Reliance Industries Limited Annual Report 2011

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FY2011 Annual Report · Reliance Industries Limited

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Reliance Industries Limited

Contents

Company Information

Board of Directors
Chairman and Managing Director
Mukesh D. Ambani

Executive Directors

Nikhil R. Meswani
Hital R. Meswani
P.M.S. Prasad
Pawan Kumar Kapil1

Non Executive Directors
Ramniklal H. Ambani
Mansingh L. Bhakta
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Mahesh P. Modi
Hardev Singh Kohli2
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar

Company Secretary

Vinod M. Ambani

Solicitors & Advocates Kanga & Co.

Chaturvedi & Shah
Deloitte Haskins & Sells
Rajendra & Co.

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

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

Auditors

1w.e.f. May 16, 2010

2upto May 16, 2010

Bankers
Allahabad Bank
Andhra Bank
Bank of America
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
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

Citibank N.A
Credit Agricole Corporate and
Investment Bank
Corporation Bank
Deutsche Bank
The Hong Kong and
Shanghai Banking
Corporation Limited

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

Standard Chartered Bank
State Bank of Hyderabad
State Bank of India
State Bank of Patiala
Syndicate Bank
The Royal Bank of Scotland
Union Bank of India
Vijaya Bank

Hazira
Village Mora, P.O. Bhatha
Surat-Hazira Road
Surat 394 510,
Gujarat, India
Jamnagar
Village Meghpar / Padana,
Taluka Lalpur
Jamnagar 361 280
Gujarat, India

Jamnagar SEZ Unit
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,
P.O. Patalganga 410 220
Near Panvel, Dist. Raigad
Maharashtra, India
Vadodara
P. O. Petrochemicals
Vadodara - 391 346,
Gujarat, India

Registrars & Transfer Agents

Karvy Computershare Private Limited,
Plot No. 17-24, Vittal Rao Nagar, Madhapur,
Hyderabad 500 081, India. Tel: +91 40 4465 5070 - 5099
Toll Free No. 1800 425 8998; Fax: +91 40 2311 4087.
e-mail: rilinvestor@karvy.com Website : www.karvy.com

37th Annual General Meeting on Friday, June 3, 2011 at 11.00 a.m.
at Birla Matushri Sabhagar, 19, Marine Lines, Mumbai 400 020.

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

New Businesses. New Technologies. New Partnerships.

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

2010-11

09-10

08-09

07-08

06-07

05-06

04-05

03-04

02-03

01-02

Rs. in crore

Turnover

58,000 2,58,651 2,00,400 1,46,328 1,39,269 1,18,354

89,124

73,164

56,247

50,096

45,404

$ Mn

Total Income

58,684 2,61,703 2,02,860 1,48,388 1,44,898 1,18,832

89,807

74,614

57,385

51,097

46,186

Earnings Before Depreciation,
Interest and Tax (EBDIT)

Depreciation

Exceptional Items

Profit After Tax

Equity Dividend %*

Dividend Payout

Equity Share Capital

Equity Share Suspense Account

Equity Share Warrants

9,234

41,178

33,041

25,374

28,935

20,525

14,982

14,261

10,983

9,366

8,658

3,051

13,608

10,497

5,195

4,847

4,815

3,401

3,724

3,247

2,837

2,816

(370)

4,733

412

4,549

20,286

16,236

15,309

19,458

11,943

9,069

7,572

5,160

4,104

3,243

2,385

3,273

130

2,084

3,270

1,897

1,631

1,574

1,454

1,682

110

1,440

1,393

535

734

100

1,393

1,045

52.5

733

698

47.5

663

1,393

1,396

1,054

342

Reserves and Surplus

33,247 1,48,267 1,33,901 1,24,730

78,313

62,514

48,411

39,010

33,057

28,931

26,416

Net Worth

33,981 1,51,540 1,37,171 1,26,373

81,449

63,967

49,804

40,403

34,453

30,327

27,812

Gross Fixed Assets

49,614 2,21,252 2,28,004 2,18,673 1,27,235 1,07,061

91,928

59,955

56,860

52,547

48,261

Net Fixed Assets

Total Assets

34,875 1,55,526 1,65,399 1,69,387

84,889

71,189

62,675

35,082

35,146

34,086

33,184

63,846 2,84,719 2,51,006 2,45,706 1,49,792 1,17,353

93,095

80,586

71,157

63,737

56,485

Market Capitalisation

76,911 3,42,984 3,51,320 2,39,721 3,29,179 1,98,905 1,10,958

76,079

75,132

38,603

41,989

Number of Employees

22,661

23,365

24,679

25,487

24,696

12,540

12,113

11,358

12,915

12,864

Contribution to National Exchequer

6,440

28,719

17,972

11,574

13,696

15,344

15,950

13,972

12,903

13,210

10,470

Key Indicators

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

Turnover Per Share - Rs.

Book Value Per Share - Rs.

Debt : Equity Ratio

EBDIT / Gross Turnover %

Net Profit Margin %

RONW % **

ROCE % **

2010-11

09-10

08-09

07-08

06-07

05-06

04-05

03-04

02-03

01-02

1.4

62.0

49.7

105.3

82.2

65.1

54.2

36.8

29.3

20.6

17.7

10.4

15.9

7.8

15.5

13.2

790.5

463.2

612.9

419.5

464.9

958.1

401.5

560.3

814.2

440.0

639.6

525.0

402.8

358.8

357.4

289.9

246.7

217.2

325.2

199.2

0.44:1

0.46:1

0.63:1

0.45:1

0.44:1

0.46:1

0.56:1

0.60:1

0.64:1

15.9

7.8

15.5

13.2

16.5

8.1

16.4

13.9

17.3

10.5

21.6

20.3

20.8

14.0

28.8

20.3

17.3

10.1

23.5

20.5

16.8

10.2

22.7

20.5

19.5

10.3

21.9

21.3

19.5

9.2

17.0

14.0

18.7

8.2

14.8

13.2

19.1

7.1

16.1

15.3

In this Annual Report $ denotes US$
1US$ = Rs. 44.595 (Exchange rate as on 31.03.2011)
* Adjusted for issue of bonus shares in 2009-10 in the ratio of 1:1
** Adjusted for CWIP and revaluation

1 0

New Businesses. New Technologies. New Partnerships.

Notice

Notice is hereby given that the Thirty-seventh Annual
General Meeting of the members of Reliance Industries
Limited will be held on Friday, June 3, 2011 at 11.00 a.m., at
Birla Matushri Sabhagar, 19, New Marine Lines, Mumbai
400 020, to transact the following businesses :

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.

Ordinary Business:

1. To consider and adopt the audited Balance Sheet as
at March 31, 2011, 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 & 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.”

By Order of the Board of Directors

Vinod M. Ambani
President and Company Secretary

April 21, 2011

Registered Office:
3rd Floor, Maker Chambers IV,
222 Nariman Point,
Mumbai 400 021, India
e-mail: investor_relations@ril.com

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.

In terms of Article 155 of the Articles of Association
of the Company, read with Section 256 of the
Companies Act, 1956, Shri Ramniklal H. Ambani, Shri
Nikhil R. Meswani, Prof. Ashok Misra and Shri
Yogendra P. Trivedi, 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. 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.

7. 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 Monday, May 9, 2011 to Saturday, May 14,
2011 (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 credited / dispatched between
June 4, 2011 and June 9, 2011 to those members
whose names shall appear on the Company’s
Register of Members on May 9, 2011; 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.

Reliance Industries Limited

1 1

9. 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 and Transfer Agents 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.

10. 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/Registrars and Transfer
Agents, M/s. Karvy Computershare Private Limited.

11. 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 2002-03, to the Investor
Education and Protection Fund (the IEPF) established
by the Central Government.

12. 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 / Registrars and Transfer Agents,
M/s. Karvy Computershare Private Limited.

13. 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’.

14. 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.

15. 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.

16. Members are advised to refer to the Shareholders’

Referencer provided in the Annual Report.

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

By Order of the Board of Directors

Vinod M. Ambani
President and Company Secretary
April 21, 2011
Registered Office:
3rd Floor, Maker Chambers IV,
222 Nariman Point, Mumbai 400 021, India
e-mail: investor_relations@ril.com

Important Communication to Members

The Ministry of Corporate Affairs has taken a “Green Initiative in the Corporate Governance” by allowing
paperless compliances by the companies and has issued circulars stating that service of notice/
documents including Annual Report can be sent by e-mail to its members. To support this green
initiative of the Government in full measure, members who have not registered their e-mail addresses, so
far, are requested to register their e-mail addresses, in respect of electronic holdings with the Depository
through their concerned Depository Participants. Members who hold shares in physical form are requested
to fill the appropriate column in the members feedback form (refer page 203 of the Annual Report) and
register the same with Karvy Computershare Private Limited. Postage for sending the feed back form will be
borne by the Company.

1 2

New Businesses. New Technologies. New Partnerships.

Management's Discussion and Analysis

Forward-looking statements

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

OVERVIEW

Value creation through operating excellence and new
initiatives

In line with its aspirations of ongoing growth, Reliance is
investing its resources in core businesses across the
integrated energy chain. It is also taking an initiative of
investing in new technologies and businesses that help
meet changing aspirations of millions of Indian consumers.
These strategies and initiatives are aimed to ensure that
Reliance delivers long-term growth and creates
unprecedented value for its stakeholders.

Reliance Industries Limited (RIL) has an integrated
business model that combines a long-term perspective,
with focus on operational excellence and disciplined
approach towards capital investment to deliver
shareholder value. The Company has identified, developed
and executed projects while applying best practices that
ensure superior project returns across a range of
scenarios. It has regularly generated higher income from
its productive capital base, as demonstrated by superior
returns on average capital employed. It has delivered
industry-leading financial and operating results that
multiply long-term shareholder value. RIL’s proven and
tested business model, and superior cash flow served its
shareholders well in the Financial Year 2010 – 2011 (FY-11).

FY-11 was a strong year for its upstream oil and gas
business. RIL completed two years of operations of its
KG-D6 production facility. It not only delivered new
supplies of crude oil and natural gas to the nation, but
also provided significant value for the Company and its

shareholders. Production from KG-D6 for FY-11 was 7.95
million barrels (MMBL) of crude oil, and 720 billion cubic
feet (BCF) of natural gas - a growth of 97.6% and 41.7%
respectively.

In FY-11, Reliance entered into four Joint Ventures (JV) in
the United States of America. These JVs, over a period,
will enhance Reliance’s position in development of
unconventional natural gas and oil resources and develop
new competencies in operating new businesses. The
Company is confident that the combination of its
complementary strengths will open new opportunities to
meet the growing global energy demand and raise value
for its shareholders.

In the downstream and chemical business, RIL maintained
a long-term strategic approach during the recent economic
downturn. The Company maintained operating rates
upwards of 100% in the refining and petrochemicals
business. It processed 66.6 million metric tonnes (MMT)
of crude, the highest ever, at its Jamnagar refinery complex.

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

(cid:122)

175 based on revenues
100 based on profits

RIL - BP alliance

During the year, RIL and BP announced a strategic
partnership in the oil and gas business. This partnership
comprises BP taking 30 per cent stake in 23 oil and gas
production sharing contracts that Reliance operates in
India, including the KG-D6 block, and the formation of a
joint venture (50:50) for sourcing and marketing gas in
India. The partnership will also endeavour to accelerate
the creation of infrastructure for receiving, transporting
and marketing natural gas in India. The partnership will
combine BP’s world-class deep-water exploration and
development capabilities with Reliance’s project
management and operations expertise.

BP will pay RIL an aggregate consideration of $ 7.2 billion,
and completion adjustments, for the interests to be
acquired in the 23 production sharing contracts in India.
Future performance payments of upto $ 1.8 billion could
be paid based on exploration success that results in the
development of commercial discoveries.

Completion of the transaction is subject to Indian
regulatory approvals and other customary conditions. RIL
has applied to local regulatory authorities and the
Government of India for necessary approvals for this
partnership.

Reliance Industries Limited

1 3

Shale gas joint ventures

The growing importance of U.S. shale gas resources is
reflected in USA’s Department of Energy’s EIA Annual
Energy Outlook 2011 energy projections, with technically
recoverable U.S. shale gas resources now estimated at
862 TCF. Given a total natural gas resource base of 2,543
trillion cubic feet (TCF), shale gas resources constitute
34% of the domestic natural gas resource base and 50%
of 48 onshore resources in the US. As a result, shale gas is
the largest contributor to the projected growth in
production, and by 2035, shale gas production is expected
to account for 46% of U.S. natural gas production as per
the report.

During the year, the Company took a significant step by
entering into partnerships in the United States of America
with Atlas Energy, Pioneer Natural Resources and Carrizo
Oil & Gas through three distinctive joint venture
agreements. It has also entered into a separate joint
venture with Pioneer Natural Resources aimed at
addressing the mid-stream opportunity in gas evacuation
and transportation.

RIL, through its subsidiary, Reliance Marcellus LLC, has
entered into a joint venture with the USA based Atlas
Energy, Inc., Pittsburgh, Pennsylvania, under which
Reliance acquired a 40% interest in Atlas’s core Marcellus
Shale acreage position. The acreage will support the
drilling of over 3,000 wells with a net resource potential of
approximately 13.3 TCFe (5.3 TCFe net to Reliance).

RIL, through its subsidiary, Reliance Eagleford Upstream
Holding LP, has entered into a joint venture with the USA
based Pioneer Natural Resources Company, Irving, Texas,
under which Reliance acquired a 45% interest in Pioneer’s
core Eagle Ford shale acreage position. The acreage will
support the drilling of over 1,750 wells with a net resource
potential to the joint venture of nearly 10 TCFe (4.5 TCFe
net to Reliance).

RIL, through its subsidiary, Reliance Marcellus II LLC,
has entered into a joint venture with the USA based Carrizo
Oil & Gas Inc., under which Reliance acquired 60% interest
in Marcellus Shale acreage in central and northeast
Pennsylvania. The acreage will support the drilling of
approximately 1,000 wells with a net resource potential of
nearly 3.4 TCFe (2.0 TCFe net to Reliance).

Joint venture for Butyl Rubber production in India

During the year, RIL and Russia’s SIBUR announced a
joint venture for the setting up of a facility for producing
100,000 tonnes of butyl rubber in India. This is a significant
step towards Reliance’s commitment to service India’s

growing automotive sector by bringing in complex
technologies, available with only a very few companies
globally. The setting up of domestic manufacturing of butyl
rubber will fulfill a longstanding demand of the Indian
tyre and rubber industry.

Spearheading the knowledge revolution

During the year, RIL acquired a 95% stake in Infotel
Broadband Services Limited, which emerged as a
successful bidder in all the 22 circles of the auction for
Broadband Wireless Access (BWA) spectrum conducted
by the Department of Telecommunication, Government of
India. RIL has invested Rs. 4,201.64 crore by way of
subscription to equity capital issued by Infotel Broadband.
RIL sees the broadband opportunity as a new frontier of
knowledge economy in which it is confident of taking
leadership position and providing India with an
opportunity to be in the forefront among the countries
providing world-class 4G network and services.

Continuing success in exploration and production

This was yet another successful period for RIL’s oil and
gas exploration and production business. The Company
made five oil discoveries in the on-land exploratory block
CB–ONN–2003/1 (CB-10 A&B) in the Cambay basin,
awarded under the NELP-V round of exploration bidding.
These discoveries are significant as this play fairway is
expected to open more oil pool areas, leading to better
hydrocarbon potential within the block. The block covers
an area of 635 sq. km. in two parts, viz. Part A & Part B. RIL
holds 100% participating interest (PI) in the block.

The Company also made a gas discovery in the exploration
block KG-DWN-2003/1 (KG-V-D3) of NELP-V. The deep-
water block KG-DWN-2003/1 is located in the Krishna
basin, about 45 km. off the coast in the Bay of Bengal. The
block covers an area of 3,288 sq. km. in which RIL holds a
90% PI. During the period, the following six discoveries
were notified to the Directorate General of Hydrocarbons
(DGH), Government of India:

(cid:122)

Dhirubhai-47 in Well AF1 in CB-10 block
Dhirubhai-48 in Well AJ1 in CB-10 block
Dhirubhai-49 in Well AT1 in CB-10 block
Dhirubhai-50 in Well AN1 in CB-10 block
Dhirubhai-51 in Well AR1 in CB-10 block
Dhirubhai-52 in Well W1 in KG-V-D3 block

Supreme Court judgement in RNRL-RIL dispute

The Honourable Supreme Court of India has delivered its
judgment in the Reliance Natural Resources Limited (RNRL)
-RIL legal dispute. The judgment recognized the dominant

1 4

New Businesses. New Technologies. New Partnerships.

role of the provisions of the Production Sharing Contract
and upheld the policies formulated by the Government
under which it has the authority to regulate production
and distribution of natural gas. RIL and RNRL signed a
Gas Supply Master Agreement in compliance with the Gas
Utilization Policy and EGOM decisions. During the year,
RIL and Reliance ADA Group companies approved and
signed an agreement cancelling all existing non-compete
arrangements entered between the two groups in January
2006, pursuant to the scheme of reorganization of the
Reliance Group and entered a new simpler, non-compete
agreement with respect to only gas-based power
generation.

Financial performance

Turnover

PBDIT

Cash profit

Net profit

Rs. 2,58,651 crore
$ 58,000 million

Rs. 41,178 crore
$ 9,234 million

Rs. 34,530 crore
$ 7,743 million

Rs. 20,286 crore
$ 4,549 million

+ 29%
+ 30%

+ 25%
+ 26%

+ 24%
+ 25%

+ 25%
+ 26%

The net profit for the year was at Rs. 20,286 crore ($ 4,549
million) with a Compounded Annual Growth Rate (CAGR)
of 23% over the past 10 years. RIL has announced a
dividend of 80% amounting to Rs. 2,772 crore
($ 622 million), including dividend distribution tax. This is
one of the highest payouts by any private sector company
in India.

(cid:122)

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:
13.4% of exports
6.9% of the indirect tax revenues
4.8% of the market capitalisation
(cid:122) Weightage of 11.9% in the BSE Sensex
(cid:122) Weightage of 10.1% in the NSE Nifty

(cid:122)

FINANCIAL REVIEW

RIL delivered superior financial performance with
improvements across key parameters. The turnover
achieved for the year ended March 31, 2011 was Rs.
2,58,651 crore ($ 58.0 billion), a growth of 29% over the
previous year. The increase in revenue was due to 11%
rise in volumes and 18% rise in prices. During the year,
exports including deemed exports, were higher by 33% at
Rs. 1,46,667 crore ($ 32.9 billion).

The consumption of raw materials increased by 31% from
Rs. 1,47,919 crore to Rs. 1,93,234 crore ($ 43.3 billion). This
was mainly on account of higher crude oil processed in
the SEZ refinery. Traded goods purchases were Rs. 1,464
crore ($ 328 million) as compared to Rs. 2,996 crore in the
previous year.

The staff cost was Rs. 2,624 crore ($ 588 million) for the
year as against Rs. 2,350 crore in the previous year.

The operating profit before other income increased by
25% from Rs. 30,581 crore to Rs. 38,126 crore ($ 8.5 billion).
The net operating margin for the period was 15.4 % as
compared to 15.9% in the previous year.

Other income was higher at Rs. 3,052 crore ($ 684 million)
against Rs. 2,460 crore, primarily due to higher average
cash balances.

EBITDA increased by 25% from Rs. 33,041 crore to
Rs. 41,178 crore ($ 9.2 billion).

Interest cost was higher at Rs. 2,328 crore ($ 522 million)
as against Rs. 1,997 crore. The gross interest cost was
lower at Rs. 2,802 crore ($ 628 million) as against Rs. 2,981
crore for the previous year on account of lower interest
rates. The interest capitalised was lower at Rs. 474 crore
($ 106 million) as against Rs. 984 crore in the previous year
due to commissioning of projects.

Depreciation (including depletion and amortisation) was
higher at Rs. 13,608 crore ($ 3.1 billion), against Rs. 10,497
crore in the previous year, primarily on account of higher
depletion charges in oil and gas and incremental
depreciation due to the SEZ refinery.

Profit after tax was Rs. 20,286 crore ($ 4.5 billion) as against
Rs. 16,236 crore for the previous year, an increase of 25%.

The earning per share (EPS) for the year was Rs. 62.0
($ 1.4).

Net gearing at 13.5%, net debt to equity of 0.17, return on
capital employed at 13.2% and return on equity at 15.5%
are measures of RIL’s strong financial position at the end
of the year.

During the year, the Company has issued and allotted
29,99,648 equity shares to the eligible staff of the Company
and its subsidiaries under Employees Stock Option
Scheme. As a result, the Company’s equity share capital
stands at Rs. 3,273 crore.

The net capital expenditure for the year ended March 31,
2011 was Rs. 6,068 crore ($ 1.4 billion).

During the year, a total of Rs. 28,719 crore ($ 6.4 billion)
was paid in the form of taxes and duties.

Reliance Industries Limited

1 5

RIL maintained its status as India’s largest exporter. The
exports, including deemed exports, were at Rs. 1,46,667
crore ($ 32.9 billion) as against Rs. 1,10,176 crore in the
previous year.

RIL exported to 122 countries around the world. The
exports represent 57% of RIL’s turnover. Petroleum
products constitute 88% while the balance is contributed
by petrochemicals.

Resources and liquidity

In FY-11, RIL took advantage of low interest rates and
raised capital at historically low costs. During the year,
RIL raised $ 1 billion through external commercial
borrowings at competitive rates and issued Rs. 500 crore
of debentures.

Additionally, Reliance Holding USA, Inc., a wholly owned
subsidiary of RIL raised $ 1.5 billion through the issuance
of 10 and 30 year senior notes. The notes were tightly
priced as a result of significant investor demand and
allowed Reliance to considerably extend its maturity
profile. The offering was India’s largest corporate bond
issuance and the first US Dollar 30 year bond issuance
out of Asia since 2003, showcasing the creditworthiness
of Reliance and its access to public capital markets.

RIL continuously undertakes liability management to
reduce cost of debt and to diversify its liability mix.

As on March 31, 2011, RIL’s total long-term debt was at
Rs. 55,092 crore ($ 12.4 billion). RIL’s cash and cash
equivalent stood at Rs. 42,393 crore ($ 9.5 billion) as at
March 31, 2011. RIL’s net debt was Rs. 25,004 crore which
is the equivalent of 0.60 times of its FY-11 EBITDA. The
increase in cash was primarily driven by the receipt of
Rs. 9,004 crore ($ 2.0 billion), part of the total consideration
of $ 7.2 billion to be received from BP Exploration (Alpha)
Limited. RIL continued to efficiently manage its short-
term resources by placing them in very liquid, highly rated
securities such as bank fixed deposits, CDs, Government
securities and bonds.

RIL’s short-term debt of Rs. 12,305 crore ($ 2.8 billion) is
adequately covered by its net working capital.

As at the end of the fiscal year, RIL’s total debt was Rs.
67,397 crore. 85% of long-term debt and almost all of RIL’s
short-term debt was denominated in foreign currencies.

RIL’s long-term debt to equity ratio was at 0.37. RIL’s gross
debt to equity ratio, including long-term and short-term
debt as on March 31, 2011, was at 0.44, while the net debt
to equity ratio was at 0.17. As on March 31, 2011, RIL’s
net gearing was 13.5 %.

RIL’s superior credit profile is reflected in its lending
relationships, with over 100 banks and financial institutions
having commitments to RIL.

RIL’s financial discipline and prudence is also reflected in
the strong credit ratings ascribed by rating agencies. Its
continued balance sheet strengthening in FY-11 resulted
in Moody’s, Fitch and S&P recently upgrading their
outlook for the Company. Moody’s has rated RIL’s
international debt at investment grade Baa2, with an
upgraded outlook from ‘stable’ to ‘positive’. S&P has rated
RIL’s international debt as BBB, which is a notch above
India’s sovereign rating.

S&P recently upgraded its outlook on RIL from ‘stable’ to
‘positive’. 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 & GAS EXPLORATION AND PRODUCTION

Energy markets have improved significantly over the past
12-15 months as a result of improved economic growth,
higher demand for refined products and limited supplies
of crude oil. In 2010, global oil demand grew by 3.4% (or
2.9 MMBD) to 87.9 MMBD, which is the highest growth
in the last 30 years. Emerging Asia which comprises India
and China, accounted for 40% of the oil demand increase.
Global LNG markets also grew by 13% and are currently at
275 million tonnes per annum (MMTPA).

Crude prices increased 25% during the year wherein Brent
oil prices averaged $86.7/bbl vis-à-vis $69.5/bbl in
FY-10. In FY-11, the US benchmark Henry Hub gas prices
averaged $4.13/MMBTU vis-à-vis $3.98/MMBTU in
FY-10. Prices remained range-bound in the US due to excess
drilling and lack of export infrastructure. However, Asian
LNG prices remained linked to crude oil and spot prices in
recent months touched $10-12/MMBTU.

It is expected that global energy consumption growth will
average at around 1.7% per annum over the next two
decades. Of this, non-OECD energy consumption is
expected to be 68% higher by 2030, averaging 2.6% p.a.
growth, and accounting for 93% of global energy growth.
OECD energy consumption in 2030 is expected to be
around 6% higher than today, with growth averaging at a
measly 0.3% p.a. over the next two decades.

The fuel mix is changing relatively slowly, due to long
asset lifetime, but gas and non-fossil fuels are gaining
share at the expense of coal and crude oil. The fastest
growing fuels are renewables (including biofuels) which

1 6

New Businesses. New Technologies. New Partnerships.

are expected to grow at 8.2% p.a. 2010-30; among fossil
fuels, gas grows the fastest (2.1% p.a.).

Non-OECD countries are likely to account for 80% of the
global rise in gas consumption, with growth averaging at
around 3% p.a. Demand growth is expected to be the
fastest in non-OECD Asia (4.6% p.a.) and the Middle East
(3.9% p.a.). It is expected that over the next two decades,
China could consume about 43 BCF per day, which is
comparable to that of the 47 BCF per day that EU currently
consumes. The growth is expected to remain modest in
OECD markets (1% p.a.), particularly in North America.

Oil continues to suffer a long run decline in market share,
while gas is steadily gaining. Natural gas is projected to
be the fastest growing fossil fuel globally. Production is
expected to grow in every region except Europe, with Asia
accounting for the world’s largest production and
consumption increments.

The IEA estimates that global upstream capital spending,
which had fallen by 15% in 2009, has rebound in 2010 and
is pegged at $ 470 billion. Global offshore capital
expenditure is estimated at $ 150 billion and nearly $ 874
billion is expected to be spent over the next five years. A
substantial portion of this investment will flow into deep-
water. Deep-water capital expenditure is pegged at nearly
$ 50 billion and deep-water production is set to double in
the next five years. Currently, there are very few fields
with water depths of more than 2,000 meters under
development. Many of the recent discoveries have been
in those water depths. The capital expenditure sanctioned
in this water depth is likely to double by 2012.

The role of unconventional oil is also expected to increase
significantly and will touch 10% of world oil demand by
2035.

India continues to remain amongst the fastest growing
economies of the world with a projected growth of 8-9%.
Consequently, India’s energy needs are expected to treble
by 2035 from 468 million tonnes of oil equivalent (MTOE)
to nearly 1405 MTOE. India can fulfill its agenda for climate
change as natural gas used to generate power has half the
CO2 emissions of conventional coal power generation and
near-zero sulphur emissions.

Indian gas market

In India, gas constitutes around 10% of the current energy
basket compared to the global average of 24% and hence
presents a vast potential for growth. The demand for
natural gas in India is expected to grow at a CAGR of 10%
over the next five years and could soon be a significant
player in the global gas market.

RIL – BP partnership

On February 21, 2011, RIL and BP announced a strategic
partnership between the two companies and signed the
relationship framework and transactional agreements. The
partnership across the full value chain comprises BP taking
a 30% stake in 23 oil and gas production sharing contracts
that Reliance operates in India, including the producing
KG-D6 block. The partnership will aim to combine BP’s
deep-water exploration & development capabilities with
Reliance’s project management & operations expertise. The
two companies will also form a joint venture (50:50) for the
sourcing and marketing of gas in India and bid together
for incremental opportunities in the deep-water blocks in
the east coast of India.
BP will pay RIL an aggregate consideration of $ 7.2 billion,
and completion adjustments, for the interests to be
acquired in the 23 production-sharing contracts. Future
performance payments of upto $ 1.8 billion could be paid
based on exploration success that results in development
of commercial discoveries. RIL will continue to be the
operator under the production-sharing contracts.
Completion of the transactions is subject to regulatory
and the Government of India approvals.

RIL gas marketing

KG-D6 was the single largest source of domestic gas in
the country for FY-11 and accounted for almost 35% of
the total gas consumption in India. The gas from KG-D6
catered to demand from 57 customers in critical sectors
like fertilizer, power, steel, petrochemicals and refineries.
The gas from KG-D6 accounted for about 44% of the total
domestic gas production paving the way for increased
energy independence for the country.

RIL’s E&P business: KG-D6

KG-D6 gas fields completed 730 days of 100% uptime and
zero-incident production. An average daily gas production
from KG-D6 block for the year was 55.9 MMSCMD with a
cumulative production of 1,257 BCF since inception, of
which 720 BCF was produced in the current fiscal. An
average oil production for the year from the block was
21,971 barrels per day with a cumulative production of 14
MMBL of oil and condensate since inception, of which 8
MMBL of oil and 1 MMBL of condensate was produced
in the current fiscal.

In the D1-D3 gas fields a total of 20 wells have been drilled,
of which 18 are production wells. Of these, 2 wells have
been drilled this fiscal.

6 wells in the D26 field are under production. Of these,
MA-2 which was earlier a gas injection well has been

Reliance Industries Limited

1 7

converted to a production well since April 2010.

An integrated development plan for all gas discoveries in
KG-D6 is being conceptualized. This will encompass
existing wells and other discoveries within the block to
maximize capital efficiency and to accelerate monetization.

Other domestic blocks

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

• Well W1 in the KG-V-D3 block

• Well AF1, AJ1, AT1, AN1 and AR1 in on-land

CB-10 block

The Company has also submitted initial proposal for
commerciality to DGH for review and discussion for the
following blocks:

•

Discovery D33 in GS-01 block

Discoveries D39 and D41 in KG-V-D3 block

Discovery D36 in KG-D4 block

RIL has submitted an integrated appraisal programme for
all discoveries in Part A of CB-10 block. Further, RIL has
been continuing with the appraisal activities for the other
discoveries in KG-D6, KG-V-D3 and CB-10 blocks.

In FY-11, RIL has relinquished CB-ON/1 block due to their
poor prospectivity. Currently, RIL’s portfolio consists of
28 exploration blocks.

Panna-Mukta and Tapti fields

The Panna-Mukta fields produced 9.3 MMBL of crude oil
and 52.1 BCF of natural gas in FY-11 – a decline of 31%
and 25% respectively over the previous year. The lower
volumes are on account of complete shutdown due to
failure of the single point mooring system (SPM) and
parting of anchor chains 4 and 5 to the SPM from July 20,
2010 to October 25, 2010.

Tapti fields produced 1.2 MMBL of condensate and
95.2 BCF of natural gas in FY-11 – a decline of 22% and
13% respectively over the previous year. The decrease in
production was due to a natural decline in the reserves.

Drilling of 6 wells in Panna-L is expected to commence
soon and oil production is expected in the later part of
FY-12. Its reserves are estimated at 7.0 MMBL. The
anticipated production from all 6 wells is approximately
3,000 BOPD.

•

Over 40 core holes drilled, logged and tested for gas
content, permeability and coal properties

31 wells air drilled and tested for productivity

75 hydraulic fracturing jobs done

5 cavitation completion wells and 2 sets of in-seam
horizontal wells

The process for acquiring land for well sites, market
assessment & infrastructure for evacuation and
transportation of gas has commenced.

International business

During the year, Reliance entered into one of the fastest
growing opportunities emerging in the U.S. unconventional
gas business through three upstream joint ventures. These
joint ventures will materially increase Reliance’s resources
base and provide Reliance with an entirely new platform
to grow its exploration and production business while
simultaneously enhancing its ability to operate
unconventional resource projects in the future.

RIL - Chevron

RIL, through its subsidiary, Reliance Marcellus LLC,
entered into a joint venture with Atlas Energy, Inc. (now
owned by Chevron Corporation) under which Reliance
acquired a 40% interest in Atlas’ core Marcellus shale
acreage position. The acquisition cost of participating
interest in the JV consisting of $ 339 million of upfront
payment and an additional payment of $ 1.36 billion under
a carry arrangement for 75% of Atlas’s capital costs over
an anticipated seven and a half year development
programme. Reliance becomes a partner in approximately
300,000 net acres of undeveloped leasehold in the core
area of the Marcellus shale in southwestern Pennsylvania.
The acreage will support the drilling of over 3,000 wells
with a net resource potential of approximately 13.3 TCFe
(5.3 TCFe net to Reliance).

While Atlas will serve as the development operator for
the joint venture, Reliance is expected to begin acting as
development operator in certain regions in coming years
as part of the joint venture. Under the framework of the
joint venture, Atlas will continue acquiring leasehold in
the Marcellus shale region and Reliance will have the
option to acquire 40% share in all new acreage. Reliance
also obtains the right of first offer with respect to potential
future sales by Atlas of around 280,000 additional
Appalachian acres currently controlled by Atlas.

CBM blocks

RIL - Pioneer

RIL holds 3 CBM blocks in Sohagpur (East), Sohagpur
(West) and Sonhat. So far, RIL has completed the following
work in the Sohagpur (East) and Sohagpur (West) blocks:

RIL, through its subsidiary, Reliance Eagleford Upstream
LP, entered into a joint venture with Pioneer Natural
Resources Company under which Reliance acquired a 45%

1 8

New Businesses. New Technologies. New Partnerships.

interest in Pioneer’s core Eagle Ford shale acreage position
in two separate transactions. Pioneer and Newpek LLC,
Pioneer’s existing partner in Eagle Ford, simultaneously
conveyed 45% of their respective interests in the Eagle
Ford to Reliance. Newpek owned an approximate 16% non-
operated interest in Pioneer’s core Eagle Ford shale
acreage. Following the transaction, Pioneer, Reliance and
Newpek own 46%, 45% and 9% of the joint venture
interests, respectively.

The joint venture has an approximate net working interest
of 91% in 289,000 gross acres implying 263,000 net acres.
Reliance paid $ 1.315 billion for its implied share of 118,000
net acres. This upstream transaction consideration
included combined upfront cash payments of $ 263 million
and additional $ 1.052 billion capital costs under a carry
arrangement for 75% of Pioneer’s and Newpek’s capital
costs over an anticipated four years. The joint venture’s
leasehold, which is largely undeveloped, is located in the
core area of the Eagle Ford shale in south Texas. Low
operating costs, significant liquids content (70% of the
acreage lies within the condensate window) and excellent
access to services in the region combine to make the Eagle
Ford one of the most economically attractive
unconventional resources in North America. Pioneer
believes the acreage will support the drilling of over 1,750
wells with a net resource potential to the joint venture of
approximately 10 TCFe (4.5 TCFe net to RIL).

The joint venture plans to increase the current drilling
programme to approximately 140 wells per year within three
years. Also included in the transaction is current
production of 28 MMCFe/d (11 MMCFe/d net to Reliance)
from five currently active horizontal wells. While Pioneer
will serve as the development operator for the upstream
joint venture, Reliance is expected to begin acting as
development operator in certain areas in coming years as
part of the joint venture. Under the framework of the joint
venture, Pioneer will continue acquiring leasehold in the
Eagle Ford Shale and Reliance will have the option to
acquire a 45% share in all newly acquired acres.

Additionally, Reliance and Pioneer formed a midstream
joint venture that will service the gathering needs of the
upstream joint venture. Reliance’s subsidiary, Reliance
Eagleford Midstream LLC, paid $ 46 million to acquire a
49.9% membership interest in the joint venture. Pioneer
and Reliance will have equal governing rights in the joint
venture and Pioneer will serve as operator.

RIL - Carrizo

RIL, through its subsidiary, Reliance Marcellus II, LLC,
entered into a joint venture with Carrizo Oil & Gas, Inc.

Under the transaction, Reliance acquired a 60% interest in
Marcellus shale acreage in Central and Northeast
Pennsylvania that was held in a 50:50 joint venture between
Carrizo and ACP II Marcellus LLC, an affiliate of Avista
Capital Partners. Pursuant to the transaction, Reliance
acquired 100% of Avista’s interest and 20% of Carrizo’s
interests in the joint venture. Reliance and Carrizo own
60% and 40% interests, respectively, in a newly formed
joint venture between the companies. Reliance agreed to
a total consideration of $ 392 million, comprising $ 340
million of initial payment and $ 52 million of drilling carry
obligations. The drilling carry obligations will provide for
75% of Carrizo’s share of development costs over an
anticipated two year development programme.

The joint venture will have approximately 104,400 net acres
of undeveloped leasehold in the core area of the Marcellus
shale in central and northeast Pennsylvania, of which
Reliance’s 60% interest will represent approximately 62,600
net acres. This acreage is expected to support the drilling
of approximately 1,000 wells over the next 10 years, with a
net resource potential of about 3.4 TCFe (2.0 TCFe net to
Reliance).

Conventional E&P international blocks

RIL has 13 blocks in its international conventional 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 99,145 sq. km.

Reliance Exploration & Production DMCC (REP DMCC)
has farmed in Block 39 (Peru) with 10% participation
interest and relinquished Block 155 (Peru) where REP
DMCC had 28.30% participation interest.

During the year, the following activity was undertaken as
part of the exploratory campaign:

•

2D acquisition in Yemen (Blocks 34 and 37), Oman
(Block 41) and Peru (Block 39). The total 2D acquisition
was 1395 LKM.

3D acquisition of 800 and 400 sq.km. of 3D in Colombia
Borojo North and South respectively.

Drilled 3 exploratory wells, 1 each in East Timor, Rovi
and Sarta. Drilling in Timor was met with limited
results.

The results following the drilling campaign in blocks Oman
18 and East Timor K have not been encouraging and
accordingly, the expenditure incurred on these blocks
amounting to $177 million (Rs. 807 crore) has been fully

Reliance Industries Limited

1 9

provided for in the books of REP DMCC, a wholly-owned
subsidiary of RIL.

REFINING AND MARKETING

A year of consolidation and growth

The crude oil demand recovered strongly after a period of
contraction in 2009. As a consequence, oil inventories
reduced to five-year averages resulting in lowering OPEC
spare capacity. Higher oil production also resulted in lower
spare capacity and consequently putting upward pressure
on prices. Higher demand for light products and higher
refining utilisation rates resulted in widening light-heavy
differential.

The growing gap between demand and oil supply, coupled
with strong crude prices, is encouraging OPEC producers
to further ramp up production. This is resulting in increased
supplies of heavier crudes and further impacting light-
heavy differentials. This should cause light-heavy spread
to widen, and hence improved complex refining margins.

For FY-11, Arab light-heavy differential averaged at $ 3.2/
bbl, an increase of 86% over the previous year.

According to IEA, oil demand in 2010 grew to 87.9
MMBPD, up 3.4% in 2010 vis-à-vis 2009. It is pertinent to
note that demand growth in 2009 was (-)1.3% vis-à-vis
2008 and therefore, seen in the context of the change over
the last 2 years, growth in 2010 was in excess of 4.5%, the
fastest recovery in over a decade. Demand growth in 2010
was driven by non-OECD countries which contributed to
an additional growth of 2.2 MMBPD (5.7% on a year-on-
year basis) which was 76% of global demand growth.

Average crude oil prices ($/bbl)

FY-11

FY-10

High

Low Average High Low Average

WTI
106.8
Brent 116.9
Dubai 111.6

65.6
67.6
68.2

83.3
86.7
84.2

83.5
80.5
81.3

45.9
46.5
47.2

70.6
69.6
69.5

(Source: Platts)

The consumption of middle distillates, the part of the barrel
that is most levered to the economic cycle has picked up
particularly strongly in recent months, leading to higher
global oil demand. Middle distillate product cracks are
expected to continue to rise due to strong demand for
these products across Asia. Stronger oil demand, delays
in new refining capacities in Asia, and widening light-
heavy oil price differential going forward provide a further
upside to complex refining margins in Asia.

Geopolitical unrest in the Middle East/North Africa regions
has been a major cause for the oil price increase in early
2011, with increasing focus on potential contagion to major
oil exporters beyond Libya. Since the oil price spiked in
February 2011, refining margins have strongly recovered
and remain higher across all regions, driven by strong
diesel margins, with Asian margins close to all-time highs.

Refinery outages of around 1.4 MMBPD in Japan have
taken away around 350,000 BPD of diesel supply from the
domestic market. Prior to the earthquake, Japan’s 4.5
MMBPD refining capacity was running at close to 90%
with diesel production of around 1.25 MMBPD. Large Asian
export-oriented refiners are likely to shift products to Japan,
leading to tightening supply in the European market.

Refinery capacity and utilization

It is estimated that the net refining capacity addition in
2009 was 2.6 MMBPD and a further 0.5 MMBPD in 2010.
Limited capacity addition in 2010, strong demand growth
and wider margins have helped utilization rates improve
during the year. The average capacity utilization rates in
FY-11 for refineries in North America, Europe and Asia
were at 83.8%, 77.8% and 83.9% as compared to 81.6%,
76.6% and 83.5% of last year’s respectively.

With higher global GDP forecasts and higher global oil
demand forecasts coupled with minor capacity additions,
refining utilisation rates are expected to improve over the
next few years.

Demand for petroleum products

Light distillates

Gasoline was a weak link in the otherwise improving
refining business. For most of the year, high inventories
kept gasoline markets in USA amply supplied. Structural
issues, like tightening fuel standards and rising share of
ethanol, are likely to impact the gasoline cracks in the
medium term.

Recent improvement in overall economic condition has
had its positive impact. Gasoline inventory draws are
presently higher at 1.9% and below the 5-year average
and 5.3% below the year-ago level. On a year-on-year
basis, the DOE of USA estimates gasoline demand is up
1.1% as Americans drove 0.2% more in early 2011 compared
to the year-ago period.

Gasoline consumption in non-OECD is underpinned by
rising incomes, younger demographics and surging car
sales of China, India, Brazil and other emerging economies.

2 0

New Businesses. New Technologies. New Partnerships.

Middle distillates

These have been the harbinger of the improvement seen
in refining margins during the year. Better demand and
improving prospects have resulted in diesel cracks at early
2008 levels. It is pertinent to note that the refining industry
has actually had to operate at close to 2008 peak diesel
yields in 2H FY-11 in order to meet demand.

Given the loss of refinery capacity in Japan, growing
industrial demand for diesel generators in the country and
on-going diesel demand from emerging market economies,
the supply cushion is clearly smaller than it otherwise
would have been.

Middle distillate stocks are at a virtually identical level to
those seen at the beginning of 2007, six months ahead of
the start of the rally that culminated with diesel cracks
close to $50/bbl. With crude oil stocks once again tight,
and concern rising as to whether OPEC supplies will be
sufficient to meet peak summer demand, the conditions
for a rapid distillate stock draw - similar to the one seen in
2007 - are highly possible.

A much faster and stronger economic growth in non-OECD
has resulted in higher demand for diesel. Supporting
factors for Asian diesel market were strong demand for
low sulphur diesel from India. China suffered from diesel
shortage in the second half of the year, prompting increased
import requirements.

Increased business, personal travel and global trade led
to demand growth and better aviation fuel margins.

Changing trends

Petroleum products demand growth, product mix
redistribution and progressively stricter quality
requirements will continue to reshape the refining industry.
The trend is towards lighter and lower sulphur refined
transportation fuels. All regions of the world, except Africa,
will reduce sulphur in gasoline to below average 150 ppm
by 2020. For diesel, all regions except Africa will have
sulphur content below an average content of 50 ppm.

Changing product specifications for sulphur (parts per
million)

2010

2015

2020

Country

India
Russia

Gasoil

2010
500 – 50
500

2015
50 - 10
50 - 10

2020
50 – 10
10

US
EU
Brazil
China
India
Russia

15
15
10
10
50
500 – 50
350 – 50 350 - 10
50 - 10
500 – 50
50 - 10
2000 - 150

15
10
10
50 – 10
50 – 10
10

The continuing global trend of tightening product
specification presents new trade and margin opportunities
for large modern refiners like Reliance, which has the ability
to produce large quantities of ultra-clean fuels.

Demand for petroleum products in India

The demand for petroleum products in India increased
from 130.5 MMT to 134.4 MMT, reflecting a growth of
2.9% in FY-11. The Indian refining capacity increased to
184.1 MMT from 179.9 MMT. Details of product-wise
demand and growth during the last year are as follows:

(In KT)
Diesel
Gasoline
ATF
LPG
Kerosene
Naphtha
Others
Total

FY-11
59,869
14,200
5,078
13,679
8,928
8,951
23,674
134,378

FY-10
56,148
12,818
4,627
12,516
9,304
9,014
26,131
130,559

Growth (%)
6.6
10.8
9.7
9.3
-4.0
-0.7
-9.4
2.9

An increase in per capita income led to higher penetration
of personal vehicles (cars and two-wheelers) which resulted
in double digit growth in gasoline demand. Higher
economic activity resulted in higher diesel demand as well
as increased air travel. Increase in availability of natural
gas resulted in reducing demand for naphtha while
improved distribution of LPG and lower domestic
production impacted sales of kerosene.

Gross refining margins

Country

Gasoline

US
EU
Brazil
China

30
10
<1000
150 – 50

30
10
<1000
150 - 10

30
10
10
50 – 10

A robust demand in Asia led to improvement in key product
cracks virtually throughout the year. A strong growth in
personal automobile ownership in developing Asia
resulted in healthy gasoline cracks in the region. Middle
distillates were the largest contributors to improved

Reliance Industries Limited

2 1

GAPCO

Reliance has consolidated operations of its GAPCO
subsidiaries in East Africa. GAPCO group owns and
operates large storage facilities and also has a well-spread
retail distribution network. It owns and operates large
coastal storage terminals in Dar-e-Salaam (Tanzania),
Mombasa (Kenya) and an inland terminal at Kampala
(Uganda) and has well-spread depots in East Africa.

GAPCO achieved a turnover of $ 1.1 billion for 2010
(January-December) which was 36.2% higher as compared
to the previous year. GAPCO’s EBITDA for 2010 was $
29.7 million, an increase of 26.9% on a year-on-year basis
while profit before tax increased by 24.5% to $ 19.3 million.
It sold 1.6 million kilo litres of petroleum products during
2010, which was 23.6% higher over the previous year.

Strategy and outlook

Reliance is best positioned to capture top decile margins
as a result of processing cheaper, heavier crudes and
benefitting from low operating costs. Built in the last
decade, the RIL refineries are state-of-the-art and among
the most complex refineries in the world. Strategically
located on the west coast of India, it benefits from low
transportation costs for its feedstock and also from its
proximity to the high-growth markets of Asia. From a
product slate perspective, the refineries have been
designed to produce higher quantities of middle distillate
products like diesel and jet-kero and also ultra-clean fuels
that provide it the potential for higher refining margins.

PETROCHEMICALS

Ethylene scenario

Ethylene is the primary building block and a major
feedstock for polymers. It is a raw material used in the
manufacture of polymers like polyethylene, polyvinyl
chloride and polystyrene, as well as organic chemicals
like ethylene oxide and ethylene glycols. These products
are used in a variety of end markets, such as packaging,
transportation, electronic, textile and construction.

Global ethylene markets continue to recover from a state
of oversupply that developed in 2008-2010, stemming
mainly from the construction of new capacity in the Middle
East and Asia and recessionary global conditions. Global
ethylene production totalled 122 MMT in 2010,
representing an operating rate of 84.9% as compared to
84% in 2009.

refining margins in the region. Economic growth, shortage
of diesel in China, particularly in the second half of the
year and cold winters, were seen to be the key contributors
to the strength seen in diesel cracks. Robust petrochemical
demand also meant that for most part of the year, naphtha
cracks remained strong. Fuel oil crack was the notable
exception and remained in the negative, thus creating a
drag to simple refining margins. This was mainly on
account of abundant supply as US became a major exporter
to key Asian markets.

Key product cracks

US
Singapore
FY-11 FY-10 FY-11 FY-10 FY-11 FY-10
9.2
8.7

8.3
14.8

10.4
15.8

6.8
13.6

Europe

7.9
6.9

6.7
7.9

($/bbl)
Gasoline
Jet-kero

Diesel
Naphtha
FO
Source: Platts

13.8
0.4
(7.1)

7.3
(0.4)
(4.1)

13.2
7.5
(9.3)

5.1
3.7
(7.0)

14.5
(2.0)
(8.9)

9.0
(1.2)
(4.8)

Singapore margins benefit from growth in demand fuelled
by emerging Asian economies. Widening of light-heavy
differentials added to the widening complex margins in
the region. Europe was impacted by lacklustre petroleum
demand and strong Brent price resulting in higher
feedstock prices.

Gross Refining Margins ($/bbl)

FY-11

FY-10

RIL
Regional benchmarks
Singapore (Dubai)
US Gulf Coast (Brent)
US Gulf Coast (WTI)
Rotterdam (Brent)
Source: Reuters

8.4

5.2
1.1
6.4
3.6

6.6

3.5
2.7
3.2
3.1

For the year under review, RIL’s Gross Refining Margin
(GRM) was $ 8.4 /bbl, a premium of $ 3.2 /bbl over the
Singapore complex margin.

Performance review

RIL processed 66.6 million tonnes of crude and achieved
an average utilization of 107%, which is significantly higher
than the average utilization rates for refineries globally.
Exports of refined products were at $29.3 billion. This
accounted for 38.6 million tonnes of product as compared
to 32.8 million tonnes the previous year.

2 2

New Businesses. New Technologies. New Partnerships.

World Ethylene supply/demand - 2010

Global Polyolefins + PVC demand

Production by feedstock

Demand by end use

(in MMT)

2008

2009

Production : 122 MMT

Demand : 122 MMT

Naphtha
Ethane
Propane
Butane
Others

50%
33%
8%
4%
5%

PE
Ethylene Oxide
EDC
EBZ
Others

61%
14%
11%
6%
8%

Capacity additions in the Middle East and the Asian
continent during the recent past have dramatically
changed the supply scenario. The Middle East now
accounts for 18% of global ethylene capacity as compared
to 10% in 2005. Similarly, Asia now contributes to 33% of
the global ethylene capacity as compared to 29% in 2005.
With the capacity that has become operational in the
Middle East, the feedstock mix for cracker has also changed
in favour of gas.

Ethylene capacity additions trend: 2005 - 2010

Ethylene capacity (KT)

2005

2010 2005-2010

USA

European Union

Middle East

Asia

Others

World

Source: CMAI

34,842

25,313

11,803

33,504

10,412

32,706

26,087

25,290

47,630

11,890

115,874 143,603

(% CAGR)

-1%

16%

4 %

Strong economic growth in developing Asia has resulted
in the demand for key petrochemical products reaching
an all-time high. Petrochemical prices also improved on
account of higher demand and cost push from higher
feedstock prices.

Polymers are used in a wide variety of applications like
agriculture, food packaging, healthcare, automotive
components and household appliances. Plastics growth
will continue to be driven by applications where plastics
can deliver a cost advantage and performance
enhancement.

Global commodity plastics consumption in 2010 was
estimated at 196 MMT. Of this, polyethylene (PE) accounts
for 36% of all plastic consumption, followed by
polypropylene (PP) which accounts for 25% and polyvinyl
chloride (PVC) which accounts for 18% of plastic demand.

2010 Growth %
2010 vs.
2009

LDPE
LLDPE
HDPE
PP
PVC
Ethylene
Propylene

17.7
18.4
29.5
43.5
32.4
108.2
66.7

Source: CMAI

17.9
18.9
30.9
45.1
31.6
111.5
69.0

18.7
20.8
32.9
48.5
34.8
120.3
74.6

4.5%
10.1%
6.5%
7.5%
10.1%
7.9%
8.1%

Operating rates in Asia improved on account of higher
demand and planned maintenance shut-down by cracker
operators. The US saw a remarkable improvement in the
operating rates with improved demand and advantageous
feedstock. Competitive pressure on margins has resulted
in the closure of some high-cost assets in Western Europe.

In 2010, PP capacity addition of 4.7 MMT exceeded
incremental growth in demand of 3.4 MMT. Consequently,
operating rates declined to 82.3% vis-à-vis 83.2% in 2009.
In the next four to five years, around 90% of incremental
capacity is expected to come up in the Middle East, Asia
and Africa reflecting the region’s growing prominence in
the sector.

Operating rates for PE declined to 81.9% levels in 2010
from 83.0% in 2009 as incremental capacity of 8.1 MMT
exceeded incremental demand of 4.8 MMT. In 2010, global
demand for PE grew by 7.1% following the economic
revival. While the whole of Asia is leading in demand
growth for PE, new capacity is being built predominantly
in the Middle East and China. Global capacity addition in
2010 was 8.1 MMT, out of which 6.2 MMT is in these two
regions. In 2011, 2.3 MMT of additional capacity is
expected globally and most of it is coming up in Asia and
the Middle East.

The operating rate for PVC increased to 75.9% levels in
2010 from 72.5% in 2009, with capacity addition of 2.5 MMT,
lagging behind the incremental demand of 3.2 MMT. In
2010, global demand for PVC grew by 10.1% following the
strong demand from Asia. In 2011, 4.5 MMT of additional
PVC capacity is expected globally.

The product price recovery continued throughout the last
year, although not at the same pace of feedstock prices.
Product margins remained stable in most parts despite the
high price environment.

Reliance Industries Limited

2 3

Product prices

Price ($/MT)

FY-11

FY-10 % change

Naphtha
PP
HDPE
PVC

Source: Platts

RIL performance

744
1,370
1,236
1,005

602
1,172
1,202
892

24%
17%
3%
13%

Reliance maintained its leadership in the domestic market
with a commodity polymer production share of 47%. RIL’s
polymer production for the year remained unchanged
despite turnaround activities carried out during the year.
RIL’s cracker operating rate was at 90% in FY-11 as
compared to 98% in FY-10. Due to cracker shutdown at
Hazira, Nagothane and Gandhar manufacturing sites, the
production of ethylene decreased by 8% to 1,686 KT while
the production of propylene decreased by 5% to 696 KT
as compared to the corresponding period of the previous
year.

Polymer production in KT

PVC

Total

FY-11

2,496

967

631

4,094

FY-10

2,399

1,068

624

4,091

The domestic demand scenario has been extremely bullish
for PP, reaching 2.6 MMT with an annual growth rate of
18% in FY-11, after a robust 20% growth in FY-10. The
demand for PP in India is expected to grow at a healthy
CAGR of over 10% over the next 4-5 years.

RIL, with its portfolio of PP grades being produced
through multi-line production, is positioned well to capture
the future growth. With an aim to capture new markets
and opportunities, RIL introduced a new random
co-polymer grade SRX100 catering to the fast growing
rigid packaging sector. It has the potential to replace
styrenics and imported high clarity random PP grades.

RIL’s production of PE declined by 9.4% to 967 KT in
FY-11. This was due to cracker shutdown at Nagothane
and planned turnaround at cracker at Gandhar complex.

The domestic LDPE demand reduced by 9% due to
widening LLD- LD price delta and as a result most
processors started using LL rich blends.

In the PE business, market expansion with value-added
grades is an ongoing activity to have an edge over
competition. Some of the grade development activities
during 2010 were:

(cid:122)

Introduced F46003E for HD film sector as alternate
for F46003.

Introduced HP19010 for the packaging film sector.

PVC

PVC consumption in India is estimated to be 1.9 MMT in
FY-11, which represents a growth of 6% over the previous
year. India imported about 650 KT of PVC during FY-11.
Pipes and fittings continued to be the major market
accounting for 72% domestic PVC demand. PVC is a major
product for the infrastructure sector, applied in irrigation
pipes, drinking water supply, sewerage schemes, profiles
for the building industry, wires and cables, etc.

New developments and growth initiatives

Reliance took a lead role in creating new market by
conducting customer meets - “Rishta” throughout India,
to propel growth of PP, PE, and PVC in the field of
engineering, agriculture, infrastructure and packaging
sector.

Geotextile made from PP has immense potential in
construction of roads with improved durability and in river
and sea embankment, to prevent erosion. Reliance worked
in tandem with textile ministry, industry bodies to facilitate
new investment in this “Technical Textile”. Several states
of India have already specified use of PP geotextile in
road and river embankment.

Agriculture is a prime sector for sustainable growth of
India. Non-woven PP has proven to be an ideal solution
in banana plantations. The Company has tied up for new
projects with several agricultural institutes to establish
PP in other fruits and vegetables plantation. Apart from
increased yields, it will help farmers to grow high quality
produce for export business.

The Company worked with leading consumer durable
manufacturers to successfully introduce PP in four-
wheelers, refrigerators and water filters. Reliance is also
driving metal replacement and import substitution
programme with major commercial/two wheeler
manufacturers by introducing niche grade of PP.

2 4

New Businesses. New Technologies. New Partnerships.

Reliance has made another break-through in glass
replacement by using PP bottles in “flavoured milk”
packaging. Light weight, clear, break-resistant PP bottles
will now replace glass bottles. This is a landmark
innovation of Reliance offering high technology, safe and
hygienic product.

Chemicals Business

Global scenario

The global chemical industry has undergone a
transformation since major financial crisis of 2008. The
chemical industry benefitted from industry discipline and
rapid economic recovery, especially in China and India.
Despite unplanned outages, the industry demonstrated a
slow and consistent improvement in production volumes.
The overall margins improved as increase in raw materials
could be passed on to the end-user even as operating
rates remained stable.

An excessive demand pull from the automotive sector
coupled with high natural rubber prices created high margin
environment in the elastomer segment. Shortage of cotton
created superior performance in acrylic fibres and provided
support to acrylonitrile.

Benzene: The global capacity of benzene in 2010 was 56
MMT against production of 40 MMT, resulting in average
operating rate of 72%. Demand for the year was 39.8 MMT.
Globally, capacity has increased by more than 7.5 MMT
in the past 4-5 years resulting in excess capacity.

Butadiene: North-East Asia remains the world’s largest
market with a global market share of 44%, followed by
22%, and 21% by USA and Europe respectively. The
demand grew at 10% on a year-on-year basis.

Polybutadiene Rubber (PBR) is the second largest
synthetic rubber among elastomers and its demand is
estimated at 2.7 MMT. Global demand for synthetic rubber
in coming years is expected to grow at 4.8% annually.

Caustic Soda (CS): The installed capacity of caustic soda
is 85 MMT globally. The global consumption of caustic
soda increased to 63 MMT in FY-11, an increase of about
6% over FY-10 and operating rate of 74%. Around 55% of
the global chlor alkali capacity is now in Asia.

Linear Alkyl Benzene (LAB): Globally, the consumption
of LAB is pegged close to 3 MMTPA against capacity of
3.6 MMTPA. The consumption growth is at 2.5% per
annum and is expected to continue at this rate driven by
Asian demand. With an installed capacity of 182 KT,
Reliance is the world’s fifth largest producer of LAB.

Acrylonitrile: The global capacity of acrylonitrile in 2010
was 5.7 MMT against production of 5.1 MMT, resulting
in average operating rate of 90%. The demand for the year
was 5.08 MMT.

Indian chemical scenario

The Indian chemical industry environment was in line with
the global business environment with the exception of
the elastomer segment due to the excessive demand from
the automobile segment. RIL has leadership position in
aromatic segment constituting benzene, toluene and
xylene.

The demand from downstream sectors covering SBS
rubber, PBR, ABS and styrene butadiene latex recovered
during the year and total demand is pegged at 117 KT.
Domestic demand for PBR is met by RIL besides imports
with consumption estimated at 135 KT. The market
estimates demand for PBR to reach 155 KT by 2013 (a
growth of 5% CAGR).

RIL is the sole producer of acrylonitrile in India with a
capacity of 41 KTA. RIL’s production in entirety is sold in
the domestic market and represents nearly 30% share with
the rest being imported.

RIL’s crackers at Hazira, Nagothane, Dahej and Vadodara
are among the world’s most integrated petrochemical
complexes with upstream refining, E&P and downstream
chemical facilities. RIL is a leading producer of LAB,
benzene and butadiene in India. RIL also produces basic
aromatic building blocks of the highest purity, conforming
to the product grades. These include toluene, mixed-xylene
and ortho-xylene.

For the year, RIL’s benzene production was at 700 KT, a
growth of 4% on a year-on-year basis. Total sales for the
year were 681 KT, out of which 381 KT was exports, 215
KT was domestic and 85 KT was for captive consumption.
Exports of benzene during FY-11 were at 381 KT mainly to
the US, Europe, besides Middle East. Toluene, a major bi-
product of BTX group, registered production volumes of
105 KT.

RIL produced 174 KT of butadiene during the year of
which 61 KT was exported after meeting the entire domestic
requirement and captive consumption.

RIL is the only manufacturer of PBR in India. During the
year, it produced 76 KT, an increase of 4.7 % on a year-on-
year basis, most of which was sold in the domestic market.

RIL has the annual capacity to produce 168 KTA of caustic
soda and 141 KT of chlorine. RIL’s capacity utilization for

Reliance Industries Limited

2 5

the year was at 97% as against average domestic capacity
utilization of 75%.

RIL produces 163 KT of LAB on an annualized basis.
Tightness of normal paraffins resulted in lower utilization
of LAB capacity.

RIL’s entire production of acrylonitrile was sold in the
domestic market. The upswing in demand from derivatives
and restricted global supplies supported prices and
margins.

Opportunities

RIL foresees large opportunities in elastomers and other
diverse chemicals. It has already announced its plans to
set up a facility for manufacturing 100 KT of butyl rubber
in partnership with Sibur. This is a significant step towards
the Company’s commitment to service India’s growing
automotive sector by bringing in complex technologies. A
new facility to produce butene-1 (40 KTA) and Methyl
Tertiary Butyl Ether (144 KTA) using raffinate-1 from the
butadiene plant will come on stream in FY-12.

Polyester Fibre and Filament

Textile and clothing exports by major Asian countries
witnessed year-on-year growth amidst revived demand
from US and European regions. Textile and clothing imports
into US in 2010 increased 15% over 2009 with textile imports
rising by 22% and clothing by 12% year-on-year. Chinese
textile and clothing exports in 2010 witnessed an
impressive growth of 24% over 2009. In case of India,
textile and clothing exports witnessed a growth of 11.5%
in the first half of FY-11 and are likely to remain healthy in
the near future.

There was a renewed investment in downstream textile
industry, especially in the Asian countries. The global
market for spinning machinery and components posted a
strong recovery in 2010, following two years of weak
demand.

The polyester chain delta reached the highest level seen
in the last one decade. In fact, it has sustained the level
above $1,000/MT since the last two quarters of FY-11. For
the full year, chain delta were up 33% over last year.

Another major development during the year was extreme
tightness in global cotton availability. This led to record
high price levels and widely impacted the entire textile
industry. Cotton prices started moving upwards especially
since the second half of FY-11. The commodity has
witnessed extreme tightness in availability, which resulted
in record prices. Cotton prices reached the highest level
in the past 150 years, last seen during the American Civil

War way back in 1860s. Both fundamental and market
forces played a major role in taking cotton prices to
unprecedented levels. During 2010-11 cotton season,
major producers like China, Pakistan and Australia
witnessed rough weather and floods, which impacted the
output.

Towards the end of FY-11, cotton prices were 140% higher
than those for polyester as also higher than the historical
average of 30%. Garment manufacturers/designers are
likely to find ways to use more polyester than cotton in
their fabric usage. On the demand side, the rising cotton
price will continue to drive substitution demand for
polyester. The International Cotton Advisory Committee
(ICAC) forecasts that cotton’s share of the world textile
fibre market could decline to 33% by 2015 as compared to
36.5% in 2009.

Global fibre demand

The global fibre demand in 2010 witnessed an impressive
growth of 4% over 2009 and reached the level of 74 MMT.
The corresponding growth in 2009 was just half at 2%.
China and India accounted for almost all of the incremental
fibre consumption in 2010, with China’s share at 83% and
India at 15%. Polyester continues to feed the textile
industry, accounting for 83% of the increased fibre demand
in 2010. By 2020, global fibre demand is expected to grow
to 99 MMT, at a CAGR of 3%, from the current level of 74
MMT. Polyester usage for textile applications is expected
to grow at over 4% and account for around 80% of the
incremental fibre demand in the next decade. Consequently,
its share in all fibre demand would grow to 55% from the
current 48%.

Last year, Chinese currency appreciated relative to the
Indian rupee which benefitted the Indian textile industry
and its exports became more competitive.

Global polyester filament and staple fibre markets

The global polyester markets were largely stable in the
first half of FY-11. However, during the second half of the
year, higher volatility crept into the markets on account of
various factors. The international PSF prices increased to
$2,047/MT by March 2011, up 52% over FY-11 start.
Similarly, the international POY prices increased to $ 2,040/
MT, by March 2011, up 42% over the beginning of FY-11.

Extreme tightness in global cotton availability, renewed
downstream demand, fundamental tightness in fibre
intermediates supply and lesser polyester capacity addition
in the past few years influenced the polyester markets.

Global PFY capacity is expected to grow at a CAGR of
4.4% from the current 27 MMT to 42 MMT by 2020. Global

2 6

New Businesses. New Technologies. New Partnerships.

PSF capacity is expected to grow at a CAGR of 3.4% from
the current 16 MMT to 23 MMT by 2020.

Product prices

Price ($/MT)
POY
PSF
PET

Source: Platts

Global PET scenario

FY-11
1,683
1,573
1,415

FY-10 % change
31%
1,287
34%
1,177
24%
1,141

Polyester applications in packaging is another segment
which is witnessing promising growth. Global production
in 2010 increased by 8% over 2009 to 15 MMT. Major
increases were witnessed in Asia Pacific, Western Europe
and North America. The 2011 global PET production is
expected to increase by 1 MMT of which Asia Pacific
would account for more than 40%. During the next decade,
global PET capacity is expected to grow at a CAGR of 6%
from 19 MMT in 2010 to 33 MMT by 2020. During the
same period, demand is expected to grow at a CAGR of
7% from 15 MMT in 2010 to 29 MMT by 2020.

PET prices have witnessed significant surge lately,
reaching the levels of $1,895/MT in March 2011, compared
to $1,200/MT in early 2010.

Higher prices of Asian PET as well as feedstock reduced
the import penetration from Asia to North America and
Europe as import economics turned less lucrative.
Consequently, local sourcing in these two regions gained
pace and local operating rates remained high. A high level
of PET prices led to further implementation of light-
weighting of containers in North America.

Global feedstock scenario (PX, PTA, MEG)

Polyester feedstock witnessed a largely stable trend in
the first half of FY-11, but was subjected to volatile
environment in the later part of the year. Again, the
fundamental and market forces played a major role in
creating the volatility. Supply tightened in the second half
of FY-11 in view of increased demand from downstream
polyester segment.

In PX, market balances remained tight amidst unplanned
outages and strong demand from PTA segment. During
the year, PX prices varied in a wider range of $840/MT to
$ 1792/MT, the level last seen in 2008. Also, PX delta over
naphtha breached $800/MT in Q4 FY-11, which is almost
2.5 times the level seen in April 2010. In view of no major

capacity addition in 2010 and expectation of limited
capacity addition in FY-12, PX sentiments are expected to
remain firm in terms of prices, margins and utilization rates.
The PX operating rate is projected to reach as high as
87% in 2011 and 2012.

Product prices

Price ($/MT)

FY-11

FY-10 % change

PTA

MEG

Source: Platts

1,159

1,080

944

995

891

752

17%

21%

26%

Chinese PTA future markets started to witness extreme
volatility in the second half of FY-11, which sent PTA prices
to record levels. Prices during the year moved in a wider
range of $831/MT to $1,527/MT. PTA delta over PX, almost
touched $400/MT in Q4 FY-11. Global PTA capacity is
expected to reach 76 MMT by 2015 from current 49 MMT,
at a CAGR of 9%.

MEG markets closely followed the developments in the
PTA and polyester markets. By March 2011, prices and
margins reached the high levels which were last seen at
the time of outages in the Middle East plants way back in
late 2007 and early 2008. The prices moved in a range of
$690/MT to $1280/MT. MEG delta over ethylene breached
the $450/MT level in Q4 FY-11, compared to below $100/
MT level seen in early 2010.

Domestic scenario

It is expected that the Indian textile and clothing market
has the potential to reach $ 220 billion by 2020 at a CAGR
of 10-11% from the current level of around $ 70 billion.
The domestic market has a potential to grow to $ 140 billion
and exports to $ 80 billion by 2020.

It is believed that India has the potential to increase its
export share in world trade from the current 4.5% to 8%
and reach $ 80 billion level by 2020. This high growth in
exports can become a reality amidst increased shift in
sourcing from developed countries to Asia and India’s
strengths as a suitable alternative to China for global
buyers.

During FY-11, domestic demand for polyester products
increased by 13% over the last year. The momentum was
led by PET with 24% growth followed by PFY with 13%
growth.

Reliance Industries Limited

2 7

Polyester industry demand growth

(Volume in KT)

PFY

PSF

PET

FY-11

2,134

862

416

FY-10 % change

1,891

783

336

13%

10%

24%

PET is the fastest growing product in the polyester product
in India. The current domestic demand is at 0.4 MMT of
which RIL’s share is over 50%. Also, considering the fact
that India’s per capita PET consumption is only 0.29 kg
against the world average of 2 kg/capita, there is an
immense scope to increase PET packaging applications in
India.

Fibre Intermediates industry demand growth

(Volume in KT)

FY-11

FY-10 % change

PTA

MEG

RIL performance

2,009

3,647

1,650

1,964

3,331

1,402

18%

Reliance continues to be the largest polyester player in
the world and maintains leadership position in polyester
and feedstock markets; leveraging on the benefits of chain
economics. The total polyester capacity, including that of
Recron Malaysia, is around 2.4 MMT. As per PCI, RIL is
the world’s 8th largest producer of PTA and MEG and the
5th largest producer of PX.

RIL has a significant advantage of integrated operations
in the polyester business. For FY-11, the overall domestic
market share in polyester (including PET) was 41%. In
terms of product differentiation, the specialty product sale
in PFY and PSF during the year was around 45% and 57%
respectively.

Polyester production in FY-11 was 1,710 KT, up by 3%
over the previous year. PFY production was 742 KT, up
2%, while PSF and PET production increased by 3% and
2% respectively.

Polyester production in KT

PFY

PSF

PET

Total

FY-11

FY-10

742

615

353

724

597

345

1,710

1,666

In case of fibre intermediates, total production (PX, PTA
and MEG) during FY-11 is around 4,548 KT, down
marginally by 1% over last year.

Fibre Intermediate production in KT

PTA

MEG

Total

FY-11

1,840

2,033

675

4,548

FY-10

1,875

2,049

695

4,619

New developments and initiatives

Reliance has increased volumes in specialty products like
flame retardant fibre, tow and filament which provide flame
retardant properties in fabrics. Recron® LP, with unique
low pill properties, was introduced for use in worsted
suiting in poly-wool blends. Other major developments
include Recron®Duratarp for waterproof fabrics, super-
micro staple fibre for spinning ultra-fine yarn counts and
spun-dyed fibre for the Indian armed forces.

Reliance also developed full dull dope dyed yarns mainly
for shirting. Volumes also increased in PBT-based stretch
yarns. During the year, Reliance also developed fully drawn
yarn (FDY) spin finish, which replaced imports and thus
helped reduce cost. RIL is also the preferred supplier for
Recron stretch and super coarse yarns for the denim and
mink blanket segment.

Recron Malaysia

Recron Malaysia is an integrated polyester unit with
downstream textile operations like spun yarn and fabric
production as well. It has a polyester capacity of more
than 500 KTA and fabric production of 600 million meters
per annum. Since its acquisition by RIL, the Company has
undergone significant improvement in terms of operations
and profits.

Petrochemicals expansion plans

On the back of strong petrochemicals and fibres demand
growth, Reliance has embarked on a major capacity
creation initiative in petrochemicals which is set to
significantly enlarge Reliance’s footprints in this business.

At Jamnagar, RIL plans to build:

(cid:122)

1.8 MMTPA of PX capacity.

1.4 MMTPA of ethylene capacity.

40,000 TPA of PBR and 150,000 TPA SBR capacity.

2 8

New Businesses. New Technologies. New Partnerships.

RIL has simultaneously commenced implementation of its
planned expansions across the polyester chain. This is
RIL’s largest capacity expansion in this sector and is aimed
at consolidating its position as the world’s largest
integrated polyester producer.

The global supply constraints, substantial price increase
and uncertain outlook for cotton availability is creating
considerable substitution opportunities for polyester
products like PFY and PSF.

The demand for PET, which is already India’s fastest
growing polymer is also poised for substantial growth
due to continued demand growth in the bottling,
packaging and food & beverages sectors.

RIL has planned its capacity expansion in phases over
the next few years. This includes:

RIL operates the largest, most modern, integrated and
complex refining assets in the world. These are also one
of the lowest cost refining operations in the world. With
its superior sourcing flexibility and product slate, it has
historically outperformed benchmark margins. Strong light-
heavy crude oil spread will support margin improvement
for complex refiners such as RIL. RIL is also one of the
world’s leading producers of ultra-clean fuels and is set to
benefit further from increased demand for such clean fuels.

The wave of global capacity additions in the
petrochemicals (ethylene chain) business over the past
two years has only slightly affected the global margins
and prices as well. However, the strong demand growth
across polymer products in India, China and other
emerging economies has helped new supply getting
absorbed.

2.30 MMTPA of PTA capacity with an option of an
additional 1.15 MMTPA.

The Indian polymer industry is expected to grow at 1.5 to
2 times the GDP growth rate.

(cid:122)

395,000 TPA of PFY and 140,000 TPA of PTY capacity.

540,000 TPA of PET with the option to add 540,000
TPA.

290,000 TPA of PSF capacity.

All the above projects are under various stages of
implementation ranging from technology licensing, basic
engineering and obtaining the necessary regulatory
approvals.

OPPORTUNITIES

Growth in the Indian economy and demand creates
unprecedented opportunities for RIL to invest significantly
in each of its core businesses, including those that leverage
directly from growth in consumerism and increase in
consumption. RIL is in the process of doubling its
petrochemical business by investing across the value
chain and has already commenced project implementation
in the polyester chain.

Reliance is participating in growth in consumer demand
for world-class retailing and digital services by rolling out
its modern retailing business as well as investing
significantly in the broadband wireless business in India.

Large cash balances, robust cash flows and an under
leveraged balance sheet allows it to pursue these and
other organic and inorganic growth opportunities in its
core businesses in a broader, global context. It also
continues its quest for conventional and unconventional
hydrocarbons in order to meet its aspirations of creating a
global scale oil and gas business.

RIL, as the world’s largest producer of polyester, benefits
from the on-going scarcity of cotton. Among its peers,
RIL would continue to earn superior returns on account
of its fully-integrated operations and robust domestic
demand.

The domestic gas sector, despite strong demand growth,
has remained under-developed due to inadequate
investments in gas infrastructure and low gas price
entailing a lack of interest among investors for exploring
and developing gas blocks. RIL’s partnership with BP
combines the skills of both companies and will be focused
on discovering more hydrocarbons in India and
contributing to India’s energy security as well as sourcing
gas globally for the Indian markets.

CHALLENGES, RISKS AND CONCERNS

In the oil & gas business, deep-water exploration and
development operations presents technological
challenges and operating risks. The challenge for RIL is
to ensure optimum level of production, safe and reliable
operations while maintaining the highest level of health,
safety and environment standards.

In as far as its refining and marketing business is
concerned, RIL competes globally with a number of large
energy companies some of who also produce crude oil
and are integrated in their refining operations. Global
sourcing involves inventory, logistics and pricing risks
and this necessitates the need for significant risk mitigation
strategies. The merchant nature of its refining business
means that RIL faces extensive competition in international
markets for the sale of key transportation fuels. RIL

Reliance Industries Limited

2 9

benefits from the quality of its assets, an unprecedented
level of operational integration as well as an experienced
team that has demonstrated its ability to deliver globally
competitive refining margins, cost competitiveness and
consistently high operating rates.

Over the past three years, a large number of new low-cost
ethylene capacities have come on stream in the Middle
East region, which has resulted in margin pressure in the
ethylene chain. A gradual tightening supply-demand
scenario is likely, leading to margin growth for
petrochemical products. Feedstock integration, lower
operating costs and high operating rates are critical for
profitability in the petrochemicals business. RIL has
successfully maintained high operating rates on the back
of strong domestic demand and a balanced portfolio of
liquid and gas-based crackers.

INTERNAL CONTROLS

RIL’s internal control systems are commensurate with the
nature of its business and the size and complexity of its
operations. These systems are designed to ensure that all
the assets of the Company are safeguarded and protected
against any loss and that all the transactions are properly
authorized, recorded and reported.

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
internal audit function team comprises of well-qualified,
experienced professionals who conduct regular audits
across the Company’s operations. 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.

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 by all RIL manufacturing facilities.

MAJOR SUBSIDIARIES

Reliance Retail Limited (RRL)

Reliance Retail continued to expand presence of its value
and specialty formats. During the year, Reliance Retail
opened 90 new stores spanning across ‘value’ and
‘specialty’ segments. In-store initiatives, wider product
choice and value merchandising enabled the business to
achieve robust growth during this period.

Reliance Retail also established partnerships with several
leading international brands aimed at meeting consumer
aspirations. During the year, RRL doubled the presence
of its partner businesses and operated over 160 stores in
various parts of the country. In the fashion and apparel
segment, RRL now operates around 40 stores with leading
brands like Marks & Spencer (19 stores), Diesel (7 stores),
Paul & Shark (4 stores), Ermenegildo Zegna (6 stores) and
Timberland (6 stores).

Its presence in the optics business is in partnership with
Grand Vision. 51 new stores were added during FY-11
taking the total presence to 100 stores across key markets
in the country. The retail chain offers single brand optical
products including Vision Express frames, lenses, contact
lenses, sunglasses, solutions and accessories.

For the very first time, consumers in India got the
opportunity to experience Hamleys, which is considered
to be the world’s most wonderful toy shop. The brand
was launched in India with opening up of 2 stores during
the year.

iStore by Reliance Digital is a one-stop-shop for all Apple
products and services. There are 17 such stores currently
operational.

Reliance Brands also announced exclusive licensing
arrangement with two leading international brands:

(cid:122)

Steve Madden, a leading designer, wholesaler and
retailer of fashion-forward footwear and accessories
for women, men and children.
Quiksilver, a leading outdoor sports lifestyle company
to launch their core brands ‘Quiksilver’ and ‘Roxy’.

Across India, Reliance Retail serves over 2.5 million
customers every week. Its loyalty programme, “Reliance
One”, has the patronage of more than 6.75 million
customers.

Haryana Special Economic Zone (SEZ)

With a vision to develop industrial infrastructure and
support economic growth, Reliance Haryana SEZ Limited
(RHSL), a joint venture between Reliance Ventures Limited
(RVL) (a subsidiary of RIL) and HSIIDC Limited
(a Government of Haryana Company), has received
approval from the Government of Haryana to undertake
flexible development of the Reliance Haryana Project as
an integrated industrial enclave with all the required
facilities such as logistics hub and social infrastructure,
ensuring sustainable development of manufacturing and
service activities with sufficient provision for future

3 0

New Businesses. New Technologies. New Partnerships.

expansion to cater to the demands in the SEZ and non-
SEZ framework.

RHSL is being demerged to undertake development of
model economic township in Jhajjar and has signed a
Shareholder’s Agreement to induct Infrastructure Leasing
& Financial Services Limited (IL & FS) into a new company
to be formed. The shareholding pattern of the new company
will be RVL – 45%, IL & FS – 45% and HSIIDC – 10% to be
given as sweat equity.

RIL – D. E. Shaw joint venture

RIL and the D. E. Shaw group agreed to establish a joint
venture to build a leading financial services business in
India. This JV will incorporate the D. E. Shaw group’s
investment and technology expertise with Reliance’s
operational knowledge and extensive presence across
India to offer a comprehensive array of financial services
to the Indian marketplace. This JV will draw upon the core
competencies of both firms to develop a platform that can
serve the growing needs of Indian companies and
individuals.

RESEARCH & DEVELOPMENT, TECHNOLOGY
DEVELOPMENT AND INNOVATION

In order to sustain and enhance profitable growth, RIL
aspires to become a developer of leading edge
technologies and continues to be an efficient user of
technology.

RIL intends to create world-class physical and intellectual
capabilities, with some of the leading scientists bolstering
its innovation agenda. The Company focuses its attention
to fundamental R&D for sustainability of its business,
advanced technical services, enhancing internal capability
to develop basic engineering packages, and in building
capabilities.

In refining, the focus areas include maximising light olefins
yields from the fluidised catalytic cracker (FCC), improving
propylene recovery in FCC; advanced characterisation of
crude and evaluation of chemicals for desalting; increasing
efficiency and reliability of refinery processes and
enhancing process capabilities in coking technology to
help widen the crude operating window.

In the petrochemicals area, the focus is on providing
technology support to ensure efficient asset utilisation,
development of specialty grades/materials, development
of catalysts /additives for cost reduction, value addition
to by-product streams, and leveraging opportunities at
the chemicals/oil interface.

RIL is involved in some cutting-edge technologies like
fuel cells, carbon fibres, bio-fuels, and gasification of

several types of feedstocks. RIL is the sole industry partner
in the New Millennium Indian Technology Leadership
Initiative (NMITLI) project on indigenous Fuel Cell
Technology Development.

Some major ongoing/completed projects include:

(cid:122)

Selection of cost effective FCC catalysts and additives
for improved conversion and yields.
Propylene yield improvements.
Benzene reduction in refining to promote clean fuel.
Upgrading of bottom barrel through initiatives such
as carbon black production, reduced conversion etc.
De-salter operation improvements.
Computational fluid dynamics for trouble shooting.

(cid:122) Molecular compositional blending models.

(cid:122)

Polypropylene quality control.
Polyolefin inorganic precursor technology
development.
High performance PP homo and copolymers.
Development of high performance additives for
polyolefins.
Development of clarifiers for PP grades.
High melt strength PP by post reactor route.
Superabsorbent polymers.
Bio-filtration process for effluent water treatment.
Catalyst for selective dehydrogenation of C11-C14 n-
paraffins.
Inhouse development and utilization of additives for
cracker coking passivation.
Development of oxygen barrier PET for beer
packaging.
Productivity enhancement through polymer
modification.
New co-catalyst systems for bottle-grade PET
productivity enhancement.
Development of anti-pill polyester, elastic polyester,
low melt polyester, low cost flame retardant polyester,
low antimony/antimony free polyester, and super
micro denier polyester staple fiber.
Development of low cost catalyst, additives and spin
finish for polyester.
Spinning productivity enhancement.
Deep cut operation
Revamption of coker unit and process of pitch.

Reliance Industries Limited

3 1

Creation and protection of intellectual property (IP) for
the Company continues to be an ongoing area of focus.
RIL’s portfolio for national and international patents is
increasing in existing as well as new technology areas. As
a part of our business transformation, RIL is adopting and
implementing best in class business processes with state-
of-the-art applications to enhance technical excellence.

INNOVATION

RIL aspires to be one of the most innovative companies in
the world. The Reliance Innovation Leadership Centre
designs, develops and deploys programmes in realizing
this vision anchored around this agenda.

The Leading Expert Access Programme (LEAP) created a
hat trick of Nobel Laureates’ lectures. Prof Venki
Ramakrishnane delivered the 13th Reliance LEAP lecture
at the National Chemical Laboratory (NCL). In the past,
LEAP speakers have included Nobel Laureates Prof Jean
Marie Lehn and Prof Robert Grubbs. LEAP has been
designed to inspire the RIL family through the life, work
and experience of global innovation leaders.

Sustainable growth of any organisation has one important
element- generation, exploitation and management of its
IP. Last year saw a new energy in this domain through the
structuring and institutionalising of the IP thrust area.
The focus of the IP team is to transform the organisation
from being an IP user to an IP creator. RIL’s patent portfolio
is on the upswing, both in quality and quantity terms
including protection in overseas markets.

CLEAN DEVELOPMENT MECHANISM

RIL 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 Climate Change
(UNFCCC).

In FY-11, RIL undertook validation of two renewable
energy CDM projects harnessing solar and biomass
energy. These projects have received host country
approval from Ministry of Environment and Forest,
Government of India. Biomass based process steam
generation project is at the final stage of registration at
UNFCCC. Also, verification audit of one of the registered
projects at Patalganga Manufacturing Division has been
conducted in FY-11. UNFCCC has approved the changes
proposed by RIL to the small scale methodology for
“Recovery and recyling of materials from solid wastes” to
include PET recyle.

As proactive action to phase out Chlorofluorocarbons
(CFCs), RIL has undertaken replacement of CFC based
chiller units with new energy efficient non-CFC chillers.

HUMAN RESOURCES DEVELOPMENT

RIL’s talent base, as on March 31, 2011, stands at 22,661
with an average employee age of 41 years.

In FY-11, the Business Transformation initiative created
high engagement and excitement amongst the workforce
across all levels at RIL. Some key accomplishments on
people management front are illustrated below:

Learning & Development

In FY-11, RIL enhanced delivery over the last year by
ensuring 1,589,395 man hours of learning activities at its
manufacturing divisions. Going forward, RIL will focus
on building specialist skills and multiple cadres in the
organisation to support its goals and aspirations.
Additionally, several
thousand man-hours of
developmental intervention was undertaken to train the
leadership teams on developing the second-line,
compensation and benefits, executive coaching, rewards
and recognition programmes and interviewing & selection.

Six Sigma deployment in FY-11 was focused on improving
process capability & reliability issues as per the needs of
individual manufacturing sites. A total of 85 projects were
executed leading to financial benefit of Rs. 26 Crore for
the year 2010-11.

As a part of Six Sigma deployment process, 9 Reliance
Certified Black Belts – Wave 1 (RCBB-1) are working
across manufacturing divisions and have, in turn,
developed 305 Six Sigma Green Belts in 2009-11. Total
project execution by this team led by RCBB-1 for a span of
two years is 157 leading to financial benefit of
Rs. 69 Crore.

Currently, 19 BMGI/ASQ certified Black belts are working
in different sites. Based on the effective deployment of
Six Sigma methodology by first wave, new batch for
Reliance Certified Black Belt – Wave 2 (RCBB-2) has been
launched in January, 2011 for which 11 employees have
been selected from manufacturing divisions.

In all 354 Black Belts & Green Belts are associated with Six
Sigma projects at different sites. For the success of various
Six Sigma projects, 1892 team members and supervisory
personnel are providing active support.

As a part of standardization of training & development of
people with validation of their skill level, web based
examination module has been developed for certification

3 2

New Businesses. New Technologies. New Partnerships.

of Six Sigma Green Belts. In FY-11, eight employees have
been certified as Reliance Certified Green Belt (RCGB).
Compensation & Banding
FY-11, saw a significant change in the Company’s
compensation & banding management process. On the
variable pay front, efforts are afoot to move towards an
accountability and responsibility driven variable pay
programmes designed uniquely for various levels.
Talent Acquisition
The belief in its people has been the foundation and corner
stone of RIL’s growth story. It was the youth in their 20s
& 30s who brought RIL to this pedestal over the last 3
decades and going forward the intent is to pass the baton
on to young leaders over the next 2 to 3 years, to further
propel this success story for the next 3 decades. Towards
this end there has been a significant endeavor in
re-enforcing the existing talent base of 22,661.
RIL’s campus hiring programme from the engineering,
finance and management institutes has been far more
robust, with wider coverage to ensure higher caliber as
well diversity.
RIL has launched a specially tailored programme “Reliance
Accelerated Leadership Programme”, in order to hire high
caliber young talent into the Company and build a talent
pipeline for the future.

HR Transformation

RIL is focused on building what would be the best “To
Be” Organisation over the next 18 to 24 months. In order
to achieve this objective, RIL focused on following
initiatives:

(cid:122)

People: Energising and engaging the existing work
force, building a pipeline for the future and creating
an exciting work place.
HR Processes: To ensure that RIL continues to have
the world’s best practice and processes, existing
processes are being reengineered and new processes
are being introduced.
Policies: The focus in FY-11 was to make the policies
employee friendly keeping in view employee specific
needs. The HR policies are being reviewed and
benchmarked with world class organisations.
HR Shared Service Centre: The Centre was
established last year to ensure efficient and effective
delivery of HR services to RIL employees.

AWARDS AND RECOGNITION

Leadership

Shri Mukesh Ambani, Chairman & Managing Director, RIL,
has been nominated to a ‘key advocacy group of
Millennium Development Goals’, whose mandate includes
finding ways to fight socio-economic evils such as
poverty, by the United Nations in 2010. Shri Ambani is the
only Indian to be a part of the MDG Advocacy Group that
comprises eminent international personalities.

Shri Mukesh Ambani has been re-elected as Vice Chairman
of the Business Council for Sustainable Development’s
(WBCSD) Executive Committee for a second consecutive
term in 2010.

The Foundation Board of the World Economic Forum
(WEF) elected Shri Mukesh Ambani on its Board. WEF’s
mission is to improve the state of the world and the elected
board members make valuable contributions to this mission
through their involvement.

Shri Mukesh Ambani received the prestigious ‘Dwight D
Eisenhower Global Leadership Award’ at the Business
Council for International Understanding’s Annual Global
Awards Gala in 2010.

The Asia Society, New York presented the ‘Global Vision
Award’ to Shri Mukesh Ambani, honoring global leaders
who help promote understanding between Asians and
Americans in 2010.

Shri Mukesh Ambani received the NDTV Profit Business
Leadership Award 2010 from the Finance Minister,
Government of India in 2010.

The senior editors of Financial Chronicle unanimously
voted Shri Mukesh Ambani as ‘Businessman of the Year
for 2010’.

Shri PMS Prasad was bestowed with the “Outstanding
Achievement – Natural Gas” Award at the OCEANTEX
2010.

Corporate Rankings and Ratings

RIL continues to be featured, for the sixth consecutive
year, in the Fortune Global 500 list of the World’s Largest
Corporations, ranking for 2010 is as follows:

(cid:122)

Ranked 175 based on Revenues

Ranked 100 based on Profits

RIL is ranked 68th in 2010, in the Financial Times’ FT
Global 500 list of the world’s largest companies (up from
previous year’s 75th rank).

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

RIL has been ranked at 20th position, on the basis of sales,
in the ICIS Top 100 Chemicals Companies list. RIL is the

Reliance Industries Limited

3 3

only Indian company in the world’s Top 20 chemical
companies in the global ranking. RIL has also been named
as the 8th biggest gainer in the list in terms of operating
profits.

RIL is the only Indian company to get a perfect score from
CLSA Asia-Pacific Markets (CLSA) in a list of Asia’s best
companies in terms of CSR and termed the Company as
the region’s ‘Corporate Good Guy’. In its ‘Ethical Asia’
2010 report, CLSA has named RIL among its top picks for
providing very good data and going well beyond required
disclosure.

RIL is rated as the 33rd ‘Most Innovative Company in the
World’ in a survey conducted by the US financial
publication- Business Week in collaboration with the
Boston Consulting Group (BCG). Further, in 2010, BCG
has ranked RIL second amongst the world’s 10 biggest,
‘Sustainable Value Creators’, companies for creating the
most shareholder value for the period 2000 to 2009.

Project Management

E&P Division received the Petrotech-2010 Special
Technical Award in the ‘Project Management’ category
for completion of their Krishna Godavari Gas project ahead
of schedule.

Health, Safety & Environment

(cid:122)

Allahabad Manufacturing Division received a rating
of 90% for its environmental initiatives from British
Safety Council in 2010.

Barabanki Manufacturing Division received ‘5 Star
Rating on BSC Environment’ from British Safety
Council in 2010.

Dahej Manufacturing Division received ‘Greentech
Environment Excellence Award 2010 – Gold’ for its
excellence in environment practices from Greentech
Foundation in 2010.

Dahej Manufacturing Division received the ‘National
Award for the Prevention of Pollution in
Petrochemicals Sector’ for its excellence in
environment practices from the Ministry of
Environment & Forests, Government of India, in 2010.

Dahej Manufacturing Division received “Our Cup of
Joy India’s Best Practices on Water Confederation of
Indian Industry (CII) October 2010" Award for the
Best practice of water conservation of “Utilizing
Cooling Tower Blow Down water for Irrigation
Purpose”.

(cid:122)

Dahej Manufacturing Division’s Quality Control

Department (QCD) (Sangchhatvam) and GCU (Uday)
plant won the “Par Excellent” award and RGSS
(Suraksha) won the “Distinguished” award at the
“24th Annual National Convention on Quality
Concepts” (NCQC – 2010).

Dahej Manufacturing Division’s QCD
(Sangchhatvam), GCU (Uday) and RGSS (Suraksha)
won Gold Award and EOEG (Drishti) won Silver Award
at the “21st Gujarat State Level Annual Convention
on Quality Concepts – 2010”.

Hazira Manufacturing Division received the DuPont
Safety Award for outstanding initiatives towards
workplace safety enhancements and accident
prevention in 2010, thus making RIL the first Indian /
Asian company to win this award.

Hazira Manufacturing Division received the British
Safety Council’s (BSC), Five Star Environment Award
for its “beyond compliance” initiatives, best
environmental practices, innovations and resource
conservation efforts in 2010.

Hazira Manufacturing Division won the UK Energy
Institute’s Safety Award for ‘Road Safety TRUST
Programme’ in 2010, making RIL the first Indian / Asian
company to win this award.

Hazira Manufacturing Division won the FGI Award
for Excellence in Environmental Pollution Abatement
and Preservation in 2010.

Hazira Manufacturing Division won CII’s Best
Environmental Practice Award under “Most
Innovative Project” and “Innovative Project” category
in January 2011.

Hoshiarpur Manufacturing Division, for four
consecutive years in a row won the ‘State Safety
Award’ from Punjab Industrial Safety Council & Chief
Inspector of Factories, Punjab in 2011.

Jamnagar Manufacturing Division Domestic Tariff
Area (DTA) Refinery received the ‘Golden Peacock
Award for Occupational Health & Safety’ for pace
setting performance in OH and Safety in 2010.

Jamnagar Manufacturing Division DTA Refinery has
been conferred with the Institute of Engineers’ ‘Safety
Innovation Award’ for the year 2010, organized by
the Safety and Quality Forum of the Institute of
Engineers.

Jamnagar Manufacturing Division DTA Refinery
received ‘Safety Innovation Award’ from Safety &
Quality Forum of Institute of Engineers (India).

(cid:122)

3 4

New Businesses. New Technologies. New Partnerships.

Jamnagar Manufacturing Division DTA Refinery won
the “Greentech Platinum Award (2010)” Safety
Category, in Petroleum Refinery Sector for its
outstanding Achievement in Safety Management.

(cid:122)

Jamnagar Manufacturing Division received the ‘I.C.C.
Award for Excellence in Energy Management’ for its
energy performance from the Indian Chemical
Council in 2010.

(cid:122)

Jamnagar Manufacturing Division has been
granted by The National Accreditation Board for
Laboratories (NABL), Ministry of Science &
Technology; Government of India, “NABL
accreditation” based on ISO 15189: 2007 for
the DAOH & FWC Medical Laboratory.

Jamnagar Manufacturing Division Special Economic
Zone (SEZ) Refinery received ‘5 Star Award for Health
& Safety’ from British Safety Council for sustained
performance in Health & Safety in 2010.

Jamnagar Manufacturing Division SEZ Refinery has
won the prestigious ‘Greentech Environment
Excellence Award 2010’ in Gold Category in Petroleum
Refinery Sector for its best practices in Environment
Management.

Jamnagar Manufacturing Division SEZ Refinery has
been selected as the winner of the “10th Annual
Greentech Safety Award 2011”, in Platinum Category
in the Petroleum Refinery Sector.

Nagothane Manufacturing Division received the
“Vana Shree Award” from the State Government of
Maharashtra in 2010.

Nagpur Manufacturing Division received the ‘Sword
of Honour’ from the British Safety Council in 2010.

Vadodara Manufacturing Division received the CII
Environmental Best Practice Award in 2011.

Energy and Water Conservation / Efficiency

(cid:122)

Hazira Manufacturing Division won the ‘Excellent
Energy Efficient Unit Award for FY 2009-10’ from CII
in 2010.

Dahej Manufacturing Division bagged the ‘Excellent
Energy Efficient Unit Award 2010’ for its energy
conservation efforts from CII in 2010.

Dahej Manufacturing Division received the ‘National
Energy Conservation Award 2010’ for its energy
conservation initiatives from the Ministry of Power,
Government of India.

Jamnagar Manufacturing Division received the
‘National Award for Excellence in Energy
Management’ for its energy conservation techniques
from CII in 2010.

Technology, Patents, R&D and Innovation

(cid:122)

Nagpur Manufacturing Division received the
‘Innovation Quest 2010 Trophy’ instituted by the
Indian Institution of Industrial Engineering.
E&P’s KG-D6 won the ‘Innovation for India Awards
2010’ instituted by the Marico Innovation Foundation
for their combined synthesis of advanced
technologies, extreme engineering, innovative
execution, yielding unprecedented results and impact
on India’s energy security.
Hazira Manufacturing Division won the “Innovative
Project” from the CII in 2010.
Hazira Manufacturing Division won the FGI
Federation of Gujarat Industries Award for technology
development in 2010.
Hazira Manufacturing Division won the Indian
Chemical Council Award for chemical plant design
and engineering in 2010.
Reliance Technology Group (RTG) received
“Certificate of Merit” from the Federation of Gujarat
Industries and “ICC award for excellence in chemical
plant design and engineering” in 2010.

Retail

(cid:122)

Reliance Footprint received the Retailer of the Year
Award in the Non Apparel and Footwear category at
Asia Retail Congress 2010.
Reliance TimeOut received the Retailer of the Year
Award in the Leisure Category at Asia Retail Congress
2010.
Vision Express was bestowed the ‘Award 2010’ for its
contribution by the Netherlands India Chamber of
Commerce and Trade in 2010.
Reliance Trends received the ‘Retail Marketing
Campaign of the Year Award’ at the Asia Retail
Congress 2010.
Reliance Trends received the ‘Impactful Retail Design
and Visual Merchandising of the Year Award’ at
the Asia Retail Congress 2010.

Sustainability

(cid:122)

Jamnagar Manufacturing Division won the ‘Golden
Peacock Global Award for Sustainability for the year
2010’.

Reliance Industries Limited

3 5

Report on Corporate Social Responsibility

RIL embraces responsibility for impact of its operations
and actions on all stakeholders including society and
community at large. Management’s commitment, work
ethics and business processes at RIL encourages all its
employees and other participants to ensure a positive
impact and its commitment towards corporate social
responsibility.

The Company’s commitment to excellence in Health and
Safety is embedded in the Company’s core values. The
Company has a stringent policy of ‘safety of persons
overrides all production targets’, which drives all
employees to continuously break new ground in safety
management for the benefit of people, property,
environment and the communities where we operate. The
Company is aware of the environmental impacts of its
operations and it continually strives to reduce the impacts.

RIL respects human rights, values its employees, and
invests in innovative technologies and solutions for
sustainable energy flow and economic growth. The
Company has supported innumerable social and
community initiatives across India touching the lives of
millions of people positively by supporting environmental
and health-care projects and social, cultural and
educational programmes. Besides focusing primarily on
the welfare of economically and socially deprived sections
of society, RIL also aims at developing techno-
economically viable and environment-friendly products
and services for the benefit of millions of its consumers,
while at the same time ensuring the highest standards of
safety and environment protection in our operations.

Health, Safety & Environment

Health

RIL focuses on achieving excellence in occupational and
personal health of its employees across locations. The
Company has state-of-the-art Occupational Health Centres
(OHC) at its manufacturing divisions and major offices.
These OHCs are equipped with state-of-the-art diagnostic
and therapeutic equipment and are manned by qualified
occupational health specialists.

RIL’s medical and occupational health departments are
also in the forefront to prevent lifestyle diseases such as
heart problems, hypertension, diabetes and communicable
diseases such as malaria, tuberculosis and HIV / AIDS
through a series of regular health awareness sessions,
daily health tips and personal counseling. Health

promotional activities are also extended to employees’
family members staying at Company townships.

RIL has full-fledged modern hospitals at its major
townships at Jamnagar, Vadodara, Nagothane and
Patalganga, which cater to curative health services to
employees and their family members. In FY 2010-11, new
facilities were added to the hospitals including a state-of-
the-art, special burns treatment unit, at the Dhirubhai
Ambani Hospital in Jamnagar.

Started eight years ago as a pilot project at few
manufacturing divisions, Change Agents for Safety, Health
and workplace Environment (CASHe) has grown and
become a movement encompassing the entire enterprise
with thousands of improvement projects. The programme
has been instrumental in creating a culture of implementing
health, safety and environment improving projects at
workplace on a priority basis. This programme has also
helped the Company improve its performance on the
occupational health and safety front.

Safety

In FY 2010-11, RIL’s HSE Management System (HSE-MS)
has been further strengthened with new initiatives. The
HSE-MS have been institutionalised to establish
Company-wide safety management objectives, guiding
principles and processes.

RIL continues to pursue world class operational
excellence through the HSE Management System initiative,
in strategic partnership with M/s DuPont Sustainable
Solutions. In FY 2010-11, RIL implemented the operational
discipline framework of 11 characteristics to embed
operational discipline in the organization in 6 major
manufacturing sites. RIL’s manufacturing divisions
undertook a rigorous self-assessment of operational
discipline and they are in the process of implementing
improvement measures with total employee involvement.

In order to ingrain the safety culture, a set of
‘Life Protection Rules’ (LPR) have been introduced in
FY 2010-11. The LPR focuses on 10 high risk activities.
Complying with the LPR is mandatory for all RIL
employees, and for the employees of contractors. LPR
complements our ‘Safety Best Practices’ and ‘Safety
Procedures’ to be followed at all locations.

Process Safety Management (PSM) has been further
strengthened in FY 2010-11, through strategic initiatives
for sustenance. One of the focuses was to conduct self
assurance studies for the safety of the community through

3 6

New Businesses. New Technologies. New Partnerships.

Process Hazard Analysis (PHA) and Quantitative Risk
Assessment (QRA) in plants prioritized on risk basis.
Implementation of recommendations emerging from such
studies has resulted in evolving inherent safer measures
in operations of such plants.

RIL’s Central HSE audit programme is a critical component
of the HSE governance process, which has been
specifically designed to ensure that stakeholder
expectations, HSE Policy and HSE Management Standards
are being effectively implemented across the Group. The
HSE Audit Protocol is based on the HSE Management
Standards and systems and performance management
principles. The process provides assurance to the Group
and the Board that the HSE Management Standards are
being implemented and it identifies best practices that
can be shared across RIL Group.

The Company has further reinforced its ties with global
institutions such as the Centre for Chemical Process Safety,
the American Institute of Chemical Engineers, American
Chemical Council and the British Safety Council, which
gives access to industry best practices.

RIL’s HSE systems are aligned with recognised
management systems and global best practices. Most
manufacturing divisions have been certified to ISO
14001:2004 certification of Environmental Management
Systems and OHSAS 18001:2007 certification of Safety
Management Systems.

At the E&P operations, RIL has adopted the HSE
Management System and uses Safety Case approach for
the onshore and offshore facilities to demonstrate high
levels of safety integrated into the design and operations
through several risk and hazard assessment studies. RIL
has established emergency management systems and is
checking and improving the efficacy of the same through
periodic mock drills at various facilities of the entire KG-
D6 assets, drilling and CBM operations.

RIL’s KG-D6 asset comprising of Onshore Terminal,
Supply Bases and Off-shore facilities were certified
with ISO-9001:2008; ISO 14001:2004 and OHSAS
18001:2007 by M/s DNV in April 2010. The Company has
also labeled the same as ‘Integrated Management System’
for the KG-D6 Asset. Additionally, M/s DNV successfully
completed the first ‘Surveillance Audit’ of RIL’s KG-D6
asset in August 2010.

were conducted to ensure that all statutory requirements
are met in the operations.

RIL’s stress on enhancing HSE performance through
launching of HSE management Systems of international
Standards continued with further launching of 18 HSE
standards and 41 associated HSE procedures, which will
be implemented across the Company’s E&P operations.
RIL has a well planned safety training programme for
employees and also contract employees.

Environment

In its pursuit of excellence in environmental management
towards sustainable business development, Reliance
continues to be committed to develop and implement
Environmental Management System (EMS) throughout
the Group to measure, control and reduce the
environmental impact. In this context, during FY 2010-11,
Gadimoga and Jamnagar SEZ manufacturing divisions
have instituted ISO-14001:2004. With this, the international
environmental accreditation based management system
covers Company’s all manufacturing divisions. In majority
of cases this has been integrated with ISO: 9001:2008
Quality Management System and ISO-18001:2007 OSHA
management systems.

RIL has also referred Global Reporting Initiative’s
guidelines 2006 for developing its environment
performance indicators. This concerted effort is aimed at
developing environmental initiatives to address to RIL’s
long term target of becoming water positive, carbon neutral
and maximizing possible recycling and reuse of wastes. A
management framework with defined structures, roles and
responsibilities, group standards, audits and training has
been further strengthened.

RIL is fully compliant with various environmental
protection and health and safety laws and regulations. In
its constant endeavour to be fully compliant with all
regulatory standards, RIL has instituted a compliance
management system, which ensures that the Company is
in full compliance to all applicable legal requirements. Prior
to the implementation of new projects the potential
environmental impacts are assessed. The environment
impact assessment and risk analysis are performed for all
new and major expansion projects and necessary
measures are incorporated to mitigate adverse
environmental impacts at the planning stage of project.

For Coal Bed Methane and Onshore Drilling operations
without any Lost Time Incidents, both internal and
regulatory audits (through Oil Industry Safety Directorate)

Further, in FY 2010-11, RIL has updated its group
environmental standards and second party audit
protocols. In an important initiative, in FY 2010-11, the

Reliance Industries Limited

3 7

Company developed ‘RIL- Environmental Management
Process’ with the help of international agencies. The
processes include work streams, role and responsibility
matrix and performance indicators to monitor the progress.
RIL strongly believes that these actions will be the Change
Agent for further reducing the Company’s environmental
risks significantly.

In RIL’s improvement efforts, audits play an important role.
The Company has developed three-tier audit systems.
Trained and qualified internal auditors perform internal or
first party environmental audits of our environment
management system at regular intervals. In FY 2010-11,
RIL has developed an environment second party audit
protocol for the RIL- Environmental Standards. The high
level environmental audit by the external agency or third
party is performed for all manufacturing divisions which
include annual audit by Gujarat Pollution Control Board
(GPCB) recognized auditors in the State of Gujarat and
ISO-14001:2004 audits by the accreditation agencies at
regular frequency.

In FY 2010-11, a five star environment audit by British
Safety Council, UK was performed at Hazira, Barabanki
and Allahabad manufacturing divisions. These
manufacturing divisions have achieved more than 90%
score. With this, RIL’s nine manufacturing divisions have
been audited for its environmental management by the
British Safety Council (BSC) and the remaining
manufacturing divisions are planned to be audited in
FY 2011 -12. In line with the world class organization, RIL
reports its externally verified environmental performance
based on Global Reporting Initiative guidelines. We
achieved a trend of continuous reduction in our emissions
and discharges and increase in effluent and waste
recycling.

To be in harmony with nature, RIL continues its efforts
such as mangrove plantation and maintenance in the
coastal areas with the help of international agencies, tree
plantation, maintenance of green belts and gardens in and
around our manufacturing units, vermi-compost of waste
and its use as manure, recycling of treated water in cooling
water system and in horticulture activities, etc. Further,
RIL is partnering with the Ministry of Environment and
Forests, Government of India and Gujarat Ecological
Commission to set up the National Centre for Marine
Biodiversity (NCMB) – India’s first Centre of Excellence
for the study of India’s coastal biodiversity, at Jamnagar.
This is the first such initiative in India where the

Government and a private sector stakeholder will be
partnering to safeguard the biodiversity of coastal areas.

RIL’s continued efforts on reducing environment footprint
are aptly reflected in its E&P business, at domestic and
also international operations. RIL completed its planned
exploration operations with all necessary regulatory
approvals and permits in its domestic and international
blocks in Australia, Timor Leste, Yemen, Oman, Kurdistan
and Columbia. RIL completed its drilling campaign in Timor
Leste without any environmental incidents. Apart from
internal tracking of environmental compliance through an
in-house portal, external agencies like M/s.
PricewaterhouseCoopers also monitored RIL’s regulatory
compliance through its Compliance Monitoring Tools. No
adverse notices / reports were received from the statutory
bodies during FY 2010-11.

Site operations in KG-D6 received certification under
ISO-14001:2004 under an Integrated Management System
from M/s. DNV. Wastes, effluents and emissions, at RIL’s
E&P operations, are in full compliance to the norms and
standards. The treated waste water from sanitary effluents
is being reused in the green belt.

With an objective of imparting awareness on oil spills
control at sea during emergencies, RIL conducted oil spill
response mock exercises in the East Coast with the
involvement of all major operators and Indian Coast Guard
in September 2010. To inculcate the spirit of cleaner
beaches along the coast, RIL joined Indian Coast Guard
and State Pollution Control Board’s initiative of beach
cleaning at Kakinada in October 2010.

RIL regularly conducts environmental monitoring around
its facilities at both onshore and offshore and submits the
monitoring reports to the regulatory bodies without any
adverse comments. RIL engaged the services of national
environmental laboratories like National Environmental
Engineering Research Institute (NEERI) and National
Institute of Oceanography (NIO) to conduct the onshore
and offshore environmental monitoring studies. RIL’s
production facilities in and around Gadimoga (KG-D6
onshore terminal site) are well developed with green belt.
In FY 2010-11, the Company planted more than 10,000
saplings, 43,000 shrub plants, 37000 sq.mts of lawn and
15,000 sq. mts. of ground covers apart from about 20,000
seasonal plants. Orchards of coconut, guava,
pomegranate, jack fruit and mangoes are cultivated in the
operational site. Some native animals like ducks, rabbits,

3 8

New Businesses. New Technologies. New Partnerships.

love birds and fouls are also brought in the green belt to
enhance biodiversity.

RIL has undertaken a new initiative for conversion of
organic waste to vermi compost. This includes processing
of food and paper wastes from its operations at Gadimoga.
RIL continues to support the maintenance of
mangrove plantation undertaken with the help of
M/s. MS Swaminathan Foundation in an area of 10
Hectares at Chollangipeta which is near to the KG-D6
facility. Further, the Company is undertaking a study of
biodiversity enhancement in this region with
M/s. MS Swaminathan Foundation through project grants.

Social responsibility and community development

RIL’s contribution 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), relief and assistance in the
event of a natural disaster, and miscellaneous activities
such as contribution to other social development
organisations etc. RIL’s CSR teams across its
manufacturing divisions interact with the neighbouring
community on regular basis.

Education

A network of nine schools caters to 13,251 students spread
across geographies in India. CSR teams from RIL’s
manufacturing divisions and E&P operations work
ardently to support the educational requirements of the
community and schools in the neighbouring region
benefiting thousands of students from the underprivileged
section of the society.

RIL plays a pivotal role in supporting Government’s
initiative towards education of girl child. In Gujarat, under
the project “Kanya Kelvani”, RIL’s Dahej Manufacturing
Division has extended financial assistance towards
education of girl child in the state.

RIL has created a platform for computer learning in many
villages. Its manufacturing divisions have provided
computers to primary and secondary schools under the
Company’s computer literacy initiative.

RIL continues to provide support to school run by Lions
Club of Naroda Charitable Trust. The school renders
quality education in English medium to children of
labourers working in GIDC, Naroda area, who are
economically and socially backward. Jamnagar
Manufacturing Division constructed a school building for

village Kana Chikari of Lalpur taluka in Gujarat. Hoshiarpur
Manufacturing Division has adopted village Mangrowal-
Nari primary school. Annually free uniforms, books, shoes
and school bags are given to students and also free
electricity is provided to the school.

RIL’s CSR teams continue to provide uniforms, books etc,
to students of neighbouring villages of manufacturing
divisions and E&P operations. Further, continuous
monitoring is being done in local schools for improving
the performance of students. Regular counseling sessions
are also being arranged with experts in personality
development and psychology for motivating the children
to achieve better results.

To encourage school children from neighbouring villages
in their learning process, Nagothane Manufacturing
Division and the MADER Foundation provided school
uniforms to the tribal and underprivileged students. Eleven
schools were selected for this initiative, out of which seven
Zilla Parishad schools are located on a hilltop near the
manufacturing division. Further, meritorious students were
felicitated with an objective of encouraging them for higher
studies.

RIL’s Project Jagruti, the project to tackle dyslexia in Surat,
is setting the pace for the community’s response to the
social dogma of the mentally underprivileged children.
More than 8,800 hours have been spent by 35 trained
teachers and more than 1,000 hours by RIL volunteers to
uplift and bring the dyslexic students from the
underprivileged segment into the main stream. RIL
employee’s spouses are supporting this activity and many
teaching aids have been developed. NIOS registration has
been initiated for Academic Year (“AY”) 2011-12.

Partnership with similar associations across the country
and UNESCO / BBC has been initiated to spread awareness
and benefit the students with latest training aids.
Awareness stall was put up that attracted thousands at
the national book fair organized by Surat Municipal
Corporation (SMC). Membership of Maharashtra Dyslexia
Association and International Dyslexia Association has
been taken to make the project more focused with proven
scientific practices and to get availability of resourceful
experts, sourcing global knowledge / resources and best
practices / models in the LD/Dyslexia space. Focus is on
early identification of learning disability in child and
procuring various screening tests for the same.

Reliance Dhirubhai Ambani Protsaham Scheme

The Scheme, launched in AY 2008-09, continues to support

Reliance Industries Limited

3 9

poor meritorious students. Recipient students of Reliance
Dhirubhai Ambani Protsaham Scheme got admissions in
junior colleges of their choice. With admissions of AY
2010-11, the total strength of students receiving support
under the scheme has gone up to 656. The first batch of
the Protsaham students passed out the intermediate
examination held in March 2010 with flying colours and
from AY 2010-11 onwards, RIL is providing financial aid to
the toppers for pursuing their higher studies in engineering
and medical streams.

Mumbai Indians Education for All Initiative

Mumbai Indians took on the mandate of education as a
primary social issue. It launched its Education for All
Initiative during the Indian Premier League (IPL) season
in 2010 to create a movement to support efforts to provide
quality education to all children. This initiative was the
brainchild of Mrs. Nita Ambani, a passionate advocate for
the cause of education. Through this effort, Mumbai
Indians supported five NGOs carting out outstanding work
in the field of education - Akanksha, Nanhi Kali, Pratham,
Teach for India and Ummeed. As part of this initiative,
Mumbai Indians helped create awareness for the cause of
education and the work of these five organizations through
official Mumbai Indian videos, TV commercials that ran
through the duration of the IPL, sale of Mumbai Indians
Education for All wristbands as part of the merchandizing
and awareness creation through its radio partners and in-
stadium announcements during games.

In addition, Mumbai Indians also invited 700 children from
all the NGOs to see each of the Mumbai Indians home
games. The Mumbai Indians team joined Mrs. Ambani at
the presentation ceremonies and worked with the media
to ensure adequate coverage of the work of such groups.
Mumbai Indians also organized a briefing for the cricket
team to interact with children and staff of all the NGOs.

Through the sale of the wristbands and additional
support, Mumbai Indians was able to gift Rs. 11 lacs to
each of the groups at the conclusion of IPL 3. This
collaboration continued through the year with an
invitation to the groups to send children to attend the
Mumbai Indians games at the Champions League matches
in South Africa.

Community Health Care

RIL has developed Community Medical Centres near most
of its manufacturing divisions to provide comprehensive
health services covering preventive, promotive and

curative health care services to the community from
neighbouring villages.

The manufacturing divisions conduct regular health check-
ups for children in schools of their respective
neighbouring regions. Doctors advise children and their
parents on various health care issues and personal hygiene.
Medical camps were organized by all sites benefitting
patients from nearby villages and tribal areas. All patients
are given medicines free of cost. As required, all sites
have provided ambulance support to roadside accident
victims to shift them to hospitals / nursing homes.
Patalganga site has conducted a series of health awareness
programs in local schools and nearby small scale
industries.

Drishti

A unique joint initiative of RIL and National Association
of Blind, Project Drishti has undertaken over 9,000 free
corneal graft surgeries for the visually challenged Indians
from the underprivileged segment of the society. It is the
largest corneal grafting surgery project enabled by a single
corporate entity in India.

The initiative to combat TB, HIV / AIDS is a unique public-
private partnership program between the Government,
NGOs, several agencies and RIL. It extends from creating
awareness to providing care, support and treatment
including free of cost treatment to those who cannot afford
the same.

Hazira Manufacturing Division’s DOTS HIV / AIDS Centre
is one of the largest Anti-Retroviral Treatment Centre (ART
Centre) in the country. A 22 bedded hospital for HIV /
AIDS patients has been commissioned recently.
Manufacturing divisions at Jamnagar and Patalganga too
have ART Centre facilities. The initiative was expanded to
other manufacturing divisions; activities are largely in the
advocacy and awareness area. A special initiative of
awareness campaign on ‘Prevention of HIV/AIDS’
targeted at drivers and cleaners of all product transport
vehicles has been undertaken at various sites. Awareness
lectures on prevention are conducted and condoms have
been distributed.

Dahej Manufacturing Division commenced Integrated
Counseling and Testing Centre (ICTC) for HIV/AIDS at
Dahej in partnership with Gujarat State AIDS Control
Society (GSACS) in FY 2010-11. This initiative is aimed at
addressing the health of the increasing number of migrant
workers in the region resulting from the industrial growth

4 0

New Businesses. New Technologies. New Partnerships.

planned under Dahej SEZ and PCPIR Zone. Objective of
the initiative is to create necessary awareness amongst
workers to prevent HIV/AIDS.

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

The Primary Health Centre (PHC) at Dahej, Bharuch
district, adopted by RIL under the National Rural Health
Mission Programme caters to the community health needs
of 23 surrounding villages.

In 2004, RIL established the PHC at Gadimoga. The PHC
has six member medical staff with all the amenities such as
two-bed nursing room. Medicines are offered free of cost.
Further, RIL runs two sub-centres of the PHC at
Bhairavapalem and Laxmipathipuram. RIL is also
constructing a new 30-bed PHC and the existing PHC will
be shifted to the new building.

Dhirubhai Ambani Hospital at Lodhivali, Maharashtra
continues to play a significant role in improving the quality
of life in surrounding communities. It extends prompt and
specialized services to the Mumbai-Pune highway
accident victims. Trauma patients are provided free
lifesaving treatment. Besides taking care of hospitalization
requirements, the hospital provides poor patients and
senior citizens subsidized treatment - both in the outpatient
and in-patient departments. ART clinic, a public-private-
partnership initiative between RIL, CII and NACO, offers
free of cost treatment to HIV/AIDs patients. In association
with the Lions Club, the hospital conducts cataract surgery
camps annually.

A well-equipped community medical centre with four
observation bed facility at Jamnagar continues to offer
free-of-cost, round the clock with comprehensive health
services. Manufacturing divisions offer free medical
services including free medicines to the neighboring
villages.

In tribal villages surrounding Nagothane Manufacturing
Division, villagers are deprived of medical facilities in the
region because of absence of proper approach road to the

villages as they are located on hilltops. The manufacturing
division realizes the health problems faced by the tribal’s
and it took a major step towards providing free OPD (out
patient department) treatment on weekly basis to the tribal
people staying at hill tops. Moreover, the manufacturing
division developed the road and even made it motorable
up to village Gangawane. Every week a doctor with medical
team and medicines visits tribal hamlet and provides OPD
services to tribals.

Hazira Manufacturing Division along with an NGO have
launched an orthopedic hospital with ultra-modern
facilities and one rehabilitation centre. Both facilities have
become operational in March 2011. Hospital building was
inaugurated by the Chief Minister of the State of Gujarat.

RIL’s 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 doctor accompanied by a
nurse, visits neighbouring villages on a scheduled basis
all through the week.

RIL has established an Early Intervention and
Rehabilitation Center for supporting the mentally
challenged children living in Tallarevu Mandal and Yanam
Union Territory. This center is being run with the technical
support of NGO Uma Mano Vikasa Kendram, Kakinada.
At present, children from the region having different
disabilities have already been enrolled.

Safety initiatives for community

Road Safety System is most cost effective and easy to
use tool for improving public safety and thus offering a
life-line to humanity. Hazira Manufacturing Division has
institutionalised road safety training and has reached out
to over 158,000 tanker / truck drivers who visit the plant
for pick-up and dropping feedstock / finished goods. The
training focuses on safe operation of fleet vehicles by
eliminating unsafe driver and driving behaviors and
reinforcing aspects of save lives, reduce injuries, prevent
crashes, control driver performance, minimize risk and
liability. A centre dedicated for training truck drivers for
transportation of hazardous goods has been established
for round-the-clock training. No driver is allowed inside
complex without training.

To provide emergency and trauma care to victims of
highway accidents, Hazira Manufacturing Division has

Reliance Industries Limited

4 1

tied up with an NGO, ‘Life Line Foundation’ and adopted
110 kms stretch on the State Highway in Gujarat starting
from Sachin to Bharuch and the state highway via Hazira
Olpad Hansot Ankleshwar.

Further, for the first time in State of Gujarat, the local RTO
has been supported by installing a multimedia based
training facility to render safety awareness to all license
aspirants.

Environment initiatives for the community

A zero garbage campaign has been launched in Reliance
Townships to propagate the concept of solid waste (dry
and wet waste) management. This is a part of cleanliness
drive for a disease-free environment at employees’
township, the surrounding villages of Hazira
Manufacturing Division and also Surat city in Gujarat.

To reduce plastic litter, as part of its commitment towards
responsible care and product stewardship intervention,
Hazira Manufacturing Division in partnership with an NGO
is working for social and economical security of woman
rag-pickers. Under the programme, direct sale of waste
PET bottles to processing units is facilitated, thus
eliminating channel of waste merchants and promoting,
woman rag pickers’ group. This program is being extended
to over 350 slums of Surat and also various other RIL
locations in Gujarat and other states.

Further, RIL in partnership with Gujarat Engineering
Research Institute (GERI) and R & B Department
constructed a 900 meter road stretch using 5% plastic
waste. RIL’s CSR team used unattended / non-recyclable
plastic waste in construction of tar road which reduced
construction cost as well improved road life and reduced
road maintenance cost. Unattended and non recyclable
plastic waste sourced from rag pickers’ cooperative group
also dead stock seized by Surat Municpal Corporate was
used. Awareness and sensitization programs about the
technology and its benefit to community have been
undertaken to benefit the population of neighbouring
villages of Hazira.

RIL’s manufacturing divisions continue its green energy
drive by making the rural folks aware of alternate energy,
efficient energy usage. An NGO called GAIA Initiative
from Japan is working with Hazira Manufacturing Division
for this project. Some of the projects that have been
initiated are: installation and commissioning of solar-micro-
wind combined power system at HIV DOT Centre, Mora
village, Surat, installation and commissioning of Solar-

Micro-wind combined system (2 kW) at J H Ambani
School, Surat, installation and commissioning of solar AC
(1.7 TR) at Orphanage, HIV DOT Centre, Mora Village and
training on “house-hold energy conservation / efficiency
measures” conducted for all village in the vicinity of the
manufacturing division.

To bring out the innovative spirit of young students of
Surat / RIL employees and also to acknowledge / reward
the ideas that can contribute to improving the
environment, Hazira Manufacturing Division announced
a ‘Green Idea Award Scheme’ in 2010.

RIL organised programmes of industrial, academic,
historical and environmental importance such as Chemical
Industry-2020 Vision and Action at Ankleshwar; Global
Bird Watchers Conference at Jamnagar; Van Mahotsav-
2010 at Palitana; International Conference on Global
Warming at Gujarat Vidyapeeth; Conference on Synergy
with Energy; Conference on Gujarat’s Maritime History
by Darshak Itihas Nidhi. Further, tree plantation activities
were organaised at many locations. Awareness of cleaner,
greener environment and global warming issues are made
at schools and also to villages from the surrounding region.

Community Development

Reliance Rural Development Trust

In FY 2010-11, Reliance Rural Development Trust (RRDT)
undertook 797 works in 760 beneficiary villages of 125
talukas under 24 districts of Gujarat to create rural
infrastructure under the Gokul Gram Yojana (GGY) of the
Government of Gujarat. Total 608 facilities got completed
during the year. The completed facilities include 478
Anganwadi buildings, 58 Cement Concrete Roads, 61
underground RCC sumps and 05 Check Dams and 06 other
works with the total expenditure of Rs. 24 Crore in FY
2010-11. The Check Dams completed in FY 2010-11, will
have total water storage capacity of 8.7 mcft and would
cater to about 1,065 Hectares of rural land. RRDT, since its
inception in 2001 till March 31, 2011, across the State of
Gujarat, has completed 7,306 various rural infrastructure
facilities with an expenditure of more than Rs. 270 crore.

Further, RIL’s manufacturing divisions supply free potable
water to the neighbouring villages especially during water
shortage periods. They also contribute to the development
of various village infrastructure such as developing, bus
sheds, roads, street lights, installation of solar street lights
in number of villages, free supply of blankets etc.

4 2

New Businesses. New Technologies. New Partnerships.

Livelihood Support Programmes

RIL has always been at the forefront in implementing
initiatives especially for the welfare of rural women and
youth of surrounding villages through various self-help
groups (SHG).

Continuing with the services and keeping up the tradition,
Hazira, Vadodra, Nagothane, Gadimoga and many other
manufacturing divisions offer training programmes
through various SHGs help the rural women and youth to
be “self sustaining” and generating income for themselves
and supporting their families. It is a matter of great pride
that many of the beneficiaries of these training programmes
are earning a decent amount of livelihood and are
financially supporting their families. For the womenfolk,
courses are offered for dress making and designing,
beauty culture and health care, hospital attendant (Helpers
for Hospital and Nursing Homes); while for the youth of
the surrounding communities, courses such as plumbing
and hand pump repairing training, computer hardware
repair, motor vehicle driving, mobile repairing and doormat
making etc. Further, training in horticulture cultivation and
fruit saplings are also given to the farmers of the adjoining
villages.

Jamnagar Manufacturing Division continues to serve the
villages around the refinery complex, the city of Jamnagar
and the community at large. RIL’s local community welfare
cell constantly remains in close touch with the villagers.

Numerous infrastructure developments in villages
adjoining and neighbouring the Jamangar Manufacturing
Division such as development of cement concrete roads,
drainage, crematorium and also supply of water
construction of Haja Dada temple at a neighbouring village,
Sikka were undertaken in FY 2010-11. Fodder for cows of
neighbouring villages was supplied by RIL’s CSR team
working at Jamnagar.

In FY 2010-11, RIL initiated several village infrastructure
development projects such as construction and
renovation of community halls, burial ground and school
compound wall in Gadimoga Panchayat. RIL promoted
Organic Aqua culture with the technical guidance of
National Center for Sustainable Aqua culture (a sister
concern of MPEDA).

Around RIL’s on-land operations in the Coal Bed Methane
project areas in Madhya Pradesh, the Company continues
to give medical support to the villagers through a mobile
medical van.

To help farmers buy the correct and high yield variety of
paddy seeds, a ‘Kisan Mela’ was organized by MADER
Foundation. Several varieties of paddy seeds, and
fertilizers were made available to farmers. On the purchase
of first bag of paddy seeds, financial assistance was given
by MADER Trust as subsidy. Farmers are also encouraged
to cultivate vegetables in the winter season making them
available host of vegetable seeds and a financial subsidy
from MADER Foundation on the purchases.

Improving quality of agricultural produce

RIL conducted several programmes and participated in
farming related exhibitions to propagate advanced
technologies in the production, handling, storage and
distribution of agricultural products. Use of Leno bags
made out of polypropylene (PP) was extensively promoted
amongst farmers. Leno bags are immensely beneficial to
farmers as it reduces handling losses in fruits and vegetable
products.

RIL demonstrated use of advanced farming techniques
by use of plastic in enhancing producitivity, reducing
losses and increase in earnings and distributed
promotional materials. Filling, storing and transportation
trials were conducted with PP leno bags to help remove
apprehensions of users in adopting advanced packaging
solutions.

RIL also had a targeted solution for the banana growing
farmers, those who are involved in export of their produce,
in the States of Gujarat and Tamil Nadu. Usage of PP non-
woven material as skirting bags for bananas helps in
growing spotless fruits of uniform size. This helps in
10-15% increased yield and in uniform ripening across the
bunch, while allowing air, water, pesticide to pass through
while giving protection from insects and pests attack. RIL
has been working with the farmers and with Krishi Vigyan
Kendra to create awareness of the concept in order to
improve the quality of the produce across the country.

Reuse of well site water to the crops is demonstrated
through irrigation in an experimental farm for enhanced
utility of resources available for the upliftment of quality
of life of the living communities around manufacturing
divisions and E&P operations.

Skill Up-gradation for Plumbers

RIL’s Polymer team conducted training programmes and
workshops for plumbers on advanced technology in
plumbing systems with PPR pipes. Advanced techniques

Reliance Industries Limited

4 3

of welding to prevent leakage and ensuring hygienic and
safe drinking water to the users were taught at these events.
Brochures, training manuals and installation guides were
made available in various vernacular languages. Plumbing
kits were also distributed to plumbers selected by our
customers. Installation of PPR plumbing system takes less
time for installation and reduces physical labour thus
leading to higher earnings for the plumbers. Through these
programmes local plumbers are kept abreast with advanced
and modern technologies in plumbing.

Heritage Conservation

Development of Dwarka and other places of religious and
spiritual significance is a passion for RIL. The construction
and beautification at Temple Parisar in Dwarka has been
completed.

The newly developed facility at the temple square is ready
for dedication to devotees of Lord Dwarkadheesh. We are
now poised to take up construction of Sudama Setu, a
pedestal bridge connecting two banks of river Gomati.

In FY 2010-11, resurfacing and strengthening of ‘Dhirubhai
Ambani Marg, a by-pass road leading to the temple from
the national highway was completed. Refurbishing of the
temple premises such as construction of ceiling in
adjoining area of the main temple premises, reinstallation
of CCTV based camera security system etc. was completed
in FY 2010-11.

RIL continues to support social, educational, cultural and
spiritual activities of Shardapeeth of Jagadguru
Shankaracharyaji, Dwarka. Also, financial assistance was
extended to Shree Somnath Trust for construction of Kokila
Dhirubhai Ambani Sagar Darshan Dham (a place of
accommodation for pilgrimas and furniture was provided
to Dhirajdham at Nathdwara Temple. RIL also extended
support to publication of ‘Shraddha Setu’-a coffee table
book on Gujarat’s pilgrimage centres.

Supporting Indian Culture

During the traditional Navratri garba festival, gifts to girls
were distributed individually by RIL. Several institutions
organizing Navratri festival at Jamnagar, Chorwad,
Ahmedabad, Gandhinagar, Mumbai, etc. were given
financial assistance. RIL sponsored a state level navratri
festival under the banner of Gujarat Industries Navratri
Festival Society. Unlike other commercial Navratri venues,
the entry here is free for all; modern and classical garba
competitions as well as traditional street-garbas are

performed and the whole venue is developed for nine days
in such a way that one gets a total feel of Gujarat’s culture,
cuisines and crafts at one place.

Financial assistance and support was given to festivals
such as Durga puja, Utkal dival, Shivratri, 150 years of
Swami Vivekanand, Sardar Patel’s birth anniversary, and
other cultural/voluntary organisations in FY 2010-11.

RIL in partnership with a regional magazine sponsored a
convention of Gujarati Poetry and Music during the year.
This was one more contribution to strengthen and
consolidate RIL’s association with Gujarati community at
large. Also, the activities of the Vishwa Gujarati Samaj;
Swarnim Gujarat celebrations etc. were supported and
promoted during the year.

Promoting Sports and Sportsmen

RIL continues to promote and support sports and
sportsmen. The Company extended support to Reliance
Inter-Cricket Tournament, G1 Cricket Tournament, affiliated
MPCA’s All India Cricket Tournament, Central Board of
Cricket, etc. Financial support was given to International
Tournament for upcoming chess-players; Gujarat State
Chess Association for conducting under-09 chess
tournament; as well as to one upcoming chess-player.
Support was also given to Gujarat State Football
Association and Jamnagar District Football Association
for players’ coaching fees, uniform and their daily
allowances as well as to the publication of a special
handbook on the Football World Cup. Third Gujarat Major
Ranking Badminton Tournament at Ahmedabad, Hockey
League Night Tournament at Rajkot, Tennis Tournament
of Government Employees at Ahmedabad, Table Tennis
Championship Tournament at Vadodara, Kabaddi
Tournament of Maharashtra Krida Mandal, Shuttle
Tournament at Kochi and Sports Carnival at Bhopal were
some of the major sports-events that were supported
during the year.

Mumbai Indians (MI), the Mumbai-based IPL franchise
owned by IndiaWin Sports Pvt. Ltd, a subsidiary company
of Reliance Industries Limited is led by Sachin Tendulkar.
MI registered the most number of wins in Season III of the
Indian Premier League, and reached the finals. MI has
been the most followed team in the IPL and enjoys a huge
global fan base.

IMG Reliance Private Limited (IMGR), the equal joint
venture between IMG and RIL, forged partnerships with

4 4

New Businesses. New Technologies. New Partnerships.

the All India Football Federation (AIFF) and Basketball
Federation of India (BFI). Through its partnership with
AIFF and BFI, IMGR is set to revolutionize the Indian
Sports scenario. IMGR will work with the Federations to
improve the standard of game in India by participating
from grassroots to professional levels.

IMGR has initiated “IMG Reliance Scholarships for India”
to identify and train young athletes in India. The first
batch of “IMG Reliance Scholars”, is undergoing training
at IMG Academies, at Bradenton, Florida. IMGR also
operates India’s premier lifestyle event, “Lakme Fashion
Week”; “Aircel Chennai Open”, India’s only ATP level
Tennis event and “Avantha Masters”, the professional
golf tournament on European and Asian Tour.

Acknowledging and supporting talent

‘Real Heroes’, an initiative of CNN-IBN in partnership with
RIL honors the silent warriors of change. In its fourth
year, ‘Real Heroes’, acknowledges the extraordinary
contribution from ordinary citizens in the fields ranging
from ‘Women’s Welfare’ to ‘Social Welfare’, from ‘Youth’
to ‘Education and Children’ and from ‘Health and
Disability’ to ‘Sports’. The Real Heroes are felicitated at a
grand event with a trophy and cash prize of Rs. 5 lakh
each.

RIL partnered with the Stanford University and Stanford
Graduate School of Business for creation of the ‘Reliance-
Dhirubhai Ambani Undergraduate Scholarship Fund’ as
well as ‘Reliance Dhirubhai India Education Fund’ with
the aim of identifying and supporting promising Indian
students with financial need for higher education. The
‘Reliance Dhirubhai Fellows’ receive full financial support
for education of Stanford.

RIL instituted ‘NASI-Reliance Industries Platinum
Jubilee Awards’ covering both ‘Physical and Biological
Sciences’, in partnership with National Academy of
Sciences, India (NASI). Backed by an endowment from
RIL, NASI recognizes scientists for their significant
contribution for application-oriented innovations and
research.

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.

organised, where more than 500 schools in East Godavari
district participated.

Supporting Institutions

Dahej Manufacturing Division extended financial
assistance to ‘Swajaldhara Scheme” organized by Water
and Sanitation Management Organization (WASMO),
Government of Gujarat, for developing drinking water
facility by laying pipeline in the neighbouring villages.

RIL also extended financial support to students and
educational institutions such as: Centre for Environmental
Planning and Technology (CEPT), Consumer Education
and Research Council (CERC), Pt. Deendayal Petroleum
University, MP Shah Medical College, Jamnagar,
Gramshree Trust, Patan especially engaged in vocational
training of needy women. Premdhara Shishu Vihar,
Gandhinagar was given a special financial support for the
slum-children school run by it. In another such unique
assistance, financial assistance was given to Shri
Vidyamrut Varshini, Valsad, a 100 year old school known
for its Sanskrit teaching. The School had even impressed
Mahatma Gandhi and Kasturba when they visited it.

Similarly, RIL has extended financial assistance to
development of Dhirubhai Ambani Vanijya Bhavan - the
new premise of Jamnagar Chamber of Commerce and
Industry and for repairing and refurbishing Sardar
Vallabhbhai Patel National Memorial at Shahibaug,
Ahmedabad.

Reliance Foundation

Reliance Foundation, envisaged to become one of the
foremost professional philanthropic organizations in the
world, was incorporated in 2010. The Foundation focuses
on five core pillars: education, health, rural development,
urban renewal, and promotion and protection of India’s
art and culture. The Foundation embodies corporate
systems and processes driven organization operating on
a not for profit basis, with the overall aim to create and
support meaningful and innovative activities that will
address some of India’s most pressing development
challenges.

To commemorate the 78th Birth Anniversary of RIL’s
Founder Chairman Dhirubhai Ambani, in December 2010,
district level quiz competition (RDHA Quiz 2010) was

In October 2010, Reliance Foundation launched Mission
BIJ, its flagship program focusing on supporting
smallholder farmers. BIJ, which stands for ‘Bharat India

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4 5

Jodo’ (BIJ) aims to bridge the gap between rural and urban
areas. Its overall goal is to make farming a profession of
first choice by empowering smallholder farmers. Starting
in over 6 geographic sites spread across four states,
Mission BIJ will provide support to smallholder farmers
along the supply chain through input support, technical
assistance, post harvest and marketing support. Initially
envisaged as an agricultural focused program, Mission
BIJ will eventually work with farmers and communities on
a comprehensive rural development strategy, including
education, health, and infrastructure and community
development.

Reliance Foundation has also launched an initiative to set
up a world-class multidisciplinary university in
Maharashtra as well as revamping and creating a world
class tertiary care hospital in Mumbai. Reliance Foundation
is also planning interventions in the space of education
and health services that aim to address the service delivery
challenges on the ground in rural India.

Dhirubhai Ambani Foundation

Dhirubhai Ambani Foundation (DAF) has Education and
Public Healthcare as its focus areas. The Foundation’s
“Dhirubhai Ambani Undergraduate Scholarship Scheme”
has been motivating students excelling at the +2 level and
assisting them to pursue higher education. Similarly, the
Foundation’s “Dhirubhai Ambani SSC Merit Reward
Scheme” has been recognizing and rewarding the Board
toppers at Std X exams. The Schemes also makes special
provision to reach out to the Physically Challenged
Category and the girl child.

On a district-wise basis for the State Education Boards
and state-wise basis for CBSE, the Schemes are in
implementation in several states, viz. Maharashtra, Goa,
Gujarat and the Union territories of Daman, Diu and Dadra
Nagar Haveli.

In the rest of the states and union territories, the scheme
rewards the physically challenged category of the
State Boards and the top five students per state per year
are given the Scholarships and the Rewards. With a
sustained follow-up, DAF has now succeeded in taking
its Schemes for the physically challenged to 19 other states
which have State Education Boards. This has benefited
additional 232 physically challenged students, 129
rewardees and 103 scholars. Till date the Schemes have
benefited 8,153 students, 1,389 of whom are physically
challenged.

Sir Hurkisondas Nurrotumdas Hospital and Research
Centre

Sir Hurkisondas Nurrotumdas Hospital and Research
Centre (HNHRC) is a renowned institution in South
Mumbai, having rendered quality healthcare to the society
for more than 85 years. It is a 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. Strengthening
and renovation work was carried out in the HNHRC
building. Intensive care units and operation theatres have
been upgraded. HNHRC has periodically conducted
programmes like free health camps and public education
sessions on prevention of diseases. Free health checkups
and screening programmes for senior citizens and
physically challenged were also organized. HNHRC has
started B. Sc. Nursing course which will help to generate
more graduates in the field of nursing. The construction
of new hospital has started and is in full swing.

Sir Hurkisondas Nurrotumdas Medical Research Society

Sir Hurkisondas Nurrotumdas Medical Research Society
(HNMRS), a non-profit research organisation based in
Mumbai was established 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.
Upgrading of scientific knowledge and infrastructure is
done incrementally in HNMRS. It is poised for further
paradigm upgradation of its capabilities in the area of
Applied Research.

Dhirubhai Ambani International School

Dhirubhai Ambani International School recognizes the
imperative of imparting an educational experience that is

4 6

New Businesses. New Technologies. New Partnerships.

world-class in every respect and which prepares children
for global citizenship. The School’s vision is to provide a
learning environment that encourages children to bring
out the best in themselves and which supports their all-
round development, through discovering the joy of
learning, awakening and illuminating their intellect in multi-
dimensional ways and instilling abiding values in
themselves.

Building on the School’s excellent track record all these
years, across all its three streams - the ICSE, the IGCSE
and the IB Diploma - our students have achieved
impressive results in the examinations held in 2010. As
against the average score of 36 (out of the maximum
possible score of 45) achieved by the first five batches of
our IB students, the sixth batch, the Class of 2010, attained
an average score of 37, compared to the world average of
29.8 points. And 2 of them earned the perfect score of 45
points, a score that was only achieved by 86 children
worldwide in the previous year. For the fourth year in a
row, our ICSE children have achieved excellent results -
earning an average score of 94.06%, with 45% of them
scoring 95% and above and the topper scoring 96.80%.
85.3% of all IGCSE grades achieved were A* and A grades,
as compared to the world average of 35% and the Indian
average of 34%. Some of our children have topped the
world in several subjects while some have been national
toppers. For the fifth year in a row, one of our children
received the ‘Best IGCSE Student in India’ award from
the Cambridge International Examinations.

The School’s performance on the university placement
front continues to be excellent. The IB Class of 2011 has
earned admission offers from the world’s top universities.
4 students were accepted at Oxbridge, 15 at University
College London, 7 at Imperial, 9 at King’s College, 1 at
University of Edinburgh, 3 at University of Bristol, 8 at
University of Manchester, 19 at Warwick and 6 at London
School of Economics, among others. Amongst the Ivy
League and other leading universities, Yale has accepted
1 student, University of Chicago 5, Princeton 1, Columbia

4, U-Penn 3, Stanford 3, Michigan 2, Cornell 3,
Northwestern 1, UC Berkeley 9, Carnegie Mellon 11,
University of California LA 19, Brown 1 and New York
University 19. Other reputable universities that have
offered admission to our students include McGill, British
Columbia, University of Toronto and University of Hong
Kong. Students who applied to universities in other
countries and those who plan to study in India are expected
to do equally well when their admissions are finalized.

The School’s students are involved in several service
activities. They work with NGOs like Advitya, Akanksha,
Muktangan and Pratham. Through the ‘Across the Road’
neighbourhood service initiative and education and health
programmes, our students reach out to community
members in Bandra-Kurla Complex, Mumbai. The
Empowering Villages Everywhere (EVE) initiative provides
solar lamps to villages where electricity is scarce. Our
students are enthusiastically continuing their work to
construct houses and roads in Hassachipatti (a village
near Matheran) and also provide educational
opportunities for children there; through a fete they raised
substantial funds to support this initiative.

In 2010, our School hosted the Round Square South Asia
and the Gulf Region Junior Regional Conference at the
School, DAIS Study and Activity Centre at Matheran, with
participation of 20 Schools from Bangladesh, Jordan,
Sultanate of Oman, UAE and India. The theme of this
conference was water conservation. The School celebrated
its Annual Day on the theme ‘Chirstmast’. It consisted of
a musical ‘The Gift’, showcasing the School’s talent and
reinforcing the spirit of giving and the Chirstmas Carnival,
which was organized by our students to raise funds
towards community service. The Annual DAIMUN
(Dhirubhai Ambani International School Model United
Nations) Conference 2010 deliberated on the menace of
corruption and how it could be addressed with the urgency
it deserves. ‘Paigaam’ Peace Conference, which fosters a
harmonious relationship with people from across the
border, was another highlight of the year at the School.

Reliance Industries Limited

4 7

Report on Corporate Governance

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

1. Statement on Company’s philosophy on Corporate

Governance

Good governance practices stem from the culture and
mindset of the organisation. The governance is about out-
performing sustainable organisations. These are the
organisations that succeed consistently in the market
place, gain a greater share of market opportunities and
sustainably drive their top and bottom lines. 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 pedestal blocks for future growth and ensuring
that we achieve our ambitions in a prudent and sustainable
manner.

Corporate Governance is a set of systems and practices
to ensure that the affairs of the company are being
managed in a way which ensures accountability,
transparency, fairness in all its transactions in the widest
sense and meet its stakeholders aspirations and societal
expectations. At Reliance 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.

The demands of corporate governance require
professionals to raise their competency and capability
levels to meet the expectations in managing the enterprise
and its resources effectively with the highest standards
of ethics. It has thus become crucial to foster and sustain
a culture that integrates all components of good
governance by carefully balancing the complex inter-
relationship among the board of directors, audit committee,

accounting team, auditors and senior management - the
CEO and CFO. At Reliance, 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.

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.

Over the years governance processes and systems have
been strengthened at Reliance and the corporate
governance has always been an integral part of the way
the business is done. This emanates from our strong belief
that sound governance is integral to creating value on an
overall basis. Since our Initial Public Offer (IPO) 33 years
back, we have grown revenues and net profit by a
Compounded Annual Growth Rate (CAGR) of 28.24% and
30.73% respectively. The financial markets have endorsed
this sterling performance as is reflected in a 25.32% CAGR
growth in our market capitalisation 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 epitomises 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:

Independent Board with defined role & responsibilities:
A majority of the Board, 7 out of 13, are independent
directors. The Audit Committee, Remuneration Committee
and Corporate Governance and Stakeholders’ Interface
Committee comprise only independent directors. The
Company has defined guidelines and established

4 8

New Businesses. New Technologies. New Partnerships.

framework 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.

The Board critically evaluates strategic direction of the
Company, management policies and their effectiveness.
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.

Audits and internal checks and balances: M/s. Deloitte
Haskins & Sells, Chartered Accountants, M/s. Chaturvedi
& Shah, Chartered Accountants, one of India’s leading
audit firms and a member of the Nexia’s global network of
independent accounting and consulting firms and M/s.
Rajendra & Co., Chartered Accountants, one of India’s
oldest audit firms, the three leading audit firms, audit the
accounts of the Company. The Company has a
Management Audit Cell that reviews internal controls and
operating systems & procedures. A dedicated Legal
Compliance 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 programme
in conformity with best international standards, supported
by a robust online system that covers all manufacturing
units of the Company as well as its subsidiary companies.
The gamut of this system includes statutes such as,
industrial and labour laws, taxation laws and health, safety
and environment regulations.

At the heart of our processes is the wide use of technology
that ensures robustness and integrity of financial reporting,
internal controls, allow optimal use and protection of
assets, facilitate accurate and timely compilation of
financial statements and management reports and ensure
compliance with statutory laws, regulations and company
policies.

Best Corporate Governance practices: Reliance believes
in maintaining the highest standards of Corporate
Governance and it’s the Company’s constant endeavour

to adopt the best Corporate 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 include
the following:

(cid:122)

The Company has a designated Lead Independent
Director with a defined role.

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

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
whole-time practice. The quarterly audit reports are
placed before the Board and the annual audit report
placed before the Board is included in the Annual
Report.

Corporate Social Responsibility (CSR): Social welfare
and community development is at the core of the
Reliance’s CSR philosophy and this continues to be a top
priority. The CSR teams at the Company’s manufacturing
divisions interact with the neighbouring community on
regular basis. The Company’s contributions to the
community are in the 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. The Company also supports
and partners with several NGOs in community
development and health initiatives.

Reporting on triple bottom-line performance: The
Company commenced annual reporting on its triple-
bottom-line performance from the Financial Year 2004-05.
All its sustainability reports are externally assured and

Reliance Industries Limited

4 9

Global Reporting Initiative (GRI) checked. The maiden
report received ‘in-accordance’ status from GRI and all
subsequent reports are ‘G3 Checked A+’ application level
reports. From Financial Year 2006-07, in addition to
referring GRI G3 sustainability reporting guidelines, the
Company refers to the American Petroleum Institute / the
International Petroleum Industry Environmental
Conservation Association guidelines and the United
Nations Global Compact principles. The Company has also
aligned its sustainability activities with the focus areas of
the World Business Council for Sustainable Development.

Shareholders communications: The Board recognises the
importance of two-way communication with shareholders
and 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 or 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 over 80 cities across
India, details of which are available on the Company’s
website www.ril.com. The Company ensures that queries,
complaints and suggestions are responded in a timely and
consistent manner. A shareholder referencer is provided
with this report which is quite comprehensive and
informative.

Employees Stock Option Scheme: One of the widest
programmes of its kind in the Indian corporate sector, the
Company’s Employees’ Stock Option Programme was
introduced in 2007. The programme has ensured complete
alignment of individual interests with the growth
imperatives of the Company.

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.

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. The composition of the Board and
category of Directors is as follows:

Category
Promoter Director

Executive Directors

Name of Directors
Mukesh D. Ambani
Chairman and
Managing Director

Nikhil R. Meswani
Hital R. Meswani
P.M.S. Prasad
Pawan Kumar Kapil1

Non-Executive Non-
Independent Directors

Ramniklal H. Ambani
Hardev Singh Kohli2

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

1w.e.f. May 16, 2010
2upto May 16, 2010

5 0

New Businesses. New Technologies. New Partnerships.

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
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:122)

To preside over all meetings of Independent Directors.

To ensure that there is adequate and timely flow of
information to Independent Directors.

To liaise between the Chairman and Managing
Director, the Management and the Independent
Directors.

To advise on the necessity of retention or otherwise
of consultants who report directly to the Board or the
Independent Directors.

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.

To perform such other duties as may be delegated to
the Lead Independent Director by the Board/
Independent Directors.

Directors’ Profile

A brief resume of all the Directors, nature of their expertise
in specific functional areas and names of companies in
which they hold directorships, memberships/
chairmanships of Board Committees and their

shareholding in the Company are provided below:

Shri Mukesh D. Ambani is a Chemical Engineer from the
Institute of Chemical Technology, Mumbai (earlier the
University Department of Chemical Technology, the
University of Bombay). He has pursued MBA from
Stanford University, USA.

He joined Reliance in 1981 and 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.

He led the creation of the world’s largest grassroots
petroleum refinery at Jamnagar, with a current capacity of
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 which has
transformed “Jamnagar” as the ‘Refining Hub of the
World’.

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 create value and be beneficial to a large section of
India’s society.

He is also steering Reliance’s development of infrastructure
facilities and implementation of a pan-India organised retail
network spanning multiple formats and supply chain
infrastructure.

His achievements have been acknowledged at national
and international levels. Recently, some of the awards and
recognition bestowed on him are:

(cid:122)

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

Awarded the Indian Merchant’s Chamber (IMC)
‘Juran Quality Medal for 2009’, in 2010.

Reliance Industries Limited

5 1

(cid:122)

Awarded The Dwight D. Eisenhower Global
Leadership Award by The Business Council for
International Understanding (BCIU) in 2010.

Honoured at the Awards Dinner by Asia Society in
2010.

He is Promoter of the Company and holds 36,15,846 shares
of the Company in his name as on March 31, 2011.

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

Ranked the 5th best performing CEO in the world by
the Harvard Business Review in its ranking of the top
50 global CEOs.

He joined Reliance at an early age in 1986 and since July
01, 1988 he is a Whole-time Director designated as
Executive Director on the Board of the Company.

He 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 (NCAER), New Delhi.

He is a Member of Millennium Development Goals (MDG)
Advocacy Group constituted by United Nations (UN), a
Member of The Foundation Board of World Economic
Forum and Vice Chairman of World Business Council for
Sustainable Development (WBCSD).

Further, he is a member of the Indo-US CEOs Forum, the
International Advisory Board of Citigroup, the
International Advisory Board of the National Board of
Kuwait, the Advisory Council for the Graduate School of
Business, Stanford University, the International Advisory
Board of Brookings, Member of the Business Council,
McKinsey Advisory Council and the Asia Business
Council and Advisory Board of D.E. Shaw India Advisory
Services Private Limited.

He is the Chairman, Board of Governors of the Indian
Institute of Management, Bangalore, Chairman of Pandit
Deendayal Petroleum University, Gandhinagar. He is also
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).

He has been appointed as a Director by the Board of
Directors of the Bank of America Corporation on its Board.
He is the first non-American to occupy such a position.

He is the Chairman of Reliance Retail Limited, a Director of
Reliance Infotel Broadband Services Limited, Reliance
Foundation, IMG Reliance Private Limited and Reliance
Europe Limited.

At RIL, he is the Chairman of the Finance Committee and
a Member of the Employees Stock Compensation
Committee.

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 the University Institute of Chemical Technology
(UICT), Mumbai.

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

He holds 2,78,374 shares of the Company in his name as
on March 31, 2011.

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

He joined Reliance Industries Limited in 1990. He is on the
Board of the Company as Whole-time Director designated

5 2

New Businesses. New Technologies. New Partnerships.

as Executive Director since August 4, 1995, with overall
responsibility of the Petroleum Business and all
manufacturing and project activities of the group.

He 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 and
is a member of the Audit Committee of Reliance Commercial
Dealers Limited. He is a member of the Finance Committee,
the Shareholders’/Investors’ Grievance Committee and
Health, Safety and Environment Committee of the
Company.

He 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.

He also serves on the Board of Overseers at the University
of Pennsylvania.

He holds 2,11,886 shares of the Company in his name as
on March 31, 2011.

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

He has been with the Company for about 30 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 10 years since inception in the Exploration
and Production business, made the largest gas discovery
in 2002 and has since commissioned India’s first and one
of the world’s largest deepwater gas production facilities.

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

He 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 Exploration & Production
business.

He is a Director of Reliance Commercial Dealers Limited
and several private limited companies. He is member of
the Audit Committee of Reliance Commercial Dealers
Limited.

He holds 36,666 shares of the Company in his name as on
March 31, 2011.

Shri Pawan Kumar Kapil has been appointed as a Whole-
time Director designated as Executive Director of the
Company with effect from May 16, 2010.

He holds a Bachelor’s degree in Chemical Engineering and
has a rich experience of more than four decades in the
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.

He started his career in 1966 with the 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 a
strong penchant for analytical work and high technology
skills, he was chosen to head the Central Technical Services
Department at the Corporate Office of Indian Oil
Corporation. Here he did extensive work in ‘expansion of
the existing refineries’, ‘energy optimisation’,
‘debottlenecking 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 the Ministry of
Petroleum, the Government of India. He has traveled
extensively and has been to USA, Russia, the Middle East,
Europe and the Far East in connection with refinery design,
technology selection, crude sourcing, etc. Having served
for 28 years in Indian Oil Corporation and OCC in various

Reliance Industries Limited

5 3

capacities, he rose to the position of Executive Director
and spearheaded the setting up of Panipat Refinery for
the Indian Oil Corporation.

He has been the Site President of the Jamnagar complex
since 2001. Under his able leadership, in 2005, the Jamnagar
Refinery became the first Asian Refinery to be declared
the ‘Best Refinery in the world’, at the ‘World Refining &
Fuel Conference’ at San Fransisco, USA. Both Refineries
have bagged many national and international awards for
Excellence in Safety performance, Energy conservation &
Environment management, including the ‘Golden Peacock
Global Award for Sustainability for the year 2010’.

In recognition of his excellent achievements, the
CHEMTECH Foundation had conferred on him the
“Outstanding Achievement Award for Oil Refining” in 2008.
He is also a Member of the Research Council of the Indian
Institute of Petroleum, Dehradun.

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

He holds 16,776 shares of the Company in his name as on
March 31, 2011.

Shri Ramniklal H. Ambani is one of the senior most
Directors of the Company.

He 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 textile operations from its factory
at Naroda, in Ahmedabad

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

He is Director of the Gujarat Industrial Investments
Corporation Limited, Sintex Industries Limited and several
private limited companies. He is the Chairman of the Audit
Committee of the Gujarat Industrial Investments
Corporation Limited and member of the Remuneration
Committee of Sintex Industries Limited. He is the Chief
Mentor in Tower Overseas Limited.

He holds 1,72,632 shares of the Company in his name as
on March 31, 2011.

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 53
years and has vast experience in legal field and particularly
on matters relating to corporate laws, banking and taxation.

He is a 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.

He is a Director of Ambuja Cements Limited, Micro Inks
Limited, the Indian Merchant’s Chamber, Mumbai, JCB
India Limited, Abhijeet Power 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. In its
normal annual survey conducted by Asia Law Journal,
Hong Kong, a leading International law journal, he has
been nominated as one of ‘the Leading Lawyers of Asia
2010’. This is the fifth consecutive year in which he has
been so nominated.

He holds 3,00,000 shares of the Company in his name as
on March 31, 2011.

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

5 4

New Businesses. New Technologies. New Partnerships.

He is 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, Zodiac Clothing
Company Limited, Seksaria Biswan Sugar Factory Limited,
New Consolidated Construction Company Limited, Emami
Limited and several private limited companies.

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

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

He has been conferred Honorary Doctorate (Honoris
Causa) by Fakir Mohan University, Balasore, Odisha.

He holds 27,984 shares of the Company in his name as on
March 31, 2011.

Dr. Dharam Vir Kapur is an honours Graduate in Electrical
Engineering with wide experience in Power, Capital Goods,
Chemicals and Petrochemicals Industries.

He 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.
ENERTIA Awards 2010 conferred Life Time Achievement
Award on Dr. Kapur for his contribution to the Power and
Energy Sector and for his leadership in the fledgling NTPC
for which he was described as a Model Manager by the
Board of Executive Directors of World Bank.

As Secretary to the Government of India in the Ministries
of Power, Heavy Industry and Chemicals & Petrochemicals
during 1980-86, he made significant contributions with
introduction of new management practices and
liberalisation initiatives including authorship of “Broad
banding” and “Minimum economic sizes” in industrial
licensing. He was also associated with a number of national
institutions as Member, the Atomic Energy Commission;
Member, the Advisory Committee of the Cabinet for
Science and Technology; Chairman, the Board of
Governors, IIT Bombay; Member, the Board of Governors,
IIM Lucknow and Chairman, the 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. He is
recipient of “India Power, Life Time Achievement Award”
presented by the Council of Power Utilities, for his
contributions to Energy and Industry sectors. 4th
ENERTIA Awards also conferred “Life Time Achievement
Award” on Dr. Kapur.

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

He holds 13,544 shares of the Company in his name as on
March 31, 2011.

Reliance Industries Limited

5 5

Shri Mahesh Prasad Modi, M.Sc (Econ.) (London),
Fellow, Economic Development Institute of the World
Bank, held high positions in the Government of India as:
Chairman of Telecom Commission & Secretary,
Telecommunications Department & Director General,
Telecommunications; Secretary, the Ministry of Coal;
Special Secretary (Insurance), Economic Affairs
Department; and Joint Secretary, the Ministry of
Petroleum, Chemicals and Fertilizers. He has served as
Director on the Board of Directors of many public sector
and private sector companies, including: GAIL (Founder
Director), IPCL, BPCL, CRL, BRPL, Life Insurance
Corporation of India, General Insurance Corporation,
Mangalore Refinery & Petrochemicals, Essar Shipping,
BSES, ICICI Prudential Life Insurance Co.; and India
Advisory Board of BHP Billiton. He has considerable
management experience, particularly in the fields of energy,
petrochemicals, telecom and insurance.

He is a Director on the Board of FACOR Power Limited.
He is a member of the Audit Committee, the Employees
Stock Compensation Committee and the Corporate
Governance and Stakeholders’ Interface Committee of the
Company.

He holds 2,924 shares of the Company in his name as on
March 31, 2011.

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

He was the Director at the Indian Institute of Technology,
Bombay from 2000 to 2008, where he made significant
contributions taking the institute to greater heights. During
his tenure the IIT Bombay was transformed into a leading
Research & Development institute, while at the same time
maintaining its reputation as a leader in quality engineering
education. Prior to this he 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),

the Indian National Academy of Engineering, the Indian
Institute of Chemical Engineers, the Indian Plastics
Institute and the Maharashtra Academy of Sciences. He
is the Founder President of the Polymer Processing
Academy (launched in 2011) and the former President of
the Society of Polymer Science, India.

He 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, the Tufts University and the University of
Massachusetts. He was awarded the Distinguished
Service Award by IIT Delhi during its Golden Jubilee this
year. 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 150
international publications. He is on the editorial board of
4 scientific journals.

He holds 2,240 shares of the Company in his name as on
March 31, 2011.

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 had
been Dean of the Kellogg School of Management,
Northwestern University, Evanston, Illinois, USA from July,
2001 to March, 2011. He will join as Dean, INSEAD, a
leading business school with three campuses -
Fontainebleau (Paris), France, Singapore and Abu Dhabi
from May 1, 2011. He has more than 25 years’ experience
in management and education. He has published several
articles in international journals on marketing and allied
subjects.

His 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

5 6

New Businesses. New Technologies. New Partnerships.

from Rotary International in 1976; and the Jawaharlal Nehru
Merit Award, the Government of India in 1976.

He is a Director of John Deere & Company, Global Logistic
Properties 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
also a member of the Audit Committee.

He does not hold any shares 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 institute 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).

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

He 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.

He is a Director of Tata Motors Limited, Hindustan Unilever
Limited, Thermax Limited, Piramal Life Sciences Limited,

KPIT Cummins Infosystems Limited, Sakal Papers Limited,
IKP Knowledge Park and several private limited companies.
He is also a Director of Reliance Gene Medix Plc. (company
incorporated outside India).

He is a member of the Audit Committee of the Company.

He is a member of the Audit committees of Tata Motors
Limited and Hindustan Unilever Limited. He is a member
of the Remuneration Committee of Hindustan Unilever
Limited, KPIT Cummins Infosystems Limited and Piramal
Life Sciences Limited.

He does not hold any shares 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 authorised to constitute
additional functional Committees, from time to time,
depending on the business needs.

The internal guidelines of the Company for Board/Board
Committee meetings facilitate the decision making process
at the meetings of the Board/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

Reliance Industries Limited

5 7

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 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/Board
Committee meetings. All such matters are
communicated to the Company Secretary in advance
so that the same could be included in the agenda for
the Board/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:122)

General notices of interest of Directors.

Appointment, remuneration and resignation of
Directors.

Formation/Reconstitution of Board Committees.

Terms of reference of Board Committees.

The minutes of the Board meetings of unlisted
subsidiary companies.

(cid:122) Minutes of meetings of Audit Committee and other

Committees of the Board.

(cid:122)

Declaration of independent directors at the time of
appointment/annually.

Appointment or resignation of Chief Financial Officer
and Company Secretary.

(cid:122)

Annual operating plans of businesses, capital
budgets and any updates.

Quarterly results for the Company and its operating
divisions or business segments.

Dividend declaration.

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.

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.

Details of any joint venture, acquisitions of
companies or collaboration agreement.

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

(cid:122) Making of loans and investment of surplus funds.

(cid:122)

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.

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

5 8

New Businesses. New Technologies. New Partnerships.

(cid:122)

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 information disseminated to the press.

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

C. Board material distributed in advance

The 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.

D. Recording Minutes of proceedings at Board and

Committee meetings

The Company Secretary records the minutes of the
proceedings of each Board and Committee meeting. Draft
minutes are circulated to all the members of the Board/
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 Board Committee meetings
facilitate an effective post meeting follow-up, review and
reporting process for the decisions taken by the Board
and Board Committees thereof. The important decisions
taken at the Board/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/Board Committee for
noting by the Board/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:

Sl. Date
No.

Board

No. of

Strength Directors
Present

April 23, 2010

2. May 11, 2010

June 07, 2010

July 27, 2010

October 30, 2010

November 29, 2010

January 21, 2011

February 20, 2011

Reliance Industries Limited

5 9

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 2010-11

No of Other
Directorship(s)1

Board
Meetings

Last
AGM

Mukesh D. Ambani
Nikhil R. Meswani
Hital R. Meswani
Hardev Singh Kohli3
P.M.S. Prasad
Pawan Kumar Kapil4
Ramniklal H. Ambani
Mansingh L. Bhakta
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Mahesh P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar

8
7
7
2
6
4
6
8
7
7
7
8
7
7

Yes
Yes
Yes
-
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No

2
1
2
Nil
1
Nil
2
5
8
5
1
Nil
1
6

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

Nil
1 (as Chairman)
2 (including 1 as Chairman)
Nil
1
Nil
1 (As Chairman)
4 (including 1 as Chairman)
4 (including 1 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 pivate 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. May 16, 2010.

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: The Audit Committee of the Board
comprises three independent directors namely Shri
Yogendra P. Trivedi, Chairman, Shri Mahesh P. Modi and
Dr. Raghunath A. Mashelkar. 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.
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.
To seek information from any employee.
To obtain outside legal or other professional advice.
To secure attendance of outsiders with relevant
expertise, if it considers necessary.

2
3
4

6 0

New Businesses. New Technologies. New Partnerships.

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:122) 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:122)

Changes, if any, in accounting policies and
practices and reasons for the same.

(cid:122) Major accounting entries involving estimates
based on the exercise of judgment by the
management.

(cid:122)

Significant adjustments made in the financial
statements arising out of audit findings.

Compliance with listing and other legal
requirements relating to financial statements.

Disclosure of related party transactions.

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

findings and follow up thereon.

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

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

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

12 To review the functioning of the Whistle Blower

Mechanism.

13 Carrying out such other 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:122)

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:122) Management letters/letters of internal control
weaknesses issued by the Statutory Auditors;

(cid:122)

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
the Company.

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

Meetings: Six meetings of the Audit Committee were held
during the year ended March 31, 2011, as against the
minimum requirement of four meetings.

Reliance Industries Limited

6 1

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: One meeting of the Corporate Governance and
Stakeholders’ Interface Committee was held during the
year ended March 31, 2011.

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

Name of the Committee
Member

No. of

meetings meetings
attended

held

Yogendra P. Trivedi,
Chairman

Dr. Dharam Vir Kapur

Mahesh P. Modi

(iii) Employees Stock Compensation Committee

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

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

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

Name of the Committee
Member

No. of

meetings meetings
attended

held

Yogendra P. Trivedi, Chairman

Mahesh P. Modi

Dr. Raghunath A. Mashelkar

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.

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

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

6 2

New Businesses. New Technologies. New Partnerships.

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, 2011.

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
1
1
-
1

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:

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.

Exercise all powers to borrow moneys (otherwise than
by issue of debentures) within the limits approved by
the Board 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.

1 Review the Company’s financial policies, risk
assessment and minimisation procedures, strategies

Meetings: Eight meetings of the Finance Committee were
held during the year ended March 31, 2011.

Reliance Industries Limited

6 3

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

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

Name of the Committee
Member

No. of

meetings meetings
attended

held

Mukesh D. Ambani, Chairman

Nikhil R. Meswani

Hital R. Meswani

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

Composition: The Health, Safety and Environment
Committee of the Board comprises three Directors, namely,
Shri Hital R. Meswani, Chairman 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.

Meetings: Four meetings of the Health, Safety and
Environment Committee were held during the year ended
March 31, 2011.

Name of the Committee
Member

No. of

meetings meetings
attended

held

Hital R. Meswani
Hardev Singh Kohli1
Pawan Kumar Kapil2
Dr. Dharam Vir Kapur

1upto May 16, 2010
2w.e.f. May 16, 2010

4
1
3
4

(vi) Remuneration Committee

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.

Terms of Reference: The Remuneration Committee has
been constituted to recommend/review remuneration of
the Managing Director and Whole-time 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.

Remuneration paid to the Chairman and Managing Director and the Whole-time Directors, including Stock
Options granted during 2010-11:

Name of the Director

Salary

Perquisites
and
allowances

Retiral
benefits

Commission
payable

Mukesh D. Ambani

Nikhil R. Meswani

Hital R. Meswani

P.M.S. Prasad

Pawan Kumar Kapil

4.16

1.04

0.86

0.44

0.60

1.45

1.35

0.66

1.00

0.24

0.22

0.16

0.12

9.24

8.32

Total

15.00

11.05

11.03

2.37

1.22

Rs. in crore

Stock
Options
granted

Nil

6 4

New Businesses. New Technologies. New Partnerships.

The Chairman and Managing Director’s compensation has been set at Rs. 15 crore as against Rs. 38.75 crore that he is
elgible as per the shareholders’ approval, reflecting his desire to continue to set a personal example for moderation in
managerial compensation levels.

The tenure of office of the aforesaid Managing Director and Whole-time Directors is for a period of 5 years, except Shri
Pawan Kumar Kapil, whose tenure is for a period of 3 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 2010-11 are as detailed below:

Rs. in lakhs

Total

22.20

23.80

25.60

23.80

24.40

22.60

22.80

23.40

Name of the Non-Executive Director

Sitting Fee

Commission

Ramniklal H. Ambani

Mansingh L. Bhakta

Yogendra P. Trivedi

Dr. Dharam Vir Kapur

Mahesh P. Modi

Prof. Ashok Misra

Prof. Dipak C. Jain

Dr. Raghunath A. Mashelkar

Total

1.20

2.80

4.60*

2.80

3.40*

1.60

1.80*

2.40

20.60

21.00

168.00

188.60

*includes Rs.40,000 pertaining to previous financial years.

During the year, the Company has paid Rs. 0.64 crore as professional fees to M/s. Kanga & Co., a firm in which Shri
Mansingh 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 of the Board, comprises four Directors, namely,
Shri Mansingh L. Bhakta, Chairman, Shri Yogendra P.
Trivedi, Shri Nikhil R. Meswani and Shri Hital R. Meswani.

Terms of Reference: The Shareholders’/Investors’
Grievance 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 Registrars
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 with the Company’s Code of Conduct for
Prohibition of Insider Trading in pursuance of SEBI
(Prohibition of Insider Trading) Regulations, 1992. The
Board has delegated the power of approving transfer of
securities to the Managing Director and/or the Company
Secretary.

Meetings: Four meetings of the Shareholders’/Investors’
Grievance Committee (SIGC) were held during the year
ended March 31, 2011.

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

Name of the Committee
Member

Mansingh L. Bhakta, Chairman
Yogendra P. Trivedi
Nikhil R. Meswani
Hital R. Meswani

No. of

meetings meetings
attended
4
4
4
2

held
4
4
4
4

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

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

Type 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

153
3722

329
367
4571

There were no outstanding complaints as on March 31,
2011. 180 requests for transfers and 534 requests for
dematerialisation were pending for approval as on March
31, 2011, which were approved and dealt with by April 1,
2011. Given below is a chart showing reduction in
investor’s complaints.

Number of Complaints Received

Reliance Industries Limited

6 5

B. Functional Committees:
The Board is authorised 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.

Procedure at Committee Meetings
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, advisors 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 & Ethics for Directors’/

Management Personnel

The Code of Business Conduct & Ethics for Directors’/
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 and 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 & Ethics for Directors’/Management
Personnel in respect of the financial year 2010-11.

Mukesh D. Ambani
Chairman and Managing Director

6 6

New Businesses. New Technologies. New Partnerships.

8. Subsidiary Monitoring Framework

(B) Special Resolution passed through Postal Ballot:

All subsidiary companies of the Company are Board
managed with their Boards having the rights and
obligations to manage such companies in the best interest
of their stakeholders. The Company monitors performance
of subsidiary companies, inter alia, by the following means:

(a) Financial statements, in particular the investments
made by the unlisted subsidiary companies, are
reviewed quarterly by the Audit Committee of the
Company.

(b) All minutes of Board meetings of the unlisted
subsidiary companies are placed before the
Company’s Board regularly.

(c) A statement containing all significant transactions
and arrangements entered into by the unlisted
subsidiary companies is placed before the Company’s
Board.

The Company does not have any material unlisted
subsidiary and hence is not required to nominate an
independent director of the Company on the Board of any
subsidiary. Prof. Dipak C. Jain, Independent Director of
the Company has been appointed as a Director on the
Board of Reliance Retail Limited, a subsidiary of the
Company.

9. General Body Meetings

(A) Annual General Meetings:

The Annual General Meetings of the Company during the
preceding 3 years were held at Birla Matushri Sabhagar,
19, Marine Lines, Mumbai - 400 020.

The date and time of the Annual General Meetings held
during the preceding 3 years and the Special Resolution(s)
passed thereat are as follows:

2009-10

Date and Time: June 18, 2010 at 11.00 a.m.

Special Resolutions passed: Nil

2008-09

Date and Time: November 17, 2009 at 11.00 a.m.

Special Resolutions passed: Nil

2007-08

Date and Time: June 12, 2008 at 11.00 a.m.

Special Resolutions passed: Nil

No special resolution was passed through Postal Ballot
during 2010-11. 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 arms 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 a Show Cause Notice 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 of the Company
are published in ‘Financial Express’/‘Indian Express’
and ‘Navshakti’ and are displayed on the Company’s
website www.ril.com.

Reliance Industries Limited

6 7

(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’s
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/debenture
holders 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.

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 Affairs (MCA)
is L17110MH1973PLC019786.

Annual General Meeting
(Day, Date, Time and Venue):
Friday, June 03, 2011 at 11.00 a.m.
Birla Matushri Sabhagar,
19, Marine Lines, Mumbai 400020
Financial Calendar (tentative)
Financial Year: April 1, 2011 to March 31, 2012
Results for the quarter ending:
June 30, 2011 - Fourth week of July, 2011
September 30, 2011 - Third week of October, 2011
December 31, 2011 - Third week of January, 2012
March 31, 2012 - Third week of April, 2012
Annual General Meeting - June, 2012

Date of Book Closure

Monday, May 9, 2011 to Saturday, May 14, 2011
(both days inclusive) for payment of dividend.

Dividend Payment

Credit/dispatch between June 4, 2011 and June 9, 2011.

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

(a) For

queries

on Annual Report

Investor_relations@ril.com

Trading Symbol RELIANCE EQ

ISIN INE002A01018

(b) For queries in respect of shares in physical mode-

GLOBAL DEPOSITORY RECEIPTS (GDRs)

rilinvestor@karvy.com

(i) Shareholders’ Feedback Survey: The Company had
sent feedback forms seeking shareholders’ views on
various matters relating to investor services and the
Annual Report 2009-10. The feedback received from
the shareholders was placed before the Shareholders’/
Investors’ Grievance Committee.

Luxembourg Stock Exchange, 11,
Avenue de la Porte-Neuve, L – 2227,
Luxembourg.

Also traded on International Order Book System (London
Stock Exchange) and PORTAL System (NASD, USA)
Trading Symbol RILYP, CUSIP 759470107

6 8

New Businesses. New Technologies. New Partnerships.

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,
1st Floor, 414, Senapati Bapat Marg,
Lower Parel, Mumbai 400 013.

Debt Securities
The Wholesale Debt Market (WDM) Segment of
BSE & NSE.

Debenture Trustees
Axis Bank Limited
Bombay Dyeing Mills Compound,
Pandurang Budhkar Marg, Worli, Mumbai 400 025

IDBI Trusteeship Services Limited
Asian Building, Ground Floor,
17, R. Kamani Marg,
Ballard Estate,
Mumbai 400 023.

Axis Trustee Services Limited
2nd Floor - E, Axis Bank Tower,
Bombay Dyeing Mills Compound,
Pandurang Budhkar Marg,
Worli, Mumbai 400 025

Payment of Listing Fees: Annual listing fee for the year
2011-12 (as applicable) has been paid by the Company to
BSE and NSE. Annual maintenance and listing agency fee
for the calendar year 2011 has been paid by the Company
to the Luxembourg Stock Exchange.

Stock Market Price Data

Month

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

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

Month’s High
Price

Month’s Low
Price

Month’s High
Price

Month’s Low
Price

April 2010

May 2010

June 2010

July 2010

August 2010

September 2010

October 2010

November 2010

December 2010

January 2011

February 2011

March 2011

1149.70

1093.40

1093.95

1094.45

1031.00

1048.50

1110.00

1124.90

1075.00

1091.40

1009.40

1055.00

1012.00

976.00

995.10

1007.25

915.00

921.00

990.00

958.30

978.75

902.00

885.10

964.00

1171.00

1093.60

1092.90

1085.00

1029.70

1048.00

1110.00

1187.00

1075.00

1090.00

1008.65

1054.50

1012.05

976.35

840.55

1004.00

915.10

885.15

991.00

958.90

977.20

903.10

885.00

964.10

Reliance Industries Limited

6 9

Share Price Performance in comparison to broad based
indices – BSE Sensex and NSE Nifty as on March 31,
2011

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

RIL

-2.50%

37.58%

-7.46%

163.18%

S e n s e x
BSE

10.94%

100.29%

24.29%

72.39%

Nifty
NSE

11.14%

93.11%

23.22%

71.45%

FY 2010-11

2 years

3 years

5 years

Registrars and Transfer Agents
Karvy Computershare Private Limited
Plot No.17-24, Vittal Rao Nagar,
Madhapur, Hyderabad - 500 081.
Tel:+91 40-44655070-5099
Toll Free No.18004258998
Fax +91 40 23114087
e-mail: rilinvestor@karvy.com
Website: www.karvy.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 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.

Distribution of Shareholding as on March 31, 2011

Category Category of shareholder
code

Number of
shareholders

Total number As a percentage
of (A+B+C)

of shares

(A)
(1)
(2)

(B)
(1)
(2)

(C)

(1)
(2)

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
Promoter and Promoter Group
Public
Total

68
0

146 39 23 695
0
68 146 39 23 695

2 309
35 19 740

93 22 72 904
75 52 09 669
35 22 049 168 74 82 573

0
1
1

0
12 19 67 740
12 19 67 740

44.72
0.00
44.72

28.48
23.07
51.55

0.00
3.73
3.73

TOTAL (A) + (B) + (C)

35 22 118 327 33 74 008

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.

7 0

New Businesses. New Technologies. New Partnerships.

Shareholding Pattern by Size as on March 31, 2011

Sr. No.

Category (Shares)

1
2
3
4
5
6
7
8
9

1 - 500
501 - 1000
1001 - 2000
2001 - 3000
3001 - 4000
4001 - 5000
5001 - 10000
10001 - 20000
Above 20000

TOTAL

Holders

33 81 797
83 290
35 332
9 228
3 830
2 156
3 373
1 212
1 900

% of Total Shares

22 70 37 517
5 84 75 274
4 90 17 499
2 24 83 284
1 33 09 405
97 29 246
2 32 43 123
1 67 35 484
285 33 43 176

6.94
1.79
1.50
0.69
0.41
0.30
0.71
0.51
87.17

35 22 118

327 33 74 008

100.00

Build up of Equity Share Capital

Sl. Particulars
No.

Subscribers To Memorandum

Shareholders of Reliance Textile Industries Limited
(Merged with the Company)

Conversion of Loan

Rights Issue - I

Bonus Issue - I

Debenture Series I Conversion

Consolidation of Fractional Coupon Shares

Conversion of Loan

10 Rights Issue II

11 Debenture Series II Conversion

12 Debenture Series I Conversion Phase II

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

14 Rights Issue II NRI

15 Debenture Series III Conversion

16 Rights Issue II

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

18 Bonus Issue- II

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

20 Debenture Series IV Conversion

Allotment
Date

October 19, 1975

No. of
Shares

1 100

May 9, 1977

59 50 000

September 28, 1979

December 31,1979

9 40 000

6 47 832

September 19, 1980

45 23 359

December 31, 1980

May 15,1981

June 23, 1981

September 22, 1981

October 6, 1981

December 31, 1981

April 12, 1982

8 40 575

24 673

2 43 200

1 40 800

23 80 518

8 42 529

27 168

81 059

June 15, 1982

774

August 31, 1982

19 20 000

September 9, 1982

December 29, 1982

1 942

September 30, 1983

1 11 39 564

September 30, 1983

371

September 30, 1983

64 00 000

Sl.
No.

Particulars

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

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

23 Debenture Series I Conversion

24 Debenture Series II Conversion

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

26 Consolidation of Fractional Coupon Shares

27 Debenture Series E Conversion

28 Debenture Series III Conversion

29 Debenture Series IV Conversion

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

31 Consolidation of Fractional Coupon Shares

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

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

34 Debenture Series G Conversion

35 Right Issue III

36 Debenture Series G Conversion

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

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

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

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

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

42 Euro Issue GDR-I

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

Reliance Industries Limited

7 1

Allotment
Date

April 5, 1984

June 20, 1984

No. of
Shares

617

October 1, 1984

December 31, 1984

January 31, 1985

97 66 783

2 16 571

April 30, 1985

45 005

April 30, 1985

53 33 333

July 5,1985

December 17, 1985

December 31, 1985

52 835

42 871

106

610

November 15, 1986

40 284

April 1, 1987

169

August 1, 1987

6 60 30 100

February 4, 1988

3 15 71 695

February 4, 1988

29 35 380

June 2, 1988

October 31, 1988

November 29, 1990

May 22, 1991

October 10, 1991

322

June 3, 1992

1 84 00 000

4 060

December 4, 1992

7 49 42 763

July 7, 1993

3 16 667

August 26, 1993

3 64 60 000

7 2

New Businesses. New Technologies. New Partnerships.

Particulars

Sl.
No.

47 Warrant Conversion (Debenture Series F)

48 Euro Issue GDR II

49 Loan Conversion

50 Warrant Conversion (Debenture Series J)

Private Placement of Shares

Allotment
Date

August 26, 1993

February 23, 1994

March 1, 1994

August 3, 1994

No. of
Shares

1 03 16 092

2 55 32 000

18 38 950

87 40 000

October 21, 1994

2 45 45 450

52 Conversion of Reliance Petrochemicals Limited Debentures

December 22, 1994

75 472

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

54 Warrants Conversion

55 Conversion of 3.5% ECB Due 1999 I

56 Conversion of 3.5% ECB Due 1999 II

57 Conversion of 3.5% ECB Due 1999 III

58 Conversion of 3.5% ECB Due 1999 IV

59 Conversion of 3.5% ECB Due 1999 V

60 Conversion of 3.5% ECB Due 1999 VI

61 Bonus Issue III

62 Conversion of 3.5% ECB Due 1999 VII

63 Conversion of 3.5% ECB Due 1999 VIII

64 Conversion of Warrants

Shareholders of Reliance Petroleum Limited
(Merged with the Company)

Shareholders of Indian Petrochemicals Corporation Limited
(Merged with the Company)

67 Exercise of Warrants

68 ESOS - Allotment

Shareholders of Reliance Petroleum Limited
(Merged with the Company)

70 Bonus Issue IV

71 ESOS - Allotment

72 ESOS – Allotment

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

Total Equity as on March 31, 2011

March 16, 1995

9 95 75 915

March 10, 1995

74 80 000

May 24, 1997

July 11, 1997

July 22, 1997

September 13, 1997

October 22, 1997

November 4, 1997

544

13 31 042

6 05 068

18 64 766

18 15 755

1 03 475

December 20, 1997

46 60 90 452

December 4, 1997

September 27, 1999

January 12, 2000

October 23, 2002

15 68 499

7 624

12 00 00 000

34 26 20 509

October 13, 2007

6 01 40 560

October 3, 2008

12 00 00 000

Various dates

in 2008-09

1 49 632

September 30, 2009

6 92 52 623

November 28, 2009

1 62 67 93 078

Various dates

in 2009-10
Various dates
in 2010-11

5 30 426

29 99 648

327 62 43 503

- 28 69 495

327 33 74 008

Reliance Industries Limited

7 3

Corporate Benefits to Investors

a. Bonus Issues of Fully Paid-up Equity Shares

Financial Year

1980-81

1983-84

1997-98

2009-10

Ratio

3:5

6:10

1:1

b. Dividend Declared for the last 10 Years

Financial
Year

Dividend
Declaration

Dividend
per Share*

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

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

June 18, 2010
(post bonus issue 1:1)

4.25

4.75

5.00

5.25

7.50

10.00

11.00

13.00

7.00

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

Sr.
No.

Electronic / Physical

Mode of Holding
%

NSDL

CDSL

Physical

TOTAL

94.74

2.40

2.86

100.00

97.14% of Company’s paid-up Equity Share Capital has
been dematerialised upto March 31, 2011 (96.86% up to
March 31, 2010). 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 2010-2011 is given below:

* Share of paid-up value of Rs. 10 per share.

BSE

NSE

Total

Note: Dividend of Rs. 8 per share recommended by the
Directors on April 21, 2011 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)

Shares (nos.)

8 81 252

47 44 484 56 25 736

Value (in Rs. crore)

89.62

483.77

573.39

[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, 2011
represent 12,19,67,740 equity shares constituting 3.73%
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

7 4

New Businesses. New Technologies. New Partnerships.

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

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.

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

Plant Locations

Allahabad
A/10-A/27, UPSIDC Industrial Area
Karchana, P. O. T.S.L.
District Allahabad - 211 010,
Uttar Pradesh, India.

Barabanki
Dewa Road, P.O. 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, P.O. Bhatha, Surat
Hazira Road, Surat - 394 510, Gujarat, India.

Hoshiarpur
Dharmshala Road, V.P.O. Chohal
District Hoshiarpur - 146 024, Punjab, India.

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

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

Source : Bank of New York Mellon website

(b) Employee Stock Options: 35,200 Options have been
granted in the financial year 2010-11. 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.

Nagothane
P. O. Petrochemicals Township
Nagothane, Raigad - 402 125, Maharashtra, India.

Nagpur
Village Dahali, Mouda Ramtek Road
Tehsil Mouda – 441 104, District Nagpur
Maharashtra, India.

Naroda
103/106, Naroda Industrial Estate Naroda,
Ahmedabad - 382 330, Gujarat, India.

Patalganga
B-4, Industrial Area, P.O. Patalganga – 410 220
Near Panvel, Dist. Raigad
Maharashtra, India.

Reliance Industries Limited

7 5

Silvassa
342, Kharadpada, Naroli, 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, 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,
CYDWN-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.

CBM Blocks

SP (West) – CBM – 2001/1, SP (East) – CBM – 2001/1, SH
(North) – CBM - 2003/II

Address for Correspondence

(i)

Investor Correspondence

For Shares/Debentures held in Physical form

Karvy Computershare Private Limited
Plot No.17-24,Vittal Rao Nagar, Madhapur,
Hyderabad - 500 081.
Tel:+91 40-44655070-5099
Toll Free No.18004258998
Fax +91 40 23114087
e-mail: rilinvestor@karvy.com
Website: www.karvy.com

For Shares/Debentures held in Demat form

Investors’ concerned Depository Participant(s) and /or
Karvy Computershare Private Limited.

(ii) Any query on Annual Report

Shri S. Sudhakar
Vice President, Corporate Secretarial
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. 4.89 crore, lying in the unpaid / unclaimed dividend
account, 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.

The cumulative amount transferred to IEPF up to March
31, 2011 is Rs. 88.29 crore.

Equity Shares in the Suspense Account

As per Clause 5A(I) of the Listing Agreement, the
Company reports the following details in respect of equity
shares lying in the suspense account which were issued
pursuant to the public issue of erstwhile Reliance
Petroleum Limited (amalgamated with the Company):

Number of Number of
equity
shares

share
holders

107

1450

114

102

1348

Aggregate Number of
shareholders and the
outstanding shares in
the suspense account
lying as on April 1, 2010

Number of shareholders
who approached the
Company for transfer
of shares from suspense
account during the year

Number of shareholders
to whom shares were
transferred from the
suspense account
during the year

Aggregate Number of
shareholders and the
outstanding shares in
the suspense account
lying as on
March 31, 2011

The voting rights on the shares outstanding in the
suspense account as on March 31, 2011 shall remain frozen
till the rightful owner of such shares claims the shares.

As per Clause 5A(II) of the Listing Agreement, three
reminders were issued for shares issued in physical form,

7 6

New Businesses. New Technologies. New Partnerships.

which remain unclaimed. These shares will be transferred
into one folio in the name of "Unclaimed Suspense
Account" in due course.

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 Whole-time Directors based on their
performance and defined assessment criteria.

Communication to Shareholders

Half yearly Reports covering financial results are sent to
members at their registered address.

Audit Qualification

The Company is in the regime of unqualified financial
statements.

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 Board
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.
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 of the Listing
Agreement.

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, 2011 according to the
provisions of-

(cid:122)

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:122)

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;

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

The Securities and Exchange Board of India
(Issue and Listing of Debt Securities) Regulations,
2008;

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
Agreements with National Stock Exchange of India
Limited and Bombay Stock Exchange 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

Reliance Industries Limited

7 7

Companies Act, 1956 (“the Act”) and the Rules made
under the Act and the Memorandum and Articles of
Association of the Company, with regard to:

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

(b) closure of the Register of Members / 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, Auditors and the Registrar of
Companies;

(e) notice of Board meetings and Committee

meetings of Directors;

(f)

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

(g)

the 36th Annual General Meeting held on 18 June
2010;

(h) minutes of proceedings of General Meetings and

of Board and its Committee meetings;

(i)

(j)

approvals of the Members, the Board of
Directors, the Committees of Directors and
government authorities, wherever required;

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;

(k) payment of remuneration to the Directors
including the Managing Director and Whole-time
Directors;

(l)

appointment and remuneration of Auditors and
Cost Auditors;

(m) 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;

(n) payment of interest on debentures and

redemption of debentures;

7 8

New Businesses. New Technologies. New Partnerships.

(o) declaration and payment of dividends;

(p)

transfer of certain amounts as required under the
Act to the Investor Education and Protection
Fund;

(q) borrowings and registration, modification and

satisfaction of charges;

(r)

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

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

(t)

form of balance sheet as prescribed under Part I
of Schedule VI to the Act and requirements as to
Profit and Loss Account as per Part II of the said
Schedule;

(u) Board’s report;

(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; and

there was no prosecution initiated and no fines
or penalties were imposed 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 / on 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)

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 Agreements with
National Stock Exchange of India Limited and
Bombay Stock Exchange 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; and

(e)

the Company has complied with the provisions
of the Securities and Exchange Board of India
(Issue and Listing of Debt Securities)
Regulations, 2008.

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

Dated: April 21, 2011

Reliance Industries Limited

7 9

Directors' Report

Dear Shareholders,
Your Directors are pleased to present the 37th Annual Report and the audited accounts for the financial year ended
March 31, 2011.
Financial Results
The financial performance of the Company, for the year ended March 31, 2011 is summarised below:

13,477.01

2,980.48

Profit before Depreciation,
Interest & Tax
Interest
Less:
Depreciation
Less: Transfer from

16,241.33

Revaluation Reserve

2,633.75

Profit before Tax
Less: Provision for Current Taxation

Provision for Deferred Tax

Profit after Tax
Add: Balance in Profit and
Loss Account

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

2010-2011
Rs. crore

41,177.44
2,327.62

13,607.58
25,242.24
4,320.44
635.50
20,286.30

4,999.45
25,285.75

16,000.00
-
2,384.99
386.90
6,513.86
25,285.75

$ Mn*

9,234
522

3,051
5,661
969
143
4,549

1,114
5,663

3,588
-
535
87
1,453
5,663

2009-2010
Rs. crore

$ Mn*

33,041.18
1,997.21

7,359
445

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

2,338
4,576
693
267
3,616

1,199
4,815

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

* 1 $ = Rs. 44.595 Exchange Rate as on March 31, 2011 (1 $ = Rs. 44.90 as on March 31, 2010)

Results of Operations
The first full year of operations, after commissioning of
the Company’s two large scale projects namely KG D6
and SEZ refinery at Jamnagar, resulted in a record
performance during the financial year under review.

(cid:81)

Turnover increased by 29% to Rs. 2,58,651 crore
($ 58.0 billion)
Exports increased by 33% to Rs. 1,46,667 crore
($ 32.9 billion)
PBDIT increased by 25% and achieved a record level
of Rs.41,178 crore ($ 9.2 billion)
Profit Before Tax increased by 23% to Rs. 25,242 crore
($ 5.7 billion)
Cash Profit increased by 24% to Rs. 34,530 crore
($ 7.7 billion)

(cid:81) Net Profit increased by 25% to Rs. 20,286 crore

($ 4.5 billion)

(cid:81) Gross Refining Margin at $ 8.4 /bbl for the year ended

March 31, 2011

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. 28,719 crore ($ 6.4 billion) was paid in
the form of various taxes and duties.
Dividend
Your Directors have recommended a dividend of Rs. 8/-
per Equity Share (last year Rs. 7/- per Equity Share) for the
financial year ended March 31, 2011, amounting to
Rs. 2772 crore (inclusive of tax of Rs. 387 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 9,
2011; 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

8 0

New Businesses. New Technologies. New Partnerships.

formulated in accordance with the Company’s policy to
pay sustainable dividend linked to long term growth
objectives of the Company to be met by internal cash
accruals and the shareholders’ aspirations.

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. Its continued Balance Sheet strengthning in
financial year 2010-11, resulted in Moody’s, Fitch and S&P
recently upgrading their outlook for the Company from
Stable to Positive. 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, 2011 (cumulative position) are
given below:
a. Options Granted
b. Exercise Price

5,96,61,400

Options Granted

5,74,56,000*
54,000*
20,16,000*
1,00,200*
16,000
19,200

Exercise Price
(plus applicable taxes)
642*
842*
1146*
644.50*
995
929

*adjusted for bonus issue
c. Options Vested
d. Options Exercised
e. The total number of shares arising
as a result of exercise of Options

f. Options Lapsed
g. Variation in terms of Options
h. Money realised by exercise

of Options

1,65,41,026
36,79,706
36,79,706

1,24,30,574

Rs. 261.39 crore

i. Total number of Options in force

[(a) - (d) - (f)]

j. Employee wise details of Options

granted to:
i. Senior managerial personnel
1. Shri Nikhil R. Meswani
2. Shri Hital R. Meswani
3. Shri P.M.S. Prasad
4. Shri P.K. Kapil

4,35,51,120

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

ii. Any other employee who received
a grant in any one year of Options
amounting to 5% or more of
Options granted

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

k. Diluted Earnings Per Share (EPS)
before exceptional items pursuant
to issue of shares on exercise of
Options calculated in accordance
with Accounting Standard
(AS) 20 ‘Earnings Per Share’

Rs. 62.00
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 joint ventures,
partnerships and 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.
In line with its aspirations of ongoing growth, Reliance is
investing its resources in core business across the

Reliance Industries Limited

8 1

integrated energy chain. While doing so, the Company is
also taking the initiative of investing in new technologies
and businesses that help meet changing aspirations of
millions of Indian consumers. These strategies and
initiatives are aimed at ensuring that Reliance delivers long-
term sustainable growth and creates unprecedented value
for all its stakeholders.
Some of the major events of the year include the following:

(cid:81)

RIL-BP alliance:
RIL has entered into a strategic partnership with BP
and signed the relationship framework and
transactional agreements. The partnership across the
full value chain comprises BP taking a 30% stake in 23
oil and gas production sharing contracts that Reliance
operates in India, including the producing KG-D6
block. The two companies will also form a 50:50 joint
venture for the sourcing and marketing of gas in India
and will endeavour to accelerate the creation of
infrastructure for receiving, transporting and
marketing of natural gas in India. BP will pay an
aggregate consideration of $ 7.2 billion for the
interests to be acquired in the 23 production sharing
contracts. Future performance payments of up to $
1.8 billion could be paid based on exploration success
that results in development of commercial discoveries.
Shale gas joint ventures:
During the year, the Company, through its
subsidiaries, in the United States of America entered
into three distinctive joint venture agreements with
Atlas Energy, Pioneer Natural Resources and Carrizo
Oil & Gas and acquired 40%, 45% and 60% interests,
respectively in the shale gas acreage positions to be
explored by these joint ventures. The net Shale
acreage acquisition by Reliance is 3,12,430 acres. It
also entered in to a separate joint venture with Pioneer
Natural Resources aimed at addressing the mid-stream
opportunity in gas evacuation and transportation.
Joint venture for Butyl Rubber production in India:
During the year, RIL and Russia’s SIBUR announced
a joint venture for the setting up of a facility for
producing 100,000 MT butyl rubber in India. This is a
significant step towards Reliance’s commitment to
service India’s growing automotive sector by bringing
in complex technologies, available with only a very
few companies globally. The setting up of domestic
manufacturing of butyl rubber which is expected to
be commissioned by 2013, will fulfill a longstanding
demand of the Indian tyre and rubber industry.
Spearheading the knowledge revolution:
During the year, RIL acquired a substantial stake in

Infotel Broadband Services Limited (Infotel
Broadband), which emerged as a successful bidder in
all the 22 circles of the auction for Broadband Wireless
Access (BWA) Spectrum conducted by the
Department of Telecommunications (DoT). RIL owns
95% of the equity share capital of Infotel Broadband.
RIL sees the broadband opportunity as a new frontier
of knowledge economy in which it is confident of
taking leadership position and providing India with
an opportunity to be in the forefront among the
countries providing world-class 4G network and
services.

(cid:81) Others:

The Honorable Supreme Court of India delivered its
judgment in the Reliance Natural Resources Limited
(RNRL) - RIL dispute. The judgment recognized the
dominant role of the provisions of the Production
Sharing Contract and upheld the policies formulated
by the Government under which it has the authority
to regulate the production and distribution of natural
gas. RIL and RNRL signed a Gas Supply Master
Agreement in compliance with the Gas Utilization
Policy and EGoM decisions. RIL and Reliance ADA
Group companies approved and signed an agreement
canceling all existing non-compete arrangements
entered into between the two groups pursuant to the
scheme of reorganization of the Reliance Group and
entered into a new simpler, non-compete agreement
with respect to gas based power generation.

Consolidated Financial Statements
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.
Subsidiaries
In accordance with the general circular issued by the
Ministry of Corporate Affairs, Government of India, 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. 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 the
financial results of its subsidiary companies.

8 2

New Businesses. New Technologies. New Partnerships.

Details of major subsidiaries of the Company are covered
in Management’s Discussion and Analysis Report forming
part of the Annual Report.
Directors

Shri Ramaniklal H. Ambani, Shri Nikhil R. Meswani, Prof.
Ashok Misra and Shri Yogendra P. Trivedi, Directors, retire
by rotation and being eligible, offer themselves for
reappointment at the ensuing Annual General Meeting.
Group
Pursuant to intimation from the Promoters, the names of
the Promoters and entities comprising the ‘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, 2011, 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 judgments
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, 2011 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.

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 has approved the appointment
of the following cost auditors for conducting Cost Audit
for the financial year 2010-11 –
(i) For the textiles business - M/s. Kiran J. Mehta & Co,

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; and

(iii) For the polyester business – Shri Suresh D. Shenoy,
Cost Accountant, M/s. V. Kumar & Associates, Cost
Accountants.
Secretarial Audit Report
As a measure of good corporate governance practice, the
Board of Directors of the Company appointed Dr. K.R.
Chandratre, Practicing Company Secretary, to conduct
Secretarial Audit of records and documents of the
Company. The Secretarial Audit Report for the financial
year ended March 31, 2011, 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, the Securities and Exchange Board of
India (Prohibition of Insider Trading) Regulations, 1992
and the Securities and Exchange Board of India (Employee
Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999.
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

Reliance Industries Limited

8 3

thereto. Any member interested in obtaining such
particulars may write to the Company Secretary at the
registered office of the Company.
Energy Conservation, Technology Absorption and
Foreign Exchange Earnings and Outgo
The particulars relating to energy conservation,
technology absorption, foreign exchange earnings and
outgo, as required to be disclosed under Section 217(1)(e)
of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 are provided in the Annexure-I to
this Report.

Transfer of amounts to Investor Education and Protection
Fund

Pursuant to the provisions of Section 205A(5) of the
Companies Act, 1956, dividends, interest on debentures
and matured debentures which remained unpaid or
unclaimed for a period of 7 years have been transferred by
the Company to the Investor Education and Protection
Fund.

Corporate Governance

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

The Report on Corporate Governance as stipulated under
Clause 49 of the Listing Agreement forms part of the
Annual Report.

The requisite Certificate from the Auditors of the Company
confirming compliance with the conditions of Corporate
Governance as stipulated under the aforesaid Clause 49,
is attached to this Report.

Annexure – I

Particulars required under the Companies (Disclosure
of Particulars in the Report of the Board of Directors)
Rules, 1988

A. Conservation of Energy

(a) Energy conservation measures taken:

Major energy conservation measures carried out during
the year 2010-11 are listed below:

Allahabad Manufacturing Division

(cid:81)

Installation of Awwa nozzles on spinning machines
leading to reduction in compressed air consumption.
Recycling of filter water and cooling water.

Installation of capacitor on HT circuit, leading to
improvement in power factor.

Barabanki Manufacturing Division

(cid:81)

In order to utilize wind energy 45 Eco-ventilators were
provided at various locations in the plant to improve
the working atmosphere and reduce the heat load.
Fans were provided at Draw line roof, Ware house
and DG roof.

Energy efficient motors were provided at Husk Boiler
ESP (Electrostatic Precipitator) unit. Total seven
motors were replaced.

(cid:81) A Solar system Geyser installed and commissioned at

canteen for hot water use.

(cid:81) One solar light has been installed and commissioned

at road side, outside the main gate.

(cid:81) At Nitrogen Plant one line has been fabricated and
installed, this has resulted into Stoppage of Nitrogen
purge compressor.

Acknowledgement

Dahej Manufacturing Division

Your Directors would like to express their appreciation for
the 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 and Managing Director

April 21, 2011

(cid:81)

Realized energy savings by optimization of Gas
Turbine load by implementation of Export-Import
tieline control at Captive Power Plant (CPP).

(cid:81) Achieved water savings by reduction in water to
monomer ratio at Poly Vinyl Chloride (PVC) plant.

(cid:81)

Reduction in energy consumption by distillation vent
steam utilization at Ultra-high-molecular-weight
polyethylene (UHMW) – HDPE II (High Density Poly
Ethylene) plant.

Reduction in effluent generation by replacing 5%
Caustic with 32% Caustic for pH control at Vinyl
Chloride Monomer (VCM) plant.

8 4

New Businesses. New Technologies. New Partnerships.

(cid:81)

Reduction in energy consumption by providing
isolation valve in High Pressure (HP) steam header in
Phase-I at CPP.

(cid:81)

Reduction of Low Pressure (LP) steam consumption
in Amine treating Units by the reduction of lean amine
circulation rate.

Hazira Manufacturing Division

(cid:81) Uprading Gas Turbine (GT) capability of GT-3 and
GT-5 at Captive Power Plant & Utilities (CPP&U).

(cid:81)

Installation of additional motor driven BFW Pump
(B-900) and stoppage of Boiler Feed Pump Turbine
(BFPT) at Cracker Plant to achieve energy savings.

Replacing Existing bowed Super Heater (SH) modules
of Heat Recovery Steam Generator (HRSG) #1 and 2
with drainable and finned super heaters.

Reduction in steam and power consumption by
reducing the water/Aqueous EO (Ethylene Oxide)
ratio in glycol reactors at Mono Ethylene Glycol (MEG)
plant.

Piping / Process modification in Condensate Trim
Cooler (EA 1553) heat exchanger scheme to improve
energy performance and reliability at CPP&U.

Improvement in Waste heat recovery performance of
(Make up water heater) MUWH# 3 and MUWH#5 at
CPP&U plant.

(cid:81) Hiboil reflux ratio optimization at Vinyl Chloride

Monomer (VCM) plant.

(cid:81) Maximizing loading on Recycle Ethylene Di-Chloride
(REDC) column and minimizing on HB column to
reduce SIP consumption by 1.0 Tonnes Per Hour
(TPH) and Reflux flow optimization in REDC column.

(cid:81)

Increase in Purified Terephthalic Acid (PTA)-3 Process
Air Compressor (PAC) power export.

Hoshiarpur Manufacturing Division

(cid:81)

Reduction in energy consumption by installation of
inverter for chilled water pump.

Stopped one exhaust blower of Draw Machine # 3 to
conserve energy.

Reduction in specific steam consumption in Draw
Machine # 1, 2 & 5.

Reduction in specific power consumption in Draw
Machine # 2 & 5.

(cid:81) Optimization of Coker FGRS (Flare Gas Recovery
System). MP steam consumption in ejector reduced
and Flare loss reduction by optimizing operating
parameters.

(cid:81)

Improvement in centrifugal air compressor’s
efficiency. Inter-stage cooler bundles replaced with
phenolic coated tube bundles to minimize fouling.
Implemented in 4 out of 6 compressors.

Installation of Heat exchanger in Cracked Naphtha
Hydro Treaters (CNHT) to recover naphtha splitter
Overhead stream heat. Earlier it was routed directly
to fin fan cooler.

Improvement of Ortho Xylene (OX) and Heavy
Aromatics (HA) column reboiler heater efficiencies
by online cleaning of radiant section.

Steam Leak reduction. Steam leak survey carried out
across the complex. Identified source of leak arrested.

Fuel saving by improvement in steam load
distribution. Steam generation load on HRSG
maximized and load on auxiliary boiler reduced. Heat
rate lower for HRSG.

Propylene Treater Regeneration Sequence
Modification in Propylene Recovery Unit (PRU) to
avoid Propylene loss.

Power saving in Pumps and compressors by
optimizing process parameters.

Jamnagar Manufacturing Division (SEZ):

(cid:81)

Reduction in LP Steam dumping by taking following
measures:-

a) Changing over the process unit turbines to motor
driven in Crude / Vaccum Gas Oil (VGO) High Tension
(HT) / Coker / Clean Fuels (CFP) Complex.

b) Reducing the LP Steam generation in Diesel

Hydrodesulphurisation (DHDS) -1/2

c) VGO HT-3 S-18 Steam generator bypass.

(cid:81)

Zero main flare achievement on continuous basis by

Jamnagar (DTA) Manufacturing Division

a) Arresting the leakages in Hydrogen Complex.

(cid:81)

Improvement in heat recovery in Amine Treating by
replacing shell and tube heat exchanger with new
plate-frame type.

Implementation of Energy conservation schemes in
Alkylation Unit (Refrigeration compressor seal
modification).

Reliance Industries Limited

8 5

Implementation of Energy conservation scheme in
Flare Gas Recovery Unit (Additional 30" suction
piping for the flare gas recovery compressor).

Implementation of Energy conservation scheme at
Propylene Recovery Unit (PRU) [PRU regeneration
gases to Low Low Pressure (LLP) flare].

(cid:81) Minimization of H2 flaring / H2 to FG by product
pressure-feed control scheme as well as integration
of SEZ and DTA hydrogen complex.

(cid:81)

Running only 3 air compressors in place of 4 in utility
complex.

Routing of regeneration gases (high N2 conc.) to LLP
Flare in PRU.

Nagpur Manufacturing Division

(cid:81)

Reduced energy consumption by replacement of old
Beacon make Chilled Water Pumps with Grundfos
make new energy efficient pumps –Two Nos.

Reduced energy consumption by replacement of
Vertical Turbine pump with Submersible pump at River
Intake Well resulting in stoppage of water lubrication
pump.

Nagothane Manufacturing Division

(cid:81)

Stopping of DM water pump to process plants and
utilizing the excess capacity available in DM water
supplying to CPP.

Stopping of both vent absorber (C-05 and C-20) tails
pump (P-95 and P-56) by rerouting of tails to stripper
through different nozzle and utilize stripper vacuum.

Installation of New Plug flow Steamer (FB501) for
hydrocarbon stripping from Polypropylene (PP)
powder.

Naroda Manufacturing Division

(cid:81)

Replacement has been done of 2 nos. Bore-well Pumps
with Energy Efficient Pumps.

Patalganga Manufacturing Division

(cid:81)

Corrocoating of Cooling Water pumps in Linear Alkyl
Benzene (LAB) and PTA Plants.

Chemical cleaning of Convection Bank Heater Tubes
in Paraxylene Plant.

Ceramic coating on Heater Tubes in Paraxylene Plant.

Vadodara Manufacturing Division

(cid:81) Use of Aerofoil designed Fibre-reinforced plastic
(FRP) blades for cooling tower fans. Scheme was

implemented in two cooling towers i.e. N2O2 (1 fan)
and A CN cooling tower (1 fan). In addition to that
A CN cooling tower internals were replaced resulting
in reduction in make up water by 4.5 m3/hr.

Blocking of muffle block inside burner assembly for 4
burners of Hot Oil heater, LAB plant, resulted in saving
of Fuel Gas.

Reduction in excess Oxygen in flue gas in H-106, of
Naphtha Cracker Plant (NCP), from 4.0% to 2.4% by 4
burner blank off lowered the fuel gas consumption
significantly.

Reduction in HF inventory by Single Reactor settler
trial led to power saving due to stopping of one pump.

Installation of Energy Efficient Retrofit Metal halides/
Compact Fluorescent Lamp (CFL) in place of the
conventional lighting was done to reduce power
consumption.

(cid:81)

(cid:81) VCM EDC (Ethylene Dichloride) Cracker Stack
temperature and excess Oxygen (O2) reduction was
done with the help of Damper adjustment.

(cid:81)

Insulation Health check was carried out for Out Side
Battery Limited (OSBL) steam header. Insulation repair
work was done for HP and MP header.

Reduction in Hot Oil circulation flow from 145M3/Hr
to 120M3/Hr in LAB.

Stripper column bottom 2 pump was operated for
reduction in Chemical Oxygen Demand (COD) in
A CN plant.

(b) Additional investments / proposals being implemented

for reduction of consumption of energy:

Dahej Manufacturing Division

(cid:81)

Improvement in heat recovery by increase in residue
gas exchanger area at Gas Cracker plant.

Improvement in heat recovery by installation of new
E 521 exchanger at MEG plant.

Reduction in power demand by installation of
hydraulic Turbine at Ethane-Propane Recovery Unit
(EPRU).

Recovery of heat energy by replacing exchanger E
624 which a shell and tube type exchanger with a
plate type heat exchanger and rerouting of recycle
water through it.

Energy savings by supplying LP ethylene to VCM
from Gas Cracker Unit (GCU). This will reduce the

8 6

New Businesses. New Technologies. New Partnerships.

refrigeration load on compressors C2R and C3R at
Gas cracker plant.

Nagothane Manufacturing Division

(cid:81) Anti Corrocoat coating is to be applied to all cooling

(cid:81)

Steam savings by cent rate water heat recovery at PVC.

water pumps to improve efficiency.

Hazira Manufacturing Division

(cid:81)

Provision of Glycol ejector in place of steam ejectors
in CP-2/3 at Partially Oriented Yarn (POY) plant.

Improvement in run length of Gasoline Hydrogenation
Unit (GHU) 1st stage reactor with replacement of
catalyst with Ni catalyst at cracker plant and reducing
no. of regenerations of GHU 1st stage reactor from 4 to
2 regenerations.

Hoshiarpur Manufacturing Division

(cid:81)

Reduction in energy consumption by installation of
Uninterrupted Power Supply (UPS) for Plant lighting
system.

Reduction in energy consumption by stopping return
air blower of POY quenches Air Handling Unit (AHU).

Reduction of energy consumption by installing
inverter on Raw water /Cooling water pump

Jamnagar (DTA) Manufacturing Division

(cid:81)

In LPG recovery improvement scheme across Re-
contact Drum (RCD) loop, under the scheme of routing
separator liquid to recovery plus unit, stoppage of
two pumps at Recovery plus can save 300 kW power
which could be Rs 1.29 crore /annum.

Jamnagar Manufacturing Division (SEZ):

(cid:81)

Provisions of new 8" bypass line to LP Steam generator
S-18 in VGO HT-4 Unit.

Reduction of MP steam by re-routing Light Coker
Gas Oil (LCGO) pump around to stripper re-boiler in
Coker-2.

Replacement of MP steam by LP steam in Fluidized
Catalystic Cracker (FCC) reactor stripper using thermo-
compressor.

Nagpur Manufacturing Division

(cid:81)

Replacement of 12 nos. centrifugal pumps with high
efficiency pumps.

Naroda Manufacturing Division

(cid:81)

Energy Saving by replacing Old Inefficient Electrical
Motors by Energy Efficient Motors.

(cid:81) Gas Conversion of Stenters in Menswear Process

House from Gas Fired Thermic Fluid Heating.

(cid:81) Augmentation of Humidification Systems in Worsted

Spinning.

Patalganga Manufacturing Division

(cid:81)

Corrocoating of Cooling Water pumps in Energy
Center and Utility Plants.

Installation of Heat Pipe Heat Exchanger (HPHE) in
Bertram Heater (Dow Vapor service) and CP6 Heater
(Dow Liquid service) of Utility Plant.

Providing efficient Air Intermingling Jets in TORAY
FDY Plant.

Improved Steam traps management.

Vadodara Manufacturing Division

(cid:81) Heat recovery scheme of EO column bottom and EO
stripper bottom to preheat Cycle gas going to
Contactor.

(cid:81)

Proposal to preheat the feed for Low boiler Tower (T-
410) with the overhead product stream of High Boiler
Tower (T-420) in PBR1 plant is under conceptual stage.
Preheating for Feed to T-410 column with bottom
product is also under consideration.

Steam Network audit on regular basis to identify,
quantify and control steam leak through valves, pin
hole and traps.

Installation of Variable Frequency Drive (VFD) in
Induced Draft (ID) and FD fans of LAB heater.

In PBR2 plant, Condensate flashing by reducing the
condensate drum pressure (V-152) to 1.2 Kg/cm2 g
resulting in additional heat recovery.

LAB plant, Pacol Compressor motor replacement to
avoid the Gear Box resulting in power saving.

Recovery of H2 rich gas during reduction of PGH 1st
stage reactor.

By arresting the Flue gas losses through the by-pass
stacks of GT’s and Insulation health check, the
energy loss will be prevented.

Reliance Industries Limited

8 7

(cid:81)

Recovery of heat energy, worth Rs. 87 lacs per year,
can be achieved by replacing exchanger E 624 which
a shell and tube type exchanger with a plate type heat
exchanger and rerouting of recycle water through it.

Energy savings worth Rs. 119 lacs per year can be
achieved by supplying LP ethylene to VCM from GCU.
This will reduce the refrigeration load on compressors
C2R and C3R at Gas cracker plant.

Estimated saving worth Rs. 53 lacs can be achieved
by savings steam by centrate water heat recovery at
Poly Vinyl Chloride (PVC) plant.

Hazira Manufacturing Division
(cid:81) Uprading Gas turbine capability of GT-3 and GT-5 at

(cid:81)

CPP&U. (Savings: Rs. 14.19 crore approx.)
Installation of additional motor driven Boiler Feed
Water (BFW) Pump (B-900) and stoppage of BFPT at
Cracker plant to achieve energy savings. (Savings:
Rs. 8.21 crore approx.)
Replacing Existing bowed SH modules of HRSG#1
and 2 with drainable and finned super heaters.
(Savings: Rs. 7.05 crore approx.)
Reduction in steam and power consumption by
reducing the water/Aqueous EO ratio in glycol
reactors at MEG plant. (Savings: Rs. 3.54 crore
approx.)
Piping / Process modification in Condensate Trim
Cooler (EA 1553) heat exchanger scheme to improve
energy performance and reliability at CPP&U.
(Savings: Rs. 3.77 crore approx.)
Improvement in Waste heat recovery performance of
(Make up water heater) MUWH# 3 and MUWH#5 at
CPP&U plant. (Savings: Rs. 2.45 crore approx.)
(cid:81) Hiboil reflux ratio optimization at VCM plant. (Savings:

(cid:81)

(cid:81) GT2 output improvement by 7.5% and heat rate
reduction by 2%. This will be achieved by up-rating
the gas turbine major components.

(c) Impact of measures of (a) and (b) given above for
reduction of energy consumption and consequent
impact on the cost of production of goods:

Allahabad Manufacturing Division

(cid:81)

Reduction in compressed air consumption due to
installation of Awwa nozzles on spinning machines
has resulted savings of Rs. 12.46 lacs per annum.

Savings of Rs. 8.93 lacs per annum has been achieved
due to recycling of filtered water and cooling water.

Installation of capacitor on HT circuit leading to
improvement in power factor and realized savings of
Rs. 4.63 lacs per year.

Barabanki Manufacturing Division

(cid:81)

Energy efficient motors were provided at Husk Boiler
ESP unit. Total seven motors were replaced.

(cid:81) A Solar system Geyser installed and commissioned at

canteen for hot water use.

(cid:81) One solar light has been installed and commissioned

at road side, outside the main gate.

(cid:81) At Nitrogen Plant one line has been fabricated and
installed this has resulted into Stoppage of Nitrogen
purge compressor.

(cid:81) All the above energy conservation measures has

resulted savings of Rs. 0.85 lacs per year.

Dahej Manufacturing Division

Rs. 1.30 crore approx.)

(cid:81)

Total annual savings worth Rs. 2.89 crore has been
achieved on implementation of energy saving
schemes as indicated in Section (a).

Estimated savings worth Rs. 92 lacs per year can be
achieved by increase in residue gas exchanger area
for better heat recovery at Gas cracker plant.

Estimated savings worth Rs. 46 lacs per year can be
achieved by installation of new E 521 exchanger for
better heat recovery at MEG plant.

Estimated savings worth Rs. 78 lacs per year can be
achieved by installation of hydraulic Turbine at EPRU.

(cid:81)

(cid:81) Maximizing loading on REDC column and minimizing
on HB column to reduce SIP consumption by 1.0 TPH
and Reflux flow optimization in REDC column.
(Savings: Rs. 1.13 crore approx.)
Increase in PTA-3 PAC power export. (Savings: Rs.
0.91 crore approx.)
Provision of Glycol ejector in place of steam ejectors
in CP-2/3 at POY plant. (Anticipated Savings: Rs. 2.50
crore approx.)
Improvement in run length of GHU 1st stage reactor
with replacement of catalyst with Ni catalyst at cracker

(cid:81)

8 8

New Businesses. New Technologies. New Partnerships.

plant and reducing no. of regenerations of GHU 1st
stage reactor from 4 to 2 regenerations. (Anticipated
Savings: Rs. 0.42 crore approx.)

Hoshiarpur Manufacturing Division

(cid:81)

Savings of Rs. 2.47 crore made by optimizing steam
consumption.

Savings of Rs. 57 lacs were made by taking various
energy conservation measures such as Installed
inverter for chilled water pump, Stopped one
no. exhaust blower of Draw Machine # 3, Reduction
in specific power consumption in Draw Machine
# 2 & 5.

Estimated savings of Rs. 4.9 lacs per year can be
achieved by installing UPS for plant lighting system.

Estimated savings of Rs. 9.7 lacs per year can be
achieved by stopping return blower of POY quench
AHU.

Estimated savings of Rs. 2.2 lacs per year can be
achieved by installing inverter on Raw water/ Cooling
water pump.

Jamnagar (DTA) Manufacturing Division

(cid:81)

Improvement in heat recovery in Amine Treating Unit-
4 by replacing shell and tube heat exchanger with
new plate- frame type rich/lean amine heat exchanger,
saving 7 TPH LP Steam (saving Rs. 4.7 crore / annum).

Reduction of LP steam consumption by 10 TPH in
Amine treating Units by the reduction of lean amine
circulation rate (Saving Rs. 6.95 crore / annum).

(cid:81)

(cid:81) Optimization of Coker FGRS system to reduce MP
steam consumption by 1.25 TPH and Flare loss
reduction by 6 Month Till Date (MTD) (saving Rs.
6.02 crore / annum).
Improvement of centrifugal air compressor’s 6, 7, 8
and 9 efficiency in DTA Utilities by the replacement
of inter-stage coolers with phenolic coated tube
bundles in all the compressors one by one, reduction
of power consumption by 1245 KWhr. (saving Rs.
5.35 crore / annum).

(cid:81)

Installation of S03 stripper feed Heat exchanger in
CNHT to recover naphtha splitter OVHD stream heat
which is going to fin fan cooler A01, saving 6 MTD of
Fuel gas (saving Rs. 4.91 crore / annum).

Improvement of OX and HA column reboiler heater
efficiencies by radiant section online cleaning, saving
3.47 MTD of Fuel Gas (saving Rs. 2.84 crore / annum).

(cid:81)

Steam Leak reduction by survey across the complex
conducted by energy cell, saved 4 TPH LP steam
(saving Rs. 2.67 crore / annum).

Fuel saving by load improvement in HRSG 1 and 5,
saving 1 MTD fuel (saving Rs. 0.82 crore / annum).

Propylene Treater Regeneration Sequence
Modification in PRU to avoid Propylene loss in Flare
at the beginning of regeneration, reduction of flare
loss by 1 MTD (saving Rs. 0.23 crore / annum).
Power saving in LNUU Recycle gas compressor by
optimizing Gas to Oil Ratio, saving power of 150 KWhr
(saving Rs. 0.64 crore / annum).
Power saving by stopping of one out of two in Tatoray
stripper bottom pumps, saving power of 50 KWhr
(saving Rs. 0.215 crore / annum).
Power saving in HMU-1 due to increase in efficiency
of RFG compressor by providing new tube bundle
with additional baffles in Inter stage cooler, saving 14
KWhr power (savings Rs. 0.06 crore / annum).

Jamnagar Manufacturing Division (SEZ)

(cid:81)

Energy savings worth Rs. 1714.3 lacs per year has
been achieved by reducing LP steam dumping from 84
to 50 TPH.

(cid:81) Achieved hydrocarbon saving of 31 TPD by
recovering all hydrocarbons released to flare header.
There is zero flaring from Main flare now (savings Rs.
1150.7 lacs per annum).

(cid:81) Achieved 18.9 TPD saving of fuel by reducing H2
getting lost in fuel gas (savings Rs. 701.5 lacs per
annum).

(cid:81) Achieved 12.2 TPD of fuel savings by running only 3
compressors in utility (savings Rs. 450.9 lacs per
annum).

(cid:81) Achieved 2.1 TPD savings of fuel by recovery of
regeneration gases by routing them to LLP flare
(savings Rs. 77.9 lacs per annum).

(cid:81)

(cid:81) An estimated energy saving quantity of 26.4 TPD
(Rs. 970.6 lacs per year) of fuel by providing a bypass
to LP steam generator can be achieved.
Energy savings worth Rs. 534.5 lacs per year can be
achieved by re-routing LCGO pump around to stripper
re-boiler in Coker-2.
Energy savings worth Rs 979.9 lacs per year can be
achieved by replacement of MP steam by LP steam in
FCC reactor stripper using thermo-compressor.

(cid:81)

Reliance Industries Limited

8 9

(cid:81)

Energy savings worth Rs. 81.3 lacs per year can be
achieved by routing vent gases from degassing
column to FG header.

(cid:81)

Estimated Energy Saving worth Rs. 62.34 lacs per year
can be achieved by augmentation of Humidification
Systems in Worsted Spinning.

Nagpur Manufacturing Division

Patalganga Manufacturing Division

(cid:81)

Savings of Rs. 4.5 lacs per year achieved due to
reduced energy consumption by replacement of old
Beacon make Chilled Water Pumps with Grundfos
make new energy efficient pumps –Two Nos.

Savings of Rs. 1.0 lacs per year achieved due to
reduced energy consumption by replacement of
Vertical Turbine pump with Submersible pump at River
Intake Well resulting in stoppage of water lubrication
pump.

Estimated saving worth Rs. 12 lacs per year can be
achieved by replacement of 12 nos. centrifugal pumps
with high efficiency pumps.

Nagothane Manufacturing Division

(cid:81)

Energy savings worth Rs. 7.10 lacs per year has been
the DM water
achieved by
pump supplying water to process plants. (Power
Savings is 30 KW per Hour @ Rs. 2.7 per KWH )

stopping

Stopping of both vent absorber (C-05 and C-20) tails
pump (P-95 and P-56) by rerouting of tails to stripper
through different nozzle and utilize stripper vacuum
has resulted energy saving worth Rs. 0.61 lacs per
annum. (Power savings is 2.6 KW per hour @ Rs.2.7
per KWH)

Reduced steam consumption by Installation of New
Plug flow Steamer (FB501) for hydrocarbon stripping
from PP powder. This has achieved energy savings
worth Rs. 10.51 lacs per year. (Steam savings is 300
Kgs per Hour. Considering a cost of Rs.400 per MT
the annual savings is Rs.10.51 lacs)

Naroda Manufacturing Division

(cid:81)

Energy savings worth Rs. 16.60 lacs per year has been
achieved by replacement of 2 nos. Bore-well Pumps
with Energy Efficient Pumps.

Estimated Energy Saving worth Rs. 83.67 lacs per year
can be achieved by replacing Old Inefficient Electrical
Motors by Energy Efficient Motors.

Energy Saving worth Rs. 47.33 lacs per year can be
achieved by Gas Conversion of Stenters in Menswear
Process House from Gas Fired Thermic Fluid Heating.

(cid:81)

Energy savings worth Rs.19 lacs per year has been
achieved by efficiency improvement on Corrocoating
of Cooling water pumps in LAB and PTA plants.
Energy savings worth Rs.16 lacs per year achieved
by chemical cleaning of Convection Bank Tubes in
Paraxylene Heater (D5001).
Energy savings worth Rs.30 lacs per year can be
achieved by providing efficient Intermingling Jets in
TORAY FDY plant.
Energy Saving worth Rs. 30 lacs per year can be
achieved by installation of HPHE exchanger in Bertram
and CP 6 Dow heaters.

Vadodara Manufacturing Division

(cid:81)

Savings realized due to blocking of muffle burner
block in Hot Oil heater of LAB plant, savings to the
tune of Rs. 45 lacs/annum have been realized. In
addition to that stack damper adjustment of EDC
cracker furnace has lead to Rs. 40 lacs saving.
Likewise, blocking of 4 burner blocks in H-106 helped
in reducing the excess O2 in flue gas from 4 to 2.4%
and a saving of Rs. 33 lacs/annum. Thus, total Energy
savings worth Rs. 161 lacs have been realized.

(d) Total energy consumption and energy consumption
per unit of production as per Form ‘A’ attached
hereto.

B. TECHNOLOGY ABSORPTION

(e) Efforts made in technology absorption - as per Form

B given below:

Form B
Research and Development (R&D)
1. Specific areas in which the research and development

(cid:81)

(R&D) is being carried out by the Company
(cid:81) Development of in-house additives for increase
in propylene yield in fluidized catalytic cracker
(FCC).
Selection of lower cost FCC catalysts and
additives for improved conversion and yields.
Processing of cheaper and heavier varieties of
crude to widen the crude blends window.
Propylene yield improvements and benzene
reduction in refining.

(cid:81)

9 0

New Businesses. New Technologies. New Partnerships.

(cid:81) Desalter operation improvements.

(cid:81)

Computational fluid dynamics (CFD) studies for
plant trouble shooting.

(cid:81)

Barrier property enhancement for polyethylene
terephthalate (PET) resin.

(cid:81) Development of PET with new additive for cost

(cid:81) Molecular compositional blending models.

reduction and color improvement.

(cid:81)

Polypropylene quality control.

Coker streams processing in FCC.

Studies to produce good quality feedstock for
carbon black industry.

(cid:81) Heterogeneous catalysis for hydrocarbon

transformations.

(cid:81) Homogeneous catalysis for specific organic

synthesis.

(cid:81) Development of adsorbents and adsorption

processes.

(cid:81) Development of catalysts for polymerization of

ethylene and butadiene.

(cid:81)

Polymer based specialty products development.

Chemical and microbial treatment of effluent water.

(cid:81) Development of yarn from alternate polyester
(Polytrimethylene terephthalate, Polybutylene
terephthalate).
Productivity enhancement through polymer
modification.

(cid:81)

(cid:81) Asbestos replacement in cement sheets.

(cid:81)

Indigenous spin finish development for various
products.

(cid:81) Development of anti-pill polyester, elastic
polyester, low melt polyester, low cost flame
retardant polyester , low antimony/antimony free
polyester, full dull/cotton look polyester fiber,
hollow and bulky fibers, and super micro denier
polyester staple fiber.

(cid:81) Development of PolyVinyl Chloride (PVC)

separation techniques in PET recycling.

(cid:81) Development of model for simulated moving bed

2. Benefits derived as a result of the above R&D

processes.

(cid:81) Development of dehydrogenation catalyst for

linear alkyl benzene (LAB).

(cid:81)

Polyolefin inorganic precursor technology
development.

(cid:81) High performance polypropylene (PP) homo and
impact copolymers (ICP) grades catalyst
technology.

(cid:81) Development of high performance additives for

polyolefins.

(cid:81) Development of catalytic process for on purpose

1-hexene.

(cid:81) Development of morphologically controlled

catalyst for producing HDPE grades.

(cid:81) Development of clarifiers for PP grades.

(cid:81) Development of reactor grade thermo plastic

olefins (TPO).

(cid:81) Development of high flow high stiffness PP

grades.

(cid:81)

Potential benefit of Rs. 50 crore/annum for
additional extraction of benzene from light
reformate, which also helped in reducing the
benzene content of gasoline in refinery.
Rs. 20 crore/annum from additional propylene
recovery in the FCC unit in refinery.
Rs.12 crore/annum saved on design and
downtime costs in refinery coker heater through
CFD modeling.
Rs. 35 crore/annum by demonstrating capability
to process additional coker LPG in the refinery
propylene recovery unit.
Potential benefits of ~ Rs. 58 crore/annum from
polyester R&D projects.

3. Future plan of action

(cid:81) Hydro-processing catalyst development and

evaluation.
Creation of coker pilot plant / related facilities.
Catalyst development for improving FCC
profitability.

(cid:81)

(cid:81) New co-catalyst systems for enhancing bottle-

(cid:81) Development of process for widening of crude

grade resin productivity.

window.

Reliance Industries Limited

9 1

productivity
enhancements.

increase and

functional

(cid:81) Development of eco-friendly/green partially

oriented yarn (POY).

(cid:81) Up-scaling of moisture management yarns.

(cid:81)

Exploring the application of polyester in various
segments/products.

4. Expenditure on R & D

Rs. crore

a) Capital
b) Revenue
c) Total
d) Total R & D expenditure is 0.2% of total turnover.

202 .88
314.33
517.21

Technology absorption, adoption and innovation

1. Efforts, in brief, made towards technology absorption,

adoption and innovation:

(cid:81)

Selection of better catalysts and additives for
FCC using pilot plant facilities.
Technology development for processing cheaper
and heavier crudes to widen the crude blends
window.
Enhancing propylene recovery in refinery.
Technical support for marketing of FCC spent
catalysts.

(cid:81) High capacity revamps in paraxylene plants.
(cid:81) Adsorbent change in paraxylene plants.

(cid:81)

Innovative method for increasing benzene /olefin
ratio in alkylation at linear alkyl benzene (LAB)
plant.
Enhancing low density polyethylene (LDPE)
plant capacity.

(cid:81) Development of alternate co-catalyst for

(cid:81)

producing high density polyethylene (HDPE).
Enhancing butene recovery in solution
polymerization PE plant.
Linear low density polyethylene (LLDPE) plant
capacity enhancement by innovative methods.
Improve quality of polymer grade butene.
(cid:81) Development of specialty PP grades for foamed

(cid:81)

(cid:81) High throughput facilities for catalyst

development and evaluation.
CFD studies for reliability improvement.

(cid:81)

(cid:81) Molecular characterization of crude and refinery

streams.
Reduction of impurities in propylene stream.

(cid:81)

(cid:81) Advanced catalyst characterization facilities.

(cid:81)

Process for chlorination of polyvinyl chloride
(PVC) to produce chlorinated polyvinyl chloride
(CPVC).

Process for purified terephthalic acid (PTA) from
inexpensive raw material.

(cid:81) Development of reforming catalyst for xylenes

production.

(cid:81) Development of ethyl benzene dealkylation

catalyst for aromatics plant.

(cid:81)

Specialty chemicals from C8 olefin mixture
streams.

(cid:81) Development of transalkylation catalyst for

production of C8 aromatics.

(cid:81) Adsorbent for separation of xylene isomers form

C8 aromatics.

(cid:81) Microbial and photocatalytic processes for

effluent treatment.

(cid:81) Anticoking additives for thermal cracking of

hydrocarbons.

(cid:81) Oxidation catalysis.

(cid:81) Micro-meso porous and nano-materials for

catalysis applications.

(cid:81) Development of super absorbent polymers.

(cid:81)

Functionalized polybutadiene rubber (PBR)
based rubber products.

(cid:81) Development of PP grades for foamed products.

(cid:81)

Inorganic materials from spent catalysts.

Implementation of newly developed polyester
bottle grade co-catalyst for fiber and filament
application.

(cid:81) Development of extrusion blow moulding grade

PET.

(cid:81)

Improvement of productivity/tenacity in super
high tenacity polyester.

(cid:81) Development of ‘New generation spinnerets’ for

(cid:81)

products.
Food grade hexane (FGH) and polymer grade
hexane (PGH).

9 2

New Businesses. New Technologies. New Partnerships.

(cid:81)

Startup of bottle to bottle (B2B), PET recycling
project.

Polyester staple fiber (PSF) based product to
improve the shelf life of fruits and vegetables in
ambient storage conditions.

Increased productivity and color enhancement
through commercialization of new co-catalyst on
continuous bottle-grade resin plants.

Spinning productivity enhancement through
application of in-house developed technology.

Low shrinkage industrial yarn through in-house
hardware modification.

(cid:81) Development of environment friendly ‘silicone

spray system’ for wiping of spinnerets.

(cid:81)

Improved and low cost spin finish development
for polyester products.

(cid:81) Debottlenecking of polyester filament yarn (PFY)

machines for super coarse deniers.

(cid:81)

In-house technology development for anti pill
polyester.

(cid:81) Development of super micro denier polyester

staple fibre.

Information regarding Imported Technology

Product Technology

import
from

Recycled OHL
PET

Engineering
GMBH
PET Recycling
Technologies,
Germany

Year of
import

Status
implementation
/ absorption

2010-11 Successfully
absorbed and
implemented.

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

(f) Activities relating to export, initiatives to
increase exports, Developments of new export
markets for Products and Services and Export
Plan

The Company has continued to maintain focus
and avail of export opportunities based on
economic considerations. During the year, the
Company has exports (FOB value) worth
Rs. 1,46,667 crore (US$ 32,889 million).

(g) Total Foreign exchange earned and used

Total Foreign Exchange Earned

1,40,557.55

Rs. crore

Total savings in Foreign Exchange
through products manufactured by
the Company and deemed Exports
( US$ 12,375.66 Million)
sub total (a+b)

Total Foreign Exchange used

55,189.28

1,95,746.83

1,86,365.41

(cid:81)

Production of dope dyed PSF through recycle
route.

(cid:81) Development of high shrink PSF.

2. Benefits derived as a result of the above efforts

(cid:81)

Increase in propylene yield with new catalyst
based on pilot plant studies.

Reduction in import of low sulphur residue
feedstock in refinery.
Rs. 3 crore on additional sales of FCC spent
catalyst.

Potential benefit of ~ Rs. 167 crore/annum by
high capacity revamps and adsorbent change in
paraxylene plants.

Benefits of ~ Rs. 32 crore/annum from polyester
R&D projects.

Reliance Industries Limited

9 3

Current Year

Previous Year

3,887.53
149.63
3.85

52,193.98
5.45
2,140.50
4.10

776.06
4.17
6.88

54,475.91
4.43
3.04

3,337.19
134.89
4.04

47,052.53
4.93
** 1,997.54
** 4.25

949.72
4.16
5.83

55,353.33
4.39
2.81

22.38

24.24

55,273.35
144.95
26.22

2,256.30
8.56
37.92

4,692,326.01
5,574.51
11,880.06

32,882.75
8.62
2,621.70

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

3,484,015.37

3,361,717.54

199,413.97

831,596.35

Form ‘A’
Form for disclosure of particulars with respect to conservation of energy
Part ‘A’

Power & Fuel Consumption

1. Electricity

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
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
** Restated to reflect current year method

9 4

New Businesses. New Technologies. New Partnerships.

B. Consumption per unit of Production

Product

Electricity
(KWH)

Furnace Oil/
HSD/ HFHSD
(Ltrs)

LSHS
(Kgs)

Gas
(SM3)

Current Previous Current Previous Current Previous Current Previous
Year

Year

1
2
13
-
8
-
-
-
1
81
-
5
1
-
-
-

2
12
21
2
27
-
-
-
-
42
-
40
9
-
-
-

-
-
-
-
1
5
2
2
-
-
-
-
-
16
11
(7)

-
8
-
-
1
3
1
1
-
-
-
-
-
13
5
-

473
88
92
12
306
66
31
17
61
48
74
366
78
506
79
(64)

475
75
81
9
263
52
34
19
55
109
75
315
73
512
89
(54)

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)

4,704
708
357
307
600
454
438
563
302
587
251
209
75
612
2,613
484

4,969
700
357
305
610
458
429
567
309
666
270
208
73
646
2,574
479

For and on behalf of the Board of Directors

Mukesh D. Ambani
Chairman and Managing Director

April 21, 2011

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 2011, as stipulated in Clause
49 of the Listing Agreement of the said Company with
stock exchanges.

The compliance of conditions of Corporate Governance is
the responsibility of the Management. Our examination
has been limited to a review of the procedures and
implementation thereof adopted by the Company for
ensuring compliance with the conditions of the Corporate
Governance as stipulated in the said Clause. It is neither
an audit nor an expression of opinion on the financial
statements of the Company.

In our opinion and to the best of our information and
according to the explanations given to us and based on the
representations made by the Directors and the Management,
we certify that the Company has complied with the
conditions of Corporate Governance as stipulated in Clause
49 of the above-mentioned Listing Agreement.
We state that such compliance is neither an assurance as
to future viability of the Company nor of the efficiency or
effectiveness with which the management has conducted
the affairs of the Company.

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

Chartered Accountants Chartered Accountants

Chartered Accountants

(Registration No. 101720W)

(Registration No. 117366W)

(Registration No. 108355W)

D. Chaturvedi

A. Siddharth

Partner

A. R. Shah

Partner

Membership No.: 5611 Membership No.: 31467

Membership No.:47166

Mumbai

April 21, 2011

Reliance Industries Limited

9 5

Persons constituting group coming within the definition of “group” for the purpose of Regulation 3(1)(e)(i) of the
Securitities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997,
include the following:

S. No. Name of the Entity

1
2
3
4
5
6
7

10
11

12
13
14
15
16
17

18
19
20
21
22

23
24

25
26
27
28
29
30
31
32
33

Aavaran Textiles Private Limited
Anuprabha Commercials Private Limited
Deccan Finvest Private Limited
Ekansha Enterprise Private Limited
Farm Enterprises Limited
Futura Commercials Private Limited
Jagadanand Investments And Trading
Company Private Limited
Jagdishvar Investments And Trading Company
Private Limited
Kankhal Investments And Trading Company
Private Limited
Kardam Commercials Private Limited
Kedareshwar Investments And Trading
Company Private Limited
Krish Commercials Private Limited
Kshitij Commercials Private Limited
Madhuban Merchandise Private Limited
Neutron Enterprises Private Limited
Nitya Priya Commercials Private Limited
Pams Investments And Trading Company
Private Limited
Petroleum Trust
Priyash Commercials Private Limited
Reliance Aromatics and Petrochemicals Limited
Reliance Chemicals Limited
Reliance Consolidated Enterprises Private
Limited
Reliance Consultancy Services Private Limited
Reliance Energy and Project Development
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 Limited
Reliance Utilities and Power Private Limited
Reliance Utilities Private Limited

34
35
36

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

Reliance Welfare Association
Sanatan Textrade Private Limited
Saumya Finance And Leasing Company
Private Limited
Silvassa Hydrocarbons And Investments
Private Limited
Sudarshan Enterprises
Synergy Synthetics Private Limited
Terene Industries Private Limited
Vita Investments and Trading Company
Private Limited
Abhayaprada Enterprises LLP
Adisesh Enterprises LLP
Ajitesh Enterprises LLP
Badri Commercials LLP
Bhuvanesh Enterprises LLP
Chakradev Enterprises LLP
Chakradhar Commercials LLP
Chakresh Enterprises LLP
Chhatrabhuj Enterprises LLP
Devarshi Commercials LLP
Harinarayan Enterprises LLP
Janardan Commercials LLP
Kamalakar Enterprises LLP
Karuna Commercials LLP
Narahari Enterprises LLP
Pavana Enterprises LLP
Pitambar Enterprises LLP
Rishikesh Enterprises LLP
Samarjit Enterprises LLP
Shripal Enterprises LLP
Srichakra Commercials LLP
Svar Enterprises LLP
Taran Enterprises LLP
Tattvam Enterprises LLP
Trilokesh Commercials LLP
Vasuprada Enterprises LLP
Vishatan Enterprises LLP

9 6

New Businesses. New Technologies. New Partnerships.

Financial Statements & Notes

Reliance Industries Limited

9 7

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, 2011, 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.

the Directors as on March 31, 2011 and taken on
record by the Board of Directors, we report that none
of the Directors is disqualified as on March 31, 2011
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, 2011;

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 21, 2011

In our opinion, proper books of account, as required
by law, have been kept by the Company, so far as
appears from our examination of those books;

The Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in
agreement with the books of account;

In our opinion, the Balance Sheet, Profit and Loss
Account and Cash Flow Statement dealt with by this
report are in compliance with the Accounting Standards
referred to in sub–section (3C) of Section 211 of the
Companies Act, 1956.

On the basis of written representations received from

9 8

New Businesses. New Technologies. New Partnerships.

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 two subsidiaries. In
respect of the said loans, the maximum amount
outstanding at any time during the year was Rs.
7,196.72 crore and the year-end balance is Rs. 6,997.07
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 deposit 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, 2011 for a
period of more than six months from the date of
becoming payable. Amounts due and outstanding for

Annexure to Auditors’ Report
Referred to in Paragraph 3 of our report of even date

Reliance Industries Limited

9 9

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

21.

issues during the year.
In our opinion and according to the information and
explanations given to us, no material fraud on or by the
Company has been noticed or reported during the year.

For Chaturvedi & Shah For Deloitte Haskins & Sells 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 21, 2011

a period exceeding 6 months as at March 31, 2011 to
be credited to Investor Education and Protection Fund
of Rs. 7.81 crore, which are held in abeyance due to
pending legal cases, have not been considered.
The disputed statutory dues aggregating Rs. 1,201.74
crore that have not been deposited on account of
disputed matters pending before appropriate
authorities are as under:
Nature of
the Dues

Forum where
dispute is
pending

Amount
(Rs in
crore)

Name of
the Statute

Income Tax
Act, 1961

Income-Tax
(TDS) / Penalties

605.41

Sr.
No

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

Period to
which the
amount
relates
Various years
from 2007-08
to 2009-10

16.91

85.50

34.41

29.61

394.11

0.90

34.89

Various years
from 1995-96
to 2010-11

Various years
from 1991-92
to 2009-10

Various years
from 1993-94
to 2009-10

Various years
from 1997-98
to 2009-10
2007-08

2005-06
and 2007-08

Commissioner of
Income-Tax
(Appeals)

Commissioner of
Central Excise
(Appeals)

Central Excise
& Service Tax
Appellate
Tribunal

Joint/Deputy
Commissioner/
Commissioner
(Appeals)

Sales Tax
Appellate
Tribunal

High Court

Supreme Court

Central Excise
& Service Tax
Appellate
Tribunal

TOTAL

1201.74

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.

12.

11. Based on our audit procedures and according to the
information and explanations given to us, we are of the
opinion that the Company has not defaulted in repayment
of dues to financial institutions, banks and debenture
holders.
In our opinion and according to the explanations given to
us and based on the information available, no loans and
advances have been granted by the Company on the basis
of security by way of pledge of shares, debentures and
other securities.
In our opinion, the Company is not a chit fund / nidhi /
mutual benefit fund / society. Therefore, the provisions of
clause (xiii) of paragraph 4 of the Order are not applicable

13.

100

New Businesses. New Technologies. New Partnerships.

Reliance Industries Limited
Balance Sheet as at 31st March, 2011

SOURCES OF FUNDS

Shareholders’ Funds
Share Capital
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, 2011

(Rs. in crore)

As at
31st March, 2010

3,273.37
1,48,266.95

10,571.21
56,825.47

2,21,251.97
78,545.50
1,42,706.47
12,819.56

29,825.38
17,441.94
27,134.86
199.32
74,601.50
16,940.33
91,541.83

49,657.12
4,563.48
54,220.60

‘A’
‘B’

‘C’
‘D’

‘E’

‘F’

‘G’

‘H’

‘I’

‘N’
‘O’

3,270.37
1,33,900.24

1,51,540.32

1,37,170.61

11,670.50
50,824.19

67,396.68
11,561.80

2,30,498.80

62,494.69
10,926.30

2,10,591.60

2,15,864.71
62,604.82
1,53,259.89
12,138.82

1,55,526.03
37,651.54

1,65,398.71
23,228.62

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

37,321.23

2,30,498.80

21,964.27

2,10,591.60

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 21, 2011

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
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra

Prof. Dipak C. Jain} Directors

Reliance Industries Limited
Profit and Loss Account for the year ended 31st March, 2011

Reliance Industries Limited

101

Schedule

2010-11

(Rs. in crore)

2009-10

INCOME

Turnover
Less: Excise Duty / Service Tax Recovered
Net Turnover
Other Income
Variation in Stocks

EXPENDITURE
Purchases
Manufacturing and Other Expenses
Interest and Finance Charges
Depreciation
Less: Transferred from Revaluation Reserve
[Refer Note 4, Schedule ‘O’]

‘J’
‘K’

‘L’
‘M’

Profit before Tax

Provision for Current 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
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)

[Refer Note 14, Schedule ‘O’]
Significant Accounting Policies
Notes on Accounts

As per our Report of even date

‘N’
‘O’

2,58,651.15
10,481.15

2,00,399.79
7,938.77

2,48,170.00
3,051.71
3,243.05
2,54,464.76

1,464.31
2,11,823.01
2,327.62

13,607.58

2,29,222.52

25,242.24
4,320.44
635.50
20,286.30

4,999.45

25,285.75

18,771.89

6,513.86

62.00

1,92,461.02
2,460.32
3,947.89
1,98,869.23

2,995.82
1,62,832.23
1,997.21

10,496.53

1,78,321.79

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

13,477.01
2,980.48

14,000.00
189.50
2,084.67
346.24

16,241.33
2,633.75

16,000.00
-
2,384.99
386.90

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 21, 2011

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
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra

Prof. Dipak C. Jain} Directors

102

New Businesses. New Technologies. New Partnerships.

Reliance Industries Limited
Cash Flow Statement for the year 2010-11

A: CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit before tax as per Profit and Loss Account

25,242.24

20,547.44

2010-11

(Rs. in crore)

2009-10

Adjusted for:

Net Prior Year Adjustments

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

Deposit Received

Purchase of Investments

Sale of Investments

Movement in Loans and Advances

Interest Income

Dividend Income

Net Cash used in Investing Activities

2.83

33.66

16,241.33

(2,633.75)

(833.37)

(339.47)

(2.40)

(2,620.79)

2,327.62

(6,948.32)

(2,843.76)

9,861.53

1.35

18.38

0.60

13,477.01

(2,980.48)

(1,837.42)

(238.28)

(2.41)

(2,108.41)

1,997.21

12,175.66

37,417.90

8,327.55

28,874.99

(7,379.98)

(12,144.90)

14,223.40

69.45

37,487.35

(2.83)

(4,204.00)

33,280.52

(12,366.12)

241.57

9,004.00

(2,57,540.89)

2,43,474.45

(5,477.46)

2,329.17

2.40

(20,332.88)

(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)

Reliance Industries Limited

103

Cash Flow Statement for the year 2010-11 (Contd.)

C: CASH FLOW FROM FINANCING ACTIVITIES:

Proceeds from Issue of Share Capital

Proceeds from Long Term Borrowings

Repayment of Long Term Borrowings

Short Term Loans

Dividends Paid (including dividend distribution tax)

Interest Paid

Net Cash from / (used in) Financing Activities

Net Increase / (Decrease) in Cash and Cash Equivalents

Opening Balance of Cash and Cash Equivalents

2010-11

(Rs. in crore)

2009-10

192.57

4,920.48

(5,588.64)

6,411.15

(2,430.91)

(2,780.08)

724.57

13,672.21

13,462.65

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

Closing Balance of Cash and Cash Equivalents

27,134.86

13,462.65

Note :
Share application money given to Subsidiary / Associate aggregating to Rs. 17.00 crore (Previous Year Rs. 196.86 crore) have been
converted into investments in Equity / 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 21, 2011

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
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra

Prof. Dipak C. Jain} Directors

104

New Businesses. New Technologies. New Partnerships.

Schedules forming part of the Balance Sheet

SCHEDULE ‘A’

SHARE CAPITAL

Authorised:

500,00,00,000 Equity Shares of Rs. 10 each

(500,00,00,000)

100,00,00,000 Preference Shares of Rs. 10 each

(100,00,00,000)

Issued, Subscribed and Paid up:

As at
31st March, 2011

(Rs. in crore)

As at
31st March, 2010

5,000.00

1,000.00

6,000.00

5,000.00

1,000.00

6,000.00

327,33,74,008 Equity Shares of Rs. 10 each fully

3,273.37

3,270.37

(327,03,74,360) paid up

Less: Calls in arrears - by others
[Rs. 3,652.50 (Previous Year Rs. 3,922.50)]

TOTAL

Notes:

210,85,63,630
(210,85,63,630)

65,25,91,982
(65,25,91,982)

45,04,27,345
(45,04,27,345)

3,273.37

3,270.37

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.

4. The Company has reserved issuance of 13,52,79,244 (Previous year 13,82,78,892) Equity Shares of Rs. 10/- each for offering
to eligible employees of the Company and its subsidiaries under Employees Stock Option Scheme (ESOS). During the year, the
Company has granted 35,200 [Previous year NIL] Options to the eligible employees which includes 16,000 options at a price
of Rs. 995/- per option and 19,200 options at a price of Rs. 929/- per option 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 29,99,648 (Previous Year 5,30,426) equity shares to the eligible employees
of the Company and its Subsidiaries under ESOS.

Reliance Industries Limited

105

Schedules forming part of the Balance Sheet

SCHEDULE ‘B’

RESERVES AND SURPLUS

Revaluation Reserve

As per last Balance Sheet

Less: Transferred to Profit and Loss Account
[Refer Note 4, Schedule 'O']

Less: Utilised on Demerger Adjustments
[Refer Note 9, 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

Less: Premium on redemption / buy back of debentures / Bonds

Less: Capitalised on Issue of Bonus Shares

Less: Calls in arrears - by others

Debenture 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

Profit and Loss Account

TOTAL

As at
31st March, 2011

(Rs. in crore)

As at
31st March, 2010

8,804.27

2,633.75

703.52

50,688.69

189.57

50,878.26

0.02

1,116.57

68,000.00

16,000.00

11,784.75

2,980.48

5,467.00

291.28

8,804.27

291.28

887.94

51,456.76

50.97

51,507.73

80.19

738.85

50,688.69

0.02

50,878.24

50,688.67

927.07

189.50

1,116.57

54,000.00

14,000.00

84,000.00

6,513.86

1,48,266.95

68,000.00

4,999.45

1,33,900.24

* Cumulative amount withdrawn on account of Depreciation on Revaluation is Rs. 2,563.43 crore.

106

New Businesses. New Technologies. New Partnerships.

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, 2011

As at
31st March, 2010

(Rs. in crore)

10,007.82

9,682.82

570.00

312.17

251.22

1,234.67

183.01

563.39

10,571.21

1,417.68

11,670.50

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.110.34 crore are secured by way of first mortgage / charge on certain properties situated at village Mouje Dhanot,

District Kalol in the State of Gujarat and on fixed assets situated at Hoshiarpur Complex of the Company.

e) Rs. 49.43 crore are secured by way of first mortgage / charge on certain properties situated at Ahmedabad in the State of

Gujarat and on fixed assets situated at Nagpur Complex of the Company.

f) Rs. 44.05 crore are secured by way of first mortgage / charge on certain properties situated at Surat in the State of Gujarat

and on fixed assets situated at Allahabad Complex of the Company.

g) Rs. 51.00 crore are secured by way of first mortgage / charge on movable and immovable properties situated at Thane in the

State of Maharashtra and on movable properties situated at Baulpur Complex of the Company.

h) Rs. 500.00 crore are secured by way of first mortgage / charge on the immovable properties situated at Jamnagar Complex

(SEZ unit) of the Company.

Reliance Industries Limited

107

Schedules forming part of the Balance Sheet

2. Debentures referred to in A above are redeemable at par, in one or more installments, on various dates with the earliest redemption
being on 17th June, 2011 and the last being on 7th May, 2020. The debentures are redeemable as follows: 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, Rs. 503.34 crore in financial year 2018-19 and Rs. 500.00 crore in financial year 2020-21.

3. Working capital loans are secured by hypothecation of present and future stock of raw materials, stock-in-process, finished
goods, stores and spares (not relating to plant and machinery), book debts, outstanding monies, receivables, 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

From Banks

C. Deferred Sales Tax Liability

TOTAL

Note:

As at
31st March, 2011

As at
31st March, 2010

(Rs. in crore)

41,093.06

3,976.24

42,373.97

3,899.30

45,069.30

46,273.27

11,740.95

15.22

56,825.47

4,532.61

18.31

50,824.19

Short term loan from banks include commercial paper of Rs. NIL (Previous Year Rs. 500.00 crore). Maximum balance outstanding
at any time during the year being Rs. 4,825.00 crore (Previous Year Rs. 8,500.00 crore).

108

New Businesses. New Technologies. New Partnerships.

Schedules forming part of the Balance Sheet

SCHEDULE ‘E’

FIXED ASSETS

D e s c r i p t i o n

OWN ASSETS :
Leasehold Land
Freehold Land
Buildings
Plant & Machinery
Electrical Installations
Equipments
Furniture & Fixtures
Vehicles
Ships
Aircrafts & Helicopters
S u b - To t a l
LEASED ASSETS :
Plant & Machinery
Ships
S u b - To t a l
INTANGIBLE ASSETS**:
Technical Knowhow fees
Software
Development Rights #
Others
S u b - To t a l
To t a l
Previous Year
Capital Work-in-Progress

As at
01-04-2010

1,556.01
1,136.29
7,366.66
1,30,478.49
3,480.33
5,804.77
477.32
277.80
385.76
68.42
1 , 5 1 , 0 3 1 . 8 5

317.80
9.98
3 2 7 . 7 8

3,021.93
467.31
52,374.38
8,641.46
6 4 , 5 0 5 . 0 8
2 , 1 5 , 8 6 4 . 7 1
1,49,628.70

G r o s s B l o c k

D e p r e c i a t i o n

N e t B l o c k

Additions

Deductions/
Adjustments

As at
3 1 - 0 3 - 2 0 11

For the
Year

U p t o
3 1 - 0 3 - 2 0 11

As at
3 1 - 0 3 - 2 0 11

As at
31-03-2010

(Rs. in crore)

0.66
30.67
273.88
2,195.06
35.11
540.32
44.72
43.48
0.10
114.79
3 , 2 7 8 . 7 9

-
-
-

188.78
18.74
2,084.37
392.46
2 , 6 8 4 . 3 5
5 , 9 6 3 . 1 4
66,507.61

0.01
4.93
47.40
306.16
2.91
58.89
3.54
37.25
-
114.79
5 7 5 . 8 8

1 , 5 5 6 . 6 6
1 , 1 6 2 . 0 3
7 , 5 9 3 . 1 4
1 , 3 2 , 3 6 7 . 3 9
3 , 5 1 2 . 5 3
6 , 2 8 6 . 2 0
5 1 8 . 5 0
2 8 4 . 0 3
3 8 5 . 8 6
6 8 . 4 2
1 , 5 3 , 7 3 4 . 7 6

-
-
-

3 1 7 . 8 0
9 . 9 8
3 2 7 . 7 8

53.64
-
286.83
7,762.86
176.53
302.86
30.70
36.54
14.28
11.85
8 , 6 7 6 . 0 9

39.72
-
3 9 . 7 2

-
-
-
-
-
5 7 5 . 8 8
271.60

3 , 2 1 0 . 7 1
4 8 6 . 0 5
5 4 , 4 5 8 . 7 5
9 , 0 3 3 . 9 2
6 7 , 1 8 9 . 4 3
2 , 2 1 , 2 5 1 . 9 7
2 , 1 5 , 8 6 4 . 7 1

153.27
42.54
7,251.45
78.26
7 , 5 2 5 . 5 2
1 6 , 2 4 1 . 3 3 *
1 3 , 4 7 7 . 0 1

1 8 6 . 6 7
-
2 , 2 9 8 . 1 2
5 4 , 9 6 5 . 2 3
1 , 3 9 2 . 9 0
1 , 2 4 7 . 0 1
3 0 3 . 9 7
1 5 5 . 6 4
2 3 9 . 7 9
2 8 . 1 6
6 0 , 8 1 7 . 4 9

1 5 1 . 3 0
9 . 9 8
1 6 1 . 2 8

1 , 5 6 5 . 1 7
4 11 . 5 3
1 4 , 8 2 7 . 5 4
7 6 2 . 4 9
1 7 , 5 6 6 . 7 3
7 8 , 5 4 5 . 5 0
6 2 , 6 0 4 . 8 2

1 , 3 6 9 . 9 9
1 , 1 6 2 . 0 3
5 , 2 9 5 . 0 2
7 7 , 4 0 2 . 1 6
2 , 119.63
5 , 0 3 9 . 1 9
2 1 4 . 5 3
1 2 8 . 3 9
1 4 6 . 0 7
4 0 . 2 6
9 2 , 9 1 7 . 2 7

1,422.98
1,136.29
5,350.63
83,027.47
2,263.27
4,839.79
201.55
139.52
160.25
48.05
9 8 , 5 8 9 . 8 0

1 6 6 . 5 0
-
1 6 6 . 5 0

206.22
-
2 0 6 . 2 2

1 , 6 4 5 . 5 4
7 4 . 5 2
3 9 , 6 3 1 . 2 1
8 , 2 7 1 . 4 3
4 9 , 6 2 2 . 7 0
1 ,4 2 , 7 0 6 . 4 7
1 ,5 3 , 2 5 9 . 8 9
1 2 , 8 1 9 . 5 6

1,610.03
98.32
44,798.29
7,957.23
5 4 , 4 6 3 . 8 7
1 , 5 3 , 2 5 9 . 8 9

1 2 , 1 3 8 . 8 2

NOTES :
a)
b)

Cost of shares in Co-operative Housing Societies Rs. 1.00 crore (Previous Year Rs. 1.00 crore).

Leasehold Land includes Rs. 203.19 crore (Previous Year Rs. 203.19 crore) in respect of which lease-deeds are pending execution.
Buildings include :
i)
ii) Rs. 4.88 crore (Previous Year Rs. 4.88 crore) in respect of which conveyance is pending.
iii) Rs. 93.20 crore (Previous Year Rs. 93.20 crore) in shares of Companies / Societies with right to hold and use certain area of Buildings.
Intangible assets - Others include :
i)

Jetties amounting to Rs. 646.97 crore (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. 8,386.95 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 :
i)
Rs. 1,886.03 crore (Previous Year Rs. 1,453.20 crore) on account of project development expenditure.
ii) Rs. 665.84 crore (Previous Year Rs. 810.44 crore) on account of cost of construction materials at site.
iii) Rs. 591.30 crore (Previous Year Rs. 453.07 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. 121.03 crore (net loss) [Previous Year Rs. 5,313.81 crore (net gain)] on account
of exchange difference during the year.
Refer Note 4, Schedule 'O'
*
* * Other than internally generated
#

Regrouped from Plant & Machinery.

Reliance Industries Limited

109

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’

INVESTMENTS

A. LONG TERM INVESTMENTS
Government and other Securities - Unquoted

6 Years National Savings Certificate
(Deposited with Sales Tax Department
and other Govt. Authorities )

Trade Investments
In Equity Shares - Unquoted, fully paid up

As at
31st March, 2011

(Rs. in crore)

As at
31st March, 2010

0.02

64,29,20,000 Gujarat Chemicals Port Terminal Company

(12,04,20,000) Limited of Re. 1 each

62,63,125 Indian Vaccines Corporation Limited

(62,63,125) of Rs.10 each
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

19,90,000 Reliance Utilities and Power Private Limited

(19,90,000) Class 'A' shares of Re. 1 each

20,50,000 Reliance Utilities Private Limited

(20,50,000) Class 'A' shares of Re. 1 each

64.29

0.61

10.00

3.93

0.20

0.21

79.24

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

(68,60,064) of Rs. 10 each

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

51,96,90,000 Infotel Broadband Services Limited

519.69

( - ) of Rs. 10 each

1,76,200 Reliance Exploration & Production DMCC of

210.84

(1,76,200) AED 1000 each

33,65,75,000 Reliance Exploration & Production
(-) Mauritius Limited of USD 1 each
2,00,000 Reliance Global Business B.V. of

(2,00,000) Euro 0.01 each

- Reliance Global Management Services Limited

(250,000) of Rs. 10 each

1,554.38

0.01

12.04

0.61

10.00

3.93

0.20

0.21

26.99

2,000.00

2,079.24

2,026.99

16.30

0.02

16.32

210.84

0.01

0.25

110

New Businesses. New Technologies. New Partnerships.

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

As at
31st March, 2011

(Rs. in crore)

As at
31st March, 2010

14,75,04,400 Reliance Industrial Investments and Holdings

147.50

(14,75,04,400) Limited of Rs.10 each

42,450 Reliance Industries (Middle East) DMCC of

46.19

(42,450) AED 1000 each

10,00,00,000 Reliance Jamnagar Infrastructure Limited of

100.00

(10,00,00,000) Rs. 10 each

50,000 Reliance Oil & Gas Mauritius Limited

0.23

(-) of USD 1 each

339,00,00,000 Reliance Retail Limited of Rs. 10 each

3,390.00

(339,00,00,000)

20,20,200 Reliance Strategic Investments Limited of

2.02

(20,20,200) Rs. 10 each

26,91,150 Reliance Ventures Limited of Rs. 10 each

2,351.05

(26,91,150)

55,00,001 RIL (Australia) Pty Limited of Aus $ 1 each

19.74

(50,00,001)

8,341.65

In Equity Shares of Subsidiary Companies - Unquoted, partly paid up

427,80,00,000 Infotel Broadband Services Limited

(-) of Rs. 10 each (Rs. 8.50 each paid up)
610,00,00,000 Reliance Retail Limited of Rs. 10 each
(Rs. 3 each paid up)

(610,00,00,000)

3,636.30

1,830.00

5,466.30

In Preference Shares of Subsidiary Companies - Unquoted, fully paid up

20,62,316 5% Non-Cumulative Compulsorily Convertible 2,562.89

(17,00,316) Preference Shares of Reliance Exploration &

Production DMCC of AED 1000 each
1,46,500 5% Non-Cumulative Compulsorily Convertible

653.32

(-) Preference Shares of Reliance Exploration &

Production Mauritius Limited of USD 1000 each

660,77,27,511 Reliance Global Business B.V. ‘A’ Class Shares

425.80

(499,57,55,311) of Euro 0.01 each

3,54,156 5% Non-Cumulative Compulsorily Convertible

474.15

(3,37,824) Preference Shares of Reliance Industries
(Middle East) DMCC of AED 1000 each

18,50,000 10% Non-Cumulative Optionally Convertible

925.00

(18,50,000) Preference Shares of Reliance Jamnagar

Infrastructure Limited of Rs. 10 each
62,000 Reliance Netherlands B.V. Class 'A'

(62,000) Shares of Euro 1 each
1,37,622 5% Non-Cumulative Compulsorily Convertible
(-) Preference Shares of Reliance Oil & Gas
Mauritius Limited of USD 1000 each

0.38

613.73

4,02,800 9% Non-Cumulative Compulsorily Convertible 112.78

(4,02,800) Preference Shares of Reliance Strategic

Investments Limited of Re. 1 each

147.50

46.19

100.00

3,390.00

2.02

2,351.05

17.46

6,265.32

1,830.00

2,123.23

324.40

454.36

925.00

0.38

112.78

5,768.05

3,940.15

Reliance Industries Limited

111

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

As at
31st March, 2011

(Rs. in crore)

As at
31st March, 2010

In Preference Shares of Subsidiary Company - Unquoted, partly paid up
1,37,000 Reliance Netherlands B.V. Class 'A' Shares of

0.50

(1,37,000) Euro 1 each [Euro 0.60 each paid up
(Euro 0.54 each paid up)]

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

8,83,143 0% Unsecured Convertible Debentures
(8,83,143) of Reliance Industrial Investments and

Holdings Limited of Rs 5,000 each

In Others

- Pass Through Certificates (PTC) issued by

(88)

Indian Residential MBS Trust

In Units of Fixed Maturity Plan - Quoted, fully paid up
(Face Value of Rs. 10 each)

6,00,00,000 Axis Fixed Term Plan

(-) Series 13 - Growth

1,50,00,000 Baroda Pioneer Series 1 - Growth Plan

(-)

19,00,00,000 Birla Sun Life Fixed Term Plan
(-) Series CM - Growth

31,50,00,000 Birla Sun Life Fixed Term Plan
(-) Series CO Growth

12,00,00,000 Birla Sun Life Fixed Term Plan

(-) Series CP Growth

5,00,00,000 Birla Sun Life Fixed Term Plan

(-) Series CQ Growth

13,50,00,000 Birla Sun Life Fixed Term Plan

(-) Series CR Growth

5,00,00,000 Birla Sun Life Fixed Term Plan

(-) Series CS Growth

24,00,00,000 Birla Sun Life Fixed Term Plan

(-) Series CT Growth

10,50,00,000 Birla Sun Life Fixed Term Plan
(-) Series CU Growth

3,00,00,000 Birla Sun Life Fixed Term Plan

(-) Series CV Growth
14,50,00,000 Birla Sun Life Fixed Term Plan
(-) Series CW Growth

0.50

279.90

441.58

721.48

60.00

15.00

190.00

315.00

120.00

50.00

135.00

50.00

240.00

105.00

30.00

145.00

0.45

279.90

441.58

721.48

0.33

112

New Businesses. New Technologies. New Partnerships.

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

As at
31st March, 2011

(Rs. in crore)

As at
31st March, 2010

5,00,00,000 Canara Robeco Series 6-13 Months

(-)

(Plan A) - Growth

6,00,00,000 Canara Robeco Series 6 - 13 Months

(-)

(Plan B) - Growth

30,00,00,000 DSP Blackrock Series 13 - Growth

(-)

50.00

60.00

300.00

15,00,00,000 DSP Blackrock - 12 M Series 14 - Growth

150.00

(-)

10,00,00,000 DSP Blackrock - 12 M Series 15 - Growth

100.00

(-)

6,00,00,000 DSP Blackrock Series 16 - Growth

60.00

(-)

14,00,00,000 DSP Blackrock - 12 M Series 17 - Growth

140.00

(-)

15,00,00,000 DSP Blackrock - 12 M Series 18 - Growth

150.00

(-)

3,50,00,000 Fidelity Series 5 - Plan F - Growth

(-)

3,00,00,000 HDFC 370 D (1) - Growth

(-) Series XVI

4,80,00,000 HDFC 370 D (2) - Growth

(-) Series XVI

6,00,00,000 HDFC 370 D (3) Growth

(-) Series XVI

7,50,00,000 HDFC 370 D (4) - Growth

(-) Series XVI

10,00,00,000 HDFC 370 D (5) - Growth

(-) Series - XVI

10,00,00,000 HSBC Fixed Term Series 79

(-) Growth UCC

13,50,00,000 ICICI Prudential Series 51 - 1 Year

(-) Plan F Cumulative

3,00,00,000 ICICI Prudential Series 54 - 1 Year

(-) Plan A Cumulative

25,00,00,000 ICICI Prudential Series 55 - 1Year

(-) Plan A Cumulative

22,50,00,000 ICICI Prudential Series 55-1 Year

(-) Plan B Cumulative

9,00,00,000 ICICI Prudential Series 55 - 1 Year

(-) Plan - C Cumulative

7,00,00,000 ICICI Prudential Series 55 - 1 Year

(-) Plan D Cumulative

5,00,00,000 ICICI Prudential Series 55 - 1 Year

(-) Plan E Cumulative

35.00

30.00

48.00

60.00

75.00

100.00

135.00

30.00

250.00

225.00

90.00

70.00

50.00

Reliance Industries Limited

113

SCHEDULE ‘F’ (Contd.)

As at
31st March, 2011

(Rs. in crore)

As at
31st March, 2010

20,00,00,000 ICICI Prudential Series 56 - 1 Year

(-) Plan A Cumulative

16,50,00,000 ICICI Prudential Series 56 - 1 Year

(-) Plan B Cumulative

8,00,00,000 ICICI Prudential Series 56 - 1 Year

(-) Plan D Cumulative
2,50,00,000 IDBI - 367 days Series - 1

(-) A Growth

2,50,00,000 IDBI Series - 1 - C - Growth

(-)

2,50,00,000 IDBI 367 D Series - 1 - D Growth

(-)

200.00

165.00

80.00

25.00

15,00,00,000 IDFC Yearly Series 37 - Growth

150.00

(-)

5,00,00,000 IDFC Fixed Maturity Yearly Series 38 Growth

50.00

(-)

7,50,00,000 IDFC Fixed Maturity Yearly
(-) Series 40 Growth

5,50,00,000 IDFC Yearly Series 41 - Growth

(-)

14,00,00,000 IDFC - Yearly Series 42 - Growth

(-)

3,00,00,000 JPMorgan India 367 D

(-) Series 1-Growth Plan

75.00

55.00

140.00

30.00

15,00,00,000 JPMorgan India 400 D Series - 1 Growth

150.00

(-)

20,00,00,000 SBI Debt Fund Series 370 days - 10 Growth

200.00

(-)

25,00,00,000 SBI Debt Fund

(-) Series 370 days - 11 - Growth

15,00,00,000 SBI Debt Fund

(-) Series - 370 days - 12 - Growth

12,50,00,000 SBI Debt Fund Series 9 - Growth

(-)

2,50,00,000 Sundaram Fixed Term Plan

(-) BA 366 days Growth

4,00,00,000 Tata Series 31 Scheme B - Growth

(-)

2,40,00,000 Tata Series 31 Scheme C - Growth

(-)

15,00,00,000 UTI Fixed Term Income Fund

(-) Series IX - 1 Growth Plan

250.00

150.00

125.00

25.00

40.00

24.00

150.00

5,897.00

Total (A)

26,194.98
28,290.56

12,757.73
14,801.06

114

New Businesses. New Technologies. New Partnerships.

SCHEDULE ‘F’ (Contd.)

B. CURRENT INVESTMENTS

Other Investments

As at
31st March, 2011

(Rs. in crore)

As at
31st March, 2010

In Government Securities - Quoted

7.59% GOI 2016

In Certificate of Deposit with
Scheduled Banks -Quoted

4.92

5.04

4,632.27

3,973.27

In Public Sector Undertakings / Public Financial
Institutions & Corporate Bonds - Quoted

1,000 CitiFinancial Consumer Finance India Limited

98.31

(-)

2,250 EXIM Bank of India

(1,250)

15,187 Housing Development Finance

(7,537) Corporation Limited

5,000 Infrastructure Development

(3,600) Finance Company Limited

219.48

1,531.17

483.32

1,450 Indian Railway Finance Corporation Limited

138.49

(2,050)

12,500 LIC Housing Finance Limited

1,217.86

(8,500)

- National Housing Bank

(1,250)

5,500 Power Finance Corporation Limited

(3,400)

920 Power Grid Corporation of India Limited
(-)

551.45

112.34

1,350 Rural Electrification Corporation Limited

131.43

(8,950)

1,500 Steel Authority of India Limited

(-)

In Commercial Paper - Quoted

Housing Development Finance
Corporation Limited

146.45

4,630.30

93.49

9,360.98

125.00

774.43

346.52

206.16

850.03

124.48

348.11

895.45

3,670.18

7,648.49

Reliance Industries Limited

115

SCHEDULE ‘F’ (Contd.)

As at
31st March, 2011

(Rs. in crore)

As at
31st March, 2010

In Units - Unquoted

- HDFC Cash Management Fund - Treasury Advantage

(4,95,83,326) Plan - Wholesale - Growth of Rs. 10 each

- HDFC Liquid Fund - Premium Plan - Growth

(13,00,69,316) of Rs. 10 each

ICICI Prudential Flexible Income

(58,39,951) Plan Premium - Growth of Rs. 100 each

ICICI Prudential Institutional Liquid

(1,75,66,322) Plan - Super Institutional Growth of Rs. 100 each

- LIC Mutual Fund Floating Rate Fund - Short

(6,61,43,253) Term Plan - Growth Plan of Rs. 10 each

100.07

240.00

100.00

239.00

100.00

779.07

Total (B)

Total (A+B)

9,360.98

37,651.54

8,427.56

23,228.62

AGGREGATE VALUE OF

Quoted Investments
Unquoted Investments

As at
31st March, 2011

As at
31st March, 2010

(Rs. in crore)

Book Value Market Value
15,839.31
-

15,274.28
22,377.26

Book Value Market Value
8,248.22
-

7,664.79
15,563.83

116

New Businesses. New Technologies. New Partnerships.

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)

Investments purchased and sold during the year

Mutual Fund Units
Axis Liquid Fund - Institutional Growth
Axis Treasury Advantage Fund - Institutional Growth
Birla Sunlife Cash Plus - Institutional Prem. - Growth
Birla Sun Life Savings Fund - Institutional Growth
Baroda Pioneer Liquid Fund - Institutional Growth Plan
Canara Robeco Liquid Super - Institutional Growth Fund
DSP BlackRock Floating Rate Fund - Institutional Plan - Growth
DSP BlackRock Liquidity Fund - Institutional Plan - Growth
DWS Insta Cash Plus Fund - Super Institutional Plan Growth
HDFC Liquid Fund - Premium Plan - Growth
HDFC Cash Management Fund -Treasury Advantage Plan - Wholesale - Growth
HDFC High Interest Fund -Short Term Plan - Growth
ICICI Prudential Flexible Income Plan Premium - Growth
ICICI Prudential Institutional Liquid Plan - Super Institutional Growth
ICICI Prudential Ultra Short Term Plan Super Premium Growth
IDBI Liquid Fund - Growth
IDFC Cash Fund - Super Institutional Plan C - Growth
IDFC Money Manager Fund - Treasury Plan - Super Inst Plan C - Growth
JPMorgan India Liquid Fund - Super Institutional - Growth Plan
JPMorgan India Treasury Fund - Super Institutional - Growth Plan
LIC Mutual Fund Liquid Fund - Growth Plan
LIC Mutual Fund Floating Rate Fund - Short Term Plan - 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 Account Super Institutional Plan - Growth
UTI Liquid Cash Plan Institutional - Growth Option
UTI Treasury Advantage Fund - Institutional Plan - Growth Option
UTI Money Market Mutual Fund - Institutional Growth Plan
UTI - Floating Rate Fund - Short Term Plan - Institutional Growth Option

Government Securities
7.27% GOI 2013
7.32% GOI 2014
7.17% GOI 2015
7.38% GOI 2015
7.02% GOI 2016
7.99% GOI 2017
7.80% GOI 2020
8.08% GOI 2022
8.13% GOI 2022

Face Value
(Rs.)

Nos.
(in lakhs)

Cost
(Rs. in crore)

1,000
1,000
10
10
1,000
10
1,000
1,000
10
10
10
10
100
100
10
10
10
10
10
10
10
10
10
10
10
10
10
1,000
1,000
1,000
1,000
1,000
1,000

184.15
29.14
82,173.79
1,131.84
13.44
5,766.29
13.06
291.12
33,021.46
214,963.18
65,130.57
1,074.79
7,184.28
35,895.84
1,924.28
2,903.14
38,621.91
906.25
29,623.73
411.49
45,072.23
10,245.74
31,820.36
7,494.13
52,420.87
7,759.72
726.47
248.70
551.62
270.10
57.96
733.60
48.05

1,950.06
300.09
12,594.00
200.03
150.00
680.00
175.03
4,017.01
4,958.50
40,585.00
13,251.93
200.00
12,403.62
50,059.28
200.02
425.04
4,535.00
100.01
3,667.00
50.00
7,783.28
1,566.84
6,669.40
1,125.00
7,949.00
940.10
100.02
4,428.34
7,895.00
4,238.01
722.11
7,929.00
500.06

Face Value
(Rs.)

Nos.
(in lakhs)

Cost
(Rs. in crore)

100
100
100
100
100
100
100
100
100

275
280
2,220
220
420
1,560
3,685
400
950

280.79
282.56
2,176.28
217.06
408.53
1,562.76
3,704.31
400.56
954.58

Schedules forming part of the Balance Sheet

SCHEDULE ‘F’ (Contd.)
Investments purchased and sold during the year

Corporate Bonds
5.90% EXIM Bank of India 2013
6.23% Housing Development Finance Corporation Limited 2011
6.84% Housing Development Finance Corporation Limited 2011
0.00% Housing Development Finance Corporation Limited 2012
0.00% Housing Development Finance Corporation Limited 2012
9.50% Housing Development Finance Corporation Limited 2012
9.80% Housing Development Finance Corporation Limited 2012
7.95% Housing Development Finance Corporation Limited 2014
9.20% Housing Development Finance Corporation Limited 2016
9.90% Housing Development Finance Corporation Limited 2018
8.45% Indian Railway Finance Corporation Limited 2018
8.60% Indian Railway Finance Corporation Limited 2019
0.00% Infrastructure Development Finance Company Limited 2011
0.00% Infrastructure Development Finance Company Limited 2011
8.35% Infrastructure Development Finance Company Limited 2011
8.88% Infrastructure Development Finance Company Limited 2011
0.00% National Bank for Agricultural and Rural Development 2019
6.21% National Housing Bank 2013
0.00% National Housing Bank 2019
8.40% ONGC Videsh Limited 2014
8.70% Power Finance Corporation Limited 2015
8.95% Power Finance Corporation Limited 2015
8.70% Power Finance Corporation Limited 2020
8.90% Power Finance Corporation Limited 2020
8.95% Power Finance Corporation Limited 2020
8.84% Power Grid Corporation of India Limited 2016
8.64% Power Grid Corporation of India Limited 2017
8.80% Power Grid Corporation of India Limited 2017
8.84% Power Grid Corporation of India Limited 2017
8.64% Power Grid Corporation of India Limited 2018
8.84% Power Grid Corporation of India Limited 2018
8.64% Power Grid Corporation of India Limited 2019
8.64% Power Grid Corporation of India Limited 2020
8.64% Power Grid Corporation of India Limited 2021
8.64% Power Grid Corporation of India Limited 2022
8.64% Power Grid Corporation of India Limited 2023
8.64% Power Grid Corporation of India Limited 2024
8.64% Power Grid Corporation of India Limited 2025
11.75% Rural Electrification Corporation Limited 2011
7.90% Rural Electrification Corporation Limited 2012
7.60% Rural Electrification Corporation Limited 2013
8.80% Rural Electrification Corporation Limited 2019
8.80% Rural Electrification Corporation Limited 2020
9.50% State Bank of India 2025
8.72% Steel Authority of India Limited 2020
8.75% Steel Authority of India Limited 2020

Reliance Industries Limited

117

Face Value
(Rs.)

Nos.

Cost
(Rs. in crore)

1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1250000
1250000
1250000
1250000
1250000
1250000
1250000
1250000
1250000
1250000
1250000
1250000
1250000
1000000
1000000
1000000
1000000
1000000
1000000
1000000
1000000

2500
2000
250
750
750
1000
250
250
50
50
250
500
450
1150
1300
300
200
1250
250
1450
2950
100
2750
50
750
280
220
120
80
220
80
220
220
140
140
140
140
140
250
200
750
350
500
105
1450
50

250.00
199.24
24.85
76.40
75.92
99.49
24.99
25.00
5.16
5.33
24.77
50.09
42.00
110.57
129.33
30.28
10.33
124.71
12.65
145.80
300.20
10.10
273.84
5.01
75.39
35.44
27.57
15.06
10.09
27.58
10.07
27.59
27.59
17.50
17.50
17.50
17.50
17.50
25.27
20.41
75.45
34.97
50.00
10.50
145.00
5.00

118

New Businesses. New Technologies. New Partnerships.

Schedules forming part of the Balance Sheet

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

OTHER CURRENT ASSETS

Interest Accrued on Investments

TOTAL

As at
31st March, 2011

(Rs. in crore)

As at
31st March, 2010

2,848.92
14,576.50
4,909.10
7,490.86

14.36
17,427.58

2,801.31
15,023.40
2,878.85
6,278.06

29,825.38

26,981.62

12.91
11,647.30

17,441.94

11,660.21

14.36

11.84

586.68
3.53

26,530.29

349.16
1.36

13,100.29

27,134.86

199.32

74,601.50

13,462.65

91.40

52,195.88

Includes Rs. 3,423.35 crore (Previous Year Rs. 2,978.18 crore) receivable from Subsidiaries.

Includes balances with non scheduled banks as follows:

Bank of China
Citi, China, Guangzhou
Citi, London
Hongkong and Shanghai Banking Corporation, New York
Hongkong and Shanghai Banking Corporation, Turkey
Hongkong and Shanghai Banking Corporation, Vietnam
Royal Bank of Scotland, Jakarta
Royal Bank of Scotland, Jebel Ali
Royal Bank of Scotland, Shanghai
Stadtsparkasse Koln, Frankfurt

As at 31st

As at 31st
March, 2011 March, 2010

(Rs. in crore)
Maximum Balance at
any time during the year

0.07
-
-
2.98
0.07
0.04
0.24
0.05
-
0.08

-
0.05
0.05
0.76
0.05
0.03
0.27
0.04
-
0.11

2010-11
0.09
0.05
0.05
14.76
0.24
0.16
0.53
0.40
0.09
0.31

2009-10
0.07
0.07
0.64
3.59
0.20
0.09
0.27
0.22
0.35
0.19

Reliance Industries Limited

119

Schedules forming part of the Balance Sheet

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*

5,376.88

Less: Considered Doubtful

69.88

Deposits*

Balance with Customs, Central Excise Authorities, etc.

TOTAL

As at
31st March, 2011

(Rs. in crore)
As at
31st March, 2010

7,088.73

1,228.56

5,307.00

2,092.74

1,223.30

16,940.33

2,576.21

69.88

2,936.02

1,267.49

2,506.33

2,240.53

1,232.85

10,183.22

Advances recoverable includes Rs. 2,389.49 crore (Previous Year Rs. 602.32 crore) and Deposits include Rs. 299.00 crore
(Previous Year Rs. 351.97 crore) recoverable from Subsidiaries.

SCHEDULE ‘I’

As at
31st March, 2011

(Rs. in crore)

As at
31st March, 2010

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 Dividend
Tax on Dividend

8.17
48,837.95
206.49
110.87
1.38
0.08
1.36
490.82

64.08
245.55
1,481.96
2,384.99
386.90

8.25
36,047.35
223.03
98.61
1.39
0.19
1.36
469.22

49,657.12

36,849.40

50.88
329.21
754.43
2,084.67
346.24

TOTAL

4,563.48
54,220.60

3,565.43
40,414.83

120

New Businesses. New Technologies. New Partnerships.

Schedules forming part of the Balance Sheet

SCHEDULE ‘I’ (Contd.)

@ 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, 2011
-
-
-
-
-
-
-

(Rs. in crore)
As at
31st March, 2010
-
-
-
-
-
-
-

Includes Rs. 339.01 crore (Previous Year Rs. 170.08 crore) payable to Subsidiaries and Rs. 2,983.89 crore (Previous Year
Rs. 8,817.49 crore) for capital expenditure.
Includes advance application money received against Employees Stock Options Scheme (ESOS) pending allotment Rs. 8.53
crore (Previous Year Rs. NIL).
These figures do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund except
Rs. 7.81 crore (Previous Year Rs 7.02 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, 2010 of Rs. 323.88 crore as per the estimated pattern of despatches. During the year,
Rs. 323.88 crore was utilised for clearance of goods. Provision recognised under this class for the year is Rs. 345.28 crore which
is outstanding as on 31st March, 2011. Actual outflow is expected in the next financial year. The Company had recognised
customs duty liability on goods imported under advance license of Rs. 429.55 crore as at 31st March, 2010. During the year,
further provision of Rs. 3,148.54 crore was made and sum of Rs. 2,443.09 crore was reversed on fulfillment of export obligation.
Closing balance on this account as at 31st March, 2011 is Rs. 1,135.00 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
SCHEDULE ‘J’

2010-11

(Rs. in crore)

2009-10

OTHER INCOME

Dividend:

From Long Term Investments

2.40

2.41

Interest:

From Current Investments
From Others
[Tax Deducted at Source Rs. 215.35 crore
(Previous Year Rs. 222.14 crore)]

Premium on Investments in Preference Shares
Profit on Sale of Current Investments (net)*
Profit on Sale of Fixed Assets
Miscellaneous Income

TOTAL

481.91
2,138.88

169.92
1,938.26

2,620.79

-
339.47
24.26
64.79

3,051.71

2,108.18

0.23
238.28
28.68
82.54

2,460.32

* Net of diminution in value of investments Rs. 90.48 crore (Previous Year Rs. 0.15 crore).

Reliance Industries Limited

121

Schedules forming part of the Profit and Loss Account

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

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

2010-11

(Rs. in crore)

2009-10

7,490.86
4,909.10

6,278.06
2,878.85

12,399.96

9,156.91

3,015.13
2,193.89

9,156.91

3,243.05

5,209.02

3,947.89

2010-11

(Rs. in crore)

2009-10

1,93,233.88

1,47,919.21

3,378.02
2,255.07
631.72
29.17

2,283.72
33.94
0.68
(367.40)

2,179.21
243.31

2,773.98
2,706.71
378.74
25.22

1,774.93
369.15
2.74
(676.42)

8,244.92

7,355.05

1,978.15
148.01

201.65

224.22

2,624.17

2,350.38

122

New Businesses. New Technologies. New Partnerships.

Schedules forming part of the Profit and Loss Account

SCHEDULE ‘L’ (Contd.)

2010-11

(Rs. in crore)

2009-10

SALES AND DISTRIBUTION EXPENSES

Samples, Sales Promotion and Advertisement Expenses
Brokerage, Discount and Commission
Warehousing and Distribution Expenses
Sales Tax / VAT / Service Tax

118.02
283.71
4,195.35
756.02

50.49
228.02
3,280.49
564.77

5,353.10

4,123.77

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

528.57
102.79
54.27
243.16
74.13
14.12
665.53
57.92
500.52
-
-
13.20
142.99

486.58
105.15
40.39
256.22
59.72
12.82
524.82
29.28
651.81
108.38
(90.00)
13.20
103.37

Less : Transferred to Projects Development Expenditure (Net)

TOTAL

2,397.20

2,11,853.27
30.26

2,11,823.01

2,301.74

1,64,050.15
1,217.92

1,62,832.23

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.

SCHEDULE ‘M’

INTEREST AND FINANCE CHARGES

Debentures

Fixed Loans

Finance charges on Leased Assets

Others

TOTAL

2010-11

1,082.27

541.46

19.53

684.36

2,327.62

(Rs. in crore)

2009-10

946.36

543.38

21.53

485.94

1,997.21

Reliance Industries Limited

123

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 recoverable taxes 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 net of recoverable taxes less accumulated amortisation / depletion.
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 intangible assets are capitalised.

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; premium on leasehold land is amortised over

124

New Businesses. New Technologies. New Partnerships.

SCHEDULE ‘N’ (Contd.)

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; on intangible assets - development rights, depletion 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 of India’s share in the reserves)
considering the estimated future expenditure on developing the reserves as per technical evaluation; 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.

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 including manufacturing
overheads 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.

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.

Reliance Industries Limited

125

SCHEDULE ‘N’ (Contd.)

L. Excise Duty / Service Tax and Sales Tax / Value Added Tax

Excise duty / Service tax is accounted on the basis of both, payments made in respect of goods cleared / services
provided 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 and gains / losses on settlement 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.

126

New Businesses. New Technologies. New Partnerships.

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 recognised 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 Superannuation Fund

Employer’s Contribution to Pension Scheme

2010-11

2009-10

63.89

12.98

14.80

53.06

11.70

15.00

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
Current Service Cost
Interest Cost
Actuarial (gain) / loss
Benefits paid
Defined Benefit obligation at year end

Gratuity
(Funded)

2010-11
300.56
36.04
24.08
39.64
(17.34)
382.98

(Rs. in crore)

Leave Encashment
(Unfunded)

2009-10
246.98
22.15
17.97
28.19
(14.73)
300.56

2010-11
297.41
16.14
16.57
41.56
(193.01)
178.67

2009-10
476.77
5.27
28.13
(9.35)
(203.41)
297.41

Reliance Industries Limited

127

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
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

2010-11
268.88
23.52
2.18
49.89
(17.34)
327.13
25.70

(Rs. in crore)
Leave Encashment
(Unfunded)
As at 31st March

Gratuity
(Funded)
As at 31st March

Fair value of Plan assets
Present value of obligation
Amount recognised in Balance Sheet

2011

327.13
382.98
55.85

2010

268.88
300.56
31.68

2011

-
178.67
178.67

2010

-
297.41
297.41

IV) Expenses recognised during the year (Under the head “Payments to and Provisions for Employees”-

Refer Schedule ‘L’)

Current Service Cost
Interest Cost
Expected return on Plan assets
Actuarial (gain) / loss
Net Cost

Investment Details :

Gratuity
(Funded)

(Rs. in crore)
Leave Encashment
(Unfunded)

2010-11

2009-10

2010-11

2009-10

36.04
24.08
(23.52)
37.46
74.06

22.15
17.97
(18.77)
22.47
43.82

16.14
16.57
-
41.56
74.27

5.27
28.13
-
(9.35)
24.05

GOI Securities
Public Securities
State Government Securities
Private Sector Securities [includes Equity Shares of Reliance Industries
Limited, of Rs. NIL (Previous Year Rs. 0.15 crore)]
Insurance Policies
Others (including bank balances)

% Invested

As at 31st

As at 31st
March, 2011 March, 2010

9.15
9.51
4.04

-
77.12
0.18

100.00

11.03
12.76
6.38

0.05
69.45
0.33

100.00

128

New Businesses. New Technologies. New Partnerships.

SCHEDULE ‘O’ (Contd.)

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)

2009-10
1994-96
(Ultimate)
7.5%
-
6%
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. 79.95 crore (Previous Year Rs. 70.98 crore) and sales during trial run

2010-11
1994-96
(Ultimate)
8,25%
-
6 %

2010-11
1994-96
(Ultimate)
8.25%
8.25%
6 %

2009-10
1994-96
(Ultimate)
7.5%
7.5%
6%

period of Rs. NIL (Previous Year Rs. 143.26 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. 2,633.75 crore (Previous Year Rs. 2,980.48 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 one of the units during the
year. A sum of Rs. 2.58 crore (Previous Year Rs. 19.56 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

7. Managerial Remuneration:

(Included under the head “Payments to and Provisions for Employees”)
(a) Remuneration to Managing Director / Executive Directors

(i) Salaries
(ii) Perquisites and allowances
(iii) Commission
(iv) Leave salary / Encashment
(v) Contribution to Provident fund and Superannuation fund
(vi) Provision for Gratuity

(b) Commission to Non-Executive Directors

2010-11
6.45
0.50
6.95
-
13.90
0.22

(Rs. in crore)
2009-10
5.70
0.50
6.38
0.02
12.60
0.22

(Rs. in crore)

2010-11

2009-10

7.54
5.52
25.88
0.55
0.95
0.23
40.67
1.68

7.42
5.57
19.94
0.55
1.06
6.36
40.90
1.75

Reliance Industries Limited

129

SCHEDULE ‘O’ (Contd.)

Computation of net profit in accordance with Section 349 of the Companies Act, 1956:

Profit before Taxation

Add: Depreciation as per accounts

Loss on sale / discarding of Fixed Assets

Investment 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 Current Investments (net)

2010-11

25,242.24

13,607.58

57.92

35.81

38,943.55

16,241.33

24.26

339.47

(Rs. in crore)

2009-10

20,547.44

10,496.53

29.28

18.38

36.03

31,127.66

13,477.01

0.23

28.68

238.28

Net Profit for the year

22,338.49

17,383.46

Salaries, Perquisites and Commission to Managing Director /
Executive Directors calculated @ 0.40% of the Net profit.
(Previous Year @ 0.40%)

Less: Salaries & Perquisites of the Managing Director / Executive Directors

eligible for commission

Commission eligible

Commission Restricted to

89.35

9.92

79.43

25.88

69.53

16.09

53.44

19.94

directors.

8. A sum of Rs. 2.83 crore (net debit) [Previous Year Rs. 1.35 crore (net debit)] is included under establishment expenses

representing Net Prior Period Items.

9. Pursuant to the scheme of arrangement to demerge certain undertakings which was approved by the Hon'ble High
Court of Bombay on 9th December, 2005, the Company had demerged assets and liabilities relatable to those
demerged undertakings on the close of business on 31st August 2005. There have been certain claims relating to the
above demerger / demerged undertakings which have been settled by the Company during the year and an additional
amount of Rs. 703.52 crore has been appropriated against Revaluation Reserve.

10. Expenditure on account of Premium on forward exchange contracts to be recognised in the Profit and Loss account

of subsequent accounting period aggregates Rs. 55.37 crore (Previous Year Rs. 81.66 crore).

130

New Businesses. New Technologies. New Partnerships.

SCHEDULE ‘O’ (Contd.)

11. (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, 2011 amount to
Rs. 4.27 crore (Previous Year Rs. 4.87 crore).

Within one year
Later than one year and not later than five years
Later than five years
Total

(Rs. in crore)

2010-11

2009-10

0.58
2.34
1.35
4.27

0.58
2.34
1.95
4.87

(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, 2011 are as follows:

Total Minimum
Lease Payments
outstanding
As at 31st March
2010

2011

36.51

37.30

Within one year

Later than one year and not later than five years 145.71

148.73

Later than five years

Total

109.77

148.71

291.99

334.74

(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.

12. (a) (i) Assets given on finance lease on or after 1st April, 2001

Future interest
on Outstanding
Lease Payments

2010-11

2009-10

(Rs. in crore)

Present value of
Minimum
Lease Payments
As at 31st March
2010

2011

17.95

52.94

14.61

85.50

20.06

63.36

28.28

18.56

92.77

17.24

85.37

95.16

120.43

111.70

206.49

223.04

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

2010-11 2009-10 2010-11 2009-10 2010-11 2009-10 2010-11 2009-10
-
-

48.47
4.42

27.72
3.22

20.75
1.20

48.47
4.42

30.75
5.78

79.22
10.20

-
-

44.05

69.02

24.50

24.97

19.55

44.05

(ii) General Description of Lease terms:

• Lease rentals are charged on the basis of agreed rate of interest.

• Assets are given on lease for a period of five years.

(b) Miscellaneous income includes income from finance lease of Rs. 5.78 crore (Previous Year Rs. 8.14 crore).

SCHEDULE ‘O’ (Contd.)

13. 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

14. EARNINGS PER SHARE (EPS)

Reliance Industries Limited

131

As at 31st
March, 2011

(Rs. in crore)
As at 31st
March, 2010

11,742.75

11,169.25

180.95
11,561.80

242.95
10,926.30

2010-11

2009-10

i) Net Profit after tax as per Profit and Loss Account attributable

to Equity Shareholders (Rs. in crore)

20,286.30

16,235.67

ii) Weighted Average number of equity shares used as denominator for

calculating EPS

iii) Basic and Diluted Earnings per share (Rs.)

iv) Face Value per equity share (Rs.)

* Adjusted for issue of bonus shares in 2009-10 in the ratio of 1:1.

3,27,18,51,032

3,26,98,62,848*

62.00

10.00

49.65

10.00

15. PROJECT DEVELOPMENT EXPENDITURE

(in respect of Projects up to 31st March, 2011, included under Capital work-in-progress)

Opening Balance

Add: Transferred from Profit and Loss Account

2010-11

1,453.20

(Rs. in crore)

2009-10

17,095.19

Schedule – L
Interest Capitalised

30.26
474.07

1,217.92
983.81

Less: Project Development Expenses Capitalised

during the year

Closing Balance

504.33
1,957.53

71.50
1,886.03

2,201.73
19,296.92

17,843.72
1,453.20

132

New Businesses. New Technologies. New Partnerships.

SCHEDULE ‘O’ (Contd.)

16. RELATED PARTY DISCLOSURES :

As per Accounting Standard 18, the disclosures of transactions with the related parties as defined in the Accounting
Standard are given below:
(i) List of related parties where control exists and related parties with whom transactions have taken place and

relationships:

Relationship

Subsidiary Companies

Sr. No. Name of the Related Party
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Reliance Industrial Investments and Holdings Limited
Reliance Ventures Limited
Reliance Strategic Investments Limited
Reliance Industries (Middle East) DMCC
Reliance Jamnagar Infrastructure Limited
Reliance Retail Limited
Reliance 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
(amalgamated with Reliance Corporate IT Park Limited w.e.f. 01.04.2010)
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 (amalgamated with Gapco Tanzania Limited
w.e.f. 01.08.2010)
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
Reliance Lifestyle Holdings Limited
Reliance Universal Ventures Limited

17
18
19
20
21
22
23
24
25
26
27

28
29
30
31
32
33
34
35
36
37

Reliance Industries Limited

133

SCHEDULE ‘O’ (Contd.)

Sr. No. Name of the Related Party

Relationship

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
75
76
77
78
79
80
81

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
Wave Land Developers Limited
Reliance-Grand Optical Private Limited
Reliance Universal Commercial Limited
Reliance Petroinvestments Limited
Reliance Global Commercial 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 Limited
Reliance Energy and Project Development Limited
Reliance Chemicals Limited
Reliance Universal Enterprises Limited
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

Subsidiary Companies

134

New Businesses. New Technologies. New Partnerships.

SCHEDULE ‘O’ (Contd.)

Sr. No. Name of the Related Party

Relationship

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
116
117
118
119
120
121
122
123

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) Limited
Reliance Infosolutions Private Limited
(amalgamated with Reliance Corporate IT Park Limited w.e.f. 01.04.2010)
Reliance Corporate Center Limited
Reliance Convention and Exhibition Center Limited
Central Park Enterprises DMCC
Reliance International B. V.
Reliance Corporate Services Limited
Reliance Oil and Gas Mauritius Limited
Reliance Exploration and Production Mauritius Limited
Reliance Holding Cooperatief U.A.
Indiawin Sports Private Limited
Reliance Holding Netherlands B. V.
Reliance International Gas B. V.
Reliance Exploration and Production B. V.
Reliance Exploration and Production Limited
Reliance Holding USA Inc.
Reliance Marcellus LLC
Infotel Broadband Services Limited
Reliance Strategic (Mauritius) Limited
Reliance Eagleford Midstream LLC
Reliance Eagleford Upstream LLC
Reliance Eagleford Upstream GP LLC
Reliance Eagleford Upstream Holding LP
Mark Project Services Private Limited
Reliance Energy Generation and Distribution Limited
Reliance Marcellus II LLC
Reliance Security Solutions Limited
Reliance Industries Investment and Holding Limited
Reliance Office Solutions Private Limited
Reliance Style Fashion India Limited
GenNext Innovation Ventures Private Limited
GenNext Ventures Private Limited
Reliance Home Products Limited
Infotel Telecom Limited
Reliance Styles India Private Limited
Rancore Technologies Private Limited

Subsidiary Companies

SCHEDULE ‘O’ (Contd.)

Sr. No. Name of the Related Party
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142

Reliance Industries Limited

135

Relationship

Associates

Key Managerial Personnel

Enterprises over which
Key Managerial Personnel
are able to exercise
significant influence

(ii) Transactions during the year with related parties :

Sr. Nature of Transactions
No.

(Excluding reimbursements)

Subsidiaries Associates Key Managerial Others

(Rs. in crore)
Total

Personnel

Purchase of Fixed Assets

Purchase / Subscription of Investments

Sale / Redemption of Investments

Net Loans and advances given / (returned)

Turnover

Other Income

Purchases / Material Consumed

Electric Power, Fuel and Water

-
238.54

7,540.83
2,415.80

0.25
6,326.92

5,399.56
(2,812.43)

16,993.80
9,124.51

1,037.38
450.45

505.42
429.63

-
-

52.25
24.51

-
155.63

18.90
(8.00)

218.77
212.72

5.84
6.45

1.24
45.00

917.26
960.30

-
-

-
238.54

7,593.08
2,440.31

0.25
6,482.55

5,418.46
(2,820.43)

17,152.57
9,337.23

1,043.22
456.90

506.66
474.63

917.26
960.30

136

New Businesses. New Technologies. New Partnerships.

SCHEDULE ‘O’ (Contd.)

Sr. Nature of Transactions
No.

(Excluding reimbursements)

Hire Charges

10. Manpower Deputation Charges

11.

Payment to Key Managerial Personnel

12.

Sales and Distribution Expenses

13. Rent

14.

Professional Fees

15. General Expenses

16. Donations

17.

Interest Expenses

18.

Investment written off (net)

Balance as at 31st March, 2011

19.

Investments

20.

Sundry Debtors

21. Loans & Advances

22.

Sundry Creditors

23.

Financial Guarantees

24.

Performance Guarantees

Subsidiaries Associates Key Managerial Others

Total

(Rs. in crore)

Personnel

789.62
559.00

21.48
85.93

-
-

40.67
40.90

-
-

40.79
40.69

-
-

50.42
72.13

-
0.13

111.50
91.75

42.82
19.04

-
-

19.48
21.45

2,571.61
2,532.84

-
-

17.18
21.32

9.00
9.87

-
-

-
18.38

20,297.98
12,757.40

2,085.56
2,033.31

3,423.35
2,978.18

9,777.22
3,890.31

339.01
170.08

20,921.87
1,588.85

120.50
-

13.67
20.01

1,431.83
1,427.19

331.17
414.80

715.72
563.47

7.03
7.03

-
-

26.26
18.97

-
-

789.62
559.00

62.27
126.62

40.67
40.90

2,622.03
2,604.97

-
0.13

128.68
113.07

51.82
28.91

26.26
18.97

19.48
21.45

-
18.38

22,383.54
14,790.71

3,437.02
2,998.19

11,209.05
5,317.50

670.18
584.88

21,637.59
2,152.32

127.53
7.03

-
-

Figures in italics represent Previous Year’s amounts.

Note :
1.
2. The Company has issued guarantees against future cash calls to be made by JV Partners of its wholly owned
subsidiary Reliance Holding USA, Inc amounting to Rs. 9,409.55 crore. During the year, cash calls to the extent of
Rs. 1,356.69 crore have been made by the JV Partners and settled by the subsidiary.

Reliance Industries Limited

137

SCHEDULE ‘O’ (Contd.)
Disclosure in Respect of Material Related Party Transactions during the year :

Purchase of Fixed Assets include Reliance Home Store Limited Rs. NIL (Previous Year Rs. 0.05 crore), Reliance
Corporate IT Park Limited Rs. NIL (Previous Year Rs. 238.38 crore).
Purchase / Subscription of Investments include Reliance Strategic Investments Limited Rs. NIL (Previous Year Rs.
112.78 crore), Reliance Industries (Middle East) DMCC Rs. 19.79 crore (Previous Year Rs. 99.32 crore), Reliance
Exploration & Production DMCC Rs. 439.66 crore (Previous Year Rs. 658.47 crore), Reliance Retail Limited Rs. NIL
(Previous Year Rs. 1,220.00 crore), Reliance Global Business B.V. Rs. 101.40 crore (Previous Year Rs. 324.40 crore),
Reliance Exploration & Production Mauritius Limited Rs. 2,207.70 crore (Previous Year Rs. NIL), Reliance Oil & Gas
Mauritius Limited Rs. 613.96 crore (Previous Year Rs. NIL), Infotel Broadband Services Limited Rs. 4,155.99 crore
(Previous Year Rs. NIL), RIL (Australia) Pty Limited Rs. 2.28 crore (Previous Year Rs. NIL), Reliance Gas Transportation
Infrastructure Limited Rs. NIL (Previous Year Rs. 24.51 crore), Gujarat Chemicals Port Terminal Company Limited Rs.
52.25 crore (Previous Year Rs. NIL) (Including conversion of share application money of Rs. 17.00 crore of Previous
Year into Equity Shares).
Sale / redemption of Investments include Reliance Strategic Investments Limited Rs. NIL (Previous Year Rs. 4,216.92
crore), Reliance Ventures Limited Rs. NIL (Previous Year Rs. 10.00 crore), Reliance Industrial Investments and
Holdings Limited Rs. NIL (Previous Year Rs. 1,750.00 crore), Reliance Jamnagar Infrastructure Limited Rs. NIL
(Previous Year Rs. 350.00 crore), Reliance Gas Transportation Infrastructure Limited Rs. NIL (Previous Year Rs. 65.68
crore), Reliance Ports and Terminals Limited Rs. NIL (Previous Year Rs. 89.95 crore).

4. Loans given during the year include Reliance Industrial Investments and Holdings Limited Rs. 4,347.53 crore
(Previous Year Rs. NIL), Reliance Exploration & Production DMCC Rs. NIL (Previous Year Rs. 22.45 crore), Reliance
Infosolutions Private Limited Rs. NIL (Previous Year Rs. 4.70 crore), Reliance Corporate IT Park Limited Rs. NIL
(Previous Year Rs. 6.00 crore), Gujarat Chemicals Port Terminal Company Limited Rs. 18.90 crore (Previous Year Rs.
17.00 crore). Loans returned during the year include Reliance Industries (Middle East) DMCC Rs. NIL (Previous
Year Rs. 87.31 crore), Reliance Industrial Investments and Holdings Limited Rs. NIL (Previous Year Rs. 1,454.51
crore), Gapco Kenya Limited Rs. NIL (Previous Year Rs. 19.78 crore), Gapco Tanzania Limited Rs. 180.17 crore
(Previous Year Rs. 40.19 crore), Gapoil Tanzania Limited Rs. NIL (Previous Year Rs. 19.39 crore), Reliance Retail
Limited Rs. NIL (Previous Year Rs. 1,027.61 crore), Reliance Global Business B.V. Rs. NIL (Previous Year Rs. 196.86
crore), Reliance Exploration & Production DMCC Rs. 14.65 crore (Previous Year Rs. NIL), Reliance Gas Corporation
Limited Rs. 6.03 crore (Previous Year Rs. NIL), Reliance Corporate IT Park Limited Rs. 52.97 (Previous Year Rs. NIL),
Reliance Industrial Infrastructure Limited Rs. NIL (Previous Year Rs. 25.00 crore), Gujarat Chemicals Port Terminal
Company Limited Rs. 17.00 crore (Previous Year Rs. NIL) (Including conversion of share application money of Rs.
17.00 crore of Previous Year into Equity Shares).
Advances in the nature of application / call money advances to Reliance Retail Limited Rs. 726.00 crore (Previous
Year Rs. NIL), Infotel Broadband Services Limited Rs. 45.65 crore (Previous Year Rs. NIL), Reliance Exploration &
Production DMCC Rs. 11.15 crore (Previous Year Rs. NIL), Reliance Prolific Traders Private Limited Rs. 523.05 crore
(Previous Year Rs. NIL).

5. Turnover include to Reliance Jamnagar Infrastructure Limited Rs. 0.35 crore (Previous Year Rs. 0.03 crore), Reliance
Retail Limited Rs. 135.40 crore (Previous Year Rs. 39.46 crore), Gapco Kenya Limited Rs. 3,749.84 crore (Previous Year
Rs. 2,492.30 crore), Gapco Tanzania Limited Rs. 749.88 crore (Previous Year Rs. 262.92 crore), Gapoil Tanzania Limited
Rs. NIL (Previous Year Rs. 230.01 crore), Recron (Malaysia) Sdn Bhd Rs. 41.19 crore (Previous Year Rs. 71.87 crore),
Reliance Trends Limited Rs. 3.09 crore (Previous Year Rs. 2.37 crore), LPG Infrastructure (India) Limited Rs. 226.22
crore (Previous Year Rs. 191.55 crore), Reliance Petro Marketing Limited Rs. 808.47 crore (Previous Year Rs. 364.19
crore), Reliance Food Processing Solutions Limited Rs. NIL (Previous Year Rs. 1.28 crore), RIL USA Inc. Rs. 10,209.59
crore (Previous Year Rs. 4,875.63 crore), Reliance Industrial Investments and Holdings Limited Rs. 948.19 crore
(Previous Year Rs. 592.31 crore), Reliance Fresh Limited Rs. 2.15 crore (Previous Year Rs. 0.07 crore), Reliance Gems
and Jewels Limited Rs. 58.45 crore (Previous Year Rs. NIL), Reliance Utilities Private Limited Rs. 0.13 crore (Previous
Year Rs. 0.03 crore), Reliance Ports and Terminals Limited Rs. 4.72 crore (Previous Year Rs. 3.31 crore), Reliance Gas
Transportation Infrastructure Limited Rs. 213.05 crore (Previous Year Rs. 209.37 crore).

6. Other Income from Reliance Industrial Investments and Holdings Limited Rs. 883.58 crore (Previous Year Rs. 373.62
crore), Reliance Ventures Limited Rs. 19.02 crore (Previous Year Rs. 2.10 crore), Reliance Strategic Investments
Limited Rs. 10.39 crore (Previous Year Rs. 33.07 crore), Reliance Industries (Middle East) DMCC Rs. 0.16 crore
(Previous Year Rs. 0.81 crore), Reliance Jamnagar Infrastructure Limited Rs. 2.16 crore (Previous Year Rs. NIL),
Reliance Exploration & Production DMCC Rs. 0.63 crore (Previous Year Rs. 12.25 crore), Gapco Kenya Limited Rs.
1.66 crore (Previous Year Rs. 1.70 crore), Gapco Tanzania Limited Rs. 7.83 crore (Previous Year Rs. 6.07 crore), Gapoil

138

New Businesses. New Technologies. New Partnerships.

SCHEDULE ‘O’ (Contd.)

Tanzania Limited Rs. NIL (Previous Year Rs. 6.61 crore), Recron (Malaysia) Sdn Bhd Rs. 4.90 crore (Previous Year Rs.
4.62 crore), Reliance Infosolutions Private Limited Rs. NIL (Previous Year Rs. 8.14 crore), Infotel Broadband Services
Limited Rs. 13.33 crore (Previous Year Rs. NIL), Reliance Retail Limited Rs. 2.69 crore (Previous Year Rs. NIL), RIL
USA Inc. Rs. 13.26 crore (Previous Year Rs. NIL), Reliance Holdings USA Inc. Rs. 60.30 crore (Previous Year Rs. NIL),
Reliance Eagleford Upstream Holding LP Rs. 1.51 crore (Previous Year Rs. NIL), Reliance Marcellus LLC Rs. 9.14
crore (Previous Year Rs. NIL), Reliance Corporate IT Park Limited Rs. 5.78 crore (Previous Year Rs. NIL), Reliance
Industrial Infrastructure Limited Rs. 2.40 crore (Previous Year Rs. 3.88 crore), Gujarat Chemicals Port Terminal
Company Limited Rs. 0.45 crore (Previous Year Rs. 0.83 crore), Reliance Europe Limited Rs. 2.99 crore (Previous Year
Rs. 1.74 crore).
Purchases / material consumed from Recron (Malaysia) Sdn Bhd Rs. 5.60 crore (Previous Year Rs. 2.25 crore),
Reliance Petro Marketing Limited Rs. 107.43 crore (Previous Rs. 54.21 crore), Reliance Jamnagar Infrastructure
Limited Rs. 392.39 crore (Previous Year Rs. 373.17 crore), Reliance Gas Transportation Infrastructure Limited Rs. NIL
(Previous Year Rs. 34.43 crore), Reliance Ports and Terminals Limited Rs. 1.24 crore (Previous Year Rs. 10.57 crore).
8. Electric Power, Fuel and Water charges paid to Reliance Utilities and Power Private Limited Rs. 291.96 crore (Previous

Year Rs. 285.83 crore), Reliance Utilities Private Limited Rs. 625.30 crore (Previous Year Rs. 674.47 crore).

9. Hire Charges paid to Reliance Industrial Infrastructure Limited Rs. 21.31 crore (Previous Year Rs. 32.01 crore),
Gujarat Chemicals Port Terminal Company Limited Rs. 43.97 crore (Previous Year Rs. 48.86 crore), Reliance Gas
Transportation Infrastructure Limited Rs. 652.25 crore (Previous Year Rs. 314.56 crore), Reliance Ports and Terminals
Limited Rs. 72.09 crore (Previous Year Rs. 163.57 crore).

10. Manpower Deputation Charges to Reliance Retail Limited Rs. 33.42 crore (Previous Year Rs. 33.72 crore), Reliance
People Serve Limited Rs. 2.40 crore (Previous Year Rs. 3.00 crore), Strategic Manpower Solutions Limited Rs. 3.47
crore (Previous Year Rs. 3.97 crore), Reliance Fresh Limited Rs. 1.50 crore (Previous Year Rs. NIL), Reliance Industrial
Infrastructure Limited Rs. 21.48 crore (Previous Year Rs. 11.81 crore), Reliance Ports and Terminals Limited Rs. NIL
(Previous Year Rs. 74.12 crore).

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. 11.05 crore (Previous Year Rs. 11.14 crore), Shri Hital R. Meswani Rs. 11.03 crore
(Previous Year Rs. 11.14 crore), Shri H. S. Kohli Rs. NIL (Previous Year Rs. 1.32 crore), Shri P.M.S. Prasad Rs. 2.37
crore (Previous Year Rs. 1.53 crore), Shri R. Ravimohan Rs. NIL (Previous Year Rs. 0.77 crore), Shri P.K. Kapil Rs. 1.22
crore (Previous Year Rs. NIL).

12. Sales and Distribution Expenses include to Reliance Retail Limited Rs. NIL (Previous Year Rs. 72.13 crore), Reliance
Fresh Limited Rs. 48.63 crore (Previous Year Rs. NIL), Reliance Netherlands B.V. Rs. 1.04 crore (Previous Year Rs.
NIL), Reliance Ports and Terminals Limited Rs. 2,561.86 crore (Previous Year Rs. 2,524.35 crore), Gujarat Chemicals
Port Terminal Company Limited Rs. 9.75 crore (Previous Year Rs. 8.49 crore).

13. Rent paid to Reliance Supply Chain Solutions Limited Rs. NIL (Previous Year Rs. 0.13 crore).
14. Professional Fees paid to Reliance Financial Distribution and Advisory Services Limited Rs. NIL (Previous Year Rs.
5.00 crore), Reliance Universal Ventures Limited Rs. NIL (Previous Year Rs. 2.30 crore), Reliance Supply Chain
Solutions Limited Rs. 9.00 crore (Previous Year Rs. 36.00 crore), Reliance Infosolutions Private Limited Rs. NIL
(Previous Year Rs. 48.00 crore), Reliance Corporate IT Park Limited Rs. 102.00 crore (Previous Year Rs. NIL), Reliance
Europe Limited Rs. 17.18 crore (Previous Year Rs. 20.20 crore), Reliance Ports and Terminals Limited Rs. NIL (Previous
Year Rs. 1.12 crore).

15. General Expenses include to Reliance Hypermart Limited Rs. 1.84 crore (Previous Year Rs. 0.03 crore), Reliance Retail
Travel & Forex Services Limited Rs. NIL (Previous Year Rs. 0.05 crore), Reliance Retail Limited Rs. 7.66 crore
(Previous Year Rs. 4.60 crore), Reliance Footprint Limited Rs. 1.85 crore (Previous Year Rs. 1.47 crore), Reliance Fresh
Limited Rs. 20.05 crore (Previous Year Rs. 2.51 crore), Reliance Polyolefins Limited Rs. 4.48 crore (Previous Year Rs.
9.00 crore), Reliance Trends Limited Rs. 3.01 crore (Previous Year Rs. NIL), Reliance Gems and Jewels Limited Rs.
1.74 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. 18.10 crore (Previous Year Rs. 16.25 crore), Jamnaben Hirachand
Ambani Foundation Rs. 5.73 crore (Previous Year Rs. 1.30 crore), HNH Trust and HNH Research Society Rs. 1.58
crore (Previous Year Rs. 0.83 crore).
Interest Expenses include to Reliance Corporate IT Park Limited Rs. 19.48 crore (Previous Year Rs. 21.45 crore).
Investment written off (net) includes Gujarat Chemicals Port Terminal Company Limited Rs. NIL (Previous Year Rs.
18.38 crore).

17.
18.

Reliance Industries Limited

139

SCHEDULE ‘O’ (Contd.)

17. 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, 2011 March, 2010

(Rs. in crore)
As at 31st Maximum
Balance
during the
year

1. Reliance Industrial Investments and Holding Limited*
2. Reliance Ventures Limited
3. Reliance Strategic Investments Limited
4. Reliance Retail Limited
5. Gapoil Tanzania Limited
6. Gapco Tanzania Limited
7. Reliance Exploration & Production DMCC
8. Reliance Jamnagar Infrastructure Limited
9. Gujarat Chemicals Port Terminal Company Limited

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate

6,997.07
-
-
-
-
83.86
7.80
-
24.50

2,649.54
-
-
-
149.61
114.42
22.45
-
5.60

6,997.07
514.73
576.34
199.65
154.76
150.17
30.55
136.96
24.50

* 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 except for an amount of Rs. 18.90 crore paid to Gujarat

Chemicals Port Terminal Company Limited for setting up of facility for storage.

(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.

Name of the Company

No. of Shares

(Rs. in crore)
Amount

*Reliance Aromatics and Petrochemicals Limited
*Reliance Energy and Project Development Limited

2,98,89,898
20,58,000

273.82
303.34

Sr
No.
1.
2.

(ii) Investment by Reliance Industrial Investments and Holdings Limited in subsidiaries

In Equity Shares :
Sr No. Name of the Company
1.
2.
3.
4.
5.
6.
7.

Reliance Commercial Land & Infrastructure Limited
Reliance Global Business B.V.
Reliance Gas Corporation Limited
Reliance Universal Enterprises Limited
Indiawin Sports Private Limited
Reliance Corporate Services Limited
Reliance Industries Investment and Holding Limited

No. of Shares
4,30,10,000
18,00,000
50,000
38,55,000
26,05,000
10,000
50,000

140

New Businesses. New Technologies. New Partnerships.

SCHEDULE ‘O’ (Contd.)

Reliance Security Solutions Limited
Mark Project Services Private Limited
GenNext Ventures Private Limited
GenNext Innovation Ventures Private Limited
Reliance Commercial Associates Limited

Sr No. Name of the Company
8.
9.
10.
11.
12.
In Preference Shares :
Sr No. Name of the Company
1.
2.

Reliance Industries Investment and Holding Limited
Infotel Broadband Services 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

18. (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

1.
2.
3.
4.
5.
6.

% Interest

30% (30%)
30% (30%)
90% (90%)
90% (90%)
90% (90%)
60% (60%)

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

7.
8.
9.
10.
11.
12.

No. of Shares
50,000
5,000
5,000
10,000
50,000

No. of Shares
24,82,300
12,50,00,000

No. of Shares
20,000
367

% Interest

NIL (40%)
90% (90%)
90% (90%)
90% (90%)
85% (85%)
50% (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 :

Proved Reserves
(Million MT)

Proved Developed
Reserves (Million MT)

2010-11

2009-10

2010-11

2009-10

Oil:
Beginning of the year
Additions
Deletion
Production
Closing balance

Gas:
Beginning of the year
Additions
Deletion
Production
Closing balance

11.11
-
1.44
1.38
8.29

11.02
1.13
-
1.04
11.11

8.62
0.42
-
1.38
7.66

4.97
4.69
-
1.04
8.62

Proved Reserves
(Million M3*)

Proved Developed
Reserves (Million M3*)

2010-11

2009-10

2010-11

2009-10

2,11,214
-
5,771
19,622
185,821

2,20,468
5,353
-
14,607
2,11,214

1,30,823
-
3,839
19,622
107,362

1,33,894
11,536
-
14,607
1,30,823

* 1 cubic meter (M3) = 35.315 cubic feet and 1 cubic feet = 1000 BTU

Reliance Industries Limited

141

SCHEDULE ‘O’ (Contd.)

(c) The Company has entered into an arrangement with M/s BP Exploration (Alpha) Limited (BP), which is a wholly
owned subsidiary of BP Exploration Operating Company Limited, where BP has agreed to take 30% stake in 23
Oil & Gas production sharing contracts, that the Company operates in India, including KG D6 block subject to
obtaining regulatory approvals.
Pursuant to the arrangement, BP Exploration (Alpha) Limited will pay to the Company an aggregate consideration
of US$ 7.20 billion (inclusive of any adjustments for revenue and costs from 1st January, 2011 to the closing
date). Further, future perfomance payments of up to US$ 1.8 billion could be paid based on exploration success
that results in development of commercial discoveries.
The Company has received US$ 2.0 billion (Rs. 9,004.00 crore) as a deposit, under current liabilities, against the
above transaction. The accounting entries of the above transaction will be made in the books of account of the
Company on the receipt of final regulatory approvals.

19. As per Accounting Standard (AS) 17 on “Segment Reporting”, segment information has been provided under the

Notes to Consolidated Financial Statements.

20. ADDITIONAL INFORMATION

(A) Estimated amount of contracts remaining to be executed on

Capital account and not provided for:
In respect of joint Ventures
(i)
In respect of others
(ii)

(B) Uncalled liability on partly paid Shares
(C) Contingent Liabilities

(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, 2011

(Rs. in crore)
As at
31st March, 2010

9.71
9,578.28
4,912.05

12.71
15,220.45
4,270.38

23.53
3,473.34

-
21,637.60

-
2,295.80

-
1,616.93

-
235.56
4,467.57

243.50
2,136.74

-
2,152.97

-
1,834.44

-
822.35

-
108.04
5,380.25

Note : The Company has issued guarantees against future cash calls to be made by JV Partners of its wholly owned
subsidiary Reliance Holding USA Inc. amounting to Rs. 9,409.55 crore. During the year, cash calls to the extent
of Rs. 1,356.69 crore have been made by the JV Partners and settled by the subsidiary.

142

New Businesses. New Technologies. New Partnerships.

SCHEDULE ‘O’ (Contd.)

(D) The Income-Tax assessments of the Company have been completed up to Assessment Year 2008-09. The
disputed demand outstanding up to the said Assessment Year is Rs. 1,983.68 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.

21. LICENSED AND INSTALLED CAPACITY

(As certified by the Management)

Licensed Capacity
As at 31st March,
2010
2011

UNIT

A
B

D
E
F
G
H
I

J
K
L
M
N
O
P
Q
R

Refining of Crude Oil

ix Chlorine
x Acrylonitrile
xi Linear Alkyl Benzene
xii Butadiene & Other C4s
xiii Cyclohexane
i Paraxylene
ii Orthoxylene
iii Toluole

i Ethylene
ii Propylene
iii Benzene
iv Toluene
v Xylene
vi Hydro Cynic Acid
vii Ethane Propane Mix
viii Caustic Soda Lye/Flakes

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
Ethyl Vinyl Acetate
MT
Purified Terephthalic Acid
MT
Polyester Filament Yarn/Polyester Chips
MT
Polyester Staple Fibre/ Acrylic Fibre / Chips
MT
Poly Ethylene Terephthalate
Polyester Staple Fibre Fill
MT
Man-made Fibre Spun Yarn on worsted system Nos
Nos
Man-made fibre on cotton system (Spindles)
Nos
Nos
M.W.

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

i Man-made Fabrics (Looms)
ii Knitting M/C

Solar Photovoltaic Modules

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.
N.A.
22
N.A.

Installed Capacity
As at 31st March,

2011

60
1,883,400
759,800
730,000
197,000
165,000
3,600
450,000
168,150
141,200
41,000
182,400
419,000
40,000
1,856,000
420,000
180,000
625,000
1,117,500
80,000
74,000
2,685,200
733,400
52,080
116,000
15,000
2,050,000
822,725+
741,612
290,000
42,000
24,094
23,040
263
20
30

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

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

Reliance Industries Limited

143

SCHEDULE ‘O’ (Contd.)

22.

(a) The Ministry of Corporate Affairs, Government of India vide its General Notification No. S.O.301(E) dated
8th February 2011 issued under Section 211(3) of the Companies Act, 1956 has exempted certain classes of
companies from disclosing certain information in their profit and loss account. The Company being an ‘export
oriented company’ is entitled to the exemption. Accordingly, disclosures mandated by paragraphs 3(i)(a),
3(ii)(a), 3(ii)(b) and 3(ii)(d) of Part II, Schedule VI to the Companies Act,1956 have not been provided.

(b) The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February
2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of
the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has
satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information
relating to the subsidiaries has been included in the Consolidated Financial Statements.

23. 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

2010-11

MT
BBTU
‘000 MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
MT
Mtrs. In lacs
MT
MT
MT
MT
MT
MT
MT
MT
Mtrs. in Lacs

1,306,057
564,312
51,525
27
6,895
605,200
102,036
128,631
37,608
162,667
96,158
46,195
486,896
399,831
630,780
970,017
93
76,261
2,496,099
265,244
622,097
810,433
631,023
352,668
69,614
180

2009-10

1,021,797
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
96
72,894
2,398,598
301,509
610,787
796,033
627,857
314,191
59,601
163

144

New Businesses. New Technologies. New Partnerships.

SCHEDULE ‘O’ (Contd.)

24. Financial and Derivative Instruments

a) Derivative contracts entered into by the Company and outstanding as on 31st March, 2011

(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 98,585.59 crore (Previous Year Rs. 1,23,430.42 Crore). Category wise break up is given below:
(Rs in crore)

Sr. No.

Particulars

As at 31st March, 2011

As at 31st March, 2010

1
2
3
4

Interest Rate Swaps
Currency Swaps
Options
Forward Contracts

(ii) For hedging commodity related risks :
Category wise break up is given below :

Sr. No.

Particulars

1
2
3
4

Forward swaps
Futures
Spreads
Options

34,253.65
4,567.03
28,180.96
31,583.95

48,361.08
4,199.76
44,853.83
26,015.75

(in Kbbl)

As at 31st March, 2011
Petroleum Crude Oil

As at 31st March, 2010
Petroleum Crude oil
purchases product sales purchases

product sales

14,757
2,194
33,768
-

21,420
9,453
51,227
-

1,900
4,070
9,545
1,800

8,185
4,967
32,141
12,175

In addition the Company has net margin hedges outstanding for contracts relating to petroleum product
sales of 79,308 kbbl (Previous Year 72,700 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. NIL (Previous
Year Rs. 94.09 crore) to the Profit and Loss Account in respect of derivative contracts.

c) Foreign currency exposures that are not hedged by derivative instruments as on 31st March,2011 amount to Rs.

65,893.02 crore. (Previous Year Rs. 50,442.30 crore)

25. VALUE OF IMPORTS ON CIF BASIS IN RESPECT OF

Raw Materials and Traded Goods

Stores, Chemicals and Packing Materials

Capital goods

2010-11
1,74,914.39

2,050.50

501.83

(Rs. in crore)

2009-10
1,52,083.05

1,430.63

1,190.22

Reliance Industries Limited

145

SCHEDULE ‘O’ (Contd.)

26. EXPENDITURE IN FOREIGN CURRENCY :

Capital Contracts

Oil and Gas Activity

Technical and Engineering Fees (Includes Rs.154.28 crore for SEZ unit)

Machinery Repairs (Includes Rs. 2.36 crore for SEZ unit)

Building Repairs

Lease Rent

Payments To and Provisions For Employees (Includes Rs. 0.02 crore for SEZ unit)

Sales Promotion Expenses (Includes Rs. 20.90 crore for SEZ unit)

Brokerage and Commission (Includes Rs. 14.04 crore for SEZ unit)

2010-11

165.59

3,803.97

192.02

92.31

3.66

19.78

30.52

54.58

Ocean Freight (Includes Rs. 932.18 crore for SEZ unit)

1,487.99

Warehousing and Distribution Expenses (Includes Rs. 924.81 crore for SEZ unit)

1,035.76

Insurance (Includes Rs. 0.16 crore for SEZ unit)

Rent

Rates & Taxes

Other Repairs (Includes Rs. 1.55 crore for SEZ unit)

Travelling Expenses

Professional Fees (Includes Rs. 4.63 crore for SEZ unit)

Charity & Donations

Hire Charges

Bank Charges (Includes Rs. 8.05 crore for SEZ unit)

Establishment Expenses (Includes Rs. 0.04 crore for SEZ unit)

Interest Charges (Includes Rs. 387.59 crore for SEZ unit)

Other Finance Charges (Includes Rs. 80.23 crore for SEZ unit)

Premium on Redemption of Bonds

27. VALUE OF RAW MATERIALS CONSUMED :

2.30

5.34

0.88

8.49

7.09

113.47

15.87

0.32

19.92

35.72

1,224.81

161.08

(Rs. in crore)
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

Imported

Indigenous

2010-11

Rs. in crore

% of Rs. in crore

Consumption

2009-10

% of
Consumption

1,77,225.47

91.72

1,41,108.21

16,008.41

8.28

6,811.00

95.40

4.60

1,93,233.88

100.00

1,47,919.21

100.00

146

New Businesses. New Technologies. New Partnerships.

SCHEDULE ‘O’ (Contd.)

28. VALUE OF STORES, CHEMICALS AND PACKING MATERIALS CONSUMED

Imported

Indigenous

29. EARNINGS IN FOREIGN EXCHANGE

2010-11

2009-10

Rs. in crore

% of Rs. in crore

Consumption

% of
Consumption

1,724.28

1,653.74

3,378.02

51.04

48.96

100.00

1,412.28

1,361.70

2,773.98

50.91

49.09

100.00

FOB value of exports [Excluding captive transfers to Special
Economic Zone of Rs. 13,178.23 crore (Previous Year Rs. 6,363.27 crore)]

Interest

Others

(Rs. in crore)

2010-11

2009-10

1,40,546.15

1,02,655.60

6.98

4.48

25.08

20.32

30. 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

* Includes issue of bonus shares in Financial Year 2009-10.

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 21, 2011

V.M. Ambani
Company Secretary

2010-11
(Final Dividend)

2009-10
(Interim Dividend)

40,299

38,072

59,60,33,421*

28,99,24,139

417.22

2009-10

376.90

2008-09

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
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra

Prof. Dipak C. Jain} Directors

Reliance Industries Limited

147

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 1

State Code:

II. Capital raised during the year (Amount in Rs. Crore):

Public Issue:

Bonus Issue:

N I L

Rights Issue:

Private Placement:

III. Position of Mobilisation and Deployment of Funds (Amount in Rs. crore):

Total Liabilities:

Sources of Funds:

Paid up Capital:

Secured Loans:

8 4 7 1 9 .

4 0

Total Assets:

2 8 4 7 1 9

3 2 7 3 .

3 7

Reserves & Surplus:

1 4 8 2 6 6

1 0 5 7 1 .

Deferred Tax Liabilities:

1 1 5 6 1 .

Application of Funds:

Net Fixed Assets:

5 5 5 2 6 .

Current Assets:

9 1 5 4 1 .

Unsecured Loans:

Current Liabilities:

5 6 8 2 5

5 4 2 2 0

Investments:

3 7 6 5 1

2 1

8 0

0 3

8 3

IV. Performance of the Company (Amount in Rs. crore):

Turnover:

Net Turnover:

Profit Before Tax:

5 8 6 5 1 .

1 5

Total Expenditure:

4 8 1 7 0 .

2 5 2 4 2 .

0 0

2 4

Profit After tax:

Dividend: Rs. per share

2 2 9 2 2 2

2 0 2 8 6

Earning per share in Rs.

6 2 .

0 0

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

P R O D U C T S

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 P )

( P E )

1 1

N I L

4 0

9 5

4 7

6 0

5 4

5 2

3 0

0 0

148

New Businesses. New Technologies. New Partnerships.

Consolidated Financial Statements & Notes

Reliance Industries Limited

149

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, 2011,
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. 63,989.53 crore as at 31st March, 2011, total
revenue of Rs. 20,939.69 crore and net cash flows amounting
to Rs. 431.55 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. 7.38 crore have been
audited by one of us.

2. We did not audit the financial statements of a subsidiary,
whose financial statements reflect total assets of Rs. 10.00
crore as at 31st March, 2011, total revenue of Rs. 0.01
crore and cash flows amounting to Rs. 0.42 crore for the
year then ended and financial statements of certain
associates in which the share of profit (net) of the Group
is Rs. 0.33 crore. These financial statements and other
financial information have been audited by other auditors
whose reports have been furnished to us, and our opinion
is based solely on the report of other auditors.

3. We have relied on the unaudited consolidated financial
statements of certain subsidiaries and joint ventures whose
consolidated financial statements reflect total assets of Rs.
22,027.11 crore as at 31st December, 2010 / 31st March
2011, total revenue of Rs. 12,046.19 crore, cash flows
amounting to Rs. 2,144.02 crore for the year then ended

and on the unaudited financial statements of certain
associates wherein the Group’s share of loss (net) aggregates
Rs. 67.25 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 2011;

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

Mumbai

April 21, 2011

150

New Businesses. New Technologies. New Partnerships.

Reliance Industries Limited
Consolidated Balance Sheet as at 31st March, 2011

SOURCES OF FUNDS

Shareholders’ Funds
Share Capital
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, 2011

(Rs. in crore)

As at
31st March, 2010

2,981.02
1,51,111.73

10,578.47
73,527.72

2,38,292.50
80,193.06
1,58,099.44
29,742.25

2,915.65
18,680.52

38,519.43
15,695.19
30,139.03
261.68
84,615.33
13,464.25
98,079.58

52,716.47
4,730.26
57,446.73

2,978.02
1,38,024.96

1,54,092.75
802.21

1,41,002.98
573.53

11,694.40
52,911.12

84,106.19
11,070.91
2,50,072.06

64,605.52
10,677.57
2,16,859.60

2,24,125.28
63,934.03
1,60,191.25
17,033.68

1,87,841.69

1,77,224.93

2,404.32
10,707.93

21,596.17

13,112.25

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

40,632.85
1.35

26,520.09
2.33

2,50,072.06

2,16,859.60

‘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 21, 2011

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
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra

Prof. Dipak C. Jain} Directors

Reliance Industries Limited
Consolidated Profit and Loss Account for the year ended 31st March, 2011

Reliance Industries Limited

151

Schedule

2010-11

(Rs. in crore)

2009-10

2,76,371.78
10,561.18

2,11,727.07
7,987.35

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’

16,819.84
2,633.75

65.33

Profit before Tax

Provision for Current 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) Provision for Tax for earlier years
Excess Provision for Tax for earlier years - Minority Interest
Transfer from Statutory Reserve

Amount Available for Appropriations
APPROPRIATIONS

Statutory Reserve
General Reserve
Debenture Redemption Reserve
Capital Redemption Reserve
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. 3,225.00, Previous Year Rs. 3,302.00)

17.16
16,000.00
-
-
2,384.99
386.90

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 ‘N’]
Significant Accounting Policies
Notes on Accounts

‘M’
‘N’

As per our Report of even date

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. Siddharth
Partner

A.R. Shah
Partner

Mumbai
April 21, 2011

V.M. Ambani
Company Secretary

2,65,810.60
2,542.82
4,458.04
2,72,811.46

7,032.23
2,25,192.83
2,410.68

14,120.76
2,48,756.50
24,054.96
4,412.43
371.01
19,271.52
22.16
19,293.68
13,296.84
(0.37)
0.04
-
32,590.19

2,03,739.72
10,783.03
6,034.99
2,20,557.74

7,537.51
1,71,334.99
2,059.58

10,945.80
1,91,877.88
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

14,000.62
2,991.80

63.02

2.90
14,000.00
189.50
8.65
2,084.67
346.24

18,789.05
13,801.14

64.75

67.83

16,631.96
13,296.84

82.29

53.39

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
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra

Prof. Dipak C. Jain} Directors

152

New Businesses. New Technologies. New Partnerships.

Reliance Industries Limited
Consolidated Cash Flow Statement for the year 2010-11

A: CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit before tax as per Profit and Loss Account

24,054.96

28,679.86

2010-11

(Rs. in crore)

2009-10

Adjusted for:

Miscellaneous Expenditure written off
Share in Income of Associates
Net Prior Year Adjustments
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
Deposit Received
Purchase of Investments
Sale of Investments
Movement in Loans and Advances
Interest Income
Dividend Income
Net Cash (Used in) Investing Activities

3.34
59.54
2.83
-
0.51
167.84
16,819.84
(2,633.75)
(65.33)
(848.01)
-
(530.33)
917.21
(5.38)
(1,741.58)
2,410.68

(7,103.63)

(4,091.82)

10,155.91

2.09
(10.77)
1.35
245.33
17.70
33.34
14,000.62
(2,991.80)
(63.02)
(1,799.43)
16.53
(287.88)
(8,605.57)
(8.30)
(1,716.18)
2,059.58

14,557.41

38,612.37

893.59

29,573.45

(5,790.65)

(14,396.67)

14,249.20

(1,039.54)

37,572.83

(2.83)

(4,242.81)

10.85

33,338.04

(33,864.64)
260.72
9,004.00
(2,56,161.89)
2,48,059.77
(1,345.25)
2,000.35
3.25
(32,043.69)

(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)

Reliance Industries Limited

153

Consolidated Cash Flow Statement for the year 2010-11 (Contd.)

C: CASH FLOW FROM FINANCING ACTIVITIES:

Proceeds from Issue of Share Capital

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 from / (Used in) Financing Activities

Net Increase / (Decrease) in Cash and Cash Equivalents

Opening Balance of Cash and Cash Equivalents

Add: Upon addition of Subsidiaries

13,890.83

4.13

Closing Balance of Cash and Cash Equivalents

2010-11

192.57

3.10

20,474.64

(6,025.25)

6,251.98

(2,430.91)

(3,516.41)

14,949.72

16,244.07

13,894.96

30,139.03

(Rs. in crore)

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

22,742.10

19.01

Note :
Share application money given to Associate aggregating to Rs. 17.00 crore (Previous Year Rs. NIL) have been converted into
investments in Equity 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 21, 2011

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
R.H. Ambani
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra

Prof. Dipak C. Jain} Directors

154

New Businesses. New Technologies. New Partnerships.

Schedules forming part of the Consolidated Balance Sheet

SCHEDULE ‘A’

SHARE CAPITAL

Authorised:

500,00,00,000 Equity Shares of Rs. 10 each

(500,00,00,000)

100,00,00,000 Preference Shares of Rs. 10 each

(100,00,00,000)

Issued, Subscribed and Paid up:

As at
31st March, 2011

(Rs. in crore)

As at
31st March, 2010

5,000.00

1,000.00

6,000.00

5,000.00

1,000.00

6,000.00

2,98,10,19,381 Equity Shares of Rs. 10 each fully paid up

2,981.02

2,978.02

(2,97,80,19,733)

Less: Calls in arrears - by others

(Rs. 3,652.50 : Previous Year Rs. 3,922.50)

TOTAL

2,981.02

2,978.02

Notes:

1,94,12,11,766
(1,94,12,11,766)

Shares out of the issued and subscribed share capital were allotted as Bonus Shares by
capitalisation of Securities Premium and Reserves.

52,75,89,219
(52,75,89,219)

45,04,27,345
(45,04,27,345)

Shares out of the issued and subscribed share capital were allotted pursuant to the various
Schemes of amalgamation without payments being received in cash.

4. The Company has reserved issuance of 13,52,79,244 (Previous year 13,82,78,892) Equity Shares of Rs. 10/- each for offering
to eligible employees of the Company and its subsidiaries under Employees Stock Option Scheme (ESOS). During the year, the
Company has granted 35,200 [Previous year Nil] Options to the eligible employees which includes 16,000 options at a price of
Rs. 995/- per option and 19,200 options at a price of Rs. 929/- per option 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 29,99,648 (Previous Year 5,30,426) equity shares to the eligible employees
of the Company and its Subsidiaries under ESOS.
Issued, Subscribed and paid up capital excludes 29,23,54,627 (Previous Year 29,23,54,627) equity shares directly held by
subsidiaries/trust, before their becoming subsidiaries of the Company, which have been eliminated.

Reliance Industries Limited

155

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
Less: Utilised on Demerger Adjustments
[Refer Note 11, Schedule ‘N’]
Capital Reserve
As per last Balance Sheet
Add : On Consolidation of Subsidiaries (Net)

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

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

Debenture 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 (Rs. 28,387.00)

General Reserve*
As per last Balance Sheet
Add: Transferred from 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, 2011

(Rs. in crore)

As at
31st March, 2010

9,413.67
12.23
9,425.90
2,633.75

2.93
703.52

817.08
(54.71)
762.37
65.33

8.65
-
8.65
-

45,394.12
189.57
45,583.69
-
-
125.00
45,458.69
0.02

1,116.57
-

55.44
17.16
-
-

68,003.95
16,000.00

6,085.70

697.04
(142.30)

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

9,413.67

817.08
(91.05)

8.65

45,366.22
50.97
45,417.19
80.19
738.85
(795.97)
45,394.12
0.02

45,458.67

45,394.10

1,116.57

927.07
189.50

88.03
2.90
33.94
1.55

72.60

55.44

54,003.95
14,000.00

84,003.95

68,003.95

9.71
13,801.14
1,51,111.73

9.71
13,296.84
1,38,024.96

* Cumulative amount withdrawn on account of Depreciation on Revaluation is Rs. 2,563.43 crore.

156

New Businesses. New Technologies. New Partnerships.

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, 2011

As at
31st March, 2010

(Rs. in crore)

10,007.82

9,682.82

6.27

575.86

312.17

252.21

1,234.67

201.05

564.38

10,578.47

1,435.72

11,694.40