

(cid:2) Use of India's first FPSO, commissioned in less than 2

years

(cid:2) Among the lowest finding and development costs of

comparable projects globally

(cid:2) World's largest deepwater production with sub-sea tie

backs measuring 60 KMs

(cid:2) Execution involving 200 consultants and service

providers from 12 countries

(cid:2) Mega scale construction with highest ever fleet

mobilisation (89 vessels at peak)

(cid:2) Steel equivalent of 110,000 MT installed
(cid:2) Pipelines and umbilicals measuring over 500 KMs

deployed

(cid:2) Use of smart field technology with state-of-the-art

fibre optics for sub-sea controls

(cid:2) Largest handling terminal at a single location with a

capacity of 90 MMSCMD of gas

(cid:2) Onshore terminal (OT) raised by 4.5 meters above MSL

(cid:2)

using 5.7 million tonnes of sand
Involved 30 million man-hours with peak deployment
of 12,000 personnel

The facilities comprise wells and sub-sea architecture,
which are connected by flow lines and production risers
to a Control-cum-Riser Platform (CRP) and are tied back

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Enhancing Lives. Energising India. The Reliance Way

to the onshore terminal located 60 KMs from the gas
fields making it amongst the longest tie-backs in the
world.
KG-D6 field operations are controlled and monitored at
the OT. For control and monitoring requirements of the
sub-sea facilities, a multiplexed electro hydraulic control
system comprising power and communication equipment,
a Umbilical Distribution Hub (UDH), sub-sea distribution
assemblies (SDA), sub-sea distribution units (SDU), sub-
sea control modules (SCM), Xmas tree mounted
instrumentation and associated hydraulic and electrical
flying leads were conceived.
Production from the reservoirs is routed through the Deep
Water Pipeline End Manifold (DWPLEM) via infield
pipelines and two 24-inch pipelines from the DWPLEM
to the CRP. Three 24-inch trunk lines carry the production
from the CRP to the OT for processing and downstream
distribution.
The competitiveness of KG-D6 should be viewed in the
context of a sizeable increase in supply chain cost, which
has more than doubled since 2002. The significant
increase in the production profile of the block thereby
necessitated a change in the development plan; rig costs
increased by 300% and all other costs also rose by 50%
to 100% during the development period.
Gas from the KG-D6 field is being received at an onshore
facility at Gadimoga in the state of Andhra Pradesh and
delivered to the East-West pipeline.
RIL has signed gas contracts that are in line with the Gas
Utilisation Policy of the Government of India.
Accordingly, standard gas contracts have been signed
for a 5-year period at $ 4.2 /MMBTU with companies in
the fertiliser, power and the sponge iron sectors.
Production has already reached 5 billion cubic meters of
gas from this block.

Panna-Mukta

Panna-Mukta fields produced 1,615,221 tonnes of crude
oil and 1,668 MMSCM of natural gas for FY 2008-09, a
decrease of 15% and 18% respectively as compared to
the previous year. The decrease in production at Panna-
Mukta field was due to the shutdown in June 2008.
Production was restored to pre-shutdown level in August
2008.

Tapti

Tapti block produced higher gas volumes of 4,205
MMSCM and 271,570 tonnes of condensate, registering

a growth of 25% and 17% respectively as compared to
the previous year. The effect of the NRPOD project was
fully realised in the incremental production in
FY 2008-09.

Refining and Marketing

A Year of Two Halves

Refining margins during the year witnessed extreme
volatility globally. They remained healthy for the first half
of the financial year due to booming middle distillate
cracks. However, margins dropped significantly thereafter
and lower demand resulting in weaker product cracks.
Gasoline crack margins remained weak throughout the
year due to low global demand, particularly in the US.

The year also witnessed unprecedented crude price
volatility. Crude oil prices peaked during the first half of
the year, with WTI touching $ 145.3 /bbl in July '08. The
surge in demand from China, Middle East, Australia and
Latin America and geopolitical events played a significant
role in driving prices higher. What followed was plunging
prices with WTI averaging at $51 /bbl in the second half
of the year. This reflected a fall of 58% compared to the
average for the first half of the fiscal.

In times of turmoil, what set RIL apart was the complexity
and ability to maintain high operating rates. RIL altered
the petroleum refining scenario in India by building the
world's largest greenfield refinery The two Jamnagar
refineries that the Company operates are not only among
the largest in the world, but also among the most
complex, with a combined average complexity of more
than 12.0 on the Nelson Complexity Index. Following the
merger, RIL is among the Top 10 private sector refining
companies globally. It owns 25% of the world's most
complex refining capacity. RIL has become the world's
largest producer of ultra-clean fuels at a single location
reaffirming the Company's ambition of enhancing lives
of millions of Indians and tilting the energy balance in
India's favour.

Global Industry Overview

The global petroleum market has been significantly
affected since the summer of 2008 by the impact of earlier
high prices, an economic slowdown and the credit crisis.
As per the IEA, global petroleum product demand for
2008 declined by 0.2 MBPD. This was earlier projected
to grow by approximately 2.0 MBPD.

The year 2008 witnessed unprecedented crude price
volatility with prices peaking in the second quarter of FY

Reliance Industries Limited

2 3

2008-09. The spurt in crude prices was due to a sudden
surge in demand from China (pre-Olympics), Middle East
(power generation), Australia and Latin America (gas
outages) and combination of geopolitical events. In the
third quarter of FY 2008-09, crude prices plunged to lower
levels with WTI, Brent and Dubai averaging $ 59.1, $ 55.5
and $ 52.8 /bbl respectively, almost half of that of the
previous quarter prices of $ 118.1, $ 115.1 and $ 113.6 /
bbl respectively. The depressed price outlook for crude
continued in Q4 FY 2008-09 with WTI, Brent and Dubai
averaging further down to $ 43.2, $ 44.5 and $ 44.3 /bbl
respectively.

Average Crude Oil Prices ($ / bbl)

FY 2008-09

FY 2007-08

High

Low Average High

Low Average

145.3
WTI
Brent
144.2
Dubai 140.8

31.3
33.7
36.4

86.8 110.4
84.5 109.1
82.8 101.1

61.4
62.5
62.4

82.0
82.1
77.1

(Source: Platts)

Demand for Petroleum Products

For the first time since 1983, according to IEA, global
demand for petroleum products contracted from 86.5
MBPD in 2007 to 86.3 MBPD in 2008, a decline of 0.3 %.
Non-OECD countries, driven primarily by China, India,
Middle East and Latin America, showed a demand growth
of 1.4 MBPD for the same period. In contrast, demand in
OECD countries shrunk by 1.6 MBPD.

Oil demand in 2009 is expected to fall by 2.4 MBPD to
83.9 MBPD, a decline of 2.7% from 2008, as per IEA. This
decline is in addition to the reduction of 0.2 MBPD seen
in 2008. Majority of the demand-decline is expected to
come from OECD countries, while demand in non-OECD
countries is expected to remain flat.

IEA forecasts global oil product demand to grow by 1.4%
per year and reach 87.9 MBPD by 2013 reflecting an
increase of 4.7 MBPD over 2009. Demand growth is
expected mainly from non-OECD countries, with a growth
of 5.2 MBPD during this period. Asia, Middle East and
South America are expected to account more than 80%
of growth in global demand during this period. In
contrast, demand in OECD countries is expected to
decline by 0.5 MBPD. Even with likely economic recovery
from 2010, demand fundamentals are expected to remain
modest in the medium term, as per the IEA forecast.

Diesel Demand
Diesel margins have been impacted by weak demand as
a result of economic slowdown, sluggish industrial
activity, capacity additions and growing distillate stocks.
US distillate stocks are at their highest level in two
decades, while the implied demand for distillates has
declined 10% this year, which is much more severe than
the 0.8% decline in US vehicle miles travelled. US vehicle
miles travelled have been fairly resilient despite US
gasoline demand being down 1.8% year-on-year and
diesel demand also down. Many industrial companies
have stated that recent performance was impacted by
destocking among customers, as well as by weak demand.
This has effectively exaggerated the drop in end-market
demand, which should rebound once industrial
destocking stops.
A major factor weighing on global diesel margins this
year is the increased production capacity in India and
China. Though short term economics weighs less on
investment decisions than long term economics, global
demand has been weak and margins have been below re-
investment levels. Much of the global refining capacity
additions coming online in 2009 are located in Asia, with
a significant proportion already operational, start-up
dates for several refineries' have been pushed back.
China and India are the only countries that are set to
grow distillation capacity and increase their global market
share. In terms of upgrading capacity too, China and
India are expected to see the most significant increase in
global market share.
Jet Fuel Demand
The sharp decline in international trade had a severe
impact on the demand for air transport; jet fuel has been
a drag on world oil demand for several months now. The
airline industry consumes about 6.0% of the world's oil
in the form of jet fuel. Physical exports of goods by major
exporting countries around the world (Germany, Japan,
Korea and Taiwan) declined at extraordinary rates last
year resulting in a near-complete collapse in road, sea
and air freight traffic.
Broadly, demand for jet fuel is linked to variables such
as industrial production and GDP. Upward revisions to
GDP growth for 2010 by international agencies suggests
that demand could strengthen in the coming months.
In the medium term, structural drivers of demand could
continue to undergo considerable change. Gasoil is
expected to remain the growth engine followed by

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Enhancing Lives. Energising India. The Reliance Way

naphtha and gasoline. Residual fuel oil is expected to see
the lowest growth due to continued substitution by
natural gas in power generation and heavy industrial
applications.

Light products driving the growth

Demand for gasoline, which currently constitutes 25% of
the world petroleum market, could see a slowdown from
current levels. Growth in demand for gasoline is expected
to primarily come from non-OECD countries while OECD
countries are likely to show a reduction in demand. The
reduction is more likely in the US as the impact of the
US Energy Independence and Security Act of 2007 comes
into force in 2011. Higher proportion of diesel cars is also
likely to impact demand for gasoline in Europe. Japan is
also projected to experience a reduction in gasoline
demand as vehicle efficiencies improve. Increase in
demand from non-OECD countries is expected to be
underpinned by rapidly growing vehicle population in
China, India, Brazil and other emerging markets.

Changing trends
High oil prices and unprecedented price volatility led to
two energy shocks - the first for consumers and the
second for producers. Since the last quarter of 2008,
OPEC was faced with shrinking oil revenue after a five-
year price boom. By January 2009, OPEC reduced its
output target by 4.2 MBPD below the September 2008
level in order to stabilise declining crude prices.
In December 2007, US introduced the 'Energy
Independence and Security Act' which mandates CAFÉ
(Corporate Average Fuel Economy) to increase to 35.0
miles per gallon (MPG) by 2020 from existing 22.0 MPG
for light trucks and 27.5 MPG for cars. The US
administration recently announced the acceleration of the
U.S motor fuel economy standards, increasing the CAFÉ
target from approximately 26.0 MPG to 35.5 MPG by 2016.
This advances the previous rule by four years.
Meanwhile, product specifications continue to become
more stringent in several regions of the world. In most
of the major oil consuming countries like EU, Japan and
some Asian countries, sulphur will be virtually eliminated
from gasoline and diesel by the year 2009 with mandated
maximum content of 10 ppm. In USA, this is now 15 ppm
for diesel and 30 ppm for gasoline whereas Canada
already has a 15 ppm limit for both. Gasoil is also being
targeted, with Europe reducing the maximum limit on
sulphur from 2000 ppm to 1000 ppm from January 2008

and further to 50 ppm from January 2009. This continuing
global trend of tightening of product specifications
across regions may present new trade opportunities for
global complex refiners like RIL, who have ultra-clean
product capabilities.
Demand for Petroleum Products in India
Domestic demand for petroleum products increased
during the year from 118.8 million tonnes to 124.1 million
tonnes, reflecting a growth of 4.5% in FY 2008-09. The
demand for transportation fuels like diesel and gasoline
continues to grow with higher automobile sales,
improved road network and overall economic activity.
Gross Refining Margins
Refining margins remained strong during the first half of
the year on the back of stable volumes and rising middle
distillate cracks. Refining margins came under pressure
during the second half following a marked slowdown in
demand that resulted in weak product cracks.
Gasoline cracks remained weak throughout the year due
to low global demand. Crack spreads touched new highs
for distillates whereas HSFO cracks touched new lows
during first half of the year. In sharp contrast, cracks for
distillates narrowed due to lower demand for products
like diesel and jet kero in the second half of the year.
For the year under review, RIL's gross refining margin
(GRM) was $ 12.2 /bbl, a premium of $ 6.4 /bbl over the
Singapore complex margin.
The medium term outlook for complex refining margins
remains positive, as modest demand could potentially
pressurise simple refiners to lower utilisation rates further.
Expectations that many of the new projects are likely to
be delayed puts strain on petroleum product supply
thereby supporting margins. In the coming years, besides
the supply-demand dynamics, refining margins could be
significantly influenced by the cost efficiency of sourcing
crude oil, manufacturing reliability, crude oil and product
evacuation infrastructure and the ability to produce high
quality transportation fuels. The complex configuration
of both refineries, experience in global crude sourcing and
product placement, technical capability to process heavy
and sour crude and skilled manpower is likely to give RIL
a unique advantage positioning it for top quartile margins
in the industry.
Complex refiners like RIL could gain further from (i)
higher premiums for ultra-clean products in the Western
markets, arising from stringent product specifications and
(ii) changing crude dynamics, resulting in wider Light-
Heavy differentials.

Reliance Industries Limited

2 5

refining is the complexity of its refineries. RIL owns 25%
of the world's most complex refining capacity. RIL has
also become the world's largest producer of ultra-clean
fuels at a single location.

Since inception of its refining business a decade ago, RIL
has been able to outperform the benchmark Singapore
complex refining margin.

RIL has been able to consistently outperform the Asian
benchmark due to the complexity, which allows it to
process heavy and sour crudes. RIL also has the proven
ability to place products in Europe, Asia and the U.S.
which has helped it capture the best net back.
RIL processed 32.0 million tonnes of crude and clocked
an average utilisation of 97%, which is significantly
higher than the average utilisation rates for refineries
globally.

Exports of refined products were at $14.0 billion. This
accounted for 21.0 million tonnes of product as compared
to 22.1 million tonnes in the previous year.

Production of petroleum products (in KT)

Product
Gases & Distillates
Fuel oils and solids
Total Production

FY 2008-09
28,000
4,450
32,450

FY 2007-08
28,500
4,600
33,100

RIL is increasing the competitiveness of the DTA
refinery in order to improve crude processing flexibility,
meet more stringent fuel specifications and improvement
in yields and efficiencies. The coker heavy naphtha
hydrotreater (CNHT) being set up will help produce
downstream products like gasoline, paraxylene and
orthoxylene from heavy naphtha. Additionally, the
kerosene hydrotreater will help meet the dual requirement
of higher ATF production and to produce ATF which can
meet the changing stringent quality requirements, . This
will upgrade the quality of ATF and help realize higher
premium apart from increasing the production capability.

Simultaneously, RIL also upgraded some of the existing
facilities like the light naphtha unionfining unit (LNUU)
and the fluidised catalytic cracking unit (FCCU). LNUU
was upgraded to improve availability of captive feed
stock for petrochemical units and to update the light
naphtha. The FCCU was modernised to reduce the
consumption of low sulphur waxy residue (LSWR) and
to optimise the production of low-sulphur gasoline.
Domestic Petroleum Marketing

Refinery Capacity and Utilization Trends
Growth in crude distillation capacity continued with
refiners adding more capacity than the past two years,
according to Oil & Gas Journal's world refinery survey.
Refinery capacity increased from 85.3 MBPD to 85.6
MBPD. In the year 2008, the only new capacity to start
operation was Sinopec's Quingdao refinery with a
capacity of 0.2 MBPD. There was some creep capacity
addition by players like Valero's Quebec facility, LG
Caltex's Yosu and Nippon Oil's Oita.
Refiners all over the world are reducing operating rates
following a drop in demand and lower margins. The
average capacity utilisation rates in 2008 for refineries in
North America, Europe and Asia were at 83.6%, 82.8%
and 83.2% respectively as compared to 86.9%, 83.8% and
85.9% respectively for the year 2007.

Regional Operation Rate %

Source: ESAI
Global refining capacity is expected to increase by 1.8
MBPD in 2009, with Asia accounting for 80% of the
increase, as per IEA. Forecasts for investments in the
industry are to add 6.9 MBPD of crude distillation
capacity between 2009 and 2013, which significantly
outpaces expected demand growth. However, projects
beyond 2009-2010 face the risk of getting cancelled or
deferred due to credit crunch and weak economic
outlook.
The ensuing supply overhang is likely to result in reduced
refinery utilisation rates across the globe leading to
capacity shutdowns at simple topping refineries.
Performance Review
The consolidation of RPL's refining assets with RIL's
existing refining business gives RIL a capacity of 1.24
MBPD. What sets RIL apart in the context of global

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Enhancing Lives. Energising India. The Reliance Way

Domestic Petroleum Marketing

RIL's EOU refinery was converted to non-EOU status in
April 2009 and sales of MS/HSD to PSU oil companies
commenced from May 2009. To a limited extent, RIL has
also restarted retail operations in southern and western
states of the Country.

RIL forayed into petroleum retail in the year 2004 and
made significant success achieving a market share of
14.3% in April 2006. However, RIL decided to suspend
the operations due to rising crude prices and lack of a
level playing field in the domestic market. While there
has been no change in the pricing environment, falling
crude and product prices have provided windows of
profitable operations.

Aviation Turbine Fuel (ATF) demand has seen a dramatic
fall with negative growth of 1.9% in FY 2008-09 as against
ATF demand growth of 14.4 % in FY 2007-08. During FY
2008-09, passenger traffic reduced by 6.9% in India due
to economic slowdown. This reduction in traffic has
affected the demand for ATF in the Country. RIL entered
this segment a few years ago and may expand its network
with a view to addressing this growing segment.

The demand of petcoke in India is presently around 7
million tonnes per annum with Gujarat and Rajasthan
accounting for 75% of domestic demand. Petcoke is used
largely in the cement industry as a feedstock. Current
demand in India exceeds overall production capacity
despite the start-up of the coker at the new refinery at
Jamnagar. During the year 2008-09, RIL sold a total of
3.18 million tonnes of petcoke. With the commissioning
of new capacities in the cement industry as well as the
setting up of captive power plants by various industrial
units, the demand for petcoke is expected to increase.

Gulf Africa Petroleum Corporation (GAPCO)

RIL took majority control over GAPCO in 2007. GAPCO
owns and operates large storage terminal facilities and a
retail distribution network in several East African
countries. This acquisition has enabled RIL to expand its
footprint in the petroleum downstream sector. GAPCO
consolidated its position in East Africa during the year.
The terminals in Dar Es Salaam (Tanzania), Mombasa
(Kenya) and depots in Uganda and Tanzania were fully
operationalised, including commissioning of white oil
facilities and rail/road loading facilities in Mombasa.

GAPCO emerged as the market leader in the retail
segment in Tanzania and was also successful in winning

several contracts for gas oil and jet kero in Kenya.
Significant reductions were achieved in supply chain cost
and the operations were integrated into the RIL system.

The new SEZ refinery at Jamnagar

RIL's new refinery in the Special Economic Zone at
Jamnagar, is the world's sixth largest and has a Nelson
Complexity Index of 14.0, making it the largest and most
complex refinery globally. The refinery has a capacity of
processing 580,000 barrels of crude oil per stream day
(BPSD). The facility also has the capacity of producing
0.9 million tonnes of polypropylene per annum. In
addition to size and complexity, the SEZ refinery has
several advantages:

(cid:2) Ability to process challenged crude varieties
(cid:2) Able to produce Euro V grades of gasoline and diesel
(cid:2) Highly competitive operating cost due to advantages

of scale, technology and operational synergies

(cid:2) Capability to produce alkylates - a premium gasoline
blend component. It will have the flexibility to maximize
production of alkylate by converting butane to
isobutene

All key processing units, including the Fluidised
Catalytic Cracking Unit (FCCU), Vacuum Gas Oil (VGO),
Hydrogen Manufacturing Unit (HMU), Diesel Hydro De-
Sulphurisation (DHDS), Propylene Recovery Unit (PRU),
Coker unit and the Polypropylene complex are operating
close to their respective design capacities. All the support
units and utilities are fully operational and presently the
refinery is operating at its design capacity.

The refinery has successfully processed more than 20
types of crude oils, including difficult crude oils within a
few months of its start-up, thus reflecting superior quality
of assets and capabilities. Exports have commenced to
26 countries, including to the US and Europe.

This is a significant achievement viewed in the context
of current market conditions and reflects RIL's ability to
produce and place high quality, value-added products in
a challenging market environment.

RIL's objective is to maximise the advantages of its high
quality complex assets and realise the synergies of the
combined operations of both refineries towards
overcoming the ongoing challenges in the industry and
sustaining superior margins.
The Company's focus will be on sustaining high
operating rates, improving efficiency and reducing
operating costs. RIL can leverage the benefits of

combined refining operations that can result in
unprecedented level of product flexibility and swing
capabilities.

From a marketing perspective, RIL aims to expand its
global reach in order to ensure efficient product
placement, maximise net backs and achieve premium for
ultra-clean fuels. The continuing growth in India also
presents an opportunity to enhance volumes.

Petrochemicals:

The year was marked by extreme volatility in demand and
prices. After starting on a robust note, the industry
stumbled into a phase of steep decline in prices and
demand. Some recovery in demand and prices was seen
in the last quarter of the financial year.

Commodity Prices Trend Reversal

A combination of sky rocketing oil prices and poor
demand eroded margins for petrochemicals. High natural

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2 7

Average cracker utilisation rates in Western Europe
dropped from 90% in September to below 80% in October.
Demand destruction prompted a succession of high-cost
US and European olefins producers to idle operations.

Ethylene scenario

Ethylene is the principal building block and a major
feedstock for polymers. Naphtha is the major feed for
ethylene production in Europe and Asia.

Ethylene from ethane feedstock is more prevalent in
regions associated with natural gas, like North America
and the Middle East. Producers in Middle East have the
lowest cost ethylene in the world.
Capacity additions of olefins planned in the Middle East
during 2008-2011 could substantially change the supply
scenario. The region will account for 18% of global
ethylene capacity in 2010 rising from 10% in 2005. Five
new crackers were commissioned in the Middle East
during 2008 (two each in Iran and Saudi Arabia and one
in Kuwait) accounting for 4.5 million tonnes of new
ethylene capacity (4% of global capacity). On the other
hand, global ethylene demand fell by 3.2 million tonnes
last year.

Ethylene capacity in India is estimated at 2.8 million
tonnes. Approximately 60% of this is naphtha-based and
the rest are based on ethane / propane / butane.

World Major Thermoplastics Demand (2008)

gas and naphtha prices resulted in a strong cost push in
monomer pricing. Consequently, cracker margins crashed
in Q2 2008. In response to the fear of continued weakness
in demand, de-stocking was accentuated in view of a
wave of new olefin capacity expected on stream in the
Middle East region. During the first half of 2008, ethane-
based producers benefited from a significant cost
advantage as compared to naphtha-based producers. The
industry faced a series of unprecedented challenges in
the latter part of 2008. With wide fluctuations in feedstock
prices, polymer prices witnessed the crest (highest ever)
and a trough (5-year low) within the same year. The result
was a collapse in demand and operating rates for the
industry globally.

Source: CMAI
Global demand for thermoplastics is dominated by
polyolefin (PE & PP), representing 61% of commodity
plastic consumption. Polyethylene (PE) is the largest
group accounting for 37% (LDPE, LLDPE and HDPE) of

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Enhancing Lives. Energising India. The Reliance Way

the demand while polypropylene (PP) is the single largest
category with a share of 24%.

Energy contributes significantly to the cash cost of
polyolefin. Crude oil and natural gas derivatives are the
primary feedstock used to produce ethylene and
propylene, the building blocks for PE and PP. Access to
low-cost feedstock is an advantage in the cost of
manufacturing PE and PP. Due to access to cheaper
feedstock, the Middle East region will command a
considerable cost advantage in the production of polymer.

The India Advantage

The Indian economy is on a steady growth trajectory
despite the slowdown in global economies seen through
the previous year. Recent removal of restrictions in
foreign investments and de-licensing in the industrial
sector has resulted in a spurt in economic activity. This
trend is expected to continue during the coming years
and will have a favourable impact on the industry.

Plastic consumption is linked to growth in per capita GDP
of the economy. Per capita consumption of plastics in
India is 6 kg as against China's 30 kg. In developed
economies, per capita consumption is in excess of 80 kg.
With growing per capita income and a favourable
demographic profile, demand for plastics in India is
expected to grow in the coming years.

India's growth is driven by its domestic consumption.
Relatively lower dependence on exports has ensured that
global economic meltdown had limited impact on overall
demand for plastics in the Country.

RIL's production

Among major global players, RIL has the unique
distinction of operating plants at over 90% capacity
utilisation and realising superior margins. This was
achieved despite margin compression in Q2 2008 and
lower production due to planned shutdown. RIL
maintained its leadership position in the domestic market.

Polymer Production in Kilo Tonnes (KT)

Product
PP
PE
PVC
Total

FY 2008-09
1466
996
614
3,076

FY 2007-08
1712
1083
579
3,374

Feedstock integration and linkages

RIL produces a comprehensive range of petrochemicals
comprising plastics (PE, PP and PVC), olefins (ethylene
and propylene) and polyester (PFY, PSF and PET), fibre
intermediates (PX, PTA and MEG), aromatics (benzene,
toluene and butadiene) and other chemicals. RIL's
business model of a fully-integrated refining and
petrochemicals business provides feedstock synergy and
flexibility to optimise product slate to capture the highest
market value, thus helping maximise overall profitability.

Other features of refinery / petrochemical integration,
including significant savings in transportation and
terminals, utilities management, and other expenses have
also helped RIL sail through, what is otherwise seen to
be one of the toughest years for the industry. A
combination of two naphtha crackers and two gas
crackers provided RIL with a balanced portfolio of assets
thereby optimising the feed for overall petrochemical
business.

RIL has participated in the domestic growth opportunity
with operating strategies like:

(cid:2) Strong on-ground capabilities and extensive

distribution

(cid:2) Superior product portfolio, feedstock slate and

business integration

(cid:2) Supply

chain optimisation
warehousing and demand centres

encompassing

(cid:2) Production rationalisation in line with market demand

Polypropylene (PP)

In 2008, global production capacity for PP was 52 million
tonnes and demand was at 44 million tonnes. During the
year, global demand declined by 1.3%. Consequently,
operating rates went down from 92% in 2007 to 86% in
2008. Prices remained volatile during the year reaching a
peak of $ 2025 /MT (all-time high) and a 6-year low of $
645 /MT in the same year. The year witnessed inventory
correction (reduced buying) across the supply chain in
Q2, 2008. Domestic demand revived substantially during
Q3/Q4, 2008 resulting in improved performance.

The new PP line in the SEZ facility at RIL is expected to
be fully operational in FY 2009-10. This would result in
additional capacity of 0.9 million tonnes of PP operative
in the year. Middle East has added 1.2 million tonnes last
year and is expected to add another 2.3 million tonnes in
2009. All these new capacities will enhance availability
of PP during the year.

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2 9

With high degree of integration with its refinery, RIL is
relatively well placed as compared to standalone PP
producers. Domestic demand for PP saw a 2% increase
despite weak economic conditions. This relatively lower
growth can be attributed to inventory corrections across
the chain.

With the new 0.9 million tonnes PP capacity coming on-
stream, RIL's aggregate capacity will increase to 2.6
million tonnes making the Company the 4th largest
producer of PP in the world.

As part of its growth strategy, RIL has made rapid
progress by identifying and developing new
applications, import substitution through introduction of
new grades and a constant replacement of conventional
materials to increase consumption in domestic market.

Polyethylene (PE)

Polyethylene continues to be the largest consumed
commodity plastic. Global capacity in 2008 was 78 million
tonnes while consumption was 66 million tonnes. There
was a decline in consumption by 3.4% as a result of
global economic slowdown. Operating rates also declined
to 84% in 2008 as against 88% in 2007.

Nearly 23 million tonnes of new PE capacity is expected
to be added globally over the next five years. Middle East
is adding bulk of the new capacity followed by additions
in North East & South East Asia.

Margins in PE were under pressure during the year. While
price-spread between HDPE and naphtha during first half
of 2008 was relatively healthy, it shrunk during the latter
part of the year and was below the 5-year average of
$ 633 /MT.

In India, demand for HDPE/LLDPE grew by 6.2% during
the year. Demand for LDPE grew by 13% due to higher
imports by the end-users on the basis of reduced deltas
with LLDPE.

Poly Vinyl Chloride (PVC)

In 2008, global demand for PVC declined by 6.2%
resulting in lower operating rate of 76%. Crash in the US
housing market was a key contributor to this decline.

Global capacity was estimated at 43 million tonnes and
is expected to reach 50 million tonnes over the next five
years. Operating rates may dip further over next two
years as new capacities come on stream.

PVC consumption in India was 1.4 million tonnes in 2008-
09, and grew at 1% over the previous year. Pipes and

fittings continued to be the major market accounting for
71% of domestic PVC demand. Improved demand for PVC
pipe in agricultural sector compensated for decrease in
demand from construction sector.

Chemicals

Although chemical products experienced extreme price
volatilities during the last fiscal, RIL maintained its market
leadership in India and emerged as the supplier of choice
for customers.

Benzene

The global capacity of benzene exceeded 50 million
tonnes in 2008. Ethyl benzene remains the major end-use
of benzene (52%), followed by cumene (19%),
cyclohexane (12%) and nitrobenzene (9%), respectively.

RIL is a leading producer of benzene in Asia. In FY 2008-
09, RIL exported 413 KT of benzene to different markets
in USA, Europe and Middle East. Despite being a large
exporter, RIL has retained its leadership status in the
domestic market. RIL produced 662 KT during the year,
registering a growth of 1.8% on a year-on-year basis.
Benzene prices remained extremely volatile during the
year. It reached a peak of $ 1333 /MT and a low of $ 260
/MT in the same year.

With the fall in demand for benzene derivatives and the
associated de-stocking throughout their value chains in
the developed countries late last year, RIL diverted
additional benzene to Middle East and South East Asia,
the best net-back regions, on spot basis.

Polybutadiene Rubber (PBR)

PBR is the second largest synthetic rubber with global
consumption of 2.3 million tonnes per annum. Global
demand for synthetic rubber is growing at 2.0%. Rapid
improvement in automobile industry in China and India
is likely to see growth of over 6.2% and 7.5%
respectively in coming years in these markets. RIL is the
only manufacturer of PBR in India with production of 72
KT for the year 2008-09. India's current consumption of
PBR is 100 KT and is likely to reach 148 KT by the year
2013.

During the year, PBR prices touched record high of $
4,200/ MT before dropping to a five-year low of $ 1000 /
MT. Global consumption of PBR declined by 9 % in 2008
due to economic meltdown and consequent drop in
automobile sales. Most synthetic rubber manufacturers
across the world were forced to shutdown plants or
reduce operating rates due to reduced demand.

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Enhancing Lives. Energising India. The Reliance Way

Linear Alkyl Benzene (LAB)

Polyester

RIL continues to be a leading producer of LAB and
Normal Paraffins (NP) in the country. LAB production for
the year was 151 KT. Consumption of LAB in India has
been growing since 2000 at a CAGR of 5.0%. With a
capacity of 182 KTA, RIL is the 5th largest producer of
LAB in the world and is India's leading manufacturer.

Global demand for LAB has grown steadily at 3% CAGR
during 2000-2008, and has reached the present level of
3.0 million tonnes per annum, as against an installed
capacity of 3.45 million tonnes.

It was a relatively difficult year for the business. Raw
material costs reached their peak in the first half. The
second half experienced a significant demand drop as
consumers changed their buying habits and de-stocking
took place across the supply chain.

New Product Development

Five new grades were introduced by RIL during the year
in the homo-polymer and impact co-polymer segments to
supplement the existing range. RIL is also playing an
important role in formulating the Bureau of Indian
Standards for leno bag, developed for vegetable and fruit
packaging, and for PPR piping for hot and cold water
applications.

RIL joined a select group of manufacturers to have
certifications of all coloured compounds. This allows use
of RIL material for production of pipes required for city
gas.

RIL will be the first Indian Company and among 11
producers of PVC globally to be listed for resin/piping
material at the Plastic Pipe Institute (PPI).

Innovation in Materials, Technology and Processes

Some of RIL's product initiatives during the year were:

(cid:2) Advanced generation PP donors development.

(cid:2) Alternate catalyst evaluation for cost reduction and

alternate supplies.

RIL has also initiated innovative development of product
and process through:

(cid:2) High performance metallocene PE & PP grade

development.

(cid:2) Alternate low-cost feedstock sourcing.

(cid:2) Process and catalyst development for in-house co-

monomer production.

The global textile industry continues to rely on polyester
for its growth and this trend is expected to accelerate.

In 2008, global polyester filament and staple capacity was
41 million tonnes, of which 60% was filament yarn (PFY)
and 40% was staple fibre (PSF). This capacity is expected
to grow to 43 million tonnes by 2012 a CAGR of 2%.
China dominates the world with a share of 60% in
production and consumption. India follows with a
production and consumption share of 10%.

In 2008, major textile exporting countries turned towards
domestic markets. Protectionism against imports became
prevalent and several countries imposed anti-dumping
duties on textile imports. Despite an unexpected slump
in demand from the biggest clothing and textile market,
global demand for fibre was 73 million tonnes. Growing
demand in Asia, on the back of improved per capita
consumption, has helped maintain global consumption
levels.

Global demand for all fibre is 73 million tonnes of which
man-made fibre segment accounts for 45 million tonnes
while cotton accounts for 25 million tonnes. Global
demand is expected to increase to 79 million tonnes by
2012; reflecting an annual growth of 4%. Demand is
expected to be led by China followed by India.

Along with rebound in GDP growth and improving
demographics globally, per capita polyester fibre and
yarn consumption is set to increase to 12.4 kg by 2015
from present level of 11 kg.

Growth in global GDP is expected to further improve
demand for fibre and yarn by 5% over the next
three years. With a growth of 3% over the next three
years, capacity addition is expected to lag growth in
demand. The depletion of stocks in the entire textile
pipeline will also help support demand across the chain.

Average polyester operating rates are also expected to
improve close to 80% in the next five years compared to
lower rates of 75% in the past five years. Asian polyester
operating rates will also follow suit with global trend to
improve from an average of 77% in the last five years to
82% in the next couple of years.

Domestic Market

The business conditions were volatile as polyester
demand consumption dropped during the first half but
recovered thereafter and marked a full year gain of 5%.
PET remained buoyant triggering a full year demand

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3 1

mark-up of 28%. Demand for PFY improved by 6% while
demand for PSF registered a drop of 1%.

Yarn spinners in some parts of India were severely hit
by irregular power cuts. High cotton prices, slowdown
in exports and imposition of anti-dumping duty against
spun yarns in key export markets stifled the spun yarn
market further.

Current level of fibre consumption in India is low in
comparison to global levels. In 2008, global per capita
world consumption of all fibre was 11 kg, while for India
it was at 4.2 kg. In comparison, China was 15 kg and
North America and Europe have per capital consumption
of over 25 kg.

Over the next decade, the drivers of domestic demand
will be:

(cid:2)

Increasing population and growing per capita income

(cid:2) Retail revolution

(cid:2)

Increasing non-apparel applications and technical
textiles

PET is one of the fastest growing segments in polyester
providing a cheap and effective packaging solution.
Global PET resin capacity was 17.5 million tonnes in 2008.
It is expected to grow to 22.6 million tonnes by 2012.
Global PET resin demand was 14.0 million tonnes in 2008
and is expected to grow to 17.7 million tonnes by 2012.

India has a PET resin capacity of 0.8 million tonnes of
which domestic demand constituted during the period
was 0.3 million tonnes with the rest being exported.
Domestic demand is expected to go to 0.5 million tonnes
by 2012 as the per capita PET consumption in India is 0.22
kg as compared to the world average of 2.1 kg in 2008.

RIL's Performance

RIL is the world's largest polyester fibres and yarn
producer with a capacity of 2.5 million tonnes per annum.
With a collective production (polyester, PX, PTA and
MEG) of 6.6 million tonnes per annum, RIL is also the
world's largest fully integrated polyester producer.

Production volumes of polyester, including subsidiaries
decreased by 2% to 1,534 KT. RIL maintained its focus
on specialty products, which account for 55% of PSF and
38% of PFY production. RIL maintained its leadership
position in the domestic market.

Polyester Production in KT
Product
PFY
PSF
PET
Total

FY 2008-09
646
559
329
1,534

FY 2007-08
683
621
268
1,572

RIL commissioned its polyester industrial yarn plant
during the year. The plant has the capability to produce
a wide range of products ranging from 200 denier to 1000
denier with specific physical properties to cater to
industrial uses.

This was the first full year of operation of Recron
Malaysia following its acquisition by RIL. The operations
of the Company have substantially improved in the last
one year and units are running at full capacity. Quality
standards were improved to make it at par with RIL
products.

Developed countries had to bear substantial impact of
the current economic crisis in comparison to developing
countries. Automotive industry in EU and USA had to
especially rationalise their operations due to credit crisis.
This had a direct impact on operations of Trevira in
Germany and led to the filing of an application for the
commencement of insolvency proceedings of Trevira. RIL
has made adequate provisions for any loss that may arise
due to this situation.

Fibre Intermediates

Demand for PX is expected to grow to 32 million tonnes
by 2012 predominantly from China. This growth in
demand could result in significant PX capacity addition
in the coming years. As new refineries come on stream
in China and the Middle East, PX capacity is expected
to grow to 39 million tonnes in 2012 (CAGR of 6%).
Moreover, capacity addition is also likely in Middle East
due to cheap raw material proximity.

In 2008, global PX capacity was 31 million tonnes while
demand was at 26 million tonnes. Operating rates
remained subdued in recent times due to wide
fluctuations in crude prices. This has resulted in lower
profitability for refineries and led to fluctuating supply
of PX.

India's PX production was 2.1 million tonnes in 2008 and
is expected to grow to 3.4 million tonnes by 2012. RIL is
the world's 4th largest producer of PX with a capacity of
nearly 2 million tonnes per annum.

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Enhancing Lives. Energising India. The Reliance Way

PTA markets remained tight due to shortage of PX.
Towards the latter part of the year, most producers had
to reduce operating rates due to non-availability of
feedstock. Consequently, PTA remained in tight supply
and China witnessed an inventory drop of 1,715 KT in
the last year. Capacity additions of 5,000 KTA of PX and
3,000 KTA of PTA are expected to help ease this shortage
over a period of time.

MEG prices continued on their downtrend throughout
2008-09 as supplies from Middle East recovered. With
nearly 3 million tonnes of new MEG capacity coming up
in 2009, margins and operating rates are likely to remain
under pressure in the near future.

During 2008-09, RIL's production of fibre intermediates
decreased by 3% to 4,583 KT due to planned shutdown.
RIL was partly insulated from the global crises due to
backward integration of polyester value chain. RIL
continued operations across the chain with minimum
impact.

Fibre Intermediates Production in KT

Product
PX
PTA
MEG
Total

FY 2008-09
1,879
1,978
726
4,583

FY 2007-08
1,878
2,035
801
4,714

Petrochemical industry is likely to witness low operating
rates for the next 18-24 months as new capacities are
commissioned in Middle East and China. Operating rates
could improve thereafter with a recovery in demand and
closure of inefficient plants.

RIL is uniquely positioned in this business as it benefits
from significant competitive advantages like integration
and its strong presence in India, which is one of the
fastest growing markets in the world.

RIL remains focused on improving efficiencies, remaining
fully integrated, maintaining high operating rates,
innovating products and reaping the benefits of domestic
growth. RIL’s strong domestic presence will provide it
with unmatched growth opportunities to enhance lives.

Textiles

RIL is distinctly known for shepherding a new era in
fabrics. The flagship brand VIMAL, which was re-
launched in the middle of 2007-08, is one of the most
trusted brands of premium textiles in the Country. With
the commissioning of new investments in design, modern

weaving, state-of-the-art finishing equipments, RIL
continues to operate one of the most modern textile
complexes in Asia.

Major growth drivers for VIMAL continued to be retail
presence across India, constant innovation in products,
cost efficiency and improved customer service. The
division continued adding clients in auto textiles and is
now a significant supplier to major automobile
manufacturers in India. The division continued its forays
in the defence / police / paramilitary services by
supplying specialised fabrics for their applications.

New product initiatives included:

(cid:2) Fresca anti-microbial and anti-bacterial work-wear

apparel fabrics

(cid:2) Home furnishing and auto-textiles

(cid:2) Silk-Amino suiting fabrics

(cid:2) Fire-retardant and water-repellent tent fabrics for

defence/ police services

(cid:2)

Insect & mosquito repellent nets, as per WHO
standards, which will find usage in several areas of
the world affected by mosquitoes / insects

Opportunities:

RIL's ability to grow earnings consistently through
business cycles has been its hallmark with earnings
growth always exceeding CAGR of 20% over any 10-year
period in the past 30 years. Several factors have
contributed to this enviable track record. These include
best-in-class project execution; world class assets;
economies of scale; use of contemporary technology and
financial discipline.

Natural gas forms a key component of India's energy
basket and meets 9% of its total energy requirement.
Traditionally, in India, natural gas has primarily been used
as a hydrocarbon feedstock in the fertiliser,
petrochemicals and power sectors. However, the scope
of natural gas usage in the Country has been increasing
over the last decade. Gas is now progressively being used
as a fuel in transportation and at homes. With the ever
increasing demand for oil and petroleum products, RIL's
foray into the exploration and production will contribute
significantly towards enhancing availability of
hydrocarbons. The production of gas from KG-D6 will
catapult RIL to become the largest gas producer in India.
The Company expects this business segment to deliver
sustainable longterm returns. In addition to the

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3 3

development of KG-D6, RIL will continue its ongoing
efforts of exploration and development of various blocks.

The downturn in the global economy has sharply
reduced demand for refined products at a time when new
refining capacity is coming online around the world. As
a result, global product inventories are high and refining
margins are depressed. However, once the global
economy improves, demand for petroleum product and
margins may also improve. RIL, with its high complex
refining capacity of 1.24 MBPD at Jamnagar, is poised to
benefit from the global economic turnaround. The new
SEZ refinery is capable of supplying high-quality
products to the advanced economies around the world
in line with changing environmental norms for various
transportation fuels.

In the petrochemicals business, the Company is likely to
benefit from the 'India Advantage', where the demand for
the petrochemical products continues to grow at a higher
than GDP growth rate. In line with its growth strategy,
RIL has recently added new PP facility with annual
capacity of 0.9 million tonnes thus maintaining its
leadership position in the domestic market

Challenges, Risks and Concerns

Successful execution of the two large projects viz. the
development of the KG-D6 block and the implementation
of the new refinery at Jamnagar is being completed. The
upstream project KG-D6 had a safe and reliable start-up
and the gas production ramp-up is progressing well. The
new refinery at Jamnagar is now operating at full capacity
and producing the desired quality of products. Hence,
project-related risks for the Company have reduced
considerably.

In the current global uncertain economic environment,
certain risks may gain more prominence either on a
standalone basis or when taken together. Refining
business profitability could be volatile, with both periodic
supply tightness and oversupply situation in various
regional markets. The prices and margins of petroleum
products are likely to remain lower than in the recent
times due to reduced demand. The impact of this
situation would also depend on the degree to which other
producers reduce the operating rates or take a shutdown.
These factors may also lead to intensified competition
for market share and available margin, with consequential
potential adverse impact on volumes.

Petrochemicals sector is also subject to fluctuations in
supply and demand within the regional markets, with a
consequent effect on prices and profitability. Periods of
global recession could impact the demand for
petrochemicals products, the prices at which they can be
sold and affect the viability of operations.

Additionally, while RIL exports products to several
countries, most of RIL's manufacturing facilities are based
in India. While this has been done to obtain maximum
benefits of size, scale and integration advantages, RIL is
entirely dependent on manufacturing in India.

RIL's exports, which constitute 61% of its turnover, are
earned in foreign currency, primarily the US dollar. As part
of the fund raising efforts, the Company is likely to
continue to tap the global financial markets. In addition,
earnings in local currency are also based upon import
parity prices. Thus, the Company's business is exposed
to foreign exchange fluctuations and interest rate risk.

Internal Controls
RIL has a comprehensive system of internal controls to
safeguard the Company's assets against loss from
unauthorised use and ensure proper authorisation of
financial transactions. The Company has an exhaustive
budgetary control system to monitor all expenditures
against approved budgets on an ongoing basis.
The Company maintains a system of internal controls
designed to provide a high degree of assurance
regarding the effectiveness and efficiency of operations,
the reliability of financial controls and compliance with
applicable laws and regulations as applicable in the
various jurisdictions in which the Company operates.
The organisation is well structured and the policy
guidelines are well documented with pre-defined
authority. The Company has also implemented suitable
controls to ensure that all resources are utilised optimally,
financial transactions are reported with the accuracy and
all applicable laws and regulations are strictly complied.
RIL has established a well laid out policy to maintain the
highest standards of Health, Safety and Environmental
norms while maintaining operational integrity. This policy
is strictly adhered to at all RIL's manufacturing facilities.
The Company has an internal audit function, which is
empowered to examine the adequacy and the compliance
with policies, plans and statutory requirements. It is also
responsible for assessing and
the
effectiveness of risk management, control and

improving

3 4

Enhancing Lives. Energising India. The Reliance Way

governance process. The management of the Company
duly considers and takes appropriate action on the
recommendations made by the statutory auditors, internal
auditors and the independent Audit Committee of the
Board of Directors.

Major Subsidiaries

Reliance Retail Limited

Since its inception in 2006, Reliance Retail Limited (RRL)
has grown into an organisation that caters to millions of
customers, thousands of farmers and vendors. Based on
its core growth strategy of backward integration, RRL
has made rapid progress towards building an entire value
chain starting from the farmers to the end consumers.

Through this year, RRL increased its footprint to more
than 900 stores in 80 cities across 14 states in India.
Keeping in sync with its multi-format store strategy, RRL
added new formats to its spectrum in the last year. RRL
now operates not only 'value' formats such as Reliance
Fresh (neighbourhood store), Reliance Mart (all under
one roof supermarket) & Reliance Super (mini-mart),
which offer a range of products for daily household
usage; but also specialty formats, such as Reliance Digital
(consumer durables & information technology), Reliance
Trends (apparel & accessories), Reliance Wellness
(health, wellness & beauty), iStore (Apple products),
Reliance Footprint (footwear), Reliance Jewels (jewellery),
Reliance TimeOut (books, music & entertainment),
Reliance AutoZone (automotive products & services) and
Reliance Living (homeware, furniture, modular kitchens,
furnishings).

Keeping in line with its commitment of providing
customers with best quality products, RRL has forged
strategic partnerships with world-class companies such
as Marks and Spencer (apparel and accessories), Office
Depot (office stationery), Pearle Europe (optical
products) and Hamleys (toys).

RRL has a direct engagement with over 5 million
customers following a loyalty programme 'Reliance One'
which was offered from the first day of its operation.

During the year, RRL continued to bolster its agri-
business & dairy value chain to support its rapidly
expanding store footprint. By sourcing directly at the
farmer's doorstep, RRL ensures fair and timely payments
to the farmers, reduction in spoilage through its state-
of-the art supply chain and logistics network and high
quality produce to its customers.

In the coming year, RRL will focus on continuously
innovating to enrich customer's shopping experience
through customised offers, private labels and 'value-for-
money' merchandise. RRL is also committed to foster
relationships with partners that will create new avenues
of value enhancement for its customers.

Haryana SEZ

Reliance Ventures Ltd, a subsidiary of RIL, in a joint
venture with Haryana State Industrial Investment
Development Corporation (HSIIDC) had formed a joint
venture company Reliance Haryana SEZ Limited to
develop SEZs.
The project will function as an integrated package with
all the required facilities ensuring sustainable
development of medium and large scale industries and
service activities with sufficient provision for future
growth and expansion.

The project has been planned to enable inclusive growth
thereby enhancing villages. To achieve the above
objectives, the Company has started capacity building
programmes including health, education and technical
training. The Company has adopted three ITIs under the
public-private partnership scheme of the Government of
India.

The Company plans to engage a strategic business
associate to help maximise the potential of the
investments made so far and make the SEZ a truly global
investment destination.

Jamnagar SEZ

The development of Jamnagar SEZ progressed further
with the commissioning of the captive power plant and
water desalination plant. The railway sidings for solid
products were completed during the year. The first SEZ
unit, the crude petroleum refinery and polypropylene
plant (RPL) were successfully started.

Research & Development, Technology Development and
Innovation

The RIL way is to develop its own technologies in select
areas besides being an efficient user and customiser of
available technologies. Research & development (R&D)
and technology development are integral to RIL’s
innovation agenda for achieving growth, business
profitability, sustainability and rural transformation. The
Company has consolidated various research and process
technology functions under one umbrella - ‘Reliance

Reliance Industries Limited

3 5

Technology Group’ (RTG). This consolidation will act as a
catalyst to foster innovation and enhance the interfaces
in both, conventional and emerging technological arenas.

RTG gets external perspectives from members of the
‘Reliance Innovation Council’ (RIC) in shaping its
innovation agenda and informed insights in specific
technology activities. RTG acts as a hub for the RTG
satellite centres at various locations. The high-level
organisational role for RTG includes research &
development (R&D), process engineering, basic
engineering, process/product development, laboratory
and pilot plant operations at various sites, technology
sourcing guidance, technology planning, technical
support to manufacturing and businesses, and new
business development support.

RTG also acts as an enabler for the de-bottlenecking of
manufacturing divisions for enhancing productivity and
for improving the profitability, reliability and performance.
Profit improvement plans and energy management
capabilities are also being enhanced at manufacturing
divisions.

RTG aspires to be ‘the most innovative and globally
connected technology organisation in the businesses and
operations that the Company is in; recognised by its
business partners and employees by creating unique
opportunity and value through technology’. This assures
alignment with business and manufacturing partners to
create physical and intellectual capability to meet RIL’s
business goals through technology development and
application.

In the refining business, the major technology focus is on
improving performance of crude unit, Fluidised Catalytic
Cracker (FCC), cokers and also increasing propylene yield
in FCC among others. In the petrochemicals business, RTG
supports olefin crackers, polymers, fiber intermediates,
aromatics, LAB and polyester. The focus areas in
petrochemicals at present and in future include asset
utilisation, development of specialty materials from
facilities designed for commodities; value addition to by-
product streams and opportunities at the chemicals / oil
interface.

RTG is also working in emerging technologies such as
fuel cells, solar, bio-fuels and gasification of various
feedstocks to improve the eco-system. To meet current
and future needs in a rapidly changing market
environment, RIL is in the process of building technical

capability in areas cutting across various businesses of
the Company.

Some major ongoing / completed projects include:

(cid:2) Heavy crude processing
(cid:2) Alternative applications of FCC spent catalyst
(cid:2) Maximising propylene (PP) and LPG recovery from FCC

products

(cid:2) APC/RTO implementation in all RIL’s major

manufacturing facilities

(cid:2) On-purpose Hexene - 1 & Octene -1 catalyst

(cid:2)

development
n-Hexane, n-pentane and other solvents production
from existing facilities

(cid:2) A new polyethylene product (UHMWPE) process

development

(cid:2) Advance generation PP catalyst and donor obial

Polyester

(cid:2) Low cost antimony catalyst for polyester production
(cid:2) Magic WrapZ using advanced polyester technology

for food/vegetable preservation

(cid:2) Advance Reliance Spinning for increased capacity

from RIL’s polyester plants

(cid:2) More effective FDY finish-polyester
(cid:2) Low pill fibre-polyester

RIL participates in various collaborative projects in India
and overseas to enhance basic research and technological
developments in many areas. It has signed research alliance
agreements with various entities like the IITs (Mumbai,
Delhi & Chennai), The National Chemical Laboratory (NCL)
and University of Mumbai Institute of Chemical
Technology (UICT). RIL’s partnership with Council of
Scientific & Industrial Research (CSIR) under the New
Millennium India Technology Initiatives is gathering
momentum in the area of fuel cells and upgradation of
biofuels by-products.

The patent filing activity has increased substantially in
recent years with 120 patent applications and 71 patents
being granted. RIL is developing and implementing fit-
for-purpose management systems, work processes and
tools for achieving technical excellence; and creating a
high performance environment for people to innovate and
contribute towards organisational and individual growth.

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Enhancing Lives. Energising India. The Reliance Way

Innovation

The contraction of the global economy and the demand
destruction in markets saw many global corporates
struggling to survive. RIL, once again, demonstrated its
ability to innovate by developing initiatives seeking
opportunity in adversity. This will ensure that RIL emerges
even stronger from these crises by maximising value and
embracing extreme efficiency in its operations. At the same
time, utmost importance is given to safety, reliability and
risk mitigation.

The Reliance Innovation Council (RIC), a unique structure,
comprises global thought leaders under the chairmanship
of Dr. R. A. Mashelkar, one of India’s eminent scientists
and a member of the Company’s board. The eminence of
the Council is enhanced by members such as Mr. Mukesh
D. Ambani, CMD, RIL, Prof. C. K. Prahalad, renowned
global strategist, Prof. George Whitesides, Harvard
University, Prof. Jean-Marie Lehn, Nobel Laureate, Prof.
Robert Grubbs, Nobel Laureate and Mr. William Haseltine,
Venture Capitalist.

The first RIC meeting was scheduled during the year. The
RIC’s insights, advice and direction changed paradigms
and has bolstered the Reliance Innovation Movement of
making innovation as a way of life and ensuring that the
next generation of growth is innovation-led.

A series of innovation-led programmes developed by RIL
will make its way into the organisation. The global
economic events have demanded focus on operational
excellence for sustainability. This will lead to RIL building
the next generation of young innovation leaders within
the organisation; creating a robust system for innovation
management; developing and integrating a comprehensive
measurement system for innovation and propagating the
great achievements of RIL internally and outside the
organisation. RIL, through its leadership and talent base
is committed to institutionalising innovation in the
organisation and will work relentlessly to achieve this
ambitious vision.

Clean Development Mechanism

The Company has built in-house capacity to prepare Clean
Development Mechanism (CDM) projects and obtain the
registration and issuance of the same in the form of
Certified Emission Reductions (CERs) from the United
Nations Framework Convention Climate Change
(UNFCCC). In FY 2008-09, United Nations Framework
Convention Climate Change (UNFCCC) has issued 11,938

Certified Emission Reductions (CERs) to RIL. Until March
2009, on a cumulative basis 112,968 CERs were issued to
the company.

Human Resource Development

RIL’s ‘human talent’ today is 24,679. This includes
engineers, management graduates, accountants and other
professionals. The average age is 39 years, which for an
organisation of RIL’s size and age clearly reflects a bias
towards the youth. The company increased its talent pool
by hiring 1500 + engineering talent in FY 2008-09.

Learning and Development

RIL continues to invest in training. In FY 2008-09, 528,647
man-days were dedicated to training delivered through
various different modes both with external and in-house
faculty with a diverse range of programmes for different
employee target audience. This year was significant for
the launch of ‘e-learning’ in a big way across the company.
To facilitate the same, RIL partnered with Harvard and
introduced their globally recognised 42 modules e-learning
programme ‘Harvard Manage Mentor 10’.

The ‘Management Programme for Reliance Engineers’
[MPRE] is a well-entrenched programme, which is
conducted in collaboration with IIM, Bangalore, since
1995. In FY2008-09, two batches comprising 55 employees
underwent this programme. RIL’s relationship with IIM-
Bangalore goes beyond the MPRE programmes. RIL has
tailor-made ‘Management Development Programmes’
(MDP) for the Company’s high growth managers - MDP
Level I and Level II. 82 employees in three batches
underwent training under this programme.

In FY 2008-09, 63 Six Sigma projects were completed
leading to financial benefits (annualised) amounting to
Rs. 67 crore. Presently, 528 Black Belts and Green Belts are
associated in Six Sigma projects at different sites. For the
success of the projects, 1,817 team members and
supervisory personnel are providing active support.

Awards and Recognitions

RIL was recognised by various institutions for its
excellence. Some of the major awards and recognition
conferred on RIL are:

Leadership

(cid:2) Shri Mukesh Ambani received the American India
Foundation’s (AIF), USA, ‘The 2008 Annual Spring
Gala Award’ in 2008.

Reliance Industries Limited

3 7

(cid:2) Shri Mukesh Ambani was elected as Vice Chairman of
the World Business Council for Sustainable
Development’s (WBCSD) Executive Committee in 2008.

manufacturing division got BSC 5Star Rating in
environment certification by BSC, UK with a score of
97.4 percent.

(cid:2) Shri PMS Prasad has been named as the ‘Energy
Executive of the year 2008’ by the London based
magazine, Petroleum Economist in 2009.

(cid:2) Dr. R. A. Mashelkar received ‘Foreign Fellow’ from
Australian Academy of Technological Sciences and
Engineering (ATSE) in 2008.

(cid:2) Dr. R. A. Mashelkar represented India in the ‘I-20 Global
Innovation Leadership Summit’ held at San Francisco,
USA, 2009.

(cid:2)

In recognition of his major contributions /
achievements for the year, South Gujarat Chamber of
Commerce and Industry conferred ‘CEO 2007-08,
Golden Jubilee Trust Award ’ on Shri Hardev Singh
Kohli in 2008.

Corporate Ranking & Ratings:

(cid:2) RIL continues to be featured, for the fifth consecutive
year, in the Fortune Global 500 list of ‘World’s largest
corporations’; ranking for 2009 is as follows:

(cid:2) Ranked 264th in terms of sales
(cid:2) Ranked 117th in terms of profits

(cid:2) RIL is ranked 75th in 2009, in the FT Global 500 (up

from previous year’s 80th rank).

(cid:2) RIL won the Golden Peacock Global Award for
Excellence in Corporate Governance for the year 2008.

(cid:2) RIL is rated as 15th most innovative company in the
world, climbing 4 positions, in a survey conducted by
Business Week and Boston Consulting Group. This
survey of around 3000 global CEOs is done to rate the
world’s top 50 most innovative companies.

(cid:2)

Jamnagar Manufacturing Division bagged the
‘Refinery of the Year Award for 2008’, for second
successive year from ‘Petroleum Federation of India’.

Health Safety & Environment

(cid:2) Dahej Manufacturing Division received the ‘Greentech
Safety Award 2009 – Gold’ from the Greentech
Foundation for excellence in safety practices.

(cid:2) Hoshiarpur Manufacturing Division received BSC 5-
Star Rating in Health & Safety certification by BSC,
UK, with a score of 94.2 percent. Further, the

(cid:2) Hoshiarpur Manufacturing Division bagged Punjab
Safety Award for two consecutive 2007-08 & 2008-09.

(cid:2) Hoshiarpur Manufacturing Division won ‘Hong Kong
Green Level Certificate’ for its PET recycling initiatives;
the division recycled PET bottles of 30 tons per day.

(cid:2)

Jamnagar Manufacturing Division received ‘Platinum
Award’ for excellence in environment management in
refinery and chemical sector, respectively, from
GreenTech Foundation, India.

Jamnagar Manufacturing Division received ‘G-Cube
Award for Good Green Governance’ from Shrishti.

(cid:2) Silvassa Manufacturing Division achieved 5-Star
Rating in Safety & Health with a rating score of 95.1%
by British Safety Council (BSC), UK, and was also
awarded the ‘Sword of Honour – 2008’ by BSC, UK.

(cid:2) Silvassa Manufacturing Division achieved 5-Star rating
in environment with 98.76% by BSC, UK- highest
percentage points in the world awarded by BSC so far
in 95 countries. Further, Silvassa Manufacturing
Division recognised for Golden Globe Award in
Environment by BSC, UK.

Training and Development

(cid:2) Hazira Manufacturing Division’s ‘Truckers Safety
Programme’ and ‘Workers Safety Programme’ received
‘Excellence in Practice Award’ from American Society
for Training & Development (ASTD) in the training
management category.

(cid:2) Patalganga Manufacturing Division was selected to
receive an ‘Excellence in Practice Award’ from ASTD
for the case study ‘Learning Function - A catalyst to
Organisational Change for Global Leadership’.

Quality

(cid:2) Allahabad Manufacturing Division’s two quality circle
projects were adjudged ‘par excellent’ in the annual
quality control exhibitions organised by National
Centre for Quality Control (NCQC) 2008.

(cid:2) Dahej Manufacturing Division won the ‘Ramkrishna
Bajaj National Quality Performance Excellence Trophy
2008’.

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Enhancing Lives. Energising India. The Reliance Way

(cid:2) Dahej Manufacturing Division’s two quality circles:
PVC and HDPE won the ‘Excellence Award’ at the 22nd
National Convention.

(cid:2) Hazira Manufacturing Division won the ‘Indian
Chemical Council Award’ for water resource
management in chemical industry.

(cid:2) Hazira Manufacturing Division was bestowed
‘International Star of Quality Award - 2008’ (Platinum
Category) at Geneva for institutionalising the TQM
QC100 Quality Principles.

(cid:2) Hazira Manufacturing Division’s Quality Control Circle
won the International Exposition on Team Excellence
(IETEX) Gold Award 2008 at Singapore.

(cid:2) Hazira Manufacturing Division won the second prize
at International Quality & Productivity Centre QPC
Asia-Pacific Summit-2008 (Singapore) by ‘Cobalt
recovery improvement in Catalyst Recovery Unit’s Six
Sigma project.

(cid:2) Hazira Manufacturing Division excelled at the regional
and national convention on quality circles held at
Vadodara with all its 9 participating teams getting
various recognitions for their QCC / Gemba Kaizen
Activities.

(cid:2) Hazira Manufacturing Division was conferred, at
France, the highest recognition of 5 Star rating for a
non-European organisation by the European
Foundation for Quality Management (EFQM)
(Brussels), the Mecca for Business Excellence in
Europe under the aegis of Global Excellence Model
(GEM) Council.

(cid:2) Patalganga Manufacturing Division has won
international award in the category ‘Best Process
Improvement in Service & Transaction Project’ through
DMAIC of Six Sigma. This summit was organised by
International Quality & Productivity Centre, London
in 2008.

Energy Conservation / Efficiency

(cid:2) Dahej Manufacturing Division bagged the ‘Excellence
in Energy Award 2008’ for energy conservation
initiatives from Confederation of Indian Industry (CII).

(cid:2) Dahej Manufacturing Division bagged the ‘Most
Efficient Unit Award 2008’ for efficiency in water
management at the site from CII.

(cid:2) Hazira Manufacturing Division won the ‘Golden
Peacock Award for Combating Climate Change – 2008’
from Indian Chemical Council Award for excellence in
energy conservation and management.

(cid:2) Hazira Manufacturing Division won the ‘CII National

Award in Energy Management 2008’.

(cid:2)

Jamnagar Manufacturing Division received the
National Award for ‘Excellence in Energy Management’
for the fifth time from CII.

Technology, Patents, R&D and Innovation

(cid:2) Hazira Manufacturing Division won the ‘Indian
Chemical Council Acharya PC Ray Award 2008’ for
development of in-house technology of high
performance catalyst for external donor.

(cid:2) Hazira Manufacturing Division won the ‘Indian
Chemical Council Merit Award 2008’ for Development
of Indigenous Technology for Para Di Ethyl Benzene.

(cid:2) Hazira Manufacturing Division won the ‘Golden
Peacock Innovation Award -2008’ from Institute of
Directors at London for catalyst innovation.

Information Technology

(cid:2)

‘Bronze Winner - Excellence in Information Integrity
(EII) Award’, for profit category, from Information
Integrity Coalition (IIC), USA, in 2008.

‘The NASSCOM - CNBC TV 18 IT User Award’, in the
manufacturing sector category, in 2008.

‘Indian Most Admired Knowledge Enterprise (MAKE)
Award’, KNOW Network, USA, in 2008.

‘Global CIO 50 - IT Leaders Changing the Business
World’ by Information Week, USA, in 2009.

Corporate Social Responsibility

(cid:2) According to the Nielsen India Corporate Image
Monitor 2008, a study designed to measure people’s
perceptions of the image and reputation of India’s
leading companies, RIL is one of the most admired
companies by stakeholders for its CSR initiatives.

Sustainability Report

(cid:2) Amongst ‘India’s 10 largest companies by market
capitalisation’, International Finance Corporation (IFC)
has rated RIL’s Sustainability Report’s reporting
quality as “good” - the highest rating given for this
report, in 2009.

Reliance Industries Limited

3 9

Report on Corporate Social Responsibility

While enhancing lives, Health, Safety and Environment
(HSE) continue to be high priority areas at RIL. In line
with the Company’s vision of becoming the world’s most
healthy company, RIL focuses on achieving excellence in
occupational and personal health of employees at all
manufacturing divisions as well as offices.

Safety of all persons and the pursuit to achieve world
class level of operational excellence in safety continues
to the major focus area of the company. The top
management devotes considerable time, resources and
efforts to reemphasise safety as a core value in all its
employees and strengthen the safety management
systems.

In its pursuit of excellence towards sustainable
development to go beyond compliance and become world
class in environmental management arena, RIL has further
strengthened its management framework with defined
structures, roles and responsibilities, group standards,
audits and training.

In Energising India, RIL believes in an inclusive
sustainable growth approach. The Company in its
Sustainability Report appeals to its stakeholders to serve
the cause of environment protection and contribution to
reduction in energy consumption to give benefits in a
sustained manner not only to the present generation but
also to the future generation when energy resources are
expected to dwindle.

HSE at Manufacturing Divisions

Health

RIL has set up state-of-the-art Occupational Health
Centres (OHC) at all manufacturing locations and major
offices. Besides emergency medical services, the OHCs
also offer preventive, promotive and curative health
services to its employees. These OHCs are equipped with
state-of-the-art diagnostic and therapeutic equipment and
are manned by qualified occupational health specialists.

All RIL employees, irrespective of the nature of their work
or location, undergo regular periodic medical examinations.
The company’s occupational health departments are also
in the forefront to prevent lifestyle diseases such as heart
problems, hypertension, diabetes and communicable
diseases such as malaria, tuberculosis and HIV / AIDS
through a series of regular health awareness sessions,
daily health tips and personal counselling.

Dhirubhai Ambani Occupational Health & Family
Welfare Centre was commissioned at Jamnagar Township
in FY 2008-09. This multi-speciality hospital is equipped
with 24 beds with ICU, labour room, surgical facilities with
modular operation theatre and a special burns unit. Further,
RIL has also provided full-fledged modern hospitals at its
other major employee townships at Vadodara, Nagothane
and Patalganga. These hospitals provide curative health
services to employees and their family members.

CASHe

RIL has touched lives with innovative health risk
prevention programme for the last six years, at all
manufacturing locations titled Change Agents for Safety,
Health & workplace Environment (CASHe) Programme.
This programme focuses on workplace improvements to
promote healthy workplaces and reduce health & safety
risks.

Safety

RIL has made significant progress in workplace and
personnel safety by continuing to underpin the company’s
safety programme: ‘Safety Observation Process’ (ReSOP).
The programme focuses on the behaviour safety aspect
of all personnel. The safety programme was further
strengthened by implementing world-class standards
stipulating the minimum expectations of safety critical
activities.

A key area that RIL is focusing on is ‘Process Safety
Management’ (PSM). As part of the strategic partnership
with DuPont Safety Resources, RIL has built capabilities
within the company and developed in-house experts in
various facets of PSM. ‘Process Hazard Analysis’ at
various plants was initiated to address and reduce the
process safety risks. Further, RIL has developed and
implemented various metrics to monitor the process safety
performance of company’s manufacturing divisions.

Incident investigation, contractor safety management,
management of change and auditing are other key areas
in PSM where the company is focusing and strengthening
the management processes. In addition to building strong
safety management systems, RIL has undertaken special
initiatives like ‘Project Health Check’. The objective is to
reduce safety risks and prevent injuries in the short-term
by identifying and addressing the safety issues requiring
immediate attention.

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Enhancing Lives. Energising India. The Reliance Way

Environment

HSE at E&P Business

RIL has further integrated its environment performance in
the overall business plan. The management system
approach was upgraded with DuPont resources and
integration of ISO: 14001 EMS, ISO: 9000 QMS and ISO:
18001 OSHA management systems. In FY 2008-09, RIL
undertook an exercise to establish world class corporate
environmental standards. RIL environmental standards on
discharge of gases to atmosphere, emissions from
stationary sources, effluent discharge, waste management,
ground water protection, green card performance rating
system, environment performance evaluation & reporting,
covering all major environmental aspects was released
during the year. To ensure effective implementation of the
environment standards, an exercise to make independent
audit protocol and site-related standard operating
procedures was initiated.

RIL gives top priority on maintenance and performance
improvements of all pollution abatement facilities; like
effluent treatment plants (ETP), air emission abatement
units and waste disposal facilities. A state-of-the-art water
treatment plant of 18,000 m3/day capacity was installed
for the domestic water supply to township and refinery at
Jamnagar. A trial for the re-utilisation of Polyethylene
Terephthalate (PET) waste into Polyester Fibre Fill (PFF)
recycling plant was successfully carried out at Hoshiarpur
Manufacturing Division. Vermi-compost of waste is being
carried out at manufacturing divisions located at Vadodara,
Hazira and Naroda. A significant improvement in re-use of
energy content of waste by eco-friendly fuel briquette
and biogas resulted in about 19.18 % increase in direct
renewable energy generation compared to previous year.
To reduce water dependence from natural sources,
rainwater harvesting is being practiced at most
manufacturing divisions.

RIL views environment audit as an important tool for
improvement opportunity. The company has more than 95
‘Trained Lead Auditors’ for ISO 14001:2004. They perform
internal environmental audits at regular interval. The third
party environment audits conducted during the year
include; statutory audit by State Pollution Control Board
(SPCB) recognised auditors in the state of Gujarat; ISO-
14001:2004 audits by the accreditation agencies and
environment audit by British Safety Council, UK, at
manufacturing divisions located at Nagothane,
Hoshiarpur and Silvassa.

The E&P business carried out its offshore exploration,
drilling and development operations in a safe and
environmentally acceptable manner. Emphasis was on
updating E&P HSE Management system by engaging the
services of Shell Global Solutions, Singapore. As part of
this drive towards benchmarking with international majors,
the E&P business has updated its documentation with
the release of HSE MS Manual with system procedures,
standards and checklists.

The E&P business established a HSE steering committee
at the corporate level and a site-specific steering committee
at the project level in order to drive the HSE culture down
the line. The emphasis remains on enabling faster response
for emergencies by validating the response plans and
conducting frequent mock drills under the guidance of
internationally reputed consultants. Communicating the
HSE requirements to the workforce and knowledge sharing
was enabled through development of a HSE portal
accessible to every worker of E&P business. All incidents
are reported through the in-house developed Incident
Reporting and Investigation software called Safety Health
Environment Incident Management System (SHEIMS).

With the new Oil Industry Safety Directorate’s (OISD)
Offshore Regulations coming into force from June 2008,
RIL became the first operator to get the consent for
operations for both Floating Production Storage and
Offloading (FPSO) and Control Raiser Platform (CRP) after
complying with all the required compliance requirements.

Green belt development activities commenced with plans
for plantation of 10,000 tree saplings of different fruit
varieties covering an area of 100 acres. A mangrove
nursery was developed with over 40,000 saplings raised
and planted at Kakinada. With the involvement of MS
Swaminathan Research Foundation, a 10-hectare degraded
mangrove is being restored near an eco-sensitive zone at
Kakinada.

RIL has laid more emphasis on rainwater conservation
scheme with construction of storm water retention ponds
to collect all the rainwater from the Onshore Terminal
premises for re-use in the green belt. Effluent- treated water
in the plant is being used for green belt development.

Reliance Industries Limited

4 1

Reporting on triple bottom-line performance

RIL commenced reporting, annually, on its triple-bottom
line performance, from FY 2004-05. All its sustainability
reports are externally assured and are GRI checked. The
maiden report received ‘in-accordance’ status from GRI
and all subsequent reports are ‘G3 Checked A+’ application
level reports. From FY 2006-07, in addition to referring GRI
G3 sustainability reporting guidelines, RIL refers The
American Petroleum Institute / The International Petroleum
Industry Environmental Conservation Association’s (API/
IPIECA) guidelines and The United Nations Global
Compact (UNGC) principles and has aligned the
sustainability development activities with the focus areas
of The World Business Council for Sustainable
Development (WBCSD).

Social Responsibility and Community Development

Social welfare and community development is at the core
of RIL’s Corporate Social Responsibility (CSR) philosophy.
The Company’s strategy is to have close and continuous
interaction with the people and communities around RIL’s
manufacturing divisions to bring qualitative changes and
support the underprivileged. RIL contributes in the areas
of health, education, infrastructure development (drinking
water, improving village infrastructure, construction of
schools etc.), relief and assistance in the event of a natural
disaster and other social initiatives.

Education

Education is one of the major thrust areas of RIL’s CSR
interventions. A network of 10 schools caters to over 14,000
students spread across geographies in India. To encourage
school children from neighbouring villages in their learning
process, RIL’s CSR cells of its manufacturing divisions
and E&P blocks work zealously, round the year to support
educational requirement of the community / schools in
the neighbouring region.

While a computer has become an integral part of our lives,
it is still away from the reach of students from Indian
villages. RIL has taken a lead role in promoting computer
literacy programme at village level. The company provides
computers in numerous schools and community halls in
villages near its manufacturing divisions.

In partnership with a local NGO in Surat, RIL has developed
a fully functional Disabled Welfare Centre - a school for
the physically challenged children - for bringing self-
sufficiency to more than 800 physically challenged children

from the slum areas of Surat. Children are supported with
travel facilities from their houses in buses. The
Programme’s objective is to give a sustainable livelihood
by becoming contributing members and not dependants.
With RIL’s support, this school has become the first of its
kind in India to get permission to impart formal education
for class XI and XII. RIL also provides wheel chairs, a
medical centre and has also initiated development of a
hostel and hospital in the school premises.

Project Jagruti, the project to address Dyslexia, is now
maturing into a voluntary participation-based model
wherein teachers, doctors, parents, NGOs, education
societies and the state government of Gujarat are creating
a Sustainable model for sensitising and fighting learning
disabilities amongst children. Linda Mood Bell model was
adopted for diagnosis of Dyslexia and fully piloted in J.H.
Ambani School with 81 students undergoing treatment.
Seeing the success of this programme, the same is being
replicated in all schools in Surat.

To encourage the poor and brilliant students to pursue
higher studies, a novel scheme – ‘Reliance Dhirubhai
Ambani Protsaham’ was launched in East Godavari District
by the Hon’ble Chief Minister of Andhra Pradesh, in
Academic Year (AY) 2008-09. The scheme facilitates the
poor meritorious students in Secondary School Certificate
(SSC) examination to get admissions in colleges of their
choice and also requisite coaching for different competitive
examinations on par with other students.

Further, RIL renovated classrooms of government schools
in Gadimoga and Bhairavapalem region and distributed
notebooks, uniforms and bags to children of schools from
this region. The initiative includes supply of notebooks
and uniforms to children from the region every year. RIL
also participated in several education awareness initiatives,
such as, 100 percent literacy programme in the Yanam
region.

Community Health Care

RIL has developed Community Medical Centres near most
of its manufacturing divisions, which provide
comprehensive health services covering preventive,
promotive and curative health care services to the
community from neighbouring villages. Manufacturing
divisions conduct regular health check-ups for school
children in schools of their respective neighbouring
regions. Doctors advise children and their parents on
various health care issues and personal hygiene.

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Enhancing Lives. Energising India. The Reliance Way

A unique joint initiative of RIL and National Association
of Blind, Project Drishti has undertaken over 7,000 free
corneal graft surgeries for the visually challenged Indians
from the underprivileged segment of the society. It is the
largest corneal grafting surgery project enabled by a single
corporate entity in India.

The initiative to combat TB HIV / AIDS is a unique public-
private partnership programme - between the government,
NGOs, several agencies and RIL. It extends from creating
awareness to providing care, support and treatment
including free of cost treatment to those who cannot afford
the same. Hazira Manufacturing Division’s DOTS HIV /
AIDS Centre is one of the largest Anti-Retroviral Treatment
Centre (ART Centre) in the country. Manufacturing
divisions at Jamnagar and Patalganga too have ART
Centre facilities. The initiative was expanded to other
manufacturing divisions; activities are largely in the
advocacy and awareness area.

Jamnagar Manufacturing Division launched ‘Project
Balkalyan’ on Children’s Day, with an objective to provide
nutritional support to children affected with HIV infection.
Nutritional kit is distributed to all HIV positive children
when they visit the Centre for monthly follow up. Hazira
Manufacturing Division, through Reliance Ladies Club
(an association of spouses of RIL managerial employees)
has a similar ongoing child adoption programme at Hazira
to take care of nutritional requirement of HIV positive
children.

The Primary Health Centre (PHC) at Dahej, adopted by
RIL in FY 2006-07, was adjudged as ‘Best PHC’ for FY
2008-09 amongst all other PHCs in Bharuch district. The
PHC caters to the community health needs under National
Rural Health Mission Programme and has done a great
deal of work in Malaria Surveillance Programme in all the
23 villages. In 2004, RIL established the PHC at Gadimoga.
The PHC has six member medical staff with all the amenities
such as two-bed nursing room. Medicines are offered free
of cost. Further, RIL runs two sub-centres of the PHC at
Bhairavapalem and Laxmipathipuram.

Dhirubhai Ambani Hospital at Lodhivali, Maharashtra
continues to play a significant role in improving the quality
of life in surrounding communities. It extends prompt and
specialised services to the Mumbai-Pune highway
accident victims. Trauma patients are provided free life-
saving treatment. Besides taking care of hospitalization
requirements, the hospital provides poor patients and

senior citizens subsidised treatment - both in the
outpatient and in-patient departments.

A well-equipped community medical centre with four
observation bed facility at Jamnagar continues to be
offered free-of-cost, round the clock with comprehensive
health services. .

Manufacturing divisions offer free medical services
including free medicines to the neighbouring villages.
Mobile Van Clinics – ‘Health-On-Wheels’, specially
designed mobile dispensaries equipped with a doctor
accompanied by a nurse, move to neighbouring villages
on a scheduled basis all through the week.

The company’s employees organise and participate in
blood donation camps every year across manufacturing
divisions and offices.

Hoshiarpur Manufacturing Division provides round-the
clock free ambulance service - ‘Highway-Rescue’, on
National Highway No. 70, a radius of 20 km from Punjab to
Himachal Border with heavy vehicular traffic, for road
accident victims. The yeoman service saves over 50 lives
annually.

Safety

Manufacturing divisions have initiated structured HSE
education programme for the numerous industries located
in the neighbouring region. To create awareness on safety
among the people in the neighbouring industrial zone,
road shows, safety-yatra and competitions were organised
during the year.

Rural Infrastructure Development

Reliance Rural Development Trust (RRDT), as a
Corporate NGO, continued its activities in a committed
way by constructing 14 check-dams; four of them in
Jamnagar district. Check-dams are for conserving water
and raise water tables of the surrounding areas. Besides
these, RRDT also constructed 30 drinking water facilities
in the villages of Junagadh (09), Patan (08), Porbandar
(04) and Rajkot (09) districts. In all, RRDT completed 489
various facilities at a cost of Rs. 19.74 crore across Gujarat
during the year. The facilities include 97 cement concrete
roads, 348 anganwadis, 30 drinking water facilities and 14
check dams. On the whole, RRDT has completed 5,725
facilities in 5,528 villages of Gujarat across the length and
width of the state since its inception in 2001 in compliance
with RIL’s commitment to the Government of Gujarat. Hazira

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4 3

Manufacturing division in partnership with local NGOs
and also part of RRDT’s initiatives, is working zealously
for bettering rural life.

RIL in partnership with Parivartan, a Gujarat-based NGO
accredited with United Nations, has initiated several
community development programmes at Naroda. RIL
supports the Lions School, an NGO run by Lions Club of
Naroda Charitable Trust located in GIDC Naroda, imparts
quality education to the wards of labourers residing in
and around GIDC Naroda.

Jamnagar Manufacturing Division contributed
substantially and liberally to several community activities.
The manufacturing division contributed to Sardar
Vallabhbhai Patel Memorial Society in FY 2008-09 for
creating a memorial in the name of the architect of the
Indian Union, at Old Raj Bhavan, Shahi Baug, Ahmedabad.
Further, it also contributed to Sandipani Rachnatmak
Abhigam Trust for projecting culture, business and
progress of Gujarat.

Jamnagar Manufacturing Division undertook a programme
to give a face-lift to a neighbouring village, Moti Khavdi.
The initiative, in support of Gujarat State Government’s
‘Nirmal Gram’ programme, comprised construction of a
modern entry gate, sweeping of main village roads and
garbage collection, public toilet blocks.

For providing better transportation, sanitation and
hygienic conditions, internal cement concrete roads were
laid in all the hamlets of Gadimoga and Bhairavapalem
Gram Panchayats. Drainage facilities are also provided,
on need basis, depending on the geographic conditions
of the village.

Further, construction of fish jetty-cum-drying-platform
near Darialathippa is in progress for the benefit of 500
fishermen families. RIL renovated the fishermen
community hall at Kakinada for enabling them to utilise
the same for their social functions and constructed a burial
ground for the usage of people of Darialathippa village.

Water Relief

Jamnagar district is a water-scarce area. RIL supplies round
the year drinking water to Meghpar and Padana villages
adjacent to the refinery through tankers. Drinking water
was also supplied to Moti Khavdi, Kanalus and Navania
villages through tankers during acute shortage of water
in summer months in FY 2008-09.

Considering the problem of scarcity of drinking water
being experienced by the people of Gadimoga, drinking
water was supplied through private water tankers for the
last four years. To offer a permanent solution to the people
from Gadimoga and Chinavalasala villages, RIL constructed
a summer storage water tank and overhead reservoirs
under Reliance Rural Water Supply (RWS) scheme.

Dahej Manufacturing Division continues to provide
drinking water to its neighbouring villages. It has
undertaken a job of renovating reservoir at Luvara village.
The division in working with Water and Sanitation
Management Organisation (WASMO) of Gujarat Water
Supply and Sewerage Department to create drinking water
distribution system through pipeline in neighbouring
villages of Dahej.

Livelihood Support Training

RIL sponsored self-help groups (SHGs) empower women
from the underprivileged segment through various
employment oriented training and skill development
programmes. These include training for nursing assistants,
light motor driving and making bamboo articles. In FY
2008-09, Nagothane Manufacturing Division facilitated
formation of 28 SHGs taking the total number of SHGs
that the division has facilitated formation, from 2005 till
date, to 100.

RIL, through its retail initiative - Reliance Fresh stores
helped in the sale ‘Hatsadi Tandul’. To help farmers buy
correct and high yield variety of paddy seeds, an
educational programme was organised at MADER
Foundation’s office for farmers.

In the Gadimoga region, RIL conducts several livelihood
support training programmes, such as making eco-friendly
paper plates, agarbattis etc. Further, RIL provided callipers,
wheel chairs and other supportive equipments to the
physically challenged with the support of Disabled Welfare
Department of State Government of Andhra Pradesh.

The Polymer business continues to conduct technical
training and workshops for plumbers on advanced
technology in plumbing systems with PPR pipes. Modern
techniques of welding to prevent leakage & ensuring
hygienic and safe water to the users were taught during
the training session.

Vadodara Manufacturing Division continues to support
and work with Society for Village Development in

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Enhancing Lives. Energising India. The Reliance Way

Petrochemicals Area (SVADES), an NGO that binds the
industry and the rural community for socio-economic
development. SVADES works in 40 villages near Vadodra,
Gujarat covering over 2 lakh people. SVADES focuses on
skill development training and education. HIV AIDS
awareness, hygiene and sanitation are some of the
initiatives that SVADES undertook during the year.

Enhancing agricultural techniques and cost effective
packaging solutions for farmers

The Polymer business division conducted several
technical programmes and participated in farming-related
exhibitions to propagate advanced technologies in the
production, handling, storage and distribution agricultural
products. These techniques use plastic products to
enhance productivity of land, water and plant nutrients.
Use of Leno bags made out of PP was extensively
promoted amongst farmers, which reduced handling
losses in potato, onions, fruits and vegetable products.

Similarly, micro-irrigation techniques were widely promoted
in partnership with the Ministry of Agriculture in the Centre
as well as in States. These initiatives were carried out
through National Committee on Plasticulture Applications
in Horticulture (NCPAH).

Recycling - energy and wastages

Nearly 400 hectares of land is under plantation at
Nagothane Manufacturing Division, resulting in
generation of significant biomass. To avoid fire hazard
from the dry biomass that is generated here, and at the
same time to utilise the same as an alternative energy
source, the division commenced a project in 2007 to covert
the biomass into coal. The technology of pyrolysing the
biomass to coal was taken from a voluntary organisation
called Appropriate Rural Technology Institute, Pune
(ARTI). The coal produced from biomass is being sold in
the market by ARTI. In FY 2008-09, total biomass coal
produced and sold stood at 1,550 Kg. For ‘propagating
Sarai cooker’, 16 programmes were organised during the
year.

To help Surat district handle the 1,200 MT waste generated
daily, RIL, undertook a unique initiative in partnership
with SMC, a local NGO. Rag picking women recycle the
waste by converting the garbage collected into land filling.
The programme provides, women a sustainable livelihood
and it also helps the city to manage its litter in a value
added manner. The programme targets to engage

rehabilitate and provide sustainable livelihood to 17,500
rag pickers living in 350 slum areas around Surat.

Polyester is completely recycled, while plastic goes into
road and fuel manufacturing. In a simple and scientific
method of disposing plastic waste and to add value by
improving the quality and life of roads, low-end plastic
waste is blended with bitumen. This method replaces about
8-15 percent of bitumen while offering better functional
properties in the service life of the roads constructed. It
also results in cost reduction. Indian Centre for Plastics in
the Environment (ICPE) has taken initiatives to popularise
this technology throughout the country. RIL has adopted
this method in its manufacturing divisions at Hazira and
Vadodara.

Non-woven products

Several events, in association with various chapters of
Indian Medical Association (IMA), were organised to
increase awareness of the advantages of using PP non-
woven medical disposables. With on site-demonstration
and hospital visits, RIL demonstrated the cost advantage
and effectiveness of non-woven disposables. These
substantially reduce the risk of spreading highly
contagious disease. They also eliminate washing cycles
in which chemicals are used to make fabrics thereby
protecting the environment. Not only do PP non-woven
disposables offer better hygiene but they are also cost
effective and require lower inventories.

Environment Care Advocacy

RIL continues to support ICPE in conducting educational
and awareness programmes on plastic waste management
in major cities and towns. These programmes help school
children understand proper disposal methods of plastic
wastes and the importance of recycling.

Patalganga Manufacturing Division addressed the
community concerns of its neighbouring region which
include driving-training for drivers transporting hazardous
chemicals, awareness lectures on environmental systems
and technologies to industry and institutions, support to
common Effluent Treatment Plant (ETP) for Patalganga
Rasayani Industrial Association (PRIA), and awareness
campaign for all schools in the region on the importance
of common ETP and its importance to Environment.

Naroda Manufacturing Division continues to fog,
fumigate and spray disinfectants at stagnated water points

Reliance Industries Limited

4 5

to avoid epidemics in surrounding areas and clusters in
and around the manufacturing division.

Mid-day Meal Programme

Kitchen sheds were provided for operating the mid-day
meal scheme in a better and healthy environment
benefiting children from villages. Additionally, to provide
hygienic environment in the schools of Gadimoga and
Bhairavapalem, toilets for boys and girls with running
water facility were provided.

Relief Activities

A devastating fire destroyed the houses and meager
belongings of many poor families in Babdeo village.
Nagpur Manufacturing Division’s Reliance Employees
Ladies Club distributed essentials like food grains and
utensils to the affected families.

RIL rehabilitated Katkarwadi, a tribal hamlet near
Nagothane Manufacturing Division. RIL funded the
rehabilitation expenditure, which is incurred by the
Collector Raigad through the fund provided by Nagothane
Manufacturing Division. Likewise, Nagothane
Manufacturing Division sponsored the water filter plant
for Kadsure village resolving the longstanding problem
of unfiltered water high on turbidity, which posed a serious
health issue to the villagers.

Wildlife, Animal Care

To address the problem of deaths of the Asiatic lions and
their cubs from falling in open wells in Gir forest, Jamnagar
Manufacturing Division constructed parapet walls on the
host of open wells in Gir forest area. Parapet protection
walls on as many as 1,200 open wells were constructed in
FY 2008-09.

Heritage Care

Jamnagar unabatedly keeps on supporting the
development at mythological town of Dwarka. In order to
further improve infrastructure and aesthetics at Dwarka, a
cement-concrete road and a befitting traffic circle were
constructed. RIL gave financial aid to Shardapeeth,
Dwarka to support its spiritual and educational activities.

Supporting Indian Culture

RIL took the lead two years ago to form a voluntary body
- Gujarat Industries Navratri Festival Society (GINFS)-
comprising several corporate houses of Gujarat to support

and celebrate the Navratri festival at Ahmedabad. Besides
GINFS, RIL supported about a dozen garba troupes and
organisations in Jamnagar, Rajkot and Ahmedabad.

Promoting Sports and Sportspersons

RIL has over the years, nurtured and promoted many star
prodigies in Cricket, Billiard and Chess. In fact, RIL’s
commitment to cricket spans to the last millennium when
it sponsored Cricket World Cup in 1987 - ‘The Reliance
Cup.’

Besides promoting cricket on the global front, RIL actively
nurtures young and talented cricketers.

The Indian Premier League (IPL) offered yet another
opportunity to support and sponsor cricket. RIL bagged
the IPL franchise for the city of Mumbai. Mumbai Indians
(MI), the Mumbai team, is among the most followed cricket
teams in the IPL. This is yet another step to help make
India a world-beater in sports. This effort, which will foster
talent scouting and development of cricket, is RIL’s
contribution in creating a healthy sporting ecosystem.

Real Indian Heroes

Real Heroes is an initiative of CNN-IBN in partnership
with RIL, which honours the silent warriors of change,
ordinary people who have rendered extraordinary services
for the betterment of others. Real Heroes is an annual
celebration that felicitates and recognises the triumph of
the human spirit. Now in its second year, this initiative
honours the real-life heroes of our society who have
worked hard to make a difference for others and have
served a cause in their own inimitable way thereby setting
an example for a billion people. For their contributions, all
24 Real Heroes are honoured and felicitated at a grand
event in Mumbai with a trophy and a cash prize of Rs. 5
lakh each.

UAA-Dhirubhai Ambani Lifetime Achievement Award

The first UAA-Dhirubhai Ambani Lifetime Achievement
Award jointly promoted by UDCT Alumni Association
(UAA) and RIL was awarded to Professor George
Whitesides of Harvard University, USA, for his innovative
and outstanding contributions to chemical sciences in
December 2006. In June 2008, this one-of-its kind award
was bestowed upon Professor Robert H. Grubbs, (a Nobel
laureate Chemistry, 2005) - a Victor and Elizabeth Atkins
professor of chemistry at California Institute of
Technology, USA. The award was for his innovative and

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Enhancing Lives. Energising India. The Reliance Way

outstanding contributions to science and engineering
having wide ramifications.

This Annual Award was instituted in memory of India’s
pioneering industrialist and RIL’s founder chairman, Shri
Dhirubhai Ambani, to recognise outstanding contributions
of scientists in the field of Chemical Sciences. This award,
carrying a purse of US $20,000 and a citation, is the highest
Award for Scientific Achievements given by an Indian
entity.

Reliance Dhirubhai India Education Fund

RIL-Stanford Graduate School of Business announced the
creation of the ‘Reliance Dhirubhai India Education Fund’
to support promising Indian students with financial need
in obtaining an MBA at Stanford in April 2008. Each year,
Stanford Business School may award up to five Reliance
Dhirubhai Fellowships. Reliance Dhirubhai Fellows will
receive full financial support for the two-year Stanford
MBA Program.

Dhirubhai Ambani Foundation

Dhirubhai Ambani Foundation (DAF) pursues
philanthropic activities to promote national welfare and
social well-being. Its main thrust areas are education and
public healthcare. Till date, the foundation has awarded
scholarships to over 5,900 students including 668
physically challenged and 171 children from the families
of Kargil War martyrs.

Smt. Nita Ambani, President, Dhirubhai Ambani
Foundation, was conferred the ‘Giants International
Award’ in recognition of her outstanding contribution in
the field of education.

Reliance Institute of Life Sciences (RILS), aims to
develop competencies to meet the need of bio-technology
sector. The long-term goal of RILS is to establish a
University focused on Life Sciences and grant post
graduate and doctoral degrees. An application has been
filed with the University Grants Commission (UGC) for
the status of a ‘De Novo Deemed to be University’.

Sir Hurkisondas Nurrotumdas Hospital & Research
Centre (HNHRC) is a tertiary-care modern hospital
equipped with all super speciality departments. The
hospital has many firsts to its credit including introduction
of departments like Sonology and Immunocytobiology,
the latter becoming the life-line of many hospitals for their
work in renal transplants, a field in which the hospital is a

pioneer. The hospital’s old building is a declared heritage
structure and the façade represents colonial architecture.
Preserving the heritage charm, the hospital was upgraded
to include facilities, which are a must for modern hospitals.
Upgrading of infrastructure in both diagnostic and
therapeutic areas has received top priority.

RIL, through DAF contributes substantial amounts to
strengthen infrastructure and scientific research potential
of Sir Hurkisondas Nurrotumdas Medical Research
Society (HNMRS). With improved infrastructural facilities,
several high-budgeted research projects of considerable
relevance to the community are on hand. Most of the
studies have the potential of translating into tangible
benefits, which will enhance humanity.

Dhirubhai Ambani International School (DAIS)

The school year 2008-09 was yet another sparkling
milestone in Dhirubhai Ambani International School’s
invigorating journey since its commencement in 2003.
DAIS’ overarching objective is to enable children discover
the world in enjoyable ways, while imparting values and
attributes that would stand them in good stead and help
lead productive and fulfilling lives. This goal of a holistic
education can be best achieved by providing education
opportunities that synthesise internationally acclaimed
pedagogical practices with India’s rich educational
heritage. These are the inspirations for the school’s
offerings across classes - lower kindergarten (LKG) to XII
- the Indian Certificate of Secondary Education (ICSE),
the International General Certificate of Secondary
Education (IGCSE) and the IB Diploma (IBD) programmes.

The academic achievements of DAIS students continue
to be very satisfying. The average score achieved by the
IBD Class of 2008 is 36.26 (out of the maximum possible
score of 45), whereas the world average is 29.57 points. In
the third batch of IGCSE students who took the
examinations in 2008, 45.14% of all grades achieved were
A*s (95% or better); and 85.41% were A’s (85 to 94%) and
above. Some of the students are national toppers in several
subjects and some have topped the world. In the
examinations held in 2008, the third batch of DAIS’ ICSE
students has achieved an average score of 91.15%, with
two-third of them scoring above 90% and the topper
scoring 97.43%.

The IBD Class of 2009, the 5th batch, has earned admission
offers from 32 of the world’s top 50 universities (as per

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4 7

World University Ranking 2008 by the ‘Times Higher
Education Supplement’). Six students were accepted at
Oxbridge (3 at Oxford; 3 at Cambridge), 5 at Imperial and
12 at London School of Economics. Amongst the Ivy
League and other leading universities, Brown has accepted
4 of the DAIS students, Columbia 2, Cornell 5, U-Penn 7,
Princeton 2, Yale 3, Stanford 2, Northwestern 7, Carnegie
Mellon 9, Michigan 13, University of California LA 16, UC
Berkeley 12, New York University 16 and Johns Hopkins
1. Other eminent universities from which the school’s
graduates have earned admission offers include Duke,
McGill, British Columbia, University of Melbourne and
University of Hong Kong. Students who applied to
universities in Singapore as well as those who plan to
study in India are expected to do equally well when their
admissions are finalised.

The distinction of being honoured the ‘Best Co-
educational School in Sports’ in Mumbai by the Mumbai
Schools Sports Association is one of the many sporting
accomplishments during the year. The Dhirubhai Ambani
International School Study & Activity Centre at Matheran,
which we launched last year is in full bloom, giving our

children the opportunity to experience exciting outdoor
environment, to share moments of reflection and to excel
in sports.

As part of their engagement with a variety of social causes,
our students work with a number of NGOs which include
Advitya, Akanksha, Committed Communities Development
Trust (CCDT), Muktangan, Pratham and Ishara. Paigaam,
which is a student-initiated Peace program of DAIS,
exemplifies the enthusiasm and commitment amongst the
youth towards building a harmonious relationship with
people from across the border. The ‘Paigaam’ Peace
Conference organised in July 2008 was yet another
milestone in this exemplary journey. Since earning Regional
Membership in March 2008, the ‘Round Square’ initiative
in the school is making praiseworthy progress, in line with
this global organisation’s ideals of developing every
student as a whole person. Initiatives like these have
significantly contributed to our students’ leadership
attributes, appreciation of environment, service to the
society and global-mindedness. DAIS is the RIL way of
teaching them young and watching them grow.

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Enhancing Lives. Energising India. The Reliance Way

Report on Corporate Governance

In accordance with Clause 49 of the Listing Agreement
with the Stock Exchanges in India (Clause 49) and some
of the best practices followed internationally on
Corporate Governance, the report containing the details
of governance systems and processes at Reliance
Industries Limited is as under :

1. Corporate Governance Philosophy

At Reliance, it is our belief that as we move closer
towards our aspirations of becoming a global
corporation, our corporate governance standards
must be globally benchmarked. That gives us the
confidence of having put in the right building blocks
for future growth and ensuring that we achieve our
ambitions in a prudent and sustainable manner.

We are committed to meeting the aspirations of all
our stakeholders. This is demonstrated in shareholder
returns, high credit ratings, governance processes
and an entrepreneurial, performance focused work
environment. Our customers have benefited from high
quality products delivered at the most competitive
prices.

Our employee satisfaction is reflected in the stability
of our senior management, low attrition across various
levels and substantially higher productivity. Above
all, we feel honoured to be an integral part of India’s
social development. Details of several such initiatives
are available in the section on Corporate Social
Responsibility.

Traditional views of governance as a regulatory and
compliance requirement have given way to adoption
of governance tailored to the specific needs of the
Company. Clause 49 has set the benchmark compliance
rules for a listed company and the baseline for
governance standards. Reliance not only adheres to
the prescribed corporate practices as per Clause 49
but is constantly striving to adopt emerging best
practices worldwide. It is our endeavor to achieve
higher standards and provide oversight and guidance
to management in strategy implementation and risk
management and fulfillment of stated goals and
objectives.

Corporate governance has indeed been an integral
part of the way we have done business for several
decades. This emanates from our strong belief that
strong governance is integral to creating value on a

sustainable basis. Since our IPO 31 years back, we
have grown revenues and net profit by a Compounded
Annual Growth Rate (CAGR) of 28% and 32%
respectively. The financial markets have endorsed this
sterling performance as is reflected in a 38% CAGR
growth in our market capitalization in the past five
years. In terms of distributing wealth to our
shareholders, apart from having a track record of
uninterrupted dividend payout, we have also
delivered a consistent unmatched shareholder returns
since listing. What epitomizes the impact of all that
we do is the fact that our shareholder base has grown
from 52,000 after the IPO to around 3.5 million now.

Corporate governance is a journey for constantly
improving sustainable value creation and is an
upward moving target. We have undertaken several
initiatives towards maintaining the highest standards
and these include:

(cid:2)

Independent Statutory Auditors. The Company’s
accounts are audited by a panel of 3 leading
independent audit firms as follows:

(cid:2) M/s Deloitte, Haskins and Sells, Chartered
Accountants, member of Deloitte Touche
Tohmatsu (DTT) has been the statutory
auditors of the Company for the past several
years. DTT is one of the world’s leading
accounting firms.

(cid:2) M/s Chaturvedi & Shah (C&S), Chartered
Accountants, one of India’s leading audit firms
and a member of the Nexia’s global network of
independent accounting and consulting firms,
is on the approved list (Category 1) of
Comptroller and Auditor General of India and
Reserve Bank of India conducting Statutory
Audits for Public Sector Undertakings,
Insurance Companies, Banks and Financial
Institutions.

(cid:2) M/s Rajendra & Co., one of India’s oldest firms
was set up as an audit firm 40 years ago.
Rajendra & Co. also renders corporate direct
taxation advice to multinational firms and
several public listed companies in India.

(cid:2) Guidelines for the Board/Committee Meetings.
The Company has defined Guidelines for the
meetings of the Board and Board Committees.
These Guidelines seek to systematise the decision

Reliance Industries Limited

4 9

(cid:2)

also aligned its sustainability activities with the
focus areas of The World Business Council for
Sustainable Development.
Internal Checks and Balances. At the heart of
our processes is the wide use of technology that
ensures robustness and integrity of financial
reporting. Reliance deploys a robust system of
internal controls to allow optimal use and
protection of assets, facilitate accurate and timely
compilation of financial statements and
management reports and ensure compliance with
statutory laws, regulations and company policies.

(cid:2) Legal Compliance Unit. A dedicated Legal
Compliance Audit Cell within the Management
Audit Cell ensures that the Company conducts its
business with high standards of legal, statutory
and regulatory compliances. The Company has
instituted a legal compliance program in conformity
with best international standards. Its compliance
program is supported by a robust, on-line system
that covers all manufacturing units of the Company
as well as its subsidiary companies. The gamut of
this system includes statutes, labour and industrial
laws, HSE regulations and taxation laws.

the

importance of

(cid:2) Shareholders communications. The Board
recognizes
two-way
communication with shareholders and of giving a
balanced report of results and progress and
responds to questions and issues raised in a timely
and consistent manner. Reliance’s corporate
website; www.ril.com has information for
institutional and retail shareholders alike.
Shareholders seeking information may contact the
Company directly throughout the year. They also
have an opportunity to ask a question in person
at the Annual General Meeting. Shareholders can
contact RIL via dedicated shareholder contact
points as provided with this report or through any
of Investor Service Centres of the Company’s
Registrars and Transfer Agents spread in more
than 80 cities across India, details of which are
available on the Company’s website www.ril.com.
RIL ensure that queries, complaints and
suggestions are responded to in a timely and
consistent manner.

(cid:2) Employees Stock Option Scheme. One of the
widest programs of its kind in the Indian corporate

making process at the meeting of the Board and
Board Committees in an informed and efficient
manner.

(cid:2) Key Board activities during the year. The Board
provides and critically evaluates strategic direction
of the Company, management policies and their
effectiveness. Their remit is also to ensure that the
long-term interests of the shareholders are being
served. The agenda for Board reviews include
strategic review from each of the Board
committees, a detailed analysis and review of
annual strategic and operating plans and capital
allocation and budgets. Additionally, the Board
reviews financial reports from the CFO and
business reports from each of the sector heads.
Frequent and detailed interaction sets the agenda
and provides the strategic roadmap for the future
growth of the Company.

(cid:2) Corporate Social Responsibility (CSR). Social
welfare and community development is at the core
of RIL’s CSR philosophy and this continues to be
a top priority for the Company. The CSR teams at
the Company’s manufacturing divisions interact
with the neighbouring community on regular basis.
RIL’s contributions to the community are in areas
of health, education, infrastructure development
(drinking water, improving village infrastructure,
construction of schools etc.), environment
(effluent treatment, tree plantation, treatment of
hazardous waste etc.), relief and assistance in the
event of a natural disaster and contributions to
other social development organisations. RIL also
supports and partners with several NGOs in
community development and health initiatives.
(cid:2) Reporting on Triple Bottom-Line Performance.
RIL commenced annual reporting on its triple-
bottom-line performance from FY 2004-05. All its
sustainability reports are externally assured and
GRI checked. The maiden report received ‘in-
accordance’ status from GRI and all subsequent
reports are ‘G3 Checked A+’ application level
reports. From FY 2006-07, in addition to referring
GRI G3 sustainability reporting guidelines, RIL
refers to The American Petroleum Institute / The
International Petroleum Industry Environmental
Conservation Association guidelines and The
United Nations Global Compact principles. RIL has

5 0

Enhancing Lives. Energising India. The Reliance Way

sector, the program was introduced in 2007 and
covers more than 14,000 employee-owners. The
program facilitates delegation of authority while
maintaining integrity and governance. In addition,
the program has ensured complete alignment of
individual interests with the growth imperatives
of the Company.

(cid:2) Best Governance Practices. It is the Company’s
constant endeavour to adopt the best governance
practices as laid down in international codes of
Corporate Governance and as practised by well
known global companies. Some of the best global
governance norms put into practice at Reliance
include the following -

(cid:2) The Company has designated Lead
Independent Director with a defined role.

(cid:2) All securities related filings with Stock
Exchanges and SEBI are reviewed every quarter
by the Shareholders’/Investors’ Grievance
Committee of Directors of the Company.

(cid:2) The Company has established policies and
procedures for corporate communication and
disclosures.

(cid:2) The Company has an independent Board
Committee for matters related to Corporate
Governance and Stakeholders’ Interface and
nomination of Board members.

(cid:2) Role of the Company Secretary in Overall
Governance Process. The Company Secretary
plays a key role in ensuring that the Board
procedures are followed and regularly reviewed.
The Company Secretary ensures that all relevant
information, details and documents are made
available to the directors and senior management
for effective decision making at the meetings. The
Company Secretary is primarily responsible to
ensure compliance with applicable statutory
requirements and is the interface between the
management and regulatory authorities for
governance matters. All the Directors of the
Company have access to the advice and services
of the Company Secretary.

(cid:2) Observance of the Secretarial Standards issued
by the Institute of Company Secretaries of India.
The Institute of Company Secretaries of India
(ICSI) is one of the premier professional bodies in

India. ICSI has issued Secretarial Standards on
important aspects like Board meetings, General
meetings, Payment of Dividend, Maintenance of
Registers and Records, Minutes of Meetings,
Transmission of Shares and Debentures, Passing
of Resolutions by Circulation, Affixing of common
Seal and Forfeiture of Shares. Although these
standards are recommendatory in nature, the
Company substantially adheres to the standards
voluntarily.

2. Board Composition and Particulars of Directors

Board Composition

The Company’s policy is to maintain optimum
combination of Executive and Non-Executive
Directors. The Board consists of 14 directors with
effect from August 21, 2009, out of which 7 are
Independent Directors. Composition of the Board
and category of Directors are as follows:

Category

Name of the Directors

Promoter Director

Executive Directors

Non-Executive Non-
Independent Director

Mukesh D. Ambani
Chairman &
Managing Director

Nikhil R. Meswani
Hital R. Meswani
Hardev Singh Kohli
P.M.S. Prasad1
R. Ravimohan2

Ramniklal H. Ambani

Independent Directors Mansingh L. Bhakta
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Mahesh P. Modi
S. Venkitaramanan3
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A.
Mashelkar

1w.e.f. August 21, 2009
2w.e.f. September 1, 2009
3upto July 24, 2009

All the Independent Directors of the Company
furnish a declaration at the time of their appointment
as also annually that they qualify the conditions of
their being independent as laid down under Clause

Reliance Industries Limited

5 1

49. All such declarations are placed before the
Board.

No Director is related to any other Director on the
Board in terms of the definition of ‘relative’ given
under the Companies Act, 1956, except Shri Nikhil
R. Meswani and Shri Hital R. Meswani, who are
related to each other as brothers.

What constitutes independence of Directors

For a Director to be considered Independent, the
Board determines that the Director does not have
any direct or indirect material pecuniary relationship
with the Company. The Board has adopted guidelines
which are in line with the applicable legal
requirements.

Lead Independent Director

The Board of Directors of the Company has
designated Shri Mansingh L. Bhakta as the Lead
Independent Director. The role of Lead Independent
Director is as follows :
(cid:2) To preside over all meetings of Independent

Directors.

(cid:2) To ensure that there is adequate and timely flow

of information to Independent Directors.

(cid:2) To liaise between the Chairman & Managing
Director, the Management and the Independent
Directors.

(cid:2) To advise on the necessity of retention or
otherwise of consultants who report directly to the
Board or the Independent Directors.

(cid:2) To preside over meetings of the Board and
Shareholders when the Chairman and Managing
Director is not present or where he is an interested
party.

(cid:2) To perform such other duties as may be delegated
to the Lead Independent Director by the Board /
Independent Directors.

Directors’ Profile

Brief resumes of all the Directors, nature of their
expertise in specific functional areas and names of
companies in which they hold directorships,
memberships/chairmanships of Board Committees
and their shareholding in the Company are provided
below:

a) Shri Mukesh D. Ambani Shri Mukesh D.
Ambani, Chairman & Managing Director,
Reliance Industries Limited, is a Chemical
Engineer from University Institute of Chemical
Technology (earlier University Department of
Chemical Technology), University of Mumbai
(earlier University of Bombay). He has pursued
MBA from Stanford University, USA.

Shri Mukesh D. Ambani, son of Shri Dhirubhai
H. Ambani, Founder Chairman of the Company
joined Reliance in 1981. He initiated Reliance's
backward integration journey from textiles into
polyester fibres and further into petrochemicals,
petroleum refining and going up-stream into oil
and gas exploration and production. He created
several new world class manufacturing facilities
involving diverse technologies that have raised
Reliance's petrochemicals manufacturing
capacities from less than a million tonnes to
about twenty million tonnes per year.

Working hands-on, Shri Mukesh D. Ambani led
the creation of the world's largest grassroots
petroleum refinery at Jamnagar, India, with a
current capacity of 660,000 barrels per day (33
million tonnes per year) integrated with
petrochemicals, power generation, port and
related infrastructure. Further, he steered the
setting up of another 27 million tonnes refinery
next to the existing one in Jamnagar. An aggregate
refining capacity of 1.24 million barrels of oil per
day has transformed "Jamnagar" as the 'Refining
Hub of the World'.

In September 2008, when the first drop of crude
oil flowed from the Krishna-Godavari basin, Shri
Mukesh D. Ambani's vision of energy security
for India was being realized. Under his
leadership, RIL is set to transform India's energy
landscape from the oil & gas flowing from
Dhirubhai 1 & 3 Natural gas - a low carbon, low
polluting green fuel that will flow from these will
create value and be beneficial to a large section
of India's society.

Shri Mukesh D. Ambani had set up one of the
largest and most complex information and
communications technology initiative in the
world in the form of Reliance Infocomm Limited
(now Reliance Communications Limited).

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Enhancing Lives. Energising India. The Reliance Way

Shri Mukesh D. Ambani is also steering
Reliance's development of infrastructure facilities
and implementation of a pan-India organized
retail network spanning multiple formats and
supply chain infrastructure.

Shri Mukesh D. Ambani's achievements have
been acknowledged at national and international
levels. Over the years, some of the awards and
recognition bestowed on him are :

(cid:2)

Conferred the ‘Indian Corporate Citizen of
the Year’ by the India Leadership conclave
2009.

Bestowed the US-India Business Council
(USIBC) 'Global Vision' 2007 Award for
Leadership in 2007.

Conferred 'ET Business Leader of the Year'
Award by The Economic Times (India) in the
year 2006.

Conferred the Degree Honoris Causa,
Honorary Doctorate by the Maharaja
Sayajirao University in 2007.

Conferred the India Business Leadership
Award by CNBC-TV18 in 2007.

Received the first NDTV-Profit 'Global Indian
Leader Award' from Hon'ble Prime Minister
of India, Shri Manmohan Singh in New
Delhi in the year 2006.

(cid:2) Had the distinction and honour of being the
Co-chair at the World Economic Forum in
Davos, Switzerland in 2006.

(cid:2)

Ranked 42nd among the 'World's Most
Respected Business Leaders' and second
among the four Indian CEOs featured in a
survey conducted by Pricewaterhouse
Coopers and published in Financial Times,
London, in 2004.

Conferred the World Communication Award
for the 'Most Influential Person' in
Telecommunications by Total Telecom, in
2004.

Conferred the 'Asia Society Leadership
Award' by the Asia Society, Washington
D.C., USA, in 2004.

Shri Mukesh D. Ambani is a member of the Prime
Minister's Council on Trade and Industry,
Government of India and the Board of Governors
of the National Council of Applied Economic
Research, New Delhi.

On invitation to Shri Mukesh D. Ambani,
Reliance Industries Limited, became a Council
Member of World Business Council for
Sustainable Development (WBCSD) in 2007.
Shri Ambani has been elected as Vice Chairman
of WBCSD Executive Committee in 2008.

Further, he is a member of the Indo-US CEOs
Forum, the International Advisory Board of
Citigroup, International Advisory Board of the
National Board of Kuwait, Advisory Council for
the Graduate School of Business, Stanford
University, International Advisory Board of
Brookings, International Advisory Board of
Council on Foreign Relations, Member of The
Business Council, and McKinsey Knowledge
Advisory Council.

He is the Chairman, Board of Governors of the
Indian Institute of Management, Bangalore,
Chairman of Pandit Deendayal Petroleum
University, Gandhinagar, Co-Chair of India-
Russia CEO Council, Co-Chair of Japan-India
Business Leader's Forum and a member of the
Advisory Council of the Indian Institute of
Technology, Mumbai.

Shri Mukesh D. Ambani is the Chairman of
Reliance Retail Limited and a Director of Reliance
Europe Limited and a Private Limited Company.

At RIL, Shri Mukesh D. Ambani is the Chairman
of the Finance Committee and the Employees
Stock Compensation Committee.

Shri Mukesh D. Ambani is the Promoter of the
Company and holds 18,07,923 shares of the
Company in his name as on March 31, 2009.

b) Shri Nikhil R Meswani is a Chemical Engineer.
He is the son of Shri Rasiklal Meswani, one of
the Founder Directors of the Company.

Shri Meswani joined Reliance at an early age in
1986 and since July 01, 1988 he is a Wholetime
Director designated as Executive Director on the
Board of Reliance.

Reliance Industries Limited

5 3

He is primarily responsible for Petrochemicals
Division and has contributed largely to Reliance
to become a global leader in Petrochemicals. In
addition, he continues to shoulder several other
corporate responsibilities.

Shri Meswani is a Director of Reliance
Commercial Dealers Limited. He is a member of
the Finance Committee and the Shareholders’ /
Investors’ Grievance Committee of the Company.
He is the Chairman of the Audit Committee of
Reliance Commercial Dealers Limited.

He was the President of Association of
Synthetic Fibre Industry and was also the
youngest Chairman of Asian Chemical Fibre
Industries Federation.

He was named Young Global Leader by the
World Economic Forum in 2005 and continues
to actively participate in the activities of the
Forum.

He is also a member of the Young Presidents’
Organisation.

He was honoured by the Institute of Economic
Studies, Ministry of Commerce & Industry, the
Textile Association [India], Ministry of Textiles.
He is also a distinguished Alumni of University
Institute of Chemical Technology [UICT],
Mumbai.

Shri Meswani holds 1,21,174 shares of the
Company in his name as on March 31, 2009.

c) Shri Hital R. Meswani graduated with honours
in the Management & Technology programme
from University of Pennsylvania. He received a
B.S. Degree in Chemical Engineering and B.S
Degree in Economics from the Wharton
Business School, both from University of
Pennsylvania, U.S.A.

Shri Meswani joined Reliance Industries Limited
in 1990. He is on the Board of the Company as
Wholetime Director designated as Executive
Director since August 4, 1995, with overall
responsibility of the Petroleum Business and all
manufacturing and project activities of the
group.

Shri Meswani is a Director of Reliance Industrial
Investments and Holdings Limited and Reliance
Commercial Dealers Limited. He is the Chairman
of the Audit Committee of Reliance Industrial
Investments and Holdings Limited, a member of
the Audit Committee of Reliance Commercial
Dealers Limited. He is the Chairman of the
Health, Safety & Environment Committee, a
member of the Finance Committee and the
shareholders’/ Investors’ Grievance Committee
of the Company.

Shri Meswani holds 87,930 shares of the
Company in his name as on March 31, 2009.

d) Shri Hardev Singh Kohli has a Master Degree
in Science. He has wide experience in
implementation and operation of fertilizers and
petrochemicals plants. Since 1991, he has been
working at the Company’s Hazira Manufacturing
Division. He was appointed as a Wholetime
Director of the Company designated as
Executive Director with effect from April 1, 2000.

In recognition of his far reaching vision,
management skills, innovative ideas, untiring
efforts and dynamic leadership, he was
conferred the prestigious The Wisitex
Foundation Award - 1996 “Man of the Corporate
Management”.

He is a member of the Health, Safety and
Environment Committee of the Company.

Shri Kohli holds 1,155 shares of the Company
in his name as on March 31, 2009.

e) Shri PMS Prasad has been appointed as a
Wholetime Director of the Company with effect
from August 21, 2009. He holds a bachelor’s
degree in engineering and has been with the
Company for 28 years. He has been recognized
as one of the finest professionals in the energy
industry. Presently, he heads the upstream and
refining business, which comprises exploration
and production and refinery supply and trading.
Over the years, he has held various positions
in the fibres, petrochemicals and petroleum
business of the Company. He was also the
project head of the Jamnagar refinery and
petrochemicals complex. He was recently
awarded an honorary doctorate degree by the

5 4

Enhancing Lives. Energising India. The Reliance Way

University of Petroleum Engineering Studies,
Dehra Dun.

Shri PMS Prasad is a director of Reliance
Jamnagar Infrastructure Limited, Reliance
Petroinvestments Limited, Reliance Commercial
Dealers Limited, Reliance Gas Corporation
Limited, Reliance Gas Transportation and
Infrastructure Limited and several Private
Limited Companies. He is member of Audit
Committee of Reliance Jamnagar Infrastructure
Limited and Reliance Gas Transportation and
Infrastructure Limited.

Shri Prasad holds in his name 17,433 shares of
the Company.

Shri R. Ravimohan is a Director of the Company
since August 21, 2009. He is a Chemical Engineer
and has completed the Advanced Management
Program from Harvard Business School. He has
been appointed as a Wholetime Director
designated as Executive Director of the
Company with effect from September 1, 2009. He
is the former Chairman of CRISIL Limited and
Managing Director and Region Head of
Standard & Poor’s for the South & South East
Asia. He is credited with building CRISIL into
the largest rating, financial and business
research and advisory service company in India.

Shri Ravimohan has been closely involved with
the modernization of Indian financial system and
pioneered the era of electronic stock markets in
the country. He has been involved in critical
policy assignments including being a member of
the Primary Market Advisory Committee of SEBI,
Technical Advisory Committee and Financial
Stability and Stern Test Assessment of Committee
of Reserve Bank of India and Raghuram Rajan
Committee on Financial Sector Reforms.

Shri Ravimohan is a member of the Audit
Committee of the Company. He is a governing
council member of Whistling Woods
International foundation.

Shri Ravimohan does not hold any share of the
Company.

g) Shri Ramniklal H. Ambani has been one of the
senior most Directors of the Company since
January 11, 1977.

Shri Ramniklal H. Ambani is the elder brother of
Shri Dhirubhai H. Ambani, the Founder Chairman
of the Company and has been instrumental in
chartering the growth of the Company during
its initial years of operations from its factory at
Naroda, in Ahmedabad.

Shri Ambani along with Late Shri Dhirubhai H.
Ambani, set up and operated the textile plant of
the Company at Naroda, Ahmedabad and was
responsible in establishing the Reliance Brand
name “VIMAL” in the textile market in the
country.

Shri Ambani is a Director of Gujarat Industrial
Investments Corporation Limited, Sintex
Industries Limited and several Private Limited
Companies. He is the Chairman of the Audit
Committee of Gujarat Industrial Investments
Corporation Limited. He is the Chief Mentor in
Tower Overseas Limited.

Shri Ambani holds 84,397 shares of the Company
in his name as on March 31, 2009.

h) Shri Mansingh L. Bhakta is a Director of the
Company since September 27, 1977. He is a
Senior Partner of Messers Kanga & Company,
a leading firm of Advocates and Solicitors in
Mumbai. He has been in practice for over 51
years and has vast experience in the legal field
and particularly on matters relating to corporate
laws, banking and taxation.

Shri Bhakta is the legal advisor to leading foreign
and Indian companies and banks. He has also
been associated with a large number of Euro
issues made by Indian companies. He was the
Chairman of the Taxation Law Standing
Committee of LAWASIA, an Association of
Lawyers of Asia and Pacific which has its
headquarters in Australia.

Shri Bhakta is a Director of Ambuja Cements
Limited, Micro Inks Limited, The Indian
JCB
Merchant’s Chamber, Mumbai,
Manufacturing Limited, JCB India Limited and
Lodha Developers Limited. He is the Lead
Independent Director of the Company. He is the
Chairman of the Shareholders’/ Investors’
Grievance Committee and the Remuneration
Committee of the Company. He is the Chairman

Reliance Industries Limited

5 5

of the Audit Committee, the Shareholders’ /
Investors’ Grievance Committee,
the
Compensation and Remuneration Committee
and the Banking Matters Committee of Ambuja
Cements Limited and a member of the Audit
Committees of Micro Inks Limited and JCB India
Limited. He is Recipient of Rotary Centennial
Service Award for Professional Excellence from
Rotary International. He has been listed as one
of the Leading Lawyers of Asia by Asialaw,
Hongkong for the fourth consecutive year from
2006.

Shri Bhakta holds 1,57,000 shares of the
Company in his name as on March 31, 2009.

Shri Yogendra P. Trivedi is a Director of the
Company since April 16, 1992. Shri Trivedi is
practicing as Senior Advocate, Supreme Court.
He is a member of the Rajya Sabha. He is holding
important positions in various fields viz.,
economic, professional, political, commercial,
education, medical, sports and social fields. He
has received various awards and merits for his
contribution in various fields. He was a Director
in Central Bank of India and Dena Bank amongst
many other reputed companies. He is the past
President of Indian Merchants’ Chamber and
presently is member of the Managing
Committee. He was on the Managing Committee
of ASSOCHAM and International Chamber of
Commerce.

Shri Trivedi is the Chairman of Sai Service
Station Limited and Trivedi Consultants Private
Limited. He is a Director of Colosseum Sports
& Recreation International, The Supreme
Industries Limited, Birla Power Solutions
Limited, The Zandu Pharmaceutical Works
Limited, Zodiac Clothing Company Limited,
Seksaria Biswan Sugar Factory Limited, New
Consolidated Construction Company Limited,
Birla Cotsyn (India) Limited and several Private
Limited Companies.

He was the President of the Cricket Club of
India and at present he is member in various
working committees of CCI. He is the President
of the Western India Automobile Association.
He is also member of All India Association of
Industries; W.I.A.A CLUB, B.C.A. Club, Orient

Club, Yachting Association of India and Yacht
Club.

Shri Trivedi is the Chairman of the Audit
Committees of The Zandu Pharmaceutical Works
Limited and Birla Power Solutions Limited. He
is a member of the Audit Committee of Zodiac
Clothing Company Limited, Sai Service Station
Limited, Seksaraia Biswan Sugar Factory Limited
and New Consolidated Construction Company
Limited. He is also the Chairman of the Audit
Committee, the Corporate Governance and
Stakeholders’ Interface Committee and the
Employees Stock Compensation Committee of
the Company. He is also a member of the
Shareholders’/Investors’ Grievance Committee
and the Remuneration Committee of the
Company.

Shri Trivedi holds 12,500 shares of the Company
in his name as on March 31, 2009.

j) Dr. Dharam Vir Kapur is a Director of the
Company since March 28, 2001. He is an
honours Graduate in Electrical Engineering with
wide experience in Power, Capital Goods,
Chemicals and Petrochemicals Industries.

Dr. Kapur had an illustrious career in the
Government sector with a successful track
record of building vibrant organisations and
successful project implementation. He served
Bharat Heavy Electricals Limited (BHEL) in
various positions with distinction. Most
remarkable achievement of his career was
establishment of a fast growing systems
oriented National Thermal Power Corporation
(NTPC) of which he was the founder Chairman-
cum-Managing Director. For his contribution to
success and leadership of the fledgling
organisation, he was described as a Model
Manager by the Board of Executive Directors
of World Bank.

Industry

Dr. Kapur served as Secretary to the
Government of India in the Ministries of Power,
Heavy
and Chemicals &
Petrochemicals during 1980-86. He was also
associated with a number of national institutions
as Member, Atomic Energy Commission;
Member, Advisory Committee of the Cabinet for
Science and Technology; Chairman, Board of

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Enhancing Lives. Energising India. The Reliance Way

Governors, IIT Bombay; Member, Board of
Governors, IIM Lucknow and Chairman,
National Productivity Council.

In recognition of his services and significant
contributions in the field of Technology,
Management and Industrial Development,
Jawaharlal Nehru Technological University,
Hyderabad conferred on him the degree of
D. Sc.

Dr. Kapur is Chairman (Emeritus) of Jacobs H&G
(P) Limited and Chairman, GKN Driveline (India)
Limited and Drivetech Accessories Limited. He
is also a Director on the Boards of Honda Seil
Power Products Limited, Zenith Birla (India)
Limited and DLF Limited. Earlier he was a
Director on the Boards of Tata Chemicals
Limited, Larsen & Toubro Limited and Ashok
Leyland Limited. He is Chairman of Audit
Committees of Honda Seil Power Products
Limited and GKN Driveline (India) Limited,
Shareholders’/Investors’ Relations Committees
of Honda Seil Power Products Limited and DLF
Limited, Chairman’s Executive Committee of
GKN Driveline (India) Limited and Corporate
Governance Committee of DLF Limited. He is a
member of Audit Committees of Zenith Birla
(India) Limited and DLF Limited and
Remuneration Committee of Honda Seil Power
Products Limited.

He is also a member of the Corporate
Governance and Stakeholders’ Interface
Committee, the Remuneration Committee and the
Health, Safety and Environment Committee of
the Company.

Dr. Kapur holds 6,772 shares of the Company
in his name as on March 31, 2009.

k) Shri Mahesh P. Modi, M.Sc. (Econ.) (London),
is a Director of the Company since March 28,
2001. He held high positions in Government of
India as Chairman of Telecom Commission;
Secretary, Ministry of Coal; Special Secretary,
Insurance and Joint Secretary, Ministry of
Petroleum, Chemicals and Fertilizers. He has
considerable management
experience,
particularly in the fields of energy, insurance,
petrochemicals and telecom.

Shri Modi is a member of the Audit Committee,
the Employees Stock Compensation Committee
and
the Corporate Governance and
Stakeholders’ Interface Committee of the
Company.

Shri Modi holds 562 shares of the Company in
his name as on March 31, 2009.

l) Prof. Ashok Misra is a Director of the Company
since April 27, 2005. He obtained his Ph.D. in
Polymer Science & Engineering from University
of Massachusetts, M.S. in Chemical Engineering
from Tufts University and B.Tech. in Chemical
Engineering from IIT Kanpur. He has also
completed the ‘Executive Development
Programme’ and ‘Strategies for Improving
Directors’ Effectiveness Programme’ at the
Kellogg School of Management, Northwestern
University.

Prof. Misra was the Director of the Indian
Institute of Technology Bombay from 2000 to
2008, was at IIT Delhi from 1977 to 2000, and at
Monsanto Chemical Co. from 1974 to 1977. He
is currently the Chairman-India and Head of
Global Alliances, Intellectual Ventures. He is a
Fellow of National Academy of Sciences India
(President from 2006 to 2008), Indian National
Academy of Engineering, Indian Institute of
Chemical Engineers, Indian Plastics Institute and
Maharashtra Academy of Sciences. He is on the
Board of Rashtriya Chemicals & Fertilizers
Limited and was on the Board of National
Thermal Power Corporation Limited for 6 years.
He is or has been on the Boards or Councils of
several national and international institutions.
He has received several awards including the
Distinguished Alumnus Awards from his alma
maters – IIT Kanpur, Tufts University and
University of Massachusetts. He was awarded
the Doctor of Science by Thapar University,
Patiala. He has co-authored a book on Polymers,
was awarded 6 patents and has over 100
international publications. He is on the Editorial
Board of 4 scientific journals.

Prof. Misra holds 220 shares of the Company in
his name as on March 31, 2009.

Reliance Industries Limited

5 7

m) Prof. Dipak C. Jain is a Director of the
Company since August 4, 2005. He is a Ph.D. in
Marketing and M.S. in Management Science
from the University of Texas and M.S. in
Mathematical Statistics from Gauhati University.
Prof. Jain is a distinguished teacher and scholar.
He has been Dean of the Kellogg School of
Management, Northwestern University,
Evanston, Illinois, USA since July, 2001. He has
more than 20 years experience in management
and education. He has published several articles
in international journals on marketing and allied
subjects.

Prof. Jain’s academic honors include the Sidney
Levy Award for Excellence in Teaching in 1995;
the John D.C. Little Best Paper Award in 1991;
Kraft Research Professorships in 1989-90 and
1990-91; the Beatrice Research Professorship in
1987-88; the Outstanding Educator Award from
the State of Assam in India in 1982; Gold Medal
for the Best Post-Graduate of the Year from
Gauhati University in India in 1978; Gold Medal
for the Best Graduate of the Year from Darrang
College in Assam in India in 1976; Gold Medal
from Jaycees International in 1976; the Youth
Merit Award from Rotary International in 1976;
and the Jawaharlal Nehru Merit Award,
Government of India in 1976.

Prof. Jain is a Member of American Marketing
Association and the Institute of Management
Services. He is a Director of John Deere &
Company, Hartmarx Corporation and Northern
Trust Bank (companies incorporated outside
India). He is a Director of Reliance Retail Limited.
He is also a member of the Employees Stock
Compensation Committee of the Company.

Prof. Jain does not hold any share of the
Company.

n) Dr. Raghunath Anant Mashelkar, an eminent
scientist is a Director of the Company since June
9, 2007. He is a Ph.D. in Chemical Engineering.
He is the President of Global Research Alliance,
a network of publicly funded R&D institutes
from Asia-Pacific, Europe and USA with over
60,000 scientists.

Formerly, Dr. Mashelkar was the Director
General of the Council of Scientific and

Industrial Research (CSIR) for over eleven years.
He was also the President of Indian National
Science Academy (INSA).

Dr. Mashelkar is only the third Indian Engineer
to have been elected as Fellow of Royal Society
(FRS), London in the twentieth century. He was
elected Foreign Associate of National Academy
of Science, USA (2005), Foreign Fellow of US
National Academy of Engineering (2003), Fellow
of Royal Academy of Engineering, U.K. (1996),
and Fellow of World Academy of Art & Science,
USA (2000).

Twenty-seven universities have honoured him
with honorary doctorates, which include
Universities of London, Salford, Pretoria,
Wisconsin and Delhi.

Dr. Mashelkar has won over 50 awards and
medals from several bodies for his outstanding
contribution in the field of science and
technology. He is the only scientist so far to
have won the JRD Tata Corporate Leadership
Award (1998) and the Star of Asia Award (2005)
at the hands of George Bush Sr., the former
president of USA.

The President of India honoured Dr. Mashelkar
with Padmashri (1991) and with Padmabhushan
(2000), which are two of the highest civilian
honours in recognition of his contribution to
nation building.

Dr. Mashelkar is a Director of Tata Motors
Limited, Hindustan Unilever Limited, Thermax
Limited, Piramal Life Sciences Limited, KPIT
Cummins Infosystems Limited, Sakal Papers
Limited, ICICI Knowledge Park and several
Private Limited Companies.

Dr. Mashelkar is a member of the Audit
committees of Tata Motors Limited, Hindustan
Uniliver Limited and the Company.

Dr. Mashelkar does not hold any share of the
Company.

3. Board Meetings, Board Committee Meetings and

Procedures

Institutionalised decision making process

The Board of Directors is the apex body
constituted by the shareholders for overseeing

5 8

Enhancing Lives. Energising India. The Reliance Way

the overall functioning of the Company. The
Board provides and evaluates the strategic
direction of the Company, management policies
and their effectiveness and ensures that the
long-term interests of the shareholders are being
served. The Chairman and Managing Director is
assisted by the Executive Directors / senior
managerial personnel in overseeing the
functional matters of the Company.

The Board has constituted seven standing
Committees, namely Audit Committee, Corporate
Governance and Stakeholders’ Interface
Committee, Employees Stock Compensation
Committee, Finance Committee, Health, Safety
and Environment Committee, Remuneration
Committee and Shareholders’ / Investors’
Grievance Committee. The Board is authorized
to constitute additional functional Committees,
from time to time, depending on the business
needs.

The internal Guidelines for Board / Board
Committee meetings facilitate the decision
making process at the meetings of the Board/
Committees in an informed and efficient manner.
The following sub-sections deal with the
practice of these guidelines at Reliance.

B. Scheduling and selection of Agenda Items for

Board meetings

(i) Minimum six pre-scheduled Board meetings
are held every year. Apart from the above,
additional Board meetings are convened by
giving appropriate notice to address the
specific needs of the Company. In case of
business exigencies or urgency of matters,
resolutions are passed by circulation.

(ii) The meetings are usually held at the
Company’s Registered Office at Maker
Chambers IV, 222, Nariman Point, Mumbai -
400 021.

(iii) All divisions/departments of the Company
are advised to schedule their work plans
well in advance, particularly with regard to
matters requiring discussion / approval /
decision at the Board / Committee meetings.
All such matters are communicated to the
Company Secretary in advance so that the

same could be included in the Agenda for
the Board / Committee meetings.

(iv) The Board is given presentations covering
Finance, Sales, Marketing, major business
segments and operations of the Company,
global business environment, all business
areas of the Company including business
opportunities, business strategy and the
risk management practices before taking on
record the quarterly / annual financial
results of the Company.

The information required to be placed before
the Board includes :
(cid:2) General notices of interest of Directors.
(cid:2) Appointment, remuneration and

(cid:2)

resignation of Directors.
Formation/Reconstitution of Board
Committees.
Terms of
Committees.
The minutes of the Board meetings of
unlisted subsidiary companies.

reference of Board

(cid:2) Minutes of meetings of Audit
Committee and other Committees of the
Board.

(cid:2) Appointment or resignation of Chief
Financial Officer and Company
Secretary.

(cid:2) Annual operating plans of businesses,
capital budgets and any updates.
(cid:2) Quarterly results for the Company and
its operating divisions or business
segments.

(cid:2)

(cid:2) Dividend declaration.
(cid:2) Quarterly summary of all long-term
borrowings made, bank guarantees
issued, loans and investments made.
Sale of material nature, of investments,
subsidiaries, assets, which is not in
normal course of business.
Statement of significant transactions
and arrangements entered by unlisted
subsidiary companies.

(cid:2)

(cid:2) Quarterly details of foreign exchange
exposures and the steps taken by
management to limit the risks of
adverse exchange rate movement, if
material.

Reliance Industries Limited

5 9

(cid:2)

Brief on clarifications made to the
press.

(v) The Chairman of the Board and the
Company Secretary in consultation with
other concerned members of the senior
management, finalise the agenda for the
Board meetings.

C. Board Material distributed in advance

Agenda and Notes on Agenda are circulated to
the Directors, in advance, in the defined Agenda
format. All material information is incorporated
in the Agenda for facilitating meaningful and
focused discussions at the meeting. Where it is
not practicable to attach any document to the
Agenda, the same is tabled before the meeting
with specific reference to this effect in the
Agenda.
special and exceptional
circumstances, additional or supplementary
item(s) on the Agenda are permitted.

D. Recording Minutes of proceedings at Board and

Committee meetings

The Company Secretary records the minutes of
the proceedings of each Board and Committee
meeting. Draft minutes are circulated to all the
members of the Board / Committee for their
comments. The minutes are entered in the
Minutes Book within 30 days from conclusion
of the meeting.

E. Post Meeting Follow-up Mechanism

The Guidelines for Board and Committee
meetings facilitate an effective post meeting
follow-up, review and reporting process for the
decisions taken by the Board and Committees
thereof. The important decisions taken at the
Board / Committee meetings are communicated
to the departments / divisions concerned
promptly. Action taken report on the decisions/
minutes of the previous meeting(s) is placed at
the immediately succeeding meeting of the
Board / Committee for noting by the Board /
Committee.

F. Compliance

The Company Secretary while preparing the
Agenda, Notes on Agenda, Minutes etc. of the
meeting(s), is responsible for and is required to

(cid:2)

Internal Audit findings and External
Audit Reports (through the Audit
Committee).
Proposals for investment, mergers and
acquisitions.

(cid:2) Details of any

joint venture,
acquisitions of companies or
collaboration agreement.
Status of business risk exposures, its
management and related action plans.
(cid:2) Making of loans and investment of

(cid:2)

surplus funds.

(cid:2) Non-compliance of any regulatory,
statutory or listing requirements and
shareholders service such as non-
payment of dividend, delay in share
transfer (if any), etc.
Show cause, demand, prosecution
notices and penalty notices which are
materially important.
Fatal or serious accidents, dangerous
occurrences, any material effluent or
pollution problems.

(cid:2)

(cid:2) Any material default in financial
obligations to and by the Company, or
substantial non payment for goods
sold by the Company.

(cid:2)

(cid:2) Any issue, which involves possible
public or product liability claims of
substantial nature, including any
judgment or order, which may have
passed strictures on the conduct of the
Company or taken an adverse view
regarding another enterprise that can
have negative implications on the
Company.
Significant labour problems and their
proposed solutions. Any significant
development in Human Resources /
Industrial Relations front
like
implementation of Voluntary Retirement
Scheme etc.
Transactions that involve substantial
payment towards goodwill, brand
equity or intellectual property.
Brief on statutory developments,
changes in Government policies etc.
with impact thereof, directors’
responsibilities arising out of any such
developments.

(cid:2)

6 0

Enhancing Lives. Energising India. The Reliance Way

ensure adherence to all the applicable laws and
regulations including the Companies Act, 1956
read with the Rules issued thereunder and the
Secretarial Standards recommended by the
Institute of Company Secretaries of India.

4. Number of Board Meetings held and the dates on

which held

Seven Board meetings were held during the year, as
against the minimum requirement of four meetings.
The Company has held at least one Board meeting
in every three months and the maximum time gap
between any two meetings was not more than four
months. The details of the Board meetings are as
under:

Sl. Date
No.

Board
Strength

1 April 21, 2008
2
July 24, 2008
3 October 23, 2008
4 November 24, 2008
5
January 22, 2009
6 March 2, 2009
7 March 27, 2009

13
13
13
13
13
13
13

No. of
Directors
Present
12
10
12
13
13
12
13

5. Attendance of Directors at Board Meetings, last Annual General Meeting (AGM) and number of other

Directorships and Chairmanships / Memberships of Committees of each Director in various companies :

Name of the Director

Attendance of
meetings during 2008-09

No. of Other
Directorship (s)1

Board
Meetings

Last
AGM

Mukesh D. Ambani
Nikhil R. Meswani
Hital R. Meswani
Hardev Singh Kohli
P.M.S. Prasad3
R. Ravimohan3
Ramniklal H. Ambani
Mansingh L. Bhakta
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Mahesh P. Modi
S. Venkitaramanan4
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar

7
6
6
7
N.A.
N.A.
7
7
7
7
7
7
7
5
5

Yes
Yes
Yes
Yes
N.A.
N.A.
No
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes

1
1
2
Nil
5
Nil
2
5
9
5
Nil
2
1
1
6

No. of Membership(s)/
Chairmanship(s) of
Board Committees
in Other Companies2

Nil
1 (as Chairman)
2 (including 1 as Chairman)
Nil
3
Nil
1 (as Chairman)
4 (including 2 as Chairman)
6 (including 2 as Chairman)
6 (including 4 as Chairman)
Nil
Nil
Nil
Nil
2

1The Directorships held by Directors as mentioned above, do not include Alternate Directorships and Directorships in Foreign
Companies, Section 25 Companies and Private Limited Companies.
2In accordance with Clause 49, Memberships / Chairmanships of only the Audit Committees and Shareholders’ / Investors’ Grievance
Committees in all Public Limited Companies (excluding Reliance Industries Limited) have been considered.
3w.e.f. August 21, 2009
4upto July 24, 2009
Video/tele-conferencing facilities are also used to facilitate directors travelling abroad or present at other locations
to participate in the meetings.

6. Board Committees :

A. Standing Committees

Details of the Standing Committees of the Board
and other related information are provided
hereunder :

(i) Audit Committee

Composition: During the financial year the
Audit Committee of the Board comprised
three Independent Non-Executive Directors
namely Shri Yogendra P. Trivedi, Chairman,
Shri S. Venkitaramanan, Vice Chairman, Shri
Mahesh P. Modi. Subsequent to the
resignation of Shri S. Venkitaramanan, the
Audit Committee has been reconstituted
w.e.f. August 21, 2009 to comprise Shri
Yogendra P. Trivedi, Chairman, Shri Mahesh
P. Modi, Dr. Raghunath A. Mashelkar and
Shri R. Ravimohan. All the members of the
Audit Committee possess financial /
accounting expertise/exposure. The
composition of the Audit Committee meets
with the requirements of Section 292A of the
Companies Act, 1956 and Clause 49 of the
Listing Agreement.

Shri Vinod M. Ambani is the Secretary to
the Audit Committee.

regulatory

Objective: The Audit Committee assists the
Board in its responsibility for overseeing
the quality and integrity of the accounting,
auditing and reporting practices of the
Company and its compliance with the legal
and
requirements. The
Committee’s purpose is to oversee the
accounting and financial reporting process
of the Company, the audits of the
Company’s financial statements, the
appointment,
and
performance of the statutory auditors, the
performance of internal auditors and the
Company’s risk management policies.

independence

Terms of Reference : The terms of
reference / powers of the Audit Committee
are as under :

Reliance Industries Limited

6 1

A. Powers of the Audit Committee:

1. To investigate any activity within its terms

of reference.

2. To seek information from any employee.

3. To obtain outside legal or other professional

advice.

4. To secure attendance of outsiders with
relevant expertise, if it considers necessary.

B. The role of the Audit Committee includes:

1. Oversight of the Company’s financial
reporting process and the disclosure of its
financial information to ensure that the
financial statements are correct, sufficient and
credible.

2. Recommending

the Board,

the
to
appointment, reappointment and, if required,
the replacement or removal of Statutory
Auditors and fixation of audit fees.

3. Approval of payment to Statutory Auditors
for any other services rendered by the
Statutory Auditors.

4. Reviewing with the management, the annual
financial statements before submission to the
Board for approval, with particular reference
to :
(cid:2) Matters required to be included in the
Directors’ Responsibility Statement to be
included in the Directors’ Report in terms
of sub-section (2AA) of Section 217 of
the Companies Act, 1956.

(cid:2) Changes, if any, in accounting policies
and practices and reasons for the same.
(cid:2) Major accounting entries involving
estimates based on the exercise of
judgement by the management.

(cid:2) Significant adjustments made in the
financial statements arising out of audit
findings.

(cid:2) Compliance with listing and other legal
requirements relating to financial
statements.

(cid:2) Disclosure of related party transactions.
(cid:2) Qualifications in draft audit report.

6 2

Enhancing Lives. Energising India. The Reliance Way

5. Reviewing with the management, the
quarterly financial statements before
submission to the Board for approval.

6. Reviewing with the management, the
performance of Statutory and Internal
Auditors, adequacy of internal control
systems.

7. Reviewing the adequacy of internal audit
function, if any, including the structure of
the internal audit department, staffing and
seniority of the official heading the
department, reporting structure, coverage
and frequency of internal audit.

8. Discussion with Internal Auditors any
significant findings and follow up thereon.

9. Reviewing the findings of any internal
investigations by the Internal Auditors into
matters where there is suspected fraud or
irregularity or a failure of internal control
systems of a material nature and reporting
the matter to the Board.

10. Discussion with Statutory Auditors before
the audit commences, about the nature and
scope of audit as well as post audit
discussion to ascertain any area of concern.

11. To look into the reasons for substantial
defaults, if any, in the payment to the
depositors, debentureholders, shareholders
(in case of non payment of declared
dividends) and creditors.

12. To review the functioning of the Whistle

Blower Mechanism.

13. Carrying out such other function as may be
specifically referred to the Committee by the
Board of Directors and / or other
Committees of Directors of the Company.

14. To review the following information :

(cid:2) The management discussion and analysis
of financial condition and results of
operations;

(cid:2) Statement of significant related party
transactions (as defined by the Audit
Committee), submitted by management;

(cid:2) Management letters / letters of internal
control weaknesses issued by the
Statutory Auditors;

(cid:2) Internal audit reports relating to internal

control weaknesses; and

(cid:2) The appointment, removal and terms of

remuneration of Internal Auditors.

15. Reviewing the financial statements and in
particular the investments made by the
unlisted subsidiaries of Company.

16. Review of uses / application of funds raised
through an issue (public issue, rights issue,
preferential issue, etc.).

Meetings : Five meetings of the Audit Committee
were held during the year ended March 31, 2009,
as against the minimum requirement of four
meetings.

Attendance of each Member at the Audit
Committee meetings held during the year

Name of the Committee
Member

No. of

meetings meetings
attended

held

Yogendra P. Trivedi,
Chairman

S. Venkitaramanan1

Mahesh P. Modi

Raghunath A. Mashelkar2

R. Ravimohan2

1upto July 24, 2009.
2w.e.f. August 21, 2009.

N.A.

Executives of Accounts Department, Finance
Department, Secretarial Department and
Management Audit Cell and Representatives of
the Statutory and Internal Auditors attend the
Audit Committee Meetings. The Cost Auditors
appointed by the Company under Section 233B
of the Companies Act, 1956 attend the Audit
Committee Meeting, where cost audit reports
are discussed.

The Chairman of the Audit Committee was
present at the last Annual General Meeting.

Reliance Industries Limited

6 3

(ii) Corporate Governance and Stakeholders’

Interface (CGSI) Committee

Composition : The Corporate Governance and
Stakeholders’ Interface Committee of the Board
comprises three Independent Directors, namely,
Shri Yogendra P. Trivedi, Chairman, Dr. Dharam
Vir Kapur and Shri Mahesh P. Modi.

Terms of Reference : The terms of reference of
the Corporate Governance and Stakeholders’
Interface Committee, inter alia, include the
following :

1. Observance of practices of Corporate
Governance at all levels and to suggest
remedial measures wherever necessary.

2. Provision of correct inputs to the media so
as to preserve and protect the Company’s
image and standing.

3. Dissemination of factually correct information
to the investors, institutions and public at
large.

4. Interaction with the existing and prospective

FIIs and rating agencies, etc.

5. Establishing oversight on

important
corporate communication on behalf of the
Company with the assistance of consultants
/ advisors, if necessary.

6. Ensuring

institution of standardised
channels of internal communications across
the Company to facilitate a high level of
disciplined participation.

7. Recommendation for nomination of Directors

on the Board.

Selection of Independent Directors :

Considering the requirement of the skill-sets on
the Board, eminent persons having an
independent standing in their respective field/
profession and who can effectively contribute
to the Company’s business and policy
decisions are considered by the Corporate
Governance and Stakeholders’ Interface
Committee, which also acts as Nomination
Committee, for appointment inter alia of
independent directors on the Board. The number

of directorships and memberships held in
various committees of other companies by such
persons is also considered. The Board considers
the recommendations of the Committee and
takes appropriate decision.

Meetings : Two meetings of the Corporate
Governance and Stakeholders’ Interface
Committee were held during the year ended
March 31, 2009.

Attendance of each Member at the CGSI
Committee meetings held during the year

Name of the Committee
Member

No. of

meetings meetings
attended

held

Yogendra P. Trivedi,
Chairman

Dr. Dharam Vir Kapur

Mahesh P. Modi

(iii) Employees Stock Compensation Committee

Composition : The Employees Stock
Compensation Committee of the Board
comprises four Directors, namely, Shri Yogendra
P. Trivedi (Chairman), Shri Mahesh P. Modi,
Prof. Dipak C. Jain and Shri Mukesh D. Ambani.

Terms of Reference : The Committee was
formed inter alia to formulate detailed terms and
conditions of the Employees Stock Option
Scheme including :

1. the quantum of options to be granted under
Employees Stock Option Scheme per
employee and in aggregate;

2. the conditions under which option vested in
employees may lapse in case of termination
of employment for misconduct;

3. the exercise period within which the
employee should exercise the option and that
the option would lapse on failure to exercise
the option within the exercise period;

4. the specified time period within which the
employee shall exercise the vested options
in the event of termination or resignation of
an employee;

6 4

Enhancing Lives. Energising India. The Reliance Way

5. the right of an employee to exercise all the
options vested in him at one time or at
various points of time within the exercise
period;

6. the procedure for making a fair and
reasonable adjustment to the number of
options and to the exercise price in case of
corporate actions such as rights issues,
bonus issues, merger, sale of division and
others;

7. the grant, vest and exercise of option in case
of employees who are on long leave; and

8. the procedure for cashless exercise of

options, if any.

Meetings : Two meetings of the Employees
Stock Compensation Committee was held during
the year ended March 31, 2009.

Attendance of each Member at the Employees
Stock Compensation Committee meetings held
during the year

Name of the Committee
Member

No. of

meetings meetings
attended

held

Yogendra P. Trivedi,
Chairman

Mahesh P. Modi
Prof. Dipak C. Jain
Mukesh D. Ambani

(iv) Finance Committee

2
2
2

1
2
2

Composition : The Finance Committee of the
Board comprises three Directors, namely, Shri
Mukesh D. Ambani, Chairman, Shri Nikhil R.
Meswani and Shri Hital R. Meswani.

Terms of Reference :

1. Review the Company’s financial policies,
risk assessment and minimisation
procedures, strategies and capital structure,
working capital and cash flow management
and
such
and make

reports

recommendations to the Board with respect
thereto as it may deem advisable.

2. Review banking arrangements and cash

management.

3. Exercise all powers to borrow moneys
(otherwise than by issue of debentures),
and taking necessary actions connected
therewith including refinancing for
optimisation of borrowing costs.

4. Giving of guarantees / issuing letters of
comfort / providing securities within the
limits approved by the Board.

5. Borrow monies by way of loan and / or
issuing and allotting Bonds / Notes
denominated in one or more foreign
currencies in international markets, for the
purpose of refinancing the existing debt,
capital expenditure, general corporate
purposes including working capital
requirements and possible strategic
investments within the limits approved by
the Board.

Provide corporate guarantee / performance
guarantee by the Company within the limits
approved by the Board.

7. Approve opening and operation of
Investment Management Accounts with
Foreign Banks and appoint them as Agents,
establishment of representative / sales
offices in or outside India etc.

8. Carry out any other function as is
mandated by the Board from time to time
and / or enforced by any statutory
notification, amendment or modification as
may be applicable.

9. Other transactions or financial issues that
the Board may desire to have them
reviewed by the Finance Committee.

10. Delegate authorities from time to time to the
Executives / Authorised persons to
implement the decisions of the Committee.

Reliance Industries Limited

6 5

Meetings : Four meetings of the Health, Safety
and Environment Committee were held during
the year ended March 31, 2009.

Attendance of each Member at the HS&E
Committee meetings held during the year

Name of the Committee
Member

No. of

meetings meetings
attended

held

Hital R. Meswani,
Chairman

Hardev Singh Kohli

Dr. Dharam Vir Kapur

(vi) Remuneration Committee Meetings :

Composition : The Remuneration Committee of
the Board comprises three Independent
Directors, namely, Shri Mansingh L. Bhakta,
Chairman, Shri Yogendra P. Trivedi and
Dr. Dharam Vir Kapur. Shri S.Venkitaramanan
was also a member of the Committee up to
July 24, 2009.

Terms of Reference : The Remuneration
Committee has been constituted to recommend
/ review remuneration of the Managing Director
and Wholetime Directors, based on their
performance and defined assessment criteria.

Meetings: One meeting of the Remuneration
committee was held during the year in which all
the members were present.

Remuneration policy, details of remuneration
and other terms of appointment of Directors :

The remuneration policy of the Company is
directed towards rewarding performance, based
on review of achievements on a periodic basis.

The remuneration policy is in consonance with
the existing Industry practice.

11. Regularly

review

make
recommendations about changes to the
charter of the Committee

and

Meetings : Four meetings of the Finance
Committee were held during the year ended
March 31, 2009

Attendance of each Member at the Finance
Committee meetings held during the year

Name of the Committee
Member

No. of

meetings meetings
attended

held

Mukesh D Ambani

Nikhil R Meswani

Hital R Meswani

(v) Health, Safety and Environment (HS&E)

Committee

Composition : The Health, Safety and
Environment Committee of the Board comprises
three Directors, namely, Shri Hital R. Meswani,
Chairman, Shri Hardev Singh Kohli and Dr.
Dharam Vir Kapur.

Terms of Reference : The Health, Safety and
Environment Committee has been constituted,
inter alia, to monitor and ensure maintaining the
highest standards of environmental, health and
safety norms and compliance with applicable
pollution and environmental laws at all works /
factories / locations of the Company and to
recommend measures, if any, for improvement
in this regard.

The Committee reviews, inter alia, the Health
Safety and Environment Policy of the Company,
performance on health, safety and environment
matters and the procedures and controls being
followed at various Plants of the Company and
compliance with the relevant statutory
provisions.

6 6

Enhancing Lives. Energising India. The Reliance Way

Remuneration paid to the Chairman & Managing Director and the Wholetime Directors, including Stock
Options granted during 2008-09:

Name of the Director

Salary

Perquisites
and
allowances

Retiral Commission
payable
benefits

Total

Mukesh D. Ambani
Nikhil R. Meswani
Hital R. Meswani
Hardev Singh Kohli

0.60
0.15
0.15
0.44

0.48
0.24
0.24
0.70

0.51
0.13
0.13
0.21

13.41
10.41
10.41
-

Rs. in crore
Stock
Options
granted
Nos.
Nil
Nil
Nil
Nil

15.00
10.93
10.93
1.35

The Chairman and Managing Director’s compensation has been set at Rs. 15 crore as against Rs. 43.24 crore
that he is elgible as per the shareholders’ approval, reflecting his desire to set a personal example for moderation
in managerial compensation levels.

The tenure of office of the Managing Director and Wholetime Directors is for a period of 5 years from their
respective dates of appointments and can be terminated by either party by giving three months’ notice in
writing. There is no separate provision for payment of severance fees.
The Non-Executive Directors are paid sitting fee at the rate of Rs. 20,000/- for attending each meeting of the
Board and / or Committee thereof. Each of the Non-Executive Directors is also paid commission amounting to
Rs. 21,00,000/- on an annual basis and the total commission payable to such Directors shall not exceed 1% of
the net profits of the Company.

Sitting fee and commission to the Non-Executive Directors, for 2008-09 are as detailed below :

Name of the Non–Executive Director

Sitting Fee

Commission

Ramniklal H. Ambani

Mansingh L. Bhakta

Yogendra P. Trivedi

Dr. Dharam Vir Kapur

Mahesh P. Modi

S.Venkitaramanan

Prof. Ashok Misra

Prof. Dipak C. Jain

Dr. Raghunath A. Mashelkar

Total

1.40

2.40

4.00

2.80

2.60

1.40

1.20

1.00

21.00

Rs. in lacs
Total

22.40

23.40

25.00

23.80

23.60

22.40

22.20

22.00

During the year, the Company has paid Rs.1.52 crore as professional fees to M/s. Kanga & Co., a firm in
which Shri M.L. Bhakta, Director of the Company, is a partner. There were no other pecuniary relationships
or transactions of the Non-Executive Directors vis-à-vis the Company. The Company has not granted any
stock option to any of its Non-Executive Directors.

19.60

189.00

208.60

Reliance Industries Limited

6 7

(vii) Shareholders’ / Investors’ Grievance

Compliance Officer

Committee

Composition : The Shareholders’ / Investors’
Grievance Committee (the Committee) of the
Board, comprised five Directors, namely, Shri
Mansingh L. Bhakta, (Chairman), Shri Yogendra
P. Trivedi, Shri Mukesh D. Ambani, Shri Nikhil
R. Meswani and Shri Hital R. Meswani. The
Committee has been reconstituted w.e.f. August
21, 2009 comprising four members Shri
Mansingh L. Bhakta, (Chairman), Shri Yogendra
P. Trivedi, Shri Nikhil R. Meswani and Shri Hital
R. Meswani.

Terms of Reference : The Committee, inter alia,
approves issue of duplicate certificates and
oversees and reviews all matters connected with
transfer of securities of the Company. The
Committee also looks into redressal of
shareholders’/ investors’ complaints related to
transfer of shares, non-receipt of Balance Sheet,
non- receipt of declared dividend, etc. The
Committee oversees performance of the
Registrar and Transfer Agents of the Company,
and recommends measures for overall
improvement in the quality of investor services.
The Committee also monitors implementation
and compliance of the Company’s Code of
Conduct for Prohibition of Insider Trading in
pursuance of SEBI (Prohibition of Insider
Trading) Regulations, 1992. The Board has
delegated the power of approving transfer of
securities to the Managing Director and / or the
Company Secretary.

Meetings : Four meetings of the Shareholders’/
Investors’ Grievance Committee (SIGC) were held
during the year ended March 31, 2009.

Attendance of each Member at the SIGC
meetings held during the year

Name of the Committee
Member

No. of

meetings meetings
attended

held

Mansingh L. Bhakta,
Chairman
Yogendra P. Trivedi
Mukesh D. Ambani

Nikhil R. Meswani

Hital R. Meswani

4
4
4

4
4
3

Shri Vinod M. Ambani, Company Secretary, is
the Compliance Officer for complying with the
requirements of SEBI Regulations and the
Listing Agreements with the Stock Exchanges
in India.

Investor Grievance Redressal
Number of complaints received and resolved to
the satisfaction of investors during the year
under review and their break-up are as under :
Number of
Types of Complaints
Complaints

Non-Receipt of Annual Reports
Non-Receipt of Dividend Warrants
Non-Receipt of Interest /
Redemption Warrants
Non-Receipt of Certificates
Total

202
4115

968
493
5778

There were no outstanding complaints as on
March 31, 2009. 103 requests for transfers and
583 requests for dematerialisation were pending
for approval as on March 31, 2009, which were
approved and dealt with by April 3, 2009. Given
below is a chart showing reduction in investor’s
complaints.

B. Functional Committees:

The Board is authorized to constitute one or
more Functional Committees delegating thereto
powers and duties with respect to specific
purposes. Meetings of such Committees are
held as and when the need arises. Time schedule
for holding the meetings of such Functional
Committees are finalised in consultation with the
Committee Members.

6 8

Enhancing Lives. Energising India. The Reliance Way

Procedure at Committee Meetings

8. Subsidiary Monitoring Framework

The Company’s guidelines relating to Board
meetings are applicable to Committee meetings
as far as may be practicable. Each Committee
has the authority to engage outside experts,
advisers and counsels to the extent it considers
appropriate to assist in its work. Minutes of the
proceedings of the Committee meetings are
placed before the Board meetings for perusal
and noting.

7. Code of Business Conduct and Ethics for Directors

and Management Personnel
The Code of Business Conduct and Ethics for
Directors and management personnel (‘the Code’),
as recommended by the Corporate Governance and
Stakeholders’ Interface Committee and adopted by
the Board, is a comprehensive Code applicable to all
Directors and management personnel. The Code
while laying down, in detail, the standards of
business conduct, ethics and governance, centres
around the following theme :

“The Company’s Board of Directors and
Management Personnel are responsible for and are
committed to setting the standards of conduct
contained in this Code and for updating these
standards, as appropriate, to ensure their continuing
relevance, effectiveness and responsiveness to the
needs of local and international investors and all
other stakeholders as also to reflect corporate, legal
and regulatory developments. This Code should be
adhered to in letter and in spirit.”

A copy of the Code has been put on the Company’s
website www.ril.com.

The Code has been circulated to all the members of
the Board and management personnel and the
compliance of the same is affirmed by them annually.

A declaration signed by the Chairman & Managing
Director of the Company is given below :

I hereby confirm that the Company has obtained from
all the members of the Board and management
personnel, affirmation that they have complied with
the Code of Business Conduct and Ethics for
Directors and management personnel in respect of
the financial year 2008-09.
Mukesh D. Ambani
Chairman & Managing Director

All subsidiary companies of the Company are Board
managed with their Boards having the rights and
obligations to manage such companies in the best
interest of their stakeholders. The Company monitors
performance of subsidiary companies, inter alia, by
the following means

(a) Financial statements, in particular the
investments made by the unlisted subsidiary
companies, are reviewed quarterly by the Audit
Committee of the Company

(b) All minutes of Board meetings of the unlisted
subsidiary companies are placed before the
Company’s Board regularly.

(c) A statement containing all significant
transactions and arrangements entered into by
the unlisted subsidiary companies is placed
before the Company’s Board.
The Company does not have any material
unlisted subsidiary and hence is not required to
nominate an independent director of the
Company on the Board of any subsidiary. Prof.
Dipak C. Jain, Independent Director of the
Company has been appointed as a Director on
the Board of Reliance Retail Limited, a
subsidiary of the Company.

9. General Body Meetings

(A) Annual General Meetings:

Annual General Meeting of the Company during
the preceding 3 years were held at Birla
Matushri Sabhagar, 19, Marine Lines, Mumbai -
400 020.
Date and time of the Annual General Meetings
held during the preceding 3 years and the
Special Resolution(s) passed thereat are as
follows:

2007-08
Date and Time : June 12, 2008 11.00 a.m.
Nil
Special Resolutions passed

2006-07
Date and Time : October 12, 2007 11.00 a.m.
Special Resolution passed
For payment of enhanced commission to the
Directors of the Company other than the
Managing Director and Wholetime Directors.

Reliance Industries Limited

6 9

2005-06
Date and Time : June 27, 2006 11.00 a.m.
Special Resolutions passed
For approving the Employees Stock Option
Scheme for granting stock options to the
employees of the Company.
For extension of the Employees Stock Option
Scheme to the directors and employees of the
Company’s subsidiaries.

(B) Special Resolution passed through Postal

Ballot:

No special resolution was passed through
Postal Ballot during 2008-09. None of the
Businesses proposed to be transacted in the
ensuing Annual General Meeting require
passing a special resolution through Postal
Ballot.

10. a. Disclosures on materially significant related
party transactions i.e. transactions of the
Company of material nature, with its
Promoters, the Directors or the management,
their relatives, or subsidiaries, etc. that may
have potential conflict with the interests of the
Company at large

None of the transactions with any of the related
parties were in conflict with the interest of the
Company. Attention of Members is drawn to the
disclosures of transactions with the related
parties set out in Notes on Accounts - Schedule
‘O’, forming part of the Annual Report.

A total of 12,00,00,000 warrants were allotted on
preferential basis on April 12, 2007, to entities
in the Promoter Group, in accordance with the
SEBI (Disclosure and Investor Protection)
Guidelines, 2000. These warrants were
exercisable within a maximum period of 18
months from the date of allotment, into an equal
number of fully paid-up equity shares of the
Company. As per the entitlement, the warrant
holders have applied for acquisition of equity
shares and the Company, on October 3, 2008,
allotted 12,00,00,000 equity shares to them.

The Company’s major related party transactions
are generally with its subsidiaries and

associates. The related party transactions are
entered into based on considerations of various
business exigencies such as synergy in
operations, sectoral specialisation and the
Company’s long term strategy for sectoral
investments, optimization of market share,
profitability, legal requirements, liquidity and
capital resources of subsidiaries and associates.

All related party transactions are negotiated on
arms length basis and are intended to further the
interests of the Company.

b. Disclosure of Accounting Treatment

In accordance with the Scheme of Amalgamation
of Reliance Petroleum Limited with the Company
(the Scheme) excess of the fair value of net
assets taken over by the Company over the paid
up value of equity shares issued and allotted
pursuant to the Scheme has been credited to
Securities Premium Account and investments in
Reliance Petroleum Limited prior to the
Amalgamation and the stamp duty / other
expenditure payable on Amalgamation is written
off and charged to the profit and loss account
and an equivalent amount has been withdrawn
from General Reserve and credited to the profit
and loss account. Had the Scheme not
prescribed this accounting treatment, the said
amounts would have been adjusted to the
Capital Reserve. Refer note no. 3 of schedule ‘O’
Notes on Accounts.

c. Details of non-compliance by the Company,
penalties, strictures imposed on the Company
by Stock Exchanges or SEBI, or any other
statutory authority, on any matter related to
capital markets, during the last three years.

There has been no instance of non-compliance
by the Company on any matter related to capital
markets during the last three years and hence
no penalties or strictures have been imposed on
the Company by the Stock Exchanges or SEBI
or any other statutory authority.

11. Means of Communication

(a) Quarterly Results : Quarterly Results are
published in ‘The Economic Times’/ ‘Financial
Express’ and ‘Maharashtra Times’ / ‘Loksatta’

7 0

Enhancing Lives. Energising India. The Reliance Way

and are displayed on the Company’s website
www.ril.com.

(b) News Releases, Presentations, etc. : Official
news releases, detailed presentations made to
media, analysts, institutional investors, etc. are
displayed on
the Company’s website
www.ril.com. Official Media Releases are sent to
the Stock Exchanges.

(c) Website : The Company’s website www.ril.com
contains a separate dedicated section ‘Investor
Relations’ where shareholders information is
available. The Annual Report of the Company
is also available on the website in a user-friendly
and downloadable form.

(d) Annual Report : Annual Report containing, inter
alia, Audited Annual Accounts, Consolidated
Financial Statements, Directors’ Report,
Auditors’ Report and other
important
information is circulated to members and others
entitled thereto. The Management Discussion
and Analysis (MD&A) Report forms part of the
Annual Report and is displayed on the
Company’s website www.ril.com.

(e) Chairman’s Communique : Printed copy of the
Chairman’s Speech is distributed to all the
shareholders at the Annual General Meetings.
The same is also placed on the website of the
Company.

(f) Reminder to Investors : Reminders for unpaid
dividend / unpaid interest or redemption amount
on debentures are sent to the shareholders /
debentureholders as per records every year.

(g) Corporate Filing and Dissemination System
(CFDS) : The CFDS portal jointly owned,
managed and maintained by BSE and NSE is a
single source to view information filed by listed
companies. All disclosures and communications
to BSE & NSE are filed electronically through
the CFDS portal and hard copies of the said
disclosures and correspondence are also filed
with the stock exchanges.

(h) Designated Exclusive email-id : The Company
has designated the following email-ids
exclusively for investor servicing.

(a) For queries on Annual Report

Investor_relations@ril.com

(b) For queries in respect of shares in physical

mode - rilinvestor@karvy.com

(i) Shareholders’ Feedback Survey : The Company
sent feedback form seeking shareholders’ views
on various matters relating to investor services
and the Annual Report 2007-08. The feedback
received from the shareholders was placed
before the Shareholders’ / Investors’ Grievance
Committee.

12. General Shareholder Information

12.1 Company Registration Details

The Company is registered in the State of
Maharashtra, India. The Corporate Identity
Number (CIN) allotted to the Company by the
Ministry of Corporate Affairs (MCA) is
L17110MH1973PLC019786.

12.2 Annual General Meeting

(Day, Date, Time and Venue):
Tuesday, 17th November, 2009 at 11.00 a.m.
Birla Matushri Sabhagar,
19, Marine Lines, Mumbai 400020

12.3 Financial Calendar (tentative)

Financial Year : April 1, 2009 to
March 31, 2010

Results for the quarter ending :
June 30, 2009

- Fourth week of

July, 2009

September 30, 2009 - Fourth week of

October, 2009
December 31, 2009 - Third week of
January, 2010
- Third week of
April, 2010

March 31, 2010

Annual General Meeting - June, 2010

12.4 Date of Book Closure

Wednesday, October 21, 2009 for payment of
dividend.

12.5 Dividend Payment Date
Before October 31, 2009.

Reliance Industries Limited

7 1

Domestic Custodian
ICICI Bank Limited, Empire Complex, E7/F7,
st
1
Floor, 414, Senapati Bapat Marg,
Lower Parel, Mumbai 400013.

Debt Securities
The Wholesale Debt Market (WDM)
Segment of NSE.

Debenture Trustees
Axis Bank Limited
Maker Tower F, 13th Floor, Cuffe Parade,
Colaba, Mumbai 400 005.

IDBI Trusteeship Services Limited
Asian Building, Ground Floor,
17, R. Kamani Marg, Ballard Estate,
Mumbai 400 023.

Payment of Listing Fees : Annual listing fee
for the year 2009-10 (as applicable) has been
paid by the Company to BSE and NSE.
Annual maintenance and listing agency fee
for the calendar year 2009 has been paid by
the Company to the Luxembourg Stock
Exchange.

12.6 Listing on Stock Exchanges

Equity Shares
Bombay Stock Exchange Limited, (BSE),
Phiroze Jeejeebhoy Towers, Dalal Street,
Mumbai 400 001.
Scrip Code 500325

National Stock Exchange of
India Limited (NSE),
‘‘Exchange Plaza”, Bandra-Kurla Complex,
Bandra (E), Mumbai 400 051
Trading Symbol RELIANCE EQ.

ISIN INE002A01018

GDRs
Luxembourg Stock Exchange,11,
Avenue de la Porte-Neuve, L-2227,
Luxembourg.

Also traded on IOB System (London Stock
Exchange) and PORTAL System
(NASD, USA)
Trading Symbol RILYP, CUSIP 759470107

Overseas Depository
The Bank of New York Mellon Corporation
101 Barclay Street New York NY 10286 USA.

12.7

Stock Market Price Data

Month

April 2008

May 2008

June 2008

July 2008

August 2008

September 2008

October 2008

November 2008

December 2008

January 2009

February 2009

March 2009

Bombay Stock Exchange (BSE)
(In Rs.per share)

National Stock Exchange (NSE)
(In Rs.per share)

Month’s High
Price
2,690.00

Month’s Low
Price
2,245.50

2,706.60

2,442.30

2,329.00

2,375.00

2,224.90

1,986.50

1,500.00

1,408.00

1,384.00

1,414.20

1,582.00

2,391.00

1,984.05

1,922.50

2,057.00

1,764.00

930.00

1,021.00

1,033.00

1,067.10

1,201.10

1,118.05

Month’s High Month’s Low

Price

2,718.00

3,026.00

2,444.00

2,338.45

2,376.00

2,250.00

1,963.00

1,505.20

1,407.00

1,390.00

1,414.10

1,583.40

2,243.50

2,390.25

1,956.25

1,920.00

2,052.80

1,765.00

930.00

1,032.10

1,025.00

1,065.00

1,201.35

1,115.30

7 2

Enhancing Lives. Energising India. The Reliance Way

12.8

Share Price Performance in comparison to
broad based indices – BSE Sensex and NSE Nifty
as on March 31, 2009

Percentage Change in

12.9

FY 2008-09
2 years
3 years
5 years

RIL
-33%
11%
91%
268%

BSE
Sensex
-38%
-26%
-14%
74%

NSE
Nifty
-36%
-21%
-11%
70%

Registrars and Transfer Agents
Karvy Computershare Private Limited,
46, Avenue 4, Street No.1, Banjara Hills,
Hyderabad 500 034, India
Tel: +91 40 2332 0666, 2332 0711, 2332 3031,
2332 3037 Toll Free No. 1800 425 8998
Fax: +91 40 2332 3058
e-mail: rilinvestor@karvy.com
Website : www.karvy.com

List of Investor Service Centres of Karvy
Computershare Private Limited is available on
the website of the Company http://www.ril.com.

12.11 Distribution of Shareholding as on March 31, 2009

Category Category of Shareholder
Code

12.10

Share Transfer System

Share transfers are processed and share
certificates returned within a period of 7 days
from the date of receipt, subject to the
documents being valid and complete in all
respects. The board has delegated the authority
for approving transfer, transmission etc. of the
Company’s securities to the Managing Director
and /or Company Secretary. A summary of
transfer/ transmission of securities of the
Company so approved by the Managing
Director / Company Secretary, is placed at every
Board Meeting. The Company obtains from a
Company Secretary in Practice half-yearly
certificate of compliance with the share transfer
formalities as required under Clause 47 (c) of the
Listing Agreement with Stock Exchanges and
files a copy of the certificate with the Stock
Exchanges.

Number of Total Number As a Percentage of
(A+B+C)

of Shares

Shareholders

(A)

(1)
(2)

(B)

(1)

(2)

(C)

Shareholding of Promoter and Promoter Group1

Indian
Foreign

Total Shareholding of Promoter and Promoter Group

Public Shareholding2

Institutions

Non-institutions

Total Public Shareholding

Shares held by Custodians and against which

Depository Receipts have been issued

TOTAL (A) + (B) + (C)

44
0

77 16 98 164
0

77 16 98 164

2 109

39 69 06 694

21 55 941

35 12 85 920

21 58 050

74 81 92 614

5 39 07 455

21 58 095 157 37 98 233

49.03
0.00

49.03

25.22

22.32

47.54

3.43

100.00

1For definitions of "Promoter Shareholding" and "Promoter Group" refer to Clause 40A of Listing Agreement.
2For definition of "Public Shareholding", refer to Clause 40A of Listing Agreement.

Reliance Industries Limited

7 3

12.12

Shareholding Pattern by Size as on March 31, 2009

Sl. No.

Category (Shares)

Holders

21 09 191
30 462
11 061
2 786
1 170
705
2 863

11 46 96 426
2 13 57 369
1 52 69 540
68 20 837
40 78 783
31 84 896
140 83 90 382

% of Total
Shares

7.29
1.36
0.97
0.43
0.26
0.20
89.49

21 58 238

157 37 98 233

100.00

1
2
3
4
5
6
7

-
-
-
-
-
-
-

500
1000
2000
3000
4000
5000
5000

1
501
1001
2001
3001
4001
Above

TOTAL

12.13 Build up of Equity Share Capital

Sl. Particulars
No.

Subscribers To Memorandum

Shareholders of Reliance Textile Industries Limited
(Merged with the Company)

Conversion of Loan

Rights Issue - I

Bonus Issue - I

Debenture Series I Conversion

Consolidation of Fractional Coupon Shares

Conversion of Loan

10 Rights Issue II

11 Debenture Series II Conversion

12 Debenture Series I Conversion Phase II

Allotment
Date

No. of
Shares

October 19, 1975

1 100

May 9, 1977

59 50 000

September 28, 1979

9 40 000

December 31,1979

6 47 832

September 19, 1980

45 23 359

December 31, 1980

8 40 575

May 15,1981

24 673

June 23, 1981

2 43 200

September 22, 1981

1 40 800

October 6, 1981

23 80 518

December 31, 1981

8 42 529

December 31, 1981

April 12, 1982

June 15, 1982

27 168

81 059

774

August 31, 1982

19 20 000

September 9, 1982

1 942

Shareholders of Sidhpur Mills Co Limited (Merged with the Company)

14 Rights Issue II NRI

15 Debenture Series III Conversion

16 Rights Issue II

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) II

December 29, 1982

18 Bonus Issue- II

September 30, 1983

1 11 39 564

7 4

Enhancing Lives. Energising India. The Reliance Way

Sl. Particulars
No.

Allotment
Date

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) III

September 30, 1983

No. of
Shares

371

20 Debenture Series IV Conversion

September 30, 1983

64 00 000

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) IV

April 5, 1984

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) V

June 20, 1984

617

23 Debenture Series I Conversion

24 Debenture Series II Conversion

October 1, 1984

97 66 783

December 31, 1984

2 16 571

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) VI

January 31, 1985

26 Consolidation of Fractional Coupon Shares

27 Debenture Series E Conversion

28 Debenture Series III Conversion

29 Debenture Series IV Conversion

April 30, 1985

45 005

April 30, 1985

53 33 333

July 5,1985

December 17, 1985

52 835

42 871

106

610

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) VII

December 31, 1985

31 Consolidation of Fractional Coupon Shares

December 31, 1985

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) VIII November 15, 1986

40 284

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) IX

April 1, 1987

169

34 Debenture Series G Conversion

35 Right Issue III

36 Debenture Series G Conversion

August 1, 1987

6 60 30 100

February 4, 1988

3 15 71 695

February 4, 1988

29 35 380

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) X

June 2, 1988

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) XI

October 31, 1988

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) XII

November 29, 1990

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) XIII

May 22, 1991

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) XIV October 10, 1991

322

42 Euro Issue GDR-I

June 3, 1992

1 84 00 000

Shareholders of Sidhpur Mills Co Limited (Merged with the Company)

4 060

Shareholders of Reliance Petrochemicals Limited
(Merged with the Company)

45 Loan Conversion

46 Debenture Series H Conversion

December 4, 1992

7 49 42 763

July 7, 1993

3 16 667

August 26, 1993

3 64 60 000

Reliance Industries Limited

7 5

Sl. Particulars
No.

47 Warrant Conversion (Debenture Series F)

48 Euro Issue GDR II

49 Loan Conversion

50 Warrant Conversion (Debenture Series J)

Private Placement of Shares

Allotment
Date

No. of
Shares

August 26, 1993

1 03 16 092

February 23, 1994

2 55 32 000

March 1, 1994

18 38 950

August 3, 1994

87 40 000

October 21, 1994

2 45 45 450

52 Conversion of Reliance Petrochemicals Limited Debentures

December 22, 1994

75 472

Shareholders of Reliance Polypropylene Limited and
Reliance Polyethylene Limited (Merged with the Company)

54 Warrants Conversion

55 Conversion of 3.5% ECB Due 1999 I

56 Conversion of 3.5% ECB Due 1999 II

57 Conversion of 3.5% ECB Due 1999 III

58 Conversion of 3.5% ECB Due 1999 IV

59 Conversion of 3.5% ECB Due 1999 V

60 Conversion of 3.5% ECB Due 1999 VI

61 Bonus Issue III

62 Conversion of 3.5% ECB Due 1999 VII

63 Conversion of 3.5% ECB Due 1999 VIII

64 Conversion of Warrants

Shareholders of Reliance Petroleum Limited
(Merged with the Company)

Shareholders of Indian Petrochemicals Corporation Limited

(Merged with the Company)

67 Exercise of Warrants

68 ESOS - Allotment

Less : Shares Bought Back and extinguished on January 24, 2005

Total Equity as on March 31, 2009

March 16, 1995

9 95 75 915

March 10, 1995

74 80 000

May 24, 1997

544

July 11, 1997

13 31 042

July 22, 1997

6 05 068

September 13, 1997

18 64 766

October 22, 1997

18 15 755

November 4, 1997

1 03 475

December 20, 1997

46 60 90 452

December 4, 1997

15 68 499

September 27, 1999

7 624

January 12, 2000

12 00 00 000

October 23, 2002

34 26 20 509

October 13, 2007

6 01 40 560

October 3, 2008

12 00 00 000

Various dates
in 2008-09

1,49, 632

1 57 66 67 728

- 28 69 495

1 57 37 98 233

7 6

Enhancing Lives. Energising India. The Reliance Way

12.14. Corporate Benefits to Investors

12.15 Dematerialisation of Shares

Bonus Issues of Fully Paid-up Equity Shares

Electronic / Physical

Financial Year

1980-81

1983-84

1997-98

2009-10

Ratio

3:5

6:10

1:1

1:1*

*Subject to shareholders’ approval

Dividend Declared for the last 10 Years

Financial
Year

Dividend
Declaration

Dividend
per Share*

2008-09

2007-08

2006-07

2005-06

2004-05

2003-04

2002-03

2001-02

2000-01

1999-00

October 7, 2009

June 12, 2008

March 10, 2007

June 27, 2006

August 03, 2005

June 24, 2004

June 16, 2003

October 31, 2002

June 15, 2001

June 13, 2000

13.00

11.00

10.00

7.50

5.25

5.00

4.75

4.25

4.00

* Share of paid-up value of Rs. 10 per share.

Shares issued on Demerger

Consequent upon the demerger of the Coal
based, Gas based, Financial services and
Telecommunications undertakings / businesses
of the Company in December 2005, the
shareholders of the Company were allotted
equity shares of the four companies, namely,
Reliance Energy Ventures Limited (REVL),
Reliance Natural Resources Limited (RNRL),
Reliance Capital Ventures Limited (RCVL) and
Reliance Communication Ventures Limited
(RCoVL) in the ratio of one equity share of each
of the companies for every equity share held by
the shareholders except specified shareholders,
in Reliance Industries Limited, as on the record
date fixed for the purpose.
Accordingly, 122,31,30,422 equity shares each of
REVL, RNRL, RCVL and RCoVL were allotted on
January 27, 2006.

NSDL
CDSL
Physical

94.74
1.72
3.54

96.46 % of Company’s Paid up Equity Share
Capital has been dematerialised upto March 31,
2009 (95.91 % upto March 31, 2008). Trading in
Equity Shares of the Company is permitted only
in dematerialised form.

Liquidity
The Company’s Equity Shares are among the
most liquid and actively traded shares on the
Indian Stock Exchanges. RIL shares
consistently rank among the top few frequently
traded shares, both in terms of the number of
shares traded, as well as value. The highest
trading activity is witnessed on the BSE and
NSE. Relevant data for the average daily
turnover for the financial year 2008-2009 is given
below:

Shares(nos)
Value
(in Rs. crore)

BSE

NSE
1,680,810 4,967,294 6,648,104

Total

270.96

816.62

1,087.58

[Source : This information is compiled from the
data available from the websites of BSE and NSE]

12.16 Outstanding GDRs / Warrants and Convertible
Bonds, Conversion Date and likely impact on
equity

(a) GDRs : Outstanding GDRs as on March 31, 2009
represent 5,39,07,455 equity shares constituting
3.43% of the Paid up Equity Share Capital of the
Company. Each GDR represents two underlying
equity shares in the Company. GDR is not a
specific time-bound instrument and can be
surrendered any time and converted into the
underlying equity shares in the Company. The
shares so released in favor of the investors upon
surrender of GDRs can either be held by the
investors concerned in their name or sold off in
the Indian secondary markets for cash. To the
extent of the shares so sold in Indian markets,
GDRs can be reissued under the available head
room.

RIL GDR Program - Important Information
(cid:2) RIL GDRs are listed at Luxembourg Stock
Exchange. GDRs are traded on International
Order Book (IOB) of London Stock Exchange.
GDRs are also traded amongst Qualified
Institutional investors in the Portal System of
NASD, USA.

(cid:2) RIL GDRs are exempted securities under US
Securities Law. RIL GDR program has been
established under Rule 144A and Regulation
S of the US Securities Act, 1933. Reporting is
done under the exempted route of Rule 12g3-
2(b) under the US Securities Exchange Act,
1934.

(cid:2) The Bank of New York Mellon is the
Depositary and ICICI Bank Limited is the
Custodian of all the Equity Shares underlying
the GDRs issued by the Company.

RIL GDR Price Movement over last 1 year

(b)

Source : Bank of New York Mellon website

Employee Stock Options : A total of 50,100
Options have been granted in the financial year
2008-09 (previous years 2,97,63,000). Each
Option, upon exercise of the same, would give
rise to one equity share of Rs. 10/- each fully
paid up. The exercise is made at the market price
prevailing as on the dates of the grant plus
applicable taxes as may be levied on the
Company in this regard. The details of Options
granted during the year are as follows:

Date of Grant
Total options granted
Price per share

February 6, 2009
50,100
Rs.1289/- *

* plus applicable taxes as may be levied on the
Company in this regard

Reliance Industries Limited

7 7

Options vest over one year to a maximum period
of seven years, depending upon specified
criteria. The Options can be exercised during a
period of five years or such other period as the
Employees Stock Compensation Committee may
decide from the date of vesting. The Options
unexercised during the exercise period would
lapse.

12.17 Locations of Manufacturing Divisions

Allahabad
A/10-A/27, UPSIDC Industrial Area
Kailash Nagar, Karchana, P. O. T.S.L.
District Allahabad - 211 010, Uttar Pradesh, India.

Barabanki
Dewa Road, Somaiya Nagar
Barabanki - 225 123
Uttar Pradesh, India.

Dahej
P. O. Dahej, Bharuch - 392 130
Gujarat, India

Hazira
Village Mora, Bhatha, P.O. Surat
Hazira Road, Surat - 394 510,
Gujarat India.

Hoshiarpur
Dharmshala Road, V.P.O. Chohal
District Hoshiarpur
Punjab - 146 014, India.

Jamnagar
Village Meghpar/Padana, Taluka Lalpur
Jamnagar - 361 280
Gujarat, India.

Jamnagar SEZ
Village Meghpar/Padana, Taluka Lalpur
Jamnagar - 361 280
Gujarat, India.

Nagothane
P. O. Petrochemicals Township
Nagothane, Raigad - 402 125,
Maharashtra, India.

Nagpur
Village Dahali, Mouda Ramtek Road
Tehsil Mouda - 441104, District Nagpur,
Maharashtra, India.

7 8

Enhancing Lives. Energising India. The Reliance Way

Naroda
103/106, Naroda Industrial Estate Naroda,
Ahmedabad - 382 320
Gujarat, India.

Patalganga
B-4, Industrial Area, Patalganga
Near Panvel, Dist. Raigad - 410 207
Maharashtra, India.

Silvassa
342, Kharadpada, Near Silvassa
Union Territory of Dadra &
Nagar Haveli - 396 235, India.

Vadodara
P. O. Petrochemicals
Vadodara - 391 346
Gujarat, India.

12.18 Address for Correspondence

(i)

Investor Correspondence

For Shares/Debentures held in Physical form
Karvy Computershare Private Limited
46, Avenue 4, Street No. 1, Banjara Hills
Hyderabad - 500 034.
E-Mail: rilinvestor@karvy.com

For Shares/Debentures held in Demat form
Investors' concerned Depository Participant(s)
and /or Karvy Computershare Private Limited.

(ii)

Any query on Annual Report
Shri Atul Tandon
Asst. Company Secretary
Reliance Industries Limited,
3rd Floor, Maker Chambers IV,
222, Nariman Point, Mumbai 400 021.
Email:investor_relations@ril.com

12.19 Transfer of unpaid/unclaimed amounts to
Investor Education and Protection Fund

During the year under review, the Company has
credited Rs. 4.91 crore to the Investor Education
and Protection Fund (IEPF) pursuant to Section
205C of the Companies Act, 1956 read with the
Investor Education and Protection Fund
(Awareness and Protection of Investors) Rules,
2001. Details of the aforesaid transfer are as
under:

Type of Transfer

Amount transferred
(Rs. in crore)

Dividend
Interest on Debentures
Redemption of Debentures
Total amount transferred
during the year

4.78
0.04
0.09

4.91

The cumulative amount transferred to IEPF upto
March 31, 2009 is Rs. 77.60 crore.

13.

Compliance Certificate of the Auditors

Certificate from the Auditors of the Company,
M/s. Chaturvedi & Shah, M/s. Deloitte Haskins
& Sells and M/s. Rajendra & Co., confirming
compliance with the conditions of Corporate
Governance as stipulated under Clause 49, is
attached to the Directors’ Report forming part
of the Annual Report.

This Certificate has also been forwarded to the
Stock Exchanges where the securities of the
Company are listed.

14.

Adoption of Mandatory and Non-Mandatory
Requirements of Clause 49

The Company has complied with all mandatory
requirements and has adopted following non-
mandatory requirements of Clause 49.

Remuneration Committee

The Company has constituted Remuneration
Committee to recommend / review remuneration
of the Managing Director and Wholetime
Directors based on their performance and
defined assessment criteria.

Training of Board Members

New Directors appointed by the Board are given
formal induction and orientation with respect to
the Company’s vision, strategic direction, core
values including ethics, corporate governance
practices, financial matters and business
operations. The new appointee is also facilitated
with a tour of the Company’s key manufacturing
facilities to get familiar with the Company’s
operations.

Reliance Industries Limited

7 9

The Board members are also provided with the
necessary documents / brochures, reports and
internal policies to enable them to familiarize with
the Company’s procedures and practices.

Periodic presentations are made at the Board and
Committee Meetings, on business and
performance updates of the Company, global
business environment, business strategy and
risks involved.

Quarterly updates on relevant statutory
changes and landmark judicial pronouncements
encompassing important laws are circulated to
the Directors.

Meetings of Independent Directors

The Independent Directors of the Company
meet from time to time as they deem appropriate
without the presence of Executive Directors or
management personnel. These meetings are
conducted in an informal and flexible manner to
enable the Independent Directors to discuss
matters pertaining to the affairs of the company
and put forth their views to the Lead
Independent Director. The Lead Independent
Director takes appropriate steps to present such
views to the Chairman and Managing Director.

Whistle Blower policy

The Company promotes ethical behaviour in all
its business activities and has put in place a
mechanism of reporting illegal or unethical
behaviour. The Company has a whistle blower
policy wherein the employees are free to report
violations of laws, rules, regulations or unethical
conduct to their immediate supervisor or such
other person as may be notified by the
management to the workgroups. Such reports
received are reviewed by the Corporate
Governance and Stakeholders Interface
Committee from time to time. The confidentiality
of those reporting violations is maintained and
they are not subjected to any discriminatory
practice.

15.

CEO and CFO Certification

The Chairman and Managing Director and the
Chief Financial Officer of the Company give
annual certification on financial reporting and
internal controls to the Board in terms of Clause
49. The Chairman and Managing Director and
the Chief Financial Officer also give quarterly
certification on financial results while placing
the financial results before the Board in terms
of Clause 41.

8 0

Enhancing Lives. Energising India. The Reliance Way

Secretarial Audit Report

The Board of Directors
Reliance Industries Limited
3rd Floor, Maker Chambers IV
222, Nariman Point
Mumbai 400 021

I have examined the registers, records and documents of
Reliance Industries Limited (“the Company”) for the
financial year ended on March 31, 2009 according to the
provisions of-

(cid:2)

The Companies Act, 1956 and the Rules made under
that Act;

The Depositories Act, 1996 and the Regulations and
Bye-laws framed under that Act;

The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India Act,
1992 (‘SEBI Act’)

(cid:2)

The Securities and Exchange Board of India
(Substantial Acquisition of Shares and
Takeovers) Regulations, 1997;

The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations,
1992;
The Securities and Exchange Board of India
(Disclosure and Investor Protection) Guidelines,
2000;
The Securities and Exchange Board of India
(Employee Stock Option Scheme and Employee
Stock Purchase Scheme) Guidelines, 1999 and

The Securities and Exchange Board of India
(Issue and Listing of Debt Securities) Regulations,
2008.

The Securities Contracts (Regulation) Act, 1956
(‘SCRA’) and the Rules made under that Act; and

The Equity Listing Agreements with Bombay Stock
Exchange Limited and National Stock Exchange of
India Limited and GDR Listing Agreement with
Luxembourg Stock Exchange and Debt Listing
Agreement with National Stock Exchange of India
Limited.

1. Based on my examination and verification of the
registers, records and documents produced to me and
according to the information and explanations given
to me by the Company, I report that the Company has,
in my opinion, complied with the provisions of the
Companies Act, 1956 (“the Act”) and the Rules made
under the Act and the Memorandum and Articles of
Association of the Company, with regard to:

(a) maintenance of various statutory registers and
documents and making necessary entries therein;

(b) closure of the Register of Members /

Debentureholders;

(c)

forms, returns, documents and resolutions
required to be filed with the Registrar of
Companies and Central Government;

(d) service of documents by the Company on its
Members, Debentureholders, Debenture
Trustees and the Registrar of Companies;

(e) Notice of Board meetings and Committee

(f)

meetings of Directors;
the meetings of Directors and Committees of
Directors including passing of resolutions by
circulation;

(g)

the 34th Annual General Meeting held on June
12, 2008;

(h) approval of the shareholders, secured creditors
(including debentureholders) and unsecured
creditors in their respective court convened
meetings held on April 4, 2009 in terms of the
Hon’ble Bombay High Court Order under
Sections 391-394 of the Act read with the
Companies (Court) Rules, in relation to
amalgamation of Reliance Petroleum Limited with
the Company;

(i) minutes of proceedings of General Meetings and

of Board and other meetings;

(j)

approvals of the Members, the Board of
Directors, the Committees of Directors and
government authorities, wherever required;

(k) constitution of the Board of Directors /
Committee(s) of directors and appointment,
retirement and re-appointment of Directors
including the Managing Director and Whole-time
Directors;

(l) payment of remuneration to the Directors
including the Managing Director and Whole-time
Directors;

(m) appointment and remuneration of Auditors and

Cost Auditors;

(n)

transfers and transmissions of the Company’s
shares and debentures, issue and allotment of
shares and debentures and issue and delivery of
original and duplicate certificates of shares and
debentures;

(o) payment of interest on debentures and

redemption of debentures;

(p) declaration and payment of dividends;

(q)

transfer of certain amounts as required under the
Act to the Investor Education and Protection
Fund;

(r) borrowings and registration, modification and

satisfaction of charges;

(s)

investment of the Company’s funds including
inter-corporate loans and investments and loans
to others;

(t) giving guarantees in connection with loans taken
by subsidiaries and associate companies;

(u)

form of balance sheet as prescribed under Part I
of Schedule VI to the Act and requirements as to
Profit & Loss Account as per Part II of the said
Schedule;

(v) contracts, common seal, registered office and
publication of name of the Company; and

(w) generally, all other applicable provisions of the

Act and the Rules made under that Act.

I further report that:

(a)

(b)

(c)

(d)

the Directors have complied with the
requirements as to disclosure of interests and
concerns in contracts and arrangements,
shareholdings / debenture holdings and
directorships in other companies and interests
in other entities;

the Directors have complied with the disclosure
requirements in respect of their eligibility of
appointment, their being independent and
compliance with the code of Business Conduct
& Ethics for Directors and Management
Personnel.

the Company has obtained all necessary
approvals under the various provisions of the
Act;

there was no prosecution initiated against or
show cause notice received by the Company and
no fines or penalties were imposed on the
Company during the year under review under
the Companies Act, SEBI Act, SCRA,
Depositories Act, Listing Agreement and Rules,
Regulations and Guidelines framed under these
Acts against the Company, its Directors and
Officers.

Reliance Industries Limited

8 1

I further report that the Company has complied with
the provisions of the Depositories Act, 1996 and the
Bye-laws framed thereunder by the Depositories with
regard to dematerialisation / rematerialisation of
securities and reconciliation of records of
dematerialised securities with all securities issued by
the Company.

I further report that:
(a)

the Company has complied with the requirements
under the Equity Listing Agreements entered into
with the Bombay Stock Exchange Limited and
the National Stock Exchange of India Limited and
GDR Listing Agreement with Luxembourg Stock
Exchange and the Debt Listing Agreement with
National Stock Exchange of India Limited;
the Company has complied with the provisions
of the Securities and Exchange Board of India
(Substantial Acquisition of Shares and
Takeovers) Regulations, 1997 including the
provisions with regard to disclosures and
maintenance of records required under the
Regulations;
the Company has complied with the provisions
of the Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 1992
including the provisions with regard to
disclosures and maintenance of records required
under the Regulations.
the Company has complied with the provisions
of the Securities and Exchange Board of India
(Employee Stock Option Scheme and Employee
Stock Purchase Scheme) Guidelines, 1999 with
regard to implementation of Employee Stock
Option Scheme, grant of Options and other
aspects.
the Company has complied with the provisions
of the Securities and Exchange Board of India
(Disclosure and Investor Protection) Guidelines,
2000 with regard to allotment of equity shares to
entities in the Promoter Group who were issued
warrants on preferential basis.
the Company has complied with the provisions
of the Securities and Exchange Board of India
(Issue and Listing of Debt Securities)
Regulations, 2008 with regard to issue and
allotment of Debentures.

(b)

(c)

(d)

(e)

(f)

Dr K R Chandratre
Practising Company Secretary
Certificate of Practice No. 5144

Dated: August 24, 2009

8 2

Enhancing Lives. Energising India. The Reliance Way

Directors' Report

Dear Shareholders,
Your Directors are pleased to present the 35th Annual Report and the audited accounts for the financial year ended
March 31, 2009.
Amalgamation of Reliance Petroleum Limited with the Company
Reliance Petroleum Limited ('RPL') has been amalgamated with the Company. The Scheme of Amalgamation was
sanctioned by the Hon'ble High Court of Judicature at Bombay vide Order dated June 29, 2009 and by the Hon'ble
High Court of Gujarat at Ahmedabad vide Order dated July 29, 2009 received on September 10, 2009. The Scheme
became effective on September 11, 2009, the Appointed Date of the Scheme being April 1, 2008.
The amalgamation follows the Company's philosophy of creating enduring value for all its stakeholders. The
amalgamation creates a platform for value-enhancing growth and reinforces the Company's position as an integrated
global energy Company. Through this amalgamation, the Company consolidates a world-class, complex refinery
complementing the Company's product range. With this amalgamation, the Company is now having the most complex
and largest refining facility at single location in the world and will have a combined capacity of 1.24 MBPD and also
be a supplier of clean fuels to all global markets.
Financial Results
The assets and liabilities of RPL and its operating results have been incorporated in the Company's books with effect
from April 1, 2008 (Appointed Date). The financial performance of the Company, for the year ended March 31, 2009 is
summarised below:

Profit before Depreciation,
Interest & Tax
Interest
Less:
Depreciation
Less: Transfer from

Revaluation
Reserve

Profit before Tax
Less: Provision for

Current Taxation
Provision for
Fringe Benefit Tax
Provision for
Deferred Tax

Profit after Tax
Add: Balance in Profit

and Loss Account
Excess provision
for tax for earlier years
Amount Available for Appropriation
Appropriations:
General Reserve
Debenture Redemption Reserve
Dividend on Equity Shares
Tax on dividend
Balance carried to Balance Sheet

2008-2009
Rs. crore

25,373.75
1,745.23

$ Mn*

5,003
344

2007-2008

Rs. crore

$ Mn*

28,934.64
1,077.36

7,212
269

7,182.43

1,987.14

6,627.85

1,780.71

5,195.29
18,433.23

1,206.50

56.87

1860.54
15,309.32

4,363.29

-
19,672.61

11,728.92
340.05
1,897.05
322.40
5,384.19
19,672.61

1,025
3,634

238

367
3,018

861

-
3,879

2,312
67
374
64
1,062
3,879

4,847.14
23,010.14

1,208
5,735

2,604.96

47.00

649

899.89
19,458.29

224
4,850

2,765.37

689

48.10
22,271.76

16,000.00

1,631.24
277.23
4,363.29
22,271.76

12
5,551

3,988
--
406
69
1,088
5,551

* 1 $ = Rs. 50.72 Exchange Rate as on March 31, 2009 (1 $ = Rs 40.12 as on March 31, 2008)
(Financial results for the year 2008-09 include figures of RPL and therefore to that extent are not comparable with the
figures for 2007-08)

Reliance Industries Limited

8 3

Results of Operations

The year under review was a transformational year for
the Company. The Company has set new global
benchmarks for project execution. This was a landmark
year for the Company for its operating performance with
earnings growth amidst extraordinary challenges of price
volatility and demand reduction.

During the year, the Company has scaled new heights
and set several new benchmarks in terms of sales, profits,
networth and assets. Turnover for the year was
Rs. 1,46,328 crore ($ 28.9 billion) against Rs. 1,39,269
crore in the previous year. Exports were higher by 7% at
Rs. 89,199 crore ($17.6 billion).

Profit after tax for the year (excluding exceptional items)
was Rs. 15,637 crore ($ 3.1 billion) as against Rs.15,261
crore ($ 3.8 billion).

The Company is one of India's largest contributors to the
national exchequer primarily by way of payment of taxes
and duties to various government agencies. During the
year, a total of Rs. 11,574 crore ($ 2.3 billion) was paid in
the form of various taxes and duties.

Dividend and Bonus

Your Directors have declared a dividend (interim) of
Rs. 13/- per equity share (last year Rs. 13/- per equity
share) for the financial year ended March 31, 2009,
amounting to Rs. 2,219 crore (inclusive of tax of Rs. 322
crore) one of the highest ever payout by the Company.
The shareholders of the erstwhile RPL shall also be
eligible to receive the dividend.

The Board of Directors has considered the interim
dividend declared as the final dividend for the financial
year ended March 31, 2009.

Your Directors have recommended issue of bonus shares
in the ratio of one fully paid equity share for every one
fully paid equity share held in the Company. The bonus
shares will also accrue to the shareholders of the
erstwhile RPL, since amalgamated with the Company.

The proposal for bonus continues Reliance’s tradition of
rewarding shareholders at the end of a value creation
cycle. The dividend pay out and recommended bonus
have been formulated keeping in view the Company’s
need for capital for its growth plans, the intent to finance
such plans through internal accruals to the maximum and
the ability to serve the enhanced capital.

The issue of bonus shares shall be subject to the
shareholders’ approval at the ensuing Annual General
Meeting. On approval by the shareholders, bonus shares
shall be issued to those who are members of the
Company as on the record date to be fixed by its Board.

Credit Rating

The Company continues to have the highest domestic
credit ratings of AAA from CRISIL and Fitch. Moody's
and S&P have reaffirmed investment grade ratings for
international debt of the Company, as Baa2 and BBB,
respectively. The Company's international rating from
S&P is higher than the country's sovereign rating. Strong
credit ratings by leading international agencies reflect the
Company’s financial discipline and prudence.

Employees Stock Option Scheme

Employees Stock Option Scheme was approved and
implemented by the Company and Options were granted
to employees in accordance with the Securities and
Exchange Board of India (Employee Stock Option Scheme
and Employee Stock Purchase Scheme) Guidelines, 1999
('the SEBI Guidelines'). The Employees Stock
Compensation Committee, constituted in accordance with
the SEBI Guidelines, administers and monitors the
Scheme.

The applicable disclosures as stipulated under the SEBI
Guidelines as at March 31, 2009 (cumulative position) are
given below:

a. Options Granted

b. Exercise Price

Options granted
2,87,28,000
27,000
10,08,000
50,100

29,813,100

Exercise Price
1,284*
1,684*
2,292*
1,289*

* Plus applicable taxes, as may be levied on the Company

c. Options Vested
d. Options Exercised
e. The total number of shares arising as a

result of exercise of Options

f. Options Lapsed
g. Variation in terms of Options

21,55,070
1,49,632

1,49,632
29,76,740
Nil

8 4

Enhancing Lives. Energising India. The Reliance Way

h. Money realised by exercise

Rs. 23,19,29,600

of Options

i. Total number of Options in force

2,66,86,728

[(a) - (d) - (f)]

j. Employee wise details of Options granted to:

i. Senior managerial personnel

1. Shri Nikhil R.Meswani
2. Shri Hital R. Meswani
3. Shri Hardev Singh Kohli
ii. Any other employee who received a
grant in any one year of Options
amounting to 5% or more of Options
granted during that year

iii. Identified employees, who were granted
Options, during any one year, equal to
or exceeding 1% of the issued capital
(excluding outstanding warrants and
conversions) of the Company at the
time of grant

7,00,000
7,00,000
50,000

Nil

k. Diluted Earnings Per Share (EPS) before

exceptional items pursuant to issue of shares
on exercise of Options calculated in
accordance with Accounting Standard (AS)
20 'Earnings Per Share'

Rs. 98.83

As the exercise is made at the market price prevailing as
on the date of the grant plus applicable taxes as may be
levied on the Company, the issuance of equity shares
pursuant to exercise of Options does not affect the profit
and loss account of the Company.

The Company has received a certificate from the Auditors
of the Company that the Scheme has been implemented
in accordance with the SEBI Guidelines and the resolution
passed at the Annual General Meeting held on June 27,
2006. The Certificate would be placed at the Annual
General Meeting for inspection by members.

Management's Discussion and Analysis Report

Management's Discussion and Analysis Report for the
year under review, as stipulated under Clause 49 of the
Listing Agreement with the Stock Exchanges in India, is
presented in a separate section forming part of the
Annual Report.

The Company has entered into various contracts in the
areas of oil & gas, refining and petrochemicals
businesses. While benefits from such contracts will

accrue in the future years, their progress is periodically
monitored.

Some of the major events of the year include the
following:

(cid:2)

The Company made two gas discoveries during the
year as follows:
Well B1 in the KG-V-D3 Block
Well L1 in the KG-D6 Block
The appraisal of the southern area of KG-D6 is
underway targeting the extension of the channel
levee fan complex system within the tertiary
sequences i.e. Pleistocene, Pliocene and Miocene.
Interpretation of 3D seismic data during the year has
led to identification of new prospects in this area.
The consolidation of RPL's refining assets with RIL's
existing refining business gives RIL a capacity of
1.24 MBPD. What sets RIL apart in the context of
global refining is the complexity of its refineries. The
two Jamnagar refineries that RIL will operate are not
only among the largest in the world, but also the
most complex, with an average complexity of more
than 12.0 on the Nelson index. Following the
amalgamation, RIL will own 25% of the world's most
complex refining capacity. RIL will also become the
world's largest producer of ultra-clean fuels at a
single location.
RIL has signed gas contracts that are in line with
the Gas Utilisation Policy of the Government of India.
Accordingly, standard gas contracts have been
signed for a 5-year period at $ 4.2 /MMBTU with
companies in fertiliser, power and the sponge iron
sectors. Gas production has already reached 5 billion
cubic meters from this block.

Some of the major events after the end of the year till
the date of this report include the following -

(cid:2)

RIL has commenced gas production from KG-D6
block (D1 / D3 discoveries) in a record time of six
and half years, as against the world average of 9-10
years for similar deep water facilities. KG-D6 is
amongst the five largest deep water gas projects
globally.
In a short span of less than 6 months, total gas
production from KG-D6 has ramped up to nearly 40
MMSCMD. This is one of the fastest ramp-up in gas
production amongst the deep water gas fields world-
wide.

Reliance Industries Limited

8 5

(cid:2)

The litigation in respect of gas supply from KG-D6
basin where the Company is a contractor under a
production sharing contract (PSC) is now pending
before the Hon'ble Supreme Court.

(cid:2) All key processing units, including the Fluidised
Catalytic Cracking Unit (FCCU), Vacuum Gas Oil
(VGO), Hydrogen Manufacturing Unit (HMU), Diesel
Hydro De-Sulphurisation (DHDS), Propylene
Recovery Unit (PRU), Coker unit and the
Polypropylene complex are operating close to their
respective design capacities. All the support units
and utilities are fully operational and presently the
refinery is operating at its design capacity.

candidature for the office of Director liable to retire by
rotation.

Shri H S Kohli, Shri Y P Trivedi, Prof. Dipak C Jain, Shri
M L Bhakta, Directors, retire by rotation and being
eligible, offer themselves for reappointment at the ensuing
Annual General Meeting.

Shri S. Venkitaramanan, an independent director, resigned
from the Board w.e.f. July 24, 2009. The Board placed on
record its deep sense of appreciation for the guidance
and invaluable contribution made by Shri S.
Venkitaramanan during his tenure as a director of the
Company.

Subsidiaries

Group

Ministry of Corporate Affairs, Government of India has
granted approval that the requirement to attach various
documents in respect of subsidiary companies, as set out
in sub-section (1) of Section 212 of the Companies Act,
1956, shall not apply to the Company. Accordingly, the
Balance Sheet, Profit and Loss Account and other
documents of the subsidiary companies are not being
attached with the Balance Sheet of the Company.
Financial information of the subsidiary companies, as
required by the said approval, is disclosed in the Annual
Report. The Company will make available the Annual
Accounts of the subsidiary companies and the related
detailed information to any member of the Company who
may be interested in obtaining the same. The annual
accounts of the subsidiary companies will also be kept
open for inspection at the Registered Office of the
Company and that of the respective subsidiary
companies. The Consolidated Financial Statements
presented by the Company include financial results of
its subsidiary companies.

Details of major subsidiaries of the Company are covered
in Management’s Discussion and Analysis Report
forming part of the Annual Report.

Directors

Shri PMS Prasad and Shri R Ravimohan were appointed
as additional directors with effect from August 21, 2009.
They were also appointed as wholetime directors
designated as Executive Directors for five years. In terms
of Section 260 of the Companies Act, 1956 they shall hold
the office only upto the date of the ensuing Annual
General Meeting. The Company has received requisite
notices in writing from members proposing their

Pursuant to intimation from the Promoters, the names of
the Promoters and entities comprising ‘group’ are
disclosed in the Annual Report for the purpose of the
SEBI (Substantial Acquisition of Shares and Takeovers)
Regulations, 1997.

Directors’ Responsibility Statement

Pursuant to the requirement under Section 217(2AA) of
the Companies Act, 1956, with respect to Directors’
Responsibility Statement, it is hereby confirmed that :

(i)

(ii)

in the preparation of the annual accounts for the year
ended March 31, 2009, the applicable accounting
standards read with requirements set out under
Schedule VI to the Companies Act, 1956, have been
followed and there are no material departures from
the same;

the Directors have selected such accounting policies
and applied them consistently and made judgements
and estimates that are reasonable and prudent so as
to give a true and fair view of the state of affairs of
the Company as at March 31, 2009 and of the profit
of the Company for the year ended on that date;

(iii) the Directors have taken proper and sufficient care
for the maintenance of adequate accounting records
in accordance with the provisions of the Companies
Act, 1956 for safeguarding the assets of the Company
and for preventing and detecting fraud and other
irregularities; and

(iv) the Directors have prepared the annual accounts of

the Company on a ‘going concern’ basis.

8 6

Enhancing Lives. Energising India. The Reliance Way

Consolidated Financial Statements

Secretarial Audit Report

In accordance with the Accounting Standard AS-21 on
Consolidated Financial Statements read with Accounting
Standard AS-23 on Accounting for Investments in
Associates and AS-27 on Financial Reporting of Interest
in Joint Ventures, the audited Consolidated Financial
Statements are provided in the Annual Report.

As a measure of good corporate governance practice, the
Board of Directors of the Company appointed Dr. K.R.
Chandratre, Practicing Company Secretary, to conduct
Secretarial Audit of the Company. The Secretarial Audit
Report for the financial year ended March 31, 2009, is
provided in the Annual Report.

Auditors and Auditors’ Report

M/s. Chaturvedi & Shah, Chartered Accountants, M/s.
Deloitte Haskins & Sells, Chartered Accountants and
M/s. Rajendra & Co., Chartered Accountants, Statutory
Auditors of the Company, hold office until the conclusion
of the ensuing Annual General Meeting and are eligible
for reappointment.

The Company has received letters from all of them to the
effect that their reappointment, if made, would be within
the prescribed limits under Section 224(1B) of the
Companies Act, 1956 and that they are not disqualified
for reappointment within the meaning of Section 226 of
the said Act.

The Notes on Accounts referred to in the Auditors’
Report are self-explanatory and do not call for any further
comments.

Cost Auditors

The Central Government had directed an audit of the cost
accounts maintained by the Company in respect of
textiles, polyester and chemicals businesses. For
conducting the cost audit for these businesses for the
financial year ended March 31, 2009, the Central
Government has approved the appointment of the
following cost auditors –

(i) For the textiles business - Shri S. N. Bavadekar, Cost

Accountant;

(ii) For the chemicals business – Shri S. N. Bavadekar,
Cost Accountant, M/s. V. J. Talati & Co., Cost
Accountants, M/s. Diwanji & Associates, Cost
Accountants, M/s. K. G. Goyal & Associates, Cost
Accountants, Shri Suresh D. Shenoy, Cost
Accountant, M/s. Kiran J. Mehta & Co., Cost
Accountants; and

(iii) For the polyester business – Shri S. N. Bavadekar,
Cost Accountant, M/s. V. J. Talati & Co., Cost
Accountants, M/s. K. G. Goyal & Associates, Cost
Accountants, Shri R. C. Srivastava, Cost Accountant,
M/s. V. Kumar & Associates, Cost Accountants.

The Secretarial Audit Report confirms that the Company
has complied with all the applicable provisions of the
Companies Act, 1956, Depositories Act, 1996, Listing
Agreements with the Stock Exchanges, Securities
Contracts (Regulation) Act, 1956 and all the Regulations
and Guidelines of SEBI as applicable to the Company,
including the Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
Regulations, 1997 and the Securities and Exchange Board
of India (Prohibition of Insider Trading) Regulations, 1992.

Particulars of Employees

In terms of the provisions of Section 217(2A) of the
Companies Act, 1956, read with the Companies
(Particulars of Employees) Rules, 1975 as amended, the
names and other particulars of the employees are set out
in the annexure to the Directors’ Report.

However, having regard to the provisions of Section
219(1)(b)(iv) of the said Act, the Annual Report excluding
the aforesaid information is being sent to all the members
of the Company and others entitled thereto. Any member
interested in obtaining such particulars may write to the
Company Secretary at the registered office of the
Company.

Energy Conservation, Technology Absorption and
Foreign Exchange Earnings and Outgo

The particulars relating to energy conservation,
technology absorption, foreign exchange earnings and
outgo, as required to be disclosed under Section 217(1)(e)
of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 are provided in the Annexure-I to
this Report.

Transfer of amounts to Investor Education and
Protection Fund

Pursuant to the provisions of Section 205A(5) of the
Companies Act, 1956, dividends, interest on debentures
and matured debentures which remained unpaid or

unclaimed for a period of 7 years have been transferred
by the Company to the Investor Education and Protection
Fund.

Corporate Governance

The Company is committed to maintain the highest
standards of Corporate Governance. The Directors
adhere to the Corporate Governance requirements set out
by the Securities and Exchange Board of India and have
implemented all the stipulations prescribed. The Company
has also implemented several best corporate governance
practices as prevalent globally.

The Report on Corporate Governance as stipulated under
Clause 49 of the Listing Agreement forms part of the
Annual Report.

The requisite Certificate from the Auditors of the
Company, M/s. Chaturvedi & Shah, M/s. Deloitte Haskins
& Sells and M/s. Rajendra & Co., confirming compliance
with the conditions of Corporate Governance as
stipulated under the aforesaid Clause 49, is attached to
this Report.

Acknowledgement

Your Directors would like to express their appreciation
for assistance and co-operation received from the
financial institutions, banks, Government authorities,
customers, vendors and members during the year under
review. Your Directors also wish to place on record their
deep sense of appreciation for the committed services by
the executives, staff and workers of the Company.

For and on behalf of the Board of Directors

Mukesh D. Ambani
Chairman & Managing Director
October 7, 2009

Reliance Industries Limited

8 7

Annexure - I

Particulars required under the Companies (Disclosure
of Particulars in the Report of Board of Directors) Rules,
1988

A. CONSERVATION OF ENERGY

(a) Energy conservation measures taken:

Some major energy conservation measures carried out
during the year 2008-09 are listed below:

Barabanki Manufacturing Division

(cid:2) Use of Atmospheric Fluidised Bed Combustion
(AFBC) boiler consuming local fuel (rice husk) for
steam generation, where otherwise fuel oil-fired
boilers were used.

(cid:2) Replacement of low efficiency motors by high
efficiency motors for fans, blowers and pumps in
entire complex.

(cid:2) Stopping hot standby fuel-oil-fired-boiler by

improved running boiler reliability.

Dahej Manufacturing Division

(cid:2) Coating of cooling water pumps, providing Variable
Frequency Drive (VFD) on fire water jockey pump
and replacement of Glass Reinforced Plastic (GRP)
fans with Fiber Reinforced Plastic (FRP) fans in
cooling tower at Utilities.

(cid:2) Re-routed oxygen supply to Vinyl Chloride
Monomer (VCM) plant through Mono Ethylene
Glycol (MEG) plant oxygen compressors K-302A/
B (running), which otherwise was receiving oxygen
from dedicated oxygen compressors K-202A/B
(stopped) at VCM plant.

Hazira Manufacturing Division

(cid:2) Stopping 17 pack preheaters in DuPont Spinning
and 16 pack preheaters in Barmag Spinning by
improving pack life & optimizing pack inventory,
stopping one Dow heater in Continuous
Polymerization Plant CP-12 by improving reliability
of heaters, increasing Hot Condensate Tank (HCT)
pressure in CP-1 & 2 to 2.25 bar from 2.05 bar by re-
routing of CP-3 finisher Dow condensate line to
Cold Condensate Tank (CCT) from HCT.

(cid:2) Stopping one high pressure compressor at utility
plant by using floating header and optimising

8 8

Enhancing Lives. Energising India. The Reliance Way

demand side consumptions, by reducing quench
blower speed in DuPont & Barmag spinning by
optimising duct pressures, removing blind plates,
choked chilled water coils and adjusting positional
quench air dampers.

Jamnagar Manufacturing Division

(cid:2)

Increased hydrocarbon recovery by routing
propylene treater regeneration gases to Low Low
Pressure (LLP) flare gas recovery compressor.

(cid:2) Main Flare reduction from 20 Tons per Day (TPD)
to 8 TPD and Low Low Pressure (LLP) Flare
reduction from 20 TPD to 5 TPD has been achieved
by the Acoustic survey and N2 tracer technique,
done as a part of Flare Control Valves Audit.

(cid:2) Conducting Steam Leak survey across the complex

twice in the year.

(cid:2)

Installed 61 solar water heaters in the year. The
Project was started in 2006-07 and 857 solar water
heaters have been installed till date.

Nagpur Manufacturing Division

(cid:2) Optimising threshold level control of Centrifugal

Air compressors.

Nagothane Manufacturing Division

(cid:2) Performing catalyst replacement with new high
selective catalyst at Utilities/Air Separation Plant
(ASP).

Naroda Manufacturing Division

(cid:2) Augmenting steam header and replacement of
traps and vents in entire complex and condensate
recovery in Menswear Process House.

Patalganga Manufacturing Division

(cid:2)

Installation of heat exchanger for furnace heat
recovery at Fiber Utilities.

Silvassa Manufacturing Division

(cid:2) Unification of yarn suction blower in Barmag

Machine.

Vadodara Manufacturing Division

(cid:2) Upgradation of Methyl Acetylene and Propadiene
(MAPD) motor at Naphtha Cracker; stopping of
one boiler feed water pump, one blower, six aerators
at Inter Offsite Plant (IOP) unit and halting cooling

tower operation at Pyrolysis Gasoline
Hydrogenation – Benzene (PGH – BZ) unit.

(cid:2) Recovering heat from Medium Pressure (MP)
steam condensate by installation of Direct Steam
Generation (DSG) preheater and rerouting the
recycled surface condensate from cracker to boiler
deaerator, which otherwise was going to cooling
water at Naphtha cracker.

(cid:2) Recovering heat from Low Low Pressure (LLP)
steam from Low Density Poly Ethylene (LDPE)
plant for deaeration at Gas Turbine Power plant
(GTPP), which otherwise was vented to
atmosphere, steam reduction in deaerator by
optimising deaerator inlet temperature and Low
Pressure (LP) steam condensate recovery of both
the Drying Towers.

(b) Additional investments / proposals being implemented

for reduction of consumption of energy

Hazira Manufacturing Division

(cid:2) Replacement of Boiler Feed-water Pump Turbine

(BFPT) with motor in Cracker plant.

Jamnagar Manufacturing Division

(cid:2)

Improved Heat recovery from new Rich / Lean
Amine Plate & Frame type Heat Exchanger in Amine
Treatment Unit (ATU) - 4 by replacing Shell & Tube
Heat Exchanger.

(cid:2) Routing of Reformate Splitter Feed Preheater high
pressure steam condensate to medium pressure
steam condensate flash drum at Aromatics unit.

(cid:2) Routing of Line-D degassing column vent line to

fuel gas header at Polypropylene plant.

(cid:2) Providing flare flow meters at high pressure, low
pressure & Parex unit flare headers in Aromatics
unit.

Nagothane Manufacturing Division

(cid:2) Coating of cooling water pumps at Utilities.

(cid:2)

Installation of Solar water heater in Township
Utilities.

(cid:2) After coolers modification of 3 - stage Cracked

Gas Compressor (CGC) at Cracker Utilities.

(cid:2) Replacement of H - 14 furnace Induced Draft (ID)

fans at Gas Cracker Utilities.

Reliance Industries Limited

8 9

Nagpur Manufacturing Division

Hazira Manufacturing Division

(cid:2) Replacement of 16 nos. centrifugal pumps with high

efficiency pumps.

Naroda Manufacturing Division

(cid:2) Replacement of inefficient induction motors of

humidification and water plant.

(cid:2) Conversion of process house stenters for direct

gas firing from existing thermic fluid heater.

Silvassa Manufacturing Division

(cid:2) Replacement of old small size oil type compressors

with large size oil free compressors.

(cid:2) Estimated energy saving worth Rs. 169 lakh per
year has been achieved by stopping pack
preheaters thereby improving pack life and
improving reliability of heaters.

(cid:2) Energy saving worth Rs. 94 lakh per year has been
achieved by stopping one High Pressure (HP)
compressor in Utility plant.

(cid:2) Estimated Fuel saving worth Rs. 1,090 lakh per year
can be achieved by replacement of Boiler Feed-
water Pump Turbine (BFPT) with Boiler Feed water
pump & motor in Cracker plant.

Vadodara Manufacturing Division

Jamnagar Manufacturing Division

(cid:2) Changing of combined Feed Effluent Exchanger in
Pacol section from typical Shell and Tube type to
Helical Baffle type heat exchanger.

(c) Impact of measures at (a) & (b) given above, for
reduction of energy consumption and consequent
impact on the cost of production of goods

Barabanki Manufacturing Division

(cid:2) Saving fuel worth Rs. 185 lakh per year has been
achieved by use of Atmospheric Fluidised
Combustion Bed (AFCB) boiler consuming local
fuel (rice husk) for steam generation, where
otherwise fuel oil fired boilers were used.

(cid:2) Replacement of low efficiency motors by high
efficiency motors for fans, blowers & pumps in
entire complex have been completed, thus saving
766 MW/yr worth Rs. 17 lakh per year towards
power consumption.

(cid:2) Fuel savings of 29.2 MT per year worth Rs. 7 lakh
has been achieved by improved boiler reliability.

Dahej Manufacturing Division

(cid:2) Saving on power worth Rs. 14 lakh per year has
been achieved by providing VFD and replacing
GRP fans with FRP fans in cooling tower at Utilities.

(cid:2) Energy saving of 60,922 Million kilocalories per
year worth Rs. 33 lakh has been achieved by re-
routing oxygen supply to VCM plant.

(cid:2) Achieved fuel gas saving of 756 Metric Tons (MT)
per year worth Rs. 105 lakh per annum by increasing
hydrocarbon recovery.

(cid:2) Achieved steam leak reduction of 26 Tons per Day

(TPD) by internal steam leak survey.

(cid:2) An estimated saving of Rs. 571 lakh per year can
be achieved by heat recovery from new Rich / Lean
Amine Plate & Frame type Heat Exchanger in Amine
Treatment Unit (ATU) - 4 by replacing Shell & Tube
Heat Exchanger.

(cid:2) Saving potential of Rs. 125 lakh per year in terms
of low pressure steam recovered after flashing at
Aromatics unit.

(cid:2) Saving of 0.72 Tons per day or equivalent estimated
saving of Rs. 50 lakh per year achieved by routing
of Line-D degassing column at Polypropylene
plant.

(cid:2) An estimated energy saving quantity of 483 MT
per year worth Rs. 95 lakh per annum has been
achieved by reduction in flare loss by providing
flare flow meters at High Pressure, Low Pressure
& Parex Flare headers in Aromatics unit.

Nagpur Manufacturing Division

(cid:2) Achieved energy saving worth Rs. 14 lakh per
annum by reduction in power consumption of
centrifugal air compressors.

(cid:2) Energy saving worth Rs. 17 lakh per year can be
achieved by replacement of 16 nos centrifugal
pumps with high efficiency pumps.

9 0

Enhancing Lives. Energising India. The Reliance Way

Nagothane Manufacturing Division

(cid:2) Reduction in power consumption of 5,340 Million
kilocalories per year worth Rs. 168 lakh has been
achieved by reducing Mono Ethylene Glycol
(MEG) Plant oxygen requirement at Utilities/Air
Separation Plant (ASP).

(cid:2) Energy saving worth Rs. 430 lakh per year can be
achieved considering the energy conservation
measures,
/ under
that are proposed
implementation.

Naroda Manufacturing Division

(cid:2) Steam saving of 41 ton / day by augmenting steam
header and steam saving of 7 ton / day by
condensate recovery worth Rs. 59 lakh per year
has been achieved in Menswear Process House.

(cid:2) Power saving of 1,878.4 Mega Watt-hour per year
(MW/yr) worth Rs. 6 lakh is estimated by
replacement of inefficient induction motors.

(cid:2) Estimated power saving of 853.2 MW/yr and fuel
saving of 371,790 Standard cubic Meter per year,
in terms of gas consumption by conversion of
process house stenters.

Patalganga Manufacturing Division

(cid:2) Energy saving worth Rs. 174 lakh per year has
been achieved by recovering heat from Low Low
Pressure (LLP) steam at Gas Turbine Power plant
(GTPP), and Steam Reduction in Deaerator of both
the Drying Towers.

(cid:2) Saving fuel worth Rs. 183 lakh per annum in Pacol
feed pre-heater by switching from typical Shell and
Tube type to Helical Baffle type heat exchanger.

(d) Total energy consumption and energy consumption
per unit of production as per Form ‘A’ attached hereto

B. TECHNOLOGY ABSORPTION

(e) Efforts made in technology absorption - as per Form

B given below:

Form B

Research and Development (R&D)

1. Specific areas in which the research and development

(R&D) is being carried out by the Company

(cid:2)

Improved propylene recovery at the refinery.

(cid:2) Propylene odor control.
(cid:2) Development and use of refinery models.
(cid:2) Development

improved

paraffin

dehydrogenation catalysts.

(cid:2) Energy saving of 775 million kilocalories per year
worth Rs. 16 lakh achieved at Fiber Utilities.

(cid:2) Unsaturates reduction in Pentane streams.
(cid:2) Catalyst Technology Development

for

Silvassa Manufacturing Division

(cid:2) Energy saving of 7.3 Kilocalories per Kg of product
worth Rs. 50 Lakh per annum has been achieved
by unification of yarn suction blower.

(cid:2) Potential saving of 99.2 Kilocalories per Kg of
product worth Rs. 676 lakh per annum can be
achieved by replacement of old small size oil type
compressors with large size oil free compressors.

Vadodara Manufacturing Division

(cid:2) Energy saving worth Rs. 160 lakh per year has
been achieved by optimisation of plant operation.

(cid:2) Achieved reduction of MP steam to DSG reboiler
at 1.7 TPH with additional benefit of 0.5 Million
kilocalories per year in Poly Butadiene Rubber
(PBR) -1 heat recovery scheme worth Rs. 92 lakh
per year by installation of Direct Steam Generation
(DSG) preheater and rerouting the recycled surface
condensate from cracker to boiler deaerator.

Polypropylene.

(cid:2) Eco-friendly recovery of ammonium sulfate from

wastes.

(cid:2) Development of a green process for butadiene

polymerization.

(cid:2) Production of ethanol from biomass.
(cid:2) Process for comonomers from ethylene.
(cid:2) Composite adsorbents for Solution Polyethylene.
Improved bimodal High Density Polyethylene.
(cid:2) New PTA (Purified Terephthalic Acid) technology

(cid:2)

development.

(cid:2) Catalyst recovery from PTA plants.
(cid:2) Single stage separation of PTA.
(cid:2) Safe handling of PTA residues.

(cid:2)

Improved furnace technology in Cracker plants.
(cid:2) Substitution of Di-methyl Di- Sulphide (DMDS) in

Cracker Plants.

(cid:2) Development of Cationic Polyester in Continuous

Reactor.

Reliance Industries Limited

9 1

(cid:2) Development of Full Dull Luster Polyester in

3. Future plan of action

Continuous Reactor.

(cid:2) Development of polybutylene terephthalate (PBT)

yarns.

(cid:2) Spin finish development for flat yarns and partially

oriented yarn (POY).

(cid:2) Magic WrapZ development for enhancing shelf

life of fruits and vegetables.

(cid:2) New Catalyst systems development for PET.
(cid:2) Technology development of Antimicrobial

Polyester.

(cid:2) Development of Carbon fiber.
(cid:2) Development of unique solar PV Products.
(cid:2) Development of high yielding varieties of Biofuel
crops like Jatropha, Pongamia, Calophyllum,
Madhuka and Simarouba.

2. Benefits derived as a result of the above R&D

(cid:2) Potential benefits of Rs. 50 crores/annum from

(cid:2)

improved propylene recovery at refinery.
Improved predictive capabilities for refinery
optimization with an estimated benefit of Rs. 40
crores/annum.

(cid:2) Potential benefits of Rs. 9 crores/annum from

pentane recovery.

(cid:2) Potential benefits of Rs. 60 crores/annum from

Polypropylene odor control.

(cid:2) Potential value generation of Rs. 40 crores/annum

from Polymer Catalyst Technology.

(cid:2) Potential benefit of Rs. 5 crores/annum from

ethylene based comonomers.

(cid:2) Potential for Rs. 5 crores/annum benefit from
composite absorbents for solution Polyethylene.
(cid:2) Potential benefit of Rs. 8 crores/annum from
improved bimodal High Density Polyethylene.
(cid:2) Usage of improved furnace technology with a

potential benefit of Rs. 10 crores /annum.

(cid:2) Potential benefit of Rs. 2 crores/annum from in-

house manufacturing of n-Hexane.

(cid:2) Benefits of Rs. 22 crores/annum from new products

and additives in Polyester Technology.

(cid:2) Potential new business opportunity over Rs. 60

crore/annum.

(cid:2) Cost reduction and propylene yield improvements.
(cid:2) Processing of heavier crudes.

(cid:2)

Improved vacuum gas oil recovery.
Improved process of coke yield reduction.

(cid:2) Development of new process for upgrading of light

olefins to diesel.

(cid:2) Regenerable adsorbents for removal of unsaturates

from hydrocarbons.

(cid:2) Development of new generation high yield

paraffins dehydrogenation catalysts.

(cid:2) Methodologies for enhancement of shelf life of

fruits and vegetables.

(cid:2) Long chain branching of Polypropylene for cellular

products.

(cid:2) Development of novel nano- materials for polymers

and catalysts.

(cid:2) Development of living polymerization catalysts

for Ultra high molecular weight PE.

(cid:2) Technology development for PVC wastewater

treatment.

(cid:2) Development of high performance random

Polypropylene grades.

(cid:2) Recovery of precious metals from spent catalysts.
Isolation of value added chemicals from PTA
residue.

(cid:2)

(cid:2) New chain transfer agent for butadiene

polymerization.

(cid:2) Pilot plant trials to validate the concept of new

PTA technology.

(cid:2) Modeling and Simulation of PX (Paraxylene)

(cid:2)

oxidation reactor.
Implementation of single stage separation facility
for PTA.

(cid:2) Full Continuous Polymerization run of differentiated

products in Polyester.

(cid:2) Continue with Magic WrapZ development and

commercialization activities.

(cid:2) Process development for Micro denier Partially

Oriented yarn (POY).

(cid:2) Pilot plant trials for carbon fiber.
(cid:2) Development of Market specific unique PV

Products.

(cid:2) Better per hectare productivity of Biofuel crops.

(cid:2) Continue with crop improvement and cultivation

practice in Biofuel crop.

9 2

Enhancing Lives. Energising India. The Reliance Way

4. Expenditure on R & D

(cid:2) For the first time an Indian clay is being used for

Rs Crore

olefin reduction in a refinery.

187.48
a) Capital
149.26
b) Revenue
c) Total
336.74
d) Total R &D expenditure as a percentage of total

turnover is 0.23 %

Technology absorption, adoption and innovation
1. Efforts, in brief, made towards technology absorption,

adoption and innovation:
(cid:2) Higher throughputs from FCC optimization.
(cid:2) Upgrading of coker products.

(cid:2)

Enhanced diesel yields in FCC.
Improved catalyst quality control.

(cid:2)· Improved power recovery turbine reliability.
(cid:2) Trial completed for in-house developed and

manufactured dehydrogenation catalyst.

(cid:2) Optimization of defluoridation process.

(cid:2)

Indigenous clay for unsaturated reduction.

(cid:2) Slurry Polymerization in different solvents for Ultra

high molecular weight PE.

(cid:2) Refinery streams mapping for value addition &

operational ease.

(cid:2) Optimization of Methyl Acetate hydrolysis plants.
(cid:2) Cracker Online Optimizer model developed and

implemented.
In-house technology development for productivity
enhancement in Polyester.
PVC segregation during PET bottles recycling.

(cid:2)

2. Benefits derived as a result of the above efforts

(cid:2) Higher throughputs from FCC optimization

resulting in Rs. 50 crores /annum.

(cid:2) Reduction in specific consumption of acetic acid
based on optimization of Methyl Acetate
hydrolysis.

(cid:2)

Productivity increase of 20% through in-house
technology developments in Polyester.

Information regarding Imported Technology

Product

Technology Year of
Import
Import
From

2008-09

Scientific
Design

High selectivity
catalsyt for MEG
Production at
Dahej
Manufacturing
Division
Catalyst for VCM Ineos
Polymerization
at PVC plant,
at Vadodara
Manufacturing
Division

Status
implement-
ation /
absorption
Succesfu-
lly absor-
bed and
under
implemen-
tation
Successf-
ully absor-
bed and
implemented

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

(f) Activities relating to export, initiatives to
increase exports, Developments of New export
markets for Products and Services and Export
Plan.

The Company has continued to maintain focus
on and avail of export opportunities based on
economic considerations. During the year the
Company has exports (FOB) value worth
89,199 crore ($ 17,587 million).

(cid:2) Upgrading of coker products resulting in Rs. 60

(g) Total Foreign exchange earned and used

crores /annum of benefit.

(cid:2)

Improved catalyst quality control resulting in Rs.
4 crores /annum of benefit.

Improved power recovery turbine reliability
resulting in Rs. 2.5 crores /annum of benefit.

(cid:2) Projected benefit of over Rs. 11 crores/annum from
use of in-house developed dehydrogenation
catalyst.

(cid:2) Savings from increased cycle length with better

quality of treated water after defluoridation.

a. Total Foreign Exchange Earned

b. Total savings in foreign exchange

through products manufactured by
the Company and deemed exports
(USD 13,847.69 Million)

sub total (a+b)

c. Total foreign Exchange used

Rs. Crore

86,916.78

70,235.50

1,57,152.28

1,27,464.00

Reliance Industries Limited

9 3

Current Year

Previous Year

4,745.13
203.32
4.28

26,273.13
4.57
1,670.90
6.36

751.69
4.28
5.71

52,947.57
4.28
3.35

4,732.39
167.38
3.54

23,738.67
4.63
1,181.36
4.98

1,298.81
3.99
5.39

55,396.09
4.29
2.37

32.16

24.37

316,665.11
706.25
22.30

117,783.37
228.98
19.44

1,364,879.10
1,263.44
9,256.78

19,808.80
4.12
2,081.01

257,000.51
504.08
19.61

25,496.61
60.11
23.58

1,358,268.20
792.96
5,838.06

20,429.00
3.28
1,607.15

1,952,133.20

2,473,129.32

1,839,821.77

1,213,235.02

Form ‘A’
Form for disclosure of particulars with respect to conservation of energy
Part ‘A’

Power & Fuel Consumption

1. Electricity

a) Purchased Units ( Lacs )

Total Cost ( Rs. In Crores ) #
Rate/Unit (Rs.) #

b) Generation through captive

power facilities
1) Through Steam Turbine/Generator

Units ( Lacs )
KWH per unit of fuel
Total Cost ( Rs. In Crores )
Cost/Unit (Rs.)

c) Own Generation

1) Through Diesel Generator

Units ( Lacs )
KWH per unit of fuel
Fuel Cost/Unit (Rs.)

2) Through Steam Turbine/Generator

Units ( Lacs )
KWH per unit of fuel
Fuel Cost/Unit (Rs.)

3) Through Wind Mill Turbine

Units ( Lacs )

Purchased Fuels consumed

2. Furnace Oil

Quantity ( K.Ltrs )
Total Cost ( Rs. In crores )
Average rate per Ltr.( Rs )

3. Diesel Oil

Quantity ( K.Ltrs )
Total Cost ( Rs. In crores )
Average rate per Ltr.( Rs )

4. Others
(a) Gas

Quantity ( 1000 M3 )
Total Cost ( Rs. In crores )
Average rate per 1000M3 ( Rs )

(b) Coal / Husk
Quantity
Total Cost ( Rs. In crores )
Average rate per MT (Rs.)

Internal Fuels consumed

5. Gas

Quantity ( 1000 M3 )

6. GT fuels

Quantity ( K.Ltrs )
# Excluding Demand Charges

9 4

Enhancing Lives. Energising India. The Reliance Way

B. Consumption per unit of Production

Product

Electricity
(KWH)

Furnace
Oil/ HSD/ HFHSD
(Ltrs)

LSHS
(kgs)

Gas
(SM3)

Fabrics ( Per 1000 mtrs)
PFY (per MT)
PSF (per MT)
PTA (per MT)
LAB (per MT)
MEG (per MT)
PVC (per MT)
HDPE (per MT)
PP (per MT)
FF (per MT)
PET (per MT)
PX (per MT)
Petro-products (per MT)
PBR (per MT)
Caustic Soda (per MT)
Acrylonitrile (per MT)

Current Previous
Year
4,085
861
381
309
575
527
454
541
323
594
336
198
66
707
2,562
593

Year
4,670
769
365
310
615
512
438
560
333
668
291
198
73
669
2,706
690

Current
Year
2
39
36
6
84
-
-
-
-
42
-
10
5
-
-
-

Previous Current Previous Current
Year Previous Previous
Year
-
-
488
16
11
27
2
1
37
-
-
-
220
20
114
2
28
39
1
7
26
2
3
14
-
2
17
-
-
79
-
-
46
-
-
187
-
-
39
11
217
244
76
3
15
4 (15)
16

-
25
33
6
52
-
-
-
-
45
-
10
-
-
-
-

Previous
Year
453
39
56
-
119
36
36
25
25
53
72
228
41
479
88
(59)

For and on behalf of the Board of Directors

Mukesh D. Ambani
Chairman & Managing Director

October 7, 2009

Auditors’ Certificate on Corporate
Governance
To the Members,

Reliance Industries Limited

We have examined the compliance of conditions of
Corporate Governance by Reliance Industries Limited, for
the year ended on 31st March 2009, as stipulated in Clause
49 of the Listing Agreement of the said Company with
stock exchanges.

The compliance of conditions of Corporate Governance is
the responsibility of the Management. Our examination
has been limited to a review of the procedures and
implementation thereof adopted by the Company for
ensuring compliance with the conditions of the Corporate
Governance as stipulated in the said Clause. It is neither
an audit nor an expression of opinion on the financial
statements of the Company.

In our opinion and to the best of our information and
according to the explanations given to us, and based on
the representations made by the Directors and the
Management, we certify that the Company has complied
with the conditions of Corporate Governance as stipulated
in Clause 49 of the above-mentioned Listing Agreement.

We state that such compliance is neither an assurance as
to future viability of the Company nor of the efficiency or
effectiveness with which the management has conducted
the affairs of the Company.

For Chaturvedi & Shah For Deloitte Haskins & Sells For Rajendra & Co.
Chartered Accountants
Chartered Accountants Chartered Accountants

D. Chaturvedi
Partner
Membership No.5611

A. Siddharth
Partner
Membership No.31467

A. R. Shah
Partner
Membership No.47166

Place : Mumbai
Dated : October 7, 2009

Reliance Industries Limited

9 5

Persons constituting group coming within the definition of “group” for the purpose of Regulation 3(1)(e)(i) of the Securitities
and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, include the following:

Sr No Name of the Entity

Aavaran Textiles Private Limited
1.
Amur Trading Private Limited
2.
Anumati Mercantile Private Limited
3.
Bahar Trading Private Limited
4.
Bhumika Trading Private Limited
5.
Deccan Finvest Private Limited
6.
Ekansha Enterprise Private Limited
7.
Eklavya Mercantile Private Limited
8.
Farm Enterprises Limited
9.
Hercules Investments Private Limited
10.
Jagadanand Investments And Trading Company Private Limited
11.
Jagdishvar Investments And Trading Company Private Limited
12.
Jogiya Traders Private Limited
13.
Kankhal Investments And Trading Company Private Limited
14.
Kardam Commercials Private Limited
15.
Kedareshwar Investments And Trading Company Private Limited
16.
Krish Commercials Private Limited
17.
18.
Kshitij Commercials Private Limited
19. Madhuban Merchandise Private Limited
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.

Nikhil Investments Company Private Limited
Nityapriya Commercials Private Limited
Ornate Traders Private Limited
Pams Investments And Trading Company Private Limited
Petroleum Trust
Priyash Commercials Private Limited
Real Fibres Private Limited
Reliance Aromatics and Petrochemicals Private Limited
Reliance Chemicals Limited
Reliance Consolidated Enterprises Private Limited
Reliance Consultancy Services Private Limited
Reliance Energy and Project Development Private Limited
Reliance Global Commercial Limited
Reliance Industrial Infrastructure Limited
Reliance Petroinvestments Limited
Reliance Polyolefins Limited
Reliance Universal Commercial Limited
Reliance Universal Enterprises Limited
Reliance Welfare Association
Sanatan Textrade Private Limited
Silvassa Hydrocarbons And Investments Private Limited
Synergy Synthetics Private Limited
Terene Industries Private Limited
Tresta Trading Private Limited
Vita Investments & Trading Company Private Limited

9 6

Enhancing Lives. Energising India. The Reliance Way

Financial Statements & Notes

Reliance Industries Limited

9 7

of the Directors is disqualified as on March 31, 2009
from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies
Act, 1956;

in our opinion and to the best of our information and
according to the explanations given to us, the said accounts
read together with the Significant Accounting Policies and
notes thereon give the information required by the
Companies Act, 1956, in the manner so required and give a
true and fair view in conformity with the accounting
principles generally accepted in India:

(i)

(ii)

in the case of the Balance Sheet, of the state of affairs
of the Company as at March 31, 2009;

in the case of the Profit and Loss Account, of the
profit for the year ended on that date; and

(iii) in the case of the Cash Flow Statement, of the cash

flows for the year ended on that date.

For Chaturvedi & Shah For Deloitte Haskins & Sells
Chartered Accountants Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner
Membership No.: 5611 Membership No.: 31467

A. Siddharth
Partner

A. R. Shah
Partner
Membership No.: 47166

Mumbai

October 7, 2009

Auditors Report

To the Members of
Reliance Industries Limited

1. We have audited the attached Balance Sheet of RELIANCE
INDUSTRIES LIMITED as at March 31, 2009, the Profit
and Loss Account and the Cash Flow Statement for the
year ended on that date annexed thereto. These financial
statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion
on these financial statements based on our audit.

2. We conducted our audit in accordance with the Auditing
Standards generally accepted in India. Those standards
require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and
significant estimates made by management, as well as
evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our
opinion.

3. As required by the Companies (Auditor’s Report) Order
2003 issued by the Central Government of India in terms
of sub-section (4A) of Section 227 of the Companies Act,
1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.

Further to our comments in the Annexure referred to in
paragraph 3 above, we report that:

a. We have obtained all the information and explanations
which to the best of our knowledge and belief were
necessary for the purposes of our audit;

in our opinion, proper books of account, as required
by law, have been kept by the Company, so far as
appears from our examination of those books;

the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in
agreement with the books of account;

in our opinion, the Balance Sheet, Profit and Loss
Account and Cash Flow Statement dealt with by this
report are in compliance with the Accounting Standards
referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;

on the basis of written representations received from
the Directors as on March 31, 2009 and taken on
record by the Board of Directors, we report that none

9 8

Enhancing Lives. Energising India. The Reliance Way

Annexure to Auditors’ Report
Referred to in Paragraph 3 of our report of even date

In respect of its fixed assets:
a.

The Company has maintained proper records showing
full particulars including quantitative details and
situation of fixed assets on the basis of available
information.

b. As explained to us, all the fixed assets have been
physically verified by the management in a phased
periodical manner, which in our opinion is reasonable,
having regard to the size of the Company and nature
of its assets. No material discrepancies were noticed
on such physical verification.
In our opinion, the Company has not disposed off a
substantial part of its fixed assets during the year and
the going concern status of the Company is not
affected.

In respect of its inventories:
a.

The inventories have been physically verified during
the year by the management. In our opinion, the
frequency of verification is reasonable.
In our opinion and according to the information and
explanations given to us, the procedures of physical
verification of inventories followed by the
management are reasonable and adequate in relation
to the size of the Company and the nature of its
business.
The Company has maintained proper records of
inventories. As explained to us, there were no material
discrepancies noticed on physical verification of
inventories as compared with the book records.
In respect of the loans, secured or unsecured, granted or
taken by the Company to/from companies, firms or other
parties covered in the Register maintained under Section
301 of the Companies Act, 1956:
a.

The Company has given loans to a wholly owned
subsidiary of the Company. In respect of the said
loans, the maximum amount outstanding at any time
during the year is Rs. 6,648.59 crore and the year-end
balance is Rs. 4,104.04 crore.
In our opinion and according to the information and
explanations given to us, the rate of interest, where
applicable and other terms and conditions, are not
prima facie prejudicial to the interest of the Company.
The principal amounts are repayable on demand and
there is no repayment schedule. The interest, where
applicable, is payable on demand.
In respect of the said loans, the same are repayable on
demand and therefore the question of overdue amounts
does not arise. In respect of interest, where applicable,
there are no overdue amounts.
The Company has not taken any loan during the year
from companies, firms or other parties covered in the

Register maintained under Section 301 of the
Companies Act, 1956. Consequently, the requirements
of Clauses (iii) (f) and (iii) (g) of paragraph 4 of the
Order are not applicable.

In our opinion and according to the information and
explanations given to us, there is an adequate internal control
system commensurate with the size of the Company and
the nature of its business for the purchase of inventory
and fixed assets and also for the sale of goods and services.
During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal
control system.
In respect of the contracts or arrangements referred to in
Section 301 of the Companies Act, 1956:
a.

In our opinion and according to the information and
explanations given to us, the transactions made in
pursuance of contracts or arrangements, that need to
be entered in the Register maintained under section
301 of the Companies Act, 1956 have been so entered.
In our opinion and according to the information and
explanations given to us, the transactions made in
pursuance of contracts / arrangements entered in the
Register maintained under section 301 of the
Companies Act, 1956 and exceeding the value of Rs.
5,00,000 in respect of each party during the year have
been made at prices which appear reasonable as per
information available with the Company.
6. According to the information and explanations given to us,
the Company has not accepted any deposits from the
public. Therefore, the provisions of Clause (vi) of
paragraph 4 of the Order are not applicable to the Company.
In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
The Central Government has prescribed maintenance of
cost records under Section 209 (1) (d) of the Companies
Act, 1956 in respect of certain manufacturing activities of
the Company. We have broadly reviewed the accounts and
records of the Company in this connection and are of the
opinion, that prima facie, the prescribed accounts and
records have been made and maintained. We have not,
however, carried out a detailed examination of the same.
In respect of statutory dues:
a. According to the records of the Company, undisputed
statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees’ State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and any other
statutory dues have been generally regularly deposited
with the appropriate authorities. According to the
information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid
dues were outstanding as at March 31, 2009 for a

Annexure to Auditors’ Report
Referred to in Paragraph 3 of our report of even date

Reliance Industries Limited

9 9

period of more than six months from the date of
becoming payable. Amounts due and outstanding for
a period exceeding 6 months as at March 31, 2009 to
be credited to Investor Education and Protection Fund
of Rs. 7.21 crore, which are held in abeyance due to
pending legal cases, have not been considered.
The disputed statutory dues aggregating to Rs. 814.80
crore, that have not been deposited on account of
disputed matters pending before appropriate
authorities are as under:
Nature of
the Dues

Amount
(Rs. in
crore)

Sr.
No.

Name of
the statute

Income Tax
Act, 1961

Income-Tax/
Penalties

Central Excise
Act, 1944

Excise Duty
and Service
Tax

Central Sales Tax
Act, 1956 and
Sales Tax Act
of various states

Sales Tax/
VAT and
Entry Tax

Customs Act,
1962

Custom Duty

54.82

427.43

16.83

89.44

22.29

55.57

96.60

0.89
30.67

20.26

Period to
which the
amount
relates
Various years
from 2001-02
to 2007-08
1994-95 and
2006-07

Forum where
dispute is
pending

Commissioner of
Income-Tax
(Appeals)
Income-Tax
Appellate
Tribunal

Commissioner of

Various years
from 1991-1992 Central Excise
to 2007-2008

(Appeals)

Various years
from 1986-87
to 2007-08

Various years
from 1991-92
to 2006-07

Various years
from 1992-93
to 2006-07

Various years
from 1996-97
to 2003-04

2007-08
Various years
from 2002-03
to 2007-08

2004-05
and 2005-06

Central Excise
and Service Tax
Appellate
Tribunal

Joint/ Deputy
Commissioner/
Commissioner
(Appeals)

Sales Tax
Appellate
Tribunal

High Court

Supreme Court
Commissioner
of Customs
(Appeals)

Central Excise
and Service Tax
Appellate
Tribunal

TOTAL

8 1 4 . 8 0

10. The Company does not have accumulated losses at the end
of the financial year. The Company has not incurred cash
losses during the financial year covered by the audit and in
the immediately preceding financial year.

11. Based on our audit procedures and according to the
information and explanations given to us, we are of the
opinion that the Company has not defaulted in repayment
of dues to financial institutions, banks and debenture
holders.
In our opinion and according to the explanations given to
us and based on the information available, no loans and
advances have been granted by the Company on the basis

12.

13.

of security by way of pledge of shares, debentures and
other securities.
In our opinion, the Company is not a chit fund/ nidhi/
mutual benefit fund/ society. Therefore, the provisions of
clause (xiii) of paragraph 4 of the Order are not applicable
to the Company.

14. The Company has maintained proper records of the
transactions and contracts in respect of dealing or trading
in shares, securities, debentures and other investments and
timely entries have been made therein. All shares, securities,
debentures and other investments have been held by the
Company in its own name

15. The Company has given guarantees for loans taken by
Others from banks and financial institutions. According to
the information and explanations given to us, we are of the
opinion that the terms and conditions thereof are not prima
facie prejudicial to the interests of the Company.

16. The Company has raised new term loans during the year.
The term loans outstanding at the beginning of the year
and those raised during the year have been applied for the
purposes for which they were raised.

17. According to the information and explanations given to us
and on an overall examination of the Balance Sheet of the
Company, we are of the opinion that there are no funds
raised on short-term basis that have been used for long-
term investment.

18. During the year, the Company has allotted equity shares
on preferential basis to parties and companies covered in
the Register maintained under Section 301 of the Companies
Act, 1956 consequent upon conversion of warrants. The
price at which these equity shares have been issued has
been determined as per the Securities and Exchange Board
of India (Disclosure and Investor Protection) Guidelines,
2000, which in our opinion, is not prejudicial to the interest
of the Company.

19. The Company has created securities / charges in respect of

secured debentures issued.

20. The Company has not raised any monies by way of public

21.

issues during the year.
In our opinion and according to the information and
explanations given to us, no material fraud on or by the
Company has been noticed or reported during the year.

For Chaturvedi & Shah For Deloitte Haskins & Sells
Chartered Accountants Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner
Membership No.: 5611 Membership No.: 31467

A. Siddharth
Partner

A. R. Shah
Partner
Membership No.: 47166

Mumbai

October 7, 2009

100

Enhancing Lives. Energising India. The Reliance Way

Reliance Industries Limited
Balance Sheet as at 31st March, 2009

SOURCES OF FUNDS

Shareholders’ Funds
Share Capital
Equity Share Suspense
[Refer Note 3, Schedule 'O']
Equity Share Warrants
Reserves and Surplus

Loan Funds
Secured Loans
Unsecured Loans

Deferred Tax Liability
TOTAL

APPLICATION OF FUNDS

Fixed Assets
Gross Block
Less: Depreciation
Net Block
Capital Work-in-Progress

Investments
Current Assets, Loans and Advances
Current Assets
Inventories
Sundry Debtors
Cash and Bank Balances
Other Current Assets

Loans and Advances

Less: Current Liabilities and Provisions
Current Liabilities
Provisions

Net Current Assets

TOTAL
Significant Accounting Policies
Notes on Accounts

As per our Report of even date

Schedule

As at
31st March, 2009

(Rs. in crore)

As at
31st March, 2008

1,573.53
69.25

-
1,24,730.19

10,697.92
63,206.56

1,49,628.70
49,285.64
1,00,343.06
69,043.83

14,836.72
4,571.38
22,176.53
47.86
41,632.49
13,079.78
54,712.27

32,691.00
3,010.90
35,701.90

‘A’

‘B’

‘C’
‘D’

‘E’

‘F’

‘G’

‘H’

‘I’

‘N’
‘O’

1,453.39
-

1,682.40
78,312.81

1,26,372.97

81,448.60

6,600.17
29,879.51

73,904.48
9,726.30
2,10,003.75

36,479.68
7,872.54
1,25,800.82

1,04,229.10
42,345.47
61,883.63
23,005.84

1,69,386.89
21,606.49

84,889.47
22,063.60

14,247.54
6,227.58
4,280.05
72.54
24,827.71
18,058.13
42,885.84

21,045.47
2,992.62
24,038.09

19,010.37

2,10,003.75

18,847.75

1,25,800.82

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. Siddharth
Partner

A.R. Shah
Partner

Mumbai
October 7, 2009

V.M. Ambani
Company Secretary

Chairman & Managing Director

Executive Directors

For and on behalf of the Board
M.D. Ambani
N.R. Meswani
H.R. Meswani
H.S. Kohli
P.M.S. Prasad
R. Ravimohan
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi

}
Dr. R. A. Mashelkar} Directors

Reliance Industries Limited
Profit and Loss Account for the year ended 31st March, 2009

Reliance Industries Limited

101

Schedule

2008-09

(Rs. in crore)

2007-08

1,46,328.07
4,480.60

1,39,269.46
5,826.46

INCOME

Turnover
Less: Excise Duty / Service Tax Recovered
Net Turnover
Other Income
Variation in Stocks

‘J’
‘K’

EXPENDITURE
Purchases
Manufacturing and Other Expenses
Interest and Finance Charges
Depreciation
Less: Transferred from Revaluation Reserve
[Refer Note 6, Schedule 'O']
Adjustment Pursuant to the Scheme of Amalgamation including
write off of Investments in Reliance Petroleum Limited
Less: Transferred from General Reserve
[Refer Note 3, Schedule 'O']

‘L’
‘M’

7,182.43
1,987.14

7,728.92
7,728.92

Profit before Tax

Provision for Current Tax
Provision for Fringe Benefit Tax
Provision for Deferred Tax

Profit after Tax

Add: Balance brought forward from Previous year
Excess Provision for Tax for earlier years

Amount Available for Appropriations

APPROPRIATIONS
General Reserve
Debenture Redemption Reserve
Interim Dividend on Equity Shares
Proposed Dividend on Equity Shares
Tax on Dividend

Balance Carried to Balance Sheet

11,728.92
340.05
1,897.05
-
322.40

Basic and Diluted Earnings per Share of face value of
Rs. 10 each (in Rupees)
Basic and Diluted Earnings per Share of face value of
Rs. 10 each (in Rupees) (Before exceptional items)
[Refer Note 15, Schedule 'O']
Significant Accounting Policies
Notes on Accounts
As per our Report of even date

‘N’
‘O’

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. Siddharth
Partner

A.R. Shah
Partner

Mumbai
October 7, 2009

V.M. Ambani
Company Secretary

1,41,847.47
2,059.88
427.56
1,44,334.91

2,205.27
1,16,755.89
1,745.23

1,33,443.00
5,628.79
(1,867.16)
1,37,204.63

6,007.71
1,02,262.28
1,077.36

6,627.85
1,780.71

5,195.29

4,847.14

-
1,25,901.68

18,433.23
1,206.50
56.87
1,860.54
15,309.32
4,363.29
-
19,672.61

14,288.42

5,384.19

96.76

98.83

-
-

-
1,14,194.49

23,010.14
2,604.96
47.00
899.89
19,458.29
2,765.37
48.10
22,271.76

16,000.00
-
-
1,631.24
277.23

17,908.47

4,363.29

134.19

105.32

Chairman & Managing Director

Executive Directors

For and on behalf of the Board
M.D. Ambani
N.R. Meswani
H.R. Meswani
H.S. Kohli
P.M.S. Prasad
R. Ravimohan
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi

}
Dr. R. A. Mashelkar} Directors

102

Enhancing Lives. Energising India. The Reliance Way

Reliance Industries Limited
Cash Flow Statement for the year 2008-09

A: CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit before tax as per Profit and Loss Account

18,433.23

23,010.14

2008-09

(Rs. in crore)

2007-08

2.14

3.44

7.08

7,182.43

(1,987.14)

575.57

(425.40)

(29.81)

(1,564.97)

1,745.23

(109.91)

159.01

(3,847.36)

Adjusted for:

Net Prior Year Adjustments

Diminution in the value of investment

(Profit) / Loss on Sale / Discarding of Fixed Assets (net)

Depreciation

Transferred from Revaluation Reserve

Effect of Exchange Rate Change

Profit on Sale of Investments (net)

Exceptional Item

Dividend Income

Interest / Other Income

Interest and Finance Charges

Operating Profit before Working Capital Changes

Adjusted for:

Trade and Other Receivables

Inventories

Trade Payables

Cash Generated from Operations

Net Prior Year Adjustments

Taxes Paid

Net Cash from Operating Activities

B: CASH FLOW FROM INVESTING ACTIVITIES:

Purchase of Fixed Assets

Sale of Fixed Assets

Purchase of Investments

Sale of Investments

Movement in Loans and Advances

Interest Income

Dividend Income

Net Cash Used in Investing Activities

2.02

13.92

1.79

6,627.85

(1,780.71)

(398.62)

(118.87)

(4,733.50)

(18.37)

(662.40)

1,077.36

5,508.57

23,941.80

10.47

23,020.61

(3,930.18)

(2,111.03)

2,934.09

(3,798.26)

20,143.54

(2.14)

(1,895.54)

18,245.86

(24,712.78)

48.35

(1,08,573.91)

1,10,986.78

(3,452.11)

1,589.66

29.81

(24,084.20)

(3,107.12)

19,913.49

(2.02)

(2,484.73)

17,426.74

(19,111.22)

14.61

(70,090.07)

69,116.24

(4,496.00)

592.99

18.37

(23,955.08)

Reliance Industries Limited

103

Cash Flow Statement for the year 2008-09 (Contd.)

C: CASH FLOW FROM FINANCING ACTIVITIES:

Proceeds from Issue of Share Capital / Warrants

Proceeds from Long Term Borrowings

Repayment of Long Term Borrowings

Short Term Loans

Dividends Paid (including dividend distribution tax)

Interest Paid

Net Cash From Financing Activities

Net Increase / (Decrease) in Cash and Cash Equivalents

Opening Balance of Cash and Cash Equivalents
Add: On Amalgamation

4,280.05
2.24

Closing Balance of Cash and Cash Equivalents

2008-09

(Rs. in crore)

2007-08

15,164.79

20,690.86

(3,382.93)

(2,238.39)

(1,908.47)

(4,593.28)

23,732.58

17,894.24

4,282.29

22,176.53

1,682.44

10,769.61

(2,100.86)

528.25

(1,906.40)

8,973.04

2,444.70

1,835.35

4,280.05

1,835.35
-

Note :
Loans / Deposit given to Subsidiaries / Associate aggregating to Rs. 5,380.04 crore (Previous Year Rs. NIL) have been converted
into investments in Preference Shares.

As per our Report of even date

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. Siddharth
Partner

A.R. Shah
Partner

Mumbai
October 7, 2009

V.M. Ambani
Company Secretary

Chairman & Managing Director

Executive Directors

For and on behalf of the Board
M.D. Ambani
N.R. Meswani
H.R. Meswani
H.S. Kohli
P.M.S. Prasad
R. Ravimohan
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi

}
Dr. R. A. Mashelkar} Directors

104

Enhancing Lives. Energising India. The Reliance Way

Schedules forming part of the Balance Sheet

SCHEDULE ‘A’

SHARE CAPITAL

Authorised:

250,00,00,000 Equity Shares of Rs. 10 each

(250,00,00,000)

50,00,00,000 Preference Shares of Rs. 10 each

(50,00,00,000)

Issued, Subscribed and Paid up:

157,37,98,233 Equity Shares of Rs. 10 each fully paid up

1,573.79

(145,36,48,601)

Less: Calls in arrears - by others

0.26

TOTAL

1. Of the above Equity Shares:

As at
31st March, 2009

(Rs. in crore)

As at
31st March, 2008

2,500.00

500.00

3,000.00

1,573.53

2,500.00

500.00

3,000.00

1,453.39

1,453.65

0.26

(a)

(b)

(c)

(d)

48,17,70,552
(48,17,70,552)

52,31,98,799
(52,31,98,799)

33,04,27,345
(33,04,27,345)

6,01,40,560
(6,01,40,560)

Shares out of the issued and subscribed share capital before the buyback of shares
were allotted as Bonus Shares by capitalisation of Securities Premium and Reserves.

Shares out of the issued and subscribed share capital before the buyback of shares
were allotted pursuant to the various Schemes of Amalgamation without payments being received
in cash and includes 10,46,60,154 shares allotted to Petroleum Trust.

Shares out of the issued and subscribed share capital before the buyback of shares
were allotted on conversion / surrender of Debentures and Bonds, conversion of Term Loans,
exercise of warrants, against Global Depository Shares (GDS) and re-issue of forfeited equity
shares.

Shares were issued pursuant to a scheme of amalgamation of erstwhile Indian
Petrochemicals Corporation Limited with the Company without payments being received in
cash.

In the year 2004-05 the Company bought back and extinguished 28,69,495 equity shares.

3. The Company has reserved issuance of 6,95,25,770 (Previous year 6,96,75,402) Equity Shares of Rs. 10 each for offering to
eligible employees of the Company and its subsidiaries under Employees Stock Option Scheme (ESOS). During the year, the
Company has granted 50,100 Options to the eligible employees at a price of Rs. 1,289/- [Previous year 27,000 options at a price
of Rs. 1,684/- and 10,08,000 options at a price of Rs. 2,292/-] plus all applicable taxes, as may be levied in this regard on the
Company. The options would vest over a maximum period of 7 years from the date of grant based on specified criteria.

During the year, the Company has issued and allotted 1,49,632 (Previous Year NIL) equity shares to the eligible employees of
the Company under ESOS.

In terms of the approval of the shareholders of the Company and as per the applicable statutory provisions including Securities
and Exchange Board of India (Disclosure and Investor Protection) Guidelines 2000, the Company, on April 12, 2007, had issued
and allotted 12,00,00,000 warrants on preferential basis to entities in the Promoter Group entitling them to acquire equivalent
number of fully paid up equity shares of Rs. 10/- each of the Company, at a price of Rs. 1,402/- per equity share. As per the
entitlement, the warrant holders applied for and were allotted 12,00,00,000 equity shares of the Company, during the year.

Schedules forming part of the Balance Sheet

Reliance Industries Limited

105

SCHEDULE ‘B’

RESERVES AND SURPLUS

Revaluation Reserve

As per last Balance Sheet
Add: On Revaluation

Less: Transferred to Profit and Loss Account

[Refer Note 6, Schedule 'O']

Capital Reserve

As per last Balance Sheet

Capital Redemption Reserve
As per last Balance Sheet

Securities Premium Account
As per last Balance Sheet
Add : Premium on issue of shares
Add: On Amalgamation

[Refer Note 3, Schedule 'O']

Less: Premium on redemption /
buy back of debentures / bonds

Less: Calls in arrears - by others

Debentures Redemption Reserve
As per last Balance Sheet
Add: Transferred from Profit and Loss Account

General Reserve*

As per last Balance Sheet
Add: Transferred from Profit and Loss Account

Less: Transferred to Profit and Loss Account

[Refer Note 3, Schedule 'O']

Profit and Loss Account

TOTAL

As at
31st March, 2009

(Rs. in crore)

As at
31st March, 2008

871.26
12,900.63

13,771.89

1,987.14

21,313.80
16,727.04
13,429.09

51,469.93

13.17

51,456.76

1.80

587.02
340.05

50,000.00
11,728.92
61,728.92

7,728.92

871.26

291.28

887.94

11,784.75

291.28

887.94

2,651.97
-

2,651.97

1,780.71

21,331.99
-
-

21,331.99

18.19

21,313.80

1.78

51,454.96

21,312.02

587.02
-

927.07

587.02

34,000.00
16,000.00
50,000.00

54,000.00

5,384.19

1,24,730.19

50,000.00

4,363.29

78,312.81

* Cumulative amount withdrawn on account of Depreciation on Revaluation is Rs. 2,563.43 crore.

106

Enhancing Lives. Energising India. The Reliance Way

Schedules forming part of the Balance Sheet

SCHEDULE ‘C’

SECURED LOANS

A. DEBENTURES

Non Convertible Debentures

B. TERM LOANS

From Banks

Rupee Loans

C. WORKING CAPITAL LOANS

From Banks

Foreign Currency Loans

Rupee Loans

TOTAL

As at
31st March, 2009

As at
31st March, 2008

(Rs. in crore)

8,642.12

4,118.12

2,020.00

35.80

1,075.22

1,406.83

35.80

10,697.92

2,482.05

6,600.17

1. Debentures referred to in A above to the extent of:

a) Rs. 5,500.00 crore are secured by way of first mortgage / charge on the immovable properties situated at Hazira Complex

and at Jamnagar Complex (other than SEZ unit) of the Company.

b) Rs. 2,115.00 crore are secured by way of first mortgage / charge on all the properties situated at Hazira Complex and at

Patalganga Complex of the Company.

c) Rs. 772.30 crore are secured by way of first mortgage / charge on all the properties, both present and future, of the Refinery
Division (other than SEZ unit) of the Company and excluding book debts, office premises and certain other properties
thereof.

d) Rs. 110.34 crore are secured by way of first mortgage / charge on certain properties situated at village Munja Dhanot,

District Kalol in the State of Gujarat and on fixed assets situated at Hoshiarpur Complex of the Company.

e) Rs. 49.43 crore are secured by way of first mortgage / charge on certain properties situated at Ahmedabad in the State of

Gujarat and on fixed assets situated at Nagpur Complex of the Company.

f) Rs. 44.05 crore are secured by way of first mortgage / charge on certain properties situated at Surat in the State of Gujarat

and on fixed assets situated at Allahabad Complex of the Company.

g) Rs. 51.00 crore are secured by way of first mortgage / charge on movable and immovable properties situated at Thane in the

State of Maharashtra and on movable properties situated at Baulpur Complex of the Company.

Reliance Industries Limited

107

Schedules forming part of the Balance Sheet

2. Debentures referred to in A above are redeemable at par, in one or more installments, on various dates with the earliest
redemption being on 30th May, 2009 and the last being on 8th December, 2018. The debentures are redeemable as follows: Rs.
742.30 crore in financial year 2009-10, Rs. 175.00 crore in financial year 2010-11, Rs. 750.00 crore in financial year 2011-12,
Rs. 1,793.70 crore in financial year 2012-13, Rs. 3,708.26 crore in financial year 2013-14, Rs. 408.82 crore in financial year
2014-15, Rs. 164.04 crore in financial year 2015-16, Rs. 133.33 crore in financial year 2016-17, Rs. 133.33 crore in financial
year 2017-18 and Rs. 633.34 crore in financial year 2018-19.

3. Rupee term loans from banks are secured by a first ranking pari passu mortgage over leasehold interests of the Company’s SEZ
unit at Jamnagar under the Land Lease Agreement and the fixed assets (including plant and machinery) affixed thereon; a first
ranking pari passu charge over movable assets (other than current assets and investments) of the Company’s SEZ unit; a floating
second ranking charge over such of the current assets of Company’s SEZ unit that are charged on a first ranking basis to the
working capital lenders and an assignment of SEZ unit’s right, title and interest under the key Project Agreements including
Agreements in respect of utilities.

4. Working capital loans are secured by hypothecation of present and future stock of raw materials, stock-in-process, finished
goods, stores and spares, book debts, outstanding monies, receivable claims, bills, materials in transit, etc. save and except
receivables of Oil and Gas Division.

SCHEDULE ‘D’

UNSECURED LOANS

A. Long Term

i) From Banks

ii) From Others

B. Short Term

i) From Banks

ii) From Others

C. Deferred Sales Tax Liability

TOTAL

Note :

As at
31st March, 2009

As at
31st March, 2008

(Rs. in crore)

52,480.53

4,512.46

6,188.49

2.68

20,011.14

3,800.30

56,992.99

23,811.44

6,035.50

4.95

6,191.17

22.40

63,206.56

6,040.45

27.62

29,879.51

Long term loans from banks include Rs. 16,610.80 crore loan taken by erstwhile Reliance Petroleum Limited as secured loans secured
on pari passu basis with Rupee term loans as described in schedule C. These loans have become unsecured loans as provided in the
Scheme of Amalgamation.

108

Enhancing Lives. Energising India. The Reliance Way

Schedules forming part of the Balance Sheet

SCHEDULE ‘E’

FIXED ASSETS

D e s c r i p t i o n

OWN ASSETS :
Leasehold Land
Freehold Land
Buildings
Plant & Machinery
Electrical Installations
Equipments
Furniture & Fixtures
Vehicles
Ships
Aircrafts & Helicopters
Sub-Total
LEASED ASSETS :
Plant & Machinery
Ships
Sub-Total
INTANGIBLE ASSETS :
Technical Knowhow fees**
Software**
Others
Sub-Total
Total
Previous Year
Capital Work-in-Progress

(Rs. in crore)

Gross Block

D e p r e c i a t i o n

Net Block

As at
01-04.2008

Additions

Deductions/
Adjustments

As at
31-03-2009

For the
Year

Upto
31-03-2009

As at
31-03-2009

As at
31-03-2008

481.17
976.51
5,581.34
87,928.75
2,188.20
1,556.10
434.00
188.45
274.94
185.82
99,795.28

123.19
9.98
133.17

1,074.51
177.32
1,305.29
33,143.39
543.80
1,884.52
34.71
97.69
121.52
-
38,382.75

-
-
-

-
9.72
1.85
172.17
0.05
2.47
3.21
10.24
-
106.93
306.64

1,555.68
1,144.11
6,884.78
1,20,899.97
2,731.95
3,438.15
465.50
275.90
396.46
78.89
1,37,871.39

-
-
-

123.19
9.98
133.17

34.30
-
285.25
6,232.75
141.10
111.59
41.36
38.01
10.70
18.14
6,913.20

17.03
-
17.03

2,097.59
388.94
1,814.12
4,300.65
1,04,229.10
99,532.77

438.03
58.12
6,827.34
7,323.49
45,706.24
4,867.44

-
-
-
-
306.64
171.11

2,535.62
447.06
8,641.46
11,624.14
1,49,628.70
1,04,229.10

107.18
45.52
99.50
252.20
7,182.43*
6,627.85

70.71
-
1,714.48
42,850.19
1,041.27
717.39
241.58
126.33
220.63
20.80
47,003.38

68.77
9.98
78.75

1,281.12
326.18
596.21
2,203.51
49,285.64
42,345.47

1,484.97
1,144.11
5,170.30
78,049.78
1,690.68
2,720.76
223.92
149.57
175.83
58.09
90,868.01

444.76
976.51
4,152.04
51,155.23
1,287.99
949.78
231.98
94.18
65.01
105.35
59,462.83

54.42
-
54.42

71.45
-
71.45

1,254.50
120.88
8,045.25
9,420.63
1,00,343.06
61,883.63
69,043.83

923.65
108.28
1,317.42
2,349.35
61,883.63

23,005.84

NOTES :
a)
b) Buildings include :

Leasehold Land includes Rs. 203.19 crore (Previous Year Rs. 203.19 crore) in respect of which lease-deeds are pending execution.

Cost of shares in Co-operative Housing Societies Rs. 1.00 crore (Previous Year Rs. 0.06 crore).

i)
ii) Rs. 4.88 crore (Previous Year Rs. 4.88 crore) in respect of which conveyance is pending.
iii) Rs. 93.20 crore (Previous Year Rs. 93.20 crore) in shares of Companies / Societies with right to hold and use certain area of

Buildings.

Intangible assets - Others include :
i)

Jetties amounting to Rs. 646.97 crore, the Ownership of which vests with Gujarat Maritime Board. However, under an
agreement with Gujarat Maritime Board, the Company has been permitted to use the same at a concessional rate.

ii) Rs. 7,994.49 crore (Previous Year Rs. 1,167.15 crore) in preference shares of subsidiaries and lease premium paid with right to

hold and use Land and Buildings.

d) Capital Work-in-Progress includes :

Rs. 17,095.19 crore on account of Project development expenditure (Previous Year Rs. 1,419.04 crore).

i)
ii) Rs. 2,610.23 crore on account of cost of construction materials at site (Previous Year Rs. 1,779.03 crore).
iii) Rs. 5,509.61crore on account of advance against capital expenditure (Previous Year Rs. 3,329.85 crore).

e) Additions include Rs. 12,900.63 crore on revaluation of Building, Plant & Machinery and Equipments as at 01.01.2009, based on

report issued by international valuers.

f) Additions include Rs. 183.97 crore and Capital Work-in-Progress include Rs. 21,081.87 crore acquired on amalgamation of Reliance

Petroleum Limited with the Company on the appointed date.

g) Gross Block also includes Rs. 22,497.34 crore being the amount added on revaluation of Building, Plant & Machinery, Electrical

Installations and Equipments as at 01.08.2005, based on report issued by international valuers.

h) Additions and Capital Work-in-Progress include Rs. 1,174.14 crore [Previous Year Rs. 129.42 crore (net gain)] on account of

exchange difference during the year.
*
Refer to Note 6, Schedule 'O'
** Other than internally generated

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’

INVESTMENTS

A. LONG TERM INVESTMENTS
Government and other Securities - Unquoted

6 Years National Savings Certificate
(Deposited with Sales Tax Department
and other Govt. Authorities)

Trade Investments
In Equity Shares - Unquoted, fully paid up

1,00,00,000 Petronet India Limited of Rs. 10 each

(1,00,00,000)

11,08,500 Reliance Europe Limited of Sterling

(11,08,500) Pound 1 each

62,63,125 Indian Vaccines Corporation Limited

(62,63,125) of Rs. 10 each

12,04,20,000 Gujarat Chemicals Port Terminal
(12,04,20,000) Company Limited of Rs. 10 each

10.00

3.93

0.61

30.42

20,50,000 Reliance Utilities Private Limited of Re. 1 each

0.21

(-)

19,90,000 Reliance Utilities and Power Private Limited

(-) of Re. 1 each

2,00,000 Reliance Global Business B.V. of

(-) Euro 0.01 each

0.20

0.01

45.38

In Preference Shares - Unquoted, fully paid up

50,00,00,000 9% Non Cumulative Redeemable Preference

2,000.00

(-) Shares of Reliance Gas Transportation

Infrastructure Limited of Rs. 10 each

2,000.00

Other Investments
In Equity Shares - Quoted, fully paid up

68,60,064 Reliance Industrial Infrastructure Limited

16.30

(68,60,064) of Rs. 10 each

8,572 Portland General Electric Company

(8,043) Common Stock Equity

In Equity Shares - Unquoted, fully paid up

22,500 Reliance LNG Limited of Rs. 10 each

(22,500)

In Equity Shares of Subsidiary Company - Quoted, fully paid up

- Reliance Petroleum Limited of Rs.10 each

(316,69,58,030)

0.82

17.12

0.02

In Equity Shares of Subsidiary Companies - Unquoted, fully paid up

14,75,04,400 Reliance Industrial Investments and

(14,75,04,400) Holdings Limited of Rs. 10 each

147.50

Reliance Industries Limited

109

As at
31st March, 2009

(Rs. in crore)

As at
31st March, 2008

0.02

10.00

3.93

0.61

30.42

44.96

2,045.38

44.96

16.30

0.78

17.08

0.02

17.14

17.10

6,333.92

147.50

110

Enhancing Lives. Energising India. The Reliance Way

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

As at
31st March, 2009

(Rs. in crore)

As at
31st March, 2008

26,91,150 Reliance Ventures Limited of Rs. 10 each

2,351.05

(26,91,150)

20,20,200 Reliance Strategic Investments Limited of

(20,20,200) Rs. 10 each

- Reliance Netherland B.V. of Euro 1 Each

(10,000)

50,00,001 RIL (Australia) Pty Limited of Aus $ 1 each

(50,00,001)

42,450 Reliance Industries (Middle East) DMCC

(42,450) of AED 1000 each

2.02

17.46

46.19

10,00,00,000 Reliance Jamnagar Infrastructure Limited

100.00

(10,00,00,000) of Rs. 10 each
339,00,00,000 Reliance Retail Limited of Rs. 10 each

3,390.00

(339,00,00,000)

1,76,200 Reliance Exploration & Production DMCC

210.84

(1,76,200) of AED 1000 each

250,000 Reliance Global Management Services

0.25

(250,000) Limited of Rs. 10 each

6,265.31

In Equity Shares of Subsidiary Company - Unquoted Partly paid up

610,00,00,000 Reliance Retail Limited of Rs. 10 each

(610,00,00,000)

(Re 1 paid up)

610.00

In Preference Shares of Subsidiary Companies - Unquoted, fully paid up
10,00,000 5% Cumulative Redeemable Non Convertible
(10,00,000) Preference Shares of Reliance Ventures Limited

10.00

of Re. 1 each

1,50,60,415 9% Compulsorily Convertible Preference

4,216.92

(1,50,60,415) Shares of Reliance Strategic

Investments Limited of Re. 1 each

- 5% Redeemable Cumulative Convertible

(4,99,089) Preference Shares of Reliance Exploration &

Production DMCC of AED 1000 each
2,57,600 5% Non Cumulative Compulsorily Convertible

(-) Preference Shares of Reliance Industries (Middle

355.04

East) DMCC of AED 1000 each

11,55,316 5% Non Cumulative Compulsorily Convertible 1,464.76

(-) Preference Shares of Reliance Exploration &
Production DMCC of AED 1000 each

25,50,000 10% Non-Cumulative Optionally Convertible
(-) Preference Shares of Reliance Jamnagar

1,275.00

Infrastructure Limited of Rs. 10 each

35,00,000 10% Non-Cumulative Optionally Convertible
(-) Preference Shares of Reliance Industrial

1,750.00

Investments and Holdings Limited of Rs. 10 each

2.02

0.06

17.46

46.19

100.00

3,390.00

210.84

0.25

6,265.37

610.00

10.00

4,216.92

552.65

In Debentures of Subsidiary Companies - Unquoted, fully paid up
2,79,90,000 0% Unsecured Convertible Debentures
(2,79,90,000) of Reliance Industrial Investments and

Holdings Limited of Rs. 100 each

279.90

9,071.72

4,779.57

Reliance Industries Limited

111

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

As at
31st March, 2009

(Rs. in crore)

As at
31st March, 2008

8,83,143 0% Unsecured Convertible Debentures

441.58

(8,83,143) of Reliance Industrial Investments

and Holdings Limited of Rs. 5000 each

721.48

441.58

721.48

In Others

88 Pass Through Certificates (PTC) issued by

(88)

Indian Residential MBS Trust

Total (A)

B. CURRENT INVESTMENTS

Other Investments

16,668.51

18,710.34

1.87

5.33

18,732.92

18,777.75

In Government Securities-Quoted
7.99% GOI 2017
8.20% GOI 2022
6.05% GOI 2019

In Treasury Bills-Quoted
364 Days Treasury Bills

Collateral Borrowing & Lending Obligation

In Certificate of Deposit with Scheduled
Banks -Quoted

In Public Sector Undertaking /
Public Financial Institution &
Corporate Bonds -Quoted

- Bank of India

(450)

-
-
372.96
372.96

6.66
6.66

23.29
23.29
1,338.31

1,338.31

600 Citi Financial Consumer Finance India Limited

60.00

(600)
1,500 EXIM Bank of India

(1,500)

150.00

3,600 Housing Development Finance Corporation Limited

359.06

(2,000)
-
(500)
2,350 Infrastructure Development Finance Company

Indian Railway Finance Corporation Limited

(-) Limited

- LIC Housing Finance Limited

(500)
1,350 National Bank For Agricultural And

(1,850) Rural Development

234.52

135.21

150.45
80.00
-
230.45

0.93
0.93

-
-
1,547.49

1,547.49

45.06

60.00

148.94

200.09

50.10

50.00

185.20

112

Enhancing Lives. Energising India. The Reliance Way

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

As at
31st March, 2009

(Rs. in crore)

As at
31st March, 2008

- Power Finance Corporation Limited

(3,200)

- Punjab National Bank

(100)

50 State Bank of Mysore

(250)

- State Bank of Bikaner & Jaipur

(250)

- State Bank of India

(700)

In Commercial Paper - Unquoted
Housing Development Finance
Corporation Limited
Infrastructure Development
Finance Company Limited

In Units-Unquoted

- Birla Cash Plus - Institutional Premium -

(10,76,38,459) Growth of Rs. 10 each

ICICI Prudential Fixed Maturity Plan

(1,00,00,000) of Rs. 10 each - Growth

- Mirae Asset Liquid Fund Super Institutional

(4,96,686) Growth Option of Rs. 1000 each

- SBI Premier Liquid Fund Super Institutional

(3,58,56,822) Growth of Rs. 10 each

- Templeton India Treasury Management

(6,25,354) Account Super Institutional Plan Growth

of Rs. 1000 each

5.00

943.79

95.97

92.59

188.56

2,873.57

316.12

10.01

24.75

25.00

71.71

1,186.98

2,965.85

139.00

10.00

50.00

46.00

75.00

320.00

Total (B)

Total (A+B)

Note :

2,873.57

21,606.49

3,285.85

22,063.60

Provision for diminution in the value of Investments is Rs. 3.44 crore (Previous Year Rs. 13.92 crore).

AGGREGATE VALUE OF

Quoted Investments
Unquoted Investments

As at
31st March, 2009

(Rs. in crore)

As at
31st March, 2008

Book Value Market Value

2,678.84
18,927.65

2,930.63
-

9,316.85
12,746.75

53,126.09
-

Reliance Industries Limited

113

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

Investments purchased and sold during the year

Mutual Fund Units
ABN AMRO Flexible Short Term Plan
AIG India Liquid Systematic Investment Plan - Growth
AIG India Treasury Plus Fund Super Institutional - Growth
Bharti AXA Liquid Fund- Super Institutional- Growth Plan
Birla Cash Plus Institutional Plan
Birla Sunlife Cash Plus - Institutional Premium - Daily Dividend
Birla Sunlife Interval Fund - Institutional - Quarterly Dividend
Birla Sunlife Interval Income Fund - Institutional - Quarterly Dividend
Canara Robeco Liquid Institutional Plan - Growth
Canara Robeco Liquid Super Institutional Plan - Growth
DBS Chola Liquid Super Institutional Plan - Cumulative
DSP Black Rock Cash Manager fund Institutional Plan - Daily Dividend
DSP Black Rock Money Manager Fund Institutional Plan - Daily Dividend
DSP Merill Lynch Cashplus Fund Plan - Growth
DWS Insta Cash Plus Fund - Super Institutional - Growth Plan
DWS Liquid Ultra Short term Fund - Institutional - Daily Dividend
Fortis Money Plus Institutional Plan - Daily Dividend
Franklin Templeton Treasury Management Systematic Investment Plan
HDFC Cash Management Fund - Saving Plan - Daily Dividend Reinvestment
HDFC Cash Management Fund - Treasury Advantage Plan -
Wholesale - Daily Dividend
HDFC Cash Management Fund- Call Plan - Growth
HDFC Liquid Fund Premium Plus Plan - Growth
HSBC Cash Fund - Institutional Plan - Growth
HSBC Floating Rate Long Term Institutional Plan - Daily Dividend
HSBC Interval Fund - Plan - Institutional Dividend
ICICI Pru Sweep Plan - Growth
ICICI Prudential - Flexible Income Plan - Daily Dividend
ICICI Prudential Floating Rate Plan - Daily Dividend
ICICI Prudential Institutional Plan - Super Institutional - Daily Dividend
ICICI Prudential Quarterly Interval Plan - Retail Dividend
ICICI Prudential Liquid Systematic Investment Plan - Growth
IDFC Cash Fund -Super Institutional Plan - Daily Dividend
IDFC Money Manager Fund Investment Plan - Institutional Plan - Daily Dividend
ING Treasury Advantage Fund - Institutional - Daily Dividend
ING Vysya super Institutional Plan - Growth
LIC MF Floating Rate Fund -Short term plan - Growth
LICMF Liquid Fund - Dividend Plan
LICMF Liquid Fund - Growth Plan
Lotus India Liquid Fund Super Institutional - Growth
Mirae Asset liquid Plus Fund - Super Institutional Dividend Plan - Daily
Mirae Asset Liquid Systematic Investment Plan - Growth
Mirae Asset Ultra Short Term Bond Fund Super Institutional - Daily Dividend
Principal PNB Cash Management - Growth
Religare Liquid Fund Super Institutional - Daily Dividend
Religare Fixed Maturity Plan - Dividend
Religare Quarterly Interval Fund - Plan - Dividend
Religare Ultra Short Fund Institutional - Daily Dividend
SBI Debt Fund Series - Dividend
SBI Magnum Insta Cash Fund - Daily Dividend
SBI Magnum Insta Cash Fund - Growth
SBI Premier Liquid Fund - Growth
SBI Premier Liquid Fund Super Institutional - Daily Dividend
SBI -SHF Liquid plus - Institutional Plan - Growth
SBI SHF Ultra Short Term Fund Institutional Plan - Daily Dividend

Face Value
(Rs.)

Nos.
(in lakhs)

Cost
(Rs. in crore)

10.00
1,000.00
10.00
1,000.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
1,000.00
1,000.00
1,000.00
10.00
10.00
10.00
1,000.00
10.00
10.00

10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
1,000.00
1,000.00
1,000.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00

5.23
70.12
1,391.07
4.99
98,033.08
5,034.38
3.67
3.50
3,195.42
11,759.90
428.82
10.28
0.16
64.65
7,405.96
383.05
1.04
825.54
13,645.77
252.37

1,385.48
39,145.81
6,915.42
437.72
3.42
3,310.03
2,460.53
655.25
27,963.69
3.42
160,269.57
481.55
928.33
822.78
23,289.75
2,236.73
876.03
7,919.84
14,741.81
5.76
72.03
0.09
757.66
51.10
4.93
1.06
3.81
5.09
390.64
3,314.62
12,129.90
50.47
4,361.06
1,073.02

0.52
750.00
150.04
50.00
12,974.00
504.42
0.37
0.35
475.00
1,200.00
50.00
102.83
1.61
700.00
800.00
38.36
0.10
10,250.00
1,451.42
25.32

200.00
6,522.00
900.00
43.84
0.34
400.00
260.16
65.54
2,796.51
0.34
19,685.00
48.16
92.88
82.31
2,900.00
300.00
96.19
1,205.00
1,680.00
57.63
750.00
0.89
100.00
5.11
0.49
0.11
0.38
0.51
65.43
623.64
1,577.40
5.06
471.00
107.36

114

Enhancing Lives. Energising India. The Reliance Way

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)
Investments purchased and sold during the year

Standard Chartered Fixed Maturity Plan - Quarterly Dividend
Sundaram BNP Paribas Money Fund Super Institutional - Growth
Tata Dynamic Bond Fund - Dividend
Tata Floating Rate Short Term Institutional Plan - Growth
Tata Floater Fund - Daily Dividend
Tata Liquid SHIF - Growth
Templeton India Treasury Management Account Regular Plan - Daily Dividend
Templeton India Treasury Management Account Super Institutional Plan
Daily Dividend Reinvestment
UTI Fixed Maturity Plan Institutional Dividend Plan
UTI Liquid Cash plan Institutional - Growth
UTI Money Market - Growth
Government Securities :
7.99% GOI 2017
7.38% GOI 2015
8.24% GOI 2018
7.59% GOI 2016
6.05% GOI 2019
Corporate Bonds
5.85% HDFC 2009 Bond of Face Value of Rs. 10,00,000 (200 units)
10.90% REC 2013 Bond of Face Value of Rs. 10,00,000 (500 units)

Face Value
(Rs.)

Nos.
(in lakhs)

Cost
(Rs. in crore)

10.00
10.00
10.00
10.00
10.00
1,000.00
1,000.00
1,000.00

10.00
1,000.00
10.00

100.00
100.00
100.00
100.00
100.00

4.93
851.79
1.57
4,962.34
502.47
551.91
0.01
80.11

2.92
29.55
3,850.35

75.00
100.00
3,710.00
100.00
180.00

0.49
127.36
0.17
647.00
50.43
8,504.00
0.13
801.61

0.29
400.00
900.00

74.95
96.02
4,038.71
97.94
172.34

19.44
50.00

SCHEDULE ‘G’

CURRENT ASSETS

INVENTORIES
Stores, Chemicals and Packing Materials
Raw Materials
Stock-in-Process
Finished Goods / Traded Goods

SUNDRY DEBTORS (Unsecured and Considered Good)
Over six months
Others #

CASH AND BANK BALANCES

Cash on hand

Balance with Banks
In Current Accounts :
With Scheduled Banks
With Others*
In Fixed Deposit Accounts :
With Scheduled Banks

As at
31st March, 2009

(Rs. in crore)

As at
31st March, 2008

3,514.85
6,112.85
2,193.89
3,015.13

13.55
4,557.83

1,072.38
8,393.70
1,523.96
3,257.50

14,836.72

14,247.54

13.06
6,214.52

4,571.38

6,227.58

11.72

11.51

487.03
1.38

21,676.40

204.62
1.66

4,062.26

22,176.53

4,280.05

Reliance Industries Limited

115

Schedules forming part of the Balance Sheet

SCHEDULE ‘G’ (Contd.)
CURRENT ASSETS

OTHER CURRENT ASSETS

As at
31st March, 2009

(Rs. in crore)

As at
31st March, 2008

Interest Accrued on Investments
Premium Accrued on Investments in Preference Shares $

47.59
0.27

72.32
0.22

47.86

72.54

TOTAL

41,632.49

24,827.71

Includes Rs. 359.29 crore (Previous Year Rs. 917.14 crore) receivable from Subsidiaries.

Includes balances with non-scheduled banks as follows:

Bank of China
Citi, China, Guangzhou
ABN Amro Bank, Shanghai
ABN Amro Bank, Jakarta
ABN Amro Bank, Jebel Ali
Hongkong and Shanghai Banking Corporation, Turkey
Hongkong and Shanghai Banking Corporation, Vietnam
Hongkong and Shanghai Banking Corporation, New York
Stadtsparkasse Koln, Frankfurt

As at 31st
March, 2009

(Rs. in crore)
As at 31st
Maximum Balance at
March, 2008 any time during the year

0.02
0.04
0.13
0.15
0.09
0.05
0.03
0.85
0.02

0.02
0.05
0.16
0.05
0.08
0.10
0.03
1.05
0.12

2008-09
0.10
0.15
0.30
0.40
0.67
0.30
0.18
5.91
0.54

2007-08
0.14
0.15
1.03
0.12
0.55
0.31
0.14
4.31
0.77

Premium accrued on Investments in Preference Shares represents Rs. 0.27 crore (Previous Year Rs. 0.22 crore) receivable on
investments in Non Convertible Preference Shares of Reliance Ventures Limited, a wholly owned subsidiary of the Company.

SCHEDULE ‘H’

As at
31st March, 2009

(Rs. in crore)
As at
31st March, 2008

LOANS AND ADVANCES
UNSECURED - (Considered Good Unless Otherwise Stated)
Loans to subsidiary companies
Advance Income Tax (net of Provision)
Advances recoverable in cash or in kind or for
value to be received *
Less: Considered Doubtful

4,041.80
69.88

Deposits *
Balance with Customs, Central Excise Authorities, etc.

TOTAL

4,534.74
1,167.10

3,971.92
2,263.22
1,142.80

13,079.78

6,456.35
69.88

6,038.45
375.28

6,386.47
3,981.63
1,276.30

18,058.13

Advances recoverable includes Rs. 1,583.72 crore (Previous Year Rs. 272.56 crore) and deposits include Rs. 341.27 crore
(Previous Year Rs. NIL) recoverable from Subsidiaries.

116

Enhancing Lives. Energising India. The Reliance Way

Schedules forming part of the Balance Sheet

SCHEDULE ‘I’

As at
31st March, 2009

(Rs. in crore)

As at
31st March, 2008

CURRENT LIABILITIES AND PROVISIONS

CURRENT LIABILITIES
Sundry Creditors

- Micro, Small and Medium Enterprises @
- Others *

Liability for Leased Assets
Unpaid Dividend #
Unpaid Matured debentures #
Interest accrued on above #
Unpaid Share Application Money #
Interest accrued but not due on Loans

PROVISIONS
Provision for Wealth Tax
Provision for Leave encashment / Superannuation / Gratuity
Other Provisions $
Proposed / Interim Dividend
Tax on Dividend

TOTAL

7.32
31,571.77
1.87
88.98
2.19
0.19
1.42
1,017.26

37.68
477.78
275.99
1,897.05
322.40

8.86
20,581.59
5.33
70.32
2.19
0.19
-
376.99

32,691.00

21,045.47

24.25
620.81
439.09
1,631.24
277.23

3,010.90
35,701.90

2,992.62
24,038.09

@ The details of amounts outstanding to Micro, Small and Medium Enterprises under the Micro, Small & Medium Enterprises

Development Act, 2006 (MSMED Act), based on the available information with the Company are as under:

Sr.
No.
1
2
3
4
5
6
7

Particulars

Principal amount due and remaining unpaid
Interest due on (1) above and the unpaid interest
Interest paid on all delayed payments under the MSMED Act
Payment made beyond the appointed day during the year
Interest due and payable for the period of delay other than (3) above
Interest accrued and remaining unpaid
Amount of further interest remaining due and payable in succeeding years

As at
31st March, 2009
-
-
-
-
-
-
-

(Rs. in crore)
As at
31st March, 2008
-
-
-
-
-
-
-

Includes Rs. 86.31 crore (Previous Year Rs. 30.35 crore) payable to Subsidiaries and Rs. 16,796.74 crore (Previous year
Rs. 2,254.48 crore) for capital expenditure.

These figures do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund except
Rs. 7.21 crore (Previous Year Rs. 6.11 crore) which is held in abeyance due to legal cases pending.

The Company had recognised liability based on substantial degree of estimation for excise duty payable on clearance of goods
lying in stock as on 31st March, 2008 of Rs. 176.47 crore as per the estimated pattern of despatches. During the year Rs. 162.48
crore was utilised for clearance of goods and unused balance of Rs. 13.99 crore was reversed. Provision recognised under this
class for the year is Rs. 56.26 crore which is outstanding as on 31st March, 2009. Actual outflow is expected in the next financial
year. The Company had recognised customs duty liability on goods imported of Rs. 258.73 crore as on 31st March, 2008.
During the year further provision of Rs. 180.38 crore was made and sum of Rs. 221.06 crore was reversed on fulfillment of
export obligation. Closing balance on this account as at 31st March, 2009 is Rs. 218.05 crore. Other class of provisions where
recognition is based on substantial degree of estimation relate to disputed customer / supplier / third party claims, rebates or
demands against the Company. Any additional information in this regard can be expected to prejudice seriously the position of
the Company.

Reliance Industries Limited

117

Schedules forming part of the Profit and Loss Account

SCHEDULE ‘J’

OTHER INCOME

Dividend:

From Current Investments

From Long Term Investments

Interest:

From Current Investments
From Others

[Tax Deducted at Source Rs. 260.97 crore
(Previous Year Rs. 150.09 crore.)]

Premium on Investments in Preference Shares
Profit on Sale of Current Investments (net)
Profit on Sale of Fixed Assets
Miscellaneous Income
Exceptional Items *

Less : Transferred to Project Development Expenditure

- Interest Income

- Others

TOTAL

2008-09

(Rs. in crore)

2007-08

18.36

0.01

29.81

18.37

70.47
591.88

662.35

0.05
118.87
4.25
91.40
4,733.50

5,628.79

1,564.92

0.05
425.40
9.57
118.65
-

2,148.40

88.52

2,059.88

27.40

2.41

226.86
1,338.06

23.80

64.72

* Represents gains primarily arising out of transactions concerning Reliance Petroleum Limited shares (Long Term Investments).

SCHEDULE ‘K’

VARIATION IN STOCKS

STOCK-IN-TRADE (at close)
Finished Goods / Traded Goods
Stock-in-Process

STOCK-IN-TRADE (at commencement)
Finished Goods / Traded Goods
Stock-in-Process

TOTAL

2008-09

(Rs. in crore)

2007-08

3,015.13
2,193.89

3,257.50
1,523.96

5,209.02

4,781.46

4,759.88
1,888.74

4,781.46
427.56

6,648.62
(1,867.16)

118

Enhancing Lives. Energising India. The Reliance Way

Schedules forming part of the Profit and Loss Account

SCHEDULE ‘L’

MANUFACTURING AND OTHER EXPENSES
RAW MATERIAL CONSUMED
MANUFACTURING EXPENSES

Stores, Chemicals and Packing Materials
Electric Power, Fuel and Water
Machinery Repairs
Building Repairs
Labour Processing, Production Royalty and
Machinery Hire Charges
Excise Duty #
Lease Rent
Exchange Differences (Net)

PAYMENTS TO AND PROVISIONS
FOR EMPLOYEES (including Managerial Remuneration)

Salaries, Wages and Bonus
Contribution to Provident Fund, Gratuity Fund,
Superannuation Fund, Employee’s State Insurance
Scheme, Pension Scheme, Labour Welfare Fund etc.
Employee Welfare and other amenities

SALES AND DISTRIBUTION EXPENSES

Samples, Sales Promotion and Advertisement Expenses
Brokerage, Discount and Commission
Warehousing and Distribution Expenses
Sales Tax / VAT / Service Tax

ESTABLISHMENT EXPENSES

Insurance
Rent
Rates & Taxes
Other Repairs
Travelling Expenses
Payment to Auditors
Professional Fees
Loss on Sale / Discarding of Fixed Assets
General Expenses *
Wealth Tax
Charity and Donations

2,274.02
3,355.98
322.70
37.59
840.28

(111.53)
29.24
494.68

1,913.48
268.11

215.91

71.08
388.16
2,424.62
211.41

325.11
121.21
54.61
229.41
125.89
10.74
654.18
16.65
935.46
13.43
82.59

2008-09

(Rs. in crore)

2007-08

1,04,805.05

90,303.85

2,520.58
2,052.84
479.32
50.12
685.26

(362.78)
85.54
(986.83)

7,242.96

4,524.05

1,652.49
273.50

193.34

2,397.50

2,119.33

72.34
409.37
2,229.22
518.66

3,095.27

3,229.59

291.45
216.41
53.57
216.12
169.46
9.38
644.26
6.04
531.32
8.00
114.91

Less : Transferred to Project Development Expenditure (Net)

TOTAL

2,569.28
1,20,110.06
3,354.17
1,16,755.89

2,260.92
1,02,437.74
175.46
1,02,262.28

Excise Duty shown under expenditure represents the aggregate of excise duty borne by the Company and difference between
excise duty on opening and closing stock of finished goods.
Includes diminution in value of investments Rs. 3.44 crore (Previous Year Rs. 13.92 crore) and Rs. 369.60 crore (Previous Year
Rs. NIL) towards liabilities on account of corporate guarantees given on behalf of a subsidiary, being an exceptional item.

Reliance Industries Limited

119

Schedules forming part of the Profit and Loss Account

SCHEDULE ‘M’

INTEREST AND FINANCE CHARGES

Debentures

Fixed Loans

Finance Charges on Leased Assets

Others

TOTAL

2008-09

545.61

424.07

0.24

775.31

1,745.23

(Rs. in crore)

2007-08

319.10

374.24

0.63

383.39

1,077.36

120

Enhancing Lives. Energising India. The Reliance Way

Significant Accounting Policies

SCHEDULE ‘N’

SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention, except for certain fixed assets which are
revalued in accordance with the generally accepted accounting principles in India and the provisions of the Companies
Act, 1956.

B. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported
amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and
expenses during the reporting period. Difference between the actual results and estimates are recognised in the
period in which the results are known/ materialised.

C. Own Fixed Assets

Fixed Assets are stated at cost net of cenvat / value added tax and includes amounts added on revaluation, less
accumulated depreciation and impairment loss, if any. All costs, including financing costs till commencement of
commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate
variations attributable to the fixed assets are capitalised.

D. Leased Assets

a) Operating Leases: Rentals are expensed with reference to lease terms and other considerations.

(i) Finance leases prior to 1st April, 2001: Rentals are expensed with reference to lease terms and other

considerations.

(ii) Finance leases on or after 1st April, 2001: The lower of the fair value of the assets and present value of the
minimum lease rentals is capitalised as fixed assets with corresponding amount shown as lease liability.
The principal component in the lease rental is adjusted against the lease liability and the interest component
is charged to profit and loss account.

c) However, rentals referred to in (a) or (b) (i) above and the interest component referred to in (b) (ii) above

pertaining to the period upto the date of commissioning of the assets are capitalised.

d) All assets given on finance lease are shown as receivables at an amount equal to net investment in the lease.
Initial direct costs in respect of lease are expensed in the year in which such costs are incurred. Income from
lease assets is accounted by applying the interest rate implicit in the lease to the net investment.

Intangible Assets

Intangible Assets are stated at cost of acquisition less accumulated amortisation.

F. Depreciation

Depreciation on fixed assets is provided on written down value method (WDV) at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956 over their useful life except,: on fixed assets pertaining to
refining segment, depreciation is provided on Straight Line method (SLM) over their useful life; on fixed bed catalyst
with a life of 2 years or more, depreciation is provided over its useful life ; on fixed bed catalysts having life of less
than 2 years, 100% depreciation is provided in the year of addition; on additions or extensions forming an integral
part of existing plants, including incremental cost arising on account of translation of foreign currency liabilities for
acquisition of fixed assets and insurance spares, depreciation is provided as aforesaid over the residual life of the
respective plants; on development rights and producing properties, depreciation is provided in proportion of oil and
gas production achieved vis-a-vis the proved reserves (net of reserves to be retained to cover abandonment costs

Reliance Industries Limited

121

SCHEDULE ‘N’ (Contd.)

as per the production sharing contract and the Government of India’s share in the reserves) considering the
estimated future expenditure on developing the reserves as per technical evaluation; premium on leasehold land is
amortised over the period of lease; technical know how is amortised over the useful life of the underlying assets and
computer software is amortised over a period of 5 years; intangible assets - others are amortised over the period of
agreement of right to use, provided in case of jetty the aggregate amount amortised to date is not less than the
aggregate rebate availed by the Company; on amounts added on revaluation, depreciation is provided as aforesaid
over the residual life of the assets as certified by the valuers’; on assets acquired under finance lease from 1st April
2001, depreciation is provided over the lease term.

Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss
is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss
recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

H. Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the

transaction or that approximates the actual rate at the date of the transaction.

(b) Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items
which are covered by forward exchange contracts, the difference between the year end rate and rate on the date
of the contract is recognised as exchange difference and the premium paid on forward contracts is recognised
over the life of the contract.

(d)

In respect of branches, which are integral foreign operations, all transactions are translated at rates prevailing
on the date of transaction or that approximates the actual rate at the date of transaction. Branch monetary assets
and liabilities are restated at the year end rates.

(e) Any income or expense on account of exchange difference either on settlement or on translation is recognised
in the profit and loss account except in case of long term liabilities, where they relate to acquisition of fixed
assets, in which case they are adjusted to the carrying cost of such assets.

Investments

Current investments are carried at lower of cost or quoted/ fair value, computed category wise. Long Term Investments
are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is
other than temporary.

Inventories

Items of inventories are measured at lower of cost or net realisable value after providing for obsolescence, if any.
Cost of inventories comprises of cost of purchase, cost of conversion and other costs incurred in bringing them to
their respective present location and condition. Cost of raw materials, process chemicals, stores and spares, packing
materials, trading and other products are determined on weighted average basis. By-products are valued at net
realisable value. Cost of work-in-progress and finished stock is determined on absorption costing method.

K. Turnover

Turnover includes sale of goods, services, sales tax, service tax, excise duty and sales during trial run period,
adjusted for discounts (net), Value Added Tax (VAT) and gain / loss on corresponding hedge contracts.

122

Enhancing Lives. Energising India. The Reliance Way

SCHEDULE ‘N’ (Contd.)

L. Excise Duty and Sales Tax / Value Added Tax

Excise duty is accounted on the basis of both, payments made in respect of goods cleared as also provision made
for goods lying in bonded warehouses. Sales tax / Value added tax paid is charged to profit and loss account.

M. Employee Benefits

(i) Short-term employee benefits are recognised as an expense at the undiscounted amount in the profit and loss

account of the year in which the related service is rendered.

(ii) Post employment and other long term employee benefits are recognised as an expense in the profit and loss
account for the year in which the employee has rendered services. The expense is recognised at the present
value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in
respect of post employment and other long term benefits are charged to the profit and loss account.

(iii) In respect of employees stock options, the excess of fair price on the date of grant over the exercise price is

recognised as deferred compensation cost amortised over the vesting period.

N. Employee Separation Costs

Compensation to employees who have opted for retirement under the voluntary retirement scheme of the Company
is charged to the profit and loss account in the year of exercise of option.

O. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part
of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for
intended use. All other borrowing costs are charged to profit and loss account.

P. Financial Derivatives and Commodity Hedging Transactions

In respect of derivative contracts, premium paid, gains / losses on settlement and provision for losses for cash flow
hedges are recognised in the profit and loss account except in case where they relate to the acquisition or construction
of fixed assets, in which case, they are adjusted to the carrying cost of such assets.

Q. Accounting for Oil and Gas Activity

The Company has adopted Full Cost Method of accounting for its Oil and Gas activity and all costs incurred in
acquisition, exploration and development are accumulated considering the country as a cost centre. Oil and Gas
Joint Ventures are in the nature of Jointly Controlled Assets. Accordingly assets and liabilities as well as income and
expenditure are accounted on the basis of available information on line by line basis with similar items in the
Company’s financial statements, according to the participating interest of the Company.

R. Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the
Income-tax Act, 1961. Deferred tax resulting from “timing difference” between taxable and accounting income is
accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date.
The deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the
asset will be realised in future.

S. Premium on Redemption of Bonds / Debentures

Premium on redemption of bonds / debentures, net of tax impact, are adjusted against the Securities Premium
Account.

Reliance Industries Limited

123

SCHEDULE ‘N’ (Contd.)

T. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present
obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent
Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed
in the financial statements.

Notes on Accounts
SCHEDULE ‘O’

1. The previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts
and other disclosures for the preceding year are included as an integral part of the current year financial statements
and are to be read in relation to the amounts and other disclosures relating to the current year.

2. The figures for the current year include figures of Reliance Petroleum Limited (RPL) which is amalgamated with the
Company with effect from 1st April, 2008 and are therefore to that extent not comparable with those of previous year.

3. Reliance Petroleum Limited (RPL), (the amalgamating company) engaged in setting up of integrated crude oil refinery
facilities along with ancillary units in a Special Economic Zone, has been amalgamated with the Company. The
Scheme of Amalgamation (the Scheme) was sanctioned by the Hon’ble High Court of Judicature at Bombay vide its
Order dated 29th June, 2009 and by the Hon’ble High Court of Gujarat at Ahmedabad vide its Order dated 29th July,
2009. The Scheme became effective on 11th September, 2009, the appointed date of the Scheme being 1st April, 2008.
In accordance with the said Scheme and as per the approval of the Hon’ble High Courts :

a) The assets, liabilities, rights and obligations of erstwhile RPL have been transferred to and vested with the
Company with effect from 1st April, 2008 and have been recorded at their respective fair values, under the
purchase method of accounting for amalgamation.

b) 6,92,52,623 Equity shares of Rs 10/- each fully paid up are to be issued to the equity share holders of the
amalgamating Company whose names are registered in the register of members on record date, without payment
being received in cash. Pending allotment, the face value of such shares has been shown as “Equity Share
Suspense”. The Company has since allotted the shares on 30th September, 2009.

339,19,58,030 Equity shares of erstwhile RPL held by the Company (including 22,50,00,000 equity shares held
by Chevron India Holding Pte Limited, Singapore subsequently purchased by the Company) have been cancelled.

d) Excess of the fair value of net assets taken over by the Company over the paid up value of Equity Shares to be
issued and allotted (as referred to under (b) above) of Rs. 13,429.09 crore has been credited to Securities
Premium Account.

Rs. 7,683.92 crore representing investments in erstwhile RPL prior to the Amalgamation and Rs. 45.00 crore
being the stamp duty and other expenditure payable on Amalgamation is written off and charged to the profit
and loss account and an equivalent amount has been withdrawn from General Reserve and credited to the profit
and loss account.

Had the Scheme not prescribed this accounting treatment, the aggregate amount of Rs. 5,700.17 crore would
have been credited to the Capital Reserve.

e) From the effective date the authorised share capital will stand increased to Rs. 6,000.00 crore consisting of

500,00,00,000 Equity Shares of Rs. 10 each and 100,00,00,000 Preference Shares of Rs. 10 each.

124

Enhancing Lives. Energising India. The Reliance Way

SCHEDULE ‘O’ (Contd.)

As per Accounting Standard 15 “Employee Benefits”, the disclosures as defined in the Accounting Standard
are given below:
Defined Contribution Plans
Contribution to Defined Contribution Plans, recognised as expense for the year are as under :

(Rs. in crore)

Employer’s Contribution to Provident Fund
Employer’s Contribution to Super annuation Fund
Employer’s Contribution to Pension Scheme

2008-09
52.19
11.72
15.53

2007-08
44.61
10.00
14.60

The Company’s Provident Fund is exempted under section 17 of Employees’ Provident Fund and Miscellaneous
Provisions Act, 1952. Conditions for grant of exemptions stipulate that the employer shall make good deficiency,
if any, in the interest rate declared by the trust vis-a-vis statutory rate.

Defined Benefit Plan
The employees’ gratuity fund scheme managed by a Trust (Life Insurance Corporation of India for erstwhile
RPL) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using
the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of
employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation
for leave encashment is recognised in the same manner as gratuity.

I) Reconciliation of opening and closing balances of Defined Benefit Obligation

Gratuity
(Funded)

2008-09

2007-08

Defined Benefit obligation at beginning of year
On Amalgamation
Current Service Cost
Interest Cost
Actuarial (gain) / loss
Benefits paid
Defined Benefit obligation at year end

291.46
0.78
16.86
22.30
(57.41)
(27.01)
246.98

261.27
-
20.78
18.34
55.12
(64.05)
291.46

II) Reconciliation of opening and closing balances of fair value of Plan Assets

Fair value of plan assets at beginning of year
On Amalgamation
Expected return on plan assets
Actuarial gain / (loss)
Employer contribution
Benefits paid
Fair value of plan assets at year end
Actual return on plan assets

(Rs. In crore)
Leave Encashment
(Unfunded)

2008-09

518.47
3.75
5.52
31.00
187.50
(269.47)
476.77

2007-08

441.99
-
22.80
33.47
67.40
(47.19)
518.47

(Rs. in crore)
Gratuity (Funded)

2008-09
190.04
0.08
17.05
3.98
72.00
(27.01)
256.14
21.03

2007-08
210.40
-
15.37
0.87
27.45
(64.05)
190.04
16.24

Reliance Industries Limited

125

SCHEDULE ‘O’ (Contd.)

III) Reconciliation of fair value of assets and obligations

Fair value of Plan assets
Present value of obligation
Amount recognized in Balance Sheet

Gratuity
(Funded)
As at 31st March

(Rs. In crore)

Leave Encashment
(Unfunded)
As at 31st March

2009

256.14
246.98
(9.16)

2008

190.04
291.46
101.42

2009

-
476.77
476.77

2008

-
518.47
518.47

IV) Expenses recognised during the year (Under the head “Payments to and Provisions for Employees”-

Refer Schedule ‘L’)

Current Service Cost
Interest Cost
Expected return on plan assets
Actuarial (gain) / loss
Net Cost

Investment Details :

GOI Securities
Public Securities
State Govt. Securities
Private Sector Securities [(includes equity shares of
Reliance Industries Limited, of Rs. 0.15 crore
(Previous year Rs. 0.15 crore)]
Insurance Policies
Others (including bank balances)

Gratuity
(Funded)

(Rs. In crore)

Leave Encashment
(Unfunded)

2008-09

2007-08

2008-09

2007-08

16.86
22.30
(17.05)
(61.39)
(39.28)

20.78
18.34
(15.37)
54.25
78.00

5.52
31.00
-
187.50
224.02

22.80
33.47
-
67.40
123.67

% Invested

As at 31st

As at 31st
March, 2009 March, 2008

13.34
14.24
7.66
0.16

64.45
0.15

100.00

19.02
19.72
11.14
1.12

48.76
0.24

100.00

VI) Actuarial assumptions

Mortality Table (LIC)

Gratuity
(Funded)

Leave Encashment
(Unfunded)

2008-09
1994-96
(Ultimate)

2007-08
1994-96
(Ultimate)

2008-09
1994-96
(Ultimate)

2007-08
1994-96
(Ultimate)

Discount rate (per annum)
Expected rate of return on plan assets (per annum)
Rate of escalation in salary (per annum)

8 %
8 %
4 %

8%
8%
6.5%

8 %
-
4 %

8%
-
6.5%

126

Enhancing Lives. Energising India. The Reliance Way

SCHEDULE ‘O’ (Contd.)

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority,
promotion and other relevant factors including supply and demand in the employment market. The above information
is certified by the actuary.
The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition
of Plan assets held, assessed risks, historical results of return on plan assets and the Company’s policy for plan
assets management.

5. Turnover includes Income from Services of Rs. 59.96 crore (Previous Year Rs. 67.58 crore) and sales during trial

period of Rs. 2,604.53 crore (Previous Year Rs. NIL).

6. The Company based on the report issued by international valuers has revalued plant & machinery, equipment and
buildings situated at Gandhar and Nagothane as at 1st January, 2009 by an amount of Rs. 12,900.63 crore and an
equivalent amount has been credited to Revaluation Reserve Account.
The Gross Block of Fixed Assets also includes Rs. 25,221.35 crore (Previous Year Rs. 25,221.35 crore) on account of
revaluation of Fixed Assets carried out in the past.
Consequent to the said revaluations there is an additional charge of depreciation of Rs. 1,987.14 crore (Previous Year
Rs. 1,780.71 crore) and an equivalent amount, has been withdrawn from Revaluation Reserve and credited to the
Profit and Loss Account. This has no impact on profit for the year.

7. The Company announced a Voluntary Separation Scheme (VSS) for the employees of Patalganga unit during the
year. About 430 employees accepted the VSS offered by the Company. A sum of Rs. 110.79 crore (Previous Year
Rs. 29.11 crore) has been paid during the year and debited to Profit and Loss Account under the head “Payment to
and Provisions for Employees”.
(a) Payment to Auditors:

(i) Audit Fees
(ii) Tax Audit Fees
(iii) For Certification and Consultation in finance and tax matters
(iv) Expenses Reimbursed

(b) Cost Audit Fees

9. Managerial Remuneration:

(Included under the head “Payments to and Provisions for Employees”)

(a) Remuneration to Managing Director / Executive Directors

(i) Salaries
(ii) Perquisites and allowances
(iii) Commission
(iv) Leave salary / Encashment
(v) Contribution to Provident fund and Superannuation fund
(vi) Provision for Gratuity

(b) Commission to Non-Executive Directors

2008-09
5.10
0.50
4.89
0.04

10.53

0.21

(Rs. in crore)

2007-08
5.10
0.50
3.55
0.03

9.18

0.20

2008-09

(Rs. in crore)

2007-08

1.34
1.66
34.23
0.55
0.36
0.07

38.21

1.89

1.32
1.63
64.13
0.04
0.33
0.08

67.53

1.85

Reliance Industries Limited

127

SCHEDULE ‘O’ (Contd.)

Computation of net profit in accordance with Section 349 of the Companies Act, 1956:

Profit before Taxation
Add: Depreciation as per accounts

Loss on sale / discarding of Fixed Assets
Investment Provided for
Managerial Remuneration

Less: Depreciation as per Section 350 of Companies Act, 1956

Premium on Investment in Preference Shares
Profit on buyback of Bonds/ Redemption of Debentures
Profit on sale of Fixed Assets
Profit on Sale of Investments
Net Profit for the year

Salaries, Perquisites and Commission to Managing Director /
Executive Directors calculated @ 0.402% of the Net profit.
(Previous Year @ 0.402%)

Less: Salaries & Perquisites of the Managing Director / Executive Directors

eligible for commission

Commission payable

Commission Restricted to

2008-09

18,433.23
5,195.29
16.65
3.44
36.26
23,684.87

7,182.43
0.05
-
9.57
425.40
16,067.42

64.59

2.03

62.56

34.23

(Rs. in crore)

2007-08

23,010.14
4,847.14
6.04
13.92
66.16
27,943.40

6,627.85
0.05
1.84
4.25
4,852.37
16,457.04

66.16

2.03

64.13

directors.

10. A sum of Rs. 2.14 crore (net debit) [Previous Year Rs. 2.02 crore (net debit)] is included under Establishment

expenses representing Net Prior Period Items.

11. Expenditure on account of Premium on forward exchange contracts to be recognised in the profit and loss account

of subsequent accounting period aggregates to Rs. 9.28 crore (Previous Year Rs. 0.47 crore)

12. (a) Fixed assets taken on finance lease prior to 1st April, 2001, amount to Rs. 512.36 crore (Previous year Rs. 527.52
crore). Future obligations towards lease rentals under the lease agreements as on 31st March, 2009 amount to
Rs. 5.45 crore (Previous year Rs. 6.04 crore).

Within one year

Later than one year and not later than five years

Later than five years

Total

(Rs. in crore)

2008-09

2007-08

0.58

2.34

2.53

5.45

0.58

2.34

3.12

6.04

128

Enhancing Lives. Energising India. The Reliance Way

SCHEDULE ‘O’ (Contd.)

(b)

In respect of Fixed Assets acquired on finance lease on or after 1st April, 2001, the minimum lease rentals
outstanding as on 31st March, 2009 are as follows:

Total Minimum
Lease Payments
outstanding
As at 31st March
2008

2009

Future interest
on Outstanding
Lease Payments

2008-09

2007-08

(Rs. in crore)

Present value of
Minimum
Lease Payments
As at 31st March
2008

2009

Within one year

1.51

Later than one year and not later than five years 0.39

Later than five years

Total

0.20

2.10

3.39

2.24

0.18

5.81

0.08

0.06

0.09

0.23

0.28

0.14

0.06

0.48

1.43

0.33

0.11

1.87

3.11

2.10

0.12

5.33

(i) Lease rentals are charged on the basis of agreed terms.

(ii) Assets are taken on lease over a period of 3 to 15 years.

(d) The Company had taken aircrafts on non-cancellable operating lease and lease rent amounting to Rs. 27.24
crore (Previous Year Rs. 27.17 crore) has been charged to Profit and Loss Account. The future minimum lease
payments as at 31st March, 2009 are Rs. NIL (Previous Year Rs. 143.05 crore).

During the year, the aircraft lease has been transferred to Reliance Commercial Dealers Limited, one of the
associates under an agreement.

13. (a) (i) Assets given on finance lease on or after 1st April, 2001

Particulars

Total

Not later than
one year

Later than one
year and not later
than five years

(Rs. in crore)
Later than
five years

Gross Investment

2008-09 2007-08 2008-09 2007-08 2008-09 2007-08 2008-092007-08
-

109.74

106.04

30.71

79.03

23.76

82.28

Less: Unearned Finance Income

18.29

20.56

8.13

7.57

10.16

12.99

Present Value of Minimum
Lease Rental

91.45

85.48

22.58

16.19

68.87

69.29

(ii) General Description of Lease terms:

(cid:129) Lease rentals are charged on the basis of agreed rate of interest.

(cid:129) Assets are given on lease for a period of five years.

(b) Miscellaneous income includes income from finance lease of Rs. 9.01 crore (Previous Year Rs. 4.63 crore)

Reliance Industries Limited

129

SCHEDULE ‘O’ (Contd.)

14. The deferred tax liability comprise of the following:

a. Deferred Tax Liability
Related to fixed assets

b. Deferred Tax Asset

Disallowances under the Income Tax Act 1961

15. EARNINGS PER SHARE (EPS)

i) Net Profit after tax as per Profit and Loss Account (Rs. in crore)
ii) Excess provision for tax of earlier years (Rs. in crore)
iii) Net profit attributable to Equity Shareholders (Rs. in crore)
iv) Net Profit before Exceptional item (Rs. in crore)
v) Weighted Average number of equity shares used as

denominator for calculating EPS

As at 31st
March, 2009

(Rs. in crore)
As at 31st
March, 2008

9,973.81

8,183.07

247.51
9,726.30

310.53
7,872.54

2008-09

2007-08

15,309.32
-
15,309.32
15,637.04
158,21,67,869*

19,458.29
48.10
19,506.39
15,309.20
145,36,48,601

vi) Basic and Diluted Earnings per share (Rs.)
vii) Basic and Diluted Earnings (before exceptional items) per share (Rs.)
viii) Face Value per equity share (Rs.)

96.76
98.83
10.00

134.19
105.32
10.00

* Including 6,92,52,623 equity shares issued to erstwhile RPL shareholders.

16. PROJECT DEVELOPMENT EXPENDITURE

(in respect of Projects up to 31st March, 2009, included under Capital work-in-progress)

Opening Balance
Add: On Amalgamation

Add: Transferred from profit & loss account :

Schedule - L
Schedule - J
Interest Capitalised
Exchange Difference

1,419.04
1,141.41

3,354.17
(88.52)
3,396.91
10,939.75

2008-09

2,560.45

17,602.31
20,162.76

Less: Project Development Expenses Capitalised during the year

3,067.57

Closing Balance

17,095.19

(Rs. in crore)

2007-08

410.41
-

175.46
-
884.96
45.30

410.41

1,105.72
1,516.13

97.09

1,419.04

130

Enhancing Lives. Energising India. The Reliance Way

SCHEDULE ‘O’ (Contd.)

17. RELATED PARTY DISCLOSURES :

As per Accounting Standard 18, the disclosures of transactions with the related parties as defined in the Accounting
Standard are given below:
(i) List of related parties where control exists and related parties with whom transactions have taken place and

relationships:

Relationship

Subsidiary Companies

Sr. No. Name of the Related Party
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.

Reliance Industrial Investments and Holdings Limited
Reliance Ventures Limited
Reliance Strategic Investments Limited
Reliance Industries (Middle East) DMCC
Reliance Jamnagar Infrastructure Limited
Reliance Retail Limited
Reliance Netherland B.V.
Reliance Haryana SEZ Limited
Reliance Fresh Limited
Retail Concepts and Services (India) Limited
Reliance Retail Insurance Broking Limited
Reliance Dairy Foods Limited
Reliance Exploration & Production DMCC
Reliance Retail Finance Limited
RESQ Limited
Reliance Global Management Services Limited
(Formerly Reliance Global Management Services Private Limited)
Reliance Commercial Associates Limited
Reliance Digital Retail Limited
Reliance Financial Distribution and Advisory Services Limited
RIL (Australia) Pty Limited
Reliance Hypermart Limited
Gapco Kenya Limited
Gapco Rwanda SARL
Gapco Tanzania Limited
Gapco Uganda Limited
Gapoil (Zanzibar) Limited
Gapoil Tanzania Limited
Gulf Africa Petroleum Corporation
Transenergy Kenya Limited
Recron (Malaysia) Sdn Bhd
Reliance Retail Travel & Forex Services Limited
Reliance Brands Limited
Reliance Footprint Limited
Reliance Trends Limited

17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.

Reliance Industries Limited

131

SCHEDULE ‘O’ (Contd.)

Sr. No. Name of the Related Party

Relationship

35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.

57.
58.

59.
60.

61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.

Reliance Wellness Limited
Reliance Lifestyle Holdings Limited
Reliance Universal Ventures Limited
Delight Proteins Limited
Reliance Autozone Limited
Reliance F&B Services Limited
Reliance Gems and Jewels Limited
Reliance Integrated Agri Solutions Limited
Strategic Manpower Solutions Limited
Reliance Agri Products Distribution Limited
Reliance Digital Media Limited
Reliance Food Processing Solutions Limited
Reliance Home Store Limited
Reliance Leisures Limited
Reliance Loyalty & Analytics Limited
Reliance Retail Securities and Broking Company Limited
Reliance Supply Chain Solutions Limited
Reliance Trade Services Centre Limited
Reliance Vantage Retail Limited (Formerly Advantage Retail Private Limited)
Reliance International Exploration and Production, Inc.
Wave Land Developers Limited (Formerly Peninsula Land Kenya Limited)
Reliance Vision Express Private Limited (Upto 25.07.2008)
(Formerly Abcus Retail Private Limited)
Reliance-Grand Optical Private Limited (Formerly Bigdeal Retail Private Limited)
Reliance Universal Commercial Limited
(Formerly Reliance Neutraceuticals Private Limited)
Reliance Petroinvestments Limited
Reliance Global Commercial Limited
(Formerly Reliance Pharmaceuticals (India) Private Limited)
Reliance Cyprus Limited (Formerly Wavely Investments Limited)
Reliance People Serve Limited (From 01.04.2008)
Reliance Infrastructure Management Services Limited (From 01.04.2008)
Reliance Global Business, B.V. (From 04.04.2008)
Reliance Gas Corporation Limited (From 03.06.2008)
Reliance Global Energy Services Limited (From 20.06.2008)
Reliance One Enterprises Limited (From 01.08.2008)
Reliance Global Energy Services (Singapore) Pte. Ltd. (From 18.08.2008)
Reliance Personal Electronics Limited (From 01.08.2008)
Reliance Polymers (India) Limited (From 26.09.2008)
Reliance Polyolefins Limited (From 27.09.2008)
Reliance Aromatics and Petrochemicals Private Limited (From 27.09.2008)

Subsidiary Companies

132

Enhancing Lives. Energising India. The Reliance Way

SCHEDULE ‘O’ (Contd.)

Sr. No. Name of the Related Party

Relationship

73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
88.
89.
90.
91.
92.
93.
94.
95.
96.
97.
98.

99.
100.
101.
102.
103.
104.
105.
106.
107.
108.
109.

Reliance Energy and Project Development Private Limited (From 27.09.2008)
Reliance Chemicals Private Limited (From 27.09.2008)
Reliance Universal Enterprises Private Limited (From 27.09.2008)
International Oil Trading Limited (From 24.11.2008)
Reliance Review Cinema Private Limited (From 01.02.2009)
Reliance Replay Gaming Private Limited (From 01.02.2009)
Reliance Nutritional Food Processors Private Limited (From 01.01.2009)
RIL USA Inc. (From 26.02.2009)
Reliance Commercial Land & Infrastructure Private Limited (From 30.03.2009)
Reliance Corporate IT Park Limited (From 30.03.2009)
Reliance Eminent Trading & Commercial Private Limited (From 31.03.2009)
Reliance Progressive Traders Private Limited (From 31.03.2009)
Reliance Prolific Traders Private Limited (From 31.03.2009)
Reliance Universal Traders Private Limited (From 31.03.2009)
Reliance Prolific Commercial Private Limited (From 31.03.2009)
Reliance Comtrade Private Limited (From 31.03.2009)
Reliance Ambit Trade Private Limited (From 31.03.2009)
Reliance Petro Marketing Private Limited (From 31.03.2009)
LPG Infrastructure (India) Private Limited (From 31.03.2009)
Reliance Infosolutions Private Limited (From 31.03.2009)
Reliance Industrial Infrastructure Limited
Reliance Europe Limited
Reliance LNG Limited
Indian Vaccines Corporation Limited
Gujarat Chemicals Port Terminal Company Limited
Reliance Utilities and Power Private Limited
(formerly Reliance Utilities and Power Limited)
Reliance Utilities Private Limited (formerly Reliance Utilities Limited)
Reliance Ports and Terminals Limited
Reliance Gas Transportation Infrastructure Limited
Shri Mukesh D. Ambani
Shri Nikhil R. Meswani
Shri Hital R. Meswani
Shri H.S. Kohli
Dhirubhai Ambani Foundation
Jamnaben Hirachand Ambani Foundation
Hirachand Govardhandas Ambani Public Charitable Trust
HNH Trust and HNH Research Society

Subsidiary Companies

Associates

Key Managerial Personnel

Enterprises over which
Key Managerial Personnel
are able to exercise
significant influence

Reliance Industries Limited

133

SCHEDULE ‘O’ (Contd.)

(ii) Transactions during the year with related parties :

Sr. Nature of Transactions
No.

(Excluding reimbursements)

Subsidiaries Associates Key Managerial Others

Total

Personnel

(Rs. in crore)

Purchase of Fixed Assets

Sale of Fixed Assets

Purchase / Subscription of Investments

Sale / redemption of Investments

908.00
146.87

-
0.42

0.35
71.58

-
-

4,292.16
5,575.90

2,000.41
-

Premium Accrued on Investment in Preference Shares

Loans and advances given/ (returned)

Turnover

Other Income

Purchases

10.

Electric Power, Fuel and Water

11. Hire Charges

12. Manpower Deputation Charges

13.

Payment to Key Managerial Personnel

14.

Sales and Distribution Expenses

15. Rent

16.

Professional Fees

-
-

102.23
-

-
-

(4.89)
23.10

29.53
30.10

5.35
12.59

-
-

685.74
318.81

76.34
92.36

0.06
450.00

0.27
0.22

(193.54)
(2.33)

3,304.04
1,212.44

205.50
287.20

598.93
501.92

-
-

40.12
-

-
-

4.47
-

-
-

38.21
67.53

73.61
-

1,263.23
1,051.88

4.50
-

39.01
-

2.25
84.00

16.60
14.92

-
-

908.35
218.45

-
0.42

6,292.57
5,575.90

102.29
450.00

0.27
0.22

(198.43)
20.77

3,333.57
1,242.54

210.85
299.79

598.93
501.92

685.74
318.81

76.34
92.36

44.59
-

38.21
67.53

1,336.84
1,051.88

6.75
84.00

55.61
14.92

134

Enhancing Lives. Energising India. The Reliance Way

SCHEDULE ‘O’ (Contd.)

Sr. Nature of Transactions
No.

(Excluding reimbursements)

17. General expenses

18. Donations

19.

Interest Expenses

Balance as at 31st March, 2009

20.

Investments

21.

Sundry Debtors

22. Loans & Advances

23.

Sundry Creditors

24.

Financial Guarantees

25.

Performance Guarantees

Subsidiaries Associates Key Managerial Others Total

Personnel

66.04
1.00

-
-

3.64
-

9.05
10.11

-
-

16,668.52
18,710.34

2,051.69
51.28

359.29
917.14

119.91
15.26

6,459.73
6,311.01

1,449.64
3,160.01

86.31
30.35

1,598.31
7,448.56

1.50
137.74

257.17
149.80

431.12
360.02

11.07
137.68

-
-

37.23
82.21

-
-

75.09
11.11

37.23
82.21

3.64
-

18,720.21
18,761.62

479.20
932.40

7,909.37
9,471.02

343.48
180.15

2,029.43
7,808.58

12.57
275.42

Note :
1.

Figures in italic represent previous year’s amount including transactions with Erstwhile Reliance Petroleum Limited.

2. The Company has recognised Rs. 369.60 crore towards liabilities on account of corporate guarantees issued on

behalf of Reliance Netherland B.V.

Reliance Industries Limited

135

SCHEDULE ‘O’ (Contd.)
Disclosure in Respect of Material Related Party Transactions during the year :
1.

Purchase of Fixed Assets include Reliance Jamnagar Infrastructure Limited Rs. 730.64 crore (Previous Year Rs. 138.28
crore), Reliance Retail Limited Rs. 171.34 crore (Previous Year Rs. 8.57 crore), Reliance Home Store Limited Rs. 5.48
crore (Previous Year Rs. NIL), Reliance Europe Limited Rs. 0.35 crore (Previous Year Rs. 1.39 crore), Reliance Ports
and Terminals Limited Rs. NIL (Previous Year Rs. 70.19 crore).

Purchase / Subscription of Investments include Reliance Industrial Investments and Holdings Limited Rs. 1,750.00
crore (Previous Year Rs. NIL), Reliance Ventures Limited Rs. NIL (Previous Year Rs. 749.00 crore), Reliance Strategic
Investments Limited Rs. NIL (Previous Year Rs. 4,216.92 crore), Reliance Industries (Middle East) DMCC Rs. 355.04
crore (Previous Year Rs. 39.64 crore), Reliance Jamnagar Infrastructure Limited Rs. 1,275.00 crore (Previous Year Rs.
NIL), Reliance Exploration & Production DMCC Rs. 912.11 crore (Previous Year Rs. 552.65 crore), RIL (Australia) Pty
Limited Rs. NIL (Previous Year Rs. 17.46 crore), Reliance Gas Transportation Infrastructure Limited Rs. 2,000.00 crore
(Previous Year Rs. NIL).

Sale / redemption of Investments include Reliance Strategic Investments Limited Rs. NIL (Previous Year Rs. 450.00
crore), Reliance Gas Transportation Infrastructure Limited Rs. 102.23 crore (Previous Year Rs. NIL).

4. Loans given during the year include Reliance Industrial Investments and Holdings Limited Rs. 1,211.15 crore
(Previous year Rs. 2,519.46 crore), Reliance Retail Limited Rs. 1,156.32 crore (Previous year Rs. 23.20 crore), Reliance
Exploration & Production DMCC Rs. 19.97 crore (Previous year Rs. NIL), Gapco Kenya Limited Rs. 22.94 crore
(Previous year Rs. NIL), Gapco Tanzania Limited Rs. 166.06 crore (Previous year Rs. NIL), Gapoil Tanzania Limited
Rs. 179.35 crore (Previous year Rs. NIL), Reliance Global Business B.V. Rs. 200.57 crore (Previous year Rs. NIL),
Reliance Gas Corporation Limited Rs. 5.96 crore (Previous year Rs. NIL), Reliance Infosolutions Private Limited Rs.
107.59 crore (Previous year Rs. NIL), Gujarat Chemicals Port Terminal Company Limited Rs. 0.14 crore (Previous year
Rs. 22.25 crore). Loans returned during the year from Reliance Ventures Limited Rs. 1,001.49 crore (Previous year Rs.
2,489.90 crore), Reliance Strategic Investments Limited Rs. 14.05 crore (Previous year Rs. 1,636.81 crore), Reliance
Industries (Middle East) DMCC Rs. 447.63 crore (Previous year Rs. 546.19 crore), Reliance Jamnagar Infrastructure
Limited Rs. 1,619.00 crore (Previous year Rs. 964.00 crore), Reliance Netherland B.V. Rs. 145.99 crore (Previous year
Rs. 148.39 crore), Reliance Exploration & Production DMCC Rs. NIL (Previous year Rs. 115.69 crore), Recron
(Malaysia) Sdn Bhd Rs. 35.30 crore (Previous year Rs. 42.11 crore), Reliance Industrial Infrastructure Limited Rs.
10.00 crore (Previous year Rs. NIL).

5. Turnover include to Reliance Industries (Middle East) DMCC Rs. 234.07 crore (Previous Year Rs. 358.69 crore),
Reliance Jamnagar Infrastructure Limited Rs. 14.25 crore (Previous Year Rs. 12.65 crore), Reliance Retail Limited Rs.
1.25 crore (Previous Year Rs. 149.26 crore), Reliance Netherland B.V. Rs. NIL (Previous Year Rs. 84.81 crore), Reliance
Dairy Foods Limited Rs. NIL (Previous Year Rs. 12.14 crore), Gapco Kenya Limited Rs. 2,341.53 crore (Previous Year
Rs. 154.56 crore), Gapco Tanzania Limited Rs. 139.56 crore (Previous Year Rs. NIL), Gapoil Tanzania Limited Rs.
272.07 crore (Previous Year Rs. NIL), Recron (Malaysia) Sdn Bhd Rs. 143.24 crore (Previous Year Rs. NIL), Reliance
Supply Chain Solutions Limited Rs. 1.29 crore (Previous Year Rs. NIL), International Oil Trading Limited Rs. 155.11
crore (Previous Year Rs. NIL), Reliance Utilities Private Limited Rs. 25.02 crore (Previous Year Rs. 17.10 crore),
Reliance Ports and Terminals Limited Rs. 0.03 crore (Previous Year Rs. 2.37 crore), Reliance Gas Transportation
Infrastructure Limited Rs. 4.48 crore (Previous Year Rs. 10.63 crore).

6. Other Income from Reliance Industrial Investments and Holdings Limited Rs. 14.14 crore (Previous Year Rs. 24.75
crore), Reliance Ventures Limited Rs. 112.91 crore (Previous Year Rs. 213.02 crore), Reliance Strategic Investments
Limited Rs. 17.96 crore (Previous Year Rs. 11.29 crore), Reliance Industries (Middle East) DMCC Rs. 5.49 crore
(Previous Year Rs. 14.80 crore), Reliance Jamnagar Infrastructure Limited Rs. 1.04 crore (Previous Year Rs. 1.59

136

Enhancing Lives. Energising India. The Reliance Way

SCHEDULE ‘O’ (Contd.)

crore), Reliance Netherland B.V. Rs. NIL (Previous Year Rs. 2.66 crore), Reliance Exploration & Production DMCC Rs.
19.97 crore (Previous Year Rs. 16.40 crore), Gapco Kenya Limited Rs. 3.16 crore (Previous Year Rs. NIL), Gapco
Tanzania Limited Rs. 11.45 crore (Previous Year Rs. NIL), Gapoil Tanzania Limited Rs. 10.35 crore (Previous Year Rs.
NIL), Recron (Malaysia) Sdn Bhd Rs. 5.24 crore (Previous Year Rs. 1.57 crore), Reliance Global Business B.V. Rs. 3.71
crore (Previous Year Rs. NIL), Reliance Industrial Infrastructure Limited Rs. 2.14 crore (Previous Year Rs. 2.45 crore),
Gujarat Chemicals Port Terminal Company Limited Rs. 1.92 crore (Previous Year Rs. NIL), Reliance Ports and Terminals
Limited Rs. NIL (Previous Year Rs. 8.56 crore), Reliance Europe Limited Rs. 1.29 crore (Previous Year Rs. 1.22 crore)

Purchases from Reliance Industrial Investments and Holdings Limited Rs. 32.06 crore (Previous Year Rs. 184.68
crore), Reliance Industries (Middle East) DMCC Rs. 566.87 crore (Previous Year Rs. NIL), Reliance Jamnagar
Infrastructure Limited Rs. NIL (Previous Year Rs. 1.71 crore).

8. Electric Power, Fuel and Water charges paid to Reliance Utilities and Power Private Limited Rs. 289.88 crore (Previous

Year Rs. 318.81 crore), Reliance Utilities Private Limited Rs. 395.86 crore (Previous Year Rs. NIL).

9. Hire Charges paid to Reliance Europe Limited Rs. 4.63 crore (Previous Year Rs. 8.88 crore), Reliance Industrial
Infrastructure Limited Rs. 22.53 crore (Previous Year Rs. 21.35 crore), Gujarat Chemicals Port Terminal Company
Limited Rs. 42.05 crore (Previous Year Rs. 62.13 crore), Reliance Gas Transportation Infrastructure Limited Rs. 7.14
crore (Previous Year Rs. NIL).

10. Manpower Deputation Charges to Reliance Retail Limited Rs. 20.81 crore (Previous Year Rs. NIL), Reliance Trends
Limited Rs. 12.00 crore (Previous Year Rs. NIL), Reliance Petroinvestments Limited Rs. 2.75 crore (Previous Year Rs.
NIL), Reliance People Serve Limited Rs. 4.20 crore (Previous Year Rs. NIL), Reliance Industrial Infrastructure Limited
Rs. 4.47 crore (Previous Year Rs. NIL).

11. Payment to Key Management Personnel include to Shri Mukesh D. Ambani Rs. 15.00 crore (Previous Year Rs. 44.02
crore), Shri Nikhil R. Meswani Rs. 10.93 crore (Previous Year Rs. 11.13 crore), Shri Hital R. Meswani Rs. 10.93 crore
(Previous Year Rs. 11.12 crore), Shri H.S. Kohli Rs. 1.35 crore (Previous Year Rs. 1.26 crore).

12. Sales and Distribution Expenses include to Reliance Retail Limited Rs. 72.84 crore (Previous Year Rs. NIL), Reliance
Ports and Terminals Limited Rs. 1,255.26 crore (Previous Year Rs. 1,050.82 crore) Gujarat Chemicals Port Terminal
Company Limited Rs. 7.97 crore (Previous Year Rs. NIL).

13. Rent paid to Reliance Supply Chain Solutions Limited Rs. 4.50 crore (Previous Year Rs. NIL), Reliance Industrial
Infrastructure Limited Rs. 2.25 crore (Previous Year Rs. NIL), Reliance Ports and Terminals Limited Rs. NIL (Previous
Year Rs. 84.00 crore).

14. Professional Fees paid to Reliance Financial Distribution and Advisory Services Limited Rs.14.00 crore (Previous
Year Rs. NIL), Reliance Universal Ventures Limited Rs. 3.50 crore (Previous Year Rs. NIL), Reliance Supply Chain
Solutions Limited Rs. 21.00 crore (Previous Year Rs. NIL), Reliance Europe Limited Rs. 16.60 crore (Previous Year Rs.
14.92 crore).

15. General expenses include to Reliance Jamnagar Infrastructure Limited Rs. 60.01 crore (Previous Year Rs. NIL),
Reliance Hypermart Limited Rs. 1.95 crore (Previous Year Rs. NIL), Reliance Retail Travel & Forex Services Limited
Rs. 1.63 crore (Previous Year Rs. NIL), Reliance Industrial Infrastructure Limited Rs. 9.00 crore (Previous Year Rs.
10.11 crore).

16. Donations to Dhirubhai Ambani Foundation Rs. 35.47 crore (Previous Year Rs. 14.55 crore), Jamnaben Hirachand

Ambani Foundation Rs. 0.04 crore (Previous Year Rs. 66.06 crore).

17.

Interest Expenses include to LPG Infrastructure (India) Private Limited Rs. 3.64 crore (Previous Year Rs. NIL).

Reliance Industries Limited

137

SCHEDULE ‘O’ (Contd.)

18. Loans and Advances in the nature of Loans given to Subsidiaries and Associates:

A) Loans and Advances in the nature of Loans

Sr Name of the Company
No.

As at 31st

March, 2009 March, 2008

(Rs. in crore)
As at 31st Maximum
Balance
during the
year

1. Reliance Industrial Investments and Holdings Limited * Subsidiary

4,104.04

2,887.87

2. Reliance Ventures Limited

3. Reliance Strategic Investments Limited
4. Reliance Industries (Middle East) DMCC

5. Gapco Kenya Limited

6. Gapoil Tanzania Limited

7. Gapco Tanzania Limited

8. Reliance Exploration & Production DMCC

9. Reliance Jamnagar Infrastructure Limited

10. Reliance Netherland B.V.

11. Gujarat Chemicals Port Terminal Company Limited

Subsidiary

Subsidiary
Subsidiary

Subsidiary

Associate

-
87.31

19.78

169.00

154.61

22.38

* Excluding Debentures of Rs. 721.48 crore (Previous Year Rs.721.48 crore)

Notes:

836.74

8.37
540.44

6,648.59

1,810.23

511.12
688.99

19.78

169.00

154.61

590.24

1,619.00

2,018.00

146.03

19.00

146.03

22.38

(a) Loans and Advances shown above, to Subsidiaries fall under the category of ‘Loans & Advances’ in nature of

Loans where there is no repayment schedule and are re-payable on demand.

(b) All the above loans and advances are interest bearing except for an amount of Rs. 3,861.23 crore to Reliance
Industrial Investments and Holdings Limited and Rs. 87.31 crore to Reliance Industries (Middle East) DMCC.

(i)

Investment by the loanee in the shares of the Company

*None of the loanees and loanees of subsidiary companies have, per se, made investments in shares of the
Company. These investments represent shares of the Company allotted as a result of amalgamation of erstwhile
Reliance Petroleum Limited (amalgamation in 2001-02) with the Company under the Scheme approved by the
Hon’ble High Court of Bombay and Gujarat and subsequent inter se transfer of shares amongst them.

Name of the Company

(Rs. in crore)

No. of Shares

Amount

*Reliance Chemicals Private Limited
*Reliance Aromatics and Petrochemicals Private Limited
*Reliance Energy and Project Development Private Limited
*Reliance Polyolefins Limited

3,11,19,999
29,71,000
10,29,000
3,05,97,462

544.14
528.19
649.48
346.10

Sr
No.
1.
2.
3.
4.

138

Enhancing Lives. Energising India. The Reliance Way

SCHEDULE ‘O’ (Contd.)

(ii) Investments by Reliance Industrial Investments and Holdings Limited in subsidiaries

(a) In Equity Shares :

Sr No. Name of the Company
1.
2.
3.
4.

Reliance Commercial Land & Infrastructure Private Limited
Reliance Global Business B.V.
Reliance Gas Corporation Limited
Reliance Polymers (India) Limited

(b) In Preference Shares :

Sr No. Name of the Company
1.
2.
3.
4.

Reliance Chemicals Private Limited
Reliance Aromatics and Petrochemicals Private Limited
Reliance Polyolefins Limited
Reliance Petromarketing Private Limited

(iii) Investments by Reliance Industries (Middle East) DMCC in subsidiaries

(a) In Equity Shares :

Sr No. Name of the Company
1.
2.
3.

Gulf Africa Petroleum Corporation
Reliance Global Energy Services Limited
Reliance Global Energy Services (Singapore) Pte. Limited

19. (a) Disclosure of the Company’s Interest in Oil and Gas Joint Ventures:

Sr. No. Name of the Fields in the
Joint Ventures
Panna Mukta
Tapti
NEC – OSN - 97/2
KG – DWN - 98/3
GS – OSN - 2000/1
GK - OSJ - 3
GK - OS - 5

1.
2.
3.
4.
5.
6.
7.

% Interest

30% (30%)
30% (30%)
90% (90%)
90% (90%)
90% (90%)
60% (60%)
40% (40%)

Sr. No. Name of the Fields in the
Joint Ventures
CB - ON/1
AS – ONN - 2000/1
KG – DWN - 2001/1
KG – DWN – 2003/1
MN – DWN – 2003/1
KG-DWN-2005/2

8.
9.
10.
11.
12.
13.

No. of Shares
4,30,10,000
18,00,000
50,000
10,000

No. of Shares
13,44,700
2,28,080
1,92,320
40,56,000

No. of Shares
16,720
1
15,00,000

% Interest

40% (40%)
90% (90%)
90% (90%)
90% (90%)
85% (85%)
70% (NIL)

Figures in bracket represents Previous Year’s percentage (%) interest.

(b) Net Quantities of Company’s interest (on gross basis) in proved reserves and proved developed reserves:

Oil:
Beginning of the year
Additions
Deletion
Production
Closing balance

Proved Reserves
(Million MT)

Proved Developed
Reserves (Million MT)

2008-09

2007-08

2008-09

2007-08

11.64
0.12
-
0.74
11.02

12.47
-
0.16
0.67
11.64

3.58
2.13
-
0.74
4.97

4.21
0.04
-
0.67
3.58

Reliance Industries Limited

139

SCHEDULE ‘O’ (Contd.)

Gas:
Beginning of the year
Additions
Deletion
Production
Closing balance

Proved Reserves
(Million M3*)

Proved Developed
Reserves (Million M3*)

2008-09

2007-08

2008-09

2007-08

2,22,188
168
-
1,888
2,20,468

2,22,145
1,705
-
1,662
2,22,188

16,842
1,18,940
-
1,888
1,33,894

16,776
1,728
-
1,662
16,842

* 1 cubic meter (M3) = 35.315 cubic feet and 1 cubic feet = 1000BTU

20. As per Accounting Standard (AS) 17 on “Segment Reporting”, segment information has been provided under the

Notes to Consolidated Financial Statements.

21. ADDITIONAL INFORMATION

(A) Estimated amount of contracts remaining to be executed on

Capital accounts and not provided for:
(i)
(ii) In respect of others

In respect of joint Ventures

(B) Uncalled liability on partly paid Shares

(Net of calls in advance)

As at
31st March, 2009

(Rs. in crore)
As at
31st March, 2008

2,992.66
22,901.77

9,889.25
12,682.82

4,310.00

5,490.00

(i) Outstanding guarantees furnished to Banks

and Financial Institutions including in respect of Letters of credit
(a) In respect of joint Ventures
(b) In respect of others

(ii) Guarantees to Banks and Financial Institutions against

credit facilities extended to third parties
(a) In respect of joint Ventures
(b) In respect of others

(iii) Liability in respect of bills discounted with Banks

(Including third party bills discounting)
(a) In respect of joint Ventures
(b) In respect of others

-
4,316.25

-
2,032.94

-
1,347.88

(iv) Claims against the Company / disputed liabilities not acknowledged as debts

(a) In respect of joint Ventures
(b) In respect of others

-
1,268.99

79.26
2,456.91

-
7,817.26

-
501.63

43.22
781.63

140

Enhancing Lives. Energising India. The Reliance Way

SCHEDULE ‘O’ (Contd.)

(v) Performance Guarantees

(a) In respect of joint Ventures
(b) In respect of others

(vi) Sales tax deferral liability assigned

-
112.80

5,406.89

-
275.44

5,441.80

(D) The Income-Tax assessments of the Company have been completed up to Assessment Year 2006-07. The
disputed demand outstanding up to the said Assessment Year is Rs. 482.25 crore. Based on the decisions of the
Appellate authorities and the interpretations of other relevant provisions, the Company has been legally
advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has
been made.

22. LICENSED AND INSTALLED CAPACITY

(As certified by the Management)

Refining of Crude Oil

A
B i Ethylene

ii Propylene
iii Benzene
iv Toluene
v Xylene
vi Hydro Cynic Acid
vii Ethane Propane Mix
viii Caustic Soda Lye/Flakes

ix Chlorine
x Acrylonitrile
xi Linear Alkyl Benzene
xii Butadiene & Other C4s
xiii Cyclohexane

C i Paraxylene

ii Orthoxylene
iii Toluole

D
E
F
G
H
I

Poly Vinyl Chloride
High/Linear Low Density Poly Ethylene
High Density Polyethylene Pipes
Poly Butadiene Rubber
Polypropylene

i Mono Ethylene Glycol
ii Higher Ethylene Glycol
iii Ethylene Oxide

Purified Terephthalic Acid

Licensed Capacity
As at 31st March,
2008
2009

N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
3,600
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.

N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
3,600
N.A.
N.A.
N.A.
N.A.
N.A
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.

UNIT

Mill. MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT

Installed Capacity
As at 31st March,

2009

33
1,883,400
759,800
730,000
197,000
165,000
3,600
450,000
168,000
141,200
41,000
182,400
419,000
40,000
1,904,600
467,900
180,000
625,000
1,115,000
80,000
74,000
1,735,200
733,400
52,080
116,000
2,050,000

2008

33
1,883,400
759,740
730,000
197,000
165,000
3,600
450,000
165,825
105,000
41,000
182,338
419,000
-
1,904,600
467,900
180,000
625,000
1,055,000
80,000
73,920
1,735,190
733,400
52,080
91,000
2,050,000

Reliance Industries Limited

141

SCHEDULE ‘O’ (Contd.)

K
L

Polyester Filament Yarn/Polyester Chips
MT
Polyester Staple Fibre/ Acrylic Fibre / Chips MT

Poly Ethylene Terephthalate

Polyester Staple Fibre Fill

Man-made Fibre Spun Yarn on worsted system Nos

Man-made fibre on cotton system (Spindles) Nos

Q i Man-made Fabrics (Looms)

ii Knitting M/C

Solar Photovoltaic Modules

Nos

M.W.

N.A.
N.A.

N.A.

N.A.
N.A.

N.A.

822,725+
741,612

290,000

42,000

24,094

23,040

364

815,725+
741,612

290,000

42,000

24,094

23,040

309

N.A.

NA - Delicensed vide notification No 477(E) dated 27th July 1991 and press note No. 1 (1998 series) dated 8th June
1998

+ Includes 32,300 MT based on average denier of 40

23.

(a) The Ministry of Corporate Affairs, Government of India vide its Order No. 46/66/2009-CL-III dated 10th July, 2009
and modified on 25th August, 2009 issued under Section 211(4) of the Companies Act, 1956 has exempted the
Company from disclosure of quantitative details in the profit and loss account under paras 3(i)(a), 3(ii)(a) (1) &
(2), 3(ii)(b) of Part II, Schedule VI to the Companies Act, 1956.

(b) The Ministry of Corporate Affairs, Government of India vide its Order No. 47/242/2009-CL-III dated 12th May,
2009, 4th August, 2009, 13th August, 2009 has granted approval that the requirement to attach various documents
in respect of subsidiaries companies, as set out in sub-section (1) of section 212 of the Companies Act, 1956,
shall not apply to the Company. As per the order, financial information of each subsidiary is attached.

24. PRODUCTION MEANT FOR SALE :

Products

Crude Oil

Gas

Petroleum Products

Ethylene

Propylene

Benzene

Toluene

Caustic Soda lye / Flakes

Acrylonitrile

Linear Alkyl Benzene

Butadiene

Cyclohexane

Paraxylene

Orthoxylene

Unit

BBTU

'000 MT

2008-09

683,023

63,393

29,733

9,917

134

593,796

104,580

133,779

30,445

154,586

88,307

18,057

572,254

223,976

2007-08

642,596

40,884

29,532

52,546

11,687

594,291

109,499

137,968

39,005

198,287

108,409

744,481

268,789

142

Enhancing Lives. Energising India. The Reliance Way

SCHEDULE ‘O’ (Contd.)

Poly Vinyl Chloride

Polyethylene

High Density Polyethylene Pipes

Poly Butadiene Rubber

Polypropylene

Ethylene Glycol

Purified Terephthalic Acid

Polyester Filament Yarn

Polyester Staple Fibre

Poly Ethylene Terephthalate

Polyester Staple Fibre Fill

Fabrics

613,783

579,817

990,189

1,085,224

Mtrs. In lacs

71,974

74,404

1,513,644

1,712,124

352,182

648,219

694,592

578,462

297,870

39,729

476,568

804,649

753,340

637,857

244,835

43,490

215

Mtrs. in Lacs

174

25. Financial and Derivative Instruments

a) Derivative contracts entered into by the Company and outstanding as on 31st March, 2009

(i) For hedging Currency and Interest Rate Related Risks:

Nominal amounts of derivative contracts entered into by the Company and outstanding as at 31st March,
2009 amount to Rs. 60,373.04 crore (Previous Year Rs. 30,129.40 crore). Category wise break up is given
below :

(Rs in crore)

Sr. No.

Particulars

As at 31st March, 2009

As at 31st March, 2008

Interest Rate Swaps (Net)

Currency Swaps

Options (Net)

Forward Contracts (Net)

(ii) For hedging commodity related risks :

Category wise break up is given below :

Sr. No.

Particulars

1
2
3
4
5

Net forward swaps
Futures
Spreads
Margin hedging
Net Options

23,215.50

4,435.15

2,492.71

30,229.68

10,201.64

643.48

975.20

18,309.08

(in Kbbl)

As at 31st March, 2009
Petroleum Crude Oil

As at 31st March, 2008
Petroleum Crude oil
Purchases product sales purchases

product sales

2,985
256
1,908
30,650
9,387

6,157
2,689
13,424
-
10,800

236
-
475
15,820
18,725

3,457
1,470
6,345
-
1,575

Reliance Industries Limited

143

SCHEDULE ‘O’ (Contd.)

In accordance with principles of prudence and other applicable guidelines as per Accounting Standards notified
by the Companies (Accounting Standards) Rules 2006 the Company has charged an amount of Rs. 35.32 crore
(Previous Year Rs. 43.78 crore) to the Profit and Loss Account in respect of derivative contracts other than
those contracts which are effective hedges.

c) Foreign currency exposures that are not hedged by derivative instruments as on 31st March, 2009 amount to

Rs. 51,432.57 crore (Previous Year Rs. 23,561.76 crore).

26. VALUE OF IMPORTS ON CIF BASIS IN RESPECT OF

Raw Materials and Traded Goods

Stores, Chemicals and Packing Materials

Capital goods

27. EXPENDITURE IN FOREIGN CURRENCY :

Capital Contracts (Includes Rs. 63.64 crore for SEZ unit)

Oil and Gas Activity

Technical and Engineering Fees
(Includes Rs. 231.91 crore for SEZ unit)

Production Royalty

Machinery Repairs

Building Repairs

Lease Rent

Payments to and Provisions for Employees

Sales Promotion Expenses

Brokerage and Commission

Ocean Freight (Includes Rs. 12.91 crore for SEZ unit)

Warehousing and Distribution Expenses (Includes Rs. 94.81 crore for SEZ unit)

Insurance

Rent

Rates & Taxes

Other Repairs (Includes Rs. 0.18 crore for SEZ unit)

Travelling Expenses (Includes Rs. 0.32 crore for SEZ unit)

(Rs. in crore)

2008-09

2007-08

1,02,072.93

90,619.95

1,407.80

6,592.69

963.87

3,404.98

2008-09

122.81

12,084.66

231.91

(Rs. in crore)

2007-08

68.00

8,000.22

7.36

3.32

28.68

0.11

28.44

23.62

39.28

176.17

727.06

130.54

5.18

2.87

0.64

58.14

12.18

12.72

44.54

0.06

27.17

19.93

16.01

147.53

515.22

1.35

2.21

1.70

3.78

35.49

7.27

144

Enhancing Lives. Energising India. The Reliance Way

SCHEDULE ‘O’ (Contd.)

Professional Fees (Includes Rs. 115.96 crore for SEZ unit)

257.50

155.01

Charity & Donations

Hire Charges

Bank Charges

Establishment Expenses (Includes Rs. 0.20 crore for SEZ unit)

Provision for claims against guarantee relating to subsidiary

Interest Charges (Includes Rs. 642.20 crore for SEZ unit)

Other Finance Charges (Includes Rs. 244.45 crore for SEZ unit)

Premium on Redemption of Bonds

28. VALUE OF RAW MATERIALS CONSUMED :

2.83

3.96

32.30

36.48

369.60

2,135.07

507.63

19.96

8.99

3.26

22.40

31.55

1,192.06

113.21

Imported

Indigenous

2008-09

Rs. in crore

% of Rs. in crore

Consumption

1,00,350.46

95.75

84,851.75

4,454.59

4.25

5,452.10

2007-08

% of
Consumption

93.96

6.04

1,04,805.05

100.00

90,303.85

100.00

29. VALUE OF STORES, CHEMICALS AND PACKING MATERIALS CONSUMED

Imported

Indigenous

30. EARNINGS IN FOREIGN EXCHANGE

2008-09

2007-08

Rs. in crore

% of Rs. in crore

Consumption

% of
Consumption

1,164.25

1,109.77

2,274.02

51.20

48.80

100.00

1,284.28

1,236.30

2,520.58

50.95

49.05

100.00

FOB value of exports [Excluding captive transfers to
Special Economic Zone of Rs. 299.78 crore (Previous Year Rs. NIL)]

Interest

Others

(Rs. in crore)

2008-09

2007-08

86,827.52

75,974.22

70.01

19.25

33.92

2.62

Reliance Industries Limited

145

SCHEDULE ‘O’ (Contd.)

31. REMITTANCE IN FOREIGN CURRENCY ON ACCOUNT OF DIVIDEND

The Company has paid dividend in respect of shares held by Non - residents on repatriation basis. This inter-alia
includes portfolio investment and direct investment, where the amount is also credited to Non- Resident External
Account (NRE A/c). The exact amount of dividend remitted in foreign currency cannot be ascertained. The total
amount remittable in this respect is given herein below:

Final Dividend (2007-08)

a) Number of Non Resident Shareholders

b) Number of Equity Shares held by them

(i) Amount of Dividend Paid (Gross) (Rs. in Crore)

(ii) Tax Deducted at Source

(iii) Year to which dividend relates

As per our Report of even date

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. Siddharth
Partner

A.R. Shah
Partner

Mumbai
October 7, 2009

V.M. Ambani
Company Secretary

2008-09

27,123

26,89,52,851

349.64

2007-08

Chairman & Managing Director

Executive Directors

For and on behalf of the Board
M.D. Ambani
N.R. Meswani
H.R. Meswani
H.S. Kohli
P.M.S. Prasad
R. Ravimohan
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi

}
Dr. R. A. Mashelkar} Directors

146

Enhancing Lives. Energising India. The Reliance Way

Balance Sheet Abstract and Company’s General Business Profile

I. Registration Details:

Registration No:

L 1 7 1 1 0 M H 1 9 7 3 P L C 0 1 9 7 8 6

Balance Sheet Date:

1 .

0 3 . 2

0 0 9

State Code:

1 1

II. Capital raised during the year (Amount in Rs. Crore):

Public Issue:

Bonus Issue:

Conversion of Bonds:

N I L

Rights Issue:

Private Placement:

Equity Share Warrants:

Equity Share Suspense:

N I L

1 2 0

1 4

N I L

6 9

2 5

6 5

1 9

5 6

9 0

4 9

6 8

3 2

0 0

III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Crore):

Total Liabilities:

Sources of Funds:

4 5 7 0 5 .

6 5

Total Assets:

2 4 5 7 0 5

Paid up Capital:

1 5 7 3 .

5 3

Reserves & Surplus:

1 2 4 7 3 0

Equity Share Suspense:

6 9 .

Secured Loans:

1 0 6 9 7 .

Deferred Tax Liabilities:

9 7 2 6 .

Application of Funds:
Net Fixed Assets:

6 9 3 8 6 .

Current Assets:

5 4 7 1 2 .

2 5

9 2

3 0

8 9

2 7

Unsecured Loan:

Current Liabilities:

6 3 2 0 6

3 5 7 0 1

Investments:

2 1 6 0 6

IV. Performance of the Company (Amount in Rs. Crore):

Turnover:

Net Turnover:

Profit Before Tax:

4 6 3 2 8 .

4 1 8 4 7 .

1 8 4 3 3 .

Earning per share in Rs.

9 6 .

0 7

4 7

2 3

7 6

V. Generic Names of principal services of the company:

Total Expenditure:

Profit After tax:

1 2 5 9 0 1

1 5 3 0 9

Dividend: Rs. per share

1 3

Item Code No. (ITC Code):
2 7 . 1 0

P E T R O L E U M

Product Description:
B U L K
Item Code No. (ITC Code):
3 9 0 2 1 0 . 0 0
Product Description:
P O L Y P R O P Y L E N E
Item Code No. (ITC Code):
3 9 0 1 2 0 . 0 0
Product Description:
P O L Y E T H Y L E N E

P R O D U C T S

( P P )

Financial Information of Subsidiary Companies

Sr. Name of Subsidiary Company
No.

Reporting Capital Reserves
Currency

Total
Total
Assets Liabilities ments

Invest- Turnover/

Total
Income

Reliance Industries Limited

147

Rs. in crore

Profit Provision Profit Proposed Country
Before
for
Taxation Taxation Taxation

After Dividend

Reliance Industrial Investments and
Holdings Limited

Reliance Ventures Limited

Reliance Strategic Investments Limited

Reliance Industries (Middle East) DMCC

INR

Reliance Jamnagar Infrastructure Limited *

Reliance Retail Limited

Reliance Netherland B. V.

Reliance Haryana SEZ Limited

Reliance Fresh Limited

1 0 Retail Concepts & Services (India) Limited

1 1 Reliance Retail Insurance Broking Limited

1 2 Reliance Dairy Foods Limited

1 3 Reliance Exploration and
Production DMCC

1 4 Reliance Retail Finance Limited

1 5 RESQ Limited

1 6 Reliance Global Management

Services Limited

1 7 Reliance Commercial Associates Limited

1 8 Reliance Digital Retail Limited

1 9 Reliance Financial Distribution and
Advisory Services Limited

2 0 RIL (Australia) Pty Limited

2 1 Reliance Hypermart Limited

2 2 Gapco Kenya Limited

2 3 Gapco Rwanda Limited

2 4 Gapco Tanzania Limited

2 5 Gapco Uganda Limited

2 6 Gapoil (Zanzibar) Limited

2 7 Gapoil Tanzania Limited

2 8 Gulf Africa Petroleum Corporation

2 9

Transenergy Kenya Limited

AED MN

INR

INR
EURO MN

INR

INR
AUS $ MN

INR

INR
KSH MN

INR
FRW MN

INR
TZS MN

INR
USH MN

INR
TZS MN

INR
USD MN

INR
KSH MN

0.69
0.10

0.05

2.00

0.05

2.02

0.05

0.25

0.05

17.52
5.00

0.05

91.38
1,459.54

3.97
448.50

(38.37)

(4.90)

(7.63)

54.46
11.18

(0.17)

0.25

(0.01)

(15.49)

(18.59)

(0.25)
(0.07)

152.49

2,441.93

7,448.63

2,843.58

32.06

0.50

0.06

0.44

2.79

3.53

56.30

42.45

2,363.19

2,392.62

526.72

4,363.18

4,385.74

1,549.00

113.54

19.96

19.89

15.00

942.62

710.74

942.62

429.27

1,808.70

710.74

323.67

1,363.77

0.66

1.97

6.88

5.19

102.55

1,776.02

2,394.13

0.01

908.11

503.66

0.15

0.00

0.09

0.51

1.97

6.88

5.19

503.57

4,051.00

(31.98)

5,339.51

118.28

622.31

(24.26)

(4.02)

(20.24)

2.19
0.32

6.44
0.94

(0.15)

2,914.31

(276.77)

1,650.01

52.97

2.01

82.23

52.97

2.01

82.23

0.75
0.11

0.00

0.49

0.00

101.97

107.99

106.00

3.11

55.15

3.11

55.15

0.00

0.01

0.69
0.10

1.09

(8.91)
(1.30)

(0.18)

-
-

0.03

(8.91)
(1.30)

(0.21)

1,778.06

(354.04)

(104.74)

(249.30)

85.23

(14.46)

(3.14)

(11.32)

4.39

178.05

102.14
20.97

4.04

4.19

269.91

(0.36)

(6.17)

38.82
7.97

1.18

(0.14)

0.52

1.55

(1.67)

-
-

(0.76)

0.01

0.37

(1.91)

(4.50)

38.82
7.97

1.94

(0.15)

0.15

INR
USD MN

895.24
183.79

2,405.40
493.82

470.30
96.55

0.04

0.00

170.89

0.06

316.28

(17.73)

24.93

(20.08)

(5.06)

(5.83)

(12.67)

(14.25)

17.88

15.38
4.39

-
-

0.07
0.02

(1.75)
(0.50)

-
-

(1.75)
(0.50)

- Australia
-

(54.32)

1,452.00

49.40

372.32

(73.90)

(22.06)

(51.84)

India

-
-

89.20
1,424.64

(6.37)
(719.46)

544.81
8,701.60

14.27
1612.40

544.81
8,701.60

14.27
1612.40

58.90
15,500.00

(52.56)
(13,832.00)

427.38

427.38
1,12,468.00 1,12,468.00

22.23
8,750.10

44.09
17,359.58

94.74
37,297.74

2,960.00
4,7276.77

(50.33)
(803.81)

(10.23)
(163.34)

124.85
14106.78

(0.52)
(58.93)

-
-

(40.10)
(640.47)

(0.52)
(58.93)

547.63

(44.76)
144113.00 (11,779.00)

(15.00)
(3,948.00)

(29.76)
(7,831.00)

349.26
1,37,504.63

(1.19)
(467.67)

(1.47)
(579.99)

0.28
112.32

1.90
500.00

54.76
14,410.00

107.16
22.00

7.51
120.00

(1.19)
(313.43)

30.01
7,898.00

(9.06)
(1.86)

(6.46)
(103.11)

8.05
2,118.10

8.05
2118.10

-
-

367.32
96,663.00

0.63
165.00

687.66
1,80,963.00

320.80
65.86

1.33
21.20

320.80
65.86

1.33
21.20

266.39
54.69

-
-

3.13
49.93

0.01
3.24

(0.20)
(52.00)

(0.44)
(0.09)

3.15
50.23

-
-

(0.37)
(98.00)

-
-

0.54
8.56

0.01
3.24

0.17
46.00

(0.44)
(0.09)

2.61
41.67

India

- Dubai

India

- Netherland
-

India

- U A E
-

India

- Kenya
-

- Rwanda
-

- Tanzania
-

- Uganda
-

- Zanzibar
-

- Tanzania
-

- Mauritius
-

- Kenya
-

As on 31.12.2008: 1 Euro = Rs. 68.54, 1 US $ = Rs. 48.71, 1 AED = Rs. 13.2625, 1 RM = Rs. 14.1075, 1 KSH = 0.6261, 1 FRW = 0.0885, 1 TZS = 0.0380, 1 USH = 0.0254;
Exchange Rate as on 31.3.2009, 1 Euro = Rs. 67.44, 1 US $ = Rs. 50.72, 1 Aus $ = Rs. 35.03, 1 KSH = Rs. 0.6306, 1 SGD = Rs 33. 35, 1 GBP = 72.49.

148

Enhancing Lives. Energising India. The Reliance Way

Financial Information of Subsidiary Companies (Contd.)

Rs. in crore

Name of Subsidiary Company

Sr.
No.

Reporting Capital Reserves
Currency

Total
Assets

Total

Invest- Turnover/

Liabilities ments

Total
Income

Profit
Before
for
Taxation Taxation Taxation

After Dividend

Provision Profit Proposed Country

3 0 Recron (Malaysia) Sdn Bhd

3 1 Reliance Retail Travel &
Forex Services Limited

3 2 Reliance Brands Limited

3 3 Reliance Footprint Limited

3 4 Reliance Trends Limited

3 5 Reliance Wellness Limited

3 6 Reliance Lifestyle Holdings Limited

3 7 Reliance Universal Ventures Limited

3 8 Delight Proteins Limited

3 9 Reliance Autozone Limited

4 0 Reliance F&B Services Limited

4 1 Reliance Gems and Jewels Limited

4 2 Reliance Integrated Agri
Solutions Limited

4 3

Strategic Manpower Solutions Limited

4 4 Reliance Agri Products

Distribution Limited

4 5 Reliance Digital Media Limited

4 6 Reliance Food Processing
Solutions Limited

4 7 Reliance Home Store Limited

4 8 Reliance Leisures Limited

4 9 Reliance Loyalty & Analytics Limited

5 0 Reliance Retail Securities and
Broking Company Limited

5 1 Reliance Supply Chain Solutions Limited

5 2 Reliance Trade Services Centre Limited

5 3 Reliance Vantage Retail Limited

5 4 Reliance International Exploration and

Production INC

5 5 Wave Land Developers Limited

5 6 Reliance-GrandOptical Private Limited

5 7 Reliance Universal Commercial Limited

5 8 Reliance Petroinvestments Limited

5 9 Reliance Global Commercial Limited

6 0 Reliance Cyprus Limited

6 1 Reliance People Serve Limited

6 2 Reliance Infrastructure Management

Services Limited

INR
RM MN

INR

INR
USD MN

INR
KSH MN

INR

INR
USD MN

INR

3.53
2.50

1.00

0.05

1.01

0.05

0.56

9.25
1.90

147.06
2,332.11

0.05

8.88

0.05

0.00
0.00

0.05

1,284.73
910.67

3,159.83
2,239.82

3159.83
2,239.82

(1.25)

0.17

-
-

4,136.35
2,932.02

0.14

64.47
45.70

(0.82)

-
-

0.16

64.47
45.70

(0.98)

(10.47)

(3.10)

(6.76)

(15.49)

(5.69)

(3.64)

(0.49)

(1.89)

(5.73)

(0.94)

(10.24)

(7.83)

(1.01)

(37.34)

(4.54)

(4.53)

(6.44)

(0.95)

(12.90)

(9.30)

(21.23)

(5.60)
(1.15)

(1.53)
(24.31)

(0.01)

0.01

175.19

0.01

(0.10)
(0.02)

(0.92)

(0.01)

20.85

60.94

168.47

143.96

107.59

32.24

13.76

20.10

1.46

16.12

26.06

24.04

21.65

20.85

60.94

168.47

143.96

0.05

0.01

107.59

60.55

32.24

13.76

20.10

1.46

16.12

26.06

24.04

21.65

3.98

270.48

68.19

47.58

0.57

0.07

68.19

47.58

0.57

0.07

294.17

0.24

105.69

3.80
0.78

1.15

0.00

-
-

145.66
2,309.86

75.08
1,190.54

0.05

286.97

184.60

286.97

0.05
0.01

3.59

0.21

0.05

286.97

4.46

184.60

183.17

286.97

4.47

0.05
0.01

3.59

0.21

-
-

34.50

(14.86)

172.39

246.26

1.74

3.92

19.63

10.30

0.11

2.24

2.77

(3.71)

(9.47)

(15.77)

(4.89)

(3.55)

(0.61)

(1.83)

(5.55)

(0.62)

138.03

(10.90)

46.51

(11.12)

(4.45)

(0.80)

(2.80)

(4.47)

(1.35)

0.06

(0.15)

0.03

0.10

0.12

(3.02)

(3.33)

(10.41)

(2.91)

(6.67)

(11.30)

(3.54)

(3.61)

(0.46)

(1.86)

(5.65)

(0.74)

(7.88)

(7.79)

2.10

(0.97)

(0.28)

(0.69)

168.83

(54.29)

(16.63)

(37.66)

113.26

49.79

1.20

0.59

(6.28)

(6.43)

(6.40)

(0.94)

(1.83)

(1.96)

0.04

0.01

(4.45)

(4.47)

(6.44)

(0.95)

141.78

(17.74)

(4.96)

(12.78)

0.01

-
-

0.00
0.05

0.01

10.46

0.01

-
-

6.05

0.18

(9.24)

(11.50)

0.05

(1.98)

(5.60)
(1.15)

(0.07)
(1.18)

(0.00)

7.65

(0.00)

(0.10)
(0.02)

(0.78)

(0.01)

-
-

0.00

0.25

-
-

(0.20)

0.00

(9.29)

(9.52)

(5.60)
(1.15)

(0.07)
(1.18)

(0.00)

7.40

(0.00)

(0.10)
(0.02)

(0.58)

(0.01)

Malaysia

India

- USA
-

- Kenya
-

India

- Cyprus
-

India

Financial Information of Subsidiary Companies (Contd.)

Reliance Industries Limited

149

Rs. in crore

Name of Subsidiary Company

Sr.
No.

Reporting Capital Reserves
Currency

Total
Assets

Total

Invest- Turnover/

Liabilities ments

Total
Income

Profit
Before
for
Taxation Taxation Taxation

After Dividend

Provision Profit Proposed Country

6 3 Reliance Global Business B.V.

6 4 Reliance Gas Corporation Limited

6 5 Reliance Global Energy Services

Singapore Pte Limited

6 6 Reliance One Enterprises Limited

6 7 Reliance Global Energy Services Limited

6 8 Reliance Personal Electronics Limited

6 9 Reliance Polymers (India) Limited

7 0 Reliance Polyolefins Limited

7 1 Reliance Aromatics and Petrochemicals

Private Limited

7 2 Reliance Energy and Project
Development Private Limited

7 3 Reliance Chemicals Private Limited

7 4 Reliance Universal Enterprises Limited

7 5 Reliance Review Cinema Private Limited

7 6 Reliance Replay Gaming Private Limited

7 7 Reliance Nutritional Food Processors

Private Limited

7 8 Reliance Commercial Land &
Infrastructure Limited

7 9 Reliance Corporate IT Park Limited

8 0 Reliance Eminent Trading &
Commercial Private Limited

8 1 Reliance Progressive Traders

Private Limited

8 2 Reliance Prolific Traders Private Limited

8 3 Reliance Universal Traders Private Limited

8 4 Reliance Prolific Commercial Private Limited

8 5 Reliance Comtrade Private Limited

8 6 Reliance Ambit Trade Private Limited

8 7 Reliance Petro Marketing Private Limited

8 8

LPG Infrastructure (India) Private Limited

8 9 Reliance Infosolutions Private Limited

INR
EURO MN

INR

INR
SGD MN

INR

INR
GBP MN

INR

0.21
0.03

0.01

0.05

(0.00)

0.00

(0.00)

0.13
0.02

0.05

5.00
1.50

0.05

3.62
0.50

0.05

(6.68)
(0.99)

(0.00)

0.33
0.10

(0.04)

0.72
0.10

(0.58)

3.99

284.19
42.14

6.07

12.11
3.63

4.02

11.74
1.62

0.86

4.05

6.07

12.11
3.63

4.02

11.74
1.62

0.86

4.05

-
-

4.05

13.93

2,909.55

3,414.93

3,412.31

1.87

1,386.35

2,054.88

0.00
0.00

8.20
2.46

3.72

9.79
1.35

1.00

5.76

0.00

(6.68)
(0.99)

(0.00)

0.37
0.11

(0.04)

(0.51)
(0.07)

(0.57)

(0.00)

0.15

(0.01)

1.63

1,258.83

2,057.83

2,055.99

2.87

(0.85)

-
-

0.03
0.01

(6.68)
(0.99)

(0.00)

0.34
0.10

- Netherlands
-

India

- Singapore
-

(0.04)

India

0.72
(0.10)

(0.58)

(0.00)

0.10

- U K
-

India

(0.01) 0.00 India

(0.85) 0.00 India

8.44

6.84

0.01

2,769.37

3,464.73

3,459.42

3,409.86

3,416.70

3,416.55

(0.05)

(0.02)

(0.01)

0.35

0.14

1.27

0.35

0.14

1.27

43.01

(0.33)

1,246.53

1,244.72

1,191.33

(127.23)

2,065.69

14.67

2,074.51

2,091.28

13.96

1,583.04

1,605.94

12.83

10.12

1.66

1.48

1.93

0.05

0.01

1,263.60

1,279.90

32.90

331.32

241.51

465.55

106.15

(5.48)

1.12

43.34

333.65

243.07

468.61

142.85

92.66

43.34

333.65

243.07

468.61

142.85

92.66

269.91

0.09

0.01

0.30

0.13

92.78

(0.02)

(0.07)

(0.05)

(0.02)

(0.01)

(0.33)

(5.83)

(3.93)

(0.02)

(0.07)

(0.05)

(0.02)

(0.01)

(0.33)

0.19

(1.32)

(6.02)

(2.61)

0.01

(14.38)

(4.88)

(9.50)

0.01

0.00

0.01

277.47

218.68

242.05

(1.25)

(0.06)

(0.01)

(0.32)

0.53

0.46

(0.44)

(0.01)

(0.00)

1.13

0.01

(0.39)

(0.81)

(0.05)

(0.01)

(1.45)

0.52

0.85

India

* Income includes one time premium of Rs. 730.64 crore.

150

Enhancing Lives. Energising India. The Reliance Way

Consolidated Financial Statements & Notes

Auditors’ Report on Consolidated Financial Statements

Reliance Industries Limited

151

Consolidated Financial Statements, AS 23, Accounting for
Investments in Associates in Consolidated Financial
Statements and AS 27, Financial Reporting of Interests in
Joint Ventures, as notified by the Companies (Accounting
Standard) Rules, 2006.

4. Based on our audit as aforesaid, and on consideration of
reports of other auditors on the separate financial statements
and on the other financial information of the components
and to the best of our information and according to the
explanations given to us, we are of the opinion that the
attached consolidated financial statements give a true and
fair view in conformity with the accounting principles
generally accepted in India:

(i)

(ii)

in the case of the Consolidated Balance Sheet, of the
State of Affairs of the Group as at 31st March, 2009;

in the case of the Consolidated Profit and Loss Account,
of the Profit of the Group for the year ended on that
date; and

(iii) in the case of the Consolidated Cash Flow Statement,
of the Cash Flows of the Group for the year ended on
that date.

For Chaturvedi & Shah For Deloitte Haskins & Sells For Rajendra & Co.
Chartered Accountants Chartered Accountants

Chartered Accountants

D. Chaturvedi
Partner
Membership No.: 5611 Membership No.: 31467

A. Siddharth
Partner

A. R. Shah
Partner
Membership No.: 47166

Mumbai

October 7, 2009

To The Board of Directors
Reliance Industries Limited

We have audited the attached Consolidated Balance Sheet of
Reliance Industries Limited (the Company) and its subsidiaries
(collectively referred to as "the Group") as at 31st March, 2009,
and the Consolidated Profit and Loss Account and the
Consolidated Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the
responsibility of the Company's management and have been
prepared by the Management on the basis of separate financial
statements and other financial information regarding components.
Our responsibility is to express an opinion on these financial
statements based on our audit.

We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we
plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and
significant estimates made by Management, as well as evaluating
the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.

Financial statements / consolidated financial statements of
certain subsidiaries and joint ventures, which reflect total
assets of Rs. 42,026.65 crore as at 31st March, 2009, total
revenue of Rs. 8,183.08 crore and cash flows amounting to
Rs. 251.62 crore for the year then ended, have been audited
by one or jointly by two of us or one of us with other and
financial statements of certain associates in which the share
of profit of the Group is Rs. 10.21 crore have been audited
by one of us.

2. We did not audit the financial statements of certain
subsidiaries, whose financial statements / consolidated
financial statements reflect total assets of Rs. 4,544.08 crore
as at 31st March, 2009 or 31st December, 2008 as the case
may be, total revenue of Rs. 5,718.28 crore and cash flows
amounting to Rs. 122.08 crore for the year then ended and
the financial statement of certain associates in which the
share of loss of the Group is Rs. 137.35 crore. These
financial statements and other financial information have
been audited by other auditors whose reports have been
furnished to us, and our opinion is based solely on the
report of other auditors.

3. We report that the consolidated financial statements have
been prepared by the Company's management in accordance
with the requirements of Accounting Standard (AS) 21,

152

Enhancing Lives. Energising India. The Reliance Way

Reliance Industries Limited
Consolidated Balance Sheet as at 31st March, 2009

Schedule

As at
31st March, 2009

(Rs. in crore)

As at
31st March, 2008

SOURCES OF FUNDS

Shareholders’ Funds
Share Capital
Equity Share Suspense
[Refer Note 2, Schedule ‘N’)
Equity Share Warrants
Reserves and Surplus

Minority Interest
Loan Funds
Secured Loans
Unsecured Loans

Deferred Tax Liability

TOTAL
APPLICATION OF FUNDS

Fixed Assets
Gross Block
Less: Depreciation
Net Block
Capital Work-in-Progress

Investments
In Associates
In Others

Current Assets, Loans and Advances
Current Assets
Inventories
Sundry Debtors
Cash and Bank Balances
Other Current Assets

Loans and Advances

Less: Current Liabilities and Provisions
Current Liabilities
Provisions

Net Current Assets
Miscellaneous Expenditure
[to the extent not written off or adjusted]

TOTAL

Significant Accounting Policies
Notes on Accounts
As per our Report of even date

‘A’

‘B’

‘C’
‘D’

‘E’

‘F’

‘G’

‘H’

‘M’
‘N’

1,374.68
69.25

-
1,19,812.61

10,747.73
65,508.87

1,57,182.43
50,138.23
1,07,044.20
73,845.97

2,596.43
3,839.11

20,109.61
4,844.97
22,742.10
47.59
47,744.27
11,001.80
58,746.07

35,756.98
3,115.03
38,872.01

1,21,256.54
138.90

76,256.60
9,551.33
2,07,203.37

1,453.39
-

1,682.40
82,374.69

19,576.52
31,119.57

1,09,180.19
45,119.08
64,061.11
49,884.10

85,510.48
4,088.58

50,696.09
7,798.34
1,48,093.49

1,80,890.17

1,13,945.21

246.32
9,276.53

6,435.54

9,522.85

19,126.14
6,068.30
4,474.16
72.62
29,741.22
21,747.65
51,488.87

23,417.51
3,449.18
26,866.69

19,874.06
3.60

24,622.18
3.25

2,07,203.37

1,48,093.49

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. Siddharth
Partner

A.R. Shah
Partner

Mumbai
October 7, 2009

V.M. Ambani
Company Secretary

Chairman & Managing Director

Executive Directors

For and on behalf of the Board
M.D. Ambani
N.R. Meswani
H.R. Meswani
H.S. Kohli
P.M.S. Prasad
R. Ravimohan
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi

}
Dr. R. A. Mashelkar} Directors

Reliance Industries Limited
Consolidated Profit and Loss Account for the year ended 31st March, 2009

Reliance Industries Limited

153

Schedule

2008-09

(Rs. in crore)

2007-08

155,788.51
4,564.50

143,004.98
5,858.32

INCOME

Turnover
Less: Excise Duty / Service Tax Recovered
Net Turnover
Other Income (including share in associates)
Variation in Stocks

‘I’
‘J’

EXPENDITURE
Purchases
Manufacturing and Other Expenses
Interest and Finance Charges
Depreciation
Less: Transferred from Revaluation Reserve
[Refer Note 7, Schedule ‘N’]
Less: Transferred from Capital Reserve
Adjustment Pursuant to the Scheme of Amalgamation including
write off of Investments in Reliance Petroleum Limited
Less: Transferred from General Reserve
[Refer Note 2, Schedule ‘N’]

‘K’
‘L’

Profit before Tax

Provision for Current Tax
Provision for Fringe Benefit Tax
Provision for Deferred Tax

Profit after Tax (before adjustment for Minority Interest)

Add: Share of (Profit)/ Loss transferred to Minority Interest

Profit after Tax (after adjustment for Minority Interest)
Add: Balance brought forward from Previous year
Dividend adjustment on consolidation
Excess Provision for Tax for earlier years
Excess Provision for Tax for earlier years - Minority Interest

Amount Available for Appropriations
APPROPRIATIONS

7,712.58
1,987.14

74.46

7,728.92
7,728.92

Statutory Reserve
General Reserve
Debenture Redemption Reserve
Interim Dividend on Equity Shares
Proposed Dividend on Equity Shares
Tax on Dividend on Equity Shares
Proposed Dividend on Preference Shares (Minority-
Interest Rs. 19,880.00, Previous Year Rs. NIL)
Tax on Dividend Preference Shares (Minority -
Interest Rs. 3,379.00, Previous Year Rs. NIL)

1.04
11,728.92
340.05
1,897.05
-
322.40

Balance Carried to Balance Sheet
Basic and Diluted Earnings per Share of face value of
Rs. 10 each (in Rupees)
Basic and Diluted Earnings per Share of face value of
Rs. 10 each (in Rupees) (Before exceptional items)
[Refer Note 12, Schedule ‘N’]
Significant Accounting Policies
Notes on Accounts

‘M’
‘N’

As per our Report of even date

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. Siddharth
Partner

A.R. Shah
Partner

Mumbai
October 7, 2009

V.M. Ambani
Company Secretary

151,224.01
1,914.24
2,269.54
155,407.79

7,201.77
122,869.63
1,816.27

5,650.98

-
137,538.65
17,869.14
1,208.18
65.23
1,645.42
14,950.31
18.41
14,968.72
4,710.11
-
3.41
(0.83)
19,681.41

137,146.66
5,956.95
1,533.93
144,637.54

9,850.71
105,685.28
1,086.52

5,004.20

-
121,626.71
23,010.83
2,572.08
49.58
865.93
19,523.24
(1.86)
19,521.38
3,044.17
12.32
46.45
-
22,624.32

6,784.91
1,780.71

-
-

5.74
16,000.00
-
-
1,631.24
277.23

14,289.46
5,391.95
108.23

110.60

17,914.21
4,710.11
134.61

105.74

Chairman & Managing Director

Executive Directors

For and on behalf of the Board
M.D. Ambani
N.R. Meswani
H.R. Meswani
H.S. Kohli
P.M.S. Prasad
R. Ravimohan
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi

}
Dr. R. A. Mashelkar} Directors

154

Enhancing Lives. Energising India. The Reliance Way

Reliance Industries Limited
Consolidated Cash Flow Statement for the year 2008-09

A: CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit before tax as per Profit and Loss Account

17,869.14

23,010.83

Adjusted for:

2008-09

(Rs. in crore)

2007-08

Miscellaneous Expenditure written off
Share in Income of Associates
Net Prior Year Adjustments
Diminution in value / write off of Investments
Investment Grant (non cash income)
(Profit) / Loss on Sale / Discarding of Assets (net)
Depreciation
Transferred from Revaluation Reserve
Transferred from Capital Reserve
Effect of Exchange Rate Change
Effect of De-subsidiarisation
Profit on Sale of Investments (net)
Exceptional Item
Dividend Income
Interest / Other Income
Interest and Finance Charges

Operating Profit before Working Capital Changes

Adjusted for:

Trade and Other Receivables

Inventories

Trade Payables

Cash Generated from Operations

Net Prior Year Adjustments

Taxes Paid

Net Prior Year Adjustments on Account of Subsidiaries

Net Cash from Operating Activities

B: CASH FLOW FROM INVESTING ACTIVITIES:

Purchase of Fixed Assets

Sale of Fixed Assets

Purchase of Investments

Sale of Investments

Movement in Loans and Advances

Interest Income

Dividend Income

Net Cash Used in Investing Activities

1.02
127.14
2.64
3.44
-
31.40
7,712.58
(1,987.14)
(74.46)
474.49
(43.09)
(425.08)
-
(44.41)
(1,456.07)
1,816.27

2,876.25

(1,503.19)

(7,145.57)

1.31
(14.96)
2.02
13.92
(0.47)
(6.13)
6,784.91
(1,780.71)
-
(357.04)
-
(250.39)
(4,733.50)
(33.86)
(446.18)
1,086.52

6,138.73

24,007.87

265.44

23,276.27

(3,809.04)

(4,026.83)

3,269.57

(5,772.51)

18,235.36

(2.64)

(1,926.05)

(19.22)

16,287.45

(27,856.77)

124.75

(1,09,280.00)

1,12,646.26

(101.52)

1,319.39

44.53

(23,103.36)

(4,566.30)

18,709.97

(2.02)

(2,474.85)

16,233.10

(26,745.36)

105.05

(98,475.15)

102,810.20

(8,622.82)

462.64

39.89

(30,425.55)

Reliance Industries Limited

155

Consolidated Cash Flow Statement for the year 2008-09 (Contd.)

C: CASH FLOW FROM FINANCING ACTIVITIES:

Proceeds from Issue of Share Capital (Including Warrants)

Proceeds from Long Term Borrowings

Repayment of Long Term Borrowings

Short Term Loans

Dividends Paid (including dividend distribution tax)

Interest Paid

Miscellaneous Expenditure / Issue expenses

Net Cash from Financing Activities

Net Increase in Cash and Cash Equivalents

Opening Balance of Cash and Cash Equivalents

Add: Upon addition of New Subsidiaries

2008-09

15,164.79

21,963.21

(3,566.38)

(1,882.37)

(1,908.47)

(4,732.92)

(1.29)

25,036.57

18,220.66

(Rs. in crore)

2007-08

1,682.44

19,382.05

(2,228.94)

498.71

(2,616.93)

(0.52)

16,716.81

2,524.36

4,474.16

47.28

1,937.04

12.76

4,521.44

1,949.80

Closing Balance of Cash and Cash Equivalents

22,742.10

4,474.16

As per our Report of even date

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. Siddharth
Partner

A.R. Shah
Partner

Mumbai
October 7, 2009

V.M. Ambani
Company Secretary

Chairman & Managing Director

Executive Directors

For and on behalf of the Board
M.D. Ambani
N.R. Meswani
H.R. Meswani
H.S. Kohli
P.M.S. Prasad
R. Ravimohan
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi

}
Dr. R. A. Mashelkar} Directors

156

Enhancing Lives. Energising India. The Reliance Way

Schedules forming part of the Consolidated Balance Sheet

SCHEDULE ‘A’

SHARE CAPITAL

Authorised:

250,00,00,000 Equity Shares of Rs. 10 each

(250,00,00,000)

50,00,00,000 Preference Shares of Rs. 10 each

(50,00,00,000)

Issued, Subscribed and Paid up:

As at
31st March, 2009

(Rs. in crore)

As at
31st March, 2008

2,500.00

500.00

3,000.00

2,500.00

500.00

3,000.00

137,49,46,369 Equity Shares of Rs. 10 each fully paid up

1,374.94

(145,36,48,601)

Less: Calls in arrears - by others

0.26

1,453.65

0.26

TOTAL

1. Of the above Equity Shares:

1,374.68

1,453.39

(a)

(b)

(c)

(d)

48,17,70,552
(48,17,70,552)

35,28,21,184
(52,31,98,799)

33,04,27,345
(33,04,27,345)

Shares out of the issued and subscribed share capital before the buyback of shares were allotted
as Bonus Shares by capitalisation of Securities Premium and Reserves.

Shares out of the issued and subscribed share capital before the buyback of shares were allotted
pursuant to the various Schemes of Amalgamation without payments being received in cash.

Shares out of the issued and subscribed share capital before the buyback of shares were allotted
on conversion / surrender of Debentures and Bonds, conversion of Term Loans, exercise of warrants,
against Global Depository Shares (GDS) and re-issue of forfeited equity shares.

3,16,66,311
(6,01,40,560)

Shares were issued pursuant to a scheme of amalgamation of erstwhile Indian Petrochemicals
Corporation Limited with the Company without payments being received in cash.

In the year 2004-05, the Company bought back and extinguished 28,69,495 equity shares.

2.
3. The Company has reserved issuance of 6,95,25,770 (Previous year 6,96,75,402) Equity Shares of Rs. 10 each for offering to
eligible employees of the Company and its subsidiaries under Employees Stock Option Scheme (ESOS). During the year, the
Company has granted 50,100 Options to the eligible employees at a price of Rs. 1,289/- [Previous year 27,000 options at a price
of Rs. 1,684/- and 10,08,000 options at a price of Rs. 2,292/-] plus all applicable taxes, as may be levied in this regard on the
Company. The options would vest over a maximum period of 7 years from the date of grant based on specified criteria.
During the year, the Company has issued and allotted 1,49,632 (Previous Year NIL) equity shares to the eligible employees of
the Company under ESOS.
In terms of the approval of the shareholders of the Company and as per the applicable statutory provisions including Securities
and Exchange Board of India (Disclosure and Investor Protection) Guidelines 2000, the Company, on April 12, 2007, had issued
and allotted 12,00,00,000 warrants on preferential basis to entities in the Promoter Group entitling them to acquire equivalent
number of fully paid up equity shares of Rs. 10/- each of the Company, at a price of Rs. 1,402/- per equity share. As per the
entitlement, the warrant holders applied for and were allotted 12,00,00,000 equity shares of the Company, during the year.
Issued, Subscribed and paid up capital excludes 19,88,51,864 equity shares directly held by subsidiaries/trust, before their
becoming subsidiaries of the Company which have been eliminated.

Reliance Industries Limited

157

Schedules forming part of the Consolidated Balance Sheet

SCHEDULE ‘B’

RESERVES AND SURPLUS

Revaluation Reserve
As per last Balance Sheet
Add: On Revaluation

Less: Transferred to Profit and Loss Account
[Refer Note 7, Schedule ‘N’]
Less: Transferred to Minority Interest

Capital Reserve
As per last Balance Sheet
Add : On Consolidation of Subsidiaries (Net)

Less : On Amalgamation
Less : Transferred to Profit and Loss Account

Exchange Fluctuation Reserve
Capital Redemption Reserve
As per last Balance Sheet
Securities Premium Account
As per last Balance Sheet
Add: Premium on issue of shares
Add: On Amalgamation
[Refer Note 2, Schedule ‘N’]

Less: Premium on redemption / buy back of debentures / Bonds
Less: Elimination on Consolidation

Less: Calls in arrears - by others

Debentures Redemption Reserve
As per last Balance Sheet
Add: Transferred from Profit and Loss Account

Statutory Reserve
As per last Balance Sheet
Add: Opening Balance of New Subsidiaries
Add: Transferred from Profit and Loss Account
Less: Transferred to Minority Interest

General Reserve*
As per last Balance Sheet
Add: Transferred from Profit and Loss Account

Less: Transferred to Profit and Loss Account
[Refer Note 2, Schedule ‘N’]
Shares in Reserves of Associates
Revaluation Reserve
As per Last Balance Sheet
Profit and Loss Account

TOTAL

As at
31st March, 2009

As at
31st March, 2008

(Rs. in crore)

1,198.63
13,055.45
14,254.08
1,987.14

37.16

3,604.78
481.50
4,086.28
3,131.46
74.46

21,313.80
16,727.04
13,429.09

51,469.93
13.17
6,090.54
45,366.22
1.80

587.02
340.05

87.25
-
1.04
0.26

50,003.95
11,728.92
61,732.87
7,728.92

1,198.63

3,604.78
(26.72)

887.94

12,229.78

880.36
29.40

887.94

2,979.34
-
2,979.34
1,780.71

3,877.72
(272.94)
3,604.78
-
-

21,331.99
-
-

21,331.99
18.19
-
21,313.80
1.78

45,364.42

21,312.02

927.07

587.02

587.02
-

47.66
33.85
5.74
-

88.03

87.25

34,003.95
16,000.00
50,003.95
-

54,003.95

50,003.95

9.71
5,391.95
1,19,812.61

9.71
4,710.11
82,374.69

* Cumulative amount withdrawn on account of Depreciation on Revaluation is Rs. 2,563.43 crore

158

Enhancing Lives. Energising India. The Reliance Way

Schedules forming part of the Consolidated Balance Sheet

SCHEDULE ‘C’

SECURED LOANS

A. DEBENTURES

Non Convertible Debentures

B. TERM LOANS
From Banks

Foreign Currency Loans
Rupee Loans

C. WORKING CAPITAL LOANS

From Banks

Foreign Currency Loans

Rupee Loans

TOTAL

As at
31st March, 2009

As at
31st March, 2008

(Rs. in crore)

8,642.12

4,118.12

-
2,033.50

10,843.22
2,070.20

2,033.50

12,913.42

72.11

1,075.22

1,469.76

72.11

10,747.73

2,544.98

19,576.52