Reliance Industries Limited Annual Report 2010

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FY2010 Annual Report · Reliance Industries Limited

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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 Kohli1
P.M.S. Prasad2
R Ravimohan3
Pawan Kumar Kapil4

Non Executive Directors
Ramniklal H. Ambani
Mansingh L. Bhakta
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Mahesh P. Modi
S. Venkitaramanan5
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar

Company Secretary

Vinod M. Ambani

Solicitors & Advocates Kanga & Co.

Auditors

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

1upto March 31, 2010
2w.e.f. August 21, 2009
3from September 1, 2009 to December 28, 2009
4w.e.f. May 16, 2010
5upto July 24, 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

Major Plant Locations

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

Gadimoga
Tallarevu Mandal
East Godavari District
Gadimoga – 533 463
Andhra Pradesh, India

Registered Office

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

Reliance Industries Limited

Board Committees
Audit Committee
Yogendra P. Trivedi
(Chairman)
Mahesh P. Modi
Dr. Raghunath A.
Mashelkar

Corporate Governance
and Stakeholders’
Interface Committee
Yogendra P. Trivedi
(Chairman)
Mahesh P. Modi
Dr. Dharam Vir Kapur

Employees Stock
Compensation Committee
Yogendra P. Trivedi
(Chairman)
Mukesh D. Ambani
Mahesh P. Modi
Prof. Dipak C. Jain

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

Finance Committee
Mukesh D. Ambani
(Chairman)
Nikhil R. Meswani
Hital R. Meswani
Health, Safety &
Environment Committee
Hital R. Meswani
Dr. Dharam Vir Kapur
Pawan Kumar Kapil
Remuneration Committee
Mansingh L. Bhakta
(Chairman)
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Shareholders’/Investors’
Grievance Committee
Mansingh L. Bhakta
(Chairman)
Yogendra P. Trivedi
Nikhil R. Meswani
Hital R. Meswani

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

Jamnagar SEZ
Village Meghpar / Padana,
Taluka Lalpur
Jamnagar 361 280
Gujarat, India
Nagothane
P. O. Petrochemicals
Township, Nagothane
Raigad - 402 125,
Maharashtra, 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

36th Annual General Meeting on Friday, June 18, 2010 at 11.00 a.m.
at Birla Matushri Sabhagar, 19, Marine Lines, Mumbai 400 020.

Think Growth. Think Transformation. Think Reliance.

10 Years Trend

Turnover (Rs. crore)

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

Net Worth (Rs. crore)

Market Capitalisation (Rs. crore)

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

Book Value Per Share (Rs.)*

* Normalised on account of issue of Bonus Share in the ratio of 1:1 in 2009-10

Reliance Industries Limited

Financial Highlights

2009-10

08-09

07-08

06-07

05-06

04-05

03-04

02-03

01-02

00-01

Rs. in crore

$ Mn

Turnover

Total Income

44,632 200,400 146,328 139,269 118,354

89,124

73,164 56,247

50,096 45,404

23,024

45,180 202,860 148,388 144,898 118,832

89,807

74,614 57,385

51,097 46,186

23,407

Earnings Before Depreciation, 7,359
Interest and Tax (EBDIT)

33,041

25,374

28,935 20,525

14,982

14,261 10,983

9,366

8,658

5,562

Depreciation

2,338

10,497

5,195

4,847

4,815

3,401

3,724

3,247

2,837

2,816

1,565

Exceptional Items

(370)

4,733

412

Profit After Tax

3,616

16,236

15,309

19,458 11,943

9,069

7,572

5,160

4,104

3,243

2,646

Equity Dividend %*

Dividend Payout

Equity Share Capital

Equity Share Suspense Account

Equity Share Warrants

464

728

7 0

130

110

100

7 5

52.5

5 0

47.5

42.5

2,084

1,897

1,631

1,440

1,393

1,045

733

698

663

448

3,270

1,574

1,454

1,393

1,396

1,054

1,053

6 9

1,682

6 0

342

Reserves and Surplus

29,822 133,901 124,730

78,313 62,514

48,411

39,010 33,057

28,931 26,416

13,712

Net Worth

30,550 137,171 126,373

81,449 63,967

49,804

40,403 34,453

30,327 27,812

14,765

Gross Fixed Assets

50,780 228,004 218,673 127,235 107,061

91,928

59,955 56,860

52,547 48,261

25,868

Net Fixed Assets

36,837 165,399 169,387

84,889 71,189

62,675

35,082 35,146

34,086 33,184

14,027

Total Assets

55,903 251,006 245,706 149,792 117,353

93,095

80,586 71,157

63,737 56,485

29,875

Market Capitalisation

78,245 351,320 239,721 329,179 198,905 110,958

76,079 75,132

38,603 41,989

41,191

Number of Employees

23,365

24,679

25,487 24,696

12,540

12,113 11,358

12,915 12,864

15,083

Contribution to National
Exchequer

Key Indicators

Earnings Per Share - Rs.*
[excluding Exceptional item]

4,003

17,972

11,574

13,696 15,344

15,950

13,972 12,903

13,210 10,470

4,277

2 0 0 9 - 1 0

08-09

07-08

06-07

05-06

04-05

03-04

02-03

01-02

00-01

1 . 1

49.7

105.3

82.2

65.1

54.2

36.8

29.3

20.6

25.1

Turnover Per Share - Rs.*

13.7

612.9

464.9

958.1

814.2

639.6

525.0

402.8

358.8

325.2

218.5

Book Value Per Share - Rs.*

9 . 3

419.5

401.5

560.3

440.0

357.4

289.9

246.7

217.2

199.2

140.1

Debt : Equity Ratio

0 . 4 6 : 1

0.63:1

0.45:1 0.44:1

0.44:1

0.46:1

0.56:1

0.60:1 0.64:1

0.72:1

EBDIT / Gross Turnover %

Net Profit Margin %

RONW % **

ROCE % **

16.5

8 . 1

16.4

13.9

16.5

8 . 1

16.4

13.9

17.3

10.5

21.6

20.3

20.8

17.3

14.0

10.1

28.8

23.5

20.3

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

In this Annual Report $ denotes US$
1US$ = Rs. 44.90 (Exchange rate as on 31.03.2010)
* After consideration of issue of bonus shares in 2009-10 in the ratio of 1:1
** Adjusted for CWIP and revaluation

1 0

Think Growth. Think Transformation. Think Reliance.

Notice

Notice is hereby given that the Thirty-sixth Annual
General Meeting of the members of Reliance Industries
Limited will be held on Friday June 18, 2010 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, 2010, 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 declare a dividend on equity shares.

3. To appoint Directors in place of those retiring by

rotation.

4. 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, (Registration No. 101720W)
M/s. Deloitte Haskins and Sells, Chartered
Accountants (Registration No. 117366W) and M/s.
Rajendra & Co., Chartered Accountants (Registration
No. 108355W), 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:

5. To appoint Shri Pawan Kumar Kapil as a Director liable
to retire by rotation and also 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 Section 257 and all other applicable provisions, if
any, of the Companies Act, 1956 or any statutory
modification(s) or re-enactment thereof, Shri Pawan
Kumar Kapil, 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 Pawan Kumar Kapil as a
Wholetime Director designated as Executive Director
of the Company, for a period of 3 (three) years with
effect from May 16, 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."

By Order of the Board of Directors

Vinod M. Ambani
President and Company Secretary
May 12, 2010
Registered Office:
3rd Floor, Maker Chambers IV,
222 Nariman Point,
Mumbai 400 021, India
e-mail : investor_relations@ril.com

Reliance Industries Limited

1 1

Notes :

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 Hital R. Meswani, Shri Mahesh P. Modi,
Dr. Dharam Vir Kapur, Dr. Raghunath A. Mashalkar,
Directors, retire by rotation at the ensuing 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
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.
(a) The Company has already notified closure of
Register of Members and Share Transfer Books

from Wednesday, May 12, 2010 to Wednesday,
May 19, 2010 (both days inclusive) for
determining the names of members eligible for
dividend on Equity Shares, if declared at the
Meeting.

(b) The dividend on Equity Shares, if declared at the
Meeting, will be paid on or after June 18, 2010 to
those members whose names shall appear on the
Company’s Register of Members on May 11,
2010; in respect of the shares held in
dematerialized form, the dividend will be paid to
members whose names are furnished by National
Securities Depository Limited and Central
Depository Services (India) Limited as beneficial
owners as on that date

10. Members holding shares in electronic form may note
that bank particulars registered against their respective
depository accounts will be used by the Company for
payment of dividend. The Company or its Registrars
cannot act on any request received directly from the
members holding shares in electronic form for any
change of bank particulars or bank mandates. Such
changes are to be advised only to the Depository
Participant of the members.

11. Members holding shares in electronic form are
requested to intimate immediately any change in their
address or bank mandates to their Depository
Participants with whom they are maintaining their
demat accounts. Members holding shares in physical
form are requested to advise any change of address
immediately to the Company/Registrar and Share
Transfer Agents, M/s. Karvy Computershare Private
Limited.

12. 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 to 2001-02, to the Investor
Education and Protection Fund (the IEPF) established
by the Central Government.

13. The Securities and Exchange Board of India (SEBI)
has mandated the submission of Permanent Account
Number (PAN) by every participant in securities
market. Members holding shares in electronic form
are, therefore, requested to submit the PAN to their
Depository Participants with whom they are
maintaining their demat accounts. Members holding
shares in physical form can submit their PAN details
to the Company.

1 2

Think Growth. Think Transformation. Think Reliance.

14. Members holding shares in single name and physical
form are advised to make nomination in respect of
their shareholding in the Company. The nomination
form can be downloaded from the company’s website
www.ril.com under the section ‘Investor Relations’.

15. 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.

16. 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.

17. Members are advised to refer to the Shareholders’

Referencer provided in the Annual Report.

18. 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. 5

The Board of Directors of the Company (the ‘Board’), at its
meeting held on May 11, 2010 appointed Shri Pawan Kumar
Kapil as an additional director effective May 16, 2010
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
Pawan Kumar Kapil would hold office up to the date of the
ensuing Annual General Meeting.

The Company has received a notice in writing from a
member alongwith deposit of Rs. 500/- for proposing the
candidature of Shri Pawan Kumar Kapil for the office of
Director of the Company under the provisions of Section
257 of the Act.

Shri Pawan Kumar Kapil is 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 Shri Pawan Kumar Kapil, in terms of the Companies
(Disqualification of Directors under Section 274(1)(g) of
the Companies Act, 1956) Rules, 2003, confirming his
eligibility for such appointment.

Further, the Board also appointed, subject to the approval
of Members, Shri Pawan Kumar Kapil as Wholetime
Director, designated as Executive Director of the Company,
for a period of three years with effect from May 16, 2010.

It is proposed to seek Members' approval for the
appointment of and remuneration payable to Shri Pawan
Kumar Kapil as Wholetime Director, designated as
Executive Director, in terms of the applicable provisions of
the Act.

Broad particulars of the terms of appointment of and
remuneration payable to Shri Pawan Kumar Kapil are as
under:

per annum (Rs in Crores):

(a) Salary

(b) Perquisites & Allowances

0.50

0.75

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. Annual increment in
salary and perquisites and remuneration by way of
incentive /bonus payable to Shri Pawan Kumar Kapil as
may be determined by the Board and / or the Remuneration
Committee of the Board, is not to be included for the

Reliance Industries Limited

1 3

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 Pawan Kumar Kapil from time to time,
are not to be included for the purpose of computation of
the overall ceiling of remuneration.

(b) Commission:

No commission is proposed to be paid to Shri Pawan Kumar
Kapil.

Reimbursement of expenses incurred for travelling, board
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:

(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 Pawan Kumar Kapil satisfies all the conditions set out
in Part-I of Schedule XIII to the Act for being eligible for
the appointment.

(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.

The above may be treated as an abstract of the terms of
appointment of Shri Pawan Kumar Kapil under Section 302
of the Act.

(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
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
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,

Shri Pawan Kumar Kapil is interested in the Resolution as
set out at Item No. 5 of the Notice which pertains to his
appointment and remuneration payable to him. Save and
except Shri Pawan Kumar Kapil none of the other Directors
of the Company is, in any way, concerned or interested in
the Resolution.

The Board commends the Resolution as set out at Item
No. 5 of the Notice for your approval.

By Order of the Board of Directors

Vinod M. Ambani
President and Company Secretary
May 12, 2010
Registered Office:
3rd Floor, Maker Chambers IV,
222 Nariman Point,
Mumbai 400 021, India
e-mail : investor_relations@ril.com

1 4

Think Growth. Think Transformation. Think Reliance.

Management's Discussion and Analysis

Forward-looking Statements

Other achievements include:

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

The Mantra of Value Creation

During the past one year, Reliance Industries Limited (RIL)
has commissioned two of the largest projects of global
scale in the energy sector. This was achieved in a period
defined by significantly high capital costs, global shortage
of financial capital and a resource constraint for large scale
projects. The commissioning of these projects has created
several milestones in RIL’s corporate history. As always,
RIL shareholders will be the first to reap the benefits of
the commissioning of the oil and gas, and petroleum
refining facilities. The issuance of bonus shares continues
RIL’s tradition of rewarding shareholders on a consistent
basis. RIL continued to receive global acknowledgement
for its achievements during the year. The Company was
recently rated by the Boston Consulting Group as the
fifth most sustainable value creator globally. The rating
also recognises that RIL’s value creation is balanced and
well-distributed among all the stakeholders of the
Company. Also, RIL is the only Indian company in the list
of the top 25 companies in the world.

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

(cid:2)

264 based on Sales

117 based on Profits

(cid:2)

RIL, ranked at the 11th position, was the only Indian
company in the 25 A. T. Kearney Global Champions
for 2009.

The Exploration and Production (E&P) division won
the ‘Best Project of the Year 2009’ award for KG-D6
Block Deepwater (D1/D3) Gas Fields Development
Project Kakinada, East coast of India from the Project
Management Institute, India in 2009.

Successful Project Execution and Commissioning – RIL
in the elite group of global deepwater oil and gas operators

RIL began gas production within six and a half years of
gas discovery, in comparison to the world average of 9-10
years for similar deepwater production facilities.
Continuous gas production for about a year, with 100%
uptime, once again demonstrates the Company’s flawless
commissioning and execution capabilities.

Key highlights of the KG-D6 project were as follows:

(cid:2) World’s largest gas discovery in 2002

(cid:2) Among the world’s largest and most complex
deepwater gas production facility in the world

(cid:2)

Tie Back of 60 kms

Transforming India’s energy landscape

Capacity of 550,000 Barrels of Oil Equivalent Per Day
(BOEPD)

Equivalent of 40% of India’s current oil and gas
production and has the potential to more than double
India’s gas production

(cid:2) Among the fastest deepwater field development

projects

(cid:2) Among the lowest Finding & Development (F&D)

cost per BOE for similar deepwater projects

(cid:2) Global-scale project management; simultaneous

execution in 20 locations

(cid:2) Among the largest marine construction spread

(cid:2)

Equipment weighing 125,000 Metric Tonnes (MT)
installed offshore

500 line kms of pipelines and umbilicals installed

Presently, RIL is producing approximately 60 Million Metric
Standard Cubic Meters Per Day (MMSCMD) of gas which
is being supplied to several priority sectors identified by
the Government of India under its gas utilisation policy.

Reliance Industries Limited

1 5

Since production commenced in April 2009, the field has
produced over 14.5 billion cubic metres of gas, contributing
significantly to the country’s critical industrial sectors.

RIL is enhancing India’s energy landscape. Production
from the Dhirubhai 1 and 3 discoveries of the KG-D6 block
is likely to result in a quantum leap towards achieving
India’s energy security as it has the potential to account
for 40% of the country’s current hydrocarbon production.
The gas supply from the KG-D6 facility has already
impacted various aspects of the country’s economy
including:

(cid:2)

The Index of Industrial Production (IIP) has
acknowledged the significant contribution of
production from KG-D6 in the double digit growth
registered by the mining sector.

(cid:2) With increased availability of gas, production of
indigenous fertilisers has increased and the cost of
production reduced, thereby resulting in savings of
about Rs. 4,000 crore p.a. in Government subsidies.

(cid:2)

There has been a significant improvement of 30% in
gas-based power generation in the country during
the year.

Production of natural gas from KG-D6 has also
reduced the dependence on more expensive liquid
fuels that were being used in the steel, refining and
petrochemicals sectors.

Within a month of emerging as the largest producer of
natural gas in the country, RIL announced a successful
assessment of the design capacity of the KG-D6 deepwater
gas production facilities in December 2009. A flow rate of
80 MMSCM was achieved through the KG-D6 facilities
and delivered to the East-West pipeline.

High Quality Portfolio

RIL’s upstream oil and gas strategy is to identify, evaluate
and capture the highest quality resource opportunities at
the most competitive cost in the industry. The strength of
the balance sheet and the Company’s recent experience in
deepwater exploration and drilling allows RIL to explore
for incremental resource types regardless of life-cycle. This
is done across geological and geographical plays using
cutting-edge technology and capabilities through
partnerships with leading global players. Incremental
resource types include unconventional resources such
as shale gas, tight gas, Coal-Bed Methane (CBM), heavy
oil and oil sands that can provide profitable, long plateau

production systems in addition to conventional offshore
resources.

RIL’s upstream approach is oriented towards ensuring
greater value by sustained production growth and an
accelerated development of discoveries already made. This
is achieved through ongoing excellence in project
execution and capital efficiency.

Jamnagar–Global Petroleum Refining Hub

With the commissioning of the new refinery in its Special
Economic Zone (SEZ), Jamnagar has now become the
petroleum hub of the world. With 1.24 Million Barrels Per
Day (MBPD) of nominal crude processing capacity, it is
the single largest refining complex in the world. This is
equivalent to 1.6% of global capacity or one third of India’s
capacity, and places RIL amongst the top ten private
refiners globally.

The second refinery, of larger scale and complexity, was
commissioned in a record time of 36 months despite the
fact that it had to be executed under the most-challenging
conditions of scarce availability of project execution
resources due to overheated market conditions from 2005
to 2008. Building two of the largest and most complex
refineries at the same location, in a decade, is unique in
the world of global refining.

The SEZ refinery achieved a flawless start, and the entire
complex at Jamnagar was synchronised in record time. All
the processing units of the SEZ refinery were successfully
commissioned and the facility operated in a stable manner.
It achieved peak capacity utilisation rate of 120% during
the year.

The new refinery has been designed to be more complex
and flexible as compared to the first refinery. This enables
the new refinery to capture more opportunities in value
upgradation – from the bottom-of-the-barrel to highly
value added products. The new refinery has the world’s
largest Coker and Fluid Catalytic Cracker (FCC) plants. In
addition, it also has the world’s largest alkylation unit.

Continuing Success in Exploration and Production

This was yet another successful period for RIL’s oil and
gas exploration and production business. The first oil
discovery was made in the onland exploratory block CB–
ONN–2003/1 (CB 10 A&B) in the Cambay basin awarded
under the NELP-V round of exploration bidding. RIL holds
100% Participating Interest (PI) in this block. The
discovery, named ‘Dhirubhai–43’ has been notified with
the Government of India.

1 6

Think Growth. Think Transformation. Think Reliance.

The Company also made its third successive gas
discovery in the exploration block KG-DWN-2003/1 (KG-
V-D3) of NELP-V. The deepwater block KG-DWN-2003/1
is located in the Krishna basin, about 45 kms off the coast
in the Bay of Bengal. The block covers an area of 3,288 sq.
kms. RIL holds a 90% PI in the block. The well KGV-D3-
R1, the third in this block was drilled at a water depth of
1,982 metres and to a total measured depth of 4,113 metres.
This discovery, named ‘Dhirubhai–44’ has been notified
with the Government of India.

Financial Performance

Turnover

EBITDA

Cash Profit

Net Profit

Rs. 2,00,400 crore
$ 44,632 million

Rs. 33,041 crore
$ 7,359 million

Rs. 27,933 crore
$ 6,221 million

Rs. 16,236 crore
$ 3,616 million

+ 37%
+ 55%

+ 28%
+ 45%

+ 25%
+ 41%

+ 6%
+ 20%

The net profit for the year was at Rs. 16,236 crore ($ 3,616
million) with a Compounded Annual Growth Rate (CAGR)
of 21% over the past ten years.

RIL has announced a dividend of 70% amounting to
Rs. 2,430 crore ($ 541 million), including dividend
distribution tax. This is one of the highest payout by any
private sector company in India.

Return on Equity was at 16.4% and Return on Capital
Employed was at 13.9% for the year. RIL’s net gearing was
at 22.3% and the net debt to equity ratio was 0.31 as on
31 March, 2010.

RIL continues to play a pivotal role in the growth of India’s
economy and endeavours to contribute to the nation’s
progress. It accounts for:

(cid:2)

14.5% of India’s total exports
5.6% of the Government’s indirect tax revenues
5.7% of the total market capitalisation in India

(cid:2) Weightage of 12.8% in the BSE Sensex
(cid:2) Weightage of 10.6% in the NSE Nifty

Financial Review

RIL delivered superior financial performance with
improvements across key parameters.

Turnover achieved for the year ended 31 March, 2010 was
Rs. 2,00,400 crore ($ 44.6 billion), a growth of 37% over the

previous year. Increase in revenue was due to 50% rise in
volumes and a 13% decline in prices. During the year,
exports including deemed exports, were higher by 24% at
Rs. 1,10,176 crore ($ 24.5 billion).

Consumption of raw materials increased by 41% from
Rs. 1,04,805 crore to Rs. 1,47,919 crore ($ 32.9 billion). This
was mainly on account of higher crude oil processed in
the SEZ refinery. Traded goods purchases were Rs. 2,996
crore ($ 667 million) as compared to previous year of
Rs. 2,205 crore.

Employee cost was Rs. 2,350 crore ($ 523 million) for the
year as against Rs. 2,398 crore. The current year figure
includes Rs. 20 crore towards expenditure incurred on
Voluntary Retirement Scheme/Special Separation Scheme
announced for the employees of certain units.
Corresponding previous year figure was Rs. 111 crore.

Operating profit before other income increased by 29%
from Rs. 23,683 crore to Rs. 30,581 crore ($ 6.8 billion). Net
operating margin for the period was 15.9% as compared to
16.7% in the previous year.

Other income was higher at Rs. 2,460 crore ($ 548 million)
against Rs. 2,060 crore primarily on account of increase in
interest income.

EBITDA increased by 28% from Rs. 25,743 crore to
Rs. 33,041 crore ($ 7.4 billion).

Interest cost was higher at Rs. 1,997 crore ($ 445 million)
as against Rs. 1,745 crore. Gross interest cost was lower at
Rs. 2,981 crore ($ 664 million) as against Rs. 5,142 crore for
the previous year on account of lower interest rates and
exchange differences. Interest capitalised was lower at
Rs. 984 crore ($ 219 million) as against Rs. 3,397 crore in
the previous year due to commissioning of projects.

Depreciation (including depletion and amortisation) was
higher at Rs. 10,497 crore ($ 2.3 billion) against Rs. 5,195
crore in the previous year primarily on account of higher
depletion charges in oil and gas and increased depreciation
in the refining business segment.

Profit after tax was Rs. 16,236 crore ($ 3.6 billion) as against
Rs. 15,309 crore for the previous year, an increase of 6%.

Earning per share (EPS) post allotment of bonus shares
for the year was Rs. 49.7 ($ 1.1).

During the year, the Company allotted 6,92,52,623 equity
shares of Rs. 10 each to the equity shareholders of the
amalgamating company, Reliance Petroleum Limited. The
Company also issued and allotted 162,67,93,078 equity

Reliance Industries Limited

1 7

shares to the eligible holders of equity shares in November
2009 as bonus by capitalising reserves. During the year,
the Company has issued and allotted 5,30,426 equity
shares to the eligible employees under ESOS. As a result,
the Company’s equity share capital now stands at
Rs. 3,270 crore.

Capital expenditure during the year was Rs. 21,943 crore
($ 4.9 billion) primarily on account of exploration and
production, SEZ refinery and implementation of several
value maximisation projects. Details of the capital
expenditure undertaken during the year are as follows:

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

(In Rs. crore)

FY 2009-10

FY 2008-09

11,813
9,383
730
17
21,943

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

During the year, a total of Rs. 17,972 crore ($ 4.0 billion)
was paid in the form of taxes and duties.

RIL maintained its status as India’s largest exporter.
Exports, including deemed exports, were at Rs. 1,10,176
crore ($ 24.5 billion) as against Rs. 89,199 crore in the
previous year.

RIL exported to 123 countries around the world. Exports
represent 55% of the RIL’s turnover. Petroleum products
constitute 85% and petrochemicals contribute 15% of the
total exports.

Resources and Liquidity

RIL continued to strengthen its balance sheet and
significantly improved liquidity. This was achieved while
continuing to reduce its interest costs, sale of treasury
shares and the continued optimisation of existing long
term resources.

During the year, the Petroleum Trust sold 8.88 crore equity
shares (adjusted for bonus issue) of the Company and
realised Rs. 9,334 crore. Reliance Industrial Investments
and Holdings Limited, a subsidiary of RIL, is beneficiary
of the Trust. RIL refinanced $ 800 million of its existing
liabilities at a lower cost, resulting in savings in interest
costs. The Company also raised short term resources in
the domestic markets through the issue of commercial
paper aggregating Rs. 18,000 crore at very competitive
rates.

As on 31 March, 2010, RIL’s debt was at Rs. 62,495 crore
($13.9 billion), with long term foreign currency
denominated debt of 83%. The average maturity of the
Company’s long term debt is about 4 years. The proportion
of short term debt to total debt is conservative at 9.5%.

RIL’s gross debt to equity ratio including long term and
short term debt as on 31 March, 2010 was at 0.46, while the
net debt to equity ratio was at 0.31. As on 31 March, 2010,
RIL’s net gearing was 22.3%.

RIL’s cash and cash equivalents as at 31 March, 2010
amounted to Rs. 21,874 crore ($ 4.9 billion). These are
placed in bank fixed deposits, CDs, Government securities
and bonds. RIL manages its short term liquidity in order
to generate superior returns by investing its surplus funds
while ensuring safety of capital.

Over 100 banks and financial institutions have
commitments to RIL, reflecting the strength of its balance
sheet, credit profile and earning capability. On an ongoing
basis, RIL undertakes liability management to reduce cost
of debt and to diversify its liability mix.

RIL’s financial discipline and fiscal prudence is reflected
in the strong credit ratings ascribed by rating agencies.
Moody’s has rated RIL’s international debt at investment
grade Baa2 (stable). S&P has rated RIL’s international debt
as BBB, which is a notch above India’s sovereign rating.
S&P has recently upgraded its outlook on RIL from
‘negative’ to ‘stable’. RIL’s long term debt is rated AAA
by CRISIL and ‘Ind AAA’ by Fitch, the highest rating
awarded by both these agencies. RIL’s short term debt is
rated P1+ by CRISIL, the highest credit rating assigned in
this category.

Business Review

Oil and Gas Exploration & Production

The economic crisis left an impact on the oil and gas
industry globally. The economic downturn that followed
resulted in unprecedented demand destruction. The
industry is on a path of recovery due to fiscal measures
announced by various governments. The major deepwater
basins of the world namely the East coast of India, Gulf of
Mexico, Africa and Brazil continue to witness huge levels
of activity and investment.

The structural theme for investment in the sector remains
valid. The world’s insatiable need for reliable and
affordable energy continues to grow unabated. This calls
for substantial investments, access to resources and newer

1 8

Think Growth. Think Transformation. Think Reliance.

technologies to unlock resources from challenging
locations. The International Energy Agency (IEA), in its
World Energy Outlook 2009, estimates that by the year
2030, global energy demand is expected to increase by
49% from its current level. Oil and natural gas are expected
to remain primary energy sources and are expected to meet
51% of the global demand. Natural gas, a low-carbon, low-
polluting green fuel-that flows from RIL’s blocks, is
creating unprecedented value for the Company’s
shareholders and benefiting India. Increasing concern for
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 $ 11 trillion in the oil and gas sector over the next
20 years implying an annual investment of over
$ 500 billion.

FY 2009-10 was a year of steady growth. Oil prices rose
from an average of $ 46/barrel (bbl) in January 2009 to
touch $ 75/bbl in December 2009. Average WTI prices
remained at $ 70/bbl vis-à-vis $86/bbl for the previous
year. Henry Hub natural gas price averaged at $ 4/Million
Metric British Thermal Unit (MMBTU) for FY 2009-10 as
against an average of $ 7.87/MMBTU in FY 2008-09.

The year 2009 also saw the global oil demand slip to 84.93
MBPD, a decrease of 1.5% over 2008. IEA forecasts that
the global oil demand is set to increase by 1.67 MBPD or
2.0% to 86.60 MBPD in 2010.

Global Natural Gas Market Growing

Globally, natural 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 expected to increase
to nearly 23% in 2031-32 mainly due to the increasing
demand from the industrial sector, power sector, gas
distribution in cities and opportunities in the gas-to-liquids
business.

Sizeable investments globally over the last few years in
developing the natural gas business and related logistical
capabilities have resulted in increased availability of gas
in key markets. As in the case of crude oil, the natural gas
industry is beginning to see the advent of short term,
medium term and long term contracts reflecting increased

transportation capabilities and price fungibility. Regional
variations in prices are driven primarily out of differentiated
transportation costs.

Energy Landscape in India Set for Change

The Indian economy has been growing steadily in the
range of 8-9% in the recent past (6.7% in FY 2008-09) and
is expected to maintain its status as one of the fastest
growing economies in the world with long term GDP growth
estimated to be around 9%. Driven by strong economic
growth, energy consumption in India has been growing
at a CAGR of around 5.3% over the last two decades.

India’s per capita energy consumption is 383 Kg of Oil
Equivalent (KGOE) as against the world average of 1,737
KGOE, which indicates a significant potential for growth
in the demand for energy. As per the Integrated Energy
Policy of the Planning Commission, Government of India,
India’s energy need is expected to grow four-fold from
433 Million Tonnes of Oil Equivalent (MTOE) to around
1,856 MTOE by 2032. However, India depends largely on
imports with over 75% of oil and 16% of gas consumption
being imported.

The East coast of India covers a vast stretch of sedimentary
area of about 2 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.

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 have been identified for drilling.
With drilling success ratio of 54%, RIL’s drilling campaign
is to target these basins.

Gas production from KG-D6 was started in a record time
of six and a half years. The production from this block is
expected to provide a quantum leap in energy security to
the country. The Krishna-Godavari basin find has been
one of the most important development catalyst to various
sectors like power, fertilisers, petrochemicals, refineries,
gas distribution in cities, etc thereby ensuring energy and
food security for the country.

The natural gas sector in the country is evolving and
becoming competitive due to the Government’s proactive
regulatory approach with respect to policies in upstream,
midstream and downstream. This has led to enhanced
investments by various players and the emergence of
competitive markets.

Reliance Industries Limited

1 9

RIL’s E&P Business : KG-D6

KG-D6 completed 365 days of 100% uptime and zero-
incident production. Gas production from KG-D6 has
ramped up to 60 MMSCMD in a short span of 9 months
from commencement. Current production of about 60
MMSCMD is from 16 wells. The design capacity of the
KG-D6 deepwater gas production facilities were assessed
and achieved a flow rate of 80 MMSCM. During
FY 2009-10, total gas production was 14,397 MMSCM.

Six wells from the D26 oil field in the block are under
production. Gas produced from the D26 field was exported
to the Onshore Terminal (OT) in the months of November
2009, December 2009 and February 2010.

Oil production from the D26 field now exceeds 35,000
barrels per day. During the FY 2009-10, total oil production
from this field was 4.04 million barrels.

The facility has undergone extensive quality assurance
and quality control audits with the support of international
experts like Det Norske Veritas (DNV), Ward Associates
and Shell Global Solutions. The pipeline network was put
through nitrogen helium tests for leak tests and pressure
points. More than 1,000 punch points were addressed
within six months, eliminating risk factors. Fatigue tests
were also carried out on installed infrastructure to ensure
their ability to support the planned 25-year lifespan of the
field. The entire development was put through stringent
quality checks in compliance with the applicable standards,
and organisational and project policies. DNV has carried
out certification and verification of all works. DNV reviewed
and verified engineering, fabrication and installation of all
offshore facilities. DNV also carried out the Hazard
Identification and Hazard and Operational Study through
the different stages of the project. Other independent
surveyors have included Lloyd’s Register and Moody’s
International. Extensive and intensive checks were done
on all equipment, which included Factory Acceptance Test,
Extended Factory Acceptance Test, Systems Integrity Test
and Site Acceptance Test prior to installation. Multiple
levels of inspection were undertaken by manufacturer’s
Quality Control (QC) team, RIL’s QC team and third party
QC teams to ensure nothing was left to chance.

For the purpose of gas marketing, GSPAs have been
executed with more than 50 customers in the fertiliser,
power, city gas distribution, steel, LPG, refinery and
petrochemical sectors.

As part of appraisal activities of 4 discoveries in the
southern part of the KG-D6 block, RIL successfully drilled
4 appraisal wells in FY 2009-10. The commerciality of these
discoveries has been submitted.

In the KG-D6 block, further to the submission of the
development plan in 2008 for the 9 satellite gas discoveries,
an optimised development plan for prioritising 4 satellite
gas discoveries was submitted to the Directorate General
of Hydrocarbons (DGH) in December 2009.

An integrated development plan for all gas discoveries in
the block KG-D6 is being conceptualised to maximise
capital efficiency and accelerate monetisation.

Other Domestic Blocks

The Company made four discoveries during the year
which are as follows:

(cid:2) Well R1 in the KG-V-D3 block

(cid:2) Well AA1, BF1 and AH1 in on-land CB-10 block

The Company has also submitted a proposal for
commerciality for the following:

(cid:2) Discoveries D28, D37 and D38 in KG-III-5 block

(cid:2) Discovery D35 in CY-D5 block

(cid:2) Discoveries D32 and D40 in NEC-25 block

(cid:2)

For discoveries D20, D30, D31, D34 in KG-D6 block

RIL has successfully drilled 4 appraisal wells in the
southern and deeper parts of the NEC-25 block. Results
of these are being incorporated to generate an integrated
development plan for all discoveries to maximise capital
efficiency. Appraisal activities are currently underway in
KG-D4, CY-D5, KG-III-5, KG-III-6, KG-V-D3 and GS-01
blocks.

During the FY 2009-10, two deepwater blocks of NELP-V
round namely KK-V-D1 and KK-V-D2 were relinquished
due to their poor prospectivity. Currently, RIL’s portfolio
consists of 29 exploration blocks. Also, RIL holds 30%
interest in PMT fields. Total domestic oil and gas
exploration and production acreage amounts to 290,633
sq. kms.

Panna-Mukta and Tapti Fields

The development of the Panna-K (PK) area has been
completed. Current production from PK wells is around
5,000 Barrels of Oil Per Day (BOPD) and around 10 Million
Metric Standard Cubic Feet Per Day (MMSCFD) gas.

2 0

Think Growth. Think Transformation. Think Reliance.

The South West Panna (SWP) development project was
approved in February 2008 with projected 2P reserves of
around 4.7 Million Barrels of Oil (MMBO) from about 42
MMBO in-place reserve. New 3D survey indicated a
significant reduction in 2P reserves at 1.76 MMBO from
about 11 MMBO in-place. The Government has approved
abandoning the project. Separately, it has approved
installing the SWP jacket and deck with minor
modifications at Panna L (PL) to advance production by
around 12 months and improve the final hydrocarbon
recovery from PL.

The development plan of the PL area has been approved
by the DGH in June 2009 for completion in 2011. However,
with the Government approving the installation of SWP
facilities at PL, the project is now expected to be completed
in 2010. Initial anticipated total production from PL is
approximately 4,000 BOPD from 6 wells.

To arrest the declining gas production in Tapti, 3 infill
wells (2 in South Tapti and 1 in Mid Tapti) have been
approved for drilling in Q3/Q4 FY 2009-10 by the
Management Committee. MTA-6 well has been already
drilled and is currently producing around 35-40 MMSCFD
gas. STA-7 well has also been drilled and is currently
producing 35 MMSCFD of gas. The STC well is currently
being drilled and post the drilling of this well, gas
production from Tapti is expected to be ramped up from
the current level of around 315 MMSCFD to around 330
MMSCFD. A development plan for Mukta (MB area) is
being planned to be submitted to the Government of India
for approval after the results of a pre-drilled well to be
drilled in 2010-11 are reviewed.

Panna-Mukta fields produced 1.8 million tonnes of crude
oil and 1,965 MMSCM of natural gas in FY 2009-10,
registering a growth of 9% and 18% respectively over the
previous year. Higher volumes in the first half are due to
full production as compared to lower production registered
in the same period last year on account of downtime due
to repairs (PPA Hot Oil Heater).

Tapti fields produced 187,000 tonnes of condensate and
3,102 MMSCM of natural gas for FY 2009-10, a decrease
of 31% and 26% respectively as compared to the previous
year. The decrease in production was due to a
natural decline in the reserves.

CBM Blocks

The development plan for Sohagpur CBM blocks has been
approved by the Government and development activities

have been planned to commence in FY 2010-11 by drilling
and completion of additional wells. Prolonged production
testing was undertaken in the wells drilled in Sohagpur
CBM blocks with favourable results. The plan for 2010–
11 is to monetise the production capability from the present
as well as the proposed wells.
During the year, two CBM blocks BS-1 and BS-2 were
relinquished. With this, RIL currently holds a total of 3
CBM blocks.
International Business
In April 2010, RIL entered into a joint venture with the
USA based Atlas Energy, Inc. (Atlas) under which RIL
acquired 40% interest in Atlas’ core Marcellus Shale
acreage position. RIL has become a partner in
approximately 300,000 net acres of undeveloped leasehold
in the core area of the Marcellus Shale region in
southwestern Pennsylvania for an acquisition cost of $
339 million and an additional $ 1.36 billion capital costs
under a carry arrangement for 75% of Atlas’s capital costs
over an anticipated seven and a half year development
programme.
Low operating costs and proximity to USA northeast gas
markets combine to make the Marcellus Shale region one
of the most economically attractive, unconventional
natural gas resources play in North America. The acreage
will support the drilling of over 3,000 wells with a resource
potential of approximately 13.3 Trillion Cubic Feet
equivalent (TCFe). While Atlas will serve as the
development operator for the joint venture, RIL is expected
to become a development operator in certain regions in
the coming years in the JV.
Atlas will continue acquiring leasehold in the Marcellus
Shale region and RIL will have the option to acquire 40%
share in all new acreages. RIL also obtained the right of
first offer with respect to potential future sales by Atlas of
around 280,000 additional Appalachian acres currently
controlled by Atlas (not included in the present joint
venture). The RIL-Atlas joint venture has the potential to
become one of the largest prime acreage holders in the
Marcellus Shale region.
This joint venture will materially increase RIL’s resource
base and provide an entirely new platform from which to
grow its exploration and production business while
simultaneously enhancing its ability to operate
unconventional projects in the future.
Additionally, RIL has farmed out 20% PI in the blocks
Borojo North and Borojo South in Colombia; and 30% PI
in block 18 and 25% PI in block 41 in Oman. The Regional

Reliance Industries Limited

2 1

Government of Kurdistan has assigned third party
participating interest of 20% each in blocks Rovi and Sarta
to M/s OVM; the assigned agreement is yet to be signed
by RIL. RIL now has 13 blocks in its international E&P
portfolio including 2 in Peru, 3 in Yemen (1 producing and
2 exploratory), 2 each in Oman, Kurdistan and Colombia, 1
each in East Timor and Australia; amounting to a total
acreage of over 93,500 sq. kms.

Refining and Marketing

A Year of Stabilisation after the Economic Meltdown

This was undoubtedly one of the toughest years for the
refining business globally. Refining margins dropped to
their lowest in a decade. Weak demand, high level of
inventories and high crude prices led to weakening of
product cracks and refining margins across regions. The
industry also witnessed a sharp reduction in refining runs
and operating rates in addition to prolonged maintenance
shutdowns and permanent closures. It was also a period
that witnessed the highest ever annual decline in oil
demand. Crude oil and product inventories were at the
top end of 5 year average.

Improved economic outlook, positive industrial data and
higher demand led to an improvement in refining margins
globally in recent months.

There was a disproportionate impact on oil prices on the
back of high demand. There was a quick recovery from
the lows of $ 35/bbl in December 2008 to the high of $ 85/
bbl in April 2010; one of the highest rises in the last decade.
The first half of the year saw crude price sharply increase
from around $ 50/bbl to $ 70/bbl. Demand concerns, supply
overhang and the strengthening of the US dollar resulted
in subdued oil prices in the second half which remained
range bound between $ 70/bbl and $ 80/bbl. Crude price
closed at $ 80.7/bbl in March 2010, an increase of 66% on
a y-o-y basis.

Average Crude Oil Prices ($/bbl)

FY 2009-10

FY 2008-09

High

Low Average High Low Average

WTI

Brent

Dubai

83.5

80.5

81.3

45.9

46.5

47.2

(Source: Platts)

70.6 145.3

69.6 144.2

69.5 140.8

31.3

33.7

36.4

86.8

84.5

82.8

In this context, what set RIL apart was the complexity of
its refineries, highly competitive operating costs and the

ability to maintain high operating rate of over 100%. The
Jamnagar refineries are among the largest in the world,
and also the most complex, with an average complexity of
over 12.0 on the Nelson Complexity Index. RIL is among
the top 10 private refining companies globally and 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. This resulted in RIL
delivering the best refining margin and achieving the
highest operating rate of any large refining system globally.

Global Industry Overview

The world oil demand in 2009 stood at 84.9 MBPD, a decline
of 1.28 MBPD over 2008. As per the IEA, OECD demand in
2009 for oil fell by 4.4% to 45.5 MBPD on a y-o-y basis
while the non-OECD demand rose by 2.1% to 39.5 MBPD.
In January 2009, IEA had forecast world oil demand to
contract by 0.51 MBPD to 85.3 MBPD whereas the actual
decline was 1.28 MBPD.

OPEC responded and targeted a compliance of 80-85% to
the production cut levels. However, some countries
increased their production towards the end of the year
resulting in the compliance level dropping to 55% by the
end of the year.

The world witnessed low levels of industrial production
and global trade. The economic downturn reduced light
product demand and resulted in high light product stocks
which have weighed on margins. Strategic stockpiling of
crude by China, as well as companies playing the contango
trade resulted in a recovery in crude demand and prices.

Light-Heavy Differentials

Light-heavy crude and product differentials have been
compressed throughout 2009, resulting in much weaker
complex refining margins. This has been driven by lower
crude prices, reduced heavy crude production and an
increase in upgrading capacity. Differentials are likely to
remain muted in the medium term due to a lighter crude
slate and increased upgrading capacity.

Arab light-heavy differential averaged around $ 1.72/bbl
making fuel oil crack stronger than the previous year. While
the global crude and petroleum product markets continue
to tighten, the recovery is not even. Petroleum demand is
growing stronger in Asia and other emerging markets as
compared to those in the Atlantic basin. Moreover, demand
for light, higher quality sweet crude is recovering faster
than the demand for medium, heavy and sour crude.

2 2

Think Growth. Think Transformation. Think Reliance.

Before the recession, when a lack of sophisticated refinery
upgrading capacity boosted the demand for light crude
oil, light-heavy crude oil spreads widened to record levels.
But as the economic downturn reduced demand, OPEC
cut back output of medium-sour grades and new refinery
upgrading capacity came on line in 2009. This combination
resulted in a collapse of the spread between light and
heavy grades. More recently, light-heavy spreads have
widened as demand and utilisation rates have started to
improve.

There are four main drivers that continue to support a
trend for modestly wider light-heavy spreads in 2010. First,
demand for gasoline and gas oil at the light end of the
barrel is recovering. Secondly, high inventory level and
lower demand for fuel oil in the cargo and bunker market is
impacting heavy-sour crude. Third, as OPEC increases
output to meet rising oil demand, supply of heavy-sour
crude barrels has increased, putting downward pressure
on prices and fourthly, temporary and permanent
shutdowns at refineries due to both seasonal maintenance
and low margins have reduced demand for heavy-sour
crude.

Demand for Petroleum Products

As per IEA estimates in April 2010, the fall in OECD demand
was largely attributed to Europe and North America. Oil
demand in OECD Europe fell by 5.2% to 14.5 MBPD
whereas demand in North America fell by 3.7% to 23.3
MBPD in 2009. On the contrary, demand in non-OECD
markets remained resilient with Asia, including China and
India growing at 5.1% to 18.5 MBPD. Demand in other
non-OECD markets including Latin America, Middle East
and Africa remained stable to marginally positive by 1.2%
at 16.4 MBPD.

As per IEA estimates, world oil demand in 2010 is expected
to rise to 86.60 MBPD, an increase of about 1.67 MBPD
over 2009. Demand growth in non-OECD markets is
expected to remain robust and is expected to rise by 1.78
MBPD, an increase of 2% to 41.24 MBPD. Asia, Middle
East and South America are expected to account for over
83% of global demand growth.

Light Distillates

USA’s gasoline consumption has declined by around 3%
in 2008 and remained flat during 2009. The decline in US
gasoline demand could be due to increase in passenger
fleet’s fuel efficiency gain and high prices of gasoline
during 2008. Loss in gasoline demand in the US demand

also reflects the high unemployment rate and consumers’
changing driving pattern. These trends are cyclical in
nature and at least part of the demand loss could return
under an improved economic environment wherein USA
gasoline demand could grow 0.5-1.0% a year in 2010 and
2011. Although advanced bio-fuels using bio-waste or
algae as feedstock, CNG vehicles, hydrogen fuel cells and
electric cars all hold interesting promise, none of these
technologies represent a real threat to the gasoline market
over the next decade.

Equally important is the growth in demand for gasoline in
the non-OECD markets, large parts of which are witnessing
significant economic development and increase in
personal vehicle growth in Asian, Latin American and
Middle Eastern countries. There is strong correlation
between the non-OECD gasoline demand growth and their
GDP. As a result, worldwide gasoline consumption could
increase by an average of 1.6% annually over the next 2
years.

Naphtha crack continues to dominate the South East Asian
markets with increasing Chinese demand for naphtha
crackers. With increased demand and a relatively low rate
of refinery capacity utilisation, naphtha stocks have
started to draw down across all OECD regions and are
below the seasonal averages. As tighter supply and
demand balance has driven down inventories, naphtha
cracks have continued to appreciate in recent months.

A surge in petrochemical demand and a steeply
backwardated naphtha market suggest that, in absence of
major external shocks, a cyclical recovery for the broader
economy is imminent. Historically, demand for naphtha, a
key input into petrochemical processes, has led demand
for other petroleum products.

Middle Distillates

Diesel margins were impacted by weak demand in 2009 as
a result of economic slowdown, sluggish industrial activity,
capacity additions and distillate stocks. Distillate stocks
in North America are at their highest levels in two decades,
while implied OECD distillate demand has contracted 6%
in 2009.

The first half of the year showed stocking of middle
distillates in anticipation of an economic recovery.
However poor demand prevented draw downs, resulting
in massive inventories and this impacted diesel cracks.
Towards the end of the year, a colder than normal winter
triggered inventory draw down and hence improving the

Reliance Industries Limited

2 3

cracks. Diesel demand in Asia Pacific, particularly India
over specification changes from April 2010, helped push
the diesel cracks in the region to double digits.

Diesel will be the growth fuel going forward, since most of
the incremental demand is expected from non-OECD
countries such as China and India. The importance of
diesel and gas oil should not be underestimated, both in
terms of refining profitability and the impact on oil prices.

While oil prices are driven by a variety of factors including
strategic stockpiles, OPEC spare capacity and strength of
the US dollar, it is clear that diesel demand is also a major
driver of oil prices. Diesel/gas oil demand is likely to
gradually recover in line with the global economy, but
given the existing level of diesel production capacity and
new capacity additions coming online globally, diesel
margins could recover slowly.

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, it is China and India that
should see the most significant increase in global market
share.

As per IATA, passenger demand that fell by 2.9% in 2009
is expected to grow by 5.6% in 2010. Cargo demand, which
fell by 11.1% in 2009, is expected to grow by 12.0% this
year. A strong year-end recovery pushed load factors to
record levels when adjusted for seasonality. By January
2010, the international passenger load factor was 75.9%
while cargo utilisation was at 49.6%. On the other hand,
tighter supply and demand conditions are expected to see
yields improve 2.0% for passenger and 3.1% for cargo.
Asia, Middle East and Latin America are driving the
recovery followed by North America and Europe.

Global trade is recovering and with it, so are jet-kero
margins which are now at cycle average levels. Economic
activity in emerging economies and higher global industrial
production is providing support to jet-kero demand.
Industry estimates indicate that industrial production
tends to have a stronger impact on jet-kero than on
distillate demand. Once inventories come down to more
normal levels, crack spreads could strengthen rapidly on
the back of a sustained upturn in global manufacturing in
2010 and beyond.

Medium Term Demand Outlook

Strong non-OECD oil demand growth and discipline
regarding the ‘closed’ capacities remain critical to the
sustained recovery of the refining cycle. While around

1.67 MBPD of global oil demand growth (largely non-
OECD) is expected in 2010, about 1.0 MBPD of refining
capacity is estimated to ramp up in 2010, almost equally
spread over the four quarters. An estimated 1.43 MBPD of
refining capacity has been permanently shutdown.
However, some of this capacity could be resumed in the
future as many of the sites have not been dismantled.

About 2.5 MBPD of refining capacity have been cited as
potential closure candidates or been put up for sale. Most
of these refineries are located in Europe, and are more
likely to be sold than shut down due to non-commercial
considerations.
While refining utilisation could show improvement, more
meaningful improvement in utilisation rates is expected
only in 2011, as oil demand grows further. Despite
divergence in oil demand between OECD and non-OECD
regions, it may be early to differentiate refinery outlook
between geographies as the Asian refiners continue to
export to the West. Surplus in new refining capacity will
begin to get consumed by oil demand growth over the
next two years.

While the refining sector is moving through a trough,
without any of the closed capacities coming back into
operation, strong global oil demand growth could pull
refining into a sustained cyclical recovery from 2011
onwards. Additional capacity closures would auger well
for the industry outlook in 2010 as well.

In the medium term, structural drivers of demand will
continue to undergo change. Gas oil will continue to be
the growth engine followed by naphtha and gasoline.
Residual fuel oil is expected to grow the least due to
continued substitution by natural gas in power generation
and industrial applications. By 2015, demand for gas oil is
expected to grow by 2.7 MBPD. The combined demand
for naphtha and gasoline is slated to increase by 2.0 MBPD
while demand for fuel oil is expected to grow by 0.4 MBPD.

Demand for gasoline, which currently constitutes 25% of
the world petroleum market could see slow growth. The
reduction in demand is more likely in USA due to the impact
of regulatory changes that come into force in 2011. Higher
penetration of diesel cars could also impact demand for
gasoline in Europe. Japan could also experience a
reduction in gasoline demand as vehicle efficiency
improves. Increase in demand from non-OECD countries
will be underpinned by the rapidly growing vehicle
population in China, India, Brazil and other emerging
markets.

2 4

Think Growth. Think Transformation. Think Reliance.

Demand for gasoline in USA is expected to shrink over
the medium term primarily because of structural changes
affected by the ‘Energy Independence and Security Act’
bill which was introduced in 2007. Another factor is the
announced acceleration of the USA motor fuel economy
standard that increases the Corporate Average Fuel
Economy (CAFÉ) from approximately 26.0 Miles Per Gallon
(MPG) to 35.5 MPG by 2016.

Clean Fuels

From 2009, the European Union (EU) has, in a phased
manner, migrated to 10 Parts Per Million (PPM) sulphur
gas oil. In addition, all ships entering EU ports from 2010
are required to use the fuels with a maximum level of 0.1%
sulphur. This change has allowed modern refineries like
RIL to place products in EU markets that have already
implemented the changeover.

China is likely to switch over to lower sulphur
transportation fuels in 2010 with mandated 150 PPM in
gasoline (earlier limit of 500 PPM) and 150 PPM in diesel
(earlier limit of 500 PPM).

In 2010, in a phased manner, India will also migrate towards
using transport fuel that is compatible with Euro IV vehicle
emission standards in 13 major cities, while the rest of the
country will migrate to fuels that match Euro III
specifications.

Meanwhile, product specifications have become more
stringent in several regions of the world. In most of the
major oil consuming regions like the EU, Japan and some
Asian countries, sulphur is virtually eliminated from
gasoline and diesel has maximum content of 10 PPM. In
USA, this is now 15 PPM for transport diesel and 30 PPM
for gasoline whereas Canada already has a 15 PPM limit
for both. In USA, most of the off –road diesel will also be
subject to the 15 PPM maximum limit for sulphur in 2010.
Also the Emission Control Areas (ECAs) along the USA
and Canadian coastline proposed sulphur dioxide (SOx)
limitation in bunker fuel from current 15,000 PPM to 10,000
PPM starting July 2010. The European limit on sulphur in
gas oil has also been reduced to 1000 PPM from January
2008. This continuing global trend of tightening of product
specifications across regions will present new trade
opportunities for global complex refiners like RIL, with its
ultra-clean product capabilities.

In response to the global recession, China announced a
stimulus plan that included $ 73 billion for refining and
petrochemical industries. The funds were to be used not

only to increase the amount of refining capacity but also
to upgrade existing capacity to produce cleaner fuels. The
stimulus funds were intended for projects that were already
under construction or at advanced planning stages. This
along with higher refinery run rates in China has added
pressure on refineries in the OECD region thereby
increasing the likelihood of further closures.

Demand for Petroleum Products in India

During the year, domestic demand for petroleum products
increased from 124.1 million tonnes to 130.5 million tonnes,
reflecting a growth of 5.1% in FY 2009-10. Indian refining
capacity increased to 179.96 million tonnes from 177.9
million tonnes during the year.

Product-wise Demand and Growth

(In KT)

Diesel

Gasoline

ATF

LPG

Kerosene

Total
(incl. others)

FY 2009-10 FY 2008-09 Growth (%)

56,148

12,818

4,627

12,728

9,304

51,649

11,258

4,454

11,935

9,303

8.7%

13.9%

3.9%

6.6%

0.0%

130,542

124,171

5.1%

Gross Refining Margin
Though signs of economic recovery supported crude
prices steadily, poor demand for products kept the cracks
lower than FY 2008-09 levels.

Gasoline cracks improved marginally by $ 0.2/bbl to $ 6.7/
bbl in FY 2009-10, while both jet-kero and gas oil cracks
reduced by 67% individually to $ 7.9/bbl and $ 7.3/bbl
respectively. Naphtha cracks improved from (-)$ 5.5/bbl
to (-)$ 0.4/bbl while Fuel Oil (FO) cracks became stronger
by $7.8/bbl to close at (-)$ 4.1/bbl.

Naphtha cracks recovered during the year due to increased
demand from crackers in the Asia Pacific region. Demand
for gasoline remained steady in Asia, led by China
registering record growth in automobiles. Reduced air
travel and air cargo movements impacted the jet-kero
cracks. Gas oil cracks were under pressure due to supply
overhang on account of huge inventories of middle
distillates. The situation improved from December 2009,
first on the back of a spell of cold weather in the Northern
Hemisphere and thereafter with improved demand. This
helped drawdown inventories resulting in ongoing

Reliance Industries Limited

2 5

improvement in gas oil cracks. FO cracks remained strong
throughout the year.

Source: Reuters

RIL’s Gross Refining Margin (GRM) for the year was at
$ 6.6/bbl, a premium of $ 3.1/bbl over the Singapore
complex margin and an ongoing outperformance of key
global benchmarks.

Refinery Capacity and Utilisation Trends
Several refinery projects planned and under construction
prior to the world recession have come online in 2008 and
2009. As per E.M.C., total new primary distillation capacity
commissioned in these two years is over 4 MBPD, with
most of them getting operational in 2009, located in Middle
East and Asia.

With drop in demand and low refinery margins, refiners all
over the world are reducing operating rates. The average
capacity utilisation rates in FY 2009-10 for refineries in
North America, Europe and Asia were at 81.2%, 75.8% and
82.0% as compared to 83.6%, 82.8% and 83.2% respectively.

Performance Review

The consolidation of Reliance Petroleum Limited’s refining
assets with RIL’s existing refinery in Jamnagar gives RIL a
capacity of 1.24 MBPD, which is about 1.6% of the world’s
refining capacity.
What set RIL apart in the context of global refining is the
complexity and the scale of its refineries. The two Jamnagar
refineries that RIL operates are not only among the largest
in the world, but also are the most complex, with an average
complexity of more than 12.0 on the Nelson Complexity
Index. Following the merger, RIL now owns 25% of the
world’s most complex refining capacity and has become
the world’s largest producer of ultra-clean fuels at a single
location.
To support India’s strong growth with a drop in global
demand, RIL surrendered the Export Orientated Unit (EOU)
status for its 660,000 barrels per day refinery. This has
maintained high utilisation.

Since inception a decade ago, RIL has been able to
outperform the benchmark Singapore complex refining
margin. Margins have been comparable with other complex
refiners globally and significantly higher than refiners in
China, where margins are regulated by the Government.

There are two ways in which RIL has been able to
outperform the benchmark index. The complexity of the
Jamnagar refineries allows the Company to process heavy
and sour crude from all over the globe reducing its feed
costs. RIL also has the ability to place products in the
markets of Europe, Asia and USA to generate the best
margins.

RIL processed 60.9 million tonnes of crude and clocked
an average utilisation of 98.3%, significantly higher than
the average utilisation rates for refineries globally. Exports
of refined products were at $ 20.9 billion. This accounted
for 32.8 million tonnes of product as compared to 22.6
million tonnes in the previous year.

Production of Petroleum Products [in Kilo Tonnes (KT)]

Product

FY 2009-10 FY 2008-09

Gases & distillates

Fuel oils and solids

Total production

51,400

9,400

60,800

28,000

4,450

32,450

Technology Development and Innovation

At RIL, a team of more than 100 engineers and scientists
is driving various Research and Technology (R&T) efforts
in the refining arena. Jamnagar refinery has set up a full
scale FCC pilot plant for evaluation/selection of FCC
catalysts and additives, along with the state-of-the-art
laboratory/analytical facilities for advanced crude
characterization, NMR /Infrared Spectroscopy, Inductively
Coupled Plasma (ICP) analyzer etc.

R&T has been making extensive use of various advanced
techniques like simulation, mathematical modeling,
Computational Fluid Dynamics (CFD) modelling, and many
others to support refining operations, improve product
quality, optimise yield of high value products like
propylene/LPG/gasoline from FCC unit and enhance
bottom-of-the-barrel processing. Further to improve
refinery margin, R&T has developed technology for
processing heavy and high TAN opportunity crudes.

RIL’s SEZ Refinery

RIL commissioned its new refinery in the SEZ at Jamnagar.
This refinery has the capacity to process 580,000 barrels

2 6

Think Growth. Think Transformation. Think Reliance.

of crude oil per stream day. The facility also has the
capacity to produce 0.9 million tonnes of polypropylene
per annum. The new refinery is the sixth largest in the
world and has a Nelson Complexity Index of 14.0, making
Jamnagar the largest and most complex refinery site in the
world. This refinery has more than 40 process units apart
from a large network of offsites, utilities and other
Infrastructure facilities.

The SEZ refinery has a unique design and path breaking
configuration with ‘Clean Fuels’ process plant. It is
designed with high level of flexibility to change grades
based on economy and to capture margins based on
market dynamics. The new SEZ refinery is the first refinery
in India to produce Euro-IV grades of gasoline and diesel.
The refinery has been the first in India to produce large
number of US grade gasoline such as R-BOB, RFG, US
conventional, 95 Oxy-free and Ultra Low Sulphur Diesel
(10 PPM Sulphur) which are being supplied to the US and
European markets.

The new refinery has some of the world’s largest units:

(cid:2)

FCC with Rx Cat technology for maximum propylene
production

Coker – with most advance safety features.

(cid:2) Alkylation plant (based on Sulphuric acid

technology)

(cid:2)

Light Cycle Oil (LCO) hydrocracker

The refinery complex is designed for total water
conservation. It has its own desalination plant and carries
out complete recycling of effluent with zero discharge. It
has a state-of-the-art centralised control centre, laboratory,
fire station and a large green belt. The green belt has been
developed across the boundary of the refinery and has
got 2.3 million trees and 0.8 million mangroves. It has over
1 million mango trees – probably the largest mango
plantation in Asia.

It has been an exemplary, historical and a flawless start-up
of a chain of plants in a safe, secure and an incident free
manner. The activities were carried out in a seamless
manner such that not even a single day was lost between
construction completion and commissioning of the
refinery. All units were commissioned in shortest possible
time schedule in spite of the tight interdependencies
between various units.

The refinery attained a significant milestone by fully
stabilizing the operations in a record time. All its process

units have successfully demonstrated their ability to
operate smoothly and safely, producing high quality
transportation fuels. All key processing units at the
refinery are operating at their peak design capacity. The
refinery has successfully processed more than 60 types
of crude oils, including difficult crude oils within a few
months of its start-up, thus reflecting superior quality of
assets and capabilities.

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

Domestic Petroleum Marketing

Consistent high rate of growth over the past few years
resulted in deficit of key petroleum products in the country.
With planned introduction of Euro-III and Euro-IV grade
of transportation fuels, these deficits are likely to increase
going forward. RIL decided to convert its refinery from
EOU to Domestic Tariff Area (DTA) to meet these domestic
deficits and commenced supplies to PSU oil companies
from May 2009.

With softening of crude and product prices last year, RIL
restarted domestic petroleum retail operations in southern
and western states. Domestic retail marketing however
continues to suffer due to lack of level playing field to
private oil marketing companies. Hence operations in all
geographies and scaling up of sales would only be
possible once prices are market determined or level playing
field is brought for private players as well.

In February 2010, the Kirit Parikh committee made
recommendations to the Government to allow free market
pricing for gasoline and diesel, and to raise administered
prices for kerosene and LPG. The report recommends
raising LPG prices by Rs. 100 per cylinder and at least Rs.
6/litre for kerosene. It is yet to be seen whether any of
these suggestions will be put into practice and what affect
that will have on petroleum product demand in India. Any
positive step by the Government along the lines of these
recommendations will give a positive thrust to RIL’s retail
business.

Aviation Turbine Fuel (ATF) demand has seen some
stabilisation with a growth of 3.9% in FY 2009-10 as against
negative growth of 1.9 % in FY 2008-09. RIL is present at
24 airports in India which collectively account for 30% of
total ATF demand in the country. RIL is seeking to expand

Reliance Industries Limited

2 7

its network aggressively to have its presence at 30 airports
which will cater to 95% of total civilian air traffic demand.

Petrochemicals
Overview

The demand for petcoke in India is presently about 8 million
tonnes p.a. with Gujarat and Rajasthan accounting for
about 75% of the domestic demand. Current demand in
the country exceeds overall production capacity despite
the commissioning of the Coker at the new refinery in
Jamnagar. During FY 2009-10, RIL sold a total of 5.34 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 several major industrial units,
the demand for petcoke is set to increase.

The annual sulphur demand of 3.4 million tonnes in India
is met from domestic production as well as imports. RIL
Jamnagar production of 0.85 million tonnes in FY 2009-10
was sold primarily in domestic market supplemented by
some exports. The fertilizer sector consumes sulphur in
various forms and the demand for elemental sulphur in
this sector, particularly from Single Super Phosphates (SSP)
is likely to increase due to the encouraging Nutrient Based
Subsidy (NBS) policy announced by the Government that
has introduced subsidy for sulphur as a nutrient in
fertilizers to improve the sulphur deficiency in the soil.

GAPCO

RIL consolidated the operations of its GAPCO subsidiaries
in East Africa. GAPCO owns and operates large storage
facilities and has a retail distribution network in several
countries including Tanzania, Uganda and Kenya. It owns
and operates large coastal storage terminals in Dar-e-
Salaam (Tanzania), Mombasa (Kenya) and an inland
terminal at Kampala (Uganda) besides having well located
depots in East Africa. It also has a well located network of
retail outlets in Tanzania, Uganda and Rwanda.

Special initiatives to improve the supply infrastructure
and sales volumes have led to superior productivity and
higher throughputs. The Mombasa terminal has been
augmented to receive Premium Motor Spirit (PMS), thus
enabling GAPCO Kenya to make a combined diesel and
petrol offering to the retail and independent sectors in
Kenya.

GAPCO is also emerging as a key supplier to neighbouring
countries and has signed a term contract for supplies to
Zambia from its Dar-e-Salaam terminal in Tanzania.

As the world economy recovers, the petrochemical
industry finds itself passing through a period of
transformation.

Chemical companies benefited mainly due to demand
growth in India and China. Government stimulus policy
and closures of non-competitive plants worldwide have
added to the revival of the industry in Asia.

The recession caused slowdown or a decline in many
markets globally, although to a lesser extent in Asian
economies. This resulted in unprecedented levels of
fluctuation in commodity prices which impacted chemical
sales worldwide.

Source : Platts
Economic Recovery Coupled with Operational Excellence (cid:2) Strong
Earnings

Demand remained inherently weak but for a few bright
spots in the Far East. China’s stimulus buoyed consumer
demand for both durables and non-durables, whereas a
rebound in Europe and USA lacked in comparison.

Global Polyolefins+PVC Demand

(in MMT)
PP
LDPE
LLDPE
HDPE
PVC
Ethylene
Propylene

Source : CMAI

2007
44.5
18.7
19.2
31.0
35.3
114.3
72.9

2008
43.3
17.7
18.3
29.5
32.4
107.9
70.3

2009
44.4
17.8
18.5
30.5
31.6
110.4
71.2

2009 World’s Polyolefin’s Demand Reached Near 2007 Level

A rally in Asian prices during mid 2009 attracted large
volumes of imports into the region, which arrived just as
demand was beginning to stall. Towards the end of 2009,

2 8

Think Growth. Think Transformation. Think Reliance.

the industry witnessed substantially improved profits from
a year ago due to improved demand, and cost cutting
across the sector.

Product Price Trend : 2009-10

Region

Product
($ / MT)
Crude ($ / bbl) Dubai
MOPS
Naphtha
SEA
PP
SEA
HDPE
SEA
LLDPE
PVC
SEA
Source : Platts

Peak

Low Average

81
768
1345
1385
1450
1050

47
415
1015
1035
1045
665

70
623
1173
1202
1268
893

2009 was a year of recovery as prices moved up from the
cyclical trough of 2008. New capacity growth in Asia and
the Middle East, and a sluggish pace of economic recovery
could impact operating rates in the near future.
Traditionally new capacity creates intense competitive
pressure resulting in lower margins and closure of high-
cost assets. During the course of last year however, short
term supply outages played a meaningful role in helping
the margin environment. Price trends in 2010 are likely to
be driven by growth in processing capacity, ongoing
economic recovery and new supply initiatives.

Ethylene Scenario

Ethylene is the principal petrochemical building block and
a major feedstock for polymers. It is a raw material used in
the manufacture of polymers, like Polyethylene (PE),
polyester, Polyvinyl Chloride (PVC) and polystyrene, as
well as organic chemicals. These products are used in a
variety of industrial markets, such as packaging,
transportation, electronics, textile, construction, etc.

World Ethylene Supply / Demand : 2009

Production by Feedstock

Demand by End-Use

Production : 111 MMT

Demand : 110 MMT

Naphtha

Ethane

Propane

Butane

Others

Source : CMAI

49%

33%

Ethylene Oxide

EDC

EBZ

Others

61%

14%

11%

Ethylene from ethane is more prevalent in regions with
associated natural gas, like North America and the Middle
East while Naphtha is the major feed for ethylene
production in Europe and Asia.

North American crackers have high flexibility and choose
the most economic feed from the various options of Gas
oil, Naphtha, Butane, Propane and Ethane. During 2009,
Ethane remained the favoured feed and accounted for
~60% of ethylene production in USA.

In the Middle East, light hydrocarbons like Ethane account
for 86% of the raw materials for ethylene production.
Petrochemicals produced by Middle East oil-producing
countries are mainly bulk ethylene-based products, and
their PE and Mono Ethylene Glycol (MEG) products are
very competitive. Middle East producers dominate in
ethylene derivatives global trade owing to their
competitive cost position.

Global Ethylene Demand-Supply and Operating Rates

Source : Platts
Oversupply scenario in 2010 will lead to decline in global
Operating Rate ~ 80%
The world’s total ethylene consumption is expected to
reach 115 Million Tonnes (MMT) by the end of 2010 from
the current level of 110 MMT. Given new capacity
additions that are expected in the next six to twelve months,
operating rates are likely to be negatively impacted and
steadily improve thereafter.
The global recession has severely impacted demand
growth. This is in conjunction with significant capacity
addition that would have caused a ‘trough’ in the
petrochemical margin cycle even in the absence of the
recession.

Ethylene Capacity Addition by Regions : 2010-14

North East Asia
Middle East
South East Asia
Indian Subcontinent
CIS & Baltic States
West Europe
Source : CMAI

35%
34%
19%
14%
2%
1%

Reliance Industries Limited

2 9

Planned olefin capacity additions in the Middle East and
the Asian continent during 2009-2011 would substantially
change the supply scenario. The Middle East could
account for 40% of global ethylene capacity with Asia
contributing the rest. On the other hand, global ethylene
demand will vary significantly depending on end market
and geographic region.

Beyond 2010, this will lead to an oversupply situation
that will accelerate industry restructuring with extensive
shutdown and capacity rationalisation imminent in the
western world and other high-cost naphtha-based
operations.

Indian Chemical Industry
While most large economies have floundered since the
financial crisis, China and India have gone from strength
to strength. They remain two of the fast growing, most
high-profile economies in the world, creating enormous
opportunity.
In 2009, total ethylene capacity in India was estimated at 3
MMT. Approximately 58% of this is naphtha-based and
the rest is based on Ethane/Propane/Butane. All the
ethylene derivatives (PE, PVC, MEG) are currently in short
supply in the country and hence, are being imported.
Derivative supply pressure from the Middle East and the
start-up of new steam crackers in India, coupled with the
downturn in the global petrochemical industry are
expected to keep the ethylene margins very competitive
in India over the next five years.

Polymers (PP, PE, PVC)
Global commodity polymer consumption in 2009 was
estimated at 176 MMT almost 8% lower on a y-o-y basis.
Polypropylene (PP) is the single largest polymer segment
(25% of major thermoplastic demand), followed by PVC
with roughly 18% of the total plastics market. Combined
PE types represent almost 40% of total consumption. In
general, polyolefin (PE and PP) account for over 60% of
total commodity plastics consumption.

World Major Thermoplastics Demand : 2009
World Demand : 176 MMT

PP
PVC
HDPE
LLDPE
LDPE
PET
PS
ABS
PC
Source : CMAI

25%
18%
17%
11%
10%
8%
5%
4%
2%

These materials are used in a wide variety of applications
like agriculture, food packaging, automotive components,
appliances etc. Polyolefins continue to compete with
traditional materials like paper, metal, glass and wood, and
even act as substitutes for more expensive engineering
plastics.

The majority of polyolefin capacity additions between 2009
and 2014 will be in the Middle East, China and several
other Asian countries like Singapore, Thailand and India.
China alone will account for 44% of the polypropylene
and 34% of all polyethylene capacity additions globally.

Polyolefin industry plays an important role in economic
development, and is one of the fastest growing sectors
within the Indian economy.

While per capita polyethylene consumption in China is
approaching the global average of 30 kg, a large percentage
remains export driven rather than consumed domestically,
and understates China’s future growth potential. India’s
rapid economic growth over last few years has spurred
demand for a wide range of polyolefins. India has a low
per capita polyolefin consumption of 6 kg thus providing
ample growth opportunities.

RIL’s Production

RIL maintained its leadership in the domestic market with
a production share of 77%. Production during the year
ramped up registering a growth of 33% on a y-o-y basis.
Polymer Production in KT

Product
PP
PE
PVC

Total

FY 2009-10
2,399
1,068
624

FY 2008-09
1,466
996
614

4,091

3,076

Polypropylene (PP) Business

In 2009, global production capacity for PP was 55.5 MMT
and demand 44.4 MMT. Bulk of demand was accounted
for by raffia, films & sheet and injection moulded articles.
After decline in 2008, PP demand grew by 1.4% in 2009.
Despite the consumption growth, the operating rate
declined to 81% in 2009 from 85% in 2008 due to higher
capacity addition growth.

Inventory correction towards the end of 2008 resulted in
vigorous buying and buildup in 2009. Domestic demand
remained firm throughout the year with strong cumulative
growth across the quarters.

3 0

Think Growth. Think Transformation. Think Reliance.

RIL’s SEZ PP facility was successfully commissioned in
2009. This was followed by high operating performance,
well above the rated capacity. The additional production
was placed in domestic and export markets. The Middle
East has added 2 MMT of PP last year and will add another
1 MMT in 2010. The new capacities are expected to put
pressure on the operating rates globally.

With a high degree of integration with its refinery, RIL is
well placed on the feedstock front as compared to other
PP producers. The Company’s focus on specialty grades,
higher realisation, and capturing value through chain
optimisation would help its PP business retain global
leadership position.

After seeing a flat growth in 2008, the domestic PP demand
witnessed strong growth at 21% with RIL witnessing 29%
growth in volumes. Almost all the end sectors like
packaging, durables, automotive and industrial
applications helped the industry achieve such growth
numbers.

Key end-use segments in packaging are bulk packaging
for cement, food grains and chemical packaging. The bulk
packaging segment got a fillip for food grain packaging.
Flexible packaging growth is mainly driven by BOPP for
packaging of snack food and garments, while rigid
packaging sector growth depends on a wide variety of
end users from processed food industry, FMCG products,
agriculture and fisheries.

The automotive sector is also a large PP consumer.
Additionally, major applications of PP in the durable sector
are in washing machines, refrigerators, mixer grinders, air
conditioners etc. With thrust on infrastructure
development and organised retail, growth in demand for
PP in the Indian market is expected to continue. PP non-
woven is also a promising area of growth.

With the commissioning of the Jamnagar SEZ PP plants,
RIL is the 5th largest producer globally and is well
positioned to take advantage of the fast growing domestic
market.

Being consistent with its overall growth strategy, RIL has
moved rapidly to seize most of the existing opportunities.
This has been done by identifying and developing new
applications, import substitution through new grades and
replacement of conventional materials to increase
consumption in the domestic market. Although mainly
domestic oriented, RIL also exported products to Asia.

PP: New Grades/Modifications

RIL has a wide Repol grade basket catering to almost all
key sectors. With a view to capitalise on new opportunities,
RIL introduced four new grades during the year in
Homopolymer and Impact Copolymer segments. Repol
Impact Copolymer grades have been specified by major
customers for automobile (Bumper/Trims Battery etc.) and
appliance sectors. Repol Random Copolymers have been
specified by FMCG companies for packaging of malted/
beverage products.

Raffia and BOPP customers are able to run their lines at
globally competitive speeds with Repol grades. These are
significant product attributes offered by very few global
suppliers of PP. Apart from the traditional segments, RIL
has also tapped the non-conventional segments like geo-
synthetics and medical applications.

(cid:2) At Hazira, Polypropylene Plant Line B had been
successfully modified to produce the ICP grades.

(cid:2)

RIL has introduced a new grade Repol SS80N at
Nagothane for cast film application. Repol SS80N is
recommended for use as a core layer in coextruded
cast film in both metallisable and non-metallisable
applications.

(cid:2) High crystalline Impact Copolymer grade Repol
B300MN was introduced at Hazira for automotive
compounding to curtail imports.

Polyethylene (PE) Business

Polyethylene continues to be the largest consumed
commodity plastic. Global capacity was 84 MMT and
consumption was 66 MMT in 2009. Operating rates
declined to 80% in 2009 as against 83% in 2008 due to
supply pressure from new start-ups in the Middle East.

Asia continues to lead in demand growth as well as on
capacity creation. Nearly 20 MMT of new PE capacity
over next five years (2010-14) is expected across the globe.
The Middle East is adding bulk of the new capacity
followed by addition in North East and South East Asia.
4.4 MMT of capacity has been added in 2009 and an
additional 7.7 MMT of capacity is planned for 2010.

PE is widely used in packaging applications in the form of
films and sheets followed by injection moulding, blow
moulding and pipes. Bulk of LDPE and LLDPE is used for
film applications whereas HDPE is used in blow moulded
containers and pipes.

Reliance Industries Limited

3 1

In India, HDPE/LLDPE industry registered y-o-y growth
of 7%. There was a 71% rise in imports of HDPE/LLDPE.
RIL registered a growth of 9%. LDPE demand grew by
14%. LDPE imports rose by 34%.

PE: New Grades/Modifications

(cid:2)

RIL received certification for PE: 100 Orange
Compound for Gas Pipes from M/s Exova, Sweden.
Earlier, RIL got certifications from Bodycote for PE 80
Yellow, PE 80 Black and PE 100 Black made from PE
Pipe Grades Relene 45GP004 and Relene 46GP003
respectively. The certification allows use of RIL
grades for production of gas pipes for both domestic
and industrial gas distribution. RIL is the only Indian
manufacturer and the 4th in the world among 440
worldwide PE producers to have the coveted
certificates for coloured PE Pipe Compounds.
RIL has introduced general purpose blow moulding
grade Relene B56003 from the Gandhar plant to
leverage its technological virtues in terms of bimodal
molecular weight distribution, better melt strength &
melt swell, ESCR, weld-line strength and zero
contamination.
RIL has modified the Resin specification/additive
recipe for Relene LL24FA030 for medium voltage cross-
linked cable insulation application and Relene
53EA010 for tarpaulins and wrapping fabrics.
RIL had successfully sifted and commissioned EVA
lines at the Gandhar site. Relene EVA1802 has been
introduced.

Polyvinyl Chloride (PVC) Business

In 2009, demand for PVC globally dropped by 0.9% to 32.4
MMT. Operating rate fell to 72% due to diminished demand.
The demand reduction is associated with global recession,
and represents the second y-o-y reduction since 2007.
Global per capita demand is expected to decline for the
second time in a row from 5.33 kg to 4.77 kg.

Global PVC capacity stood at 45 MMT, and is expected to
reach 49 MMT over the next 5 years. Around 1.5 MMT of
capacity was added in 2009. Global operating rate is likely
to dip further next year as new capacities come on stream.

PVC consumption in India was 1.8 MMT in FY 2009-10,
which represents a growth of 27% over the previous year.
Pipes and fittings continued to be the major market
accounting for 74% of domestic PVC demand.

PVC is a major product for the infrastructure sector.
Irrigation pipes, drinking water supply, various sewerage
applications, profiles for building industry, wire and cable,
etc require PVC. This has resulted in significant demand
growth for PVC in the infrastructure sector. With increasing
emphasis and higher budgetary outlays for infrastructure
and housing as well as health and hygiene, PVC
consumption is expected to grow in the coming years.

PVC: New Grades/Modifications

(cid:2)

Reon PVC K6701 has achieved Long Term Hydrostatic
Strength (LTHS) testing for 10,000 hours and has been
given a permanent listing by NSF International USA
and Plastic Pipe Products, USA.

(cid:2) Modified grade of Reon K6701 has been established
for low gel/fisheye applications like shrink film/cling
and lamination films.

(cid:2)

Solar panel frames designed and developed in PVC
are being used as a cost effective replacement for
aluminum frames.

(cid:2) High impact, weather resistant PVC profile compound
has been developed for use in windmill blades.

Chemicals Business

Reliance’s crackers at Hazira, Nagothane, Dahej and
Vadodara are among the world’s most integrated complexes
with downstream chemical facilities. These facilities can
use a variety of feedstock, including naphtha, natural gas
liquids and other petroleum feedstock. Reliance is a leading
producer of Linear Alkyl Benzene (LAB) and Butadiene in
India. RIL also produces basic aromatic building blocks
of the highest purity, conforming to the product grades.
These include benzene, toluene, mixed-xylene and ortho-
xylene. The diverse end-use sectors of these products
range from nylon, unsaturated polyester resins,
polyurethanes, oil field chemicals to food acids.

Benzene

The global Benzene production and demand for
FY 2009-10 was about 37 MMT as against a capacity of 58
MMT resulting in an average operating rate of 64%. This
was mainly due to lower operating rates of naphtha
crackers (accounting for 38% of Benzene production) and
of refineries (accounting for 40% of production).

Ethyl Benzene remains the major end-use of Benzene,
followed by Cumene, Cyclohexane and Nitrobenzene,
respectively. Each of the Benzene derivatives has its own
value chain like Ethyl Benzene-Styrene-Polystyrene,

3 2

Think Growth. Think Transformation. Think Reliance.

Cumene-Phenol-BPA-Polycarbonate, and Cyclohexane-
Caprolactam-Nylon etc.

For the year, RIL produced 673 KT of Benzene, a growth
of 1.9% on a y-o-y basis. Despite being a large exporter,
RIL has also retained a domestic market share of 47%. The
Indian market is dominated by Cyclohexane-Caprolactam,
LAB, Nitrobenzene and Chlorobenzene sectors.

During FY 2009-10, RIL exported 404 KT of Benzene to
deficit areas like the US, Europe, the Middle East and Asia.
RIL had improved its netback by enhancing exports to the
Middle East in 2009.

Polybutadiene Rubber (PBR)
Polybutadiene Rubber is the second largest synthetic
rubber with an annual global consumption of 2.2 MMT.
PBR is used widely in tyres, tread rubber, conveyor belts,
footwear, sports goods, automotive products etc. Global
demand for synthetic rubber in the coming years is expected
to grow at 4% annually, mainly due to faster recovery in
the economy and rapid growth of the automobile sector in
India and China. India’s current consumption of PBR is
131 KT and is likely to reach 148 KT by 2013 on the back
of capacity enhancement plans announced. RIL is the only
manufacturer of PBR in India with production of 73 KT for
the year.

Butadiene

Butadiene global demand is around 9.4 MMT.
Approximately 49% of the total demand is from the Asian
region, followed by 26% from USA and 21% from Europe.
Indian demand is comparatively low at 108 KTA.

Overall demand from downstream industries (which
includes products like Styrene Butadiene Rubber,
Polybutadiene Rubber, Acrylonitrile Butadiene Styrene
and Styrene Butadiene latex and Adiponitrile) was growing
at 3.4% till October 2008. Due to the financial crisis, the
auto market suffered a major collapse leading to sharp
drop in all elastomer prices. FY 2009-10 has been a year of
economic recovery with no appreciable growth in the
demand for elastomers. During FY 2009-10, butadiene
production increased by 10% to 178 KT as against
FY 2008-09.

Chlor Alkali
Our chlor alkali capacity consists of 168 KTA of caustic
soda and 141 KTA of chlorine capacity. While the chlorine
is captively consumed in the manufacturing of ethylene
di-chloride, caustic soda which is an alkali of choice in a
wide range of applications is sold by the Company.

The global consumption of caustic soda was 64 MMT
during FY 2009-10, a y-o-y decline of 5%. The operating
rates averaged at 77%.

China increased its chlor alkali capacity to 27 MMT during
2009. With these capacity additions, nearly 55% of the
global chlor alkali capacity has now shifted to Asia. The
developed world (USA, Europe and Japan) accounts for
35% of the global installed capacity of 79 MMT.

Main consuming sectors of caustic soda, viz., alumina,
pulp, textiles and chemicals have declined by nearly 15-
20% in the developed world during the first three quarters
of the financial year. Domestic capacity has increased to
3.2 MMT by March 2010. Consumption of caustic soda in
India grew 13% to 2.6 MMT over FY 2008-09. Demand
from alumina, textiles, fibre and water treatment sectors
grew robustly over FY 2008-09. However, a weaker global
market of chlorine derivatives and a weak monsoon
affected the demand for chlorine derivatives in India.

During FY 2009-10, RIL installed new membranes in its
chlor alkali plant, and also successfully commissioned an
exclusive pipeline to transfer and load caustic soda into
ocean going vessels from the connecting jetty. This has
reduced the logistical cost of exports as well as the coastal
movement of caustic soda for RIL. The Company
maintained its market share of 6% in the domestic market.

Linear Alkyl Benzene (LAB)

LAB is a key detergent intermediate and is manufactured
from Normal Paraffin (NP) and Benzene. LAB is used to
manufacture Linear Alkyl Benzene Sulfonic Acid (LABSA),
a main active element which provides cleaning power in
synthetic detergents.

In India, most detergents incorporate LAB as the surfactant
intermediate of choice. Per capita consumption of
synthetic detergent penetration is less than 10% of the
Western world indicating large growth potential for LAB
in the long term. Growth in the use of synthetic detergents
in India is expected to follow the GDP growth rate in the
coming years. LAB growth is expected to follow suit.

Global LAB consumption continues to grow steadily with
growth coming mainly from developing regions, which
augurs well for the future potential of RIL’s LAB plant.
The present global LAB consumption level is 3 MMT as
against an installed capacity of 3.45 MMT p.a.
India is a net exporter of LAB with production outstripping
demand by a wide margin. RIL has the world’s 5th largest
LAB capacity (182 KT), with a 24% domestic market share.

Reliance Industries Limited

3 3

(cid:2) Development of beta-nucleated high performance

RCP pipe grade PP

Technology Absorption, Adoption and Innovation

Efforts, in brief, made towards technology absorption,
adoption and innovation are as follows:

(cid:2)

Innovation in Catalyst system for production of
polypropylene and polyethylene grades
Innovation in Catalyst and Catalyst Precursor for
Polymer technology
Innovation in Plastic Processing technology to obtain
high performance products

Polyester Fibre and Filament

In line with GDP growth following a period of slowdown
in 2008, global textile consumption has steadily improved.
In 2009, textile demand showed signs of gathering
momentum and registered a marginal growth of 0.2%,
against a drop of 6% in 2008. The primary consuming
economy, USA too gradually recovered and the decline in
imports of textile and apparel products eased from double
digit declines to single digit in the last three months of
2009; but cumulative volumes still are below last year
figures by 13%. Polyester demand for textile applications
during 2009 increased 3.4% to 32.4 MMT; staple fibre
demand increased by 2.5% to 12.4 MMT while filament
demand increased by 4% to 20.0 MMT. The textile demand
for the next five years is expected to grow at more than 3%
CAGR, with polyester growing at a faster rate than any
other fibre.

Polyester is expected to grow at 4% to garner 50% of the
total fibre demand from the current 46% during the same
period. The growth is expected to be skewed towards
filament yarn, with growth of 5 MMT to 25 MMT, while
staple fibre is expected to grow by 3 MMT to 16 MMT.

Global Polyester Capacity

RIL’s production increased to 163 KT from 151 KT in
FY 2008-09. FY 2009-10 was a challenging year for RIL’s
LAB business. In the beginning of the year, prices were
under tremendous pressure as a result of lower demand
due to global recession, as well as dumping by Middle
East producers to liquidate their inventories. Demand is
improving and both LAB units at Patalganga and Vadodara
have improved operating rates.

Research and Development (R&D), Technology
Development and Innovation

RIL has achieved market leadership through innovation
in products, processes and cost competitiveness. Reliance
Polymers is working on developing strategic technology
for high performance Polyolefin products such as BOPP
and Impact Polypropylene through innovation in catalyst
systems.

The Intellectual Property Right (IPR) has been filed in the
area of Polypropylene in addition to the assignment of 3
Patent Cooperation Treaty (PCT). 2 Indian trade mark
applications for Catalyst System and Process for
Polyolefins have also been filed. RIL has been awarded
the Arch of Excellence and the Rashtriya Ratan Award
during the year for achieving technological excellence.

Specific areas in which the research and development is
being carried out by the Company are as follows:

(cid:2)

Polyolefin Catalyst Precursor development

(cid:2) Advanced Injection Moulding Homo PP grade

development
BOPP and ICP grades of Polypropylene development
(cid:2) HDPE grades development using in-house developed

(cid:2)

Mg–Ti catalyst system
Bimodal HDPE pipe grade development – suitable for
high pressure gas distribution application. This is also
certified by an independent international certifying
agency.
Catalyst ligands development for production of
Disentangled Ultra-High Molecular Weigh
Polyethylene (D-UHMWPE)

(cid:2) High Melt Strength (HMS) grades development of
Polypropylene for enhancing the application spectrum
up to the engineering plastic performance

(cid:2) Development of understanding of grade design of
BOPP grades of Polypropylene for higher line speeds
(cid:2) Development of cost effective material alternatives

for solar modules

(cid:2) Development of dual purpose additives for

Polypropylene

Source : PCI

3 4

Think Growth. Think Transformation. Think Reliance.

Though the global economy has started to show signs of
improvement, corporate restructuring activities continue
with several capacities in high cost centres of USA and
EU being either shut down or shifted to low cost regions,
especially Asia. Further more, during the next 5 years,
there would be polyester capacity addition of 11 MMT
with the majority of them in the Asian region with China
accounting for the largest pie.

Polyester staple fibre markets would witness demand
growth faster than capacity addition, thus favouring
healthy operating rates. However, surplus polyester
filament yarn capacity addition that happened in the last
few years would keep operating rates subdued. From next
year, polyester filament yarn operating rates are expected
to be steady.

The year started on a soft note and as news of economic
recovery emerged, prices of feedstock gradually improved
but witnessed volatility in the latter part of the year. During
the year, Paraxylene (PX) prices marked a high of $ 1200/
MT and a low of $ 845/MT, PTA fluctuated between $ 970/
MT and $ 780/MT while MEG witnessed major volatility
between $ 1040/MT and $ 525/MT. Though the polyester
demand improved during the year, buying by the
downstream textile industry remained need based and
cautiously placed to eliminate stock losses. Consequently,
polyester prices could not match up with the spike in
feedstock prices and thus had to absorb price hikes during
volatile periods. This impacted standalone polyester
manufacturers and RIL being an integrated polyester
producer was able to protect chain margins despite the
chain volatility.

Polyethylene Terephthalate (PET)

PET resin caters to a non-textile application i.e. packaging.
This is the fastest growing polyester application, growing
at a rate of 7% CAGR for the last 5 years. PET markets too
had borne the brunt of the global economic slump and
market growth slowed to 3.4% in 2009. PET resin market is
expected to grow at 7.5% during the next year on stronger
economic growth.

The industry has experienced a major consolidation drive
especially in developed countries. Apart from this
structural change, light-weighting continues to be
prevalent, mostly in the developed world.

As a consequence of the dip in feedstock costs during
the economic slowdown, PET resin prices too remained
lower during the earlier part of the year, but gradually

increased thereafter and ranged between $ 985/MT to $
1300/MT during the year. However, due to surplus capacity
and volatility in intermediate margins, PET margins
remained under pressure.

Fibre Intermediates

Due to excessive capacity addition, market players
expected an overflowing supply of PX, PTA and MEG
while on the contrary; markets remained in tight supply
for most part of the year.

Many PX plants planned across the globe either got
delayed or faced scarcity of feedstock preventing on
production and timely supply. The tight supply in the
market caused prices to firm and averaged above $ 1000/
MT during the year. As reported by PCI, a leading
polyester chain market consultant, markets are expected
to witness further capacity addition of 3 MMT during
2010, much in excess of demand growth. However, over
the coming years, capacity growth is expected to slow
down and support the improvement of operating rates.

PTA operations too during the year were hampered due to
short supply of feedstock PX, consequently tightening
the market of immediate requirements. As a result of the
strong demand and tight supply in the markets, prices
remained strong. Average prices during the year were $
886/MT and margins over PX remained firm. In the coming
year, capacity addition of 2 MMT is expected to come
online while demand growth is expected to be at 2.3 MMT.

MEG operations at the major producing hub Middle East
remained interrupted by unexpected shutdowns. Markets
as a result witnessed significant and uneven price
movements. Prices ranged between $ 525/MT and $ 1,040/
MT, firming significantly in the latter part of the year.
Estimates suggest that capacity growth in the next few
years would slow down, thus easing the excess supply
scenario.

Domestic Scenario

2009 witnessed the Indian textile industry recovering from
the slowdown with strong domestic consumption and
renewed export demand.

Earlier, the textile industry, which is a major contributor to
export earnings, had encountered global economic
slowdown shocks. Exports registered month-on-month
negative growth for most part of 2009. However, strong
domestic markets and timely government intervention
helped the Indian textile industry to overcome the
slowdown effect.

Reliance Industries Limited

3 5

Proactively right from the end of 2008, the Government
announced a series of stimulus packages to support the
export community. The Foreign Trade Policy 2009-2014
also featured some relief measures including addition of
26 new markets in the Focus Market Scheme (FMS) in
Latin America and Asia–Oceania for promotion of exports.
This is expected to further boost textile exports from India.
Technical textiles and synthetic textile fabrics were also
included in various incentive schemes. Recently, the
Government has further extended the interest subvention
of 2% till March 2011 to help exporters reduce interest
costs.

Textile exports started recovering from the end of 2009
onwards. As per CRISIL, the recovery was relatively faster
in man-made fibre based textiles as its export dependency
is around 30% compared to 42% in the case of the cotton
textile industry. Polyester, being the largest man-made fibre
based textile industry benefited the maximum in this surge
in exports.

The demand for polyester products grew by around 15%
in FY 2009-10. The growth momentum is led by PET with
26%, followed by Polyester Filament Yarn (PFY) at 14%
and Polyester Staple Fibre (PSF) at 12%.

PSF demand also got a boost from the firmness in cotton
fibre prices. Cotton prices have continued to rise from
October 2009 onwards and presently. Cotton fibre prices
are up 33% y-o-y. This led to fibre substitution in favour
of polyester and hence, supported demand.

Operations at some major textile production centres were
affected during the year due to power supply disruptions.
This led to lower operating rates or partial shutdown of
some textile mills.

In order to achieve better cost economics, many polyester
texturisers implemented backward integration to produce
polyester yarn during the year and commissioned new
polymerisation plants. This is expected to continue in the
coming years as well.

Among other developments, the Government of India
partially rolled back stimulus packages, by raising the
excise duty on polyester from 4% to 8% in July 2009 and
increased it by another 2% on polyester and feedstock
alike in the Union Budget 2010-11, thus bringing them at a
uniform rate of 10%. However, the downstream textile
industry continues to enjoy the option of not being in the
excise net.

The investments in the downstream textile industry like
new textile parks are further expected to boost the demand.
The much awaited new fibre policy is expected to provide
a level playing field to man-made fibres vis-à-vis natural
fibres. Moreover, the grant of Rs. 200 crore to establish a
zero liquid discharge system at Tirupur in Tamil Nadu is
an effort by the Government to sustain the textile hubs.
These measures are expected to increase textile
investments in the days to come.

As per CRISIL estimates, the domestic textile market (ready-
made garments and home textiles) is expected to grow at a
CAGR of 6-7% between FY 2008-09 and FY 2013-14. Rising
income levels and increased growth in rural spending on
textile products will translate into growth in domestic
demand for fabric.

The main demand drivers for textile growth are as follows:

1. Rising overall personal income levels
2.
3.

Projected higher spending on textiles in rural areas
Increased non-apparel applications like home
furnishing and technical textiles

One notable feature is that in terms of per capita fibre
consumption, India still lags behind, which in a way,
indicates the huge potential which can be tapped. Global
all fibre per capita final consumer demand in 2010 is at 10.4
kg, while that of India is at 5 kg. In comparison, per capita
consumption in China is at 16, North America is 31 kg and
West Europe is at 22 kg.

PFY is expected to lead the domestic demand growth in
the overall textile chain. Current domestic demand is
around 1.9 MMT (up 14% over FY 2008-09), of which RIL’s
share is around 32%. Current PSF domestic demand is
around 0.8 MMT (up 12% over FY 2008-09), of which RIL’s
share is around 65%.

PET, which is one of the fastest growing segments in
polyester, currently has a demand of around 0.34 MMT in
India, with RIL catering to approximately half of the
demand. The current per capita PET consumption in India
is very low at approximately 0.3 kg compared to the world
average of over 2 kg. There is immense scope to enhance
its usage in providing efficient and economic packaging
solutions.

In case of the domestic feedstock scenario, the polyester
industry faced shortage of PTA in 2009, mainly on account
of delay of new capacity and the increased demand due to
backward integration by texturisers. The current PTA
demand is 3.3 MMT.

3 6

Think Growth. Think Transformation. Think Reliance.

MEG market remained in short supply and the deficit was
met by imports. Current domestic demand is around 1.4
MMT.

PX domestic consumption in FY 2009-10 is around 2.0
MMT.

RIL’s Performance

RIL continues to hold top rankings in the polyester and
feedstock arenas. Total polyester capacity is around 2.4
MMT including PET.

The Company is the world’s largest producer of polyester
staple fibre and filament yarn with a capacity of around 2
MMT. Besides, in case of feedstock, it ranks 4th in PX, 7th
in PTA and 7th in MEG, as per PCI.

Production volumes of polyester increased by 9% over
FY 2008-09 to 1,666 KT. PFY production increased by 12%
while PSF and PET increased by 7% and 5% respectively.

RIL’s overall domestic market share in polyester is around
43% including PET. RIL has a deep focus on speciality
products and currently, its differentiated product sales in
PFY are at 41% and in PSF at 58%.

Polyester Production in KT

Product
PFY
PSF
PET
Total

FY 2009-10
724
597
345
1,666

FY 2008-09
646
559
329
1,534

In case of fibre intermediates, total production (PX, PTA
and MEG) is at 4,619 KT in FY 2009-10, up 1.0% over
FY 2008-09. PTA production is up by 3.6% while MEG
production is down by 4.2% to optimise ethylene oxide
production.

Fibre Intermediates Production in KT

Product
PX
PTA
MEG
Total

FY 2009-10
1,875
2,049
695
4,619

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

RIL is constantly improving operations and innovating
new products for better margins. During the year, RIL
optimised operations and costs at various plants either
through substitution of products or improvement of
existing processes. These steps resulted in reduction in
costs.

During the year, RIL introduced high margin flame
retardant fibres to improve performance of textiles in a
safe and secure environment. RIL also launched stretch
textured yarns and anti-microbial yarns with superior
functionality. Under sleep products category, after
successfully establishing its national presence in pillows,
RIL launched quilts this year. Within a year of its launch,
the product has been well accepted by the markets.

RIL strives to have a better tomorrow with a cleaner and
greener environment. In this regard, RIL launched
speciality fibres that uses post-consumer bottles and
industrial waste for production of pre-coloured products.
This segment predominantly caters to production of fibres
for speciality defence uniforms. Apart from consuming
used bottles, these fibres are also pre-coloured and do
not need water for dyeing.

This year RIL also launched Recrobulk fibres from recycled
material. This is a speciality fibre used for manufacturing
of winter wear. RIL is also planning to launch more such
environmental friendly products.

Recron Malaysia

Reliance acquired assets of Hualon Malaysia in 2008.
These assets underwent substantial improvement in order
to integrate them into Reliance operations and product
quality.

Most of Recron’s manufacturing facilities operated at close
to 100% capacity utilisation despite the global crisis.
Several new products, processes and applications were
introduced to garner new markets and downstream
opportunities. Focus was also to ensure higher efficiency
in inventory management and raw material procurement.

Reliance Solar

The solar energy initiative of Reliance aims to bring solar
energy systems and solutions primarily to remote and rural
areas in India and bring about a transformation in the
quality of life. As part of this initiative, Reliance Solar is
developing and offering a range of products, systems and
solutions- from solar lanterns, home lighting systems,
street lighting systems, water purification systems,
refrigeration systems to solar air conditioners based on
solar energy. These products, systems and solutions are
part of the downstream component of the solar value chain.

Reliance Solar group has built large scale MWp level solar
PV plant and is under process of building more such plants
thus providing energy security to energy dependent

Reliance Industries Limited

3 7

domains and businesses and also bridging energy gap in
energy deficient areas. It has also installed and
commissioned South-Asia’s largest rooftop plant of 1 MW
at Thyagaraj Stadium, Delhi in just 3 months. Reliance
Solar also received the IEC - TUV certification for higher
modules in May 2009.

Opportunities

RIL is a unique combination of a play on global economic
recovery through its refining and petrochemical
businesses, and participation in India’s robust domestic
consumption story through its oil and gas and retail
businesses. RIL has a proven track record of best-in-class
project execution, creating world class assets, achieving
economies of scale, use of contemporary technology and
above all, financial discipline.

Natural gas production from the KG-D6 block has
stabilised at around 60 MMSCMD. Earnings from this
block will continue to be a significant contributor to RIL’s
overall cash flows over the next few years. RIL’s next leg
of growth would be led by aggressive exploration,
development and appraisal of its existing discoveries and
possible inorganic acquisitions. Today, RIL has significant
growth opportunity in the domestic E&P sector,
considering its asset portfolio and proven execution
capabilities. Natural gas continues to be a key component
of India’s energy basket and meets 9% of its total energy
requirement. 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.

While demand for petroleum products is expected to
improve marginally over the next two years to around 87
MBPD, capacity addition is expected to grow faster than
demand growth. New capacity additions have already
pressurised the utilisation rates over the last two years,
leading to shut-downs to adjust the demand-supply
balance. This adjustment would lead to average world
refining operating rates to move up marginally to 86%
from the current 85% by 2012 (Source: Oil and Gas
Journal). This can lead to normalisation of GRMs to a
certain extent, and a possible increase in Singapore regional
benchmarks.

RIL’s exposure to the refining business has increased
following the commissioning of the SEZ refinery.

Expansion in GRMs will have a meaningful impact on the
profitability of the company. RIL, with its high complex
refining capacity of 1.24 MBPD at Jamnagar, is poised to
benefit from the global economic turnaround. The
Company’s superior operational efficiency vis-à-vis
international peer group augurs well with global economic
recovery.

In the petrochemicals business, RIL’s operating levels have
remained consistently near 100% throughout the entire
down cycle over the last 4-6 quarters, led by strong
domestic demand. Domestic demand has seen a strong
resurgent growth across the industry, led by increasing
investments in infrastructure. Additionally, product cracks
for RIL have been strong, led by integrated nature of
operations. The overall Indian polymer industry has grown
at 1.5-2 times the GDP growth rate. Among its peers, RIL
would continue to earn superior returns on account of its
fully-integrated operations and robust domestic demand.
RIL is expected to be a dominant player in the domestic
petrochemical industry.

Challenges, Risks and Concerns

Last year, one of the biggest challenges for the Company
was to complete its two large projects on time and within
budget. The upstream project KG-D6 had a very safe and
reliable start-up and the gas production ramp-up has been
progressing well. The new refinery at Jamnagar has also
seen flawless start-up and achieved more than 100%
utilisation rate in a record time.

KG-D6 is the world’s largest gas producing deepwater
facility. It is also located in the East coast of India, a region
known for strong monsoons and tough water conditions.
The challenge for the Company is to ensure optimum level
of production, a safe and steady ramp up towards
achieving plateau level of production and 365 days of
uninterrupted operations; while mandating the highest
levels of heath, safety and utmost care for the
environment.

The refining and marketing industry is highly competitive
with respect to both feedstock supply and refined product
markets. RIL competes internationally for supplies of crude
oil and other feedstock and for outlets for its refined
products. Competitors that have their own production or
extensive retail outlets are at times able to offset losses
from refining operations with profits from producing or
retailing operations, and may be better positioned to
withstand periods of depressed refining margins or

3 8

Think Growth. Think Transformation. Think Reliance.

feedstock shortages. However, RIL can compete
effectively with its low cost operations, high complexity
and ability to produce and place high quality products in
world markets. Prices and margins of petroleum products
are likely to be volatile due to demand concerns in the
OECD markets and new supply.

Over the next 2-3 years, a large number of new low-cost
ethylene capacities are expected to be added in the Middle
East region, which may pressurise cracker margins. Asia
is expected to add some incremental capacity over the
same period, further pressurising cracker margins. These
capacity additions will be partially offset by the closure of
inefficient capacities in developed regions, especially
North America and Europe. Operating rates are critical for
profitability in the petrochemicals business. On the back
of strong domestic market growth, RIL has been able to
maintain very high operating rates through the cycle. The
purchased feedstock and energy costs account for a
substantial portion of the Company’s total production cost
and operating expenses. Volatility in these costs could
have an impact on the profitability of the petrochemicals
business.

The Company competes worldwide on the basis of
integrated operations, quality, price, technology and
customer service. RIL’s large exports, which constitute
55% of its turnover, give rise to market risk exposure related
to change in foreign exchange rates, interest rates,
commodity prices and other market factors.

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’s accounting process is based on uniform
accounting guideline that sets out accounting policies
and significant processes and deadlines on a company
wide basis. There are binding directives for internal
reconciliations and other accounting operations. 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 laws and
regulations.

RIL has well established policy towards maintaining the
highest standards of health, safety and environmental
norms while maintaining operational integrity. This policy
is strictly adhered to all RIL manufacturing facilities.

The Company has an internal audit function, which is
empowered to examine the adequacy and compliance with
policies, plans and statutory requirements. It is also
responsible for assessing and improving the effectiveness
of risk management, control and governance process.

The management 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

In the last year, Reliance Retail Limited (RRL) continued
to fulfill its commitment of enriching Indian consumer’s
shopping experience and providing quality merchandise
at an attractive value proposition. More than 3 years into
operation, RRL has now expanded its presence in more
than 85 cities across 14 states in India. RRL forged ahead
with its expansion plans and rolled out stores across the
country. RRL’s footprint now spans a network of more
than 1,000 stores.

RRL operates several ‘value’ & ‘specialty’ formats. The
‘value’ formats that RRL operates are: ‘Reliance Fresh’, a
neighborhood concept, ‘Reliance Mart’, an all under one
roof supermarket concept & ‘Reliance Super’, a mini-mart
concept. The ‘value’ formats offer a wide range and
assortment of products required for daily household needs.
The ‘specialty’ formats are: ‘Reliance Digital’, a consumer
durables & information technology concept, ‘Reliance
Trends’, an apparel & accessories concept, ‘Reliance
Wellness’, a health, wellness & beauty concept, ‘iStore
by Reliance Digital’, an exclusive Apple products concept,
‘Reliance Footprint’, a footwear concept, ‘Reliance
Jewels’, a jewellery concept, ‘Reliance TimeOut’, a books,
music & entertainment concept, ‘Reliance AutoZone’, an
automotive products & services concept and ‘Reliance
Living’, a homeware, furniture, modular kitchens,
furnishings concept.

RRL rapidly expanded the stores network it operates
through strategic partnerships with world-class companies
such as Marks & Spencer and Pearl Europe. RRL also
entered into an exclusive distribution arrangement with
Asics Corporation Japan to market Asics brands of shoes

Reliance Industries Limited

3 9

is helping create enhanced value delivery by leveraging
all the skills and competencies, and creating new
opportunities at the interfaces. RTG continues to get
external perspectives from members of the Reliance
Innovation Council (RIC).

Key objectives of RTG are as follows:

(cid:2) Develop fit-for-purpose and sustainable technology

(cid:2)

and its application.
Provide effective project support and assurance to
manufacturing plants and businesses.
Provide technical assurance to projects including
technology selection and absorption.
Proactively identify and support technical
opportunities to add value across RIL’s businesses.
(cid:2) Develop technology strategies suited to create

(cid:2)

business growth and offset threats.
Balance technology sourcing by a flexible strategy of
smart buying, fast customisation and flagship
development of key technologies.
Exploit synergies cutting across technologies/
disciplines.
Improve technical productivity on a continuous basis.
(cid:2) Develop / recruit staff with skills and motivation to

(cid:2)

meet current and future business needs.
Create a fit-for-purpose process centric organisation.
Ensure long term technical health of RIL businesses.
(cid:2) Manage technology and Intellectual Property (IP)

(cid:2)

assets for the Company.

RTG continues to support improvements in manufacturing
operations, e.g., through the implementation of advanced
process control.

In refining R&D, the major technology focus is on
maximising desired product yields from Fluidised Catalytic
Cracker (FCC), enhancing recovery of higher value
products from distilling units, and on increasing efficiency
and reliability of refinery processes by using advanced
tools, e.g., computational fluid dynamics. Efforts are also
under way to develop new processes to widen operating
window for crude processing.

In the petrochemicals area, RTG is providing technology
support to olefin crackers, polymers, fibre intermediates,
Linear Alkyl Benzene (LAB) and polyester. In the polymers
area, RTG is working on strategic technology for high
performance polyolefin products such as Biaxially
Oriented Polypropylene (BOPP) and Impact Polypropylene

and accessories in India. RRL has recently opened its
flagship store under its franchise agreement with Hamleys
and plans to expand the store network in the coming year.
RRL has also expanded its presence in business-to-
business office supplies through its joint venture with
Office Depot.

Through ‘Reliance One’, RRL’s loyalty membership
program, RRL enjoys the patronage of over 5.5 million
customers.

In the coming year, RRL will continue on its mission to
delight the customers every visit. RRL will continue to
provide unprecedented value to customers across all its
formats and stores.

Haryana Special Economic Zone (SEZ)

With a vision to develop industrial infrastructure and
support economic growth, RIL embarked on a mega project
with the support of the Government of Haryana and
Haryana State Industrial Investment Development
Corporation (HSIIDC) and established Reliance Haryana
SEZ Limited. This is a joint venture between Reliance
Venture Limited (a subsidiary of RIL) and HSIIDC Limited
(a Government of Haryana company), to establish a large
scale fully integrated economic enclave as a SEZ.

To achieve its vision, the Company purchased about 9,600
acres of land and has also obtained various approvals
from both the Government of Haryana as well as the
Government of India to establish the SEZ enclaves.

The Company is seeking approval from the Government
of Haryana to undertake flexible development of the project
as an integrated industrial enclave with all the requisite
facilities such as logistics hubs and other infrastructure
ensuring sustainable development of medium and large
scale industries and service activities with sufficient
provision for future growth and expansion.

The Company may bring in a strategic investor to help
maximise the potential of the investments made so far and
make it a truly global investment destination.

Research & Development, Technology Development And
Innovation

Research & Development (R&D), Technology
Development and Innovation continues to be an integral
part of RIL’s agenda for achieving growth, business
profitability, sustainability and rural transformation. The
Reliance Technology Group (RTG), created by
consolidating various research and technology functions

4 0

Think Growth. Think Transformation. Think Reliance.

through innovation in catalyst systems.

is also working on

RTG
the development/
commercialisation of new products e.g., oxygen barrier
polyester resin for packaging, material for fruits/vegetables
preservation and low cost Antimicrobial Polyester. In
addition, RTG is working on emerging technologies such
as fuel cells, carbon fibres, bio-fuels and gasification of
various feedstocks.

Some major ongoing/completed projects include:
(cid:2) Maximising light olefins yields.

(cid:2)

Expansion of testing and pilot plant facilities in
refining.
Technology development to process cheaper and
heavier crudes.
Computational Fluid Dynamics (CFD) studies for
trouble shooting.

(cid:2) Molecular modeling in blending and feed

characterisation.

(cid:2) Value addition by upgrading of coker streams.

(cid:2)

Process development for co-monomers from ethylene.
(cid:2) Material development for enhancing shelf life of fruits

and vegetables.

(cid:2) Development of new grades of elastomers.
(cid:2) New Purified Terephthalic Acid (PTA) technology

(cid:2)

development.
Catalyst recovery from Crude Terephthalic Acid (CTA)
residues.

(cid:2) Development of a regenerable adsorbent for removal
of olefins in Benzene, Toluene and Xylene (BTX)
streams.

(cid:2) Development of a dehydrogenation catalyst for LAB.
(cid:2) Development of a polyolefin catalyst precursor.
(cid:2) Development of catalyst ligands for the production
of disentangled ultra-high molecular weight
polyethylene.

(cid:2) Development of High Melt Strength (HMS) grades of

polypropylene.

(cid:2) Development of low pill polyester in the continuous

reactor.

(cid:2) Development of full dull dope dyed polyester.
(cid:2) Development of new catalyst systems for bottle-grade

resin productivity enhancement.
Finishes for specialty products in polyester.

(cid:2)

RIL continues to participate in various collaborative
projects in India and overseas.

The RTG has joined the New Millennium Indian
Technology Leadership Initiative (NMITLI) project on
indigenous fuel cell technology development as the sole
industry partner. The work will be a collaborative effort
with Council of Scientific and Industrial Research (CSIR)
laboratories including National Chemical Laboratory
(NCL), Pune, to demonstrate Proton Exchange Membranes
(PEM ) fuel cell technology over the next two years.
Another initiative with NMITLI is in the area of conversion
of bioglycerol into value added chemicals.

Creation and protection of IP is becoming a core activity
at RTG. Systems and processes have been build to
effectively protect the know-how, innovations, and
knowledge generated by the staff.

As per RTG’s mission, the Company will continue to create
business value and competitive advantage for RIL by
applying (buying, customising, developing) the right
technology, at the right cost, and at the right time to meet
the current and future needs of RIL through the following
initiatives:

(cid:2) An integrated, central technology organisation to
support RIL businesses and manufacturing facilities.

(cid:2) A sustained high performance work culture which
fosters innovation, entrepreneurship, inclusiveness,
teamwork and continuous improvement.

(cid:2) A process centric organisation that maximises
synergies across all interfaces, leverages core
competencies of various disciplines to maximise value
from current assets and creates new growth
opportunities, while allowing people to develop and
contribute to their full capabilities.

Innovation

In a challenging year of demand destruction and the global
financial crisis, RIL was resilient and continued to innovate
to convert the adversity into an opportunity. RIL launched
an innovative initiative called “Mission Kurukshetra”
aimed at galvanising and energising the entire organisation
to rise to the occasion and help RIL emerge stronger.

The focus of this initiative was on extreme efficiency, value
maximisation to serve the new market conditions and
safety and reliability of assets. The employees responded
overwhelmingly by pouring in a record number of ideas
over a specially built business excellence tool which
operated on the Information Technology (IT) backbone.

Reliance Industries Limited

4 1

This initiative not only helped in surmounting the
challenges with a will to win, but also identified serial
ideators, who were recognised and rewarded by the
leadership of RIL. The Leading Expert Access Programme
(LEAP) which gives access to global thought leaders
continued to inspire the people of RIL. Nobel laureates,
industry captains and thought leaders enthralled and
enlightened communities with their experiences of life and
work.

The year culminated with the meeting of the RIC, which
was organised in Jamnagar in January 2010. “Value
creation through innovation” was the theme for this
meeting. The meeting witnessed Nobel laureates such as
Professors Lehn and Grubbs, global strategy leaders such
as Professor CK Prahalad and leading thinkers such as
Professor Whitesides and Dr. Haseltine work along with
the Chairman Dr. Mashelkar, Mr. Mukesh D. Ambani and
the leadership of RIL in defining the RIL of the future and
lay out roadmaps based on the unique positioning of the
Company.

The Reliance Innovation Leadership Centre (RILC)
continues to serve the RIC and builds on the innovation
agenda drawn up to make RIL one of the most innovative
companies in the world. It has lined up some exciting and
highly innovative initiatives that will take innovation at
RIL to the next level. RIL continues its quest to make
innovation a way of life and ensure that the next generation
of growth is innovation led.

Clean Development Mechanism

The Company has built in-house capacity to develop 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 on Climate Change
(UNFCCC). RIL’s CDM projects registered with the
UNFCCC have been audited during FY10 by their
accredited auditors and UNFCCC issued 99,457 CERs to
RIL. Until March 2010, 212,425 CERs were issued to the
Company on a cumulative basis.

Additionally, six of RIL’s CDM projects have been
approved by the board of Chicago Climate Exchange (CCX)
in FY10, which has generated 950,000 Voluntary Emission
Reduction (VER) credits.

Further, in FY10, RIL has taken up development of three
renewable energy CDM projects including harnessing
solar and biomass energy and countrywide Jatropha
plantation.

Human Resources Development

RIL’s talent base, as on March 31, 2010, stands at 23,365
with the average employee age of 41 years. The aim is to
lower the average employee age and invigorate the youth
to take the organisation forward over the next few decades
as indeed the current leaders have done over the last 30
years by starting early in their 20s and 30s. The
entrepreneurial spirit has been a hallmark of the
organisation. The Company continues to nurture this as
it grows exponentially.

Business Transformation – HR Transformation: To
quote RIL CMD, Shri Mukesh D. Ambani, “The Business
Transformation initiative that we have embarked upon is
singularly going to be the most significant project that
Reliance would have ever undertaken in its organisational
history”. While this strategy cuts across Manufacturing,
Businesses and Services, most of the transformation
agenda is around and strongly interlinked with people
practices and processes. The mandate is to build a world
class HR organisation with benchmark processes and
systems around Performance Management, Rewards and
Recognition, Competency and Capability Building,
Succession Planning, etc. amongst others.

As an ongoing exercise, RIL has continued to look at,
identify, create and execute seamlessly, initiatives which
enhance productivity and efficiency. Towards this end,
the Company has put into place a central shared services
organisation for HR, wherein Global Best Practices for HR
Shared Services are integrated. The objective of this centre,
apart from leveraging on the economies of scale, is to
provide a world class experience to our people on all the
matters that they have to deal with on a day-to-day basis
including all transactions.

RIL continues to invest in people through various
Learning & Development initiatives, which has seen
3,092,403 man hours of Learning & Development activities
at manufacturing divisions. E-learning as a medium is much
sought after by the employees for upgrading skills and
competencies since people can learn when needed at their
own convenience and from where they may be. The
Company has continued to invest in this area through
newer and state-of-the-art modules both in the Technical
and Management domains.

In FY 2009-10, 105 Six Sigma projects were completed
leading to financial benefits (annualised) amounting to

4 2

Think Growth. Think Transformation. Think Reliance.

Rs. 55 crore. Presently, 439 Black Belts and Green Belts are
associated in Six Sigma projects at different sites. For the
success of the projects, 1,896 team members and
supervisory personnel are providing active support.

To further embed Six Sigma and develop a cadre of Reliance
Certified Black Belts (RCBB) across locations, RCBB
development plan was launched at each site. Reliance
Certified Black Belt will have the knowledge and skills to
do complex projects and also guide, coach and train others
in executing Green Belt (GB) projects.

Awards and Recognition

Some of the major awards and recognitions conferred on
RIL are as follows:

Leadership

In 2009, Shri Mukesh D. Ambani, Chairman and Managing
Director of RIL, was ranked the 5th best performing CEO
in the world by the Harvard Business Review in its ranking
of the top 50 global CEOs of all publicly traded companies
that have made it into the Standard & Poor’s Global 1200
or BRIC 40 lists since 1997 and also companies from Brazil,
Russia, India, and China.

Shri Mukesh D. Ambani was awarded the Dean’s Medal
by University of Pennsylvania’s Eduardo Glandt, dean of
the School of Engineering and Applied Science in 2010.
The recognition was for his leadership in the application
of engineering and technology.

Shri Mukesh D. Ambani was awarded the Indian
Merchant’s Chamber (IMC) ‘Juran Quality Medal for 2009’,
in 2010.

Shri Hardev Singh Kohli received the ‘Gem of India Award’
for his contributions to usher in excellence in the Indian
industry at the All India Achievers’ Conference (AIAC) in
2009.

Corporate Ranking and Ratings

(cid:2)

RIL continues to be featured, for the fifth consecutive
year, in the Fortune Global 500 list of the “World’s
Largest Corporations”; ranking for 2009 is as follows:

Ranked 264th in terms of sales
Ranked 117th in terms of profits

RIL is ranked 75th in 2009, in the FT Global 500 (up
from previous year’s 80th rank).
RIL has been ranked as the 5th sustainable value

(cid:2)

creator globally by the Boston Consulting Group
(BCG) in their report on the Top 25 sustainable value
creators that have been most successful at attaining
superior value creation over a longer period of time.
RIL, ranked at the 11th position, was the only Indian
company in the 25 A T Kearney Global Champions for
2009.
RIL is ranked as 15th most innovative company in the
world in 2009, climbing 4 positions from 2008, in a
survey conducted by Business Week and the BCG.
This survey of around 3,000 global CEOs is done to
rate the world’s top 50 most innovative companies
The Allahabad Manufacturing Division bagged the
Golden Jubilee Award from the Eastern UP Chamber
of Commerce and Industry for extraordinary
accomplishments in 2009.
The Exploration and Production (E&P) division won
the ‘Best Project of the Year 2009’ award for KG-D6
Block Deepwater (D1/D3) Gas Fields Development
Project Kakinada, East coast of India from the Project
Management Institute, India in 2009.

Health, Safety & Environment

(cid:2)

The Allahabad Manufacturing Division received the
BSC-5 star certification for safety and occupational
health from the British Safety Council in 2009.
The E&P division received the Oil Industry Safety
Award from the Ministry of Petroleum & Natural Gas
for ‘Best Overall Safety Performance amongst
Offshore Drilling Rigs’ (private and joint venture) in
2009.
The Dahej Manufacturing Division received the ‘10th
Annual Greentech Environment Excellence Award
2009’ in the Petrochemicals sector from the Greentech
Foundation in 2009.
The Dahej Manufacturing Division won the
‘Greentech Safety Award 2009–Gold’ in the
Petrochemicals sector from the Greentech Foundation
in 2009.
The Dahej Manufacturing Division received Runners
up Award in the Gujarat State Safety Award – 2007
(Petroleum Gas Generation & Distribution,
Petrochemicals) category. It was also selected for the
lowest Disabling Injury Index (DII) in 2009.
The Hazira Manufacturing Division has won the
‘Golden Peacock Award for Occupational Health
& Safety’ in 2009.

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4 3

(cid:2)

The Hazira Manufacturing Division won the
annual FICCI Award in the category of environmental
sustainability of businesses in 2009.
The Jamnagar Manufacturing Division (DTA
Refinery) received the ‘International Safety Award-
2008’ from the British Safety Council in 2009.
The Jamnagar Manufacturing Division received the
‘Golden Peacock Environment Management Award
2009’ in the Petrochemicals sector in 2009.
The Jamnagar Manufacturing Division received the
‘Greentech Environment Excellence Platinum Award
2009’ in the Petroleum Refinery sector in 2009.
The Naroda Manufacturing Division received a
certificate of appreciation in consideration of safety
performance for the year 2008 from the Gujarat Safety
Council and the Director of Industrial Safety and
Health in 2009.
The Patalganga Manufacturing Division was
bestowed with the Dahanukar trophy for the ‘Best
Occupational Health Services in an Industry’ by the
Indian Association of Occupational Health (IAOH)
in 2009.
The Tapti Offshore Platform received the ‘Best Safety
Performance Award for an Offshore Platform’ at the
annual Oil Industry Safety Awards in 2009.

Training and Development

(cid:2)

The Dahej Manufacturing Division received the
‘American Society for Training & Development
(ASTD) BEST Award-2008’ in 2009.
The Hazira Manufacturing Division bagged the ASTD
‘Excellence in Practice Award’ for Trucker Safety
Training and ASTD ‘Excellence in Practice’ Citation
for Total Quality Management (TQM) and Six Sigma
training case studies In 2009.

The Nagothane Manufacturing Division has
been conferred with the ASTD ‘Excellence in Practice’
Citation in 2009.

Quality

(cid:2)

The Allahabad Manufacturing Division’s three
Quality Circle (QC) projects received ‘excellent’,
‘distinguished’ and ‘meritorious’ category
certifications from the National Centre for Quality
Control’s (NCQC) Kanpur Chapter; while the fourth
QC project was awarded ‘distinguished’ category
certification by NCQC’s Bangalore chapter in 2009.

(cid:2)

The Barabanki Manufacturing Division’s two QC
projects received ‘excellent’ and ‘distinguished’
category certifications from the Quality Circle
National Award in 2009.
The Hazira Manufacturing Division won the global
award for ‘Best TQM Success Story’ at the
International Forum of AOTS in 2009.
The Hazira Manufacturing Division won the Qualtech
2009 Excellence Award for its Business Transformation
in 2009.
The Hazira Manufacturing Division received the
‘PM SHRAM AWARD’ in recognition of its Kaizen
case studies in 2009.

(cid:2) At both the ‘National and Regional Quality Control
Circle Events’, The Hazira Manufacturing Division’s
Quality Circles have won recognition, in 2009, for
showcasing its total employee involvement initiatives
in shopfloor improvement case studies.
Energy and Water Conservation / Efficiency

(cid:2)

The Dahej Manufacturing Division received the India
Chemical Council Award for ‘Excellence in Energy
Conservation & Management 2008-09’ in 2009.
The Dahej Manufacturing Division was certified as
an ‘Excellent Water Efficient Unit’ under the National
Award for Excellence in Water Management-2009 by
the Confederation of Indian Industries (CII) in 2009.
The Dahej Manufacturing Division received the
‘Excellence in Energy Conservation & Management
Award – 2008’ from the Indian Chemical Council (ICC)
in 2009.
The Hazira Manufacturing Division won the
‘Excellence in Energy Management 2009’ Award at
the CII National Energy Summit in 2009 for the 9th time
out of the 10 editions till date and for the 6th
consecutive time, thus qualifying for the ‘ENCON
Champion of the Year’.
The Jamnagar Manufacturing Division received the
Oil & Gas Conservation Fortnight (OGCF) Award -
2009 from the Centre for High Technology, Ministry
of Petroleum & Natural Gas, Government of India (GOI)
in 2009.
The Jamnagar Manufacturing Division received the
‘Jawaharlal Nehru Centenary Award for Energy
Performance of Refineries’ for the year 2008-09 from
the Centre for High Technology, Ministry of Petroleum
& Natural Gas, GOI in 2009.

4 4

Think Growth. Think Transformation. Think Reliance.

(cid:2)

The Jamnagar Manufacturing Division received the
‘National Award for Excellence in Energy
Management-2009’ from CII in 2009.

Technology, Patents, R&D and Innovation

(cid:2)

The Jamnagar Manufacturing Division received the
‘National Award for the Most Innovative Project in
Energy Conservation -2009’ from CII in 2009.
The RTG at Hazira Manufacturing Division received
the ‘Arch of Excellence for Innovation’ and the
‘Rashtriya Ratan Award’ in 2009.
The RTG at Vadodra Manufacturing Division received
the ‘Bhageerat Award’ in 2009.

Corporate Social Responsibility (CSR)
(cid:2) Gold Medal from the Indian Red Cross Society in
recognition of the ‘Protsaham Scheme’–for
educational support to poor meritorious students in
2009.
Certificate of appreciation from the District Collector,
East Godavari district in 2009 for CSR initiatives in
this region.
The Hazira Manufacturing Division won the ‘Arch of
Excellence for CSR Outrech Programmes’ at the AIAC
Business Excellence Awards in 2009.

(cid:2)

Reliance Industries Limited

4 5

Report on Corporate Social Responsibility

RIL nurtures relationships across the entire range of
stakeholders, which helps the Company understand
pertinent issues, develop businesses, enhance shareholder
value and manage risks better. It is the relationship, trust
and commitment to stakeholder interest and the warm
reciprocal of the same by the stakeholders that make RIL
robust, resilient and sustainable. RIL actively integrates
stakeholder goals with its own and then pursues them
collaboratively.

RIL plays a cleaning role in the energy sector in its various
manufacturing divisions dealing with petroleum products,
petrochemicals and textiles. RIL’s commitment towards
excellence in Health, Safety and Environment Performance
is one of the Company’s core values. The Company is
unwavering in its policy of ‘safety of persons overrides
all production targets’, which drives all employees to
continuously break new grounds in safety management
for the benefit of the people, property, environment and
the communities in which RIL operates. This is the
Company’s responsibility as a global corporate citizen.
The ‘pursuit to achieve world class operational excellence’
has been the key focus of the Company.

Health, Safety & Environment

Health

While the main focus of occupational health services is
on medical surveillance of employees, they also carry out
extensive health education and awareness sessions, health
exhibitions and diagnostic camps. All employees,
irrespective of the nature of their work or location, undergo
regular periodic medical examinations. The medical check
up facility is also extended to the Contractors’ employees
engaged at the manufacturing sites.

The medical check up facility has been extended to all
employees at various office locations. State-of-the-art
Occupational Health Centres (OHCs) have been
established at major office locations. The frequency and
the extent of the medical check up is decided as per the
employees’ age and not their grade or designation.

All employees are subjected to health risk assessments
and appropriate measures are taken to prevent medical
complications. Employees are also supported during
hospitalisation by regular liaison and cashless
hospitalisation facilities across the country.

The Company is moving towards the concept of wellness
as it recognises that a healthy worker is a productive
worker. Health promotional activities are also extended to

employees’ family members staying at Company
townships.

RIL has provided full-fledged modern hospitals at its other
major townships in Jamnagar, Vadodara, Nagothane and
Patalganga, which provide curative health services to
employees and their family members. During the current
year, new facilities were added to the hospitals including
a state-of-the-art, special Burns Treatment unit, at the
Dhirubhai Ambani hospital in Jamnagar.

A new, fully equipped OHC with round-the-clock
paramedics and a fully equipped emergency treatment
room was established in the infrastructure area of the OT,
Gadimoga. Further, another first aid centre with a general
shift paramedic was established at Vakalapudi shore base.

Offshore medical evacuation and support medical care and
treatment are given to the family members of the
employees. Periodic potable water sampling analysis and
health audits of canteens and guest houses are also
conducted.

The employees of the Company have been traditionally
participating in blood donation campaigns which have
been an annual feature at all sites and major office
complexes. The blood thus collected, is donated to local
hospitals and blood banks.

RIL’s Change Agents for Safety, Health & workplace
Environment (CASHe) programme – an initiative to
promote healthy workplaces and reduce health and safety
risks, has been instrumental in creating a culture of
implementing health, safety and environment projects on
a priority basis. This programme has also helped the
Company to improve its performance on the occupational
health and safety front.

Safety

RIL’s HSE Management System (HSE-MS) was formulated
in FY10 to underpin all the processes and resources and
optimally manage safety. The RIL HSE-MS provides a
formal, organised process whereby the RIL Management
and employees plan, perform, review and improve the
safety performance. The HSE-MS is institutionalised
through the Management to establish Company-wide
safety management objectives, guiding principles and
processes.

The system encompasses all levels of activities and
documentation related to safety management throughout
RIL. The RIL safety management system establishes a

4 6

Think Growth. Think Transformation. Think Reliance.

hierarchy of components to facilitate the orderly
development and implementation of safety management
throughout the Company.

The Policy, Principles and safety management Standards
are used consistently in implementing safety management
across the Company. These are underpinned with a system
of proactive hazard identification, risk management,
controls, training and continuous improvement with
auditing as the most important process.

The ‘Health and Safety Principles’ were put forward to
articulate the stakeholders’ expectations from the
employees of the Company. The Health and Safety
Principles provide a guiding light for the development and
continuous improvement of the company’s HSE-MS. The
Principles document the basis on which all employees are
provided direction when confronted with conflicting
situations related to Health and Safety issues. The
Principles support the health and safety policy and set
out those areas of activity which are essential to achieving
the aspirations of the policy.

These Health and Safety Principles thus are the
fundamental beliefs that guide all actions, from
development of safety direction to the performance of
work. The Company’s Values and these Health and Safety
Principles underpin both the corporate culture and
cooperation across the Company. Aligning all the
Company’s processes and activities with these Values is
a key element in achieving success. In this respect, the
Health and Safety Principles are central to what RIL does.

To administer the safety efforts consistently throughout
the organisation, RIL has created an Integrated Safety
Organisation (ISO) across sites. This organisation consists
of the Central HSE Committee, headed by the site head
and its supporting subcommittees and the overlapping
line organisation.

RIL continues to pursue world class operational
excellence on Process Safety Management (PSM). As part
of its 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 (PHA) at various plants has been
initiated to address and reduce process safety risks. RIL
has developed and implemented various metrics to monitor
the process safety performance of various sites. The
Company has allied with various industry bodies such as
the Centre for Chemical Process Safety and the American

Institute of Chemical Engineers of USA which gives it
access to industry best practices and learning from
industry incidents. In fact, the fourteen elements of the
PSM model are embedded in the RIL HSE-MS as
operational elements.

In FY 2009-10, the KG-D6 block was commissioned without
any incidents. As part of the safety awareness programme,
various safety training programmes were conducted.
Further, few proactive initiatives such as the Hazard
Observation Programme were also undertaken through
which employees demonstrated their safety awareness by
carrying out safety observations. The opportunities
identified for improvement are being tabulated and closely
monitored by the HSE department till they are addressed
and closed by the action agencies. Monthly safety awards
have been introduced for employees and contractors for
following best safe practices. Mock drills are being
conducted to train the employees and contractors on
emergency preparedness to meet any unlikely
emergencies. Beside this, presently, the plant is working
on the implementation of the Integrated Management
System (IMS), comprising of ISO 9001, ISO 14001 and
OHSAS 18001.

Environment

In its pursuit of excellence towards sustainable
development and to go beyond compliance, RIL continued
to integrate its ISO:14001 EMS, ISO:9000 QMS and
ISO:18001 OSHA management systems. All environmental
initiatives were addressed to the Company’s long term
objective of becoming water positive, carbon neutral and
conduct the maximum possible recycling and reuse of
wastes. A management framework with defined structures,
roles and responsibilities, group standards, audits and
training has further been strengthened.

Continuing the journey towards world class environmental
performance through systems and robust processes, in
FY 2009-10, nine new RIL group standards, covering
various environmental aspects were developed and
issued. This was further supported by the development
and release of second party audit protocols for the
standards. RIL strongly believes that these actions will
be the change agent for reducing the Company’s
environmental risks.

Environment impact assessment and risk analysis have
been performed for all new and major expansion projects.
In this context, this year the Company has also developed

Reliance Industries Limited

4 7

and issued a RIL group standard and second party audit
protocol on ‘Environmental requirements for new projects’
with an objective to incorporate necessary measures to
mitigate adverse environmental impact at the planning
stage of project implementation.
RIL continues to give top priority to maintenance and
performance improvements of all pollution abatement
facilities like effluent treatment plants, inside battery limits
area, air emission control and waste disposal facilities at
its manufacturing divisions. Rainwater harvesting and
treated effluent recycling is being carried out at most
manufacturing divisions to reduce water dependence on
other natural sources. To further improve the
environmental foot print a significant step, RIL has
changed over to use of cleaner fuel at Patalganga, Jamnagar
manufacturing divisions. This has resulted in considerable
reduction of suspended particulate matter and sulphur
dioxide emissions in the air.
Training, awareness and learning have been always at the
forefront of RIL’s journey to become world class in
environmental performance. To meet this objective, RIL
focused on internal and advanced training programmes,
inter-site meets, virtual classes, etc. involving subject
experts; participation at national and international
conferences, workshops and courses as well as
networking/collaboration with universities, research
institutes, regulatory bodies, industrial and professional
associations, etc. All manufacturing divisions celebrated
the World Environment Day, Earth Day, Water Day, Ozone
Day, etc and created environmental awareness among
employees and surrounding communities and schools.
In these improvement efforts, audits play an important
role. Trained and qualified internal auditors perform
internal environmental audits of the environment
management system at regular intervals. RIL also offered
its sites to third party environment audits such as audit
by Gujarat Pollution Control Board (GPCB) recognised
auditors in the state of Gujarat; ISO-14001:2004 audits by
accreditation agencies, National Safety Council
environment audit at Hazira Manufacturing Division and
Five Star environment audit by British Safety Council, UK
at the Jamnagar, Dahej and Nagpur manufacturing
divisions.
RIL has inculcated a habit to be in harmony with nature
and in this context, afforestation, maintenance of green
belts, gardens, vermi-compost of waste and its use as
manure, reuse of treated water in horticulture activities
are routine.

RIL continues to give top priority to all environmental
regulatory compliances at KG-D6 block and tried for
optimum water consumption and reuse of treated waste
water.

RIL is committed to creating greenery in and around the
KG-D6 project site by developing a green belt and
promoting lush green surroundings at the OT, Gadimoga
to be in harmony with nature.

The green belt is being carried out at the OT site,
Infrastructure area at Gadimoga terminal, haul road and all
yards as well as the Vakalapudi shore base terminal site
with a cumulative plantation of over 1,00,000 plants.

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 have been ‘G3 Checked A+’
application level reports. From FY 2006-07, in addition to
referring to the GRI G3 sustainability reporting guidelines,
RIL refers to the American Petroleum Institute/the
International Petroleum Industry Environmental
Conservation Association’s (API/ IPIECA) guidelines as
well as the United Nations Global Compact (UNGC)
Principles. RIL has also aligned its sustainability
development activities with the focus areas of the World
Business Council for Sustainable Development (WBCSD).

SOCIAL RESPONSIBILITY AND COMMUNITY
DEVELOPMENT

RIL has a long and strong tradition of supporting the larger
communities that it connects with – from education, health,
drinking water, large-scale development of employable
skills, to assistance during natural calamities such as
earthquakes and cyclones.

“I strongly believe that we can, and should do, much more.
I also believe that this effort has to bring into play RIL’s
strengths of strategic planning, meticulous detailing and
flawless execution on a large format”. With this
perspective in mind, Shri Mukesh D. Ambani announced
the launch of ‘The Reliance Foundation’ in November 2009.

The Reliance Foundation would address social
development imperatives of India, specifically quality,
formal and vocational eduation, affordable high-quality
health care, meaningful rural development and urban
renewal, and protection and promotion of India’s priceless
heritage of arts and culture.

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Think Growth. Think Transformation. Think Reliance.

Education

Education continues to be 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.
RIL’s CSR cells of its manufacturing divisions and E&P
blocks work zealously, round the year to support the
educational requirement of the surrounding community
and schools in the neighbouring region benefiting
thousands of students from the underpriviledged section
of the society.

RIL’s project for physically challenged children at Surat,
near the Hazira Manufacturing Division, is fast emerging
as a global model of public-private partnership, supporting
physically challenged children’s education with a local
NGO. A hostel for physically challenged female students
from the underpriviledged segment of the society has also
been constructed. With the support of state government
of Gujarat, the school has been upgraded to Standard XII,
thus becoming first such school in India.

Project ‘Jagruti’, the project to tackle dyslexia in Surat, is
yet another public-private partnership based successful
CSR programme being run by RIL. This project is based
on the Linda Bell Model for diagnosis of dyslexia. The
project is fully piloted at RIL’s J. H. Ambani School in
Surat. The success of this programme has inspired many
schools in Surat to replicate the model. The Reliance Jagruti
project for dyslexia is setting the pace for the business
world’s response to the social stigma of the mentally
underpriviledged children. Spouses of RIL employees from
the Hazira Manufacturing Division are also supporting
this activity. National Institute of Open Schooling (NIOS)
registration has been initiated for the Academic Year (AY)
2010-11.

RIL has established an ‘Early Intervention & Rehabilitation
Centre for Intellectual & Developmental Disabilities’ at
Tallarevu to cater to the needs of such children and others
living in Tallarevu Mandal and Yanam Union Territory.

The J. H. Ambani School near Patalganga Manufacturing
Division continues to strengthen the support network for
the disadvantaged and the physically challenged through
participation in initiatives being undertaken by National
Society for Equal Opportunities for the Handicapped
(NASEOH), Blind Association and Cancer Society. The
school has been awarded the King – Queen Runner-up
trophy for the AY 2009-10 by NASEOH for its contribution
to this social cause. The school has been placed in the

outstanding category amongst all Dayanand Anglo Vedic
(DAV) Public schools across the country and has been
awarded “Pride of DAV Award” for meritorious
achievements in class X and XII of the CBSE Examination
AY 2009-10.

“Reliance Dhirubhai Ambani Protsaham” programme
continues to support poor and brilliant students in
pursuing higher studies. Continuous monitoring is being
done to improve the performance of the students by
conducting special classes in English and other subjects.
Regular counselling sessions are also being arranged with
experts in personality development and psychologists for
motivating the children to achieve better results.

Further, RIL supplied notebooks, uniforms and bags to
students from Gadimoga and Bhairavapalem panchayats
and provided furniture to many schools to enable the
children to have a better learning environment. To bring
better results in high schools, RIL provides ‘vidya
volunteers’ for the subjects where there are no regular
class teachers.

RIL supports academics and education at all levels. The
highlight of the year was the construction of additional
classrooms and equipping them with furniture for the
school at the Air Force Station, Jamnagar and also at
schools of neighboring villages at Kanachikari and Moti
Khavdi. Additionally, RIL extended financial support to
academic and cultural programmes of many educational
institutions. Further, RIL plays a pivotal role in the
education of the girl child especially in rural regions. At
many locations near its manufacturing divisions, the
Company sponsors female students from the economically
underpriviledged segment of the society.

The Mumbai Indians’ (the Indian Premier League’s
franchise for Mumbai) ‘Education for All’ initiative is a
movement to support efforts to provide quality education
to all children. The initiative is the brainchild of Smt. Nita
M. Ambani, a passionate advocate for the cause of
education. All proceeds from wristband sales go to support
partner organisations: Akanksha, Nanhi Kali, Pratham,
Teach for India and Ummeed. All these organisations have
taken on the challenge of giving children in Mumbai and
across India the opportunity to receive a great education.
They refused to accept the status quo and have done
path breaking work in changing how children study, learn
and grow.

Reliance Industries Limited

4 9

Community Health Care

RIL has developed Community Medical Centres (CMCs)
near most of its manufacturing divisions. These CMCs
provide comprehensive health services covering
preventive, promotive and curative health care to the
communities from neighbouring villages. Manufacturing
divisions conduct regular health checkups for children in
schools of their respective neighbouring regions. Doctors
advise children and their parents on various health care
issues and personal hygiene. RIL-sponsored Moti Khavdi
Medical Centre caters to patients of surrounding villages
with free medical services for needy patients. Further, RIL
has also donated wheel-chairs and stretchers to a
government-run hospital in Jamnagar.

Annually, RIL employees organise and participate in blood
donation camps across manufacturing divisions and
offices.

The ‘Dhirubhai Ambani Hospital’ at Lodhivali, near RIL’s
Patalganga Manufacturing Division provides quality
medical care to the surrounding community. It extends
prompt and specialised services to accident victims on
the Mumbai-Pune highway. Trauma patients are provided
free life-saving treatment. Further, the hospital continues
to provide poor patients and senior citizens with free or
highly subsidised treatment.

A unique joint initiative of RIL and the National
Association of Blind (NAB), ‘Project Drishti’ has
undertaken over 8,000 free corneal graft surgeries for the
visually challenged from the underpriviledged segment
of the society. It is the largest corneal grafting surgery
project enabled by a single corporate entity in India.
Additionally, many manufacturing divisions regularly
conduct blindness control programmes, comprising free
cataract surgeries as well as distribution of prescription
glasses and free medication like Vitamin A capsules and
drops to underpriviledged children of neighbouring
villages.

Further, RIL has initiated a project for the development of
cost effective and user friendly plastic cane. A plastic cane
identical to an aluminium cane has been developed and
NAB found it meeting the functional requirements during
trials. As per an initial estimate, the plastic cane will cost
about 60% less than an aluminium cane. The team is also
working on weight reduction of the plastic cane.

‘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. The Hazira Manufacturing Division’s DOTS
HIV/AIDS Centre is one of the largest Anti-Retroviral
Treatment Centre (ART Centre) in the country.
Manufacturing divisions in Jamnagar and Patalganga too
have ART Centre facilities. This initiative has been
expanded to other manufacturing divisions where activities
are largely in the areas of advocacy and awareness.

Under ‘Project Balkalyan’, which is being run by RIL at its
Jamnagar Manufacturing Division, every month, 55
children afflicted with HIV/AIDS are provided with
nutritional support. Further, more than 100 HIV+ children
have been adopted by the Reliance Ladies Club – an
initiative of spouses of RIL executives from the Hazira
Manufacturing Division, for educational and nutritional
support.

The ‘Primary Health Centre (PHC)’ at Dahej, Gujarat
adopted by RIL in FY 2006-07, continues its patronage
and renders exemplary service in the region. Through the
PHC, the Company has not only achieved its objective of
providing medical services and facilities to the surrounding
villages but has also conducted numerous programmes of
national importance such as the pulse polio programme,
malaria surveillance programme and health checkups for
schools etc. The PHC is one of the few centres that has
achieved a 100% target for conducting family planning
operations in FY 2009-10. Further, RIL has contributed
through the Rotary Welfare Trust, Bharuch, Gujarat for
establishing a CT Scan Centre and Cardiac Disorder
Diagnostic Centre in Bharuch. The PHC at Gadimoga,
established in FY 2004-05, caters to the needs of the
surrounding village communities. The two sub centres of
this PHCat Bhairavapalem and Laxmipathipuram villages
benefit about 6,000 families living in this region.

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

Community’s Safety

The Road Safety System is the most advanced, cost
effective and easy to use tool for improving public safety

5 0

Think Growth. Think Transformation. Think Reliance.

and reducing operating economic costs. RIL has
institutionalised road safety training across its numerous
manufacturing divisions. The Company reaches out to
over a lakh tanker and truck drivers annually, who visit
the premises for receipt and dispatch of feedstock and
finished goods. Further, road shows and training sessions
for tanker drivers transporting chemicals and hazardous
goods are organised at truckers’ plazas. For the first time
in the state of Gujarat, the Road Traffic Office (RTO) near
Hazira is being supported by a multimedia based training
facility to render safety awareness to all new license
aspirants.

To provide emergency and trauma care to victims of
highway accidents, at Hazira, RIL has tied up with an NGO
and adopted a 110 kms stretch on the state highway in
Gujarat starting from Sachin to Bharuch and the state
highway via Hazira-Olpad-Hansot-Ankleshwar. The
Hoshiarpur Manufacturing Division, Punjab, provides
round-the-clock free ambulance services on the National
Highway - 70 (a 20 kms stretch from Punjab to Himachal
Pradesh).

Rural Infrastructure Development

Reliance Rural Development Trust (RRDT) as a Corporate
NGO, continued its activities under the Gokul Gram Yojana
of the state government of Gujarat. In FY 2009-10, RRDT
undertook development of 1,390 village infrastructure
facilities in 1,243 villages of 166 talukas across all 25 districts
of the state of Gujarat. Of these, construction of 971
facilities aggregating expenditure of Rs 36.58 crore, were
completed in FY 2009-10 and the same were handed over
to the respective village authorities. The 971 facilities
include 879 anganwadi buildings pre-nursery schools),
61 cement-concrete roads, 21 underground RCC sumps of
capacities varying from 50,000 litres to 2.5 lakh litres water-
storage capacity and 9 check dams with total water storage
capacity of 12.58 (million cubic feet (mcft) capable of
catering to the irrigation needs of about 1,750 hectares
surrounding agricultural land. The sumps and check-dams
constructed are in areas of perennial water scarcity. Since
its inception in 2001 till March 2010, RRDT, under Gokul
Gram Yojana of the state government of Gujarat, has
constructed 6,698 village infrastructure facilities with an
aggregate expenditure of Rs 261.30 crore. The RRDT
initiative, spanning over a decade, has set an example for
sustainable community development work in India by a
unique synergy of a corporate NGO (RRDT) and the state
government of Gujarat.

RIL continues to develop rural infrastructure facilities and
temples near the surrounding villages of many of its
manufacturing divisions. RIL completed the Mandal
Development Road of 10 kms length connecting Tallarevu
to Bairopalem improving transport infrastructure. The road
was dedicated to the nation by the Hon’ Chief Minister of
Andhra Pradesh.

Further, a fish drying platform cum jetty at Yanam was
brought into operation this year. It will benefit about 2,000
fisher folk living in Darialathippa village providing them
smooth transit facility to villages that are on the other
side of the Godavari river.

Livelihood Support Programmes

RIL sponsored Self-Help Groups (SHGs) continue to
empower women and youth from the underpriviledged
segment through various employment oriented training
and skill development programmes. These include dress
making, health care, helpers for hospitals, nursing,
jewellery making, mobile phone repairing, electrician
training, bamboo article making, light motor vehicle driving
training etc.

RIL organised a livelihood workshop mainly focusing on
fishermen involving different stakeholders like farmers,
NGOs, research organisations and government agencies
working with fisher folk. The outcome of the workshop
was followed up with the agencies involved. The National
Fisheries Development Board (NFDB) will modernise the
fishing harbour at Kakinada and also develop fish outlets.
Further, RIL has promoted organic aqua culture for the
benefit farmers in the Kakinada region.

Seeing the popularity of Polypropylene Non-Woven
(PPNW) for various packaging solutions across the
southern part of India, RIL took the initiative to create a
‘handloom’ like excitement in the field of the PPNW bag.
This initiative has helped create an opportunity for
housewives to earn from home apart from giving them
financial independence and a sense of pride. RIL identified
few bag making units, manufacturing non-woven bags in
small towns like Madurai, Bhavani, Belgharia and Pune.
Units in these regions were persuaded to give bag making
operations on job work basis to housewives or a group
working on a cooperative basis. The housewife collects
cut pieces from the converters, stitches them and supplies
it back to the converter.

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5 1

Relief Operations

RIL’s time tested disaster management and calamity relief
operations were put to use yet again in FY 2009-10. In
addition to extending donations, the RIL team from
Jamnagar and Andhra Pradesh worked zealously in flood
affected areas of Krishna, Andhra Pradesh, in October
2009.

Cyclone ‘AILA’ hit West Bengal’s 24 North & South
parganas in May 2009. RIL reached out to the state
government of West Bengal on a war footing to facilitate
speedy construction of a long-lasting embankment,
stretching 778 kms, in the cyclone AILA affected region.
A proposal to use various types of Polypropylene (PP)
Geosynthetics was made and all technical inputs were
provided to the officials to restore the embankment.

Wildlife and Animal Care

Parapets were constructed on open wells in the Gir forest
in Gujarat, through FY 2009-10, considerably reducing
deaths amongst lion cubs.

Heritage Conservation

Keeping in view the plurality of our society with multiple
cultures, traditions and backgrounds, RIL has initiated
various activities to consolidate the Indian ethos of unity
in multiplicity.

RIL continues to support and develop the heritage temple
and town of Dwarka. In FY 2009-10, RIL carpeted the
bypass road leading to the temple and also continued the
upkeep of the temple and the adjoining areas. In November
2009, under the state government of Gujarat’s Pavitra
Yatradham Vikas Board, RIL commenced development
work in the temple square area.

Supporting Indian Culture

Under the aegis of the Gujarat Industries Navratri Festival
Society (GINFS), in FY 2009-10, RIL supported more than
a dozen garba troupes and organisations in Jamnagar,
Rajkot, Ahmedabad, Gandhinagar etc. Besides nine days
of traditional garbas, depiction of culture, history,
handicrafts, eateries and specialties of Gujarat through
exhibitions, displays and stalls were part of the special
attractions.

RIL continues to support ‘Homage to Abbaji’, a musical
fiesta designed 10 years ago by the noted musician, Zakir
Hussain, in memory of his father and guru, Late Ustad
Allarakha. This unique musical event, held in Mumbai once

a year, offers a platform to national and international
artistes of repute to come on a common stage thus
fostering camaraderie, cultural juxtaposition and harmony.

Supporting Professional Organisations and NGOs

RIL continues to support professional organisations,
NGOs and events with the aim to develop professionalism
in the country. Additionally, RIL is also aiding the
development of the Jamnagar Chamber of Commerce and
Industry’s (JCCI) new office building to be called the
‘Dhirubhai Ambani Vanijya Bhavan’.

RIL continues to support and work with Society for Village
Development in Petrochemicals Area (SVADES), an NGO
that binds the industry and the rural community for socio-
economic development. SVADES works in surrounding
villages near Vadodra Manufacturing Division. 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.

Promoting Sports and Sportspersons

Besides promoting cricket on the global front, RIL actively
nurtures young and talented cricketers and sports bodies.
In FY 2009-10, Shri Parimal Nathwani, Group President
(Corporate Affairs) was elected as the Vice President of
the Gujarat Cricket Association.

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

RIL and IMG have entered into an equal joint venture in
FY 2009-10 to develop, market and manage sports and
entertainment in India. The venture will have parallel
complementary strategies: to provide and operate world
class infrastructure and coaching facilities in the country
to unlock India’s sporting potential and create and operate
major sports and entertainment assets in the country.

Acknowledging and Supporting Talent

‘Real Heroes’ is an initiative of CNN-IBN in partnership
with RIL to honour the silent warriors of change, the
ordinary people who have rendered extraordinary services
for the betterment of others. For their contributions, all 24
Real Heroes are honoured and felicitated at a grand event

5 2

Think Growth. Think Transformation. Think Reliance.

in Mumbai with a trophy and a cash prize of Rs. 5 lakh
each.

Along with the National Academy of Sciences, India
(NASI), RIL instituted ‘NASI-Reliance Industries Platinum
Jubilee Awards Covering Both Physical and Biological
Sciences’ by allocating dedicated funds amounting to
Rs. 1 crore in 2006. The annual award to scientists is in
recognition of their significant contribution for
application-oriented innovations and research. The award
carries cash prize of Rs. 2 lakh and a citation.

RIL and the Stanford Graduate School of Business
announced the creation of the ‘Reliance Dhirubhai India
Education Fund’ in April 2008 to enable promising Indian
students with financial need to obtain an MBA from
Stanford. Each year, the 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 Programme.

In December 2006, jointly with UDCT Alumni Association
(UAA), RIL instituted ‘UAA-Dhirubhai Ambani Lifetime
Achievement Award’ for innovative and outstanding
contributions in the field of chemical sciences.

Dhirubhai Ambani Foundation

Dhirubhai Ambani Foundation (DAF) has Education and
Public Healthcare as its focus areas. Under its SSC Merit
Reward and Undergraduate Scholarship Schemes
instituted in 1996, DAF recognises and assists students
who top the merit lists of Std X and Std XII Board exams.
The schemes also take care of the physically challenged
meritorious students of the State Education Boards. Till
date, the schemes have benefited 7,281 students, 1,056 of
whom are physically challenged.

‘Sir Hurkisondas Nurrotumdas Hospital & Research Centre
(HNHRC)’ is a renowned institution in South Mumbai,
having rendered quality healthcare to the society for more
than 85 years. It has a 328 bed multi-specialty tertiary care
hospital with some rare specialties like Oro-facial Surgery,
Onco-Surgery, Paediatric Hematology and Paediatric
Endocrinology. It is one of the most renowned institutes
for transplant surgeries and eye donations.

Sir Hurkisondas Nurrotumdas Medical Research Society
(HNMRS), a non-profit research organisation based in
Mumbai and established in 1974 with the sole aim of
undertaking scientific research in the area of biomedical
sciences and allied disciplines. The HNMRS has

undertaken over 150 research projects on a wide range of
topics, most of which are of national importance in the
areas of the preventive, diagnostic, therapeutic, and
rehabilitative aspects of health. Several high-budgeted
research projects, of considerable medical and scientific
relevance to the community, have been completed and are
also on hand currently at the HNMRS. Most of the studies
done at this institute have the potential for translation
into tangible benefits for humanity, and several of them
have already found expression in terms of new inventions
or innovations which have empowered doctors in the
difficult task of decreasing the mortality and morbidity of
disease.

Dhirubhai Ambani International School (DAIS)

Dhirubhai Ambani International School (DAIS), founded
in 2003, is the fruition of a dream to offer educational
opportunities to children that make learning a joy and help
bring out the best in them. The academic accomplishments
and the all-round development of children from class LKG
to 12 is a fitting tribute to this noble aspiration.

In examinations of all the three streams – the ICSE, the
IGCSE and the IB Diploma held in 2009, the school’s
children have given an impressive performance,
surpassing that of all the previous years. As against the
average score of 36 (out of the maximum possible score of
45) achieved by the first four batches of IB students, the
fifth batch, the Class of 2009, attained an average score of
37, compared to the world average of 29.5. In an even
greater accomplishment, 3 of the students earned the
perfect score of 45 points, a score that was achieved only
by 86 children worldwide in 2009. For the fourth year in a
row, the ICSE batch has achieved excellent results - earning
an average score of 91%, with 29% of them scoring 95%
and above and the topper scoring 96.1%. 87.1% of all
IGCSE grades achieved were A* and A grades, as
compared to the world average of 33% and the Indian
average of 38%. Some of the children have even topped
globally in several subjects while some of them are national
toppers. For the fourth year in a row, one of the students
received the ‘Best IGCSE Student in India’ award from
Cambridge International Examinations.

The school’s performance at the level of university
placement continues to be exemplary. The IB Class of 2010
has earned admission offers from the world’s top
universities. 3 students were accepted at Oxbridge, 7 at

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Imperial, 32 at Warwick, 21 at University College London,
9 at King’s College and 9 at the London School of
Economics, amongst others. Amongst the Ivy League and
other leading universities, Brown has accepted 2 students,
Columbia 1, Cornell 2, U-Penn 5, Princeton 2, Yale 1,
Stanford 2, MIT 2, Northwestern 3, Carnegie Mellon 5,
Michigan 7, University of California LA 11, UC Berkeley 6
and New York University 11. Other reputable universities
that have offered admission to the students include Duke,
McGill, British Columbia, University of Toronto and
University of Hong Kong. Students who applied to
universities in Singapore as well as those who plan to
continue their studies in India are expected to do equally
well when their admissions are finalised.

Apart from academics, the school’s students also work
with a number of NGOs which include Advitya, Akanksha,
Committed Communities Development Trust (CCDT),
Muktangan, Pratham, Goonj and Habitat for Humanity.
This year, the IB Diploma students have taken up the
initiative to construct houses and roads in the village
Hassachipatti (near Matheran) as well as provide
educational opportunities to children in that area. To fund
this project, students organised a fete in 2010 in which
substantial funds were raised.

The academic year 2009-10 also earmarked several other
notable and innovative initiatives. These include the
‘Paigaam’ Peace Conference which fosters a harmonious
relationship with people from across the border, the Annual
DAIMUN (Dhirubhai Ambani International School Model
United Nations) Conference which promotes children’s
leadership potential and commitment to civic engagement,
participation in IAYP (International Award for Young
People) which facilitates overall development of children
by challenging them in areas of physical recreation, skills,
service and expeditions; and the celebration of the Annual
Day on the theme ‘I am Mumbai’, depicting the indomitable
spirit of Mumbai and an awakening to address the
daunting challenges it faces.
In a fitting tribute to what it has accomplished in taking
forward the Round Square IDEALS, since receiving the
Regional Membership in 2008, the Dhirubhai Ambani
International School has received the prestigious Global
Membership of Round Square in 2010. This stature will
provide opportunities to further the ethos of Round Square
through broad-based activities and exchanges that the
global member schools fraternity provides.

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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 32 years back, we have grown revenues and net
profit by a Compounded Annual Growth Rate (CAGR) of
28.42% and 30.91% respectively. The financial markets have

endorsed this sterling performance as is reflected in a
35.80% 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 3.6 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 41 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 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

Reliance Industries Limited

5 5

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 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

(cid:2)

statements and management reports and ensure
compliance with statutory laws, regulations and
company policies.

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.

Shareholders communications. The Board
recognizes the importance of 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 questions 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 ensures that queries,
complaints and suggestions are responded in a timely
and consistent manner.

Employees Stock Option Scheme. One of the widest
programs of its kind in the Indian corporate sector,
the program was introduced in 2007. The program
has ensured complete alignment of individual interests
with the growth imperatives of the Company.

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 -

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Think Growth. Think Transformation. Think Reliance.

(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.

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

The Company undergoes internal audit
conducted by independent auditors.

The Company also undergoes secretarial audit
conducted by an independent company
secretary in wholetime practice.

(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), one
of the premier professional bodies in India, 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, Forfeiture of Shares and Board’s Report.
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 13 directors, out of which 7 are
independent Directors. Composition of the Board and
category of Directors are as follows:

Category

Promoter Director

Executive Directors

Non-Executive Non-
Independent Director

Independent Directors

Name of the Directors

Mukesh D. Ambani
Chairman &
Managing Director

Nikhil R. Meswani
Hital R. Meswani
Hardev Singh Kohli1
P.M.S. Prasad2
R. Ravimohan3
Pawan Kumar Kapil4
Ramniklal H. Ambani

Mansingh L. Bhakta
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Mahesh P. Modi
S. Venkitaramanan5
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A.
Mashelkar

1upto March 31, 2010
2w.e.f. August 21, 2009
3from September 01, 2009 to December 28, 2009
4w.e.f. May 16, 2010
5upto 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. 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

Reliance Industries Limited

5 7

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

Shri Mukesh D. Ambani is a Chemical Engineer from
Institute of Chemical Technology, Mumbai (earlier
University Department of Chemical Technology,
University of Mumbai). 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. With an aggregate refining capacity of
1.24 million barrels of oil per day at any single location in
the world 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 oil fields 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).

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) Awarded the Dean's Medal by University of
Pennsylvania's School of Engineering and Applied
Science in 2010 for his leadership in the application
of Engineering and Technology.

(cid:2) Awarded the Indian Merchant's Chamber (IMC)

(cid:2)

'Juran Quality Medal 2009' in 2010.
Ranked the 5th best performing CEO in the world by
the Harvard Business Review in its ranking of the top
50 global CEOs .
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.

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(cid:2)

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.
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.

(cid:2)

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.

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,
McKinsey Advisory Council and Asia Business Council.

He is the Chairman, Board of Governors of the Indian
Institute of Management, Bangalore, Chairman of Pandit
Deendayal Petroleum University, Gandhinagar. Shri
Ambani is Co-Chair of India-Russia CEO Council, and Co-
Chair of Japan-India Business Leader's Forum, a Member
of the Governing Board of Public Health Foundation of
India (PHFI), and Advisory Board of D.E. Shaw India
Advisory Services Private Limited.

Shri Mukesh D. Ambani is the Chairman of Reliance Retail
Limited, a Director of Reliance Europe Limited and a Private
Limited Company.
At RIL, Shri Mukesh D. Ambani is the Chairman of the
Finance Committee & a Member of Employees Stock
Compensation Committee.
Shri Mukesh D. Ambani is the Promoter of the Company
and holds 36,15,846 shares of the Company in his name
as on March 31, 2010.
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.
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. He
also takes keen interest in IPL cricket franchise - "Mumbai
Indians".
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 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.
Shri Meswani holds 2,78,374 shares of the Company in
his name as on March 31, 2010.
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.

Reliance Industries Limited

5 9

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 a member of
the Finance Committee, Shareholders’/ Investors’
Grievance Committee and Health, Safety & Environment
Committee of the Company.

Shri Meswani has been instrumental in the execution of
several mega projects of the group including the Hazira
Petrochemicals complex and the world's largest refinery
complex at Jamnagar.

Shri Meswani also serves on the board of Overseers at
the University of Pennsylvania

Shri Meswani holds 2,11,886 shares of the Company in
his name as on March 31, 2010.

Shri P.M.S. Prasad has been appointed as a Whole time
Director of the Company with effect from August 21,
2009.

He has been with the Company for 29 years. Currently,
he spearheads the Upstream and Refining business,
which comprises of Exploration & Production and
Refinery supply & trading. Over the years, he has held
various positions in the fibres, petrochemicals and
petroleum business of the Company. He was also the
Project Director of the Jamnagar refinery and
petrochemicals complex. Under his leadership, Reliance,
in a span of 9 years since inception in the Exploration
and Production business, made the largest Gas
Discovery in the year 2002 and has since commissioned
India's first and one of the World's largest deepwater gas
production facilities. Currently Reliance is India's largest
gas producer.

He holds Bachelor's degrees in Science and Engineering.
He was awarded an honorary doctorate degree by the
University of Petroleum Engineering Studies, Dehra Dun
in recognition of his outstanding contribution to the
Petroleum sector.

Mr. Prasad is a member of the Senate of the Indian
Institute of Technology, Mumbai and is on the Board of
Governors of the University of Petroleum & Energy
Studies, India. He has been conferred the Energy
Executive of the Year 2008 award by Petroleum Economist
in recognition of his leadership in diversifying RIL from
a refining and petrochemicals group into a successful
vertically diversified E&P business.

Shri P.M.S. Prasad is also director of Reliance Jamnagar
Infrastructure Limited, Reliance Petroinvestments
Limited, Reliance Commercial Dealers Limited, Reliance
Gas Corporation Limited, Reliance Gas Transportation
Infrastructure Limited, Reliance KG Exploration &
Production Pvt., Limited, Reliance Upstream Limited and
several other Private Limited Companies. He is member
of the Audit Committee of Reliance Commercial Dealers
Limited, Reliance Jamnagar Infrastructure Limited and
Reliance Gas Transportation Infrastructure Limited.

Shri Prasad holds 36,666 shares of the Company in his
name as on March 31, 2010.

Shri Pawan Kumar Kapil holds a Bachelor's Degree in
Chemical Engineering and has a rich experience of more
than 40 years in different facets of petroleum refining
industry.

He joined Reliance in 1996 and led the commissioning and
start-up of the Jamnagar Complex. He was associated
with this project since conception right through Design,
Engineering, Construction and Commissioning. He also
led the commissioning of the manufacturing operations
in the Special Economic Zone (SEZ) at Jamnagar by
Reliance.

Shri Kapil started his career in 1966 with Indian Oil
Corporation. In the initial years he worked in various
capacities in Operations, Technical Services and start-up/
commissioning of various Refinery Process Units/
facilities in Barauni and Gujarat Refineries. Being a person
with strong penchant for analytical work and high
technology skills, he was chosen to head the Central
Technical Services Department at Corporate Office of
Indian Oil. Here he did extensive work in expansion of
the existing refineries, energy optimization, de-
bottlenecking studies and long range planning. Then he
moved to Mathura Refinery as the head of Refinery
Operations. From Mathura he was picked up to become
the Director (Technical) of Oil Coordination Committee
(OCC) - the 'Think Tank' of Ministry of Petroleum,
Government of India. He has traveled extensively and

6 0

Think Growth. Think Transformation. Think Reliance.

has been to USA, Russia, Middle East, Europe & Far East
in connection with refinery design, technology selection,
crude sourcing, etc. Having served for 28 years in Indian
Oil and OCC in various capacities, he rose to the position
of Executive Director and spearheaded the setting up of
Panipat Refinery for Indian Oil Corporation.

Shri Kapil has been the Site President of the Jamnagar
Complex since 2001 and is responsible for its operations.
Under his leadership, the Jamnagar Refinery has bagged
many National and International Awards and was declared
as the Best Refinery in the world at the 'World Refining
& Fuel Conference' at San Fransisco, USA in the year
2005. In recognition of his excellent achievements, the
CHEMTECH Foundation had conferred on him the
"Outstanding Achievement Award for Oil Refining" in the
year 2008.

Shri Kapil is a member of Health, Safety & Environment
Committee of the Company.
Shri Kapil holds 10,176 shares of the Company in his name
as on March 31, 2010.
Shri Ramniklal H. Ambani is one of the senior most
Directors of the Company.

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 and member of the
Remuneration Committee of Sintex Industries Limited. He
is the Chief Mentor in Tower Overseas Limited.

Shri Ambani holds 1,71,132 shares of the Company in his
name as on March 31, 2010.

Shri Mansingh L. Bhakta is Senior Partner of Messers
Kanga & Company, a leading firm of Advocates and
Solicitors in Mumbai. He has been in practice for over
52 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 Merchant's Chamber,
Mumbai, JCB 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 of 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, Ambuja
Cements 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 four consecutive years from 2006.

Shri Bhakta holds 3,14,000 shares of the Company in his
name as on March 31, 2010.

Shri Yogendra P. 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, Emami
Limited and several Private Limited Companies.

Reliance Industries Limited

6 1

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.
He 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 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.
Shri Trivedi holds 27,984 shares of the Company in his
name as on March 31, 2010.
Dr. Dharam Vir Kapur 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.
Dr. Kapur served as Secretary to the Government of
India in the Ministries of Power, Heavy Industry 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 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 of GKN Driveline (India) Limited
and Drivetech Accessories Limited. He is also a Director
on the Boards of Honda Siel 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 a member of the Corporate Governance and
Stakeholders' Interface Committee, the Remuneration
Committee and the Health, Safety and Environment
Committee of the Company. He is Chairman of Audit
Committees of Honda Siel Power Products Limited and
GKN Driveline (India) Limited, Shareholders'/Investors'
Relations Committees of Honda Siel 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.

Dr. Kapur holds 13,544 shares of the Company in his
name as on March 31, 2010.

Shri Mahesh P. Modi, M.Sc. (Econ.) (London), Fellow,
EDI of the World Bank, held high positions in
Government of India as: Chairman of Telecom
Commission;, Secretary, Dept. of Telecommunications;
Director-General, Telecommunications; Secretary, Ministry
of Coal; Special Secretary, Insurance; and Joint Secretary,
Ministry of Petroleum, Chemicals and Fertilizers. He has
served as Director in the Boards of many public and
private sector companies' Boards, including: GAIL
(Founder Director), IPCL,BPCL, CRL, BRPL, LIC, GIC,
MRPL, Essar Shipping, BSES, ICICI Prudential Life
Insurance Co.,and India Advisory of BHP Bilitton. He
has considerable management experience, particularly in
the fields of energy, petrochemicals, insurance 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 2,924 shares of the Company in his name
as on March 31, 2010.

Prof. Ashok Misra is a B.Tech. in Chemical Engineering
from IIT Kanpur. He obtained his Ph.D. in Polymer
Science & Engineering
from University of
Massachusetts, M.S. in Chemical Engineering from Tufts

6 2

Think Growth. Think Transformation. Think Reliance.

University. 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/ 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 2,240 shares of the Company in his
name as on March 31, 2010.

Prof. Dipak C. Jain is a M.S. in Mathematical Statistics
from Gauhati University. He is a Ph.D. in Marketing and
M.S. in Management Science from the University of
Texas 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 21 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 member of the Employees Stock
Compensation Committee of the Company. He is a
Director of Reliance Retail Limited and is a member of the
Audit Committee.
Prof. Jain does not hold any share of the Company.
Dr. Raghunath Anant Mashelkar, an eminent scientist,
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.

Reliance Industries Limited

6 3

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 resignation of

(cid:2)

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

(cid:2) Minutes of meetings of Audit Committee and other

Committees of the Board.

(cid:2) Declaration of independent directors at the time of

appointment / annually.

(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.
Significant changes in accounting policies and
internal controls.
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.
Internal Audit findings and External Audit Reports
(through the Audit Committee).
Proposals for investment, mergers and acquisitions.
(cid:2)
(cid:2) Details of any joint venture, acquisitions of

(cid:2)

companies or collaboration agreement.

Dr. Mahshelkar is a member of the Audit Committee of
the Company.

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

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 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 /

6 4

Think Growth. Think Transformation. Think Reliance.

(cid:2)

Status of business risk exposures, its management
and related action plans.

D. Recording Minutes of proceedings at Board and

Committee meetings

(cid:2) Making of loans and investment of 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.
Brief on clarifications made to the press.

(cid:2)

(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. In special and exceptional circumstances,
additional or supplementary item(s) on the Agenda are
permitted.

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 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

Eight 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. The details of the Board meetings are as under:

Date

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8

April 23, 2009
June 19, 2009
July 24, 2009
August 21, 2009
October 7, 2009
October 29, 2009
January 22, 2010
March 25, 2010

13
13
13
14
14
14
13
13

No. of
Directors
Present
12
7
12
11
12
12
12
13

Reliance Industries Limited

6 5

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 2009-10

No. of Other
Directorship (s)1

Mukesh D. Ambani
Nikhil R. Meswani
Hital R. Meswani
Hardev Singh Kohli3
P.M.S. Prasad4
R. Ravimohan5
Ramniklal H. Ambani
Mansingh L. Bhakta
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Mahesh P. Modi
S. Venkitaramanan6
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar

Board
Meetings
8
8
8
8
4
3
7
8
8
8
6
1
4
5
5

Last
AGM
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
No
Yes
N.A.
Yes
No
Yes

1
1
2
Nil
5
-
2
5
10
5
Nil
-
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
-
1 (as Chairman)
4 (including 1 as Chairman)
6 (including 2 as Chairman)
6 (including 4 as Chairman)
Nil
-
Nil
1
2

1The Directorships held by Directors as mentioned above, do not include Alternate Directorships and Directorships in Foreign
Companies, Companies Registered under Section 25 of the Companies Act, 1956 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.
3upto May 16, 2010 4w.e.f. August 21, 2009 5from August 21, 2009 to December 28, 2009 6upto 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: Audit Committee of the Board comprises
three independent directors namely Shri Yogendra P.
Trivedi, Chairman, Shri Mahesh P. Modi and Dr.
Raghunath A. Mashelkar (w.e.f. August 21, 2009). Shri
S. Venkitaramanan was a member of the Committee upto
July 24, 2009. Shri R. Ravimohan was member of the
Audit Committee from August 21, 2009 to December 28,
2009. 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.

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 regulatory
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, independence, performance
and remuneration of the statutory auditors, the
performance of internal auditors and the Company’s risk
management policies.

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

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.

6 6

Think Growth. Think Transformation. Think Reliance.

4. To secure attendance of outsiders with relevant

expertise, if it considers necessary.

heading the department, reporting structure,
coverage and frequency of internal audit.

B. The role of the Audit Committee includes:

8. Discussion with Internal Auditors any significant

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 to the Board, the 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.

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.

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

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
the depositors,
any,
debentureholders, shareholders (in case of non
payment of declared dividends) and creditors.

the payment

12. To review the functioning of the Whistle Blower

Mechanism.

13. Carrying out such other functions 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;

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

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.).

Reliance Industries Limited

6 7

Meetings : Six meetings of the Audit Committee were held
during the year ended March 31, 2010, 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

Yogendra P. Trivedi,
Chairman

S. Venkitaramanan1

Mahesh P. Modi

Raghunath A. Mashelkar2

R. Ravimohan3

No. of

meetings meetings
attended

held

1upto July 24, 2009.
2w.e.f. August 21, 2009
3w.e.f. August 21, 2009 upto December 28, 2009

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.

(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.

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.

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, 2010.

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

Name of the Committee
Member

Yogendra P. Trivedi,
Chairman

Dr. Dharam Vir Kapur

Mahesh P. Modi

No. of

meetings meetings
attended

held

(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.

6 8

Think Growth. Think Transformation. Think Reliance.

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;
the conditions under which option vested in
employees may lapse in case of termination of
employment for misconduct;
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;
the specified time period within which the employee
shall exercise the vested options in the event of
termination or resignation of an employee;
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;
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;
the grant, vest and exercise of option in case of
employees who are on long leave; and
the procedure for cashless exercise of options, if any.

Meetings : One meeting of the Employees Stock
Compensation Committee was held during the year ended
March 31, 2010.

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

Name of the Committee
Member

Yogendra P. Trivedi,
Chairman
Mahesh P. Modi
Prof. Dipak C. Jain
Mukesh D. Ambani

(iv) Finance Committee

No. of

meetings meetings
attended

held

1
1
1
1

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 make such reports and
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.

11. Regularly review and make recommendations about

changes to the charter of the Committee

Meetings : Five meetings of the Finance Committee were
held during the year ended March 31, 2010

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

1upto May 16, 2010

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

Name of the Committee
Member

Mukesh D Ambani
Nikhil R Meswani
Hital R Meswani

No. of

meetings meetings
attended
5
5
5

held
5
5
5

Composition : The Health, Safety and Environment
Committee of the Board comprises three Directors,
namely, Shri Hital R. Meswani, Chairman and Dr. Dharam
Vir Kapur and Shri Pawan Kumar Kapil, (w.e.f. May 16,
2010).

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
manufacturing facilities of the Company and compliance
with the relevant statutory provisions.

Reliance Industries Limited

6 9

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

No. of

Hital R. Meswani,

Hardev Singh Kohli1

Dr. Dharam Vir Kapur

meetings meetings
attended
4

held
4

(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: Two meetings of the Remuneration committee
were 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.

Meetings : Four meetings of the Health, Safety and
Environment Committee were held during the year ended
March 31, 2010.
Remuneration paid to the Chairman & Managing Director and the Wholetime Directors, including Stock Options
Rs. in crore
granted during 2009-10:

Name of the Director

Salary

Perquisites
and
allowances

Retiral Commission
payable
benefits

Mukesh D. Ambani
Nikhil R. Meswani
Hital R. Meswani
Hardev Singh Kohli
P.M.S. Prasad
R Ravimohan

4.16
1.04
1.04
0.43
0.53
0.22

0.60
1.45
1.45
0.76
0.83
0.48

5.60
1.05
0.95
0.13
0.17
0.07

4.64
7.60
7.70
-
-
-

Total

15.00
11.14
11.14
1.32
1.53
0.77

Stock
Options
granted
(Nos.)
Nil
Nil
Nil
Nil
Nil
Nil

The Chairman and Managing Director’s compensation has been set at Rs. 15 crore as against Rs. 39.36 crore that he is
elgible as per the shareholders’ approval, reflecting his desire to set a personal example for moderation in managerial
compensation levels.

7 0

Think Growth. Think Transformation. Think Reliance.

The tenure of office of the aforesaid 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 2009-10 are as detailed below :

Name of the Non–Executive Director
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

Sitting Fee
1.40
3.00
4.80
3.20
2.40
0.40
0.80
1.00
1.80

Commission
21.00
21.00
21.00
21.00
21.00
7.00
21.00
21.00
21.00

Rs. in lacs
Total
22.40
24.00
25.80
24.20
23.40
7.40
21.80
22.00
22.80

18.80

175.00

193.80

During the year, the Company has paid Rs. 0.42 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.

(vii) Shareholders’ / Investors’ Grievance 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 : Six meetings of the Shareholders’/Investors’
Grievance Committee (SIGC) were held during the year
ended March 31, 2010.

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. Ambani1
Nikhil R. Meswani
Hital R. Meswani
1upto August 21, 2009

6
6
2
6
6

5
6
2
5
4

Reliance Industries Limited

7 1

Compliance Officer

Procedure at Committee Meetings

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 :
Types of Complaints

Number of
Complaints

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

206
3513

524
510
4753

There were no outstanding complaints as on March 31,
2010. 192 requests for transfers and 650 requests for
dematerialisation were pending for approval as on March
31, 2010, which were approved and dealt with by April 5,
2010. Given below is a chart showing reduction in
investor’s complaints.

Number of Complaints Received

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.

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
2009-10.
Mukesh D. Ambani
Chairman & Managing Director

8. Subsidiary Monitoring Framework

All subsidiary companies of the Company are Board
managed with their Boards having the rights and

7 2

Think Growth. Think Transformation. Think Reliance.

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:
2008-09
Date and Time : November 17, 2009 11.00 a.m.
Nil
Special Resolutions passed

2007-08
Date and Time : June 12, 2008 11.00 a.m.
Special Resolutions passed

Nil

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.

(B) Special Resolution passed through Postal Ballot:

No special resolution was passed through Postal Ballot
during 2009-2010. None of the Businesses proposed to

be transacted in the ensuing Annual General Meeting
require passing a special resolution through Postal Ballot.

10. a. Disclosure on materially significant related party
transactions i.e. transactions of the company of material
nature, with its Promoters, the Directors and 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 disclosure of transactions with
the related parties set out in Notes on Accounts -
Schedule 'O', forming part of the Annual Report.

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 specialization 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 arm length
basis and are intended to further the interests of the
Company.

b. 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.

SEBI has issued Show Cause Notices in connection with
the sale of shares of erstwhile Reliance Petroleum Limited
by the Company. The Company has submitted its reply
to the same.

11. Means of Communication

(a) Quarterly Results : Quarterly Results are published
in ‘The Economic Times’/ ‘Financial Express’/ ‘Indian
Express’ and ‘Maharashtra Times’ / ‘Navshakti’ and
are displayed on the Company’s website www.ril.com.

Reliance Industries Limited

7 3

12. General Shareholder Information
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
is
Affairs
L17110MH1973PLC019786.

(MCA)

Annual General Meeting
(Day, Date, Time and Venue):
Friday, 18th June, 2010 at 11.00 a.m.
Birla Matushri Sabhagar,
19, Marine Lines, Mumbai 400020

Financial Calendar (tentative)
Financial Year : April 1, 2010 to
March 31, 2011

Results for the quarter ending :
June 30, 2010
September 30, 2010 - Fourth week of

- Fourth week of July, 2010

October, 2010
December 31, 2010 - Third week of
January, 2011

March 31, 2011
Annual General Meeting - June, 2011

- Third week of April, 2011

Date of Book Closure

Wednesday, May 12, 2010 to Wednesday May 19,
2010 (both days inclusive) for payment of dividend.

Dividend Payment Date
on or after June 18, 2010.

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.

(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

on Annual Report

queries

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 2008-09. The feedback received from
the shareholders was placed before
the
Shareholders’ / Investors’ Grievance Committee.

7 4

Think Growth. Think Transformation. Think Reliance.

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.
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.

Stock Market Price Data

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 2010-11 (as applicable) has been paid by the
Company to BSE and NSE. Annual maintenance and
listing agency fee for the calendar year 2010 has
been paid by the Company to the Luxembourg Stock
Exchange.

Month

Pre Bonus

April 2009
May 2009
June 2009
July 2009
August 2009
September 2009
October 2009
November 2009

Post Bonus

November 2009
December 2009
January 2010
February 2010
March 2010

Bombay Stock Exchange (BSE)
(In Rs.per share)

National Stock Exchange (NSE)
(In Rs.per share)

Month’s High
Price

Month’s Low
Price

Month’s High Month’s Low

Price

1,844.00
2,490.00
2,372.30
2,085.00
2,123.80
2,210.90
2,304.00
2,225.90

1,110.00
1,120.00
1,184.70
1,059.00
1,109.40

1,497.55
1,838.00
1,847.90
1,718.30
1,865.00
1,887.70
1,921.60
1,806.00

1,011.25
990.00
1,018.00
961.00
979.95

1,840.00
2,535.00
2,379.00
2,183.00
2,125.00
2,239.90
2,285.30
2,225.90

1,111.00
1,120.00
1,149.90
1,056.35
1,111.00

1,497.35
1,836.00
1,900.00
1,717.10
1,867.60
1,923.30
1,922.00
1,802.25

1,011.00
990.00
1,018.10
959.15
979.40

Share Price Performance in comparison to broad
based indices – BSE Sensex and NSE Nifty as on
March 31, 2010

Percentage Change in
BSE
Sensex
81%
12%
34%
170%

NSE
Nifty
74%
11%
37%
158%

RIL
41%
-5%
57%
294%

FY 2009-10
2 years
3 years
5 years

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

Reliance Industries Limited

7 5

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

List of Investor Service Centres of Karvy
Computershare Private Limited is available on the
website of the Company http://www.ril.com.

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

Distribution of Shareholding as on March 31, 2010

Category Category of Shareholder
Code

(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)

41
0

146 39 20 323
0

41 146 39 20 323

2 252

92 39 66 356

35 59 853

76 15 24 365

35 62 105 168 54 90 721

12 09 63 316

35 62 147 327 03 74 360

44.76
0.00

44.76

28.25

23.29

51.54

3.70

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.

Shareholding Pattern by Size as on March 31, 2010

Sl. No.

Category (Shares)

Holders

1
2
3
4
5
6
7
8
9

1
501
1001
2001
3001
4001
5001
10001
Above
TOTAL

-
-
-
-
-
-
-
-
-

500
1000
2000
3000
4000
5000
10000
20000
20000

34 22 648
83 177
35 087
9 056
3 777
2 064
3 322
1 188
1 828
35 62 147

22 78 13 223
5 82 05 198
4 87 00 061
2 20 28 324
1 31 23 519
92 58 527
2 30 58 860
1 64 22 985
285 17 63 663
327 03 74 360

% of Total
Shares

6.97
1.78
1.49
0.67
0.40
0.28
0.71
0.50
87.20
100.00

7 6

Think Growth. Think Transformation. Think Reliance.

Build up of Equity Share Capital

Sl. Particulars
No.

Allotment
Date

October 19, 1975
May 9, 1977

1
2

Shareholders of Sidhpur Mills Co Limited (Merged with the Company)

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) II

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) III

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
Conversion of Loan

3
4
5
6
7
8
9
10 Rights Issue II
11 Debenture Series II Conversion
12 Debenture Series I Conversion Phase II
13
14 Rights Issue II NRI
15 Debenture Series III Conversion
16 Rights Issue II
17
18 Bonus Issue- II
19
20 Debenture Series IV Conversion
21
22
23 Debenture Series I Conversion
24 Debenture Series II Conversion
25
26 Consolidation of Fractional Coupon Shares
27 Debenture Series E Conversion
28 Debenture Series III Conversion
29 Debenture Series IV Conversion
30
31 Consolidation of Fractional Coupon Shares
32
33
34 Debenture Series G Conversion
35 Right Issue III
36 Debenture Series G Conversion
37
38
39

September 28, 1979
December 31,1979
September 19, 1980
December 31, 1980
May 15,1981
June 23, 1981
September 22, 1981
October 6, 1981
December 31, 1981
December 31, 1981
April 12, 1982
June 15, 1982
August 31, 1982
September 9, 1982
December 29, 1982
September 30, 1983
September 30, 1983
September 30, 1983
April 5, 1984
June 20, 1984
October 1, 1984
December 31, 1984
January 31, 1985
April 30, 1985
April 30, 1985
July 5,1985
December 17, 1985
December 31, 1985
December 31, 1985
Shareholders of Sidhpur Mills Co Limited (Merged with the Company) VIII November 15, 1986
April 1, 1987
Shareholders of Sidhpur Mills Co Limited (Merged with the Company) IX
August 1, 1987
February 4, 1988
February 4, 1988
June 2, 1988
Shareholders of Sidhpur Mills Co Limited (Merged with the Company) X
October 31, 1988
Shareholders of Sidhpur Mills Co Limited (Merged with the Company) XI
Shareholders of Sidhpur Mills Co Limited (Merged with the Company) XII November 29, 1990

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) IV
Shareholders of Sidhpur Mills Co Limited (Merged with the Company) V

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) VII

Shareholders of Sidhpur Mills Co Limited (Merged with the Company) VI

No. of
Shares

1 100
59 50 000

9 40 000
6 47 832
45 23 359
8 40 575
24 673
2 43 200
1 40 800
23 80 518
8 42 529
27 168
81 059
774
19 20 000
41
1 942
1 11 39 564
371
64 00 000
617
50
97 66 783
2 16 571
91
45 005
53 33 333
52 835
42 871
106
610
40 284
169
6 60 30 100
3 15 71 695
29 35 380
25
10
322

Sl. Particulars
No.

Allotment
Date

May 22, 1991
Shareholders of Sidhpur Mills Co Limited (Merged with the Company) XIII
Shareholders of Sidhpur Mills Co Limited (Merged with the Company) XIV October 10, 1991
June 3, 1992

40
41
42 Euro Issue GDR-I
43
44

Shareholders of Sidhpur Mills Co Limited (Merged with the Company)
Shareholders of Reliance Petrochemicals Limited
(Merged with the Company)

45 Loan Conversion
46 Debenture Series H Conversion
47 Warrant Conversion (Debenture Series F)
48 Euro Issue GDR II
49 Loan Conversion
50 Warrant Conversion (Debenture Series J)
51
52 Conversion of Reliance Petrochemicals Limited Debentures
53

Shareholders of Reliance Polypropylene Limited and
Reliance Polyethylene Limited (Merged with the Company)

Private Placement of Shares

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
65

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

Shareholders of Reliance Petroleum Limited
(Merged with the Company)

70 Bonus Issue IV
71 ESOS - Allotment

Less : Shares Bought Back and extinguished on January 24, 2005

Total Equity as on March 31, 2010

Reliance Industries Limited

7 7

No. of
Shares

46
25
1 84 00 000
4 060
7 49 42 763

3 16 667
3 64 60 000
1 03 16 092
2 55 32 000
18 38 950
87 40 000
2 45 45 450
75 472

9 95 75 915
74 80 000
544
13 31 042
6 05 068
18 64 766
18 15 755
1 03 475
46 60 90 452
15 68 499
7 624
12 00 00 000
34 26 20 509

December 4, 1992

July 7, 1993
August 26, 1993
August 26, 1993
February 23, 1994
March 1, 1994
August 3, 1994
October 21, 1994
December 22, 1994

March 16, 1995
March 10, 1995
May 24, 1997
July 11, 1997
July 22, 1997
September 13, 1997
October 22, 1997
November 4, 1997
December 20, 1997
December 4, 1997
September 27, 1999
January 12, 2000
October 23, 2002

October 13, 2007
October 3, 2008
Various dates
in 2008-09
September 30, 2009

6 01 40 560
12 00 00 000
1 49 632

6 92 52 623

November 28, 2009
Various dates
in 2009-10

1 62 67 93 078
5 30 426

3 27 32 43 855
- 28 69 495

3 27 03 74 360

7 8

Think Growth. Think Transformation. Think Reliance.

Corporate Benefits to Investors
a. Bonus Issues of Fully Paid-up Equity Shares
Ratio
3:5
6:10
1:1
1:1

Financial Year
1980-81
1983-84
1997-98
2009-10

b. Dividend Declared for the last 10 Years

Financial
Year
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09

Dividend
Declaration
June 13, 2000
June 15, 2001
October 31, 2002
June 16, 2003
June 24, 2004
August 03, 2005
June 27, 2006
March 10, 2007
June 12, 2008
October 7, 2009

Dividend
per Share*
4.00
4.25
4.75
5.00
5.25
7.50
10.00
11.00
13.00
13.00

* Share of paid-up value of Rs. 10 per share.
Note : Dividend of Rs. 7 per share recommended by the
Directors on April 23, 2010 is subject to declaration by
the shareholders at the ensuing Annual General Meeting.
c. 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.
Dematerialisation of Shares

Electronic / Physical
NSDL
CDSL
Physical

%
94.50
2.36
3.14

96.86 % of Company’s Paid up Equity Share Capital has
been dematerialised upto March 31, 2010 (96.46 % upto
March 31, 2009). 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 2009-
2010 is given below:

Shares(nos)
Value
(in Rs. crore)

BSE

NSE
11 35 840 43 76 797 55 12 637

Total

192.72

718.72

911.44

[Source : This information is compiled from the data
available from the websites of BSE and NSE]

Outstanding GDRs / Warrants and Convertible Bonds,
Conversion Date and likely impact on equity

(a) GDRs : Outstanding GDRs as on March 31, 2010
represent 12,09,63,316 equity shares constituting 3.70%
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.
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)

Reliance Industries Limited

7 9

(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

Source : Bank of New York Mellon website

(b) Employee Stock Options : No Options have been
granted in the financial year 2009-10 (previous years
100,200 adjusted for issue of bonus shares). 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.
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.
Plant Locations

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
Gadimoga
Tallarevu Mandal
East Godavari District
Gadimoga – 533 463. Andhra Pradesh, India
Hazira
Village Mora, Bhatha, P.O. Surat
Hazira Road, Surat - 394 510. Gujarat, India.

Hoshiarpur
Dharmshala Road, V.P.O. Chohal
District Hoshiarpur - 146 014. Punjab, 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.
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.
Oil & Gas Blocks
Panna Mukta, Tapti, NEC-OSN-97/2, KG -DWN-98/
3, GS - OSN - 2000/1, GK - OSJ – 3, CB-ON/1, AS-
ONN-2000/1, KG-DWN-2001/1, NEC-DWN-2002/1,
KG - DWN -98/1, MN - DWN 98/2, KG-OSN-2001/2,
KG-OSN-2001/1, CY-PR-DWN-2001/3, PR-DWN-
2001/1, KK-DWN-2001/1, KK-DWN-2001/2, CY-
DWN-2001/2, CY-PR-DWN-2001/4, KG-DWN-2003/1,
MN-DWN-2003/1, CB-ONN-2003/1, KG-DWN-2004/
4, KG-DWN-2004/7, MN-DWN-2004/1, MN-DWN-
2004/2, MN-DWN-2004/3, MN-DWN-2004/4, MN-
DWN-2004/5 and KG-DWN-2005/2.

Address for Correspondence
Investor Correspondence
(i)
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.

8 0

Think Growth. Think Transformation. Think Reliance.

(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

Transfer of unpaid/unclaimed amounts to Investor
Education and Protection Fund

During the year under review, the Company has credited
Rs. 5.80 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

Dividend
Interest on Debentures
Redemption of Debentures
Total amount transferred
during the year

Amount transferred
(Rs. in crore)
5.30
0.02
0.48
5.80

The cumulative amount transferred to IEPF upto March
31, 2010 is Rs. 83.40 crore.
Equity Shares in the Suspense Account
As per Clause 5A of the Listing Agreement, the
Company reports that 1,450 Equity Shares are lying in
the suspense account as on March 31, 2010
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.
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. 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.

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, 2010 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
(Issue of Capital and Disclosure Requirements)
Regulations, 2009;

The Securities and Exchange Board of India
(Employee Stock Option Scheme and Employee
Stock Purchase Scheme) Guidelines, 1999 and

The Securities Contracts (Regulation) Act, 1956
(‘SCRA’) and the Rules made under that Act;

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:

Reliance Industries Limited

8 1

(a) maintenance of various statutory registers and
documents and making necessary entries therein;

(b) closure of the Register of Members / Debenture

holders;

(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, Debenture holders, Debenture
Trustees and the Registrar of Companies;

(e) notice of Board meetings and Committee

meetings of Directors;

(f)

(g)

(h)

the meetings of Directors and Committees of
Directors including passing of resolutions by
circulation;

the 35th Annual General Meeting held on 17
November 2009.;

the scheme of Amalgamation of Reliance
Petroleum Limited with the Company sanctioned
by the Hon’ble Bombay High Court on 29 June
2009 and by the Hon’ble Gujarat High Court on
29 July 2009.

(i) minutes of proceedings of General Meetings and

of Board and its Committee 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;

8 2

Think Growth. Think Transformation. Think Reliance.

(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

(s)

satisfaction of charges;
investment of the Company’s funds including
inter corporate loans and investments and loans
to others;

(u)

(t) giving guarantees in connection with loans taken
by subsidiaries and associate companies;
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 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.

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)

(b)

(c)

(d)

(e)

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
(Issue of Capital and Disclosure Requirements)
Regulations, 2009 with regard allotment of bonus
equity shares.

Dr K R Chandratre
Practising Company Secretary
Certificate of Practice No. 5144

Dated: 12 April 2010

Reliance Industries Limited

8 3

Directors' Report

Dear Shareholders,
Your Directors are pleased to present the 36th Annual Report and the audited accounts for the financial year ended
March 31, 2010.

Financial Results
The financial performance of the Company, for the year ended March 31, 2010 is summarised below:

13,477.01

2,980.48

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

Amount Available for Appropriation
Appropriations:
General Reserve
Debenture Redemption Reserve
Dividend on Equity Shares
Tax on dividend
Balance carried to Balance Sheet

2009-2010
Rs. crore

33,041.18
1,997.21

10,496.53
20,547.44

3,111.77

1,200.00
16,235.67

5,384.19

21,619.86

14,000.00
189.50
2,084.67
346.24
4,999.45
21,619.86

$ Mn*

7,359
445

2,338
4,576

693

267
3,616

1,199

4,815

3,118
42
464
77
1,114
4,815

2008-2009

Rs. crore

$ Mn*

25,373.75
1,745.23

5,003
344

5,195.29
18,433.23

1,025
3,634

7,182.43

1,987.14

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

238

367
3,018

861

3,879

2,312
67
374
64
1,062
3,879

* 1 $ = Rs. 44.90 Exchange Rate as on March 31, 2010 (1 $ = Rs 50.72 as on March 31, 2009)

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. 2,00,400 crore ( $ 44.6 billion) against Rs. 1,46,328 crore in the
previous year. Exports were higher by 24 % at Rs. 1,10,176 crore ($ 24.5 billion).

Profit after tax for the year was Rs. 16,236 crore ($ 3.6 billion) as against Rs. 15,309 crore ($ 3.1 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. 17,972 crore ($ 4.0 billion) was paid in the
form of various taxes and duties

8 4

Think Growth. Think Transformation. Think Reliance.

Dividend

1Exercise Price

Your Directors have recommended a dividend of Rs. 7/-
per Equity Share (last year Rs. 13/- per Equity Share on
pre bonus share capital) for the financial year ended
March 31, 2010, amounting to Rs. 2,430 crore (inclusive
of tax of Rs. 346 crore) one of the highest ever payout
by any private sector domestic company. The dividend
will be paid to members whose names appear in the
Register of Members as on May 11, 2010; in respect of
shares held in dematerialised form, it will be paid to
members whose names are furnished by National
Securities Depository Limited and Central Depository
Services (India) Limited as beneficial owners.

The dividend payout for the year under review has been
formulated in accordance with the Company’s policy to
pay sustainable dividend linked to long term performance,
keeping in view the Company’s need for capital for its
growth plans and the intent to finance such plans
through internal accruals to the maximum.

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

The Company implemented the Employees Stock Option
Scheme (‘‘Scheme’’) 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, 2010 (cumulative position) are
given below:

1Options Granted

2,98,13,100 (Pre Bonus)
5,96,26,200 (Post Bonus)

Pre Bonus

Option
Granted

Exercise
Price

Post Bonus
Option Exercise
Price
Granted

2,87,28,000
27,000
10,08,000
50,100

1284* 5,74,56,000
54,000
1684*
20,16,000
2292*
1,00,200
1289*

642*
842*
1146*
644.5*

* Plus applicable taxes, as per law
1In view of issue of Bonus shares in the ratio of one share
for every one share held as on record date, the number
of Options has been doubled and Exercise Price halved.

c. Options Vested
d. Options Exercised
e. The total number of shares arising as a

56,88,200
10,71,912
10,71,912

result of exercise of Options

f. Options Lapsed
g. Variation in terms of Options :

85,94,874

Subject to the conditions under the Scheme, the
vesting schedule from April 2009 onwards has been
deferred by one year, save and except the options
due for deceased employees.

h. Money realised by exercise

68,81,67,504

499,59,414

14,00,000
14,00,000
1,00,000
10,00,000

of Options
Total number of Options in force
[(a) - (d) - (f)]
Employee wise details of Options granted
(Post Bonus) to:
i. Senior managerial personnel
1. Shri Nikhil R.Meswani
2. Shri Hital R. Meswani
3. Shri Hardev Singh Kohli
4. Shri P.M.S. Prasad
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

Nil

Reliance Industries Limited

8 5

m. 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. 49.65

The issuance of equity shares pursuant to exercise of
Options does not affect the profit and loss account of
the Company, as the exercise is made at the market price
prevailing as on the date of the grant plus taxes as
applicable,

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 by the shareholders. 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
area of oil and gas, refining and petrochemicals
businesses. While benefits from such contracts will
accrue in future years, their progress is periodically
monitored.

Some of the major events of the year include the
following :

KG D6 completed 365 days of 100% uptime and zero-
incident production. Gas production from KG D6 has
ramped up to 60 MMSCMD in a short span of 9 months
from commencement. KG D6 has current production of
about 60 MMSCMD. The design capacity of the KG D6
deepwater gas production facilities were assessed and
achieved a flow rate of 80 MMSCM.

GSPAs have been executed in line with the Government
of India's gas utilization policy for over 69 MMSCMD in
the fertilizers, power, city gas distribution, steel, LPG,
refinery and petrochemical sectors.

During the year, development of Panna-K (PK) area was
completed.

The Company had made four new gas discoveries during
the year,
• Dhirubhai-43 in Well AA1 in CB10 block
• Dhirubhai-44 in Well R1 in KGVD3 block
• Dhirubhai-45 in Well BF1 in CB10 block
• Dhirubhai-46 in Well AH1 in CB10 block

Subsequent to series of new discoveries in the southern
and deeper areas of the KG D6 block, an optimized
development plan has been submitted to DGH in
December 2009.

Major events after the end of the financial year till the
date of this report are as under.

•

The Company entered into a joint venture with USA
based Atlas Energy, Inc. (Atlas) under which the
Company acquired 40% interest in Atlas's core
Marcellus Shale acreage position.

The Company has become a partner in approximately
300,000 net acres of undeveloped leasehold in the
core area of the Marcellus Shale in southwestern
Pennsylvania for an acquisition cost of US$ 339
million and an additional US$ 1.36 billion capital
costs under a carry arrangement for 75% of Atlas's
capital costs over an anticipated seven and a half
year development program. While Atlas will serve as
the development operator, Reliance is expected to
begin acting as development operator in certain
regions in the coming years as part of the joint
venture.

• Atlas will continue acquiring leasehold in the
Marcellus shale region and the Company will have
the option to acquire 40% share in all new acreages.
The Company has also obtained the right of first
offer with respect to potential future sales by Atlas
of around 280,000 additional Appalachian acres
currently controlled by Atlas (not included in the
present joint venture).

The Hon'ble Supreme Court of India has delivered its
judgment in the RNRL-RIL legal dispute. The judgment
recognized the dominant role of the provisions of the
Production Sharing Contract and has upheld the policies
formulated by the Government under which it has the
authority to regulate the production and distribution of
natural gas.

8 6

Think Growth. Think Transformation. Think Reliance.

In view of the findings of the judgment, the Company
can sell gas only at the price approved by the Government
and only to the entities who have been allocated gas
under the Gas Utilisation Policy. RIL has no ability to
deviate from price, quantity and tenure as determined
under Government’s policies, or to discriminate amongst
various consumers.

The judgment of the Hon’ble Supreme Court has set at
rest numerous issues which had been raised in relation
to the gas discovered and produced by the Company.

Subsidiaries

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 Pawan Kumar Kapil was appointed as an additional
Director effective May 16, 2010. He was also appointed
as wholetime director designated as Executive Director
for three years. In terms of Section 260 of the Companies
Act, 1956 he shall hold office only upto the date of the
ensuing Annual General Meeting. The Company has
received requisite notice in writing from a member
proposing his candidature for the office of Director liable
to retire by rotation.

Shri Hital R. Meswani, Shri Mahesh P. Modi, Dr. Dharam
Vir Kapur, Dr. Raghunath A. Mashalkar, Directors, retire
by rotation and being eligible, offer themselves for
reappointment at the ensuing Annual General Meeting.

Your Directors express their profound grief on the
unexpected sudden demise of Shri R. Ravimohan on
December 28, 2009.

Shri H. S. Kohli, Director has resigned from the Board
effective May 16, 2010.

The Board placed on record its deep sense of
appreciation for the invaluable contribution made by Shri
H. S. Kohli and Shri R. Ravimohan during their tenure as
wholetime directors of the Company.

Group

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, 2010, 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, 2010 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.

Reliance Industries Limited

8 7

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.

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, 2010, 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, M/s. V. Kumar & Associates, Cost
Accountants.

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, 2010, is provided in the Annual Report.

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. 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

8 8

Think Growth. Think Transformation. Think Reliance.

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 and adhere to the
Corporate Governance requirements set out by SEBI. The
Company has also implemented several best corporate
governance practices as prevalent globally.

With a view to strengthening the Corporate Governance
framework, the Ministry of Corporate Affairs has
incorporated certain provisions in the Companies Bill
2009. The Ministry has issued a set of voluntary
guidelines in the second half of December 2009 for
adoption by the companies. The Guidelines broadly
outline conditions for appointment of directors (including
independent directors), guiding principles to remunerate
directors, responsibilities of the Board, risk management,
the enhanced role of Audit Committee, rotation of audit
partners and firms and conduct of secretarial audit. Your
Company while already complying by and large with
these various requirements has already initiated
appropriate action for compliance.

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 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
May 12, 2010

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 2009-10 are listed below:

Allahabad Manufacturing Division
• Energy savings has been achieved by combining
steam jet ejectors used in polymeriser for providing
vacuum during polymerisation reaction, minimising
the operation of Mono Ethylene Glycol (MEG)
refining column by recycling process recovered
MEG directly to reaction in Continuous
Polymerisation (CP) and optimising utility
equipment operation in Utilities plant.

Barabanki Manufacturing Division
• Installation of the lowest diameter impeller in

process cooling water pumps at utilities.

• Reduction in power consumption by optimising
lighting load of entire manufacturing division.

Dahej Manufacturing Division
• Improvement in steam generation by increasing
steam generation temperature at Gas Cracker Unit
(GCU).

• Lowering of discharge pressure in Compressed Gas
(CG) compressor due to improvement in operational
practices at GCU.

• Optimisation of energy performance of EO
Scrubber (C-115) using ASPEN TECH at MEG
plant.

• Improvement in heat recovery by upgradation in
Material of Construction (MOC) of First Effect
Evaporator Reboiler (E-530) at MEG plant.

• Reduction in steam consumption by stoppage of
one light end (LE) column by process side
improvements at Vinyl Chloride Monomer (VCM)
plant.

• Replacement of old inefficient pumps with new
energy efficient pumps in Cooling tower (CT 04) at
Utilities.

Reliance Industries Limited

8 9

• Improvement in steam generation by recovering
waste heat from vent gases through new heat
exchanger E-1122N at Cracker plant.

• Fuel gas preheating from ambient to 7OC in four
gas turbines (GTs) using waste heat from stack at
Captive Power Plant & Utilities (CPP&U) plant.

Hoshiarpur Manufacturing Division
• Optimisation of steam consumption in Draw
machines in Polyester Staple Fiber (PSF) plants.

Jamnagar Manufacturing Division
• Reduction in consumption of steam by decreasing
operating pressure of Naphtha Splitter &
Depentaniser column by process side
improvements in Aromatics Plant.

• Recovery of hydrogen by diverting Isomer
separator gas to platformer recontact loop, which
originally was downgraded to unsaturated gas
header in Aromatics Plant.

• Reduction in power consumption of fuel gas
compressor by providing new tube bundle with
additional baffles in inter stage cooler in Hydrogen
Manufacturing Unit -2.

• Minimising Medium Pressure (MP) steam
consumption in naphtha splitter reboiler by
recovering more heat from Light Cycle Gas Oil
(LCGO) stream in Coker Plant.

• Recoveries of additional process heat into cold
leg from Light Vacuum Gas Oil (LVGO) pump
around in Crude Distillation Unit (CDU) 1.

• Reduction in MP steam consumption used as
motive steam in ejectors for Vacuum Distillation
Units (VDU) 1 & 2 by process side improvements.

Jamnagar Manufacturing Division (SEZ)
• Saving of 10 TPD of flaring by installation of low
range pressure transmitters on each unit’s flare
knock-out drums for identification of flare sources
in Low Low Pressure (LLP) flare.

• Reduction in captive steam generation is achieved
by decreasing motive steam pressure in all ejector
stages in crude-3 & 4 units, decreasing High
Pressure (HP) steam consumption in PRT 1 & 2 at
Fluidised Catalytic Cracker (FCC) Plant & by
putting restricted orifices in coke drum steam purge
valves at Coker Plant

• Minimisation of hydrogen flaring by improvement
in hydrogen recovery generated as byproduct of
Chlor-Alkali (CA) plant & used in Captive Power
Plant (CPP) boilers in place of purchased fuel, by
installation of new hydrogen compressor (3rd) at
CA plant.

• Reduction in energy consumption by replacement

of main reactor membrane in CA plant.

• Identification & replacement of faulty steam traps
& minimisation of steam leakages done in CPP &
yard piping at CPP plant.

• Recovery of steam condensate from surface
condenser of main turbine (TD-0301) at EPRU.
• Minimisation of lube oil vent flaring by rerouting
of Expander-Booster (KE-302) lube oil tank vent
from flare header to fuel gas header at Ethylene
Propylene Recovery (EPRU).

• Process to process heat recovery by provision of
dehydrator regeneration gas-gas exchanger at
EPRU.

• Implementation of offline fuel optimiser for CPP.
Hazira Manufacturing Division
• Autocut provision for dryer fan motors when
drawline is stopped for more then 30minutes in
Polyester Staple Fiber (PSF), Polyester Fiber Fill
(PFF) & CP - 11 plants.

• Replacement of all the motors running below 40%
loading with low rating motors or variable
frequency drives (VFD) in PSF plant.

• Reduction

in nitrogen consumption

in
PolyEthylene Teraphthalate (PET) / Partially
Oriented Yarn (POY) plants by arresting system
leaks & optimising consumption in CP-12 Solid
State Polymerisation (SSP) and Purified
Terephthalic Acid (PTA) bin filter in all CP plants.
• Reduction in power consumption by conversion
of Industrial Yarn (IDY) godet drives on all positions
from “delta” to “star” electrical configuration in
POY / PET Plants.

• Optimisation of Hiboil reflux ratio in main column

at VCM plant.

• Improvement in steam generation by performing
convection section cleaning in furnaces at VCM
and Cracker plants.

9 0

Think Growth. Think Transformation. Think Reliance.

• Reduction in fuel consumption by changing the
burner tips for all the furnaces in Platformer.

Nagpur Manufacturing Division
• Reduction in contract demand from 4500 KVA to
4250 KVA to avail rebate on account of improvement
in load factor.

Nagothane Manufacturing Division
• Reduction in power consumption of ethylene

compressor 30-K02 by minimising the interstage
kickback flow in Low Density Poly Ethylene
(LDPE) plant.

Naroda Manufacturing Division
• Replacement of inefficient screw compressors to
energy efficient centrifugal compressors for Air-
jet Looms in Worsted Spinning Plant.

Patalganga Manufacturing Division
• Revamping of insulation in Thermax heater 1 & 2

with Monolane lining.

• Improvement in steam generation capacity of Heat
Recovery Steam Generator (HRSG) - 2 by Dry Ice
Cleaning.

Silvassa Manufacturing Division
• Reduction in compressed air generation at supply
air blowers by combining supply air plenum in
Texturising Plant 1.

Vadodara Manufacturing Division
• Improvement in heat recovery by replacement of
combined Feed to Effluent Exchanger from Shell
and Tube to Helical Baffle type heat exchanger in
PACOL section at the Linear Alkyl Benzene (LAB)
Plant.

• Stoppage of operation of three pumps and column
by recovering process to process heat from splitter
column overheads to recycle paraffin stream at the
LAB Plant.

• Improvement in High pressure (HP) steam
generation by replacement of Transfer line
Exchangers (TLE) with OLMI make TLE in 4 heaters
in Naphtha Cracker Plant.

(b) Additional investments / proposals being implemented

for reduction of consumption of energy:

Dahej Manufacturing Division

• Improvement in heat recovery by increase in

residue gas exchanger area at the GCU.

• Enhancements in heat recovery by installation of
new E-521 exchanger and by rerouting of recycle
water at MEG plant.

Hazira Manufacturing Division
• Usage of MP steam in 2 rolls of annealer in place
of HP steam in the Continuous Polymerisation (CP)-
11 plant.

• Replacement of 65 no. of under-loaded motors with

lower rating motors in CP 11 plant.

• Installation of VFD on cooling tower fans, dow
circulation pumps, forced draft fans, HP
Compressor and comfort air blowers in POY plant
utilities.

• Replacement of existing bowed superheating
modules of HRSG – 1 and 2 with drainable and
finned super heaters in CPP Plant.

• Reduction in main column pressure to minimise
consumption of MP steam by 1 Ton Per Hour (TPH)
in VCM plant.

• Utilisation of furnace quenches outlet heat to
generate chilled water (CHW) by using Vapour
Absorption Chillers (VARs) in VCM plant.

• Utilisation of waste vented Low Pressure (LP)
steam to increase deaerator water temperature in
Cracker Plant.

Jamnagar Manufacturing Division (DTA)
• Improvement in heat recovery by replacing Shell
& Tube Heat Exchanger to new Plate-Frame type
Rich/lean Amine Exchanger in Amine Treatment
Unit (ATU) – 4.

Jamnagar Manufacturing Division (SEZ)
• Reduction of MP steam consumption by re-routing
LCGO pump around to stripper re-boiler in Coker-
2.

• Heat integration of sweet Vacuum Gas Oil (VGO)
in VGO Hydrotreater (VGOHT) -3 & 4 Unit with
Crude in CDU -3 & 4.

• Heat recovery by installation of Feed to Effluent
heat exchanger (S-03 C/D) in Diesel Hydro
Desulphurisation (DHDS) -2 unit.

Reliance Industries Limited

9 1

• Improvement in recovery of hydrocarbons in Flare
Gas Recovery System (FGRS) by routing of
regeneration gases with high nitrogen
concentration to LLP flare in Propylene Recovery
Unit (PRU).

Vadodara Manufacturing Division
• Optimisation of steam load on HRSG & Aux Boilers

in CPP plant.

(c) Impact of measures at (a) & (b) given above, for
reduction of energy consumption and consequent
impact on the cost of production of goods:

Allahabad Manufacturing Division
• Energy savings worth Rs 636 lakh per year has
been achieved by combining steam jet ejectors
used in polymeriser for providing vacuum during
polymerisation reaction, minimising the operation
of Mono Ethylene Glycol (MEG) refining column
by recycling process recovered MEG directly to
reaction in Continuous Polymerisation (CP) and
optimising utility equipment operation in Utilities
plant.

Barabanki Manufacturing Division
• Saving in power consumption worth Rs 5 lakh per
year has been achieved by installation of the lowest
diameter impeller in process cooling water pumps
at utilities.

• Reduction in power consumption by optimising
lighting load of entire complex, thus saving Rs.2
lakh per year towards power consumption.

Dahej Manufacturing Division
• Improvement in steam generation worth Rs. 205
lakh per year, by increasing steam generation
temperature at the GCU.

• Energy savings worth Rs. 109 lakh per year has
been achieved by lowering of discharge pressure
in Compressed Gas (CG) Compressor due to
improvement in operational practices at the GCU.
• Optimisation of performance of EO Scrubber (C-
115) using ASPEN TECH at MEG plant, thus saving
Rs. 86 lakh per year towards energy consumption.
• Energy savings worth Rs. 36 lakh per year has
been achieved by improvement in heat recovery
by upgradation in Material of Construction (MOC)
of First Effect Evaporator Reboiler (E-530) at the
MEG plant.

• Reduction in steam consumption worth Rs. 472
lakh per year has been achieved, by stoppage of
one light end (LE) column by process side
improvements at the VCM plant.

• Replacement of old inefficient pumps with new
energy efficient pumps in cooling tower 04 at
Utilities, resulting in power savings worth Rs. 69
lakh per year.

• Minimisation of hydrogen flaring worth Rs. 440
lakh per year has been achieved by improvement
in hydrogen recovery generated as byproduct of
Chlor-Alkali (CA) plant & used in CPP boilers in
place of purchased fuel, by installation of new
hydrogen compressor (3rd) at CA plant.

• Reduction in energy consumption worth Rs. 661
lakh per year has been achieved by replacement of
main reactor membrane in CA plant.

• Identification & replacement of faulty steam traps
& minimisation of steam leakages done in CPP &
yard piping at CPP plant, thus saving Rs. 72 lakh
per year towards steam generation.

• Recovery of steam condensate from surface
condenser of main turbine (TD-0301), worth Rs.
366 lakh per year has been achieved at EPRU.
• Minimisation of lube oil vent flaring by rerouting
of Expander-Booster (KE-302) lube oil tank vent
from flare header to fuel gas header at EPRU, thus
saving Rs. 149 lakh per year towards fuel gas
consumption.

• Energy savings worth Rs. 60 lakh per year has
been achieved by process to process heat recovery
by provision of dehydrator regeneration gas-gas
exchanger at EPRU.

• Fuel savings worth Rs. 275 lakh per year has been
achieved by implementation of offline fuel
optimiser for CPP.

• Estimated saving worth Rs. 79 lakh per year can be
achieved by improvement in heat recovery by
increase in residue gas exchanger area at GCU.
• Estimated saving worth Rs. 114 lakh per year can
be achieved by enhancement in heat recovery by
installation of new E-521 exchanger and by
rerouting of recycle water at MEG plant.

9 2

Think Growth. Think Transformation. Think Reliance.

Hazira Manufacturing Division
• Autocut provision for dryer fan motors when
drawline is stopped for more than 30minutes in
PSF, PFF and CP 11 plants, thus saving Rs. 53 lakh
per year.

• Replacement of all the motors running below 40%
loading with lower rating motors or VFDs in PSF
plant, resulted in energy savings worth Rs. 40 lakh
per year.

• Savings worth Rs. 102.6 Lakh per year has been
achieved by reduction in nitrogen consumption
by arresting system leaks & optimising
consumption in CP-12 SSP & PTA bin filter in all
CPs at POY / PET plants.

• Reduction in power consumption by conversion
of Industrial Yarn (IDY) godet drives on all positions
from “delta” to “star” in POY/PET Plants, resulting
in savings worth Rs. 11 lakh per year.

• Optimisation of Hiboil reflux ratio in main column
at VCM plant, thus saving Rs. 110 lakh per year.
• Energy savings worth Rs. 345 Lakh per year has
been achieved by improvement in steam generation
by performing convection section cleaning in
furnaces at VCM and Cracker plants.

• Improvement in captive steam generation by
recovering waste heat from vent gases through
new heat exchanger E-1122N in cracker plant,
resulting in savings worth Rs. 28 lakh per year.
• Savings worth Rs. 60 Lakh per year has been
achieved by fuel gas preheating from ambient to
70 OC to four GTs using waste heat from stack flue
gases at CPP&U plant.

• Potential savings of Rs. 26 lakh per year can be
achieved by using MP steam in 2 rolls of annealer
in place of High Pressure (HP) steam in CP 11 plant
• Power savings worth Rs. 62 lakh per year can be
achieved by replacement of 65 no. of under-loaded
motors with lower rating motors in CP 11 plant.
• Estimated power savings worth Rs. 89 lakh per
year can be achieved by installation of VFD on
cooling tower fans, dow circulation pumps, forced
draft fans, HP Compressor and comfort air blowers
in POY plant and utilities

• Replacement of existing bowed superheating
modules of HRSG – 1 and 2 with drainable and
finned super heaters in CPP Plant will result in an
estimated energy saving potential of Rs. 517 lakh
per year.

• Estimated savings worth Rs. 43 lakh per year can
be achieved by reduction in main column pressure
to minimise consumption of MP steam by 1 Ton
Per Hour in VCM.

• Utilisation of furnace quench outlet heat to
generate Chilled water (CHW) by using Vapour
Absorption Chillers (VARs) with energy saving
potential of Rs. 91 lakh per year in VCM.

• Savings worth Rs. 81 Lakh per year is estimated &
can be achieved by utilisation of waste / vented
LP steam to increase deaerator water temperature
in Cracker Plant.

Hoshiarpur Manufacturing Division
• Savings worth Rs. 45 lakh per year has been
achieved by change-over from oil fired boiler to
wood fired boiler for steam generation in Utilities.
• Savings worth Rs. 33 lakh per year has been
achieved by optimisation of steam consumption
in Draw machines in PSF Plants.

Jamnagar Manufacturing Division
• Savings worth Rs. 269 Lakh per year has been
achieved by reduction in consumption of steam
by decreasing operating pressure of Naphtha
Splitter & Depentaniser column by process side
improvements in Aromatics.

• Savings worth Rs. 34 Lakh per year has been
achieved by recovery of hydrogen by diverting
Isomer separator gas to platformer recontact loop,
which originally was downgraded to unsaturated
gas header in Aromatics.

• Savings worth Rs. 60 lakh per year has been
achieved by reduction in power consumption of
fuel gas compressor by providing new tube bundle
with additional baffles in inter stage cooler in
Hydrogen Manufacturing Unit HMU-2.

• Savings worth Rs. 160 lakh per year has been
achieved by minimising MP steam consumption
in naphtha splitter reboiler by recovering more heat
from LCGO stream in Coker Plant.

Reliance Industries Limited

9 3

• Savings worth Rs. 590 Lakh per year has been
achieved by recovery of additional process heat
into cold leg from LVGO pump around in CDU 1.
• Savings worth Rs. 410 Lakh per year has been
achieved by reduction in motive MP steam
consumption in ejectors for VDU 1 & 2 by process
side improvements.

• Estimated energy savings worth Rs. 680 Lakh per
year can be achieved by improvement in heat
recovery by replacing Shell & Tube Heat
Exchanger to new Plate-Frame type Rich/lean
Amine Exchanger in Amine Treatment Unit (ATU)
– 4.

Jamnagar Manufacturing Division (SEZ)
• Fuel savings worth Rs. 176 Lakh per year has been
achieved by installation of low range pressure
transmitters on each unit’s flare knock-out drums
for identification of flare sources in LLP flare.
• Savings worth Rs. 4,340 lakh per year has been
achieved by reduction in captive steam generation
is achieved by decreasing motive steam pressure
in all ejector stages in Crude - 3 & 4 units,
decreasing HP steam consumption in PRT 1 & 2 at
FCC Plant & by putting restricted orifices in coke
drum steam purge valves at Coker Plant.

• Savings worth Rs. 44 lakh per year has been
achieved by reduction in fuel consumption by
changing the burner tips for all the furnaces in
Platformer.

• Estimated savings worth Rs. 773 lakh per year can
be achieved by reduction of MP steam
consumption by re-routing LCGO pump around to
stripper re-boiler in Coker-2 plant.

• Estimated savings worth Rs. 752 lakh per year can
be achieved by heat integration of sweet VGO in
VGOHT -3 & 4 Unit with Crude in CDU -3 & 4.
• Estimated savings worth Rs. 397 lakh per year can
be achieved by heat recovery by installation of
Feed to Effluent heat exchanger (S-03 C/D) in Diesel
Hydro Desulphurisation (DHDS) -2 unit.

• Estimated savings worth Rs. 43 lakh per year can
be achieved by improvement in recovery of
hydrocarbons in FGRS by routing of regeneration
gases with high nitrogen concentration to LLP flare
in PRU.

Nagpur Manufacturing Division
• Power saving worth Rs.30 lakh per annum has been
achieved in power bill by reduction in the contract
demand from 4500 KVA to 4,250 KVA.

Nagothane Manufacturing Division
• Energy savings worth Rs. 26 lakh per year has

been achieved by reduction in power
consumption of ethylene compressor 30-K02 by
minimising the interstage kickback flow in LDPE
plant.

Naroda Manufacturing Division
• Energy savings worth Rs. 7 lakh per year has been
achieved by replacement of screw compressors to
centrifugal compressors for Air-jet Looms in
Worsted Spinning Plant.

Patalganga Manufacturing Division
• Energy savings worth Rs. 84 lakh per year has
been achieved by revamping of insulation in
Thermax heater 1 & 2 with Monolane lining.
• Energy savings worth Rs. 310 lakh per year has
been achieved by improvement in steam generation
capacity of HRSG – 2 by Dry Ice Cleaning.

Silvassa Manufacturing Division
• Energy savings worth Rs. 40 lakh per year has
been achieved by reduction in generation of
compressed air at supply air blower by combining
supply air plenum in Texturising Plant I.

Vadodara Manufacturing Division
• Energy savings worth Rs. 127 lakh per year has
been achieved by improvement in heat recovery
by replacement of combined Feed to Effluent
Exchanger from Shell and Tube to Helical Baffle
type heat exchanger in PACOL section at LAB
Plant.

• Energy savings worth Rs. 88 lakh per year has
been achieved by stoppage of operation of three
pumps and column by recovering process to
process heat from splitter column overheads to
recycle paraffin stream at LAB Plant.

• Energy savings worth Rs. 360 lakh per year has
been achieved by improvement in HP steam
generation by replacement of Transfer line
Exchangers (TLE) with OLMI make TLE in four
heaters in Naphtha Cracker Plant (NCP).

9 4

Think Growth. Think Transformation. Think Reliance.

• Estimated energy savings worth Rs. 88 lakh per
year can be achieved by optimisation of steam
loading on HRSG & Aux Boilers in CPP plant.

(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

(cid:2) Modeling of corrosion in multi phase flow systems.

(cid:2) Development of dehydrogenation catalyst for

Linear Alkyl Benzene (LAB).

(cid:2) Polyolefin catalyst precursor development.

(cid:2) Development of the catalyst ligands for production
of disentangled ultra-high molecular weight
polyethylene.

(cid:2) Catalyst for specialty grade polymers.

(cid:2) Development of high melt strength (HMS) grades

Research and Development (R&D)

of Polypropylene.

1. Specific areas in which the research and development

(R&D) is being carried out by the Company

(cid:2) Development, evaluation and selection of Fluidized
catalytic cracker (FCC) catalyst and additives.

(cid:2) Expansion of FCC experimental facilities.

(cid:2) Technology development to process cheaper and

(cid:2) Biaxially-oriented polypropylene (BOPP) and
Impact copolymer (ICP) grades of polypropylene
development.

(cid:2) Development of beta-nucleated high performance

Random copolymers (RCP) pipe grade PP.

(cid:2) Development of high pressure pipe grade HDPE.

heavier refining feedstocks.

(cid:2) Design of futuristic BOPP grades.

(cid:2)

Improving of higher value streams recovery from
vacuum distilling units.

(cid:2) Development of cost effective material for solar

modules.

(cid:2) Computational fluid dynamics (CFD) studies for

(cid:2) Development of low pill polyester in continuous

trouble shooting in plant operation.

reactor.

(cid:2) Molecular modeling for refining feedstock

(cid:2) Development of full dull dope dyed polyester.

characterization.

(cid:2) Upgrading of coker streams in FCC.

(cid:2) Development of moisture management polyester.

(cid:2) Cheaper spin finish development for partially

(cid:2) Development of catalytic process for on-purpose

oriented yarn (POY).

Hexene-1 and Octene-1 from ethylene.

(cid:2) New catalyst systems development for bottle-

(cid:2) Development of an alternative solvent for ethylene

grade resin productivity enhancement.

polymerization.

(cid:2) Regenerable adsorbent for BTX (benzene, toluene

and xylenes).

(cid:2) Bio-filtration technology development for waste

water treatment.

(cid:2) Adsorbent for enhancement of shelf life of fruits

and vegetables.

(cid:2) Development of catalyst

for selective

hydrogenation of dienes and acetylenes.

(cid:2) New PTA (Purified Terephthalic Acid) technology

development in progress.

(cid:2) Catalyst recovery from CTA (Crude Terephthalic

Acid) residue.

(cid:2) Finishes for specialty products in polyester.

(cid:2) Hollow and bulky fibres development.

2. Benefits derived as a result of the above R&D

(cid:2) Potential benefit of Rs. 50 crore / annum from

improved FCC performance.

(cid:2) Potential benefit of Rs. 16 crore / annum from

upgrading of coker streams in FCC.

(cid:2) Benefit of Rs. 12 crore / annum from higher furnace

efficiency in VDU.

(cid:2) Benefit of Rs. 10 crore / annum saved on design
and downtime costs for refinery flare seal drum.

(cid:2) Savings of Rs. 5 crore / annum by using in house

dehydrogenation catalyst.

Reliance Industries Limited

9 5

(cid:2) Potential benefits of Rs. 29 crore / annum from

(cid:2) Development of specialty polypropylene grades.

Polyolefin catalyst precursor development.

(cid:2) Potential benefits of Rs. 2 crore / annum for high

melt strength (HMS) PP.

(cid:2) Potential benefits of Rs. 2 crore / annum for Solar

module.

(cid:2) Potential benefits of Rs. 32 crore / annum from

polyester R&D projects.

3. Future plan of action

(cid:2) Advanced characterization facilities for refining

catalysts.

(cid:2) Specialty Chemicals from C6 to C8 olefin mixture

streams.

(cid:2) Process for PTA from inexpensive raw material.

(cid:2) Reforming Catalyst for xylenes production.

(cid:2)

Improvement in spinning productivity through
additives.

(cid:2) High tenacity industrial yarn development.

(cid:2)

Implementation of polyester catalysts developed
in production.

(cid:2) New spinneret's design for productivity increase.

(cid:2) Up-scaling of moisture management yarns.

(cid:2) Barrier property enhancement for PET resin.

4. Expenditure on R & D

a) Capital

b) Revenue

c) Total

Rs. crore

207.33

137.71

345.04

(cid:2) Microbial and photocatalytic processes for

d) Total R & D expenditure is 0.17% of total turnover.

effluent treatment.

(cid:2) Anticoking additives for thermal cracking of

hydrocarbons.

(cid:2) Catalyst for ethylene oxidation.

(cid:2) Micro-meso porous and nano materials for

catalytical applications.

(cid:2) Materials for natural gas storage.

(cid:2) Acrylic acid from ethylene.

Technology absorption, adoption and innovation

1. Efforts, in brief, made towards technology absorption,

adoption and innovation:

(cid:2) Processing of high Nickel feedstock in FCC unit.

(cid:2) Development and evaluation of better catalysts
and additives for FCC using in-house designed
facilities.

(cid:2) Efforts for upgrading low value FCC bottom in

(cid:2) Development of Ethyl Benzene dealkylation

coker.

catalyst for aromatics plant.

(cid:2) Development of new process for upgrading of light

(cid:2) Development of dilutant used in polymerization

olefins to diesel.

(HDPE).

(cid:2) Enhancing propylene recovery in refinery.

(cid:2) Super absorbent polymers.

(cid:2) Composite adsorbent for catalyst removal in

(cid:2) Self-healing polybutadiene rubber for tire

Polyethylene plants.

application

(cid:2) Wax reduction for Polyethylene plants.

(cid:2) PP grades for foamed products.

(cid:2) Recovery of ammonium sulphate from waste

(cid:2)

Inorganic materials from spent catalysts.

(cid:2) Modeling and simulation of PX (Paraxylene)

oxidation reactor.

(cid:2)

Implementation of separation facility for PTA.

(cid:2) Advanced generation catalyst systems for

polypropylene.

(cid:2) Development of functional polyolefins

(cid:2) High performance additives for polymers.

stream of ACN plant.

(cid:2) Process for moisture removal from refrigerant

gases.

(cid:2) CFD modeling of combustion systems.

(cid:2) High capacity revamps in paraxylene plants.

(cid:2) Adsorbent change in paraxylene plants.

(cid:2)

Innovative method for increasing Benzene /olefin
ratio in alkylation at LAB plant.

9 6

Think Growth. Think Transformation. Think Reliance.

(cid:2)

Innovation in plastic processing technology to
obtain high performance products.

In-house technology development for low pill
polyester.

(cid:2) Bottle to Bottle plant commissioning.

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.

(cid:2) Cheaper spin finishes trials established for usage.

2. Benefits derived as a result of the above efforts

(cid:2) Benefit of Rs.15 crore / annum in cost of FCC

catalyst and additive.

(cid:2) Benefit of Rs. 4 crore / annum through enhanced
sales of spent refinery catalyst to other refineries.

(cid:2) Wax reduction in PE (Polyethylene) production
has a potential value generation of Rs. 8 crore /
annum.

The company has continued to maintain focus
and avail of export opportunities based on
economic considerations. During the year the
company has exports (FOB value) worth
Rs.1,10,176 crore (US$ 24,538 million).

(g) Total Foreign exchange earned and used

Rs. Crore

a. Total Foreign Exchange Earned

1,02,701.00

b. Total savings in foreign exchange

(cid:2) Chemical grade recovery of ammonium sulphate

through products manufactured by

the Company and deemed exports

72,729.95

(US$ 16,198.21 Million)

sub total (a+b)

c. Total foreign Exchange used

1,75,430.95

1,67,434.29

has potential benefit of Rs. 2 crore / annum.

Information regarding Imported Technology

Product

Technology Year of
Import
Import
From

Polypropylene at
Jamnagar.

M/s DOW 2008-09
– USA

Specialty grades of M/s DOW 2008-09
Polypropylene
at Hazira .

– USA

Status
implement-
ation /
absorption

Successfully
absorbed.
and
implemented.

Reliance Industries Limited

9 7

Current Year

Previous Year

3,337.19
134.89
4.04

47,052.53
4.93
2,309.48
4.91

949.72
4.16
5.83

55,353.33
4.39
2.81

24.24

92,781.54
186.28
20.08

2,860.00
9.33
32.62

3,800,717.26
4,033.09
10,611.39

27,896.98
5.71
2,047.90

3,361,717.54

831,596.35

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

32.16

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

1,952,133.20

1,839,821.77

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 / Wood Fire

Quantity (MT)
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 8

Think Growth. Think Transformation. Think Reliance.

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
4,670
769
365
310
615
512
438
560
333
668
291
198
73
669
2,706
690

Year
4,969
700
357
305
610
458
429
567
309
666
270
208
73
646
2,574
479

Current
Year
2
12
21
2
27
-
-
-
-
42
-
40
9
-
-
-

For and on behalf of the Board of Directors

Mukesh D. Ambani
Chairman & Managing Director

May 12, 2010

Previous Current Previous Current
Year
475
75
81
9
263
52
34
19
55
109
75
315
73
512
89
(54)

Year
-
8
-
-
1
3
1
1
-
-
-
-
-
13
5
-

Year
2
39
36
6
84
-
-
-
-
42
-
10
5
-
-
-

Year
-
11
1
-
20
28
7
3
2
-
-
-
-
217
15
16

Previous
Year
488
27
37
-
114
39
26
14
17
79
46
187
39
244
76
(15)

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 2010, 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
(Registration No. 117366W)
(Registration No. 101720W)

Chartered Accountants
(Registration No. 108355W)

D. Chaturvedi
Partner
Membership No.: 5611 Membership No.: 31467

A. Siddharth
Partner

A. R. Shah
Partner
Membership No.:47166

Mumbai
May 12, 2010

Reliance Industries Limited

9 9

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

Sr No

Name of the Entity

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

Aavaran Textiles Private Limited
Abhayaprada Enterprises LLP
Adisesh Enterprises LLP
Ajitesh Enterprises LLP
Amur Trading Private Limited
Anumati Mercantile Private Limited
Badri Commercials LLP
Bahar Trading Private Limited
Bhumika Trading Private Limited
Bhuvanesh Enterprises LLP
Chakradev Enterprises LLP
Chakradhar Commercials LLP
Chakresh Enterprises LLP
Chhatrabhuj Enterprises LLP
Deccan Finvest Private Limited
Devarshi Commercials LLP
Ekansha Enterprise Private Limited
Eklavya Mercantile Privatre Limited
Farm Enterprises Limited
Futura Commercials Private Limited
Harinarayan Enterprises LLP
Hercules Investments Private Limited
Jagadanand Investments And Trading
Company Private Limited
Jagdishvar Investments And Trading
Company Private Limited
Janardan Commercials LLP
Jogiya Traders Private Limited
Kamalakar Enterprises LLP
Kankhal Investments And Trading
Company Private Limted
Kardam Commercials Pirvate Limited
Karuna Commercials LLP
Kedareshwar Investments And Trading
Company Private Limited
Krish Commercials Private Limited
32
Kshitij Commercials Private Limited
33
34 Madhuban Merchandise Private Limited
35
36
37
38
39

Narahari Enterprises LLP
Neutron Enterprises Private Limited
Nikhil Investments Company Private Limited
Nityapriya Commercials Private Limited
Ornate Traders Private Limited

25
26
27
28

29
30
31

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
73
74
75
76
77

Pams Investments And Trading
Company Private Limited
Pavana Enterprises LLP
Petroleum Trust
Pitambar Enterprises LLP
Priyash Commercials Private Limited
Real Fibres Private Limited
Reliance Aromatics & Petrochemicals
Private Limited
Reliance Chemicals Limited
Reliance Consolidated Enterprises
Private Limited
Reliance Consultancy Services Private Limited
Reliance Energy & Project Development
Private Limited
Reliance Global Commercial Limited
Reliance Industrial Infrastructure Limited
Reliance Petroinvestments Limited
Reliance Polyolefins Limited
Reliance Ports and Terminals Limited
Reliance Universal Commercial Limited
Reliance Universal Enterprises Private Limited
Reliance Utilities and Power Private Limited
Reliance Utilities Private Limited
Reliance Welfare Association
Rishikesh Enterprises LLP
Samarjit Enterprises LLP
Sanatan Textrade Private Limited
Shripal Enterprises LLP
Silvassa Hydrocarbons And
Investments Private Limited
Srichakra Commercials LLP
Sudarshan Enterprises
Svar Enterprises LLP
Synergy Synthetics Private Limited
Taran Enterprises LLP
Tattvam Enterprises LLP
Terene Industries Private Limited
Tresta Trading Private Limited
Trilokesh Commercials LLP
Vasuprada Enterprises LLP
Vishatan Enterprises LLP
Vita Investments & Trading
Company Private Limited

100

Think Growth. Think Transformation. Think Reliance.

Financial Statements & Notes

Reliance Industries Limited

101

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,
2010, 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.

e) On the basis of written representations received from
the Directors as on March 31, 2010 and taken on
record by the Board of Directors, we report that
none of the Directors is disqualified as on March 31,
2010 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, 2010;

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 For Rajendra & Co.
Chartered Accountants Chartered Accountants
(Registration No. 117366W)
(Registration No. 101720W)

Chartered Accountants
(Registration No. 108355W)

Further to our comments in the Annexure referred to in
paragraph 3 above, we report that:

D. Chaturvedi
Partner
Membership No.: 5611 Membership No.: 31467

A. Siddharth
Partner

A. R. Shah
Partner
Membership No.:47166

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;

Mumbai
April 23, 2010

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.

102

Think Growth. Think Transformation. Think Reliance.

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 to 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. 5,541.44 crore and the year-
end balance is Rs. 2,649.54 crore.
In our opinion and according to the information and
explanations given to us, the rate of interest and other
terms and conditions of the loans given by the
Company, 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 interests 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, 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 purchases
of inventory and fixed assets and 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.

(b)

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 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, 2010 for a

Annexure to Auditors’ Report
Referred to in Paragraph 3 of our report of even date

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, 2010 to
be credited to Investor Education and Protection Fund
of Rs. 7.02 crore, which are held in abeyance due to
pending legal cases, have not been considered.

b) The disputed statutory dues aggregating Rs. 311.76
crore, that have not been deposited on account of
disputed matters pending before appropriate
authorities are as under:
Nature of
the Dues

Name of
the Statute

Amount
(Rs in
crore)

Period to
which the
amount
relates

Forum where
dispute is
pending

Sr.
No

Income Tax
Act, 1961

Income-Tax /
Penalties

5.43

2006-07

Central Excise
Act, 1944

Excise Duty
and Service
Tax

Central Sales Tax
Act, 1956 and
Sales Tax Acts
of various states

Sales Tax/
VAT and
Entry Tax

Customs Act,
1962

Custom Duty

0.58

17.02

69.38

48.84

17.52

115.15

0.90

16.68

20.26

Various years
from 2002-03
to 2005-06

Various years
from 1991-92
to 2007-08

Various years
from 1986-87
to 2007-08

Various years
from 1991-92
to 2008-09

Various years
from 1992-93
to 2006-07

Various years
from 1997-98
to 2004-05
2007-08

Various years
from 2002-03
to 2007-08

2004-05
and 2005-06

Commissioner of
Income-Tax
(Appeals)

Income-Tax
Appellate
Tribunal

Commissioner of
Central Excise
(Appeals)

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

311.76

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.

12.

In our opinion and according to the explanations given to
us and based on the information available, no loans and

Reliance Industries Limited

103

advances have been granted by the Company on the basis
of security by way of pledge of shares, debentures and
other securities.

13.

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 interest of the Company.

16. The Company has raised new terms 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. The Company has not made any preferential allotment
of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.

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

issues during the year.

21.

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 For Rajendra & Co.
Chartered Accountants Chartered Accountants
(Registration No. 117366W)
(Registration No. 101720W)

Chartered Accountants
(Registration No. 108355W)

D. Chaturvedi
Partner
Membership No.: 5611 Membership No.: 31467

A. Siddharth
Partner

A. R. Shah
Partner
Membership No.:47166

Mumbai
April 23, 2010

104

Think Growth. Think Transformation. Think Reliance.

Reliance Industries Limited
Balance Sheet as at 31st March, 2010

SOURCES OF FUNDS

Shareholders’ Funds
Share Capital
Equity Share Suspense
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

Schedule

As at
31st March, 2010

(Rs. in crore)

As at
31st March, 2009

3,270.37
-
1,33,900.24

11,670.50
50,824.19

2,15,864.71
62,604.82
1,53,259.89
12,138.82

26,981.62
11,660.21
13,462.65
91.40
52,195.88
10,183.22
62,379.10

36,849.40
3,565.43
40,414.83

‘A’

‘B’

‘C’
‘D’

‘E’

‘F’

‘G’

‘H’

‘I’

‘N’
‘O’

1,573.53
69.25
1,24,730.19

1,37,170.61

1,26,372.97

10,697.92
63,206.56

62,494.69
10,926.30

2,10,591.60

73,904.48
9,726.30

2,10,003.75

1,49,628.70
49,285.64
1,00,343.06
69,043.83

1,65,398.71
23,228.62

1,69,386.89
21,606.49

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

21,964.27

2,10,591.60

19,010.37

2,10,003.75

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
April 23, 2010

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
P.M.S. Prasad
H.S. Kohli
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain

Dr. R. A. Mashelkar} Directors

Reliance Industries Limited
Profit and Loss Account for the year ended 31st March, 2010

Reliance Industries Limited

105

Schedule

2009-10

(Rs. in crore)

2008-09

2,00,399.79
7,938.77

1,46,328.07
4,480.60

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 4, Schedule ‘O’]
Adjustment pursuant to the scheme of Amalgamation including
write off of Investments in Reliance Petroleum Limited
Less: Transferred from General Reserve

‘L’
‘M’

13,477.01
2,980.48

-
-

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

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
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 13, Schedule ‘O’]
Significant Accounting Policies
Notes on Accounts

‘N’
‘O’

As per our Report of even date

14,000.00
189.50
-
2,084.67
346.24

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
April 23, 2010

V.M. Ambani
Company Secretary

1,92,461.02
2,460.47
3,947.89
1,98,869.38

2,995.82
1,62,832.38
1,997.21

1,41,847.47
2,059.88
427.56
1,44,334.91

2,205.27
1,16,755.89
1,745.23

7,182.43
1,987.14

10,496.53

5,195.29

7,728.92
7,728.92

11,728.92
340.05
1,897.05
-
322.40

-
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

48.63

49.68

-
1,78,321.94
20,547.44
3,111.77
-
1,200.00
16,235.67
5,384.19
21,619.86

16,620.41
4,999.45

49.65

Chairman & Managing Director

Executive Directors

}

For and on behalf of the Board
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
H.S. Kohli
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain

Dr. R. A. Mashelkar} Directors

106

Think Growth. Think Transformation. Think Reliance.

Reliance Industries Limited
Cash Flow Statement for the year 2009-10

A: CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit before tax as per Profit and Loss Account

20,547.44

18,433.23

2009-10

(Rs. in crore)

2008-09

Adjusted for:

Net Prior Year Adjustments

Diminution in the value of investment

Investment written off (net)

Loss on Sale / Discarding of Fixed Assets (net)

Depreciation

Transferred from Revaluation Reserve

Effect of Exchange Rate Change

Profit on Sale of Current Investments (net)

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

1.35

0.15

18.38

0.60

13,477.01

(2,980.48)

(1,837.42)

(238.43)

(2.41)

(2,108.41)

1,997.21

(7,379.98)

(12,144.90)

14,223.40

2.14

3.44

7.08

7,182.43

(1,987.14)

575.57

(425.40)

(29.81)

(1,564.97)

1,745.23

8,327.55

28,874.99

5,508.57

23,941.80

(109.91)

159.01

(3,847.36)

(5,301.48)

23,573.51

(1.35)

(3,081.94)

20,490.22

(21,942.67)

113.19

(1,98,866.11)

1,97,660.74

2,626.01

2,201.93

2.41

(18,204.50)

(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)

Reliance Industries Limited

107

Cash Flow Statement for the year 2009-10 (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 (used in) / from Financing Activities

Net (Decrease) / Increase in Cash and Cash Equivalents

Opening Balance of Cash and Cash Equivalents
Add: On Amalgamation

22,176.53
-

Closing Balance of Cash and Cash Equivalents

2009-10

(Rs. in crore)

2008-09

53.54

6,530.64

(11,598.22)

(234.86)

(2,219.45)

(3,531.25)

(10,999.60)

(8,713.88)

22,176.53

13,462.65

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

4,280.05
2.24

Note :
Loans / Deposit given to Subsidiaries / Associate aggregating to Rs. 196.86 crore (Previous Year Rs. 5,380.04 crore) 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
April 23, 2010

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
P.M.S. Prasad
H.S. Kohli
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain

Dr. R. A. Mashelkar} Directors

108

Think Growth. Think Transformation. Think Reliance.

Schedules forming part of the Balance Sheet

SCHEDULE ‘A’

SHARE CAPITAL

Authorised:

500,00,00,000 Equity Shares of Rs. 10 each

(250,00,00,000)

100,00,00,000 Preference Shares of Rs. 10 each
(50,00,00,000)

As at
31st March, 2010

(Rs. in crore)

As at
31st March, 2009

5,000.00

1,000.00

6,000.00

2,500.00

500.00

3,000.00

Issued, Subscribed and Paid up:

327,03,74,360 Equity Shares of Rs. 10 each fully

3,270.37

(157,37,98,233) paid up

Less: Calls in arrears - by others
(Rs. 3,922.50)

1,573.79

0.26

Notes:

TOTAL

210,85,63,630
(48,17,70,552)

65,25,91,982
(58,33,39,359)

45,04,27,345
(45,04,27,345)

3,270.37

1,573.53

Shares out of the issued and subscribed share capital were allotted as Bonus Shares by
capitalisation of Securities Premium and Reserves.

Shares out of the issued and subscribed share capital 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 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.

In the year 2004-05 the Company bought back and extinguished 28,69,495 equity shares.

5. The Company has reserved issuance of 13,82,78,892* (Previous Year 13,88,09,318*) 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 not granted any Options to the eligible employees [Previous Year 1,00,200* options at a price of Rs. 644.50/-*
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 or such other period as may be decided by the Employees Stock Compensation Committee from the date of grant based
on specified criteria.

During the year, the Company has issued and allotted 5,30,426 (Previous Year 1,49,632) equity shares to the eligible employees
of the Company and its Subsidiaries under ESOS of which 2,42,222 equity shares were allotted pre-bonus and 2,88,204 equity
shares post bonus.

* Adjusted for issue of bonus shares in 2009-10 in the ratio of 1:1.

Reliance Industries Limited

109

Schedules forming part of the 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 4, Schedule 'O']

Capital Reserve

As per last Balance Sheet

Capital Redemption Reserve

As per last Balance Sheet

Less: Capitalised on Issue of Bonus Shares

Securities Premium Account

As per last Balance Sheet

Add : Premium on issue of shares

Add: On Amalgamation

Less: Premium on redemption / buy back of debentures / Bonds

Less: Capitalised on Issue of Bonus Shares

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

Profit and Loss Account

TOTAL

As at
31st March, 2010

(Rs. in crore)

As at
31st March, 2009

11,784.75

2,980.48

887.94

51,456.76

50.97

51,507.73

80.19

738.85

50,688.69

0.02

927.07

189.50

54,000.00

14,000.00

68,000.00

871.26

12,900.63

13,771.89

1,987.14

8,804.27

11,784.75

291.28

887.94

21,313.80

16,727.04

13,429.09

51,469.93

13.17

51,456.76

1.80

50,688.67

51,454.96

587.02

340.05

1,116.57

927.07

50,000.00

11,728.92

61,728.92

7,728.92

68,000.00

4,999.45

1,33,900.24

54,000.00

5,384.19

124,730.19

* Cumulative amount withdrawn on account of Depreciation on Revaluation is Rs. 2,563.43 crore.

110

Think Growth. Think Transformation. Think Reliance.

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, 2010

As at
31st March, 2009

(Rs. in crore)

9,682.82

8,642.12

570.00

2,020.00

1,234.67

183.01

35.80

1,417.68

11,670.50

35.80

10,697.92

1. Debentures referred to in A above to the extent of:

a) Rs. 2,283.00 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. 5,000.00 crore are secured by way of first mortgage / charge on the immovable properties situated at Jamnagar Complex

(other than SEZ unit) of the Company.

c) Rs. 1,970.00 crore are secured by way of first mortgage / charge on all the properties situated at Hazira Complex and at

Patalganga Complex of the Company.

d) Rs. 175.00 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.

e) 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.

f) 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.

g) 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.

h) 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

111

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, 2010 and the last being on 8th December, 2018. The debentures are redeemable as follows: Rs. 175.00 crore in
financial year 2010-11, Rs. 655.00 crore in financial year 2011-12, Rs. 3,043.69 crore in financial year 2012-13, Rs. 4,466.26 crore
in financial year 2013-14, Rs. 408.83 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. 503.34 crore in financial year 2018-19.

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.

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, 2010

As at
31st March, 2009

(Rs. in crore)

42,373.97

3,899.30

4,532.61

52,480.53

4,512.46

46,273.27

56,992.99

6,188.49

2.68

4,532.61

18.31

50,824.19

6,191.17

22.40

63,206.56

Short term loan from banks include commercial paper of Rs. 500.00 crore. (Previous Year Rs. NIL).

[Maximum balance outstanding at any time during the Year being Rs. 8,500.00 crore (Previous Year Rs. NIL)].

112

Think Growth. Think Transformation. Think Reliance.

Schedules forming part of the Balance Sheet

SCHEDULE ‘E’

FIXED ASSETS

D e s c r i p t i o n

Gross Block

D e p r e c i a t i o n

Net Block

As at
01-04-2009

Additions

Deductions/
Adjustments

As at
31-03-20 10

For the
Year

Upto
31-03-20 10

As at
31-03-20 10

As at
31-03-2009

(Rs. in crore)

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

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

2,535.62
447.06
8,641.46
11,624.14
1,49,628.70
1,04,229.10

0.33
23.89
483.64
62,068.35
750.28
2,414.82
15.89
47.23
1.01
-
65,805.44

194.61
-
194.61

486.31
21.25
-
507.56
66,507.61
45,706.24

-
31.71
1.76
115.45
1.90
48.20
4.07
45.33
11.71
10.47
270.60

-
-
-

-
1.00
-
1.00
271.60
306.64

1,55 6.01
1,136.29
7,366.66
1,82,852.87
3,480.33
5,804.77
477.32
277.80
385.76
68.42
2,03,406.23

317.80
9.98
327. 78

3,021.93
467.31
8,641.46
12,130.70
2,15,864.71
1,49,628.70

62.32
-
301.81
12,271.22
176.50
261.10
36.12
38.98
15.20
9.34
13,172.59

42.81
-
42.81

130.78
42.81
88.02
261.61
13,477.01*
7,182.43

133.03
-
2,016.03
55,027.11
1,217.06
964.98
275.77
138.28
225.51
20.37
60,018.14

111.58
9.98
121. 56

1,411.90
368.99
684.23
2,465.12
62,604.82
49,285.64

1, 422.98
1,136.29
5,350.63
1,27,825.76
2,263.27
4,839.79
201.55
139.52
160.25
48.05
1,43,388.09

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

206.22
-
206.22

54.42
-
54.42

1,610.03
98.32
7,957.23
9,665.58
1,53,259.89
1,00,343.06
12,138.82

1,254.50
120.88
8,045.25
9,420.63
1,00,343.06

69,043.83

NOTES :
a)

Leasehold Land includes Rs. 203.19 crore (Previous Year Rs. 203.19 crore) in respect of which lease-deeds are pending execution.

Buildings include :

Cost of shares in Co-operative Housing Societies Rs. 1.00 crore (Previous Year Rs. 1.00 crore).

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 :

Jetties amounting to Rs. 646.97 crore (Previous Year 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. 7,994.49 crore) in preference shares of subsidiaries and lease premium paid with right to

hold and use Land and Buildings.

Capital Work-in-Progress includes :

Rs. 1,453.20 crore (Previous Year Rs. 17,095.19 crore) on account of Project development expenditure.

ii) Rs. 810.44 crore (Previous Year Rs. 2,610.23 crore) on account of cost of construction materials at site.

iii) Rs. 453.07 crore (Previous Year Rs. 5,509.61 crore) on account of advance against capital expenditure.

e) Gross Block includes Rs. 12,900.63 crore added on revaluation of Building, Plant & Machinery and Equipments as at 01.01.2009 and
Rs. 22,497.34 crore added on revaluation of Building, Plant & Machinery, Electrical Installations and Equipments as at 01.08.2005,
based on reports issued by international valuers.

Additions and Capital Work-in-Progress include Rs. 5,313.81 crore (net gain) [Previous Year Rs. 1,174.14 crore (net loss)] on
account of exchange difference during the year.

Refer to Note 4, Schedule 'O'

* * Other than internally generated

Reliance Industries Limited

113

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’

INVESTMENTS

As at
31st March, 2010

(Rs. in crore)

As at
31st March, 2009

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

10.00

3.93

0.61

12,04,20,000 Gujarat Chemicals Port Terminal Company

12.04

(12,04,20,000) Limited of Re. 1 each

20,50,000 Reliance Utilities Private Limited Class ‘A’

(20,50,000) Shares of Re. 1 each

19,90,000 Reliance Utilities and Power Private Limited

(19,90,000) Class ‘A’ Shares of Re. 1 each

0.21

0.20

26.99

In Preference Shares - Unquoted, fully paid up

50,00,00,000 9% Non Cumulative Redeemable Preference

2,000.00

(50,00,00,000) 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 of

16.30

(68,60,064) Rs. 10 each

- Portland General Electric Company Common

(8,572) Stock Equity

In Equity Shares - Unquoted, fully paid up

22,500 Reliance LNG Limited of Rs. 10 each

(22,500)

16.30

0.02

In Equity Shares of Subsidiary Companies - Unquoted, fully paid up
14,75,04,400 Reliance Industrial Investments and Holdings

147.50

(14,75,04,400) Limited of Rs.10 each

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

50,00,001 RIL ( Australia) Pty Limited of Aus $ 1 each

(50,00,001)

42,450 Reliance Industries (Middle East) DMCC of

(42,450) AED 1000 each

2.02

17.46

46.19

0.02

10.00

3.93

0.61

30.42

0.21

0.20

45.37

2,000.00

2,026.99

2,045.37

16.30

0.82

17.12

0.02

16.32

17.14

147.50

2,351.05

2.02

17.46

46.19

114

Think Growth. Think Transformation. Think Reliance.

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

As at
31st March, 2010

(Rs. in crore)

As at
31st March, 2009

10,00,00,000 Reliance Jamnagar Infrastructure Limited of

100.00

(10,00,00,000) 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 of

210.84

(1,76,200) AED 1000 each

250,000 Reliance Global Management Services Limited of

0.25

(250,000) Rs. 10 each
2,00,000 Reliance Global Business B.V. of

(2,00,000) Euro 0.01 each

0.01

6,265.32

In Equity Shares of Subsidiary Company - Unquoted, partly paid up

610,00,00,000 Reliance Retail Limited of Rs. 10 each
(Rs. 3.00 each paid up)

(610,00,00,000)

1,830.00

In Preference Shares of Subsidiary Companies - Unquoted, fully paid up

499,57,55,311 Reliance Global Business B.V. ‘A’ Class Shares

324.40

(-) of Euro 0.01 each

- 5% Cumulative Redeemable Non Convertible

(10,00,000) Preference Shares of Reliance Ventures Limited

of Re. 1 each

100.00

3,390.00

210.84

0.25

0.01

6,265.32

610.00

10.00

4,02,800 9% Compulsorily Convertible Preference Shares

112.78

4,216.92

(1,50,60,415) of Reliance Strategic Investments Limited of

Re. 1 each

3,37,824 5% Non Cumulative Compulsorily Convertible

454.36

(2,57,600) Preference Shares of Reliance Industries
(Middle East) DMCC of AED 1000 each

17,00,316 5% Non Cumulative Compulsorily Convertible 2,123.23

(11,55,316) Preference Shares of Reliance Exploration &

Production DMCC of AED 1000 each

18,50,000 10% Non-Cumulative Optionally Convertible

925.00

(25,50,000) Preference Shares of Reliance Jamnagar

Infrastructure Limited of Rs. 10 each

- 10% Non-Cumulative Optionally Convertible

(35,00,000) Preference Shares of Reliance Industrial

Investments and Holdings Limited Rs. 10 each
62,000 Reliance Netherlands B.V. - ‘A’ Class Shares of

(-) Euro 1 each

0.38

3,940.15

In Preference Shares of Subsidiary Company - Unquoted, partly paid up
1,37,000 Reliance Netherlands B.V. ‘A’ Class Shares of
(-) Euro 1 each (Euro 0.54 each paid up)

0.45

In Debentures of Subsidiary Companies - Unquoted, fully paid up
2,79,90,000 0% Unsecured Convertible Debentures of
(2,79,90,000) Reliance Industrial Investments and Holdings

Limited of Rs 100 each

0.45

279.90

355.04

1,464.76

1,275.00

1,750.00

9,071.72

279.90

Reliance Industries Limited

115

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

8,83,143 0% Unsecured Convertible Debentures
(8,83,143) of Reliance Industrial Investments and

Holdings Limited of Rs 5,000 each

As at
31st March, 2010

(Rs. in crore)

As at
31st March, 2009

441.58

721.48

441.58

721.48

12,757.40

16,668.52

In Others

88 Pass Through Certificates (PTC) issued by

0.33

1.87

(88)

Indian Residential MBS Trust
Total (A)

B. CURRENT INVESTMENTS

Other Investments

14,801.06

18,732.92

In Government Securities - Quoted

6.05% GOI 2019

7.59% GOI 2016

In Treasury Bills - Quoted

364 Days Treasury Bills

Collateralized Borrowing & Lending Obligation

5.04

In Certificate of Deposit with Scheduled
Banks - Quoted

3,973.27

In Public Sector Undertaking / Public
Financial Institution & Corporate
Bonds - Quoted

- Citi Financial Consumer Finance India Limited

(600)

1,250 EXIM Bank of India

125.00

(1,500)

7,537 Housing Development Finance Corporation Limited 774.43

(3,600)

3,600 Infrastructure Development Finance

346.52

(2,350) Company Limited

2,050 Indian Railway Finance Corporation Limited

206.16

(-)

8,500 LIC Housing Finance Limited

(-)

- National Bank for Agricultural and

(1,350) Rural Development

850.03

372.96

6.66

23.29

1,338.31

60.00

150.00

359.06

234.52

135.21

116

Think Growth. Think Transformation. Think Reliance.

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

As at
31st March, 2010

(Rs. in crore)

As at
31st March, 2009

1,250 National Housing Bank Limited

(-)

3,400 Power Finance Corporation Limited

(-)

124.48

348.11

8,950 Rural Electrification Corporation Limited

895.45

(-)

- State Bank of Mysore

(50)

In Commercial Paper - Unquoted

Housing Development Finance
Corporation
Infrastructure Development Finance
Company Limited

3,670.18

-
-
7,648.49

In Units-Unquoted

1,75,66,322 ICICI Prudential Institutional Liquid Plan -
(-) Super Institutional Growth of Rs. 100 each

239.00

13,00,69,316 HDFC Liquid Fund - Premium Plan - Growth

240.00

(-) of Rs. 10 each

58,39,951 ICICI Prudential Flexible Income Plan

100.00

(-) Premium - Growth of Rs. 100 each

4,95,83,326 HDFC Cash Management Fund -Treasury

100.07

(-) Advantage Plan - Wholesale - Growth

of Rs. 10 each

6,61,43,253 LIC MF Floating Rate Fund - Short Term

100.00

(-) Plan - Growth of Rs. 10 each

779.07

Total (B)

Total (A+B)

Note :

5.00

943.79

95.97

92.59
188.56
2,873.57

8,427.56

23,228.62

2,873.57

21,606.49

Pursuant to the Debt Restructuring Scheme of Gujarat Chemicals Port Terminal Company Limited, the face value of the Equity
Shares has reduced from Rs.10 per share to Re. 1 per share.

AGGREGATE VALUE OF

Quoted Investments

Unquoted Investments

As at
31st March, 2010

(Rs. in crore)

As at
31st March, 2009

Book Value Market Value

7,664.79

15,563.83

8,248.22

2,678.84

2,930.63

18,927.65

Reliance Industries Limited

117

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

Investments purchased and sold during the year

Mutual Fund Units
Axis Liquid Fund - Growth
Axis Short Term Fund - Growth
Axis Treasury Advantage Fund - Growth
Birla Sunlife Cash Plus - Institutional Premium - Growth
Birla Sun Life Saving Fund Institutional - Growth
DSP BlackRock Cash Manager Fund - Institutional Plan - Growth
DSP BlackRock Floating Fund - Institutional Plan - Growth
DSP BlackRock Liquidity Fund - Institutional Plan - Growth
HDFC Liquid Fund - Premium Plan - Growth
HDFC Liquid Fund - Premium Plus Plan - Growth
HDFC Cash Management Fund -Treasury Advantage Plan - Wholesale - Growth
ICICI Prudential Flexible Income Plan Premium - Growth
ICICI Prudential Gilt Fund - Investment Plan - Growth
ICICI Prudential Institutional Liquid Plan - Super Institutional Growth
ICICI Prudential Ultra Short Term Plan Super Premium Growth
IDFC Cash Fund - Super Institutional Plan - C Growth
IDFC Money Manager Fund - Treasury Plan - Super Institutional Plan - C Growth
LICMF Liquid Fund - Growth Plan
LICMF Income Plus Fund - Growth Plan
LICMF Floating Rate Fund - Short Term Plan - Growth Plan
LICMF Savings PlusFund - Growth Plan
SBI - Magnum Insta Cash Fund - Cash Option
SBI Premier Liquid Fund - Institutional - Growth
SBI Premier Liquid Fund - Super Institutional - Growth
SBI - SHF - Ultra Short Term Fund - Institutional Plan - Growth
Tata Floater Fund - Growth
Tata Liquid Super High Investment Fund - Appreciation
Templeton India Treasury Management Super Institutional Plan - Growth
UTI Liquid Cash Plan Institutional - Growth
UTI Treasury Advantage Fund - Institutional Plan - Growth
UTI Money Market Mutual Fund Institutional Plan - Growth
Government Securities :
6.05% GOI 2019
7.56% GOI 2014
6.07% GOI 2014
6.35% GOI 2020
6.49% GOI 2015
7.35% GOI 2024
7.94% GOI 2021
6.90% GOI 2019
7.02% GOI 2016

Corporate Bonds
8% HDFC 2011
8% IDFC 2011
6.05% LICHF 2011
11.25% PFC 2018
8.55% IRFC 2019
6.84% HDFC 2011
6.90% LIC 2011

Face Value
(Rs.)

Nos.
(in lakhs)

Cost
(Rs. in crore)

1,000
10
1,000
10
10
1,000
1,000
1,000
10
10
10
100
10
100
10
10
10
10
10
10
10
10
10
10
10
10
1,000
1,000
1,000
1,000
1,000

100
100
100
100
100
100
100
100
100

Face Value
(Rs.)

10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000

39.35
1,001.02
9.88
62,816.48
19,175.74
17.20
15.25
19.07
2,76,304.09
197.85
60,901.55
44,062.72
318.30
2,80,832.55
2,196.51
1,794.78
925.04
40,740.81
183.49
14,871.03
1,047.16
4,980.87
1,720.75
8,677.14
8,961.31
735.40
11.83
7.36
113.36
175.55
428.39

1,225.00
240.00
625.00
2,155.00
300.00
50.00
440.00
610.00
1,845.00

Nos.

1,000
1,650
50
250
250
5,600
2,550

400.00
100.10
100.01
9,145.14
3,312.40
200.00
200.01
250.00
49,908.50
35.00
12,092.75
16,523.38
100.00
60,387.27
225.00
200.00
100.01
6,772.94
22.00
2,228.42
150.02
1,009.00
250.00
1,250.00
1,066.17
100.01
200.00
100.00
1,685.24
2,152.32
4,402.00

1,183.08
255.65
614.86
2,010.50
296.93
50.00
465.11
592.95
1,806.89

Cost
(Rs. in crore)

100.00
166.27
4.93
29.16
25.20
557.82
254.27

118

Think Growth. Think Transformation. Think Reliance.

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)
Investments purchased and sold during the year

6.75% LIC 2011
8.88% IDFC 2011
8.49% PFC 2011
11.75% REC 2011
8.60% IRFC 2019
7.60% LIC 2012
11.40% PFC 2013
8% REC 2014
8.60% PFC 2014
9.90% HDFC 2018
0% HDFC 2012
9.90% HDFC 2011
7.90% REC 2012
0% HDFC 2011
9.22% PFC 2012
11.50% REC 2013
11.25% HDFC 2018
0% LIC 2010
6.42% NHB 2012
0% IDFC 11-Jan-11
6.55% NHB 2012
0% IDFC 15-Apr-11
6.77% NHB 2013
0% HDFC 8-Feb-2012
6.75% NHB 2012
7.24% LIC 23-Jun-11
8.40% OVL 23-Dec-14

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

Face Value
(Rs.)
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000
10,00,000

Nos.

150
350
600
250
400
400
600
250
250
171
250
250
2,150
3,600
250
450
100
1,500
1,500
1,650
500
250
250
500
250
250
350

Cost
(Rs. in crore)
14.93
36.01
61.74
27.51
40.00
40.12
66.88
24.80
25.38
18.19
25.04
26.20
215.46
367.22
26.16
50.25
11.45
141.36
150.00
154.45
49.97
22.95
24.90
50.00
24.78
24.92
34.55

As at
31st March, 2010

(Rs. in crore)

As at
31st March, 2009

2,801.31
15,023.40
2,878.85
6,278.06

12.91
11,647.30

3,514.85
6,112.85
2,193.89
3,015.13

26,981.62

14,836.72

13.55
4,557.83

11,660.21

4,571.38

11.84

11.72

349.16
1.36

13,100.29

487.03
1.38

21,676.40

13,462.65

22,176.53

Reliance Industries Limited

119

Schedules forming part of the Balance Sheet

SCHEDULE ‘G’ (Contd.)
CURRENT ASSETS

OTHER CURRENT ASSETS
Interest Accrued on Investments

Premium Accrued on Investments in Preference Shares $

As at
31st March, 2010

(Rs. in crore)

As at
31st March, 2009

91.40

47.59

0.27

91.40

47.86

TOTAL

52,195.88

41,632.49

Includes Rs. 2,978.18 crore (Previous Year Rs. 359.29 crore) receivable from Subsidiaries.

Includes balances with non scheduled banks as follows:

Bank of China
Citi, China, Guangzhou
Citi, London
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

As at 31st
March, 2010 March, 2009

(Rs. in crore)
Maximum Balance at
any time during the year

-
0.05
0.05
-
0.27
0.04
0.05
0.03
0.76
0.11

0.02
0.04
-
0.13
0.15
0.09
0.05
0.03
0.85
0.02

2009-10
0.07
0.07
0.64
0.35
0.27
0.22
0.20
0.09
3.59
0.19

2008-09
0.10
0.15
-
0.30
0.40
0.67
0.30
0.18
5.91
0.54

Premium accrued on Investments in Preference Shares represents Rs. NIL (Previous Year Rs. 0.27 crore) receivable on investments
in Non Convertible Preference Shares of Reliance Ventures Limited, a wholly owned subsidiary of the Company.

SCHEDULE ‘H’

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*

2,576.21

Less: Considered Doubtful

69.88

Deposits*

Balance with Customs, Central Excise Authorities, etc.

TOTAL

As at
31st March, 2010

(Rs. in crore)
As at
31st March, 2009

2,936.02

1,267.49

2,506.33

2,240.53

1,232.85

10,183.22

4,041.80

69.88

4,534.74

1,167.10

3,971.92

2,263.22

1,142.80

13,079.78

Advances recoverable includes Rs. 602.32 crore (Previous Year Rs. 1,583.72 crore) and Deposits include Rs. 351.97 crore
(Previous Year Rs. 341.27 crore) recoverable from Subsidiaries.

120

Think Growth. Think Transformation. Think Reliance.

Schedules forming part of the Balance Sheet

SCHEDULE ‘I’

As at
31st March, 2010

(Rs. in crore)

As at
31st March, 2009

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

8.25
36,047.35
223.03
98.61
1.39
0.19
1.36
469.22

50.88
329.21
754.43
2,084.67
346.24

7.32
31,571.77
1.87
88.98
2.19
0.19
1.42
1,017.26

36,849.40

32,691.00

37.68
477.78
275.99
1,897.05
322.40

TOTAL

3,565.43
40,414.83

3,010.90
35,701.90

@ The details of amounts outstanding to Micro, Small and Medium Enterprises under the Micro, Small and 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, 2010
-
-
-
-
-
-
-

(Rs. in crore)
As at
31st March, 2009
-
-
-
-
-
-
-

Includes Rs. 170.08 crore (Previous Year Rs. 86.31 crore) payable to Subsidiaries and Rs. 8,817.49 crore (Previous Year
Rs. 16,796.74 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. 7.02 crore (Previous Year Rs 7.21 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, 2009 of Rs. 56.26 crore as per the estimated pattern of despatches. During the year, Rs. 56.26
crore was utilised for clearance of goods. Provision recognised under this class for the year is Rs. 323.88 crore which is
outstanding as on 31st March, 2010. Actual outflow is expected in the next financial year. The Company had recognised
customs duty liability on goods imported under advance license of Rs. 218.05 crore as at 31st March, 2009. During the year,
further provision of Rs. 767.10 crore was made and sum of Rs. 555.60 crore was reversed on fulfillment of export obligation.
Closing balance on this account as at 31st March, 2010 is Rs. 429.55 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.

Schedules forming part of the Profit and Loss Account

Reliance Industries Limited

121

SCHEDULE ‘J’

OTHER INCOME

Dividend:

From Current Investments

From Long Term Investments

Interest:

From Current Investments

From Others

[Tax Deducted at Source Rs. 222.14 crore
(Previous Year Rs. 260.97 crore)]

Premium on Investments in Preference Shares
Profit on Sale of Current Investments (net)
Profit on Sale of Fixed Assets
Miscellaneous Income

Less : Transferred to Project Development Expenditure

- Interest Income

- Others

TOTAL

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

2009-10

(Rs. in crore)

2008-09

27.40

2.41

29.81

226.86

1,338.06

23.80

64.72

2,108.18

0.23
238.43
28.68
82.54

2,460.47

1,564.92

0.05
425.40
9.57
118.65

2,148.40

88.52

2,059.88

2.41

169.92

1,938.26

2009-10

(Rs. in crore)

2008-09

6,278.06
2,878.85

3,015.13
2,193.89

9,156.91

5,209.02

3,257.50
1,523.96

5,209.02
3,947.89

4,781.46
427.56

122

Think Growth. Think Transformation. Think Reliance.

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 *
Investments Written Off
Less: Provision Written Back

Wealth Tax
Charity and Donations

108.38
(90.00)

2,773.98
2,706.71
378.74
25.22

1,774.93
369.15
2.74
(676.42)

1,978.15
148.01

224.22

50.49
228.02
3,280.49
564.77

486.58
105.15
40.39
256.22
59.72
12.82
524.82
29.28
651.96

18.38
13.20
103.37

2009-10

(Rs. in crore)

2008-09

1,47,919.21

1,04,805.05

2,274.02
3,355.98
322.70
37.59

840.28
(111.53)
29.24
494.68

7,355.05

7,242.96

1,913.48
268.11

215.91

2,350.38

2,397.50

71.08
388.16
2,424.62
211.41

4,123.77

3,095.27

325.11
121.21
54.61
229.41
125.89
10.74
654.18
16.65
935.46

-
13.43
82.59

Less : Transferred to Projects Development Expenditure (Net)
TOTAL

2,301.89
164,050.30
1,217.92
162,832.38

2,569.28
120,110.06
3,354.17
116,755.89

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. 0.15 crore (Previous Year Rs. 3.44 crore) and Rs. NIL (Previous Year Rs. 369.60
crore) towards liabilities on account of corporate guarantees given on behalf of a subsidiary, being an exceptional item.

Reliance Industries Limited

123

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

2009-10

946.36

543.38

21.53

485.94

1,997.21

(Rs. in crore)

2008-09

545.61

424.07

0.24

775.31

1,745.23

124

Think Growth. Think Transformation. Think Reliance.

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 to the extent of depreciable amount 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 and SEZ units, 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 as per the production sharing contract and the Government

Reliance Industries Limited

125

SCHEDULE ‘N’ (Contd.)

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 asset 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 and 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 and 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. Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection.
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. Dividend
income is recognized when right to receive is established. Interest income is recognized on time proportion basis
taking into account the amount outstanding and rate applicable.

126

Think Growth. Think Transformation. Think Reliance.

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
its 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.
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

127

SCHEDULE ‘N’ (Contd.)

T. Provisions, 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 recognized but are disclosed in the notes. Contingent Assets are neither recognized 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. As per Accounting Standard 15 “Employee benefits”, the disclosures as defined in the Accounting Standard are

given below :

Defined Contribution Plans

(Rs. in crore)

Contribution to Defined Contribution Plans, recognised as expense for the year is as under :

Employer’s Contribution to Provident Fund

Employer’s Contribution to Super annuation Fund

Employer’s Contribution to Pension Scheme

2009-10

2008-09

53.06

11.70

15.00

52.19

11.72

15.53

The Company’s Provident Fund is exempted under section 17 of Employees’ Provident Fund and Miscellaneous
Provisions Act, 1952. Conditions for grant of exemption 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 SEZ unit of the
Company) 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

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

Gratuity
(Funded)

2009-10
246.98
-
22.15
17.97
28.19
(14.73)
300.56

(Rs. in crore)

Leave Encashment
(Unfunded)

2008-09
291.46
0.78
16.86
22.30
(57.41)
(27.01)
246.98

2009-10
476.77
-
5.27
28.13
(9.35)
(203.41)
297.41

2008-09
518.47
3.75
5.52
31.00
187.50
(269.47)
476.77

128

Think Growth. Think Transformation. Think Reliance.

SCHEDULE ‘O’ (Contd.)

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

III) Reconciliation of fair value of assets and obligations

(Rs. in crore)
Gratuity (Funded)

2009-10
256.14
-
18.77
5.72
2.98
(14.73)
268.88
24.49

2008-09
190.04
0.08
17.05
3.98
72.00
(27.01)
256.14
21.03

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

2010

268.88
300.56
31.68

2009

256.14
246.98
(9.16)

2010

-
297.41
297.41

2009

-
476.77
476.77

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

Gratuity
(Funded)

(Rs. in crore)
Leave Encashment
(Unfunded)

2009-10

2008-09

2009-10

2008-09

22.15
17.97
(18.77)
22.47
43.82

16.86
22.30
(17.05)
(61.39)
(39.28)

5.27
28.13
-
(9.35)
24.05

5.52
31.00
-
187.50
224.02

Reliance Industries Limited

129

SCHEDULE ‘O’ (Contd.)

Investment Details :

GOI Securities
Public Securities
State Government 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)

% Invested

As at 31st

As at 31st
March, 2010 March, 2009

11.03
12.76
6.38

0.05
69.45
0.33

13.34
14.24
7.66

0.16
64.45
0.15

100.00

VI) Actuarial assumptions

Gratuity
(Funded)

Leave Encashment
(Unfunded)

Mortality Table (LIC)

Discount rate (per annum)
Expected rate of return on plan assets (per annum)
Rate of escalation in salary (per annum)

2008-09
1994-96
(Ultimate)
8%
-
4%
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.
3. Turnover includes Income from Services of Rs. 70.98 crore (Previous Year Rs. 59.96 crore) and sales during trial run

2009-10
1994-96
(Ultimate)
7.5%
-
6%

2009-10
1994-96
(Ultimate)
7.5%
7.5%
6%

2008-09
1994-96
(Ultimate)
8%
8%
4%

period of Rs. 143.26 crore (Previous Year Rs. 2,604.53 crore).

4. The Gross Block of Fixed Assets includes Rs. 38,121.98 crore (Previous Year Rs. 38,121.98 crore) on account of
revaluation of Fixed Assets carried out in the past. Consequent to the said revaluation there is an additional charge
of depreciation of Rs. 2,980.48 crore (Previous Year Rs. 1,987.14 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.

5. The Company announced a Voluntary Separation Scheme (VSS) for the employees of certain units during the year.
A sum of Rs. 19.56 crore (Previous Year Rs. 110.79 crore) has been paid during the year and debited to Profit and Loss
Account under the head “Payments 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

2009-10
5.70
0.50
6.38
0.02
12.60
0.22

(Rs. in crore)

2008-09
5.10
0.50
4.89
0.04
10.53
0.21

130

Think Growth. Think Transformation. Think Reliance.

SCHEDULE ‘O’ (Contd.)

7. Managerial Remuneration:

(Included under the head “Payments to and Provisions for Employees”)
(a) Remuneration to Managing Director / Executive Directors

2009-10

(Rs. in crore)

2008-09

(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

7.42
5.57
19.94
0.55
1.06
6.36
40.90
1.75

Computation of net profit in accordance with Section 349 of the Companies Act, 1956:

2009-10

20,547.44

10,496.53

29.28

0.15

18.38

36.03

31,127.81

13,477.01

0.23

28.68

238.43

Profit before Taxation

Add Depreciation as per accounts

Loss on sale / discarding of Fixed Assets

Investment Provided for

Investment written off (net)

Managerial Remuneration

Less Depreciation as per Section 350 of Companies Act, 1956

Premium on Investment in Preference Shares

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 @ 0.40% of the Net profit.
(Previous Year @ 0.402%)

Less: Salaries & Perquisites of the Managing Director / Executive Directors

eligible for commission

Commission eligible

Commission Restricted to

17,383.46

16,067.42

69.53

16.09

53.44

19.94

64.59

2.03

62.56

34.23

1.34
1.66
34.23
0.55
0.36
0.07
38.21
1.89

(Rs. in crore)

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

Reliance Industries Limited

131

SCHEDULE ‘O’ (Contd.)

directors.

8. A sum of Rs. 1.35 crore (net debit) [Previous Year Rs. 2.14 crore (net debit)] is included under Establishment

expenses representing Net Prior Period Items.

9. Expenditure on account of Premium on forward exchange contracts to be recognised in the Profit and Loss account

of subsequent accounting period aggregates Rs. 81.66 crore (Previous Year Rs. 9.28 crore).

10. (a) Fixed assets taken on finance lease prior to 1st April, 2001, amount to Rs. 512.36 crore (Previous Year Rs. 512.36
crore). Future obligations towards lease rentals under the lease agreements as on 31st March, 2010 amount to
Rs. 4.87 crore (Previous Year Rs. 5.45 crore).

Within one year
Later than one year and not later than five years
Later than five years
Total

(Rs. in crore)

2009-10

2008-09

0.58
2.34
1.95
4.87

0.58
2.34
2.53
5.45

(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, 2010 are as follows:

Total Minimum
Lease Payments
outstanding
As at 31st March
2009

2010

Future interest
on Outstanding
Lease Payments

2009-10

2008-09

(Rs. in crore)

Present value of
Minimum
Lease Payments
As at 31st March
2009

2010

Within one year

37.30

Later than one year and not later than five years 148.73

Later than five years

Total

148.71

334.74

1.51

0.39

0.20

2.10

20.06

63.36

28.28

111.70

0.08

0.06

0.09

0.23

17.24

85.37

120.43

223.04

1.43

0.33

0.11

1.87

(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.

132

Think Growth. Think Transformation. Think Reliance.

SCHEDULE ‘O’ (Contd.)

11. (a) (i) Assets given on finance lease on or after 1st April, 2001

Particulars

Gross Investment
Less: Unearned Finance Income
Present Value of Minimum
Lease Rental

Total

Not later than
one year

Later than one
year and not later
than five years

(Rs. in crore)

Later than
five years

2009-10 2008-09 2009-10 2008-09 2009-10 2008-09 2009-10 2008-09
-
-

109.74
18.29

48.47
4.42

30.75
5.78

79.22
10.20

79.03
10.16

30.71
8.13

-
-

69.02

91.45

24.97

22.58

44.05

68.87

(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. 8.14 crore (Previous Year Rs. 9.01 crore).

12. The deferred tax liability comprise of the following:

a. Deferred Tax Liability
Related to fixed assets

b. Deferred Tax Assets

Disallowance under the Income Tax Act 1961

13. EARNINGS PER SHARE (EPS)

i) Net Profit after tax as per Profit and Loss Account attributable

to Equity Shareholders(Rs. in crore)

ii) Net Profit before Exceptional item (Rs. in crore)

As at 31st
March, 2010

(Rs. in crore)
As at 31st
March, 2009

11,169.25

9,973.81

242.95
10,926.30

247.51
9,726.30

2009-10

2008-09

16,235.67

15,309.32

15,637.04

iii) Weighted Average number of equity shares used as denominator for

calculating EPS

3,26,98,62,848*

3,14,78,35,738*

iv) Basic and Diluted Earnings per share (Rs.)

v) Basic and Diluted Earnings (before exceptional items) per share (Rs.)

vi) Face Value per equity share (Rs.)

* Adjusted for issue of bonus shares in 2009-10 in the ratio of 1:1.

49.65

10.00

48.63

49.68

10.00

Reliance Industries Limited

133

SCHEDULE ‘O’ (Contd.)

14. PROJECT DEVELOPMENT EXPENDITURE

(in respect of Projects up to 31st March,2010, included under Capital work-in-progress)

Opening Balance
Add: On Amalgamation

Add: Transferred from Profit and Loss Account

Schedule – L
Schedule – J
Interest Capitalised
Exchange Difference

17,095.19
-

1,217.92
-
983.81
-

Less: Project Development Expenses Capitalised

during the year

Closing Balance

2009-10

(Rs. in crore)

2008-09

1,419.04
1,141.41

17,095.19

2,560.45

3,354.17
(88.52)
3,396.91
10,939.75

2,201.73
19,296.92

17,843.72
1,453.20

17,602.31
20,162.76

3,067.57
17,095.19

134

Think Growth. Think Transformation. Think Reliance.

SCHEDULE ‘O’ (Contd.)

15. 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:

Sr. No. Name of the Related Party

Relationship

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

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 Netherlands 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
Reliance Commercial Associates Limited
Reliancedigital 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
Reliance Wellness Limited

Subsidiary Companies

Reliance Industries Limited

135

SCHEDULE ‘O’ (Contd.)

Sr. No. Name of the Related Party

Relationship

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
73
74

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
Reliance International Exploration and Production Inc.
Wave Land Developers Limited
Reliance-GrandOptical Private Limited
Reliance Universal Commercial Limited
Reliance Petroinvestments Limited
Reliance Global Commercial Limited
Reliance Cyprus Limited
Reliance People Serve Limited
Reliance Infrastructure Management Services Limited
Reliance Global Business B.V.
Reliance Gas Corporation Limited
Reliance Global Energy Services Limited
Reliance One Enterprises Limited
Reliance Global Energy Services (Singapore) Pte. Ltd.
Reliance Personal Electronics Limited
Reliance Polymers (India) Limited
Reliance Polyolefins Limited
Reliance Aromatics and Petrochemicals Private Limited
Reliance Energy and Project Development Private Limited
Reliance Chemicals Limited
Reliance Universal Enterprises Limited

Subsidiary Companies

136

Think Growth. Think Transformation. Think Reliance.

SCHEDULE ‘O’ (Contd.)

Sr. No. Name of the Related Party

Relationship

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
110
111
112
113
114
115

International Oil Trading Limited
Reliance Review Cinema Limited
Reliance Replay Gaming Limited
Reliance Nutritional Food Processors Limited
RIL USA Inc.
Reliance Commercial Land & Infrastructure Limited
Reliance Corporate IT Park Limited
Reliance Eminent Trading & Commercial Private Limited
Reliance Progressive Traders Private Limited
Reliance Prolific Traders Private Limited
Reliance Universal Traders Private Limited
Reliance Prolific Commercial Private Limited
Reliance Comtrade Private Limited
Reliance Ambit Trade Private Limited
Reliance Petro Marketing Limited
LPG Infrastructure (India) Private Limited
Reliance Infosolutions Private Limited
Reliance Corporate Center Limited
Reliance Convention and Exhibition Center Limited
Central Park Enterprises DMCC
Reliance International B. V.
Reliance Corporate Services Private Limited
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
Reliance Utilities Private 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
Shri P.M.S. Prasad
Shri R. Ravimohan
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

137

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

Purchase / Subscription of Investments

Sale / redemption of Investments

238.54
908.00

2,415.80
4,292.16

6,326.92
0.06

-
0.35

24.51
2,000.41

155.63
102.23

Premium Accrued on Investment in Preference Shares

-
0.27

Net Loans and advances given / (returned)

Turnover

Other Income

Purchases

Electric Power, Fuel and Water

10. Hire Charges

11. Manpower Deputation Charges

12.

Payment to Key Managerial Personnel

13.

Sales and Distribution Expenses

14. Rent

15.

Professional Fees

-
-

(8.00)
(4.89)

212.72
29.53

6.45
5.35

45.00
-

960.30
685.74

559.00
76.34

85.93
4.47

-
-

2,532.84
1,263.23

-
2.25

21.32
16.60

(2,812.43)
(193.54)

9,124.51
3,304.04

450.45
205.50

56.46
598.93

-
-

40.69
40.12

-
-

72.13
73.61

0.13
4.50

91.75
39.01

-
-

40.90
38.21

-
-

238.54
908.35

2,440.31
6,292.57

6,482.55
102.29

-
0.27

(2,820.43)
(198.43)

9,337.23
3,333.57

456.90
210.85

101.46
598.93

960.30
685.74

559.00
76.34

126.62
44.59

40.90
38.21

2,604.97
1,336.84

0.13
6.75

113.07
55.61

138

Think Growth. Think Transformation. Think Reliance.

SCHEDULE ‘O’ (Contd.)

Sr. Nature of Transactions
No.

(Excluding reimbursements)

16. General expenses

17. Donations

18.

Interest Expenses

19.

Investment written off (net)

Balance as at 31st March, 2010

20.

Investments

21.

Sundry Debtors

22. Loans & Advances

23.

Sundry Creditors

24.

Financial Guarantees

25.

Performance Guarantees

Subsidiaries Associates Key Managerial Others

Total

Personnel

392.21
66.04

-
-

21.45
3.64

9.87
9.05

-
-

18.38
-

12,757.40
16,668.52

2,033.31
2,051.69

2,978.18
359.29

3,890.31
6,459.73

170.08
86.31

1,588.85
1,598.31

-
1.50

20.01
119.91

1,427.19
1,449.64

414.80
257.17

563.47
431.12

7.03
11.07

-
-

18.97
37.23

-
-

402.08
75.09

18.97
37.23

21.45
3.64

18.38
-

14,790.71
18,720.21

2,998.19
479.20

5,317.50
7,909.37

584.88
343.48

2,152.32
2,029.43

7.03
12.57

Note : Figures in italics represent Previous Year’s amounts.

Reliance Industries Limited

139

SCHEDULE ‘O’ (Contd.)
Disclosure in Respect of Material Related Party Transactions during the year :

Purchase of Fixed Assets include Reliance Jamnagar Infrastructure Limited Rs. NIL (Previous Year Rs. 730.64 crore),
Reliance Retail Limited Rs. NIL (Previous Year Rs. 171.34 crore), Reliance Home Store Limited Rs. 0.05 crore (Previous
Year Rs. 5.48 crore), Reliance Corporate IT Park Limited Rs. 238.38 crore (Previous Year Rs. NIL), Reliance Europe
Limited Rs. NIL (Previous Year Rs. 0.35 crore).

Purchase / Subscription of Investments include Reliance Industrial Investments and Holdings Limited Rs. NIL
(Previous Year Rs. 1,750.00 crore), Reliance Strategic Investments Limited Rs. 112.78 crore (Previous Year Rs. NIL),
Reliance Industries (Middle East) DMCC Rs. 99.32 crore (Previous Year Rs. 355.04 crore), Reliance Jamnagar
Infrastructure Limited Rs. NIL (Previous Year Rs. 1,275.00 crore), Reliance Exploration & Production DMCC Rs.
658.47 crore (Previous Year Rs. 912.11 crore), Reliance Retail Limited Rs. 1,220.00 crore (Previous Year Rs. NIL),
Reliance Global Business B.V. Rs. 324.40 crore (Previous Year Rs. NIL) (including conversion of share application
money of Rs. 196.86 crore of Previous Year into ‘A’ Class Preference Shares), Reliance Gas Transportation Infrastructure
Limited Rs. 24.51 crore (Previous Year Rs. 2,000.00 crore).

Sale / redemption of Investments include Reliance Strategic Investments Limited Rs. 4,216.92 crore (Previous Year Rs.
NIL), Reliance Ventures Limited Rs. 10.00 crore (Previous Year Rs. NIL), Reliance Industrial Investments and Holdings
Limited Rs. 1,750.00 crore (Previous Year Rs. NIL), Reliance Jamnagar Infrastructure Limited Rs. 350.00 crore (Previous
Year Rs. NIL), Reliance Gas Transportation Infrastructure Limited Rs. 65.68 crore (Previous Year Rs. 102.23 crore),
Reliance Ports and Terminals Limited Rs. 89.95 crore (Previous Year Rs. NIL).

4. Loans given during the year include Reliance Industrial Investments and Holdings Limited Rs. NIL (Previous Year
Rs. 1,211.15 crore), Reliance Retail Limited Rs. NIL (Previous Year Rs. 1,156.32 crore), Reliance Exploration & Production
DMCC Rs. 22.45 crore (Previous Year Rs. 19.97 crore), Gapco Kenya Limited Rs. NIL (Previous Year Rs. 22.94 crore),
Gapco Tanzania Limited Rs. NIL (Previous Year Rs. 166.06 crore), Gapoil Tanzania Limited Rs. NIL (Previous Year
Rs. 179.35 crore), Reliance Global Business B.V. Rs. NIL (Previous Year Rs. 200.57 crore), Reliance Gas Corporation
Limited Rs. NIL (Previous Year Rs. 5.96 crore), Reliance Infosolutions Private Limited Rs. 4.70 crore (Previous Year
Rs. 107.59 crore), Reliance Corporate IT Park Limited Rs. 6.00 crore (Previous Year Rs. NIL), Gujarat Chemicals Port
Terminal Company Limited Rs. 17.00 crore (Previous Year Rs. 0.14 crore). Loans returned during the year from
Reliance Ventures Limited Rs. NIL (Previous Year Rs. 1,001.49 crore), Reliance Strategic Investments Limited Rs. NIL
(Previous Year Rs. 14.05 crore), Reliance Industries (Middle East) DMCC Rs. 87.31 crore (Previous Year Rs. 447.63
crore), Reliance Jamnagar Infrastructure Limited Rs. NIL (Previous Year Rs. 1,619.00 crore), Reliance Netherlands
B.V. Rs. NIL (Previous Year Rs. 145.99 crore), Reliance Industrial Investments and Holdings Limited Rs. 1,454.51
crore (Previous Year Rs. NIL), Recron (Malaysia) Sdn Bhd Rs. NIL (Previous Year Rs. 35.30 crore), Gapco Kenya
Limited Rs. 19.78 crore (Previous Year Rs. NIL), Gapco Tanzania Limited Rs. 40.19 crore (Previous Year Rs. NIL),
Gapoil Tanzania Limited Rs. 19.39 crore (Previous Year Rs. NIL), Reliance Retail Limited Rs. 1,027.61 crore (Previous
Year Rs. NIL), Reliance Global Business B.V. Rs. 196.86 crore (Previous Year Rs. NIL) (conversion of share application
money of Previous Year into ‘A’ Class Preference Shares), Reliance Industrial Infrastructure Limited Rs. 25.00 crore
(Previous Year Rs. 10.00 crore).

5. Turnover include to Reliance Industries (Middle East) DMCC Rs. NIL (Previous Year Rs. 234.07 crore), Reliance
Jamnagar Infrastructure Limited Rs. 0.03 crore (Previous Year Rs. 14.25 crore), Reliance Retail Limited Rs. 39.46 crore
(Previous Year Rs. 1.25 crore), Gapco Kenya Limited Rs. 2,492.30 crore (Previous Year Rs. 2,341.53 crore), Gapco
Tanzania Limited Rs. 262.92 crore (Previous Year Rs. 139.56 crore), Gapoil Tanzania Limited Rs. 230.01 crore (Previous
Year Rs. 272.07 crore), Recron (Malaysia) Sdn Bhd Rs. 71.87 crore (Previous Year Rs. 143.24 crore), Reliance Supply

140

Think Growth. Think Transformation. Think Reliance.

SCHEDULE ‘O’ (Contd.)

Chain Solutions Limited Rs. NIL (Previous Year Rs. 1.29 crore), International Oil Trading Limited Rs. NIL (Previous
Year Rs. 155.11 crore), Reliance Trends Limited Rs. 2.37 crore (Previous Year Rs.0.78 crore), LPG Infrastructure
(India) Private Limited Rs. 191.55 crore (Previous Year Rs. 0.44 crore), Reliance Petro Marketing Limited Rs. 364.19
crore (Previous Year Rs. 0.10 crore), Reliance Food Processing Limited Rs. 1.28 crore (Previous Year Rs. NIL), RIL
USA Inc. Rs. 4,875.63 crore (Previous Year Rs. NIL), Reliance Industrial Investments and Holdings Limited Rs. 592.31
crore (Previous Year Rs. NIL), Reliance Utilities Private Limited Rs. 0.03 crore (Previous Year Rs. 25.02 crore),
Reliance Ports and Terminals Limited Rs. 3.31 crore (Previous Year Rs. 0.03 crore), Reliance Gas Transportation
Infrastructure Limited Rs. 209.37 crore (Previous Year Rs. 4.48 crore).

6. Other Income from Reliance Industrial Investments and Holdings Limited Rs. 373.62 crore (Previous Year Rs. 14.14
crore), Reliance Ventures Limited Rs. 2.10 crore (Previous Year Rs. 112.91 crore), Reliance Strategic Investments
Limited Rs. 33.07 crore (Previous Year Rs. 17.96 crore), Reliance Industries (Middle East) DMCC Rs. 0.81 crore
(Previous Year Rs. 5.49 crore), Reliance Jamnagar Infrastructure Limited Rs. NIL (Previous Year Rs. 1.04 crore),
Reliance Exploration & Production DMCC Rs. 12.25 crore (Previous Year Rs. 19.97crore), Gapco Kenya Limited Rs.
1.70 crore (Previous Year Rs. 3.16 crore), Gapco Tanzania Limited Rs. 6.07 crore (Previous Year Rs. 11.45 crore), Gapoil
Tanzania Limited Rs. 6.61 crore (Previous Year Rs. 10.35 crore), Recron (Malaysia) Sdn Bhd Rs. 4.62 crore (Previous
Year Rs. 5.24 crore), Reliance Global Business B. V. Rs. NIL (Previous Year Rs. 3.71 crore), Reliance Infosolutions
Private Limited Rs. 8.14 crore (Previous Year Rs. 0.08 crore), Reliance Industrial Infrastructure Limited Rs. 3.88 crore
(Previous Year Rs. 2.14 crore), Gujarat Chemicals Port Terminal Company Limited Rs. 0.83 crore (Previous Year Rs.
1.92 crore), Reliance Europe Limited Rs. 1.74 crore (Previous Year Rs. 1.29 crore).

Purchases from Reliance Industrial Investments and Holdings Limited Rs. NIL (Previous Year Rs. 32.06 crore),
Reliance Industries (Middle East) DMCC Rs. NIL (Previous Year Rs. 566.87 crore), Recron (Malaysia) Sdn Bhd
Rs. 2.25 crore (Previous Year Rs. NIL), Reliance Petro Marketing Limited Rs. 54.21 crore (Previous Year Rs. NIL),
Reliance Gas Transportation Infrastructure Limited Rs. 34.43 crore (Previous Year Rs. NIL), Reliance Ports and
Terminals Limited Rs. 10.57 crore (Previous Year Rs. NIL).

8. Electric Power, Fuel and Water charges paid to Reliance Utilities and Power Private Limited Rs. 285.83 crore (Previous

Year Rs. 289.88 crore), Reliance Utilities Private Limited Rs. 674.47 crore (Previous Year Rs. 395.86 crore).

9. Hire Charges paid to Reliance Europe Limited Rs. NIL (Previous Year Rs. 4.63 crore), Reliance Industrial Infrastructure
Limited Rs. 32.01 crore (Previous Year Rs. 22.53 crore), Gujarat Chemicals Port Terminal Company Limited Rs. 48.86
crore (Previous Year Rs. 42.05 crore), Reliance Gas Transportation Infrastructure Limited Rs. 314.56 crore (Previous
Year Rs. 7.14 crore), Reliance Ports and Terminals Limited Rs. 163.57 crore (Previous Year Rs. NIL).

10. Manpower Deputation Charges to Reliance Retail Limited Rs. 33.72 crore (Previous Year Rs. 20.81 crore), Reliance
Trends Limited Rs. NIL (Previous Year Rs. 12.00 crore), Reliance Petroinvestments Limited Rs. NIL (Previous Year
Rs. 2.75 crore), Reliance People Serve Limited Rs. 3.00 crore (Previous Year Rs. 4.20 crore), Strategic Manpower
Solutions Limited Rs. 3.97 crore (Previous Year Rs. 0.35 crore), Reliance Industrial Infrastructure Limited Rs. 11.81
crore (Previous Year Rs. 4.47 crore), Reliance Ports and Terminals Limited Rs. 74.12 crore (Previous Year Rs. NIL).

11. Payment to Key Management Personnel include to Shri Mukesh D. Ambani Rs. 15.00 crore (Previous Year Rs. 15.00
crore), Shri Nikhil R. Meswani Rs. 11.14 crore (Previous Year Rs. 10.93 crore), Shri Hital R. Meswani Rs. 11.14 crore
(Previous Year Rs. 10.93 crore), Shri H. S. Kohli Rs. 1.32 crore (Previous Year Rs. 1.35 crore), Shri P. M. S. Prasad Rs.
1.53 crore (Previous Year Rs. NIL), Shri R. Ravimohan Rs. 0.77 crore (Previous Year Rs. NIL).

Reliance Industries Limited

141

12. Sales and Distribution Expenses include to Reliance Retail Limited Rs. 72.13 crore (Previous Year Rs. 72.84 crore),
Reliance Ports and Terminals Limited Rs. 2,524.35 crore (Previous Year Rs. 1,255.26 crore), Gujarat Chemicals Port
Terminal Company Limited Rs. 8.49 crore (Previous Year Rs. 7.97 crore).

13. Rent paid to Reliance Supply Chain Solutions Limited Rs. 0.13 crore (Previous Year Rs. 4.50 crore), Reliance Industrial

Infrastructure Limited Rs. NIL (Previous Year Rs. 2.25 crore).

14. Professional Fees paid to Reliance Financial Distribution and Advisory Services Limited Rs. 5.00 crore (Previous
Year Rs. 14.00 crore), Reliance Universal Ventures Limited Rs. 2.30 crore (Previous Year Rs. 3.50 crore), Reliance
Supply Chain Solutions Limited Rs. 36.00 crore (Previous Year Rs. 21.00 crore), Reliance Infosolutions Private
Limited Rs. 48.00 crore (Previous Year Rs. NIL), Reliance Europe Limited Rs. 20.20 crore (Previous Year Rs. 16.60
crore), Reliance Ports and Terminals Limited Rs. 1.12 crore (Previous Year Rs. NIL).

15. General Expenses include to Reliance Jamnagar Infrastructure Limited Rs. 373.17 crore (Previous Year Rs. 60.01
crore), Reliance Hypermart Limited Rs. 0.03 crore (Previous Year Rs. 1.95 crore), Reliance Retail Travel & Forex
Services Limited Rs. 0.05 crore (Previous Year Rs. 1.63 crore), Reliance Retail Limited Rs. 4.60 crore (Previous Year Rs.
NIL), Reliance Footprint Limited Rs. 1.47 crore (Previous Year Rs. 0.39 crore), Reliance Fresh Limited Rs. 2.51 crore
(Previous Year Rs. 0.13 crore), Reliance Polyolefins Limited Rs. 9.00 crore (Previous Year Rs. NIL), Reliance Industrial
Infrastructure Limited Rs. 9.00 crore (Previous Year Rs. 9.00 crore).

16. Donations to Dhirubhai Ambani Foundation Rs. 16.25 crore (Previous Year Rs. 35.47 crore), Jamnaben Hirachand

Ambani Foundation Rs. 1.30 crore (Previous Year Rs. 0.04 crore).

17.

18.

Interest Expenses include to LPG Infrastructure (India) Private Limited Rs. NIL (Previous Year Rs. 3.64 crore),
Reliance Corporate IT Park Limited Rs. 21.45 crore (Previous Year Rs. NIL).

Investment written off (net) includes Gujarat Chemicals Port Terminal Company Limited Rs. 18.38 crore (Previous
Year Rs. NIL).

142

Think Growth. Think Transformation. Think Reliance.

SCHEDULE ‘O’ (Contd.)

16. 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, 2010 March, 2009

(Rs. in crore)
As at 31st Maximum
Balance
during the
year

1. Reliance Industrial Investments and Holdings Limited* Subsidiary

2,649.54

4,104.04

5,541.44

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. Gujarat Chemicals Port Terminal Co Limited

Subsidiary

Subsidiary
Subsidiary

Subsidiary

Associate

-
-

149.61

114.42

22.45

5.60

-
87.31

19.78

169.00

154.61

22.38

25.55

1,101.45
87.31

23.22

233.73

213.83

363.31

22.38

* Excluding Debentures of Rs. 721.48 crore (Previous Year Rs. 721.48 crore)

Notes:

(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.

(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) and Indian Petrochemicals Corporation Limited with the
Company under the Schemes approved by the Hon’ble High Court of Bombay and Gujarat and certain subsequent
inter se transfer of shares.

(Rs. in crore)

Sr
No.
1.
2.

Name of the Company

No. of Shares**

Amount

*Reliance Aromatics & Petrochemicals Private Limited
*Reliance Energy & Project Development Private Limited

2,98,89,898
20,58,000

273.81
304.92

** After considering bonus shares issued.

Reliance Industries Limited

143

SCHEDULE ‘O’ (Contd.)

(ii) Investment by Reliance Industrial Investments and Holdings Limited in subsidiaries

In Equity Shares :
Sr No. Name of the Company
1.
2.
3.
4.

Reliance Commercial Land & Infrastructure Limited
Reliance Global Business B.V.
Reliance Gas Corporation Limited
Reliance Universal Enterprises Limited

(iii) Investment by Reliance Exploration & Production DMCC in subsidiaries

In Equity Shares :
Sr No. Name of the Company
1.
2.

Reliance International B. V.
Central Park Enterprises DMCC

17. (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%)
NIL (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
38,55,000

No. of Shares
20,000
367

% Interest

40% (40%)
90% (90%)
90% (90%)
90% (90%)
85% (85%)
70% (70%)

Figures in bracket represent Previous Year’s (%) 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

Gas:
Beginning of the year
Additions
Deletion
Production
Closing balance

Proved Reserves
(Million MT)

Proved Developed
Reserves (Million MT)

2009-10

2008-09

2009-10

2008-09

11.02
1.13
-
1.04
11.11

11.64
0.12
-
0.74
11.02

4.97
4.69
-
1.04
8.62

3.58
2.13
-
0.74
4.97

Proved Reserves
(Million M3*)

Proved Developed
Reserves (Million M3*)

2009-10

2008-09

2009-10

2008-09

2,20,468
5,353
-
14,607
2,11,214

2,22,188
168
-
1,888
2,20,468

1,33,894
11,536
-
14,607
1,30,823

16,842
1,18,940
-
1,888
1,33,894

* 1 cubic meter (M3) = 35.315 cubic feet and 1 cubic feet = 1000 BTU

144

Think Growth. Think Transformation. Think Reliance.

SCHEDULE ‘O’ (Contd.)

18. As per Accounting Standard (AS) 17 on “Segment Reporting”, segment information has been provided under the

Notes to Consolidated Financial Statements.

19. ADDITIONAL INFORMATION

(A) Estimated amount of contracts remaining to be executed on

Capital account and not provided for:

(i)

In respect of joint Ventures

(ii)

In respect of others

(B) Uncalled liability on partly paid Shares (Net of calls in advance)

(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

(iv) Claims against the Company / disputed liabilities not

acknowledged as debts

(a) In respect of joint Ventures

(b) In respect of others

(v) Performance Guarantees

(a) In respect of joint Ventures

(b) In respect of others

(vi) Sales tax deferral liability assigned

As at
31st March, 2010

(Rs. in crore)
As at
31st March, 2009

12.71

15,220.45

4,270.38

2,992.66

22,901.77

4,310.00

243.50

2,136.74

2,152.97

1,834.44

822.35

108.04

5,380.25

4,316.25

2,032.94

1,347.88

1,268.99

112.80

5,406.89

(D) The Income-Tax assessments of the Company have been completed up to Assessment Year 2007-08. The
disputed demand outstanding up to the said Assessment Year is Rs. 701.39 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.

Reliance Industries Limited

145

SCHEDULE ‘O’ (Contd.)

20. LICENSED AND INSTALLED CAPACITY

(As certified by the Management)

Licensed Capacity
As at 31st March,
2009
2010

UNIT

A
B

D
E
F
G
H
I

J
K
L
M
N
0
P
Q

Refining of Crude Oil

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
i Paraxylene
ii Orthoxylene
iii Toluole

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
Polyester Filament Yarn/Polyester Chips
Polyester Staple Fibre/ Acrylic Fibre / Chips
Poly Ethylene Terephthalate
Polyester Staple Fibre Fill
Man-made Fibre Spun Yarn on worsted system
Man-made Fibre on cotton system (Spindles)

i Man-made Fabrics (Looms)
ii Knitting M/C

Solar Photovoltaic Modules

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
MT
MT
MT
MT
Nos
Nos
Nos
Nos
M.W.

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.
N.A.
22
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.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
22
N.A.

Installed Capacity
As at 31st March,

2010

60
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
1,856,000
420,000
180,000
625,000
1,115,000
80,000
74,000
2,685,200
733,400
52,080
116,000
2,050,000
822,725+
741,612
290,000
42,000
24,094
23,040
335
20
30

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
822,725+
741,612
290,000
42,000
24,094
23,040
364
20
30

146

Think Growth. Think Transformation. Think Reliance.

SCHEDULE ‘O’ (Contd.)

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

21.

(a) The Ministry of Corporate Affairs, Government of India vide its Order No. 46/92/2010-CL-III dated 16-04-2010 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. 47/165/2010-CL-III dated 15-04-2010
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. As per the
Order, the financial information of each subsidiary is attached.

22. 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
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

Unit

BBTU

‘000 MT

MT
MT

Mtrs. In lacs

MT
MT

Mtrs. in Lacs

2009-10

2008-09

1,021,797

683,023

435,157

46,076

357

28,095

662,254

108,963

124,138

39,462

162,813

102,934

29,269

514,938

357,983
624,018

1,057,906

72,894

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
613,783

990,189

71,974

2,398,598

1,513,644

301,509

610,787

796,033

627,857
314,191

59,601

163

352,182

648,219

694,592

578,462
297,870

39,729

174

Reliance Industries Limited

147

SCHEDULE ‘O’ (Contd.)

23. Financial and Derivative Instruments

a) Derivative contracts entered into by the Company and outstanding as on 31st March, 2010

(i) For hedging Currency and Interest Rate Related Risks:

Nominal amounts of derivative contracts entered into by the Company and outstanding as on 31st March
amount to Rs 1,23,430.42 crore (Previous Year Rs. 60,373.04 Crore). Category wise break up is given below:
(Rs in crore)

Sr. No.

Particulars

As at 31st March, 2010

As at 31st March, 2009

Interest Rate Swaps

Currency Swaps

Options (net)

Forward Contracts

(ii) For hedging commodity related risks :

Category wise break up is given below :

Sr. No.

Particulars

Forward swaps (net)

Futures

Spreads

Options (net)

48,361.08

4,199.76

44,853.83

26,015.75

23,215.50

4,435.15

2,492.71

30,229.68

(in Kbbl)

As at 31st March, 2010
Petroleum Crude Oil

As at 31st March, 2009
Petroleum Crude oil
purchases product sales purchases

product sales

1,900

4,070

9,545

1,800

8,185

4,967

32,141

12,175

2,985

256

1,908

9,387

6,157

2,689

13,424

10,800

In addition the Company has net margin hedges outstanding for contracts relating to petroleum product
sales of 72,700 kbbl (Previous Year 30,650 kbbl).

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. 94.09 crore
(Previous Year Rs. 35.32 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, 2010 amount to

Rs. 50,442.30 crore. (Previous Year Rs. 51,432.57 crore).

24. VALUE OF IMPORTS ON CIF BASIS IN RESPECT OF

Raw Materials and Traded Goods

Stores, Chemicals and Packing Materials

Capital goods

(Rs. in crore)

2009-10

2008-09

1,52,083.05

1,02,072.93

1,430.63

1,190.22

1,407.80

6,592.69

148

Think Growth. Think Transformation. Think Reliance.

SCHEDULE ‘O’ (Contd.)

25. EXPENDITURE IN FOREIGN CURRENCY :

Capital Contracts (Includes Rs. 16.45 crore for SEZ unit)

Oil and Gas Activity

Technical and Engineering Fees (Includes Rs. 1,011.51 crore for SEZ unit)

Production Royalty

Machinery Repairs (Includes Rs. 1.19 crore for SEZ unit)

Building Repairs

Lease Rent

Payments To and Provisions For Employees

Sales Promotion Expenses

Brokerage and Commission (Includes Rs. 3.49 crore for SEZ Unit)

Ocean Freight (Includes Rs. 762.35 crore for SEZ unit)

Warehousing and Distribution Expenses (Includes Rs. 813.65 crore for SEZ unit)

Insurance (Includes Rs. 0.13 crore for SEZ Unit)

Rent

Rates & Taxes

Other Repairs (Includes Rs. 0.35 crore for SEZ unit)

Travelling Expenses (Includes Rs. 0.07 crore for SEZ unit)

Professional Fees (Includes Rs. 65.71 crore for SEZ unit)

Charity & Donations

Hire Charges

Bank Charges

Establishment Expenses (Includes Rs. 21.62 crore for SEZ unit)
Claims against guarantee relating to subsidiary

Interest Charges (Includes Rs. 394.11 crore for SEZ unit)

Other Finance Charges (Includes Rs. 205.33 crore for SEZ unit)

Premium on Redemption of Bonds

26. VALUE OF RAW MATERIALS CONSUMED :

2009-10

37.70

7,106.51

1,011.51

30.10

0.12

2.14

17.50

21.86

37.94

1,307.02

896.70

2.69

3.43

0.31

9.68

7.28

263.30

7.09

0.26

50.93

56.09
-

1,175.29

296.41

11.62

(Rs. in crore)

2008-09

122.81

12,084.66

231.91

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

257.50

2.83

3.96

32.30

36.48
369.60

2,135.07

507.63

19.96

Imported

Indigenous

2009-10

Rs. in crore

% of Rs. in crore

Consumption

1,41,108.21

95.40

1,00,350.46

6,811.00

4.60

4,454.59

2008-09

% of
Consumption

95.75

4.25

1,47,919.21

100.00

104,805.05

100.00

Reliance Industries Limited

149

SCHEDULE ‘O’ (Contd.)

27. VALUE OF STORES, CHEMICALS AND PACKING MATERIALS CONSUMED

Imported

Indigenous

28. EARNINGS IN FOREIGN EXCHANGE

2009-10

2008-09

Rs. in crore

% of Rs. in crore

Consumption

% of
Consumption

1,412.28

1,361.70

2,773.98

50.91

49.09

100.00

1,164.25

1,109.77

2,274.02

51.20

48.80

100.00

FOB value of exports [Excluding captive transfers to Special
Economic Zone of Rs. 6,363.27 crore]

Interest

Others

(Rs. in crore)

2009-10

2008-09

1,02,655.60

86,827.52

25.08

20.32

70.01

19.25

29. 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:

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
April 23, 2010

V.M. Ambani
Company Secretary

2009-10
(Interim Dividend)

2008-09
(Final Dividend)

38,072

27,123

28,99,24,139

26,89,52,851

376.90

2008-09

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
P.M.S. Prasad
H.S. Kohli
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain

Dr. R. A. Mashelkar} Directors

150

Think Growth. Think Transformation. Think Reliance.

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 1 0

State Code:

II. Capital raised during the year (Amount in Rs. Crore):

Public Issue:

Bonus Issue:

N I L

Rights Issue:

1 6 2 6 .

7 9

Private Placement:

Conversion of Bonds:

N I L

Equity Share Suspense:

III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Crore):

Total Liabilities:

Sources of Funds:

5 1 0 0 6 .

4 3

Total Assets:

2 5 1 0 0 6

Paid up Capital:

3 2 7 0 .

3 7

Reserves & Surplus:

1 3 3 9 0 0

Equity Share Suspense:

N I L

Unsecured Loans:

Current Liabilities:

5 0 8 2 4

4 0 4 1 4

Investments:

2 3 2 2 8

Total Expenditure:

Profit After tax:

1 7 8 3 2 1

1 6 2 3 5

Dividend: Rs. per share

Secured Loans:

1 1 6 7 0 .

Deferred Tax Liabilities:

1 0 9 2 6 .

Application of Funds:

Net Fixed Assets:

6 5 3 9 8 .

Current Assets:

6 2 3 7 9 .

5 0

3 0

7 1

1 0

IV. Performance of the Company (Amount in Rs. Crore):

Turnover:

Net Turnover:

Profit Before Tax:

0 0 3 9 9 .

9 2 4 6 1 .

2 0 5 4 7 .

Earning per share in Rs.

4 9 .

7 9

0 2

4 4

6 5

V. Generic Names of principal products / services of the company:

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 )

1 1

N I L

4 3

2 4

1 9

8 3

6 2

9 4

6 7

0 0

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

151

Rs. in crore

Profit Provision Profit Proposed Country
Before
for
Taxation Taxation Taxation

After Dividend

148.96

692.26

5,253.00

1,747.39

592.67

1.45

0.25

1.20

India

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 Netherlands 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

INR

INR
EUR MN

INR

2.69

2.34

2,358.52

2,363.72

554.49

1,037.13

1,057.38

913.40

8.88

42.67

INR
USD MN

379.41
81.54

22.43
4.82

501.87
107.86

-
-

514.90
110.66

6.99

9.26

3.44
0.74

1.25

1.10

-
-

5.74

8.16

3.44
0.74

101.85

1,641.95

2,318.50

0.62

390.40

236.64

21.40

215.24

5,730.00

(13.75)

5,984.76

167.77

290.72

(7.00)

(25.22)

1.07
0.16

0.05

4.00

0.05

(0.67)
(0.10)

4.36
0.65

0.87
0.13

0.25

3,416.54

(411.93)

1,827.63

1.01
0.15

5.79

(2.75)
(0.41)

-
-

0.67

0.26

2,083.99

(217.09)

(81.93)

(135.16)

(40.19)

(2.42)

60.97

3.12

60.97

3.12

(11.79)

112.09

0.00

109.47

6.31

293.49

(4.61)

1.75

(6.18)

(2.78)

(0.73)

(2.03)

(1.83)

2.48

(4.15)

1 3 Reliance Exploration & Production DMCC *

INR
USD MN

1,686.06
362.36

(282.30)
(60.67)

2,576.18
553.66

2,576 .18
553.66

135.53
29.13

66.82
14.36

(334.32)
(71.85)

-
-

(334.32)
(71.85)

1 4 Reliance Retail Finance Limited

1 5 RESQ Limited

INR

1 6 Reliance Global Management Services Limited

INR

1 7 Reliance Commercial Associates Limited

1 8 Reliancedigital Retail Limited

INR

1 9 Reliance Financial Distribution and Advisory

INR

2.02

0.05

0.25

0.05

(0.77)

0.60

(0.02)

(21.52)

(20.09)

2.65

71.94

0.03

71.94

0.03

240.78

14.87

101.85

103.92

101.78

2.65

0.00

5.12

(0.37)

(0.98)

(0.25)

(0.38)

(0.00)

(9.75)

(0.16)

(3.71)

1.34

251.02

0.56

0.21

18.22

(2.75)
(0.41)

0.41

(0.12)

(0.60)

0.35

(0.00)

(6.04)

(1.50)

0.03

0.01

411.87

-
-

9.82

0.01
0.00

Services Limited

2 0 RIL (Australia) Pty Limited

2 1 Reliance Hypermart Limited

2 2 Gapco Kenya Limited *

2 3 Gapco Rwanda SARL

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 *

INR
AUD

INR

INR
KSH MN

INR
FRW MN

INR
TZS MN

INR
USH MN

INR
TZS MN

INR
USD MN

INR
KSH MN

20.58
5.00

(13.75)
(3.34)

7.24
1.76

(11.03)
(2.68)

-
-

(11.03)
(2.68)

0.05

(96.83)

1,428.13

1.15

516.82

(67.65)

(25.14)

(42.51)

89.43
1,459.54

108.89
1,777.14

1,040.30
16,979.00

3.57
448.50

(0.98)
(122.84)

11.20
1,406.84

-
-

2,671 .86
43,607.92

83.00
10,426.71

32.19
525.40

7.22
906.98

10.59
172.89

2.47
310.36

21.60
352.51

4.75
596.62

54.87
15,500.00

46.31
13,082.14

636.07

636.07
179,680.38 179,680.38

-
643.60
- 181,807.64

48.42

52.90
13,679.31 14,943.00

(4.48)
(1,263.69)

21.44
8,750.10

44.75
18,263.78

99.14
40,466.06

-
325.75
- 132,958.74

5.05
2,061.64

2.84
1,157.44

2.21
904.20

1.77
500.00

(1.26)
(355.29)

7.55
2,133.86

-
-

0.06
15.76

0.01
4.00

-
-

0.01
4.00

51.01
14,410.00

122.75
34,674.97

462.40

462.40
130,620.56 130,620.56

558.31
-
- 157,713.39

9.52

42.37
2,688.16 11,969.00

(32.85)
(9,280.84)

0.00

India

U.A.E

India

Netherlands

India

U.A.E

India

Australia

India

Kenya

Rwanda

Tanzania

Uganda

Zanzibar

Tanzania

-
-

102.37
22.00

7.35
120.00

(26.34)
(5.66)

(5.84)
(95.35)

303.47
65.22

1.58
25.84

303.47
65.22

1.58
25.84

-
-

(17.68)
(3.80)

-
-

(17.68)
(3.80)

- Mauritius
-

17.35
283.13

0.04
0.70

(0.43)
(7.07)

0.47
7.77

Kenya

-
-

As on 31.12.2009: 1 Euro = Rs. 67.02, 1 US $ = Rs. 46.53, 1 RM = Rs. 13.59, 1 KSH = 0.6127, 1 FRW = 0.0796, 1 TZS = 0.0354, 1 USH = 0.0245; Exchange Rate as on 31.3.2010,
1 Euro = Rs. 60.45, 1 US $ = Rs. 44.90, 1 Aus $ = Rs. 41.16, 1 KSH = Rs. 0.5805, 1 SGD = Rs 32.08, 1 GBP = 67.96.

152

Think Growth. Think Transformation. Think Reliance.

Financial Information of Subsidiary Companies

Sr. Name of Subsidiary Company
No.

Reporting Capital Reserves
Currency

Total
Total
Assets Liabilities ments

Invest- Turnover/

Rs. in crore

Profit Provision Profit Proposed Country
Before
for
Taxation Taxation Taxation

After Dividend

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 Wave Land Developers Limited

INR
RM MN

INR

3.40
2.50

1.00

0.05

1.01

0.05

0.56

INR
KSH MN

135.38
2,332.11

5 5 Reliance-GrandOptical Private Limited

5 6 Reliance Universal Commercial Limited

5 7 Reliance Petroinvestments Limited

5 8 Reliance Global Commercial Limited

5 9 Reliance People Serve Limited

6 0 Reliance Infrastructure Management

Services Limited

6 1 Reliance Global Business B V

INR

INR
EURO MN

6 2 Reliance Gas Corporation Limited

INR

0.05

8.88

0.05

302.13
49.98

0.05

1,197.48
881.15

2,960.36
2,178.34

(1.28)

0.12

Total
Income

-
-

3,926.10
2,888.96

0.06

(13.26)

37.77

72.65

37.77

72.65

11.05

53.47

(4.49)

224.30

184.21

68.75

159.35

60.45

(18.12)

(20.46)

(5.55)

(4.70)

(1.68)

(2.15)

(9.89)

(3.13)

(10.97)

(13.07)

(1.47)

(72.59)

(13.50)

(9.73)

(8.74)

(1.15)

(9.93)

(19.01)

(1.35)
(23.31)

(0.01)

0.01

33.75

19.52

26.00

1.16

28.14

25.30

11.15

25.61

8.96

33.75

19.52

26.00

1.16

28.14

25.30

11.15

25.61

8.96

250.97

67.80

55.27

0.50

0.04

67.80

55.27

0.50

0.04

0.01

1.15

0.00

(15.96)

278.37

0.03

107.59

134.19
2,311.55

69.11
1,190.54

0.05

4.48

0.05

4.48

4.47

175.17

184.54

183.22

0.01

(1.07)

(0.01)

14.15
2.34

(0.00)

4.48

2.28

0.04

4.48

2.28

0.04

377.21
62.40

6.08

4.47

0.01
0.00

15.91
11.71

(0.02)

(4.73)

(2.12)

121.87

(17.47)

0.63

2.54

32.77

17.84

0.18

0.61

0.14

126.93

74.54

18.99

(7.84)

(0.08)

(3.16)

(1.80)

(0.26)

(8.03)

(2.19)

(1.71)

(8.23)

(0.74)

(6.39)
(4.70)

(1.94)

(0.73)

(6.11)

(2.88)

(0.21)

(2.09)

(0.61)

(3.88)

(0.98)

(2.99)

(0.28)

22.30
16.41

(0.02)

(2.79)

(1.39)

(11.36)

(4.96)

0.13

(1.07)

(1.19)

(0.26)

(4.15)

(2.19)

(0.73)

(5.24)

(0.46)

133.32

(55.65)

(20.80)

(34.85)

60.85

44.28

0.97

0.18

131.50

0.05

0.12
2.04

(13.62)

(6.80)

(2.30)

(0.20)

(5.58)

(0.63)

(4.61)

0.09
1.62

(0.00)

(0.02)

(0.00)

(4.67)

(1.59)

(2.51)

(6.83)

0.03
0.62

5.63

(0.31)

(0.16)

(0.00)

23.15
3.83

20.13
3.33

(0.00)

-
-

(8.95)

(5.21)

(2.30)

(0.20)

(3.07)

(0.63)

2.22

0.06
1.00

(0.00)

(0.02)

(0.00)

(0.15)

(0.00)

20.13
3.33

(0.00)

- Malaysia
-

-
-

India

Kenya

India

Netherlands

India

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

153

Rs. in crore

Profit Provision Profit Proposed Country
Before
for
Taxation Taxation Taxation

After Dividend

5.87
1.83

0.29
0.09

0.06
0.02

0.23
0.07

(0.00)

6 3 Reliance Global Energy Services

(Singapore) Pte. Ltd.

6 4 Reliance One Enterprises Limited

6 5 Reliance Global Energy Services Limited *

6 6 Reliance Personal Electronics Limited

6 7 Reliance Polymers (India) Limited

6 8 Reliance Polyolefins Limited

6 9 Reliance Aromatics and Petrochemicals

Private Limited

INR
SGD MN

INR

INR
GBP MN

INR

4.81
1.50

0.05

3.40
0.50

0.05

4.41

0.55
0.17

(0.04)

(0.14)
(0.02)

(0.82)

5.49
1.71

0.96

6.80
1.00

0.39

5.49
1.71

0.96

6.80
1.00

0.39

-
-

2,180.51

2,184.97

611.09

13.26

2,573.14

2,588.17

2,511.84

4.11

2,503.44

2,781.37

2,781.36

11.89
1.75

0.07

9.00

0.00

0.88
0.13

(0.25)

(0.04)

0.58

(0.01)

7 0 Reliance Energy and Project Development

INR

1.01

951.68

1,257.79

1,255.99

0.00

(0.00)

Private Limited

7 1 Reliance Chemicals Limited

7 2 Reliance Universal Enterprises Limited

7 3 Reliance Review Cinema Limited

7 4 Reliance Replay Gaming Limited

7 5 Reliance Nutritional Food Processors Limited

7 6 Reliance Commercial Land & Infrastructure

Limited

7 7 Reliance Corporate IT Park Limited

7 8 Reliance Eminent Trading & commerical

Private Limited

7 9 Reliance Progressive Traders Private Limited

8 0 Reliance Prolific Traders Private Limited

8 1 Reliance Universal Traders Private Limited

8 2 Reliance Prolific Commercial Private Limited

8 3 Reliance Comtrade Private Limited

8 4 Reliance Ambit Trade Private Limited

8 5 Reliance Petro Marketing Limited

8 6

LPG Infrastructure (India) Private Limited

8 7 Reliance Infosolutions Private Limited

8 8 RIL USA inc. *

8 9

International Oil Trading Limited *

9 0 Central Park Enterprises DMCC *

9 1 Reliance Corporate Services Private

Limited

9 2 Reliance Corporate Centre Limited

9 3 Reliance Convention and Exhibition

Centre Limited

9 4 Reliance International B.V. *

INR

INR
USD MN

INR

INR
EURO MN

7.58

2,598.64

2,606.22

2,604.91

13.26

3,403.42

3,416.67

3,416.56

0.05

(0.13)

(0.02)

(0.05)

0.32

0.14

1.21

0.32

0.14

1.21

0.01

46.90

1,940.74

2,025.72

0.01

0.98

0.61

(0.00)

(0.04)

(0.15)

(0.01)

(0.04)

(0.03)

1,786.33

(126.98)

2,124.43

21.77

0.31

14.67

2,060.34

2,076.91

2.79

0.75

(12.85)

13.96

12.83

10.12

1.66

1.48

1.93

4.11

0.05

0.01

1,559.83

1,659.72

1,260.22

1,276.39

32.68

331.22

241.47

465.53

106.25

6.63

1.15

49.04

335.70

243.10

470.77

158.53

101.04

229.38

49.04

335.70

243.10

470.77

158.53

101.04

229.38

13.47
3.00

(49.92)
(11.12)

1,961.14
436.78

0.22
0.05

0.47
0.10

0.06

0.05

0.12
0.02

1.03
0.23

(0.05)
(0.01)

0.00

0.12
0.02

1.26
0.28

8.94
1.92

0.06

1.26
0.28

8.94
1.92

0.06

88.82

111.90

0.79
0.13

0.04

0.00

-
-

0.05

-
-

0.00

468.37

204.33

193.20

(16.84)

(2.94)

(0.21)

(0.10)

(0.03)

(0.02)

0.26

1.99

0.41

6,225.34
1,386.49

(58.91)
(13.12)

75.16
16.74

-
-

9.79
2.18

(0.05)
(0.01)

(0.00)

2.06
0.34

0.18
0.03

-
-

Singapore

India

U K

India

0.61
0.09

(0.25)

(0.04)

0.38

(0.01)

0.00

India

(0.00)

0.00

India

(0.00)

(0.04)

(0.08)

0.00

(0.04)

(0.03)

0.26

(14.18)

(23.21)

(3.38)

(0.22)

(0.10)

(0.03)

(0.02)

0.10

1.15

0.03

(58.91)
(13.12)

9.79
2.18

(0.05)
(0.01)

(0.00)

0.18
0.03

India

USA

British Virgin
Island

India

Netherlands

-
-

0.27
0.04

0.20

(0.07)

(0.01)

0.05

1.33

6.37

0.44

0.01

0.00

0.16

0.84

0.38

-
-

154

Think Growth. Think Transformation. Think Reliance.

Consolidated Financial Statements & Notes

Reliance Industries Limited

155

Auditors’ Report on Consolidated Financial Statements

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, 2010,
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. 40,269.90 crore as at 31st March, 2010,
total revenue of Rs. 25,332.43 crore and net cash flows
amounting to Rs. (168.25) 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. 9.98 crore have been audited by one of us.

2. We did not audit the financial statements / consolidated
financial statements of certain subsidiaries, whose
financial statements / consolidated financial statements
reflect total assets of Rs. 11,735.34 crore as at 31st
March, 2010, total revenue of Rs. 462.76 crore and cash
flows amounting to Rs. (7.87) crore for the year then
ended. 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.

crore as at 31 st December, 2009, total revenue of
Rs. 4,698.73 crore, cash flows amounting to Rs. 38.73
crore for the year then ended and on the unaudited
financial statements of certain associates wherein the
Group’s share of profit aggregates Rs. 0.79 crore. These
unaudited financial statements / consolidated financial
statements as approved by the respective Board of
Directors of these companies have been furnished to us
by the Management and our report in so far as it relates
to the amounts included in respect of the subsidiaries and
associates is based solely on such approved unaudited
financial statements / consolidated financial statements.

4. 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, 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 Standards) Rules, 2006.

5. Based on our audit as aforesaid, and on consideration of
reports of other auditors on the separate financial statements
/ consolidated 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 2010;

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
(Registration No. 117366W)
(Registration No. 101720W)

Chartered Accountants
(Registration No. 108355W)

D. Chaturvedi
Partner
Membership No.: 5611 Membership No.: 31467

A. Siddharth
Partner

A. R. Shah
Partner
Membership No.:47166

3. We have relied on the unaudited consolidated financial
statements of certain subsidiaries whose consolidated
financial statements reflect total assets of Rs. 4,315.30

Mumbai
April 23, 2010

156

Think Growth. Think Transformation. Think Reliance.

Reliance Industries Limited
Consolidated Balance Sheet as at 31st March, 2010

SOURCES OF FUNDS

Shareholders’ Funds
Share Capital
Equity Share Suspense
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

Schedule

As at
31st March, 2010

(Rs. in crore)

As at
31st March, 2009

2,978.02
-
1,38,024.96

11,694.40
52,911.12

2,24,125.28
63,934.03
1,60,191.25
17,033.68

2,404.32
10,707.93

34,393.32
10,082.92
13,890.83
91.40
58,458.47
10,647.21
69,105.68

38,890.57
3,695.02
42,585.59

1,374.68
69.25
1,19,812.61

1,41,002.98
573.53

1,21,256.54
138.90

10,747.73
65,508.87

64,605.52
10,677.57
2,16,859.60

76,256.60
9,551.33
2,07,203.37

1,57,182.43
50,138.23
1,07,044.20
73,845.97

1,77,224.93

1,80,890.17

2,596.43
3,839.11

13,112.25

6,435.54

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

26,520.09
2.33

19,874.06
3.60

2,16,859.60

2,07,203.37

‘A’

‘B’

‘C’
‘D’

‘E’

‘F’

‘G’

‘H’

‘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
April 23, 2010

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
P.M.S. Prasad
H.S. Kohli
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain

Dr. R. A. Mashelkar} Directors

Reliance Industries Limited
Consolidated Profit and Loss Account for the year ended 31st March, 2010

Reliance Industries Limited

157

Schedule

2009-10

(Rs. in crore)

2008-09

2,11,727.07
7,987.35

1,55,788.51
4,564.50

INCOME

Turnover
Less: Excise Duty / Service Tax Recovered
Net Turnover
Other Income (including share in associates)
Variation in Stocks

EXPENDITURE
Purchases
Manufacturing and Other Expenses
Interest and Finance Charges
Depreciation
Less: Transferred from Revaluation Reserve
[Refer Note 6, Schedule ‘N’]
Less: Transferred from Capital Reserve

‘I’
‘J’

‘K’
‘L’

Adjustment Pursuant to the Scheme of Amalgamation including
write off of Investments in Reliance Petroleum Limited
Less: Transferred from General Reserve

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
(Short) / Excess Provision for Tax for earlier years
Excess Provision for Tax for earlier years - Minority Interest
Transfer from Statutory Reserve

Amount Available for Appropriations
APPROPRIATIONS

14,000.62
2,991.80

63.02

-
-

Statutory Reserve
General Reserve
Debenture Redemption Reserve
Capital 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. 19,880.00)
Tax on Dividend on Preference Shares (Minority -
Interest Rs. 3,302.00, Previous Year Rs. 3,379.00)

2.90
14,000.00
189.50
8.65
-
2,084.67
346.24

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 11, Schedule ‘N’]
Significant Accounting Policies
Notes on Accounts
As per our Report of even date

‘M’
‘N’

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
April 23, 2010

V.M. Ambani
Company Secretary

2,03,739.72
10,791.33
6,034.99
2,20,566.04

7,537.51
1,71,343.29
2,059.58

10,945.80

1,91,886.18
28,679.86
3,124.91
-
1,131.37
24,423.58
79.56
24,503.14
5,391.95
(0.23)
-
33.94
29,928.80

1,51,224.01
1,914.24
2,269.54
1,55,407.79

7,201.77
1,22,869.63
1,816.27

5,650.98

1,37,538.65
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

7,712.58
1,987.14

74.46

7,728.92
7,728.92

1.04
11,728.92
340.05
-
1,897.05
-
322.40

16,631.96
13,296.84

82.29

53.39

14,289.46
5,391.95

54.11

55.30

Chairman & Managing Director

Executive Directors

}

For and on behalf of the Board
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
H.S. Kohli
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain

Dr. R. A. Mashelkar} Directors

158

Think Growth. Think Transformation. Think Reliance.

Reliance Industries Limited
Consolidated Cash Flow Statement for the year 2009-10

A: CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit before tax as per Profit and Loss Account

28,679.86

17,869.14

Adjusted for:

2009-10

(Rs. in crore)

2008-09

2.09
(10.77)
1.35
8.30
245.33
17.70
33.34
14,000.62
(2,991.80)
(63.02)
(1,799.43)
16.53
(296.18)
(8,605.57)
(8.30)
(1,716.18)
2,059.58

(5,790.65)

(14,396.67)

14,249.20

Miscellaneous Expenditure written off
Share in Income of Associates
Net Prior Year Adjustments
Diminution in value of Investments
Investment written off (net)
Impairment of Assets
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

893.59

29,573.45

6,138.73

24,007.87

2,876.25

(1,503.19)

(7,145.57)

(5,938.12)

23,635.33

(1.35)

(3,140.40)

0.69

20,494.27

(23,278.10)
261.34
(2,01,137.94)
2,03,782.64
(19.06)
2,153.17
7.12
(18,230.83)

(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)

Reliance Industries Limited

159

Consolidated Cash Flow Statement for the year 2009-10 (Contd.)

C: CASH FLOW FROM FINANCING ACTIVITIES:

Proceeds from Issue of Share Capital (Including Warrants)

Proceeds from Issue of Share Capital to Minority

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 (Used in) / from Financing Activities

Net (Decrease) / Increase in Cash and Cash Equivalents

Opening Balance of Cash and Cash Equivalents

Add: Upon addition / De-subsidiarisation of Subsidiaries

22,742.10

19.01

Closing Balance of Cash and Cash Equivalents

2009-10

53.54

459.00

6,535.21

(12,227.12)

(130.16)

(2,219.46)

(3,604.37)

(0.36)

(11,133.72)

(8,870.28)

22,761.11

13,890.83

(Rs. in crore)

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

4,521.44

22,742.10

4,474.16

47.28

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
April 23, 2010

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
P.M.S. Prasad
H.S. Kohli
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain

Dr. R. A. Mashelkar} Directors

160

Think Growth. Think Transformation. Think Reliance.

Schedules forming part of the Consolidated Balance Sheet

SCHEDULE ‘A’

SHARE CAPITAL

Authorised:

500,00,00,000 Equity Shares of Rs. 10 each

(250,00,00,000)

100,00,00,000 Preference Shares of Rs. 10 each
(50,00,00,000)

As at
31st March, 2010

(Rs. in crore)

As at
31st March, 2009

5,000.00

1,000.00

6,000.00

2,500.00

500.00

3,000.00

Issued, Subscribed and Paid up:

297,80,19,733 Equity Shares of Rs. 10 each fully paid up

2,978.02

(137,49,46,369)

Less: Calls in arrears - by others

(Rs. 3,922.50)

1,374.94

0.26

TOTAL

Notes:

194,12,11,766
(48,17,70,552)

52,75,89,219
(38,44,87,495)

45,04,27,345
(45,04,27,345)

2,978.02

1,374.68

Shares out of the issued and subscribed share capital were allotted as Bonus Shares by
capitalisation of Securities Premium and Reserves.

Shares out of the issued and subscribed share capital were allotted pursuant to the various
Schemes of amalgamation without payments being received in cash.

In the year 2004-05 the Company bought back and extinguished 28,69,495 equity shares.

During the year, the Company has issued and allotted 5,30,426 (Previous Year 1,49,632) equity shares to the eligible employees
of the Company and its subsidiaries under ESOS of which 2,42,222 equity shares were allotted pre-bonus and 2,88,204 equity
shares post bonus.
Issued, Subscribed and paid up capital excludes 29,23,54,627 (Previous Year 19,88,51,864) equity shares directly held by
subsidiaries/trust, before their becoming subsidiaries of the Company which have been eliminated.

* Adjusted for issue of bonus shares in 2009-10 in the ratio of 1:1.

Reliance Industries Limited

161

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 6, 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
Add: Transferred from Profit and Loss Account

Less: Capitalised on issue of bonus shares

Securities Premium Account
As per last Balance Sheet
Add: Premium on issue of shares
Add: On Amalgamation

Less: Premium on redemption / buy back of debentures / Bonds
Less: Capitalised on issue of bonus shares
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: Transferred from Profit and Loss Account
Less: Transferred to 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

Share in Reserves of Associates
Revaluation Reserve
As per Last Balance Sheet
Profit and Loss Account

TOTAL

As at
31st March, 2010

(Rs. in crore)

As at
31st March, 2009

12,229.78
227.59
12,457.37
2,991.80

51.90

880.36
(0.26)
880.10
-
63.02

887.94
8.65
896.59
887.94

45,366.22
50.97
-
45,417.19
80.19
738.85
(795.97)
45,394.12
0.02

927.07
189.50

88.03
2.90
33.94
1.55

54,003.95
14,000.00
68,003.95
-

1,198.63
13,055.45
14,254.08
1,987.14

37.16

9,413.67

12,229.78

817.08
(91.05)

3,604.78
481.50
4,086.28
3,131.46
74.46

887.94
-
887.94
-

880.36
29.40

8.65

887.94

21,313.80
16,727.04
13,429.09
51,469.93
13.17
-
6,090.54
45,366.22
1.80

45,394.10

45,364.42

1,116.57

927.07

587.02
340.05

87.25
1.04
-
0.26

55.44

88.03

50,003.95
11,728.92
61,732.87
7,728.92

68,003.95

54,003.95

9.71
13,296.84
1,38,024.96

9.71
5,391.95
1,19,812.61

* Cumulative amount withdrawn on account of Depreciation on Revaluation is Rs. 2,563.43 crore.

162

Think Growth. Think Transformation. Think Reliance.

Schedules forming part of the Consolidated 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, 2010

As at
31st March, 2009

(Rs. in crore)

9,682.82

8,642.12

575.86

2,033.50

1,234.67

201.05

72.11

1,435.72

11,694.40

72.11

10,747.73