Reliance Industries Limited Annual Report 2012

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FY2012 Annual Report · Reliance Industries Limited

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(

Srijan Shekhar

(Age Group: 5-7 years)

Swapnil Agrawal

(Age Group: 5-7 years)

Nimish Nair

(Age Group: 5-7 years)

Priyanshu Patel

(Age Group: 5-7 years)

Sakcham Gupta

(Age Group: 5-7 years)

Hemal Mahavar

(Age Group: 8-10 years)

Aryam Bhadauria

(Age Group: 8-10 years)

Shrey Patel

(Age Group: 11-13 years)

Dhwani Sonawane

(Age Group: 11-13 years)

Poonjee Gupta

(Age Group: 11-13 years)

Pranay Sharma

(Age Group: 8-10 years)

Dev Chauhan

(Age Group: 8-10 years)

Sarth Patel

(Age Group: 8-10 years)

T V Sreesh

(Age Group: 11-13 years)

Tanya Bhatia

(Age Group: 11-13 years)

Pictures/ photographs shown in this report are for representation purpose only. Unless expressly authorised, Reliance

Group neither claims any intellectual property rights nor will be responsible for any infringement action.

PARTNERING
INDIA’S
NEW FUTURE.
SUSTAINABLY.

ANNUAL
REPORT
2011-12

Partnering India’s new future. Sustainably.

India has an interesting story to tell the world.
A story of dynamism and confidence to face the
future, on the strength of new capabilities and a
vibrant market for consumption.

Reliance is creating opportunities for future
generations by building a unique portfolio of
upstream, refining and petrochemicals business
with industry-leading performance, and time-

critical investments in emerging sectors.

Our business growth mirrors the
evolving aspirations of millions
of fellow Indians to embrace an
advanced quality of life. The result is
an unprecedented surge in consumption
across the vast social spectrum.
This great Indian opportunity is the
wellspring of our strength.

As India helps drive global growth, we
are passionately investing our resources

and energies in helping accelerate
India’s socio-economic progress.

We are committed to sustain
a culture of operational

excellence, responsible resource
utilisation and creating a platform
for sustainable growth to benefit all
stakeholders.

Nation Building - The Reliance Way

You can give the visually impaired a white

cane and they will not fall. Or give them

knowledge and they will lead.

Reliance Drishti, an initiative of Reliance

Reliance Foundation, envisaged to become

Foundation, aims to help the visually impaired

one of the foremost professional philanthropic

acquire skills that will make them independent

organisations

the world,

focuses on

and relevant in society. It has also made it

five

core pillars:

rural

transformation,

a mission to bring the gift of sight to the

education, health, urban renewal and arts,

visually impaired, especially those who are

culture & heritage.

underprivileged. Till date, over 10,000 cornea

transplant surgeries have been performed

and lakhs of children have been provided free

eye check-ups.

Our way of thinking is clear... when we transform

the lives of people, we transform India.

Reliance Drishti recently

launched India’s first

registered Braille

newspaper in Hindi.

The newspaper is a small

step that will open up a

world of information and

knowledge for the

visually impaired.

www.ril.com

Contents

Company’s Overview

02 Highlights

08 Reliance Foundation

03 10 Years Trend (Fiscal Year)

14 Company Information

04 Letter to Shareholders

06 The Board of Directors

15 Financial Highlights

Statutory Reports

16 Notice of Annual General Meeting

86 Secretarial Audit Report

20 Management’s Discussion and Analysis

88 Directors’ Report

51 Report on Corporate Social Responsibility

107 Auditors’ Certificate on

57 Report on Corporate Governance

Corporate Governance

Financial Statements

109 Auditors’ Report on Financial Statements

158 Consolidated Cash Flow Statement

112 Balance Sheet

113 Statement of Profit and Loss

114 Cash Flow Statement

116 Significant Accounting Policies

119 Notes on Financial Statements

160 Significant Accounting Policies on

Consolidated Accounts

161 Notes on Consolidated

Financial Statements

196 Financial Information of
Subsidiary Companies

155 Auditors’ Report on Consolidated

200 Shareholders’ Referencer

Financial Statements

156 Consolidated Balance Sheet

157 Consolidated Statement of Profit and Loss

213 Members’ Feedback Form

215 Attendance Slip and Proxy Form

2 Partnering India's new future. Sustainably.

Highlights

Reliance Industries Limited (RIL) is
India’s largest private sector conglomerate
and a Fortune Global 500 companies with
business in the energy and materials
value chain.

GROWING IMPORTANCE ACROSS THE GLOBE

Largest refining capacity at any single location

Largest producer of Polyester Fibre and Yarn

5th largest producer of Paraxylene (PX)

5th largest producer of Polypropylene (PP)

8th largest producer of Purified Terephthalic Acid
(PTA) and Mono Ethelen Glycol (MEG)

RIL’S CONTRIBUTION TO INDIA’S ECONOMIC GROWTH

7.8%

Weightage in
the NSE Nifty

14%
of India’s
total exports

5.5%

of the
Government of
India’s indirect
tax revenues

9.3%

Weightage in
the BSE Sensex

of the total
market
capitalisation
in India

10 Years Trend (Fiscal Year)

Reliance Industries Limited 3

TURNOVER (` Crore)

PROFIT AFTER TAX (` Crore)
(Excluding exceptional item)

NETWORTH (` Crore)

400,000

350,000

300,000

250,000

200,000

150,000

100,000

50,000

6
8
2
,
0
2

0
4
0
,
0
2

6
3
2
,
6
1

7
3
6
,
5
1

1
6
2
,
5
1

2
9
7
,
9
3
3

1
5
6
,
8
5
2

0
0
4
,
0
0
2

25,000

20,000

15,000

10,000

5,000

3
4
9

1
1

9
6
0

2
7
5
7

0
6
1

4
0
1
4

180,000

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

9
4
4
,
1
8

7
6
9
,
3
6

4
0
8
,
9
4

3
0
4
,
0
4

3
5
4
,
4
3

7
2
3
,
0
3

8
2
3
,
6
4
1

9
6
2
,
9
3
1

4
5
3
,
8
1
1

4
2
1
,
9
8

4
6
1
,
3
7

7
4
2
,
6
5

6
9
0
,
0
5

6
9
0
,
6
6
1

0
4
5
,
1
5
1

1
7
1
,
7
3
1

3
7
3
,
6
2
1

02 03 04 05 06 07 08 09 10 11
03 04 05 06 07 08 09 10 11 12

MARKET CAPITALISATION
(` Crore)

EARNINGS PER SHARE (`)*
(Excluding exceptional item)

BOOK VALUE PER SHARE (`)*

0
.
2
6

2
.
1
6

9
.
0
5

7
.
9
4

0
2
3
,
1
5
3

4
8
9
,
2
4
3

9
7
1
,
9
2
3

1
2
7
,
9
3
2

7
5
7
,
4
4
2

400,000

350,000

300,000

250,000

200,000

150,000

100,000

50,000

5
0
9
,
8
9
1

8
5
9
,
0
1
1

2
3
1
,
5
7

9
7
0
,
6
7

3
0
6
,
8
3

3
.
1
4

5
.
2
3

2
.
7
2

5
.
8
1

7
.
4
1

550

500

450

400

350

300

250

200

150

100

3
.
7
0
5

2
.
3
6
4

5
.
9
1
4

5
.
1
0
4

8
.
1
8
2

3
.
1
2
2

7
.
8
7
1

0
.
5
4
1

4
.
3
2
1

02 03 04 05 06 07 08 09 10 11
03 04 05 06 07 08 09 10 11 12

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

4 Partnering India's new future. Sustainably.

Letter to Shareholders

Dear Fellow Shareowners,

FY 2011-12 has been a challenging year with unprecedented economic uncertainty in Europe, geo-
political upheaval in the Middle East and a slowing down of economic growth across Asia. These events
had a profound effect on demand and margin outlook for industrial products across the world. In many
ways, we are still feeling the after-shocks of the financial meltdown of 2008 and 2009 with leading
economies continuing to suffer from low growth and the resultant adverse impact on demand for most
products and services. We have been successful in insulating and de-risking our portfolio of businesses
by following a prudent operating discipline and further strengthening our rock solid foundation for
investments in future growth engines.

these

tough

Even under
times, RIL delivered
sustained operating and financial results from its core
businesses. RIL achieved a turnover of ` 339,792 Crore
($ 66.8 Billion) and net profit of ` 20,040 Crore
($ 3.9 Billion). This was mainly achieved as a result of
resilient demand for petroleum products in developing
economies from around the world and on-going
consumer demand in India for products and services
linked to a better quality of life.

Reliance was able to realise the true potential of its
high quality manufacturing assets, its deep talent
pool, globally accepted products and strongaccess to
Indian markets.

Reliance’s refineries continued to be recognised as
the best-in-class refining assets built in recent times.
Besides winning several accolades for their track
record in safety, energy conservation and environment
friendliness, they consistently operated at over 100% of
design capacity. The refineries achieved their highest
ever crude processing of 67.6 Million tonnes, surpassing
their previous record by over a Million tonnes. The
refining industry was particularly impacted by events
that were not foreseeable a year ago. The natural
disaster in Japan left the world shaken and created
unprecedented demand for fuel oil in the region. This,
combined with geo-political issues in the Middle-east
resulted in sharp hike in crude prices and increased
demand for heavy crudes; narrowing both product
margins and light-heavy differentials. All of this
resulted in lower than expected Asian complex refining
margins. In this environment, Reliance was able to
improve its performance with higher throughput and
better margins.

Our partnership with BP has redefined our strategy for
the domestic oil and gas business. This partnership will
endeavour to unlock the true potential of RIL’s deep-
water exploration blocks by leveraging BP’s skills in
sub-sea engineering and reservoir management. India
Gas Solutions Private Limited, a 50:50 joint venture
with BP has been set up to focus on global sourcing
and marketing of natural gas in India. Demand for
natural gas has been growing at an exponential rate in

India and is expected to be the preferred choice of fuel
given its environment friendly properties and ready
acceptance by users.

to unforeseen

Production from the KG-D6 block has been adversely
impacted mainly due
reservoir
complexities and water ingress in the producing fields.
Significant steps have been taken by the joint technical
teams in assessing options for overall reservoir
management based on which, an integrated plan for
work-overs and additional wells can be executed, subject
to necessary regulatory and government approvals.

We are committed to strengthening India’s energy
security and investing in expanding our upstream
business in India. As we are all aware, India acutely
needs sizeable investments to develop its hydrocarbon
reserves and needs to do more in creating anequitable
investment climate that recognises the integral risk-
reward paradigm of the upstream business. We need
to take into consideration the fact that slow-down in
these investments impacts the overall import bill for the
nation as India continues to increase its dependence
on imported LNG, benefitting producers around
the world.

We invested significantly in the shale gas joint ventures
which are now all operational. We are contributing
technical expertise and capital in development of
this new business which is likely to be a growing
contributor to our earnings in the future. Prevailing
low gas prices have necessitated a prudent approach
towards production ramp-up with focus being on the
more liquid rich areas in our Eagle Ford asset.

Domestic demand for petrochemical products remained
strong although margins were impacted due to high
feedstock prices and increased supply from the Middle
East. India remained an importer of several polymer
products. Our planned expansions in the petrochemical
segment have commenced and are aimed principally at
addressing the growing consumption in India. These
expansions will leverage from downstream integration
with RIL’s refining complex and the resultant feedstock
security. We are creating a world-scale elastomer

Reliance Industries Limited 5

We have strengthened our
balance sheet and are focused
on managing our costs and
prudent use of capital. Our
investment grade ratings, cash
balance and low net gearing
place us a unique position for
creating a foundation for growth.

portfolio taking advantage of this feedstock integration
and the growth of the automobile sector in India.

Growth in our organised retail business is reflective
of the changing habits and increasing aspirations
of millions of fellow Indians who seek modern
conveniences without losing focus on value. Over
7 Million farmers in India benefit from our farm to fork
consumer retail strategy and this number is growing
exponentially day by day. In a short period and as a
reflection of consumer preferences, Reliance now has
leadership positions in food, apparel and consumer
electronics retailing in the country. With over 1,300
stores operational and more being opened, Reliance
is positioned to be India’s premier retailer even as
organised retailing becomes a more meaningful part of
the changing consumer preference in the country.

The broadband market in India is expected to leapfrog
from its current user base of around 20 Million wireless
and wire-line subscribers. Our foray in Broadband
Access is aimed at achieving a leadership status in
providing digital services to a large base of consumers
and providing next generation data services.

We have strengthened our balance sheet and are
focused on managing our costs and prudent use of
capital. Our investment grade ratings, cash balance
and low net gearing place us in a unique position for
creating a foundation for growth. At Reliance, we have
been and continue to remain focused on creating long-
term shareholder value. It is with this in mind that
we have introduced India’s largest share buy-back
programme in January 2012.

We are passionate towards investing in Reliance’s
future. I know that I am not alone in this passion and
that over 50,000 Reliance employees share this hunger
for outperformance and growth. We are committed to
doing so with integrity and humility and are steadfast
in our endeavour to achieving our goals.

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

take

With best wishes,

Sincerely,

Mukesh D. Ambani
Chairman & Managing Director

20 April 2012

6 Partnering India's new future. Sustainably.

The Board of Directors

Shri Mukesh D. Ambani

Shri P. M. S. Prasad

Shri Hital R. Meswani

Chairman and
Managing Director

Executive Director

Shri Mansingh L. Bhakta

Shri Yogendra P. Trivedi

Dr. Dharam Vir Kapur

Independent Director

Reliance Industries Limited 7

Shri Nikhil R. Meswani

Shri Pawan Kumar Kapil

Shri Ramniklal H. Ambani

Executive Director

Non-Executive
Non-Independent
Director

Shri Mahesh P. Modi

Prof. Ashok Misra

Prof. Dipak C. Jain

Independent Director

Dr. Raghunath A.
Mashelkar
Independent Director

bring the gift of sight to the visually impaired and to
improve their quality of life. Since its beginning in 2003,
Reliance Drishti has conducted over 10,000 cornea
transplants across India. An important milestone was
achieved on 19 March 2012 when Reliance Drishti
launched India’s first registered national braille
newspaper in Hindi. This newspaper will bring the gift
of information to over 25,000 visually differently abled.

Reliance Foundation has also instituted “Real Heroes”,
an award that recognises and acknowledges ordinary
Indians who are making a difference to people’s lives.
In its 5th edition held in March 2012, this annual
felicitation honoured 24 unsung heroes of India. The
efforts of these 24 real heroes, selected from across
the country and working in diverse fields of women
empowerment, environment, youth, social welfare,
health & disability, education & children and sports,
have significantly contributed to the betterment of
their communities.

8 Partnering India's new future. Sustainably.

Reliance Foundation

Reliance Foundation focuses on five core pillars of
rural transformation, education, health, urban renewal
and arts, culture & heritage. It seeks to bring corporate
systems and processes to social sector with an overall
aim to create and support meaningful and innovative
activities that address some of India’s most pressing
developmental challenges.

launched Reliance BIJ

Reliance Foundation
in
October 2010. BIJ stands for ‘Bharat India Jodo’ and
aims to bridge the gap between rural and urban India
by strengthening sustainable agriculture practices
amongst small and marginal farmers. Reliance BIJ
today is present across 8 states and is set to expand
to cover most of the agro-climatic zones of India.
Reliance Foundation has embarked upon a new
initiative called Reliance Knowledge for Sustainable
Development (RK4SD) which aims at capacity building
of farmers, fisher folk and micro-enterprises for
better livelihood security. RK4SD will further provide
timely advisories on climatic conditions, water and
weather related risks, methods of handling new pests
and diseases and sharing of best practices and better
farming methods.

In FY 2011-12, Reliance Foundation and its associate
institutions provided education to 15,000 children
across 12 schools. Reliance Foundation is in the
process of setting up Reliance Institute of Technology
in Jamnagar and Reliance Polytechnic in Dwarka in
partnership with the Gujarat government.

For promoting healthcare, Reliance Foundation
is creating a world class tertiary care hospital in
Mumbai. The hospital will incorporate a community
outreach programme catering to health needs of the
underprivileged. Reliance Drishti, an initiative of
Reliance Foundation, working in association with
National Association for the Blind, is committed to

Major Products and Brands

Product

Business/
Brand
Exploration & Crude Oil and Natural
Production
Gas

Refining

Liquefied Petroleum Gas
(LPG)

Propylene

Naphtha

Gasoline

Jet / Aviation Turbine Fuel

Superior Kerosene Oil

High Speed Diesel

Sulphur

Petroleum Coke

Petrochemicals - Polymers

Repol

Polypropylene (PP)

Relene

Polyethylene
(HDPE, LLDPE & LDPE)

Ethylene Vinyl Acetate
Copolymer (EVA)

Ultra High Molecular
Weight Polyethylene

Reon

Polyvinyl Chloride
(PVC)

Relpipe

Poly-Olefin
HDPE and PPR pipes

Cisamer

Poly Butadiene
Rubber (PBR)

Chemicals

Relab

Linear Alkyl Benzene
(LAB)

Reliance Industries Limited 9

Brand

End Uses

Refining, power, fertilisers, petrochemicals and other
industries

Domestic and industrial fuel

Feedstock for polypropylene

Feedstock for petrochemicals such as ethylene, propylene &
fertilisers, etc. and as fuel in power plants

Transport fuel

Aviation fuel

Domestic fuel

Transport fuel

Feedstock for fertilisers and pharmaceuticals

Fuel for power plants and cement plants

Woven sacks for cement, food-grain, sugar, fertiliser; leno bags for
fruits & vegetables, TQ & BOPP films and containers for packaging
textiles, processed food, FMCG, office stationery; components for
automobile and consumer durables, moulded furniture, luggage,
houseware, geo-textiles & fibres for non-woven textiles.

Woven sacks, raschel bags for fruits & vegetables, containers for
packaging edible oil, processed food, FMCG, lubricants, detergents,
chemicals, pesticides, industrial crates & containers, carrier bags,
houseware, ropes & twines, pipes for water supply, irrigation, process
industry & telecom; films for packaging milk, edible oil, salt,
processed food, roto-moulded containers for storage of water, chemical
storage and general purpose tanks, protective films and pipes for
agriculture, cable sheathing, lids & caps, master batches.

Footwear & hotmelt adhesives

Liners for material handling equipment, dock fenders, battery separators,
bobbins and pickers for textile machinery, trolley wheels, prosthetics,
general engineering applications like gears, valves, bushes etc.

Pipes & fittings; door & window profiles, insulation &
sheathing for wire & cables, rigid bottles & containers for
packaging applications, footwear, flooring, partitions, roofing,
I.V. fluid & blood bags.

Agriculture irrigation, water supply projects, Sewerage and drainage,
mines, coal fields, industrial water/fluids/effluents transportation, gas
distribution network, telecom cable ducts, plumbing & construction.

Tyres, tread rubber, conveyor belts, footwear, sports goods,
automotive components, rollers, mechanical goods & dock fenders

Detergents

1 0

Partnering India's new future. Sustainably.

Business/
Brand

Product

Brand

End Uses

Petrochemicals - Polyester & Fibre Intermediates

Paraxylene (PX)

Purified Terephthalic
Acid (PTA)

Mono Ethylene Glycol
(MEG)

Staple Fibre Filament Yarn
Texturised Yarn
Twisted / Dyed Yarn

Stretch yarns
for comfortable fit
and freedom of movement

Cotton Look, Cotton
Feel Yarns

Can dye at boiling water
temperature with
high colour fastness

Recron

Recron
Stretch

Recron
Cotluk

Recron
Dyefast

Recron
Superblack

Dope dyed black with
high consistency in shade

Recron
Superdye

Recron
Kooltex

Recron
Fibrefill

Recron 3S

Recron
Certified

Recron
Low Pill

Recron
FeelFresh

Recron
Micrelle

Bright, brilliant colours
and soft feel, low pill

Moisture management
yarns

Hollow fibres with high
bounce and resilience

Secondary
Reinforcement Produts

Quality Certified
Sleep Products

Polyester Tow & Staple Fibre
with unique low pill properties

Anti microbial
fibres & yarns

Bi-component
filament yarns

Recron
Recrobulk

Hi-bulk fibres for
soft-feel & warmth

Recron Green

Recron
Spunlace

Eco-friendly fibres made
from 100% post-consumer
polyester waste

Speciality polyester fibres

Raw material for PTA

Raw material for polyester

Apparel, home textile, industrial sewing thread, automotive upholstery,
carpets, canvas, luggage, spunlace & non-woven fabrics

Blouse material, denim, shirting, suiting, dress material, T-shirt,
sportswear, swimwear, medical bandages & diapers

Dress material, shirting, suiting, furnishing fabric, curtain & bed sheet

Ladies outerwear, feather yarn for knitted cardigan, decorative
fabric & home furnishing

Apparel, automotive, non-woven & interlining

Woven & knitted apparel, furnishing & home textile

Active sports and high performance wear

Pillows, cushions, quilts, mattresses, furniture, toys &
non-wovens

Construction industry (concrete/mortar), cement (sheet & pipe),
paper industry (conventional & speciality), battery industry, wetlaid
industry (wall papers, filtration, wipes & hygiene products)

Pillows, cushions, blankets & quilts

High-end worsted suitings, upholstery fabrics & socks

Active sportswear, Intimate apparel, socks, home furnishings &
garments used in healthcare industry

Super soft and ultra comfortable fabrics

Sweaters, pullovers, cardigans, shawls & jackets

Apparel & home textiles

High quality non-woven products for the healthcare & hygiene industry

Reliance Industries Limited 11

Business/
Brand

Product

Brand

End Uses

Petrochemicals - Polyester & Fibre Intermediates

Recron ®
RecoSilk

Recron FR

Recron
Duratarp

Recron
Safeband

Relpet

Textiles

Vimal

Vimal Gifting

Retail

Specialty Polyester Filament
Yarns for Silken Shimmer and
Swathes of Colour in Fabrics

Re c o s i l k

Ideal substitute for silk in dress materials, velvet, sarees, etc. and
viscose filament yarn in embroidery thread.

Flame retardant Fibres
& Yarns

Polyester Fibres with increased
abrasion resistance for better
water proof, tear proof and
fade- proof qualities

Structurally modified polyester
fibre with antimicrobial and
antifungal properties surgical
dressings

Polyethylene
Terephthalate (PET)

Suitings, Shirtings,
Readymade Garments

Ready-to-stitch,
take away
fabric in gift packs

Ready-to-stitch,
Take away fabric

Institutional textiles for hospitality, entertainment, transport,
safety etc. Also used in home textiles, fill & comfort products.

Tarpaulin, Tents & Awnings

Crepe and Rolled Bandages

Safeband

Packaged-water, beverages, confectionary, pharmaceutical, agro-chemical
and food products

Fabrics, suits, jackets, shirts & trousers

Fabrics

Reliance Retail

Organised retail

Food & Grocery
Specialty Store

Mini Hypermarket

Hypermarket

Wholesale Store

Electronics
Specialty Store

Fresh vegetables, grocery, general and convenience
merchandise

Grocery, clothing, leisure, beauty and style, electronics and
home merchandise

Grocery, clothing, leisure, beauty and style, electronics,
home merchandise, furniture and jewellery

A wholesale store for business & bulk needs

Computers, mobiles, entertainment, gaming merchandise

Exclusive Apple Store

Range of Apple products like IPod and IMac

Jewellery Specialty Store

Fine jewellery

Apparel Specialty

Men, ladies, children clothing and accessories

Footwear Specialty Store

Books, Music, Toys &
Gifts Specialty Store

Men, ladies, children footwear, sports, handbags and
accessories

Books, music, stationery, toys and gifting merchandise

1 2

Partnering India's new future. Sustainably.

Business/
Brand

Product

Brand

End Uses

Furniture, Furnishing &
Homeware Specialty
Store

Automotive Services &
Products Specialty Store

Iconic Italian Lifestyle
Brand

Authentic Outdoor Foot
wear and Apparel Brand

Design-led furniture sets for the home & home-office, home
furnishings, home decor, crockery, cutlery, glassware,
cookware and kitchen aids

Repair & maintenance services for 2 & 4 wheelers, wide
range of tyres, batteries & other automotive accessories

Apparel, footwear and accessories

Footwear and apparel

Luxury Sportswear Brand

Men’s apparel, footwear and accessories

Italian Luxury Men’s
clothing

Modern Outerwear lifestyle Brand
specializing in footwear for extreme
sports, skateboarding, snowboarding

Men’s apparel, footwear and accessories

Apparel, Footwear & Accessories

Urban Fashion & Lifestyle Brand

Apparel, Footwear & Accessories

Boardsports & active outdoor
lifestyle brand for men

Outdoor Lifestyle Brand for Women
inpired by the beach, coastal and
mountain casual lifestyle

Fashion Forward Footwear and
Accessories Brand for Women

Mens Apparel, Footwear & Accessories

Womens Apparel, Footwear & Accessories

Footwear and accessories

Optical Specialty Store

Spectacles, Sunglasses, Contact Lenses

International Apparel, Accessories
& Home Products Store

Apparel for Women, Men and
Children, Lingerie, Beauty and Home Décor

The Finest Toys in the World

Toys

Office and Personal Stationery

Men, Ladies Sports footwear, clothing & accessories

Office Needs, Office Supplies
and Stationery Store

Iconic Japanese Sports
Performance brand

Transportation fuels

Fleet Management Services

Highway Hospitality Services

Vehicle Care Services

Convenience Shopping

Foods

Auto LPG

GAPCO

Petroleum Retail

Lubricants

Product Flow Chart

Reliance Industries Limited 13

1 4

Partnering India's new future. Sustainably.

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 Kapil

Non Executive Directors
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
K. Sethuraman

Group Company
Secretary and Chief
Compliance Officer

Solicitors & Advocates Kanga & Co.

Auditors

Chaturvedi & Shah
Deloitte Haskins & Sells
Rajendra & Co.

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
P.M.S. Prasad
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

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,
Taluka: Vagra,
Dist. : 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
Registrars & Transfer Agents

Patalganga
B-4, MIDC Industrial Area,
P.O. Rasayani,
Patalganga 410 220
Dist. Raigad
Maharashtra, India
Vadodara
P. O. Petrochemicals
Vadodara - 391 346,
Gujarat, India

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

38th Annual General Meeting on Thursday, June 7, 2012 at 11.00 a.m.
at Birla Matushri Sabhagar, 19, New 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

Financial Highlights

Reliance Industries Limited 15

2011-12

10-11

09-10

08-09

07-08

06-07

05-06

04-05

03-04

02-03

$ Mn

` in crore

Revenue From Operations

66,790 3,39,792 2,58,651 2,00,400 1,46,328 1,39,269 1,18,354

89,124

73,164

56,247

50,096

Total Income

68,007 3,45,984 2,61,703 2,02,860 1,48,388 1,44,898 1,18,832

89,807

74,614

57,385

51,097

Earnings Before Depreciation,
Finance Cost and Tax Expense (EBDIT) 7,825

39,811

41,178

33,041

25,374

28,935

20,525

14,982

14,261

10,983

9,366

Depreciation and Amortisation

2,240

11,394

13,608

10,497

5,195

4,847

4,815

3,401

3,724

3,247

2,837

Exceptional Items

Profit For the Year

Equity Dividend %*

Dividend Payout

Equity Share Capital

Equity Share Suspense Account

Equity Share Warrants

(370)

4,733

3,939

20,040

20,286

16,236

15,309

19,458

11,943

9,069

7,572

5,160

4,104

130

110

100

52.5

2,531

2,385

2,084

1,897

1,631

1,440

1,393

1,045

733

698

3,271

3,273

3,270

1,574

1,454

1,393

1,396

1,682

497

643

Reserves and Surplus

32,005 1,62,825 1,48,267 1,33,901 1,24,730

78,313

62,514

48,411

39,010

33,057

28,931

Net Worth

32,648 1,66,096 1,51,540 1,37,171 1,26,373

81,449

63,967

49,804

40,403

34,453

30,327

Gross Fixed Assets

40,392 2,05,493 2,21,252 2,28,004 2,18,673 1,27,235 1,07,061

91,928

59,955

56,860

52,547

Net Fixed Assets

Total Assets

23,878 1,21,477 1,55,526 1,65,399 1,69,387

84,889

71,189

62,675

35,082

35,146

34,086

58,013 2,95,140 2,84,719 2,51,006 2,45,706 1,49,792 1,17,353

93,095

80,586

71,157

63,737

Market Capitalisation

48,109 2,44,757 3,42,984 3,51,320 2,39,721 3,29,179 1,98,905 1,10,958

76,079

75,132

38,603

Number of Employees

23,166

22,661

23,365

24,679

25,487

24,696

12,540

12,113

11,358

12,915

Contribution to National Exchequer

5,542

28,197

28,719

17,972

11,574

13,696

15,344

15,950

13,972

12,903

13,210

Key Indicators

Earnings Per Share - (`)

2011-12

10-11

09-10

08-09

07-08

06-07

05-06

04-05

03-04

02-03

[excluding Exceptional item]*

1.2

61.2

62.0

49.7

105.3

82.2

65.1

54.2

36.8

29.3

Turnover Per Share - (`)

20.4

1,037.8

790.5

612.9

464.9

958.1

814.2

639.6

525.0

402.8

358.8

Book Value Per Share - (`)

10.0

507.3

463.2

419.5

401.5

560.3

440.0

357.4

289.9

246.7

217.2

Debt : Equity Ratio

0.41:1

0.44:1

0.46:1

0.63:1

0.45:1

0.44:1

0.46:1

0.56:1

0.60:1

EBDIT / Gross Turnover %

Net Profit Margin %

RONW % **

ROCE % **

11.7

5.9

13.4

11.6

11.7

15.9

16.5

5.9

13.4

11.6

7.8

15.5

13.2

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

18.7

9.2

17.0

14.0

8.2

14.8

13.2

In this Annual Report $ denotes US$
1US$ = ` 50.875 (Exchange rate as on 31.03.2012)
* Adjusted for issue of bonus shares in 2009-10 in the ratio of 1:1
** Adjusted for CWIP and revaluation

1 6

Partnering India's new future. Sustainably.

Notice

Notice is hereby given that the thirty-eighth Annual
General Meeting of the members of Reliance Industries
Limited will be held on Thursday, June 07, 2012 at 11.00
a.m. at Birla Matushri Sabhagar, 19, New Marine Lines,
Mumbai 400 020, to transact the following businesses :
Ordinary Business
1. To consider and adopt the audited Balance Sheet as
at March 31, 2012, the Statement of Profit and Loss
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.”
Special Business
5. To re-appoint Shri Nikhil R. Meswani as a Whole-
time Director designated as Executive Director and in
this regard to consider and if thought fit, to pass,
with or without modification(s), the following
resolution as an Ordinary Resolution:
“RESOLVED THAT in accordance with the provisions
of Sections 198, 269, 309 and 317 read with Schedule
XIII and all other applicable provisions, if any, of the
Companies Act, 1956 or any statutory modification(s)
or re-enactment thereof, approval of the members be
and is hereby accorded to the re-appointment of Shri
Nikhil R. Meswani as a Whole-time Director
designated as Executive Director of the Company,
for a period of 5 (five) years with effect from July 01,
2013, on the terms and conditions including
remuneration as set out in the Explanatory Statement
annexed to the Notice convening this Meeting, with
liberty to the Board of Directors (hereinafter referred
to as “the Board” which term shall be deemed to
include any Committee of the Board constituted to
exercise its powers, including the powers conferred

by this resolution) to alter and vary the terms and
conditions of appointment and / or remuneration,
subject to the same not exceeding the limits specified
under Schedule XIII to the Companies Act, 1956 or
any statutory modification(s) or re-enactment thereof.
RESOLVED FURTHER THAT the Board be and is
hereby authorised to do all acts and take all such steps
as may be necessary, proper or expedient to give effect
to this resolution.”

6. To re-appoint Shri Pawan Kumar Kapil as a
Whole-time Director designated as Executive Director
and in this regard to consider and if thought fit, to
pass, with or without modification(s), the following
resolution as an Ordinary Resolution
“RESOLVED THAT in accordance with the provisions
of Sections 198, 269, 309 and 317 read with Schedule
XIII and all other applicable provisions, if any, of the
Companies Act, 1956 or any statutory modification(s)
or re-enactment thereof, approval of the members be
and is hereby accorded to the re-appointment of Shri
Pawan Kumar Kapil as a Whole-time Director
designated as Executive Director of the Company, for
a period of 5 (five) years with effect from May 16, 2013
on the terms and conditions including remuneration
as set out in the Explanatory Statement annexed to
the Notice convening this Meeting, with liberty to the
Board of Directors (hereinafter referred to as “the
Board” which term shall be deemed to include any
Committee of the Board constituted to exercise its
powers, including the powers conferred by this
resolution) to alter and vary the terms and conditions
of appointment and / or remuneration, subject to the
same not exceeding the limits specified under Schedule
XIII to the Companies Act, 1956 or any statutory
modification(s) or re-enactment thereof.
RESOLVED FURTHER THAT the Board be and is
hereby authorised to do all acts and take all such steps
as may be necessary, proper or expedient to give effect
to this resolution.”

By Order of the Board of Directors

K. Sethuraman
Group Company Secretary and
Chief Compliance Officer
April 20, 2012
Registered Office:
3rd Floor, Maker Chambers IV,
222 Nariman Point,
Mumbai 400 021, India
e-mail: investor_relations@ril.com

Reliance Industries Limited 17

Notes:

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

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

In terms of Article 155 of the Articles of Association
of the Company, read with Section 256 of the
Companies Act, 1956, Shri M.L. Bhakta, Shri Hital R.
Meswani, Prof. Dipak C. Jain and Shri P.M.S. Prasad,
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 re-appointed, nature of their expertise in specific
functional areas, names of companies in which they
hold directorships and memberships / chairmanships
of Board Committees, shareholding and relationships
between directors inter-se as stipulated under Clause
49 of the Listing Agreement with the Stock Exchanges
in India, are provided in the Report on Corporate
Governance forming part of the Annual Report.

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

6. Members are requested to bring their attendance slip
along with their copy of annual report to the Meeting.

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

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

(a) The Company has notified closure of Register of
Members and Share Transfer Books from
Saturday June 2, 2012 to Thursday June 7, 2012
(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 08, 2012 and June 14, 2012 to those members
whose names shall appear on the Company’s
Register of Members on June 01, 2012; in respect
of the shares held in dematerialized form, the
dividend will be paid to members whose names
are furnished by National Securities Depository
Limited and Central Depository Services (India)
Limited as beneficial owners as on that date.

10. Members holding shares in electronic form may note
that bank particulars registered against their
respective depository accounts will be used by the
Company for payment of dividend. The Company or
its Registrars 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.

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

12. Pursuant to the provisions of Section 205A(5) and
205C of the Companies Act, 1956, the Company has
transferred the unpaid or unclaimed dividends for the
financial years 1995-96 to 2003-04, to the Investor
Education and Protection Fund (the IEPF) established
by the Central Government.

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

14. Members holding shares in single name and physical
form are advised to make nomination in respect of
their shareholding in the Company. The nomination

1 8

Partnering India's new future. Sustainably.

form can be downloaded from the Company’s website
www.ril.com under the section ‘Investor Relations’.

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

16. Non-Resident Indian Members are requested to inform

Karvy, immediately of :

a. Change in their residential status on return to

India for permanent settlement.

b. Particulars of their bank account maintained in
India with complete name, branch, account type,
account number and address of the bank with
pin code number, if not furnished earlier.

17. Members are advised to refer to the Shareholders’

Referencer provided in the Annual Report.

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

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

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

Item Nos 5 and 6

The Board of Directors of the Company (the ‘Board’), at
its meeting held on April 20, 2012 has, subject to the
approval of Members, re-appointed Shri Nikhil R. Meswani
and Shri Pawan Kumar Kapil as Whole-time Directors,
designated as Executive Directors, for a further period of
5 (five) years from the expiry of their present term, which
will expire on June 30, 2013 and May 15, 2013 respectively,
on the remuneration determined by the Remuneration
Committee of the Board and approved by the Board.

It is proposed to seek Members’ approval for the
re-appointment of and remuneration payable to,
Shri Nikhil R. Meswani and Shri Pawan Kumar Kapil, as
Whole-time Directors, designated as Executive Directors,
in terms of the applicable provisions of the Companies
Act, 1956 (“the Act”).

Broad particulars of the terms of re-appointment of
and remuneration payable to Shri Nikhil R. Meswani and
Shri Pawan Kumar Kapil are as under:

(a) Salary, Perquisites and Allowances per annum

Name

(` in crore)

Salary Perquisites
and
Allowances

Shri Nikhil R. Meswani
Shri Pawan Kumar Kapil

1.15 1.45
0.50 0.75

The perquisites and allowances, as aforesaid, shall
include accommodation (furnished or otherwise) or
house rent allowance in lieu thereof; house
maintenance allowance together with reimbursement
of expenses and / or allowances for utilisation of gas,
electricity, water, furnishing and repairs; medical
reimbursement; leave travel concession for self and
family including dependents; medical insurance and
such other perquisites and / or allowances. The said
perquisites and allowances shall be evaluated,
wherever applicable, as per the provisions of Income
Tax Act, 1961 or any rules thereunder or any statutory
modification(s) or re-enactment thereof; in the
absence of any such rules, perquisites and allowances
shall be evaluated at actual cost. The Company’s
contribution to Provident Fund, Superannuation or
Annuity Fund, to the extent these singly or together
are not taxable under the Income Tax law, gratuity
payable and encashment of leave shall not be included
for the purpose of computation of the overall ceiling
of remuneration. The increment in salary and
perquisites and remuneration by way of incentive /
bonus payable to Shri Pawan Kumar Kapil, as may be
determined by the Board and / or the Remuneration
Committee of the Board, is not to be included for the
purpose of computation of the aforesaid ceiling of
remuneration provided that such payment shall be
within the overall ceiling of remuneration permissible
under the Act. It is clarified that Employee Stock
Options granted / to be granted to Shri Nikhil R.
Meswani and Shri Pawan Kumar Kapil from time to
time, are not to be included for the purpose of
computation of the overall ceiling of remuneration.

(b) Commission

In addition to the salary, perquisites and allowances
as set out above, Shri Nikhil R. Meswani shall be
entitled to receive commission on net profits. The
commission payable to him as also to Shri Mukesh D.
Ambani, Chairman & Managing Director and Shri
Hital R. Meswani, another Whole-time Director of the
Company will be determined by the Board and/or the
Remuneration Committee of the Board for each
financial year. The overall remuneration including

Reliance Industries Limited 19

commission to all three of them shall not exceed 0.40%
of the net profits of the Company as computed in the
manner referred to under Section 198(1) of the Act, or
any statutory modification(s) or re-enactment thereof.
No commission is proposed to be paid to Shri Pawan
Kumar Kapil.

Reimbursement of expenses incurred for travelling,
boarding and lodging including for their respective
spouses and attendant(s) during business trips;
provision of car for use on the Company’s business;
telephone expenses at residence and club membership
shall be reimbursed and not considered as perquisites.

(d) General

(i) The office of Whole-time Director may be
terminated by the Company or the concerned
Director by giving the other 3 (three) months’
prior notice in writing.

(ii) The employment of Whole-time Director may be
terminated by the Company without notice or
payment in lieu of notice:

(cid:1)

if the Director is found guilty of any gross
negligence, default or misconduct in
connection with or affecting the business
of the Company or any subsidiary or
associate company to which he is required
to render services; or

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

in the event the Board expresses its loss of
confidence in the Director.

Company or any of its subsidiary or associate
company.

(iv) The Whole-time Director will perform his duties
as such with regard to all work of the Company
and he will manage and attend to such business
and carry out the orders and directions given by
the Board from time to time in all respects and
conform to and comply with all such directions
and regulations as may from time to time be given
and made by the Board and his functions will be
under the overall authority of the Chairman &
Managing Director.

(v) The Whole-time Director shall adhere to the
Company’s Code of Business Conduct and Ethics
for Directors and Management personnel.

Shri Nikhil R. Meswani and Shri Pawan Kumar Kapil satisfy
all the conditions set out in Part - I of Schedule XIII to the
Act for being eligible for the re-appointment. They are not
disqualified from being appointed as Directors in terms of
Section 274(1) (g) of the Act.

The above may be treated as an abstract of the terms of
re-appointment of Shri Nikhil R. Meswani and Shri Pawan
Kumar Kapil under Section 302 of the Act.

Shri Nikhil R. Meswani and Shri Pawan Kumar Kapil are
interested in the resolution as set out at Item Nos 5 and 6
of the Notice which pertain to their respective
re-appointments and remuneration payable to them.
Further, Shri Hital R. Meswani, a Whole-time Director, may
be deemed to be concerned or interested in the resolution
pertaining to the re-appointment of, and remuneration
payable to Shri Nikhil R. Meswani as they are related to
each other. Save and except the above, none of the other
Directors of the Company is, in any way, concerned or
interested in the resolutions.

The Board commends the resolutions as set out at Item
Nos 5 and 6 of the Notice for your approval.

(iii) Upon termination by whatever means of the

Whole-time Director’s employment:

By Order of the Board of Directors

(cid:1)

The Director shall immediately tender his
resignation from the office as Director of the
Company and from such other offices held
by him in the Company, in any subsidiary
and associate company and other entities
without claim for compensation for loss of
office,

The Director shall not without the consent
of the Company at any time thereafter
represent himself as connected with the

2 0

Partnering India's new future. Sustainably.

Management's Discussion and Analysis

Forward-looking statements

The report contains forward-looking statements, identified
by words like ‘plans’, ‘expects’, ‘will’, ‘anticipates’,
‘believes’, ‘intends’, ‘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

FY 2011-12 was a challenging year. The global economy,
barely a year after recession, witnessed lower economic
growth, resulting primarily from the Euro Zone debt crisis
and high oil prices, which were fuelled by uncertainties of
supply. Rising unrest in the Middle East and North Africa
(MENA) resulted in unprecedented levels of crude oil
volatility. The European economies stagnated and the US
witnessed a downgrade in its credit rating, while the
growth engines of the global economy, China and India
were forced to tighten liquidity to tame rising inflation. In
addition, civil unrest in Libya and the tsunami in Japan
posed further challenges. According to the International
Monetary Fund (IMF), the global economy is estimated
to grow at a modest pace of 3.8% in 2011, as compared to
a robust 5.2% in 2010.

These global events had a negative impact on demand,
particularly in transportation fuels and petrochemical
products. High crude oil prices hit the refining industry
worldwide and resulted in reduced profitability. Despite
the challenging environment, Reliance Industries Limited
(RIL) performed reasonably well and grew its revenues by
31%. Its earnings were essentially flat at the PBDIT, PBT
and net profit levels. RIL achieved its record level of
exports which were higher by 41.8% at ` 208,042 crore
($ 40.9 billion) as against ` 146,667 crore in FY 2010-11.

RIL’s consolidated revenue from operations for the year
ended March 31, 2012 was ` 358,501 crore ($ 70.5 billion),
an increase of 34.9% on a year-on-year basis. Profit after
tax was at ` 19,724 crore ($ 3.9 billion), an increase of 2.2%
as against ` 19,294 crore for the previous year.

RIL’s performance can be attributed to its strong integrated
energy portfolio and increasing demand for its products.
The robust demand was underpinned by urbanization and
growing disposable incomes in India and several emerging
market economies.

A transformational step was taken in oil and gas
exploration business- the completion of the partnership
between RIL and BP. This strategic partnership is
unprecedented as it straddles India’s entire gas value
chain.

Operationally, RIL completed three years of operations at
KG-D6. Production from KG-D6 was 5.67 million barrels
(MMBL) of crude oil and condensate, and 551.31 billion
cubic feet (BCF) of natural gas. In the downstream
segments, RIL maintained operating rates upwards of
100% in the refining and petrochemicals business. The
Company processed 67.6 million tonnes (MMT) of crude,
the highest ever, at its Jamnagar refinery complex.

For the seventh consecutive year, RIL was featured in the
Fortune Global 500 list of the world’s largest corporations.
Its rankings comprised:

(cid:1)

134 based on sales

119 based on profits

Noteworthy events

RIL-BP Partnership

On February 21, 2011, RIL and BP announced their
strategic alliance. Under the aegis of this alliance, BP took
30% participatory interest in 21 oil and gas production
sharing contracts operated by RIL in India, including
the KG-D6 block. The 21 oil and gas blocks cover
approximately 220,000 square kilometres. The partnership
combines BP’s world-class deepwater exploration and
development capabilities with RIL’s expertise in project
management and operations. It will focus on exploring,
discovering and producing hydrocarbons in India’s deep
water blocks and will aim at significantly contributing to
India’s energy security.

Further, on November 18, 2011, RIL and BP announced
the incorporation of India Gas Solutions Private Limited, a
50:50 Joint Venture (JV) company, which will focus on global
sourcing and marketing of natural gas in India. This JV
company is an integral part of the relationship between
RIL and BP, and it establishes the commitment of both
entities to the Indian market. The demand for gas has been
growing at an exponential rate and both RIL and BP

Reliance Industries Limited 21

anticipate natural gas to emerge as the preferred choice of
fuel, given its properties as a cleaner and more sustainable
fuel source.

Financial Performance
Revenue from
operations

` 339,792 crore
$ 66,790 million

BP’s stake was at an aggregate consideration of $ 7.2 billion,
subject to completion adjustments for interests to be
acquired in the 21 production sharing contracts. Further
performance payments of up to $ 1.8 billion could be paid
based on exploration success that result in the
development of commercial discoveries.

RIL-SIBUR Joint Venture

SIBUR is the largest petrochemical company in Russia
and Eastern Europe. On February 21, 2012, RIL and SIBUR
formed a JV called Reliance Sibur Elastomers Private
Limited. The JV will be the first manufacturer of butyl
rubber in India and with its targeted production of 100,000
tonnes of butyl rubber per annum, it will be the fourth
largest producer globally. The JV will cater to the demand
for synthetic rubber from the Indian automotive industry,
which currently exceeds 75,000 tonnes per year and is
being met through imports. Investment in the JV is in line
with RIL’s vision of emerging as a significant player in the
global synthetic rubber market. RIL’s share in the JV will
total 74.9% while SIBUR will account for the rest. The JV
will invest $ 450 million in setting up its facility, which is
expected to be commissioned in 2014.

RIL’s Share Buy-back Programme

RIL announced a share buy-back programme on January
20, 2012, which will remain open up to January 19, 2013 or
earlier as may be determined by the Company after
necessary compliances. This buy-back programme is the
largest-to-date in the history of Indian capital markets.

The Board of Directors of the Company at its meeting
held on January 20, 2012 unanimously approved the buy-
back of up to twelve crore fully paid up equity shares of
` 10 each, at a price not exceeding ` 870 per equity share,
payable in cash, up to an aggregate amount not exceeding
` 10,440 crore from the open market through stock
exchange(s).

During the year, Company has bought and extinguished
36,63,431 equity shares. Consequently a sum of ` 4 crore
has been appropriated to Capital Redemption Reserve
Account from Statement of Profit and Loss and ` 275 crore
has been reduced from Securities Premium Reserve. The
paid-up equity share capital of the Company as on
March 31, 2012 has been reduced to ` 3,271 crore.

PBDIT

PBT

Cash profit

Net profit

` 39,811 crore
$ 7,825 million

` 25,750 crore
$ 5,061 million

` 31,994 crore
$ 6,289 million

` 20,040 crore
$ 3,939 million

+ 31%
+ 15%

(-) 3%
(-) 15%

+ 2%
(-) 11%

(-) 7%
(-) 19%

(-) 1%
(-) 13%

The net profit for FY 2011-12 was at ` 20,040 crore ($ 3,939
million) with a Compounded Annual Growth Rate (CAGR)
of 20% over the past 10 years. RIL has announced a
dividend of 85% amounting to ` 2,941 crore ($ 578 million),
including dividend distribution tax. This is the highest
pay out ever by Reliance continuing its commitment to
distribution in a prudent manner.

Highlights of RIL’s consolidated performance for the year
are as follows:

(cid:1)

Revenue from operations increased by 34.9% to
` 358,501 crore ($ 70.5 billion)

PBDIT decreased by 1.5% to ` 40,941 crore
($ 8.0 billion)

Profit Before Tax increased by 5.1% to ` 25,338 crore
($ 5.0 billion)

Cash Profit decreased by 3.5% to ` 32,590 crore
($ 6.4 billion)

(cid:1) Net Profit increased by 2.2% to ` 19,724 crore

($ 3.9 billion)

RIL continued to play a pivotal role in the growth of India’s
economy. It accounted for:

(cid:1)

14% of country’s exports

5.5% of the indirect tax revenues

4% of the market capitalisation

(cid:1) Weightage of 9.3% in the Bombay Stock Exchange

(BSE) Sensex

(cid:1) Weightage of 7.8% in the National Stock Exchange

(NSE) Nifty

2 2

Partnering India's new future. Sustainably.

Financial Review

RIL delivered superior financial performance with
improvements across key parameters. The revenue from
operations achieved for the year was ` 339,792 crore
($ 66.8 billion), a growth of 31.4% over the previous year.
The increase in revenue was due to 2.2% rise in volumes
and 29.2% rise in prices. During the year, exports, including
deemed exports, were higher by 41.8% at ` 208,042 crore
($ 40.9 billion).

The consumption of raw materials increased by 42.2% from
` 193,234 crore to ` 274,814 crore ($ 54.0 billion). This was
mainly on account of higher crude oil prices. Traded goods
purchases were ` 1,441 crore ($ 283 million) as compared
to ` 1,464 crore in the previous year.

Employee cost was ` 2,862 crore ($ 563 million) for the
year as against ` 2,624 crore in the previous year.

The operating profit before other income declined by
11.8% from ` 38,126 crore to ` 33,620 crore ($ 6.6 billion).
The net operating margin for the period was 10.2% as
compared to 15.4% in the previous year.

Other income was higher at ` 6,192 crore ($ 1.2 billion)
against ` 3,052 crore, primarily due to higher average cash
balances.

EBITDA decreased by 3.3% from ` 41,178 crore to ` 39,811
crore ($ 7.8 billion).

Interest cost was higher at ` 2,667 crore ($ 524 million) as
against ` 2,328 crore. The gross interest cost was higher
at ` 3,097 crore ($ 609 million) as against ` 2,802 crore
for the previous year on account of higher foreign
exchange differences. The interest capitalised was lower
at ` 430 crore ($ 84 million) as against ` 474 crore in the
previous year.

Depreciation (including depletion and amortisation) was
lower at ` 11,394 crore ($ 2.2 billion), against ` 13,608
crore in the previous year, primarily on account of lower
depletion charges in oil and gas business following the
transfer of 30% participating interest to BP.

Profit after tax was ` 20,040 crore ($ 3.9 billion) as against
` 20,286 crore for the previous year, a decrease of 1.2%.

The earning per share (EPS) for the year was ` 61.2 ($ 1.2).

The Company is debt-free on a net basis as compared to
gearing level of 13.5% as on March 31, 2011. Return on
capital employed was at 11.6% and return on equity was
at 13.4%.

During the year, the Company has issued and allotted
13,48,763 equity shares to the eligible staff of the Company
and its subsidiaries under Employees Stock Option
Scheme.

The net capital expenditure for the year ended March 31,
2012 was ` 12,563 crore ($ 2.5 billion).

During the year, a total of ` 28,197 crore ($ 5.5 billion) was
contributed in the form of taxes and duties.

RIL maintained its status as India’s largest exporter.
The exports, including deemed exports, were at ` 208,042
crore ($ 40.9 billion) as against ` 146,667 crore in the
previous year.

RIL exported to 119 countries around the world.
The exports represent 61% of the RIL’s revenue from
operations. Petroleum products constitute 88%, while the
balance is contributed by petrochemicals.

Resources and Liquidity

RIL continuously undertakes liability management to
reduce cost of debt, to diversify its liability mix and extend
the average maturity of its long-term debt. In FY 2011-12,
the Company took advantage of low interest rates and
raised capital at historically low costs. During the year,
RIL refinanced $ 1.09 billion of external commercial
borrowings at very competitive rates, thus reducing its
cost of borrowing and extending its maturity to an average
of 5 years. The Company also signed a $ 400 million
equivalent facility backed by guarantee from SACE, the
Italian Export Credit Agency, with a door-to-door tenor of
13 years to part-finance the proposed expansion of its
petrochemical facilities, to set up a new gasification plant
and refinery off-gas cracker.

Additionally, Reliance Holding USA Inc., a wholly-owned
subsidiary of RIL raised $ 1.0 billion through the issuance
of 5.4%, 10-year Guaranteed Senior Notes in February
2012. The notes were priced through RIL’s secondary
curve and were oversubscribed over 8 times as a result of
significant investor demand, allowing Reliance to
considerably extend its maturity profile. This offering was
the first corporate bond from India in 2012 and it thus re-
opened the international bond market for India. The
transaction was also accredited as the largest high grade
private corporate issuance in the Asian Oil & Gas sector
(including Japan and Australia) and the emerging markets
in the previous twelve months. RIL further priced $ 500
million re-opening of its 5.4% Guaranteed Senior Notes.
The transaction was oversubscribed approximately

Reliance Industries Limited 23

7.5 times and priced through secondaries with the support
from 213 accounts across Asia, Europe and the US.

As on March 31, 2012, RIL’s total debt was at ` 68,259
crore ($ 13.4 billion). Over 86% of its long-term debt and
almost all of RIL’s short-term debt was denominated in
foreign currencies.

RIL’s gross debt to equity ratio, including long-term and
short-term debt, as on March 31, 2012 was at 0.41, while
the net debt to equity ratio was nil. As on March 31, 2012,
RIL’s net gearing was nil.

RIL’s cash and cash equivalents as at March 31, 2012
amounted to ` 70,252 crore ($ 13.8 billion). The increase in
cash was primarily driven by a receipt of the balance
consideration from BP. RIL continued to efficiently manage
its surplus by placing them in liquid, highly rated
instruments, such as bank fixed deposits, CDs, Government
securities and bonds.

RIL’s financial discipline and prudence is also reflected in
the strong credit ratings ascribed by rating agencies.
Moody’s has rated RIL’s international debt at investment
grade Baa2, with ‘positive’ outlook. S&P has rated RIL’s
international debt as BBB with a ‘positive’ outlook. Both
these rating agencies continue to provide a rating to RIL,
which is a notch above India’s sovereign rating. RIL’s
long-term debt is rated AAA by CRISIL and ‘Ind AAA’ by
Fitch, the highest rating awarded by both these agencies.
RIL’s short-term debt is rated P1+ by CRISIL, the highest
credit rating assigned in this category.

Business Performance

OIL & GAS EXPLORATION AND PRODUCTION
BUSINESS

Operating Environment

As per International Energy Agency (IEA) estimates,
global upstream oil and gas investment grew strongly in
2011, hitting a new record of over $ 550 billion. This capital
spending was 9% higher than in 2010 and almost 10%
higher than the previous peak in 2008.

Annual upstream investment in nominal terms more than
quadrupled between 2000 and 2011. It increased by 120%
over this period in real terms, i.e., adjusted for cost inflation,
as investment shifted to more complex projects with higher
costs per barrel per day of capacity added.

Crude prices increased by 40% during the year wherein
Brent oil prices averaged a record $ 113/bbl as compared
to $ 86.7/bbl in the previous year.

On the contrary, increasing visibility on the potential of
shale gas resulted in the US benchmark Henry Hub gas
prices averaging at $ 3.66/MMBTU vis-à-vis $ 4.13/
MMBTU in FY 2010-11. Prices remained range-bound in
the US due to excess drilling and lack of export
infrastructure. However, the Asian LNG prices remained
linked to crude oil and spot prices touched $ 13-14/
MMBTU. The oil demand, at 89 million barrels per day,
was at a record high, owing primarily to the demand growth
from emerging market countries.

LNG markets

In the past 5 years there has been a 40% increase in the
global LNG production capacity, from approximately
176 MMT per year at the end of 2005 to 275 MMT per year
at the end of 2011.

By the end of 2011, 19 countries were exporting LNG, as
compared to 12 countries prior to 2000. The list of LNG
importing countries has grown to 26 in 2011 from 12 prior
to 2000.

Rapid expansion of LNG trade in recent years has occurred
primarily through the commercialisation of large reserves
of conventional resources and interest in developing
unconventional resources, such as natural gas shale
formations, has also grown significantly. The results are
already noticeable in North America, where the current
development of shale resources has led to a reduction in
demand for its imports.

USA Shale Gas

In the US, demand for natural gas in both the commercial
and the residential sectors was 24.4 TCF, a record high
volume as per EIA’s report on annual natural gas
consumption. In order to fulfil the increased demand and
new forms of supply, pipeline capacity expansion
projects were undertaken with reported additions of over
10 BCF/D.

On the supply side, natural gas production increased to
4.8 BCF/D in 2011, a year-on-year increase of 7.9%, which
is the largest increase ever recorded. The gas demand
growth was not able to keep pace with supply growth,
thereby causing the US gas storage inventory to reach
record ever levels and gas prices reaching 10-year lows.
Historically, the natural gas rig count drops sharply in a
high production level environment. However, the shift
towards liquids rich plays, where natural gas is essentially
a by-product, has changed the US hydrocarbons industry.
In December 2011, it was estimated that close to 60% of

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Partnering India's new future. Sustainably.

the natural gas rigs (as defined by the Smith Bits rig count)
were drilling for hydrocarbon plays with enough liquids
to stay active under depressed gas prices. The
announcement of shut-ins, the lowering of rig counts and
further coal-to-gas switching would have normally re-
balanced supply and demand, but with storage at a record
surplus, gas prices continued to witness downward
pressure and increased domestic demand and export for
LNG will take several years to materialise.

RIL’s Performance

KG-D6 Block

KG-D6 gas catered to demand from 56 customers in critical
sectors like fertiliser, LPG, power, CGD, steel,
petrochemicals and refineries. KG-D6 gas fields completed
1,092 days of 100% uptime and zero-incident production.
An average daily gas production from KG-D6 block for
the year was 42.65 MMSCMD. The cumulative gas
production was 1,808 BCF since inception, of which 551.31
BCF was produced in FY 2011-12. An average oil and
condensate production for the year from the block was
15,481 barrels per day. The cumulative production of oil
and condensate was 19.44 MMBL since inception, of
which 5.67 MMBL was produced in FY 2011-12.

In the D1-D3 gas fields, 22 wells have been drilled till date,
of which 18 were producer wells. Of these, 2 wells were
drilled during this year. Extensive reservoir studies are
underway for augmenting additional production with the
integrated (or combined or joint) efforts of RIL and BP’s
technical teams.

Based on the production data vis-a-vis original production
geological model, validated by experts, it appears that:

(cid:2)

decline in pressure / production has been higher than
originally predicted;

volumes connected to existing wells is lower than
envisaged;

gas outside the main channel is in small uneconomic
volumes and not participating in production.

In view of the above, the Company has restated its Proved
Reserves downwards. The guidelines issued by ICAI have
been followed while in categorising reserves. The proved
reserves have also reduced due to sale of participating
interest to BP.

6 wells in the D26 field were producer wells. The well MA-
2, which was earlier a gas injection well, was converted to
a production well since April 2010.

Optimised Field Development Plan (OFDP) for the
development of 4 satellite discoveries was approved by
the Government of India in January 2012. Engineering
activities, which are yet to commence will determine the
future course of action. There have been re-estimation of
reserves in these discoveries and RIL has restated the
reserves downwards based on such results.

In addition, RIL has declared the commerciality of
discovery D34 of KG-D6 and restated the Proved Reserves
upwards based on re-estimation.

Revised plan of development for D26 field submitted
to the DGH. Further an integrated development plan
for gas discoveries in the KG-D6 block is being
conceptualised to maximise capital efficiency and
accelerate monetisation.

Other Domestic Blocks

The Company made a discovery in the first well drilled in
CY-D6 block – Well SA1 – Discovery Dhirubhai 53. The
appraisal work programme submitted which is under
review with DGH.

The Company submitted a proposal for commerciality of 8
discoveries in CB-10 block and also notified declaration
of commerciality for D32 and D40 in NEC-25 block.

During the year, as part of reassessment of its portfolio
together with BP, RIL has considered 5 blocks as
relinquished in its books and initiated the formal
process of relinquishing these blocks. In addition to the
above, RIL also relinquished 5 additional blocks from
its portfolio.

Consequently, RIL’s domestic oil and gas portfolio
consists of 17 exploration blocks excluding KG-D6, CBM,
Panna-Mukta and Tapti.

The Company has issued arbitration notices in respect of
obligation of Minimum Work Programme stipulated in the
Production Sharing Contracts for four blocks relinquished
by the Company. The amounts payable for the unfinished
work under the Minimum Work Programme were agreed
upon and settled in October, 2006 between the Government
and the Company and were paid. Acting under a
subsequent New General Policy promulgated on
December 17, 2007, the Government reopened the issue
and made further claims against the Company. The
arbitrations relate to refund of the further amounts
recovered subsequently by the Government from the
Company. The Company has been advised that recovery
of additional amounts by the Government is unsustainable

Reliance Industries Limited 25

and the amounts in the four arbitration notices aggregate
to $ 8,899,242.07.

gas production in FY 2015 subject to necessary approvals
from regulatory authorities.

The Company has also issued a notice of arbitration to
the Government in respect of Company’s entitlement to
recover the entire amount of contract costs incurred by
the Company as stipulated in the Production Sharing
Contract. The Company has been advised that the
Government cannot deny cost recovery of any element of
contract costs on the ground that the levels of production
mentioned in the development plan were not being
achieved. The Company is following the required
procedure for progressing the arbitrations.

Panna-Mukta and Tapti Fields

The Panna-Mukta fields produced 10.06 MMBL of crude
oil and 71.24 BCF of natural gas in FY 2011-12, growing
8% and 37% respectively over the previous year, which
was impacted due to a shutdown on account of a failure
of sub-sea hose system and parting of anchor chains to
the SBM.

Tapti fields produced 0.88 MMBL of condensate and 73.79
BCF of natural gas in FY 2011-12, a decline of 28% and
22%, respectively over the previous year. This decrease
in production was due to a natural decline in the reserves.

Panna SPM, which had a major failure in July 2010, resulting
in a complete shutdown of oil and gas production for 3
months, was repaired and resumed operations. The entire
SPM system is planned to be replaced in FY 2012-13.

Coal Bed Methane

RIL holds 3 CBM blocks in Central India, which include
Sohagpur (East), Sohagpur (West) and Sonhat (North) in
the domestic unconventional portfolio. Exploration phases
for Sohagpur East and West blocks were completed and
these blocks entered their development phase. RIL has
completed the following operations in these blocks:

(cid:2) Drilled, logged and tested over 45 core holes for gas

content, permeability and coal properties

(cid:2) Drilled over 85 production wells

Based on the additional number of wells and core holes
drilled and the results achieved, proved reserves for the
CBM blocks have been restated upwards.

Further, RIL appointed consultants for subsurface and
surface facilities design and sent a proposal for CBM
pricing to MoPNG for approval. RIL plans to achieve first

Shale Gas

RIL entered into three JVs in 2010 as part of its strategic
focus on pursuing partnerships with experienced and
successful operators in the fast growing resource base of
shale gas in North America. In addition to these JVs with
Chevron and Carrizo in Marcellus shale play of
Pennsylvania and Pioneer Natural Resources in Eagle Ford
shale Play of South Texas, RIL and Pioneer also partnered
in the development of midstream assets through an equity
investment for servicing the gathering needs of Pioneer
upstream JV. Reliance’s current assets are now most
strategically located within the premier shale plays of the
US, the Marcellus in Pennsylvania and the Eagle Ford in
South Texas.

JV activities focused on further development which
included:

(cid:2) Drilling a total number of 231 wells across the JVs

(cid:2)

Focus on drilling in liquid rich wells

(cid:2) Gathering agreements for gas and liquid in both plays

(cid:2)

Implementing cost savings in drilling, fracking and
mid-stream operations

Pioneer JV Operations

Pioneer JV operated 12 rigs with a focus on enhancing
production, assessing additional portions of the play, while
testing new procedures to improve drilling performance
and lower costs. Reliance’s share of production from this
JV was 41.7 BCFe for the year. The JV successfully pursued
a strategy of prioritising drilling in liquid rich areas.
Approximately 59% of the production was of liquids.

The year also saw significant expansion in the mid-stream
JV to increase capacity for handling higher production
from upstream JV as well as third party volumes.

In 2012, tests conducted in Eagle Ford drilling included

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Partnering India's new future. Sustainably.

further pad drilling to evaluate optimum well spacing and
to capture the efficiencies and cost reductions seen with
multi-well pads. Other active Eagle Ford projects included
the implementation and evaluation of artificial lift to keep
oil and wet gas well unloaded. After extensive study and
research, it was determined that both gas lift and rod
pumping were technically viable options. The JV is
currently evaluating economics as well as their pros and
cons. Efforts are also underway to install additional
centralised compression at multiple gathering points to
assure continued flow and reduce system pressures.

Chevron JV Operations

During the year, the Chevron JV operated 5 rigs with
accumulative production of 8.9 BCFe attributable to
Reliance.

To ensure value optimisation by moderating current
development, the number of rigs was reduced to 4 as of
March 31, 2012. Efforts to optimise well performance were
initiated in Marcellus with the drilling of longer laterals.
This effort will help to improve project economics of the
venture’s 315,000 gross acreage position in the future.

Delays were seen in pipeline construction resulting in
delayed production on line. Additional delays from
regulatory, logistic and surface issues challenged the
efforts in getting wells turned to sales, but these
constraints are expected to be alleviated by mid-2012.

Carrizo JV Operations

Carrizo commenced JV operated production in October
2011 with a production of 4.3 MCFPD from the core
Northeast Pennsylvania (NEPA). The JV produced
1.8 BCFe, attributable to Reliance during the year with
2 operational rigs.

During the year, the JV concentrated development plans
in NEPA. The NEPA region was equipped with newly
constructed pipeline infrastructure, which can efficiently
transport gas to markets with flexibility to maximise net-
back. Additionally, RIL firmed pipeline transportation
contracts, which allowed its gas to flow on the congested
interstate pipeline systems.

Conventional Hydrocarbons: International Business

Reliance has 10 blocks in its international conventional
portfolio, including 3 in Yemen (1 producing and
2 exploratory), 2 each in Kurdistan, Peru and Colombia
and 1 in Australia amounting to a total acreage of over
51,000 sq. km. During the year, the following activity was

undertaken as part of the exploratory campaign:

(cid:1)

2D seismic data acquisition of 42 LKM in Yemen
block 37

3D seismic data acquisition of 500 sq. km. in
Colombia blocks

(cid:1) Well testing in Sarta block in Kurdistan

The results of seismic survey in Block-41 (Oman) and well
drilling in Block-K (East Timor) were not encouraging.
Reliance Exploration & Production DMCC (REP DMCC)
does not propose to carry on any further exploration
activities in theses blocks. Hence, REP DMCC has
relinquished Oman -Block 18, Oman - Block 41 and East
Timor Block-K where REP DMCC had 70%, 75% and 75%
participation interest respectively. The expenditure
incurred on these blocks has been fully provided for in
the books of REP DMCC, a wholly-owned subsidiary of
RIL.

Future Outlook

It is expected that global energy consumption growth will
average at around 1.6% per annum over the next two
decades. Of this, non-OECD energy consumption is
expected to be 54% higher by 2030, averaging 1.7% growth
per annum, and accounting for 74% of the global energy
growth. OECD energy consumption in 2030 is expected to
be higher by 8%, with growth averaging at 0.3% per annum
over the next two decades. The fuel mix will change
relatively slowly due to long asset lifetime, but gas and
non-fossil fuels will gain share at the expense of coal and
crude oil. The fastest growing fuels are expected to be the
renewables (including biofuels), which will grow at 7.8%
per annum in the 2009-2035 time frame. Among the fossil
fuels, gas is expected to grow the fastest at 1.7% per annum.

Non-OECD countries are likely to account for 80% of the
global rise in gas consumption, with growth averaging at
around 3% per annum. Demand growth is expected to be
the fastest in non-OECD Asia (4.3% per annum) and the
Middle East (3.9% per annum).

LNG

North America was once considered to be a likely
destination for LNG supplies but increase in the US natural
gas production and decreasing prices in the US markets
have resulted in movement of LNG supplies to higher-
priced markets in South America, Europe and Asia instead.
It is likely that significant shale resources also exist in
other large consuming countries, including China and

Reliance Industries Limited 27

several European nations. Although development of shale
resources in China and other countries could slow the
growth of their demand for imports, exploitation of
unconventional resources will not necessarily be
countervailing to growing international trade.

The demand for natural gas in India is expected to witness
a CAGR of 20% over the next five years and could be
touching 359 MMSCMD by 2017. India’s domestic
production by 2017 will only be 209 MMSCMD, which
implies that LNG imports will be nearly 150 MMSCMD
(~42% of domestic consumption), making India a
significant player in the global gas market.

be evaluated with 6 wells (4 horizontal and 2 vertical).
Additionally, seismic acquisitions will aid in the placement
of laterals to optimise well performance. To further enhance
this evaluation, the JV has successfully retrieved whole
core of the Marcellus Shale, which will be analysed to
further assess ‘C-County’ reservoir properties.

The Pioneer JV will continue to focus on liquid rich areas
of their acreage and on capital efficiencies, whilst in parallel
fully appraising the remaining acreage. This JV will provide
a dominant portion of our revenues and earnings in
FY 2012-13 due to high liquids content and number of
producing wells.

Shale Gas

REFINING AND MARKETING BUSINESS

FY 2012-13 will be a challenging year for shale gas, given
the continuous weak gas prices, increasing wells costs in
Eagle Ford due to market pressures and the need for drilling
activity obligations to hold certain oil and gas leases,
which will potentially expire in the near term. In light of the
current gas supply and industry conditions, the JVs will
take a long-term view around commodity price fluctuations,
and will move forward with execution and capital efficiency
improvement plans for enabling both cost reductions and
well performance enhancement.

In FY 2012-13, RIL will begin to transition into a post carry
period in both the Carrizo and Pioneer JVs. It is expected
that the business environment will be challenging, both
for commodity pricing and service industry optionality.
To meet these challenges, RIL will work with the JV partners
to ‘right size’ levels of activity and portfolio mix, based on
commodity pricing, industry conditions and various ‘self-
help’ initiatives. These efforts will aid in maximising returns
on capital expenditures for 2012, while retaining high value
acreage in the JVs.

The Chevron JV has set aggressive cost reduction targets
for FY 2012-13 with cost improvements to be achieved in
both drilling and the completion of wells. In addition, to
reduce location costs, efforts to maximise the number of
producing wells per pad will be underway. New
technology and processes will be deployed to collect, store
and use water for both drilling and completion operations,
which will aid in offsetting the low gas price environment
and increased well costs.

Exploratory efforts in Carrizo JV operations for FY 2012-13
will be focused on assessing approximately 90,000 acres
located in Central PA (‘C Counties’) which will preliminarily

Summary

FY 2011-12 was a year of sharp contrasts. In the first half
the environment was very supportive, in part a result of
Japanese refinery shutdowns post the tsunami. This
culminated in a record level of business underlying
performance in 2Q. But in the second half of the year a
number of factors came into play resulting in a very
challenging environment — concerns about the
robustness of the economic recovery strengthened,
particularly in Europe; Japanese fuel oil demand for power
generation helping crush light to heavy crude differentials;
and a strong rally in crude prices as a result of Iranian
political tension that did not fully pass through to product
markets.

It was a year in which there were several investments and
actions to ensure that Reliance’s competitive advantage
was maintained. These included debottlenecking of
important process unit capacities, increased recovery of
high value products through enhanced operating
efficiency, and various energy conservation measures. On
the market side, eight new crudes were run for the first
time consistent with the strategy of always looking for
the most economic feedstock; and there was an increase
in placing middle distillates and gasoline into higher value
eastern markets. Marketing volumes to the domestic Indian
state oil companies were above FY 2010-11 with 8.5 MMT
of gasoil compared to 7 MMT in FY 2010-11.

The market has moderately readjusted as FY13 has
commenced as expected. But there are many challenges
ahead. Energy costs for eastern refiners are now
significantly higher than in the West; there is a significant
level of new refining capacity coming on in India as well

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as China and the Middle East both adding to product
availability and competing for heavier crudes. However,
the refining margin scenario may improve due to demand
recovery from emerging markets and mothballing of old
and inefficient refineries in US/Europe. Apart from these
factors, there are also regular delays in new capacities
that can potentially help the cycle sustain for the medium
term. The business has identified a suite of investments
and actions to ensure that not only will the business
compete in this environment but actually significantly
enhance medium term performance without any real
improvement in the external environment.

Operating Environment

Crude Oil

Oil prices started the year strongly with the removal of
most Libyan production (1.6 MBPD) from the market. This
also resulted in light sweet crudes fetching higher
premiums over the heavier grades, pushing the light-heavy
differentials to over $ 5/bbl. Brent prices then declined by
over $ 10/bbl by the middle of the year. But all this was
reversed in the second half with Brent prices rallying back
to about $ 125/bbl and the light heavy differential
contracting sharply.

WTI continued to trade at a considerable discount to
Brent as a result of infrastructure constraints preventing
the new Canadian and northern US crudes being able to
access the Gulf Coast. This gave the Mid-Western refiners
access to supernormal returns.

According to IEA, oil demand in FY 2011-12 grew
approximately to 89.1 million b/d (+0.8 MBPD y-o-y).
OECD nations witnessed a demand decline of almost 600
KBPD, while the non-OECD nations, led by China,
witnessed a demand growth of over 1.3 MBPD. Crude
supply increased by over 1.2 MBPD with negligible
contributions from non-OPEC countries.

Average Crude Oil Prices ($ / bbl)

FY 2010-11

FY 2011-12

Max Min Average Max Min Average

Brent
Dated

WTI
Dubai

116.9

106.8
111.6

67.6

65.6
68.2

86.7 128.2 102.7

83.3 113.7
84.2 124.2

75.3
96.5

114.7

97.2
110.1

(Source: Platts)

Refinery Capacity and Utilisation

An estimated 1.4 MBD of refining capacity was added in
FY 2011-12. However, with closures in the US refineries,
the net capacity additions for the year were about 550
KBPD. Average refinery utilisation rates for the year
remained largely unchanged for North America (83.4%)
and Asia (82.5%). Europe, however, witnessed a decline
of almost 2% in the refinery operating rates, to 76.7%.
This compares to utilisation rates for Jamnagar of close
to 110%.

Margins

The first half of the year was very positive with margins
led by demand for middle distillates and underpinned by
incremental Japanese import demand. Complex margins at
Singapore hit a peak of over $ 10/bbl in August and
averaged more than $ 8.83/bbl over the year, comparable
to the very strong market of 2008.

China halted its gasoil exports over the summer to avoid
power cuts from burning less coal to meet environmental
commitments, boosting middle distillate cracks. Two of
the largest refineries in Asia - Taiwan’s Formosa and
Singapore’s Bukom region, suffered unexpected outages
providing further upside to the margins for Asian refiners.

Margins in the US were unreasonably high on account of
the wide gap between WTI from other global crude
markers. High unemployment and economic gloom resulted
in slow growth in oil product demand in the US but refinery
closures and reconfigurations, access to cheap gas as
well as healthy demand from export markets, allowed the
US refiners to improve their margins on a year-on-year
basis.

Singapore

Europe

$/bbl

FY-11 FY-12 FY-11 FY-12 FY-11 FY-12

-4.5
11.4
18.2
17.8
-2.5

7.4
10.3
15.7
13.2
-9.2

18.4
24.4
32.3
29.2
3.5

-2.0
6.7
13.6
14.5
-8.9

-8.3
6.4
15.8
17.2
-8.5

0.3
Naphtha
8.3
Gasoline
14.8
Jet Kero
13.7
Diesel
-5.3
FO
(Source: Platts)

Light Distillates

FY 2011-12 remained a volatile year for light distillates.
Asian gasoline cracks improved year-on-year but naphtha
margins witnessed a steep decline. The US, which is the
backbone for global gasoline demand, remained lacklustre,

Reliance Industries Limited 29

In the summer season, air conditioning requirements
boosted the demand for fuel oils from the power generation
sector, especially in the Middle East. Japanese power
demand has added some 400 KBPD to oil demand, about
half of which is being met by fuel oil. Fuel oil even traded
at a premium to Dubai in January when Singapore on-
shore fuel oil stocks dropped to their lowest levels in 3
years. Some correction was seen but average Singapore
fuel oil cracks gained $ 3/bbl.

RIL’s Performance Highlights

Overall, RIL had a very strong first half performance as it
benefited both from the combination of strong middle
distillate and gasoline cracks, and a wide light heavy crude
differential. In the second half not only did cracks in
general weaken, but complex refiners were doubly
disadvantaged because of the collapse in light heavy crude
spreads following on from the fuel oil strength. Hence the
indicative Jamnagar margin was $ 10.2 per barrel in the
first half but this fell to 7.2 in the second half.

In FY 2011-12, RIL processed 67.6 MMT of crude and
achieved an average utilisation of 109%, which is
significantly higher than the average utilisation rates for
refineries globally. Exports of refined products were at $
36 billion. This accounted for 39.6 MMT of product as
compared to 38.6 MMT the previous year.

In terms of the overall trend in the total domestic market,
demand growth continues to be strong, partly as a result
of the domestic subsidy programme. During the year, the
domestic demand for petroleum products increased from
138 MMT to 144.2 MMT, reflecting a growth of 4.5%. But
the market remains an export market overall with Indian
refining capacity increased to 213.8 MMT from 193.4 MMT.

Product-wise demand and growth during the last two years
is given in the table below:
FY-
2011-12

FY- Growth %

2010-11

(In KT)

Diesel
Gasoline
ATF
LPG
Kerosene
Naphtha

64,680
14,992
5,536
14,929
8,228
9,467

59,878
14,192
5,079
13,901
8,928
8,966

8.0%
5.6%
9.0%
7.4%
-7.8%
5.6%

(IPR March 2012)

but the growing demand for transport fuels in emerging
economies partly offset this downfall. Asian gasoline
cracks began the year on a strong note on account of
high demands from Japan and opened arbitrage to the US.
Strong regional demand from countries like Indonesia,
Malaysia, Pakistan and the Middle East further supported
these cracks. Unplanned outage of 540 KBD Formosa
Petrochemicals refinery proved positive for Asian
gasoline, pushing the cracks to the highest point of the
year in the second quarter.

In line with the seasonal trends, gasoline witnessed a
decline in the third quarter. Refinery run rates remained
high to feed the growing middle distillates demand, putting
gasoline in an over-supplied position. The cracks turned
negative for a brief period but ended the year at average
levels. Average Singapore gasoline cracks improved by
almost $ 3/bbl on a year-on-year basis.

Taking cues from fragile economic situations and lower
petrochemical demand, naphtha witnessed a dismal period
for almost the entire year. Heavy cracker maintenance and
ample supplies weakened the cracks right from the
beginning of the year. Availability of low-cost gas in the
US further marked a dent in the demand for naphtha. The
situation deteriorated on account of unplanned and
prolonged outage at Formosa Petrochemicals plant in
Taiwan. The third quarter witnessed the worst period
of oversupply and Naphtha cracks plunged to as low as
$ (-)17/bbl.

Middle Distillates

Due to strong demand prospects, middle distillates fared
better than their light counterparts and were the backbone
for refining margins in FY 2011-12. The US emerged as a
major exporter to Latin American countries like Brazil and
Mexico, which witnessed a high demand for transport fuel
and supply shortfalls due to low refining production.

The lack of gasoil-rich crudes from Libya limited the middle
distillate supply to its biggest consumer, Europe. Japan
shifted its traditional role from a net exporter of gasoil to a
large gasoil importer, pushing Asian gasoil cracks to over
$ 25/bbl before correction. Overall, the Asian gasoil cracks
averaged and gained $ 4/bbl year-on-year providing some
support to complex refiners like RIL.

Residual Fuel Oil

Fuel oil cracks witnessed a volatile year. Boosted by
increased Japanese demand, low sulphur grades
strengthened more than high sulphur grades. Strong cracks
for middle distillates and reasonable margins on gasoline
led to higher utilisation of cracking capacity and eventually
led to tighter supplies for fuel oil.

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The demand of MS and HSD, which together constitute
more than half of the consumption of petroleum products,
registered a growth of 5.6% and 8.0% respectively during
the year as compared to the previous year.

Several actions and investment were undertaken to ensure
that RIL’s competitive advantage was strengthened and
maintained:

RIL USA Inc

RIL is placing gasoline and alkylates in American markets
through RIL USA Inc. North America and Latin American
countries offer an attractive export destinations for RIL’s
gasoline. RIL USA has storages in Bahamas and New York
area to capture freight economics and blend margins
whenever opportunities arise.

(cid:1) Debottlenecking of important process unit capacities
(e.g. CDU, Coker, VGOHT, DHDS, LCOHC,
Alkylation etc.)

During the year, US gasoline market was weaker than
anticipated. However, demand from Latin American regions
was higher than previous year.

(cid:1)

Enhanced recovery of high value products through
increased operating efficiency

(cid:1) Widening of feedstock processing window

(cid:1) Various energy conservation measures

GAPCO

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

The Government of Tanzania commenced bulk
procurement of gasoil, gasoline and Jet Kero through
Product Importation Committee (PIC). Subsequent to
continuous representations made by the industry to the
Government, EWURA (Energy and Water Regularity
Authority of Tanzania) revised the retail and wholesale
pricing formula, which resulted in improved margins for
OMCs. Regulatory challenges grew in the Eastern African
Community (EAC) region due to the high cost of
petroleum products.

GAPCO emerged as a brand of repute known for reliable
quality and quantity of auto fuels at its retail outlets. It
significantly improved its standing in the Eastern African
market. The group also emerged as a key supplier to the
neighbouring countries and signed a term contract for
supplies to Zambia from Dar-e-Salaam Terminal in
Tanzania.

During the financial year ended 31st December, 2011, 1248
KT of petroleum products were sold and its operations
were profitable.

During the Financial year ended on 31st December, 2011,
the company has sold 42.88 million barrels which includes
gasoline and alkylate from RIL and blend stocks purchased
from the local markets. Its operations were profitable.

Future Outlook

In FY 2012-13, net refining capacity additions of 2.6 MBD
are estimated. Asia, led by China and India, is expected to
contribute above 50% of this addition. The Middle East
and Latin America will contribute the major part of the
balance.

Growth in refinery capacity addition is expected to outpace
growth in demand and will keep a check on operating rates.
Demand in Europe and the US is expected to shrink or at
best stay unchanged. European refiners are already facing
the brunt of economic slowdown and high oil prices. FY
2011-12 witnessed several refinery closures in Europe and
the US. These closures will take off some of the burden
from other refiners, but the overall outlook for refining
industry in these regions continues to remain challenging.
The situation of oversupply may be partially mitigated
with additional closures in Europe and the US and due to
delays in the commissioning of new projects slated to
become operational during this period. Much of the new
Eastern capacity has sophisticated upgrading capability,
including cokers, which will potentially increase the
demand for heavy oil. On the other hand the increased
availability of lighter crudes in the US is leading to the
cancellation of coker projects in the Gulf Coast and a switch
in slates away from the heavy Arabian crudes.

Emerging economies, especially in Asia, may feel pressure
from the sluggish European economy, and are likely to
see some slowdown in demand growth. At a time when
inflationary pressure has moderated and China and India
could ease monetary policies to boost economic growth,

Reliance Industries Limited 31

this will maintain a strong outlook for gasoline growth in
the region. The addition of new ethylene crackers will
support naphtha margins in the medium-term.

Middle distillate sector will remain the driver for Asian
refining margins. Subsidy on diesel in emerging economies
in Asia will shield the retail consumers from high and
volatile oil prices, supporting strong demand growth.
Reconstruction work in Japan is also likely to provide
further boost in demand. Asia’s fuel oil market has eased
due to an increase in the arrival of more bunker-grade fuel
supplies from the Middle East.

Overall, the outlook for Asian refining industries continues
to remain positive to the rest of the world.

For RIL, Jamnagar refining complex is highly competitive
given its flexibility in crude slate, product slate and low
operating costs. Forward plans are built on the basis that
the environment will remain challenging and therefore cash
and profit growth need to be driven on the back of self-
help. A wide range of measures are being planned to further
strengthen its competitive position: given the high oil
prices, a number of schemes including petcoke gasification
are under various stages of implementation with a view to
achieving a sharp reduction in energy cost. These
measures are being supplemented by many others that
seek to improve the yield pattern as well as operating &
cost efficiencies. Focus would also be on maximisation of
netbacks through optimisation of product placement
around the world.

PETROCHEMICALS BUSINESS

Operating Environment

Ethylene

Ethylene is a raw material used in manufacturing polymers
like polyethylene, polyvinyl chloride and polystyrene, as
well as organic chemicals like ethylene oxide and ethylene
glycols. These products are used for various end markets,
such as packaging, transportation, electronics, textiles and
construction.

Global ethylene markets recovered from oversupply that
stemmed primarily from expanded capacity in the Middle
East and Asia and recessionary global conditions. Global
ethylene capacity grew by 3.6 MMT, while supply grew
by 3.4 MMT. Global ethylene production totalled 125.6
MMT during the year, representing improved operating
rate of 85.2% as compared to 84.9% in the previous year.

Global ethylene prices remained high due to higher crude
oil and naphtha prices and plant turnarounds. Asian
ethylene margins were under pressure as polyethylene
prices did not increase in line with naphtha costs. Global
demand continued to be slow due to European crisis and
stagnant Chinese demand.

World Ethylene Supply/Demand – 2011

Production by feedstock

Demand by end use

Production : 125.6 MMT

Demand : 125.6 MMT

Naphtha

Ethane

Propane

Butane

Others

49%

35%

P E

Ethylene Oxide

E D C

E B Z

Others

60%

14%

11%

(Source: CMAI 2012)

Capacity additions in recent times have dramatically
changed the supply scenario. During the year, 90% of
capacity additions were from the Middle East and Asia.
The Middle East now accounts for 18% of global ethylene
capacity as compared to 11% in 2006 and Asia for 33% as
compared to 29% in 2006. With the operational capacity in
the Middle East, the feedstock mix for cracker changed in
favour of gas. Lower NGL prices on account of shale gas
availability provided a significant advantage to the US
ethane cracking costs as compared to integrated naphtha
cracking.

High energy and naphtha prices resulted in pressure on
margins as well. Globally, naphtha-based operators
experienced cost increases due to higher input costs.

Polymers

Polymers witnessed growth driven by applications where
plastics delivered a cost advantage and performance
enhancement. Consumption of global commodity plastics
in FY 2011-12 was estimated at 205 MMT. This included
products like polyethylene (PE), polypropylene (PP),
polyvinyl chloride (PVC), Polystyrene, ABS, PET and Poly-
carbonate. Of this, PE accounted for 37% of all plastic
consumption, followed by PP and PVC which accounted
for 26% and 18% of the total plastic demand respectively.

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Global Poly-olefins + PVC Demand

RIL’s Performance

(In MMT)

2009

2010

2011 Growth%
2011 vs
2010

LDPE

LLDPE

HDPE

PVC

Ethylene

Propylene

111

(Source: CMAI 2012)

122

125

1.7%

5.5%

3.8%

2.2%

3.2%

2.7%

2.4%

During the year, global capacity addition of PP was 3.5
MMT while incremental growth in demand was 1.1 MMT.
Consequently, operating rates declined to 81.1% vis-à-
vis 83.5% in FY 2010-11. Global capacity addition of PE,
driven mainly from Asia and Middle East was 2.44 MMT
while incremental demand grew by 3.7% to 2.7 MMT.
Operating rates for PE improved to 82.9% from 82.1% in
the previous year. Global capacity addition of PVC was
4.68 MMT while demand increased by 1.1 MMT. The
operating rates decreased to 71.1% from 76% in the
previous year.

Product price recovery continued throughout the year (~4-
10%), although it was slower than inflation rates of
feedstock prices. Asian Polyolefin margins were under
pressure as feedstock costs rose faster than product prices.
Asian PVC margins improved as feedstock (EDC) costs
declined and product prices stabilised.

Average Product Prices

Price ($/MT)

FY-12

FY-11 % change

Dubai Crude

Naphtha

HDPE

PVC

(Source: Platts)

110

950

1479

1363

1050

758

1376

1239

1007

31%

25%

10%

RIL maintained its leadership position with a domestic
market share of 47% and commodity polymer production
share of 65% in FY 2011-12. RIL’s polymer production for
the year was higher by 8.5% as compared to FY 2010-11
due to stable plant operating performance. RIL’s cracker
operating rate was at 98.2%.

Polymer production in KT

FY-12

FY-11 % change

2740

1077

638

4455

2497

978

631

4106

10%

P E

PVC

Total

RIL’s PP production was at record level at 2740 KT, up by
10%. It exported a record 825 KT. Imports increased by
2% but with introduction of new grades and consistent
supplies; imports could come under pressure in the near
term.

RIL introduced a new random co-polymer grade SRX100,
catering to the fast growing packaging sector and high
clarity random PP grades which are currently imported.
Transparent containers in water purifier were developed
by using new grades SRX 100 and SRM 100NC replacing
engineering plastics. PP containers were used for flavoured
milk and malt milk products, which helped to conserve
energy at all stages from manufacturing to transportation.

RIL’s market outreach programme ‘Rishta’ continued
throughout India with special emphasis on agriculture and
infrastructure sectors. Additionally, RIL initiated several
agricultural research projects with leading nodal agencies
to improve the use of polypropylene non-woven covers.
New applications were developed for preparation, storage,
and transport of silage for use as fodder replacing concrete
structures.

RIL also worked with the Ministry of Textile to create
awareness of the benefit of geotextiles in road, railways
and river embankment. RIL is also working towards
spreading awareness about new products like geo-bags,
geo-tubes and gabions to protect against natural calamities
and provide better living conditions.

Reliance Industries Limited 33

RIL’s PE production was higher by 10% at 1077 KT in FY
2011-12. PE market share increased to 32% from 29% the
previous year. Increased focus helped RIL to increase its
market share from 38% to 44% in LLDPE. The domestic
LDPE demand grew by 17%. RIL maintained its market
shares in LLDPE and HDPE in growth sectors like Raffia/
MF, GPBM, IM, and Butene Film. In LDPE, the Company
expanded its market share in general purpose film, milk
packaging and extrusion coating sectors.

In the PE business, since market expansion with value-
added grades provides an edge over the competition, grade
development activities were undertaken by RIL during FY
2011-12. These included:

(cid:1)

Introduction of HDPE Relene F46003E for HD Film
sector

Introduction of LDPE Relene 24FA040 for LD General
Purpose Film sector

PVC

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. PVC consumption in India was estimated to be
1.99 MMT in FY 2011-12, which represented a growth of
3% over the previous financial year. India imported about
747 KT (73 KT higher than FY 2010-11) of PVC. Pipes and
fittings continued to be the major market accounting for
73% of the domestic PVC demand.

Future Outlook

Around 24.6 MMT of additional ethylene capacity is likely
to be added over the next five years. Around 95% of
incremental capacity of PP and around 92% of incremental
capacity of PE is expected in Asia and the Middle East in
the next five years, reflecting the region’s growing
prominence in this sector. Around 82% of incremental
capacity of PVC is expected to come up in Asia and the
Middle East in the next five years.

RIL, with its portfolio of PP grades being produced
through multi-line production, is well-positioned to capture
the future growth. RIL continues to work with major
Original Equipment Manufacturers (OEM) of automotive
and appliances for replacing several parts with
Polypropylene. Notable among these is the development
of components for automotive with long glass fibre filled
Polypropylene compound, which is a light-weight material
and thereby provides fuel efficiency with safety.

CHEMICALS BUSINESS

Operating Environment

Demand growth from sectors like paints, pharmaceuticals,
detergents, tyres etc. contributed to the driving force for
growth of chemical sector in India. The operating
environment for various chemicals is summarised below:

Benzene: The global capacity of benzene in FY 2011-12
was 57.2 MMT against a production of 41.6 MMT,
resulting in an average operating rate of 73%. Globally,
there is now an excess capacity due to increases in the
past 4-5 years by more than 9.5 MMT.

Butadiene: North-East Asia remained the largest market
globally with a market share of 45% followed by 22% and
21% by USA and Europe respectively. The demand grew
by 3% on a year-on-year basis.

Poly-butadiene Rubber: It is the second largest synthetic
rubber among elastomers having an estimated demand at
3 MMT. Global demand for synthetic rubber in coming
years is expected to grow at 7.8% annually.

Caustic Soda: Globally, the installed capacity of caustic
soda was about 93 MMT (dry). The global consumption
of caustic soda during the year increased to 65.8 MMT
(dry), an increase of about 4.4% over the previous year.
The operating rates averaged at 71% with capacity
additions in China, which led to over-supply in the Asian
region.

Linear Alkyl Benzene (LAB): Globally, the consumption
of LAB was pegged close to 3.1 MMTPA against a capacity
of 3.5 MMTPA. On an average, the consumption growth
was 2.9% per annum, and is expected to continue at this
rate, driven primarily by the Asian demand.

Acrylonitrile: The global capacity of acrylonitrile in FY
2011-12 was 6.1 MMT against production of 5.2 MMT,
resulting in average operating rate of 85%. The demand
for the year was 5.04 MMT.

Methyl Tertiary Butyl Ether: The global capacity during
the year was 17.1 MMT against a production of 14.6 MMT
with operating rate of 86%. The demand for the year was
14.6 MMT.

RIL’s Performance

The Indian chemical industry was in line with the global
business environment with an exception of the elastomer
segment, which varied due to excessive demand from the

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automobile sector. RIL maintained its leadership position
in aromatic segment, constituting benzene, toluene and
xylene.

Benzene: RIL’s benzene production was 734 KT, reflecting
a growth of 1% in FY 2011-12. Total sales for the year was
745 KT, including 440 KT for exports, 207 KT for domestic
and 98 KT for captive consumption. 440 KT of benzene
was exported mainly to the US, Europe and the Middle
East. Toluene, a major by-product of BTX group,
registered production volumes of 101 KT.

Butadiene: RIL produced 183 KT of butadiene during the
year, of which 67 KT was exported after meeting the entire
domestic requirement and captive consumption. The
demand from downstream sectors covering SBS rubber,
PBR, ABS and styrene butadiene latex recovered during
the year and the total demand generated was 114 KT.

Poly-butadiene Rubber: RIL is the only manufacturer of
PBR in India. During the year, the Company produced 78
KT, increasing 2.6% on a year-on year basis. Most of this
production was sold in the domestic market, where
consumption was estimated at 154 KTA.

Caustic Soda: RIL has an annual capacity to produce 168
KTA of caustic soda and 141 KT of chlorine. RIL’s capacity
utilisation for the year was at 97% as against average
domestic capacity utilisation of 75%.

Linear Alkyl Benzene (LAB): With an installed capacity
of 182 KTA, RIL is fifth largest producer of LAB globally.
During the year, the Company became the leading domestic
producer of LAB, by market share, with production of 166
KT. Tightening of normal paraffins resulted in lower
utilization of LAB capacity.

Acrylonitrile: RIL is India’s sole producer of acrylonitrile
with a capacity of 40 KTA. RIL’s production caters to 30%
of the domestic market demand, with the rest being fulfilled
from imports. During the year, RIL sold 36 KT to the
domestic market and exported 1.5 KT. The poor demand
from the derivatives (Acrylic Fibre and ABS) and the
economic scenario adversely impacted Acrylonitrile prices
and sales in the third quarter of FY 2011-12.

Future Outlook

RIL’s crackers at Hazira, Nagothane, Dahej and Vadodara
are among the globally integrated petrochemical
complexes with upstream refining, E&P and downstream
chemical facilities. RIL is a leading producer of Butadiene,
Benzene, PBR and LAB in India. It also produces basic
aromatic building blocks of the highest purity, conforming

to the product grades. These include toluene, mixed-xylene
and ortho-xylene. A new facility to produce butene-1
(40 KTA) and Methyl Tertiary Butyl Ether (144 KTA) has
commenced from December 2011.

RIL foresees large opportunities in elastomers and other
diverse chemicals. It has announced the setting up a facility
for manufacturing 100 KTA of butyl rubber in India. A new
ESBR project of 150 KTA and additional PBR capacity of
40 KTA are also being executed. This is a significant step
towards the Company’s commitment to service India’s
growing automotive sector by bringing in complex
technologies.

POLYESTER FIBRE AND FILAMENT BUSINESS

Operating Environment

The unpredictable volatility in global economies impacted
the textile markets and demand in major consuming
economies turned cautious and slower. Many producers
across the globe shifted or set up new manufacturing bases
at low-cost centres, mostly in the Asian countries.
Competitiveness of the Chinese exports eroded as the
Chinese government made Yuan market dominated. As a
result, Yuan strengthened by 5%, while other major Asian
currencies depreciated by 5-9% against the US dollar. In
addition, labour costs also impacted cost structures in
China.

During FY 2011-12, cotton markets continued to be an
area of significant interest. Encouraged by high prices in
cotton marketing year FY 2010-11, farmers planted about
8% more acres for the next season. However, at the time of
the harvest, demand prospects in major consuming
countries faltered. Downstream players in major
processing centres across the globe lowered operating
rates leading to huge stock piles. Consequently, cotton
prices plunged by 10% in contrast to 100% increase
witnessed in FY 2010-11. The Chinese reserve purchases
by the Government were also not enough to hold up the
surge in supplies in most producing countries.

The high volatility in cotton prices and ambiguous outlook
forced downstream players to opt for polyester due to
lesser price volatility and greater reliability of steady
supplies of polyester. Consumption of polyester fibre and
yarn during 2011 thus increased by 7% to 39 MMT.

During the year, polyester prices increased by 5-6% over
the previous year, mainly owing to cost push from
feedstock and energy. The unfriendly demand scenario
kept markets unreceptive and pressure on margins

Reliance Industries Limited 35

increased, lowering delta by 24-30%. Producers turned
cautious to keep plant operations in control to avoid piling
of inventories. Polyester capacity additions were
predominantly seen in PFY, accounting for about 70% of
the total 4 MMT. PSF witnessed restart of some idled
capacity owing to the surge in demand, arising from
fluctuations in cotton prices and better margins in PSF.

It is expected that by 2015 polyester capacity would
increase by about 12 MMT, largely in PFY. Most of these
capacity additions of about 9 MMT are planned in China.
At the same time, global demand is likely to grow by 7
MMT by the same period.

PET

PET global demand growth during 2011 was at 7%. The
year saw high demand created by growth in packaged
drinking water. Uncertain prices encouraged buyers to
scout for smaller purchase volumes at more frequent
intervals with shorter delivery times to avoid inventories
pile ups. This buying pattern favoured the local producers
largely in USA and Europe. In addition, the depreciation
of Euro during the year made imports costlier, thus
promoting domestic producers. Many plants
intermittently stopped their operations, which helped to
keep the markets balanced in most parts of the globe and
demand growth kept prices favourably high. Prices thus
gained about 15% during the year.

Light-weighting and use of food grade recycled PET was
common, particularly in North America and West Europe.
A stronger commitment to developing technology for
renewable raw materials was seen. Major beverage
companies announced and developed bottles entirely from
renewable sources.

Feedstock

Overall prices for polyester feedstock increased, following
the strong oil prices and ethylene markets. PX was marked
up by 33%, PTA by 11% and MEG by 21%. There were
shortages in supplies in PX and MEG markets. With no
new MEG capacity being added, the existing plants
operated at almost same rates as last year and booked
higher margins. MEG delta surged 17% higher over last
year’s average. PTA markets, on the other hand, were hit
by capacity additions of about 4 MMT during 2011. While
the supplies increased, cautious downstream buying
prevented large price hikes, which pressurised PTA
margins and delta for the year was about 47% lower than
FY 2010-11. PTA delta reached almost breakeven during
the third quarter of the year, which forced many producers

to shut operations to cut losses. Also the exchange rate
arbitrage between Asian and European nations favoured
the producers in Europe who catered to local requirements.
Similar condition prevailed in USA and consequently Asian
producers suffered low margins.

Domestic Operating Environment

India continued to hold a crucial position in global textile
industry, owing to its advantages of adequate availability
of raw materials, relatively lower conversion costs, skilled
manpower and favourable demographics. Cotton and
polyester accounted for around 92% of the total fibre
requirements of Indian textile mills.

As per government estimates, cotton and man-made fibre
consumption in India is in the ratio of 59:41 as against the
40:60 ratio globally. The lower per capita fibre consumption
in India of around 5 kgs as against global average of 11
kgs indicated huge potential for expansion of fibre
consumption. Other major demand drivers included rising
disposable income and working population, emerging non-
apparel applications of fibre and industry-friendly
government policies. In FY 2011-12, the textile industry
was impacted due to volatile cotton markets. Within a span
of around 5-6 months, the international and
domestic cotton prices saw historic peak and subsequently
a steep fall.

The uptrend was primarily due to shortage of cotton
availability across the world and certain government
policies on cotton and cotton yarn exports, which were
not receptive to textile industry growth. Consequently,
the industry resorted to panic buying and stocked cotton.
But, with the beginning of declining trend in cotton prices,
the industry faced problems in sourcing of cotton,
impacting the downstream demand as well. End-users
moved into strict wait-and-watch mode and the textile
industry faced huge pile-up of unused cotton and cotton
yarn inventory, leading to severe stock losses. Man-made
fibres, especially polyester fibre and yarn, fared relatively
better as volatility in prices of polyester was much lower
as compared to cotton.

Major textile production centres in Andhra Pradesh,
Tamil Nadu and some Northern states faced severe
power shortages, adversely affecting output and
profitability of the mills. Labour shortage was also
prominent during the year.

Government restrictions on raw cotton and cotton yarn
exports were witnessed along with some proactive
measures to assist the domestic and export community

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against the backdrop of weakened demand and continuous
economic uncertainties from the West. Technological
Upgradation Fund Scheme (TUFS) was restructured and
higher allocations were provided. The high potential
growth segment, technical textiles was included within its
ambit. The textile ministry proposed to make TUFS a part
of the Twelfth Five Year Plan beginning from April 2012.

Government announced ` 900 crore incentives for the
exporters in October 2011. The Focus Product Scheme
was extended to include Polyester Textured Yarn (PTY),
Fully Drawn Yarn (FDY) and polyester textile grade chips.
A Special Focus Market Scheme was introduced, which
provided additional 1% duty credit for exports to specific
countries. Government also scrapped the DEPB scheme
and introduced Revised Duty Drawback Scheme with
effect from October 01, 2011.

Government approved 21 new integrated Textile Parks in
nine states of India with a project cost of ` 2,100 crore
over a period of 36 months. The new Textile Parks are
expected to leverage an investment of over ` 9,000 crore
and generate over 4 lakh jobs.

RIL’s Performance

RIL continued to hold top rankings in polyester and
feedstock markets, constantly reaping the benefits of
backward integration. Consolidated polyester capacity of
RIL stood at 2.4 MMT. According to PCI, RIL held the 1st
rank in polyester fibre and filament capacity, 5th rank in PX
and 8th in PTA and MEG. RIL catered to 38% of the domestic
market and exported to over 100 destinations.

During FY 2011-12, domestic polyester demand grew
moderately at 2% over FY 2010-11. The momentum was
led by 17% growth in PET followed by 2.8% growth in
PFY. RIL contributed to 25% of the domestic PFY demand
of around 2.2 MMT, 69% of the domestic PSF demand of
0.8 MMT and 47% of the domestic PET demand of 0.5
MMT. The production volumes of polyester declined by
2.4% to 1663 KT. PFY production decreased by 5.5% to
695 KT, while PSF and PET production were almost steady
at 615 KT and 352 KT.

In case of polyester feedstock, domestic PTA demand
during the year was around 3.5 MMT, down by 3% from
the previous year. MEG domestic demand was around 1.7
MMT, up by 4% and PX domestic demand was 2.2 MMT,
up by 7% compared to the previous year. Fibre
intermediates production (PX, PTA and MEG) of 4756 KT

marked an increase by 5% and PX production increased
by 9% to 2004 KT, PTA production was up by 2% at 2069
KT, while that of MEG was marginally higher at 683 KT.

During the year, the Company enhanced its market reach
through improved customer interaction at various open
forums and through electronic and print media. RIL
developed PET resins that improved shelf life of perishable
goods by providing barrier for oxygen and carbon dioxide
exchange through container surface. The Company also
developed hygiene products, such as hydrophilic spun-
lace fibre, which has better moisture absorbability and is
used for high absorbent hygiene products, micro spun-
lace fibres for extra soft hygiene applications and trilobal
spun-lace fibres. It also launched a specialised pillow for
relief from neck pain while sleeping.

RIL innovations for textile industry during the year
included Recosilk – a specialised thread for embroidery
applications, Recron Bind and a product that increases
knitted fabric structure strength. RIL’s contribution to
nature protection led development of products to
substitute harmful carcinogenic asbestos in roofing
applications, siliconised fibres for soil stabilisation and
fine denier fibres for the construction industry.

Recron Malaysia Update

RIL acquired Recron Malaysia in 2008. Recron Malaysia
is an integrated polyester unit having downstream textile
operations like spun yarn and fabric production. It has a
polyester capacity of more than 500 KTA and fabric
production of 600 million meters per annum. Since
acquisition, the Company has undergone significant
improvement in terms of its operations and profitability.

FY 2011-12 proved to be a challenging year amidst global
economic uncertainties and disturbances in several parts
of the world. Demand from key markets of Syria and Egypt
was impacted by geo-political concerns. Besides, the
Malaysian Baht also appreciated by around 5% against
the US dollar, which in turn impacted export earnings.

Sales during FY 2011-12 increased by 9% to $ 1.2 billion.
Exports continued to account for 90% of the total sales
and were spread across 65 countries. The Company
continued to hold a dominant domestic market share of
60% in grey fabric, PET and PTY and was profitable.

The India Malaysia CECA came into effect from July 2011,
which envisaged the liberalisation of trade in goods,
trade in services, investments and other areas of economic
co-operation.

Reliance Industries Limited 37

Future Outlook

The global feedstock demand is expected to rise in line
with the polyester production. MEG demand is expected
to grow by 6 MMT by 2015, while capacity additions are
also foreseen at 6 MMT. This will assist plant operating
rates favourably. PTA demand is expected to rise by 14
MMT by 2015, while capacity additions are expected to
rise sharply by 32 MMT. The PTA capacity addition will
require large investments in feedstock PX, of which only
13 MMT is planned till 2015. The large PTA addition may
lead to price moderations, but a constraint in PX supplies
will determine the operating rates of these new plants and
the subsequent market balance. Demand growth of 6.4%
in PET has been estimated during 2012, predominantly in
Asia/Pacific region. PET capacity additions, however, will
rise above the demand growth and are likely to pressure
operating rates. About 60% of this capacity addition is
expected in China.

As per the recent Fitch Ratings report, the outlook for
Indian textile industry for FY 2012-13 is expected to be
stable for synthetic textiles and negative to stable for
cotton textiles, depending on the segment of the value
chain. The study estimates that cotton textiles will face
challenges of slower demand pick-up and loss of margins
before an anticipated recovery from the fall in cotton prices.
Synthetic textiles will benefit from substitution of higher-
priced cotton products and a greater demand for blended
textiles. As per Technopak estimates, the Indian textile
industry, over the long term, has a potential to grow to $
220 billion by 2020 from its current size of around $ 80
billion, at a CAGR of around 10-11%. Such ambitious
targets will be led by a significant incremental fibre demand,
and polyester is likely to account for the majority share,
given the limitations and restrictions associated with
natural and other fibres.

Opportunities across the energy chain

In the domestic E&P business, RIL through the strategic
alliance with BP is poised to benefit from their expertise in
sub-sea engineering and reservoir management. With
regards to KG-D6, access to production data gives
incremental analytics on field behaviour and sub-surface
geology. RIL and BP’s collective technical capabilities,
access to relevant resources and timely regulatory /
government approvals can go a long way in arresting
production decline and help in ramping up production.
RIL is committed to investing in this business, but
simultaneously remain conscious of its responsibility of
deploying capital prudently.

RIL’s foray in to the shale business is enabling it to focus
on creating huge capabilities in the context of
unconventional hydrocarbons and horizontal drilling while
simultaneously increasing its global and geological
footprint in this business. In the US energy mix, the
proportion of gas is set to increase in future as demand
for cleaner and safer fuels grows. Also, technology
evolves to make the shale gas business more mainstream
in the context of developing hydrocarbons in North
America. RIL’s shale gas JVs in Marcellus and Eagle ford
blocks in US are likely to contribute to RIL’s medium term
earnings growth. Moreover, the presence of liquid-rich
resources in the RIL-Pioneer JV in Eagle Ford makes it an
attractive proposition even during the current low gas
prices environment.

Refining business performance will be primarily governed
by the global economic environment and crude oil price
movement. Global economic environment will continue to
weigh heavy on the refining margin performance. While,
economic outlook continues to remain uncertain, refining
margins are expected to remain range bound in near term.
The global refining cycle may swing for an up-cycle in the
next few quarters driven by limited capacity additions,
demand recovery based on economic forecasts and major
mothballing of refineries in US/Europe. Apart from these
factors, there are also regular delays in new capacities
that can potentially help the cycle sustain for medium term.

RIL is building one of the largest coke gasification facilities
in the world with capital expenditure of $ 4 billion over the
next 3-4 years. This will significantly increase the
complexity and profitability of the refinery and also make
it more environmentally friendly. This will further enhance
bottom-of-the-barrel conversion in terms of value creation.

RIL benefits from its leadership position in key
petrochemical and polyester products. It is ranked among
the top 10 producers of most petrochemical products. The
domestic market for polymers as well as polyester has
been growing at around 8-10% on a year-on-year basis.
Despite recent demand slowdown and lowering margins
in Asia, RIL continues to benefit due to its wide product
portfolio and integrated business model. RIL has a
balanced portfolio of liquid and gas based crackers and it
is in the top quartile in both capital and operating cost
terms. Given India’s low per capita consumption of
polymers and polyester products of around 3.5 to 4 kg,
and the resilience of the economy, the demand for these
products is expected to see double digit growth in the

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medium term. RIL is accelerating further downstream
integration program with new cracker and aromatics chain.
RIL has commenced the largest ever capital expenditure
program in the history of its petrochemicals business. RIL
plans to invest $ 8 billion across polyester and polymers
chain over the next 3-4 years. RIL is also investing in
expanding its rubber business which will be integrated
with required feedstock available from the two large
refineries at Jamnagar. Asia has become a large base for
automotive tyre manufacturing and is one of the largest
consumers of these rubber products. RIL will have strong
portfolios of plastics, rubbers and polyester chain which
can give sustainable cash flows in future.

Challenges, Risks and Concerns

A significant portion of RIL’s revenue is attributable to
sales of crude oil, natural gas, refined products and
petrochemical products, the prices of which are affected
by worldwide prices of feedstock and end
products. Historically, these prices have been cyclical,
sensitive to relative changes in supply and demand, the
availability of feedstock and general economic conditions.
Any slowdown in global economic growth, cyclical down
turns in the refining and petrochemicals industry and major
changes in the prices of feedstock and end products may
adversely effect margins, business, financial condition
and results of operations.

Evaluations of oil and gas reserves involve multiple
uncertainties and require exploration and production
companies to make extensive judgments as to future events
based upon the information available. The crude oil and
natural gas initially in place and further reserves and
resources data are estimates based primarily on internal
technical analyses prepared by RIL. Such estimates reflect
the best judgment as applicable at the time of their
preparation, based on geological and geophysical
analyses and appraisal work, and may differ significantly
from previous estimates.

RIL is subject to risks arising from interest rate
fluctuations. RIL borrows funds in the domestic and
international markets to meet the long-term and short-term
funding requirements for its operations and funding its
growth initiatives. A majority of the RIL’s borrowings are
floating rate debt and hence are exposed to upward
movement in interest rates.

Changes in the exchange rate between the US Dollar and
the Indian rupee may have a negative impact
on RIL’s results of operations and financial condition. RIL
maintains its accounts and reports its financial results in
rupees. Most of RIL’s revenue and costs are either linked
to or denominated in US Dollars. Further, RIL makes

substantial purchases of services and equipment in foreign
currencies. As such, RIL is exposed to risks relating to
exchange rate fluctuations. RIL uses various derivative
instruments to manage the risks arising from fluctuations
in exchange rates and interest rates.

Internal Controls

RIL operates in a global environment straddling multiple
jurisdictions and complex regulatory frameworks. Our
governance and compliance processes, which include the
review of internal control over financial reporting ensure
that all the assets of the Company are safeguarded and
protected against any loss and that all the transactions
are properly authorised, recorded and reported.

RIL conducts regular internal audits to test compliance
with the statutory requirements. Audits are led by
professional audit managers and supported by experienced
personnel drawn from across the organisation. Audit
results are used by management to create detailed action
plans where the businesses have not yet achieved full
compliance with the requirements. Key findings are
reported to senior management and summary reports are
considered by the Audit Committee of the Board.

RIL maintains global IT and communication networks and
applications to support its business activities. IT security
processes protecting these systems are in place and
subject to assessment as part of the review of internal
control over financial reporting.

The nature of the industries in which RIL operates means
that many of its activities are highly regulated by health,
safety and environmental laws. As regulatory standards
and expectations are constantly developing, RIL also
maintains high priority towards keeping the highest
standards of health, safety and environmental norms while
maintaining operational integrity.

Major Subsidiaries

India is among the largest and fastest growing major
economies in the world. With demographics in India’s
favour and rising aspirations, there is a strong consumption
growth in physical and digital retailing. RIL’s foray, through
its subsidiaries is aimed at capturing these large scale
opportunities in creating unprecedented value for all its
stakeholders.

Reliance Retail Limited

Operating Environment

The overall size of the retail industry in India is estimated
at $ 470 billion. This industry is characterised by a low
organized retail penetration of 6% as multiple

Reliance Industries Limited 39

intermediaries, including 12 million kiranas, dominate this
industry (as per Technopak).

towards building a services platform for supporting retail
development and value creation.

Growth Drivers

The key drivers for growth and transformation in retail
industry are:

Increasing Urbanisation: Urban India has grown by nearly
five times in the last fifty years. Urbanisation indicates
growing proportion of people in middle and upper income
classes, providing impetus to retail growth.

Changing demographic profile: With 65% of the Indian
population under the age of 35 and a median age of
26 years, India has one of the world’s youngest
populations. A Combination of young population,
nuclearisation of families and increasing number of working
women acts as major growth driver in retail.

Rising incomes and propensity towards disposability:
Rapid economic growth over the last few years has resulted
in a sustained increase in per capita incomes in India,
resulting in discretionary household spending, which in
turn leads to retail growth.

Aspirational lifestyle: Rapid globalisation, media
proliferation and increasing internet penetration have led
to an increase in awareness levels about world class brands
and products. With rise in disposable income levels, the
consumer is willing to spend more on self, giving impetus
to retail.

Financial Sector: The increased availability of credit cards
and retail loans has boosted the organised retail industry.

Challenges

The key challenges in the retail industry are:

Real estate: Availability of real estate at reasonable prices,
at desirable location, acceptable scheme and access and
sustainable economics.

Manpower: Availability of skilled manpower to manage
the back-end and front-end operation of organised
retailers.

Supply Chain: The lack of adequate and appropriate
facilities like cold storage and efficient supply chain in the
country acts as an infrastructure bottleneck.

RIL’s Performance

RIL launched Reliance Retail six years ago.

Since inception, Reliance Retail has relentlessly worked

During the year under review, Reliance Retail witnessed
strong growth in sales from existing stores and also added
new stores. At a consolidated level, Reliance Retail has
posted a revenue from operations of ` 7,599 crore for the
financial year representing a growth of 25% over last year.
Despite challenging macro-economic conditions most of
the retail formats have delivered well over 20% same store
sales growth. Same stores sales growth has been well
above the growth declared by peer retailers in respective
formats which indicates the robustness of the business
model.

It has made significant investments in building back-end
as well as front-end retail infrastructure and some of the
key areas where the Company has built capabilities include:

Warehousing and logistics infrastructure: Reliance
Retail has created a robust and state of the art supply
chain infrastructure comprising of an integrated network
of city distribution centres, regional distribution centres
and import distribution centres across the country. It has
also developed a robust delivery mechanism, which
manages delivery from the distribution centres to over
1,300 stores.

IT infrastructure: Physical infrastructure is supported
by robust technology led systems that ensures stock
optimisation and provides a healthy fill rate at distribution
centres and stores. Strong IT infrastructure has helped
Reliance Retail to drive some of the major productivity
improvement initiatives.

Human capital and talent pipeline development: Under
the aegis of Reliance Retail Academy, several academies
have been started to train hired staff for specific roles.
Focused training programmes have been developed to
improve productivity and deliver better customer
experience at the store. Currently, Reliance Retail has an
employee base of about 25,000 people, including store
associates, corporate staff and associates in distribution
centres, processing centres, collection centres and other
facilities.

Front-end infrastructure development: Reliance Retail has
built relationships with leading mall developers and
property consultants and special efforts have been made
to improve store execution timelines, to optimise capex
through value engineering and indigenisation and to
implement energy management and conservation efforts,

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while maintaining an unwavering focus on enriching the
consumer experience. Reliance Retail has also invested in
planning tools that have helped in achieving standardised
and efficient store layouts. Standardisation in visual
merchandising requirements, spanning all formats, has
also helped stores to improve go-to market timelines and
manage costs better.

Compliances: Retail is a highly regulated industry and
there are a large number of compliances that need to be
met. Reliance Retail ensures that all its formats and
business units comply with applicable laws and for that
purpose, it has adopted a strong process based approach
in maintaining over 7,000 licences, apart from trade
compliances across a network of over 1,300 stores.

Food supply chain: Reliance Retail operates fresh food
distribution centres that have cross dock facility for fruits
and vegetables. It has temperature controlled facilities for
frozen and chilled products, ripening chambers for fruits
and reefer transportation that delivers fresh produce to
hundreds of stores across the country. Reliance operates
over 15 distribution centres for fresh food and over 50
facilities comprising of collection centres and processing
centers. These facilities eliminate waste in the supply chain,
preserves food items in hygienic conditions and provides
higher benefits both to farmers and consumers.

During FY 2011-12, Reliance stressed on its back-end
operations and store expansion capability by successfully
adding more than 200 stores across value and specialty
formats.

Reliance Retail’s performance across its two formats –
value format and speciality format is summarised below:

Ahmedabad. Reliance Market will create sustained value
by generating employment and self-belief in small
shopkeepers, as it partners with the traditional trade.

The first pilot store boasting an area of 100,000 sq.ft. caters
to kirana stores, small businesses, restaurants and various
other institutional buyers.

Specialty Formats

Reliance Digital

Consumer Durable, IT and Telecom (CDIT) market is one
of the largest categories of consumption in India. The
market has been historically operated through the
traditional channel that occupies nearly 85% of the trade.
The CDIT market in India is estimated at ` 115,000 crore in
2011. The current market is growing at over 13% and is
expected to touch ` 215,000 crore by 2016 (not including
services).

Reliance Digital aims to provide ‘solutions’ to the customer
through end-to-end services. It operates multiple formats
ranging from full size Reliance Digital stores to Reliance
Digital Express stores. In FY 2011-12, Reliance Digital more
than doubled its store count to 75 operational stores and
established itself as the market leader in the category. It
also operated 19 iStores in partnership with Apple. It
witnessed a 20% sales growth achieved primarily through
enhanced integration of ResQ, the service arm of Reliance
Digital. One of the significant achievements of Reliance
Digital was the launch of private label brand ‘Reconnect’,
which includes wide categories of products like flat panel
TVs, kitchen appliances, air conditioners and various
accessories. Reconnect is positioned from the perspective
of affordability, user experience and aspiration.

Value Formats

Reliance Trends

Food and grocery remained the single largest retail
category in 2011 in India with sales of ` 16,25,000 crore
accounting for 69% of the total retail market. Organised
retail accounted for a little below 3% of the sales in this
category.

RIL’s value format comprising of Reliance Fresh, Reliance
Super, Reliance Mart, Delight and Autozone, consisted of
over 700 stores and contributed to dominant share of retail
space and revenue from operations.

During the year, Reliance Retail launched its new prototype
of ‘Reliance Mart’ and ‘Reliance Super’ and also its first
‘wholesale’ format under the name of ‘Reliance Market’ in

The overall apparel market in India was estimated at
` 175,000 crore in 2011 with organised retail accounting
for close to 16% of the overall sales in this segment. The
sector is expected to grow to ` 250,000 crore by 2016 at a
CAGR of 7.5% with organised retailers accounting for
` 40,000 crore in sales.

Reliance Trends, the apparel, luggage and accessories
specialty format of Reliance Retail has achieved the
distinction of becoming India’s largest fashion destination
in FY 2011-12, with 90 stores across 59 cities and 18 states.
This significant milestone was achieved in just 4 years of
its launch - a ramp up that is unparalleled compared to
other leading players in this industry.

Reliance Industries Limited 41

Reliance Footprint

The footwear industry in India is estimated to be about
` 25,000 crore and growing at 13% per annum. The industry
has been relatively more organised with modern trade
occupying nearly 35% share.

Reliance Footprint has established itself as India’s first
multi-brand store with over 50 national and international
brands of footwear. Asics, the world famous sports shoe,
sportswear and accessory brand is in exclusive distribution
relationship with Reliance Footprint.

Reliance Footprint focused on expansion during the year
and opened 50 new stores taking the current store count
to 88 stores across 57 cities.

Reliance Jewels

In a ` 130,000 crore industry in India, modern jewellery
retail contributes to less than 10%. The potential and
opportunity for modern jewellery retail to grow rapidly
and gain a higher market share is strong. Reliance Jewels
expanded to 38 stores in FY 2011-12.

Reliance TimeOut

The Indian market for books, music and stationery industry
was estimated to be more than ` 25,000 crore in 2011.

Reliance TimeOut offers a wide range of products
including books, entertainment, stationery, toys, gifts and
personal accessories.

It expanded to 38 stores in FY 2011-12.

Partnerships with key brands

Reliance Retail operates various partnerships in the
lifestyle category.

Reliance Brands

To introduce high fashion in India, Reliance Brands has
partnered with iconic brands, such as Diesel, Paul & Shark,
Ermenegildo Zegna and Timberland to name a few.

The number of brands in Reliance Brands’ portfolio of
partnerships exceeds 30 brands, of which the Company
co-owns 20 brands for the India territory while the
remaining are licenses/franchises. The number of stores
grew to 50. During the year Reliance Brands announced
partnerships with:

(cid:1)

Iconix Brand Group, a brand management company
that owns the fashion and home brands such as Ed

Hardy, Mossimo, London Fog and Ocean Pacific. The
partnership will own the brand rights from the Iconix
portfolio for the Indian territory

(cid:1) Kenneth Cole to license the merchandise for retail
and premium wholesale in India for the American
clothing brand

(cid:1)

Thomas Pink for a franchise arrangement

Marks and Spencer

Reliance Retail’s partnership with Marks and Spencer
continues to grow rapidly since the formation of the JV in
2008. In a period of 4 years, the business has seen rapid
retail development.

The JV has witnessed 20% same store sales growth and
has doubled its retail space in FY 2011-12. Marks &
Spencer has a ubiquitous presence in the retail landscape
of the large cities in India and is on an aggressive store
roll-out plan.

Vision Express is Europe’s largest optical chain with over
4000 stores in 30 countries. In India, Vision Express retails
optical products through a JV of Reliance Retail and
GrandVision. Vision Express offers customers’ eye wear
and offers the most comprehensive 11 step eye test in the
country. The tests are conducted on the finest international
equipment.

Vision Express ramped up its presence at a rapid pace by
adding 55 stores during the year, taking the store count to
over 150 stores.

Office Depot

Reliance Retail operates a JV with Office Depot Inc., a
global supplier of office products and services for
providing office supplies to the Indian institutional market.

The JV has built a significant business through a network
of 8 branch offices across the country.

The retail footprint of Office Depot stores, set up by
Reliance Retail, is undergoing test marketing in Bangalore.
This network of 4 stores has provided reasonable
understanding of the demand for office products in a retail
environment.

Future Outlook

Overall retail sales are expected to grow to approximately
$ 675 billion by 2016 from the current $ 470 billion, offering
immense opportunities for expansion of organised retail.

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Partnering India's new future. Sustainably.

Reliance Retail seeks to add alternative channels to reach
out to customers. These channels will provide the
convenience of anytime, anywhere shopping with an
access to a wide variety of products, thereby making the
shopping experience more enjoyable. Saturating markets
and gaining market share in certain key markets is integral
to Reliance Retail’s strategy for future growth. Reliance
Retail will continue to add density of stores to gain market
share across the country.

It will work with its supplier base to offer differentiated
product experience to customers. A central theme is
provided by the Loyalty Programme, which has over 9
million registered customers.

Infotel Broadband

Operating Environment

From less than 5 million mobile users in 2001, India has
grown to more than 800 million mobile users and continues
to add close to 10 million new customers every month.
India is now the second largest and the fastest growing
telecom market in the world.

Despite the growth in telecom, India has not kept pace
with the world in terms of more advanced communication
technologies. Today, broadband in India only has around
1% market penetration (13 million connections) compared
to the West where there is over 60% market penetration
and China, which has a rapidly growing market of over
150 million broadband users.

Broadband access to the internet will fundamentally
change the way Indians work, live and play. The internet
provides access to millions of applications, services and
content, delivering a wide array of offerings, such as email,
voice and video communications, news, productivity,
social networking, games, education, health and fitness,
finance, travel and e-commerce. For businesses too,
business to business (B-to-B) transactions can be
efficiently and universally consummated via the internet,
instead of point-to-point proprietary systems. Such rapid,
ubiquitous and just-in-time access to relevant information
has the potential to bring unprecedented efficiency to
enterprise activities like manufacturing and supply chain.

Update on Infotel

During 2010, RIL acquired a 95% stake in the equity of
Infotel Broadband Services Limited. with the intention of
creating a nation-wide network of next-generation wireless
broadband services. Infotel was the only successful bidder

in all of the 22 circles in the Broadband Wireless Access
(‘BWA’) auction conducted by Department of
Telecommunication, Government of India. Reliance can
now offer fourth generation wireless infocomm services
across the nation through the 20 Mhz, contiguous, pan-
India spectrum secured through this acquisition.

Reliance plans to use LTE technology for its country wide
network deployment to provide connectivity and related
digital services to its customers. LTE is an advanced
technology with capability to pack more bits per hertz of
spectrum (called spectral efficiency), thereby providing
better throughput, network capacity, performance
management and drive down the unit cost of delivering
bandwidth.

The global ecosystem for LTE is also developing rapidly.
As on date, there are 300 operators investing in LTE across
90 countries and there are 50 networks based on LTE
technology in 30 countries already in commercial stage.
LTE-capable devices are rapidly developing to meet current
and future needs of operators and their customers. There
are over 200 LTE devices launched globally, addressing a
variety of market segments and needs – routers, dongles,
modules, notebooks, smartphones, tablets, PC cards to
name a few. These include products like Apple’s fourth
generation i-phone, their third generation i-pad tablet, the
android based Samsung Galaxy Note and Microsoft’s 4G
LTE Windows phone.

In addition to LTE and its future versions, Reliance will
continue to evaluate and deploy other technologies, both
wireless and wireline, to offer comprehensive broadband
solutions to consumers, small businesses, enterprises,
government and other entities.

Broadband networks are necessary, but not sufficiently
available for digital services to develop fully in India. The
concurrent development of the following four areas is
required to provide superior customer experience with
respect to digital services:

(cid:1)

Broadband network, which provides high speed
reliable connectivity

Broadband-enabled devices, which enables smooth
interface and rich interaction

Locally relevant digital content, services and
applications

Support services to assist customers across the entire
consumer lifecycle.

Reliance Industries Limited 43

Globally, many operators have focused primarily on the
creation of the broadband network. However, Reliance will
focus on making available all the components of the entire
digital value chain.

To deliver such end-to-end solutions, Reliance will
collaborate with strategic partners including service
providers, infrastructure providers, device manufacturers
and other participants in the ecosystem.

Reliance will also leverage its broadband network to
support the requirements for homeland security
applications and services, which can benefit from the
advantages of low latency and assured quality of services
that are integral to 4G networks. Insurgency and terrorism
have become global challenges, and in light of the recent
terrorist attacks on major cities, the citizens of India have
a dire need for digital surveillance and security services.
The traditional security platforms have been found
inadequate to address the new challenges associated with
global terrorism and there is a need to support the efforts
of our law enforcement agencies with intelligent and real-
time electronic and digital solutions. Reliance is working
with global partners to bring state-of-the-art homeland
security solutions to the Indian market.

Other Developments

Reliance Haryana SEZ Limited

The development activity of Model Economic Township
(MET) in the district of Jhajjar Haryana has begun with
some of the leading Japanese multinationals undertaking
the development of their industrial units.

The State Government has recommended the project to be
declared as a node of the Delhi Mumbai Industrial Corridor
which is under consideration by appropriate authorities.

The MET has been envisioned to be developed as an
industrial infrastructure to support economic growth
through a JV between Reliance Ventures Limited
(a subsidiary of RIL), Infrastructure Leasing And Financial
Services Limited (IL&FS) in a public-private partnership
framework with the Government of Haryana through
HSIIDC Limited (a Government of Haryana company).

Reliance Haryana SEZ Limited (RHSL), a JV of RVL and
HSIIDC, will demerge the MET project at Jhajjar to enable
induction of IL&FS.

RIL – D. E. Shaw JV

In FY 2010-11, RIL and the D. E. Shaw group formed a JV
to build a leading financial services business in India.
This 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 is awaiting necessary regulatory
approvals for the commencement of business activities.

Acquisition of Stake in Extramarks Education

Infotel Broadband Services Limited (Infotel), a subsidiary
of RIL, acquired a 38.5% stake in Extramarks Education
Private Limited. (Extramarks), a company focused on
school education and digital learning. The investment in
Extramarks has been made through an affiliate company
Reliance Strategic Investments Ltd. This investment will
enable Extramarks pursue its aggressive growth plans in
further developing services and wider market penetration.
Extramarks’ digital distribution model will provide
invaluable services to the student community across age
groups including education support and study help at
affordable prices.

Increase of Stakes in EIH Limited

In FY 2010-11, RIL, through its wholly-owned subsidiary
Reliance Industries Investment and Holding Private
Limited, acquired 14.8% of EIH Limited from Oberoi Hotels
Private Limited and certain other promoters. During the
year, RIL further increased its stake to 18.53% in EIH
Limited.

Acquisition of Stake in TV-18

During the year, companies effectively wholly owned by
RIL, entered into binding agreement with TV18 Broadcast
Limited (TV18) for divesting the investments in various
ETV channels being operated and managed by Eenadu
Group. Completion of this divestment is subject to receipt
of regulatory approvals and completion of the proposed
rights issue of Network18 Media & Investments Limited
(‘Network18’) and TV18.

Independent Media Trust (‘Trust’), a trust of which RIL is
a sole beneficiary, has entered into subscription agreement
with promoter companies of Network 18 for subscribing
to the zero coupon optionally convertible debentures
(ZOCD) to enable the Promoter Companies of Network18

4 4

Partnering India's new future. Sustainably.

to subscribe to the promoters entitlement and
unsubscribed portion of the proposed rights issue of
Network18 and TV18.

Infotel Broadband Services Limited (‘Infotel’), a subsidiary
of RIL, has entered into a content license agreement with
Network18 and TV18, under which Infotel shall have
preferential access to (i) the content of all the media and
web properties of Network 18 and its associates and (ii)
programming and digital content of all the broadcasting
channels of TV18 and its associates on a first right basis
as a most preferred customer.

RESEARCH & DEVELOPMENT, TECHNOLOGY
DEVELOPMENT AND INNOVATION

Research & Technology and Innovation continue to be
one of the key focus areas to drive growth of Reliance
Industries Limited (RIL) besides ensuring sustainability
and helping the company take a leap in rural
transformation.

Consistent with RIL’s aspiration to become a best in class
technology developer ‘Reliance Technology Group’ (RTG)
is working as a focal point to integrate Research and
Technology (R&T) initiatives across the organisation. In
addition to developing new products and technologies
for existing businesses/manufacturing, RTG is also
working on building capabilities to develop breakthrough
technologies that will create new businesses for RIL.

To strengthen the R&T capabilities at RIL, work is
underway to create a world class R&T center in Mumbai
with best in class physical infrastructure and an
environment conducive for attracting and retaining the
best global R&T talent.

RTG continues to focus on four broad categories of
Research and Development (R&D), advanced technical
services, support to capital projects, and capability
building. To support the above activities the group
consists of highly qualified, energised team of engineers
and scientists.

In the Refining area RTG has expanded its horizon to
include thermal cracking and hydro-processing as key
areas of research besides continuing to pursue research
in the area of fluid catalytic cracking, crude processing
and providing advanced technical support through
computational fluid dynamics and other advanced
simulation tools.

In the Petrochemicals area, RTG is providing technology
support to olefin crackers, polymers, fiber intermediates,
linear alkyl benzene (LAB), and polyester. The focus areas
in petrochemicals include efficient asset utilization,
development of specialty product grades/materials,
development of catalysts/additives for cost reduction,
value addition to by-product streams, and leveraging
opportunities at the chemicals/oil interface.

RTG is also working on breakthrough technologies, such
as fuel cells, carbon fibers, bio-fuels, and gasification of
several types of feedstock.

Some major on-going/completed projects include:

(cid:1) Development/commercialisation of a process for

propylene maximization in refinery.

(cid:1) Development of in-house additive for propylene

maximisation in refinery.

(cid:1) Development of highly active fluidised catalytic
cracking (FCC) catalyst for improved conversion.

(cid:1) Development of mesoporous zeolite to improve

product selectivity in FCC units.

(cid:1) Development of process for improving BMCI (Bureau
of mining correlation index) of Clarified slurry oil.

(cid:1) Development of a process for conversion of low value

hydrocarbon streams to light olefins.

(cid:1) Development of technology for removal of chlorides

from hydrocarbon stream by new process.

(cid:1) Development of a new process for acidity reduction

of crude oils.

(cid:1) Development of a process for crude de-asphalting.

(cid:1) Development of technology for mitigation of

corrosion in heavy vacuum gas oil circuit.

(cid:1) Determination of actual corrosion potential of high

acid crudes.

(cid:1) Application of molecular compositional blending

models.

(cid:1) Application of computational fluid dynamics studies
for troubleshooting and process improvements in
refineries and petrochemical plants.

Reliance Industries Limited 45

(cid:1) Development of a new catalyst, process and product
for ultra-high molecular weight polyethylene
(UHMWPE).

(cid:1) Development of technology for regeneration and
alternate applications of spent catalysts and
adsorbents.

(cid:1) Development of superabsorbent polymers.

(cid:1) Development of microbial and photocatalytic

processes for effluent treatment.

(cid:1) Development of technology for defluoridation

process for plant wastewater.

(cid:1) Development of specialty chemicals from the C6-C8

by-product stream of polyethylene plants.

(cid:1) Development of catalyst and process for on purpose

Hexene-1 production from ethylene.

(cid:1) Development of a process for chlorinated polyvinyl

chloride.

(cid:1) Application of computational studies of next
generation catalyst system for olefin polymerisation.

(cid:1) Development of sixth generation catalyst system and

products for poly-olefins production.

(cid:1) Development of processes with productivity

improvement for purified terepthalic acid.

(cid:1) Development of more environment friendly processes

for purified terepthalic acid manufacture.

(cid:1) Development of alternate polyester for stretch and

comfort fabrics.

(cid:1) Development of hollow filaments for light weight and

insulation fabrics.

(cid:1) Development of alternate polyester for bonding

application.

(cid:1)

Productivity enhancement for coarse and super-
coarse polyester filament yarns.

(cid:1) Development of technology for value addition of by-

(cid:1) Development of new hydrophilic spun lace fibres for

product olefins.

non-woven applications.

(cid:1) Development of a new generation paraffin

(cid:1) Development of indigenous spin finishes for polyester

dehydrogenation catalyst.

and indigenous additives.

(cid:1) Development of a continuous catalytic regeneration
(CCR) reforming catalyst for xylenes production.

(cid:1)

Increased the capacity of carbon black polyester
staple fibers through master-batch injection.

(cid:1) Development of technology for coke-less cracking.

(cid:1) Development of materials for catalytic applications.

(cid:1) Development of technology for methanol to olefins

conversion using micro porous materials.

(cid:1) Development of self-healing elastomers.

(cid:1) Development of an improved catalyst system for

higher productivity of polypropylene.

(cid:1)

Improvement in the morphological behaviour of
catalyst systems for 1-alkene polymerisation.

Expansion of catalyst precursor production.

(cid:1) Development of technology for multi-phase
polyolefin product characterization and development
initiatives.

(cid:1)

Creation of advanced poly-olefins synthesis and
characterisation facilities for in-house development.

(cid:1) Development of anti-pilling polyester, binder fibre,
UV stable polyester, insect repellent, fire retardant
and multifunctional yarns.

(cid:1) Development of cobalt-free polyethylene

terephthalate resin.

(cid:1) Development of technology for product performance
enhancement in recycled polyethylene terephthalate.

(cid:1)

Development of specialty polyester yarn for replacing
other yarns such as viscose, nylon, cotton and
acrylics.

(cid:1) Development of polyethylene terephthalate bottles
for packaging oxygen sensitive foods and beverages.

(cid:1) Development of extrusion blow moulding grade

polyethylene terephthalate.

(cid:1)

Replacement of asbestos fibres with polyester.

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RTG is actively participating in various collaborative
projects in India and overseas with institutes such as IIP
Dehradun, IIT Mumbai, PARC USA, Tulsa University
USA, PDDU Ahmedabad etc. to jointly develop new
breakthrough technologies and establish synergies with
academia and industrial R&D. RIL continues to be a sole
industry partner in the New Millennium Indian
Technology Leadership Initiative (NMITLI) project on
indigenous PEM Fuel Cell technology development.

RTG 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).

Some additional highlights of RTG are given below:

(cid:1) All the RTG labs are recognised by the Department
Scientific and Industrial Research New Delhi (DSIR),
Govt. of India.

(cid:1)

Scientists and engineers at RTG are invited as
speakers/presenters at various conferences.

RTG is highly focused on creation and protection of
intellectual property (IP) for the company; RIL’s
patent portfolio is increasing.

RTG will continue to support the R&T needs of the
organisation to get maximum utilisation of RIL assets; in
countering potential technology related threats to our
businesses; and in identifying, developing, and
implementing technology related opportunities to fuel
RIL’s future growth.

Innovation

Innovation is ingrained in the DNA of RIL since inception.
RIL has reinvented many businesses and changed the
game over the last few decades. As it reaches for greater
heights, the organisation will strive to institutionalise
innovation as a way of life leading to innovation led
growth.

A distinguished Reliance Innovation Council (RIC)
comprising global thought leaders provides the vision for
innovation to the organisation. Through physical meetings
in India and constant deliberations with the leadership of
Reliance, the council gives direction to the strategic
thinking of the organisation. It is indeed an excellent
opportunity to get insights and advice from Nobel
Laureates and other luminaries of stature.

This year the RIC was held on the 10th and 11th of February
2012. It was attended by all the RIC members. As always,
breakthrough thinking over two days with the leadership
of RIL led to new direction promising path breaking
outcomes. Going beyond the two day meeting, RIC
members also provide on-going guidance to help shape
some of the innovative technologies that are under
development.

The Reliance Innovation Leadership Centre (RIL-C) which
services the council, implements the innovation agenda
throughout the organization. Its primary focus is to design
and deploy innovation programmes that would help make
RIL one of the most innovative companies in the world.
The aspiration is to climb higher on this limitless ladder of
excellence.

The Leading Expert Access Programme (LEAP) strives to
inspire the human resource of Reliance through talks and
lectures by global innovation leaders. These leaders share
their work, life and experiences which leave indelible marks
on the minds of our people. From Nobel Laureates to
corporate leaders and from social crusaders to policy
makers LEAP speakers have enthralled and inspired our
people.

Some exciting initiatives addressing the creation of next
businesses based on emerging technologies are showing
great promise. RIL surely is well on its way in creating
new exponential value through innovation led growth!

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 2011-12, following three projects of RIL were
registered at UNFCCC:

a) Energy efficiency through heat recovery at Vadodara

manufacturing complex of IPCL.

b) Biomass based process steam generation project at

Barabanki Manufacturing Division.

c) Solar Power Generation Project at Khinwsar,

Rajasthan.

Verification audits of four of the registered projects for

Reliance Industries Limited 47

issuance of more than one lakh CERs are in progress. Site
audits have been are completed and request for issuance
will be submitted shortly by the auditors to UNFCCC.

the centre piece of our people strategy, is an unequivocal
success, towards investing in youth and building a
pipeline of young talent.

Human Resources Development

RIL talent base as on March 31, 2012 stands at 23,166.

As the Organisation continues to grow exponentially and
takes significant strides towards being a Global major, there
is an increasingly sharper focus on the HR functional
alignment with the business and building people
capability.

Redefining the contours for a futuristic HR Organisation

Keeping in view the need of the current times, the HR
Organisation has undergone significant change. During
the year the focus has been on the establishment of
Centres of Excellence focused specifically on Talent
Acquisition, Talent Management, Learning &
Development, Compensation & Benefits and Industrial
Relations.

Business Transformation [BT] striding towards creation
of an “Employer Brand”

The BT journey that we had embarked over a year ago is
turning out to be truly transformational.

The design work on the organisational architecture,
benchmarking of all HR business processes, policies and
systems with the best in class and creating a HR framework
for the future has been completed. The year ahead is going
to be an extremely challenging one which will focus on
relentless and seamless implementation .From the people,
process, HR practices and HR system perspective, the
organisation is well and truly on its way to being an
“Employer of Choice”.

Creating a robust pipeline of Leaders

The year gone by has seen a huge focus on building a
truly global talent base.

There has been considerable emphasis on Leadership
hiring to cater to both our current and future requirements.
The endeavour to seek out and recruit the best talent in
the world has paid rich dividends, with close to 100
leadership recruitments in the current year consisting of a
diverse mix of expatriates and in country talent, with about
20% being expatriates.

The Reliance Accelerated Leadership Programme [RALP],

The hiring process for RALP was through an extremely
robust and stringent recruitment process. 32 professionals
across four functional streams – IT, HR, FC&A and P&C,
in the age bracket of 27-34 are being groomed to occupy
leadership positions over the next few years.

To specifically work on the Business Transformation
initiative, we recruited 37 bright young professionals,
primarily from the Consulting Industry, in the experience
bracket of 4-7 years.

Our campus recruitment initiatives, continues to grow from
strength to strength. During the current year we hired 55
Management Graduates, 37 Chartered Accountants and
340 Graduate Engineers from leading institutes across the
country. The numbers are only likely to swell in the future.

Building Skills and Capabilities of the Workforce

There were a total of 16,87,893 man-hours of learning which
was delivered in the current year including six sigma
training of 21,156 man-hours.

Six Sigma initiatives continued during the year to reap
rich dividends. RIL’s Six Sigma process is designed to
improve the performance of the organization, which is a
management driven initiative, linked to RIL’s Vision,
Mission & Business Strategy to meet its short and long
term business objectives.

As a part of Business Transformation, the process of Six
Sigma has been standardized, to be called “Improve
Performance” which is subdivided into three sub-
processes, namely,

a) Performance Benchmarking & Gap Analysis

Idea Management

c) Knowledge Management

In the FY 11-12, the employee who have undergone green
belt training were 102, certified as Reliance Certified Green
Belts being 4 and Reliance Certified Black Belts at
completion stage being 11 Nos.

The FY 11-12, saw 23 Certified Six Sigma Black Belts
working in all manufacturing sites and 115 black belts and
green belts involved in improvement projects. The year
saw the completion of 102 Six Sigma projects in which 612

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supervisory personnel were engaged and resulting in
annualised saving of INR 36 crore.

Keeping in line with RIL’s commitment to develop in-house
talent, the first in the series of academies, was rolled out in
the form of the FC&A Academy. The coming year will see
us partner with leading institutes across the world to
establish the Leadership Academy, the Manufacturing
Academy and the Other Functional Academy’s.

Our quest is towards creation of a world class platform for
learning for all employees in the Organisation.

AWARDS AND RECOGNITION

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

Leadership

(cid:1)

Shri. Mukesh D. Ambani, Chairman and Managing
Director, Reliance Industries Ltd. received the
‘Business Leader of the Year’ award at the Hello Hall
of Fame Awards, 2011.

Shri H.S.Kohli President, Reliance Industries Limited
was conferred upon with the D. M. Trivedi Life Time
Achievement Award by the Indian Chemical Council
(ICC) for his contribution to chemical industry.

RIL received the Euromoney Deals Award for the year
2011 for the deal between RIL and BP Plc.

Corporate Rankings and Ratings

(cid:1)

RIL continues to be featured for the seventh
consecutive year, in the Fortune Global 500 list of the
World’s Largest Corporations and ranked 134th based
on Revenues.

RIL is the only Indian company to feature in “2012
Global 100 Most Sustainable Companies of the world”
by Corporate Knights.

Reliance Industries Limited (RIL) was awarded
Application Level A+ certification by Global Reporting
Initiative (GRI) for its FY 2010-11 Sustainability Report
– “New Businesses. New Technologies. New
Partnerships. (2011)”.

Boston Consulting Group and Business Week rank
RIL among the top 50 innovative companies of the
world.

Quality

(cid:1) Allahabad Manufacturing Division got Performance
Excellence trophy from IMC Ramakrishna Bajaj
the
National Quality Awards 2011 under
manufacturing category.

(cid:1) Hazira Manufacturing Division won “Silver” Award
at International Convention for Quality Control
Circles (ICQCC) 2011 organized by Union of Japanese
Scientists and Engineers (JUSE) at Yokohama, Japan.

(cid:1) Hazira Manufacturing Division won the American
Society for Training & Development (ASTD) Award
for “TQM Training Program” with respect to RIL’s
exemplary practices in work place learning and
development.

(cid:1) Nagpur Manufacturing Division received the
“International Star Award for Quality (ISAQ)” at
Business Initiative Directions (BID) Convention,
London.

Project

(cid:1) Vadodara Manufacturing Division won the “Highest
Par Excellence Award - 2011” for the Lean Six Sigma
project from Quality Circle Forum of India (QCFI).

(cid:1)

Patalganga Manufacturing Division bagged Six Sigma
award in the category of “Best Innovative Continuous
Improvement” at the Lean & Process Improvement
Six Sigma Summit organized by International Quality
& Productivity Center (IQPC) at Singapore.

Patalganga Manufacturing Division received the
national level first prize at 5th Six Sigma Competition
from CII in the category of “Best Quality improvement
Project in Continuous Manufacturing Organization”.

(cid:1) Hazira Manufacturing Division won First & Second
honours in the “Best Process Improvement Project”
in manufacturing category at Lean Six Sigma &
Process Improvement Summit organized by
International Quality & Productivity Center (IQPC) in
New Delhi.

(cid:1) Hazira Manufacturing Division awarded the Qualtech
Award- 2011 in “Manufacturing Improvement
category” at Qimpro Convention, 2011 for the Six
Sigma project.

Reliance Industries Limited 49

Health, Safety and Environment

(cid:1)

RIL received the Responsible Care RC 14001
certification (as per American Chemistry Council
specification) issued by M/s DNV and registered at
the American National Accreditation Board (ANAB),
USA.

(cid:1) Vadodara Manufacturing Division received the CII
Environment Best Practices Award 2012 for “Most
Innovative Environmental Project”.

(cid:1) KG-D6 operations were given Five Star Safety Rating
by the British Safety Council, UK in recognition of
good safety practices.

(cid:1) Allahabad Manufacturing Division received the Gold
Award in Textile sector for outstanding achievement
in safety management from Greentech Foundation.

(cid:1) KG-D6 operations are selected for the Best Processing
Plant by the Oil Industry Safety Directorate, Ministry
of Petroleum and Natural Gas (MoPNG).

(cid:1)

Barabanki Manufacturing Division received the Five
Star certification from British Safety Council in 2011.

(cid:1) Hazira Manufacturing Division won American Society
for Training & Development (ASTD) Award for
“Safety & Operational Training for Employees &
Contractors”.

(cid:1)

Jamnagar DTA Refinery received the British Safety
Council Five Star Certification in Occupational Health
& Safety Management.

Jamnagar DTA Refinery was honoured with the Five
Star Award for Health & Safety Management by the
British Safety Council, UK.

The Jamnagar SEZ Refinery received the Five Star
Award for Environment Management System by the
British Safety Council, UK.

Jamnagar SEZ Refinery awarded 10th Annual
Greentech Safety Award 2011 in Platinum Category in
Petroleum Refinery sector, for the outstanding
achievement in Safety Management.

Jamnagar SEZ Refinery received Srishti’s ‘G-Cube
Award-2010’ for ‘Good, Green, Governance’.

Both, DTA and SEZ refineries at Jamnagar were
awarded with Safety Innovation Award 2011 from
Institution of Engineers, New Delhi for implementation
of Innovative Safety Management System.

Jamnagar SEZ Refinery received the Golden Peacock
Environment Management Award for the year 2011
from GPA Secretariat, New Delhi.

(cid:1) Naroda Manufacturing Division received the British
Safety Council Five Star Certification on Environment.

(cid:1) KG-D6 operations were awarded the British Safety
Council – Sword of Honour towards best safety
performance.

Energy & Water Conservation / Efficiency

(cid:1) Hazira Manufacturing Division won the First Prize in
“National Energy Conservation Award 2011” in the
Petrochemical sector awarded by Ministry of Power.

(cid:1) Hazira Manufacturing Division won the “Excellent
Energy Efficient Unit Award” for FY 2010-11 during
the Energy Summit organized by CII for the 8th
consecutive time.

(cid:1)

Jamnagar DTA Refinery received the CII Excellent
Energy Efficient Unit Award for 2011.

Jawaharlal Nehru Centenary Award for specific energy
consumption from Centre for High Technology
(CHT), Ministry of Petroleum and Natural Gas
(MoPNG) was received by Jamnagar DTA Refinery.

Jamnagar SEZ Refinery received the National Energy
Conservation award 2011, from Bureau of Energy
Efficiency, Ministry of Power.

Reliance Corporate IT Park, Navi Mumbai received
the 1st prize at 7th Maharashtra State level Energy
Conservation Award for the year 2009-10 in
Commercial Building Category.

Technology, Patents, R & D and Innovation

(cid:1)

RTG received National Technology Award for in house
technology development in polypropylene catalyst.

RTG scientists have received the Vividhlaxi Audyogik
Samshodhan Vikas Kendra (VASVIK) Award.

RTG received the “NOCIL award for excellence in

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Partnering India's new future. Sustainably.

design or development of process plant and
equipment” and “Eminent Chemical Engineer Award”
from the Indian Institute of Chemical Engineers (IIChE)

(cid:1)

(cid:1) Hazira Manufacturing Division won the Golden
Peacock Eco-Innovation Award for 2011 in
Petrochemical sector, awarded by World Environment
Foundation (WEF) in association with Institute of
Directors (IOD).

(cid:1) Hazira Manufacturing Division won the National
Award 2011 for successful commercialization of
indigenous technology from Ministry of Science &
Technology.

Corporate Social Responsibility

(cid:1) Dahej Manufacturing Site received the 2nd Annual
Greentech HR Gold Award 2012 in Training Excellence.

(cid:1)

RIL inducted into Palladium Balanced Scorecard Hall
of Fame for Executing Technology having achieved
execution excellence through use of Balanced
Scorecard.

(cid:1) Hazira Manufacturing Division won the Golden
Peacock National HR Excellence Award-2011 in
Petrochemical sector.

(cid:1) Hazira Manufacturing Division won the Golden
Peacock Global Award for CSR 2011 in Petrochemical
sector.

RIL Group Manufacturing Services (GMS) received
the American Society for Training & Development
(ASTD) Best Award, 2011 for workplace learning &
performance.

Retail

(cid:1)

Reliance Trends received the ‘Retail Marketing
Campaign of the Year Award’ at the Asia Retail
Congress 2011.

Reliance Trends received the ‘Innovative Retail
Concept Award for Performax’ at the Asia Retail
Congress 2011.

Reliance Trends received the ‘Retailer of the Year 2011
Award’ for the ‘Fashion & Lifestyle’ category at the
Asia Retail Congress 2011.

Reliance Trends received the ‘Most Admired Retailer
of Store Brands Award’ under the ‘Apparel &
Clothing’ category at the Primal Label Forum, 2011.

Sustainability

(cid:1)

RIL won the prestigious National Golden Peacock
Award 2011 for its outstanding contribution in the
field of corporate sustainability.

(cid:1) Hazira Manufacturing Division won the prestigious
CII-ITC Sustainability Award for the year 2011 for its
strong commitment towards sustainable excellence.

Report on Corporate Social Responsibility

Reliance Industries Limited 51

RIL upholds a deep conviction in Corporate Social
Responsibility (CSR) that transcends all operations and
businesses. Reliance has contributed to the growth of all
its stakeholders and to the transformation of the society
at large. The efforts in this direction have fortified RIL
into a robust, resilient and sustainable company.

At RIL, dispensing CSR has encompassed a broad range
of activities. It implies not only protecting the health and
ensuring the well-being and security of our employees,
but that of the local communities also, in which we operate.
It equally extends to suppliers, customers and consumers.
In spirit and action, RIL is committed to its policy of “Safety
of persons overrides all production targets”. In a larger
perspective, such endeavours are taking Reliance towards
social institution building for sustainability and building
a strong and vibrant India.

Baroda. At its manufacturing divisions and E&P locations,
RIL has developed Community Medical Centres. These
centres provide comprehensive health services -
preventive and curative - to the residents of neighbouring
villages. In Andhra Pradesh, a Primary Health Centre (PHC)
has been established by RIL to serve nine villages of
Gadimoga and Bhairavapalem panchayats. The health
centre has a provision to accommodate 30 beds for
inpatient treatment. It is ready to be handed over to the
Government of Andhra Pradesh.

Showing sensitivity towards emotional health and
psychological well-being of its employees, Reliance has
launched the Work Life Project across various sites. It
goes beyond physical health and focuses on promoting
emotional health and psychological well-being, among
people, through trained ‘missionaries’.

Health, Safety & Environment (HSE)

Safety

Health

RIL focuses on achieving excellence in occupational and
personal health of all its employees. With this objective,
RIL has undertaken ‘Mission Wellness’ at all its
manufacturing sites, Exploration and Production (E&P )
locations, as well as its offices to improve and maintain
employee health, RIL has set up state-of-the-art
Occupational Health Centres (OHC) at all manufacturing,
E&P locations and major office complexes including the
Reliance Corporate Park (RCP). The OHCs are well
equipped to provide comprehensive emergency medical
services, and also offer preventive, promotive and curative
health services to the employees. With wellness of one
and all as the agenda, all Reliance employees as well as its
contractors’ employees at manufacturing sites undergo
regular periodic medical examinations. A High Alert
system has been implemented to prevent any medical
complications.

For driving awareness against lifestyle diseases, the
Company’s medical and occupational health departments
organise structured monthly programmes for health
awareness, offering daily health tips and personal
counselling. Such health awareness programmes are
conducted across all sites and major offices.

A noteworthy addition to health infrastructure this year is
the establishment of, state of the art Special Burns
Treatment unit at the hospitals at Dahej, Nagothane and

In 2007, RIL embarked upon the journey towards world
class HSE Management System. The goal set by Mr.
Mukesh D. Ambani, Chairman & Managing Director was
‘Radical Complete Transformation of Safety Culture to
achieve World Class Safety Standards’ in partnership with
DuPont Safety Resources.

Standardization of HSE processes and their integration
into business processes was undertaken as a part of the
Business Transformation initiative. The integration
included defining safety related controls. RIL’s
Petrochemical and Refinery manufacturing facilities
continued to institutionalize RIL HSE Management
System. This was achieved by making the line management
responsible for HSE implementation through safety sub-
committee approach. Risk Management and Process
Hazard Analysis were further strengthened to help mitigate
the risks and for more efficient and effective Emergency
Response planning. As a consequence there was
reduction in inventory of some toxic materials at sites.
Under “1- Reliance,” the process of integrating Safety
Management System began across the RIL Group,
including upstream operations and Polyester sites.

RIL, as a signatory to the ‘Responsible Care’ movement,
invited DNV to assess its facilities in line with the
requirements of RCMS 14000. In the initial phase, the Head
Office facilities at RCP and Hazira manufacturing facility
were audited by DNV. Based on this audit, RIL is now
certified to the RCMS 14000 standard.

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Partnering India's new future. Sustainably.

RIL continued to strengthen its networking with national
and international organisations in the safety arena. To
continuously improve safety performance, the internal
auditing process for safety was further strengthened. For
this, First Party and Second Party Audits, in line with the
RIL Group Standards, were instituted in the areas of
Process Safety Management, Workplace Safety,
Contractor Safety Management, Fire and Distribution
Safety.

Environment

Committed to the environmental stewardship programme,
RIL has undertaken several measures in this direction.

(cid:1)

RIL’s manufacturing divisions and upstream gas
handling terminal have instituted ISO-14001
Environmental Management System (EMS), and
obtained re-certification wherever necessary.

For harnessing the optimum benefit of the system in
majority of manufacturing divisions and offshore gas
handling terminal, it has been integrated with ISO:
9001:2008 Quality Management System and ISO-
18001:2007 Occupational Health and Safety
Management Systems (OSHA).

RIL follows the Global Reporting Initiative’s G3.1
Guidelines for developing its environment
performance indicators.

The Integrated Management System (IMS) is also
audited by a third party and accreditation is provided.

(cid:1) A “Responsible Care” initiative of ICC has been
initiated to further strengthen the RIL’s commitment
to HSE.

The selection of project, assessing its impact on the
society and the environment, including the engagement
of neighbouring community and other stakeholders, is an
on-going activity at upstream and all manufacturing
locations. This concerted effort is aimed at developing
environmental initiatives to address RIL’s long term target
of becoming water positive, carbon neutral company with
maximum possible recycling and reuse of wastes. What
has been achieved is a significant trend towards reduction
in specific emissions, energy consumption and discharges,
with a marked increase in effluent and waste recycling.

RIL in its constant endeavour to be fully compliant with
all applicable environmental regulations, has instituted a
compliance management system. Therefore, prior to the

commissioning of projects, the potential environmental
impacts and risk analysis of all new proposed projects are
considered. If required, necessary measures are
incorporated to mitigate adverse environmental impacts
prior to commissioning of the projects.

Continuing its relentless drive to meet world class
environmental performance during FY11-12, RIL
developed a group standard and second party audit
protocol for the electronic waste management. During this
financial year, an international agency was engaged to
develop group-wide Environmental Management Process.
Taking this further, under the project STAR, a road map
has been drawn for the implementation of an integrated
system-based processes transformation.

RIL has developed and instituted a three-tier audit system.
During FY11-12, half of the standards for second party
audits were covered and the remaining ones have been
planned in the following year. The third tier audit includes
environment audit by external agencies which include
annual audit by Gujarat Pollution Control Board (GPCB)
recognised auditors in Gujarat; and ISO-14001:2004 audits
by the accreditation agencies. This year a five star
environmental audit by British Safety Council, UK was
performed at Jamnagar SEZ refinery, Vadodara
manufacturing division, Patalganga manufacturing
division and Naroda textile division. With this, RIL’s 13
manufacturing divisions have been audited for its
environmental management by the British Safety Council
(BSC). Hazira manufacturing division, along with Head
Office, was audited for the Responsible care RC-14001
and both were certified by the ICC.

Maintenance of assets and improvement of their
performance are given top priority at RIL. In this context
all pollution abatement facilities such as effluent treatment
plants, in-side battery limit air emission control, and waste
disposal facilities are maintained and operated in line with
the industry’s best practices.

To further the cause of environmental sustenance, in every
manner possible, most of RIL’s manufacturing divisions
have taken up rain-water harvesting initiatives. This
reduces dependence for water on natural sources.

RIL’s efforts such as mangrove plantation and its
maintenance in the coastal areas, with the help of
international agencies creation & maintenance of green
belts and gardens in and around the upstream and
manufacturing units; vermi-compost of waste and its use

Reliance Industries Limited 53

as manure; and recycling of treated water in cooling water
system and in horticulture activities are imbued in our
culture of sustaining the earth’s environment.

Social Responsibility and Community Development

Education

Evolving lives through education and building a rich pool
of human resource for India, RIL has developed its own
network of 11 schools in and around the manufacturing
units of the company in Jamnagar, Surat, Vadodara,
Patalganga, Nagothane and Nagpur benefitting more than
15000 students . These schools promote education among
children of the underprivileged communities. The J. H.
Ambani School, Patalganga, provided education to nearly
90 underprivileged children from nearby villages in
Lodhivali during the current year.

To attract children to attend school, and foster a love for
knowledge among them, several initiates are launched
from time to time. For instance, school kits including books,
uniforms, shoes and stationary items were provided to
students from schools falling under Nagpur, Allahabad,
Gadimoga and Bhairavapalam Panchayats. At Hazira, an
initiative, Vanche Vidhyarthi, was launched to inculcate
the habit of reading in children, wherein more than 2,600
books were distributed to 5 schools. A district level quiz
competition, known as the ‘Reliance Dhirubhai Ambani
Quiz’, is an annual affair in Andhra Pradesh. In its second
year of launch, in FY 11-12, more than 1,300 students from
over 300 schools participated in this event.

The J. H. Ambani School in Patalganga supported a
network of institutions working towards the education of
differently abled children. A school for the differently abled
being run at Surat sought to address the issues relating to
learning disability and dyslexia in children.

Reliance Dhirubhai Ambani Protsahan Scheme

The Reliance Dhirubhai Ambani Protsahan Scheme is a
novel step towards encouraging the meritorious poor
students to pursue higher studies. The students who
excelled in SSC examination were provided free education
at intermediate (10 +2) level in leading residential colleges.
So far, the scheme has enabled over 900 students to gain
access to quality education, unburdened by financial
constraints. The scope of this scheme was further extended
to provide financial support to the deserving toppers of
the Protsahan Scheme to pursue their professional
courses in Engineering and Medicine.

Dhirubhai Ambani International School

Dhirubhai Ambani International School recognizes the
imperative of imparting an educational experience that is
world-class in every respect and which prepares children
for global citizenship. The Education World, in its Survey
of India’s Most Respected Schools, ranked Dhirubhai
Ambani International School as No. 1 on Academic
Reputation and on Individual Attention to Students.

Building on the school’s excellent academic record across
all its three streams (the ICSE, the IGCSE and the IB
Diploma), its students achieved impressive results in the
examinations held in 2011 as well. Also, the school’s
performance on university placement continued to be
excellent.

While the academic laurels of the students of the
Dhirubhai Ambani International School were noteworthy,
equally laudable was the service orientation of its students.
The students worked with NGOs like Advitya, Akanksha,
Muktangan, Pratham, Aarambh and Aseema for education
of the underprivileged children. Through ‘Across the Road’
neighbourhood service initiative, the students reached
out to community members in Bandra-Kurla Complex,
Mumbai, with education and health programmes. The
‘Empowering Villages Everywhere’ initiative provided
solar lamps to villages where electricity was scarce,
besides assisting them in education and employment
avenues.

Healthcare

RIL, in partnership with the Government of Gujarat, created
a society named the ‘Dahej Health & Welfare Society’
(DHWS) to run a 50 bed hospital for secondary level
healthcare facilities at Dahej. RIL has invested in the
society and takes care of its daily expenses. This hospital
shall provide free treatment to the Below Poverty Line
families and will extend up to 70% subsidy to the patients
referred by the PHCs. The hospital will also provide
outdoor medical services and organise health awareness
camps for the nearby communities.

In Patalganga, the Dhirubhai Ambani Hospital provides
quality medical care to neighbouring communities. The
hospital provided free or highly subsidized medical care
to over 1,000 residents of surrounding villages during
FY11-12.

Curative healthcare was also provided through mobile
medical vans. To cater to emergencies caused by accidents,
RIL provided a 24X7 ambulance service from the borders
of Himachal to Hoshiarpur.

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RIL also focuses on raising awareness and providing
treatment for HIV/AIDS. A clinic ‘Hamrahi’ operating in
Allahabad provided voluntary testing and counselling for
HIV/AIDS An anti-retroviral treatment (ART) clinic run at
Dhirubhai Ambani Hospital, Patalganga provided free
consultation, counselling and investigation to over 2,500
patients during FY11-12. RIL provided financial assistance
for setting up a new ART centre in the East Godavari
District of Andhra Pradesh and is now ready for operations.
In addition, the Company also renovated the ART centre
in the Government Hospital at Amalapuram, A.P. and
financed the purchase of latest machines and equipment.
The ART Centre at Hazira has catered to more than 65,000
patients. More than 2,700 HIV positive patients have been
enrolled under clinical monitoring; and more than 400
patients have received DOT therapy for tuberculosis
including 37 in the FY 11-12. The Community Care Centre
& Reliance AIDS Care Hospital at Hazira has catered to
more than 2,500 patients. The centre and the hospital have
a number of resident orphans who are HIV positive and
are not fit for staying in a standard orphanage home due
to their need for constant health monitoring. To educate
these children, a small scale school called “Pathshala”
was inaugurated.

Further, the employees at E&P sites and the Reliance
Ladies Club at Hazira initiatives “Chirudeepam” and
“Project Hope” respectively continued with aim to support
children affected by AIDS and supplying them with
nutritive kit every month, as per the WHO standard.
Similarly, the Jamnagar manufacturing division runs
‘Project Balkalyan’, with an objective to provide
nutritional support to children affected with HIV infection.
Nutritional kits were distributed to all HIV positive children
when they visited the centre for monthly follow-up. Hazira
Manufacturing Division, through Reliance Ladies Club
(an association of spouses of RIL managerial employees)
has an on-going child adoption programme to take care of
nutritional requirements of HIV positive children.

Blood donation camps were also organised in various
manufacturing divisions and locations. It is noteworthy
that more than 700 units of blood were collected in the
blood donation camps held at Reliance Corporate Park.

To further the cause of health and sanitation, awareness
campaigns, RIL provided supplementary financial
assistance for the construction of individual sanitary
toilets at household level. More than 300 families of
Gadimoga Panchayat villages benefited from the individual
sanitary facilities.

The commissioning of the new state-of-art tertiary care
multi-specialty hospital in the premises of the Sir H.N.
Hospital & Research Centre will ensure a significant
upgradation in the abilities, activities and outreach.

Reliance Drishti

Reliance Drishti is an initiative launched in partnership
with the National Association for the Blind (NAB) in 2003.
By the end of FY11-12, the project completed over 10,000
free cornea grafting procedures for the underprivileged.
Marking a historic event, Reliance Drishti launched India’s
first registered national Hindi newspaper in braille on 19th
March, 2012 at Mumbai. This newspaper will be widely
circulated through institutional partners to over 20,000
visually impaired persons across the country.

Reliance Drishti seeks to enable children to empathise with
the needs of the visually challenged by raising awareness
through organising painting competitions for children. The
winning art entries are used in various ways to reach
millions of people with the message of eye donation. The
painting contests during FY11-12 received an
overwhelming response of over 12,000 children.

Heritage Conservation

Taking pride in the rich cultural heritage of India, RIL has
sponsored the construction of Dwarka Parisar. It was
completed in a record time of one and half years.
Constructed on a fifty-fifty Public-Private Partnership with
the Government of Gujarat, the Dwarka Parisar was
dedicated to the public in May 2011. A public road was
also constructed at Dwarka and the banks of river Gomati
were cleaned. Kokila Dhiraj Dham at Dwarka continues to
provide reasonable accommodation to pilgrims. RIL also
renovated the village temples in Gadimoga Panchayat.

Disaster Relief

Always reaching out to people affected by natural
calamities, the Company, in the FY 11-12, provided
tarpaulins for cyclone affected people in Puduchery.
Clothes, food materials and A/C sheets were provided to
the fire affected villagers in Allahabad. For a swifter
response, a free of cost Fire Tender service was extended
both in Allahabad and Patalganga.

Promoting Sports and Sportsmen

Promoting sports in India, RIL has instituted the IMG
Reliance Scholarship. This scholarship was awarded to
28 aspiring Indian sportspersons for full time training and

Reliance Industries Limited 55

coaching at one of the best sports training facilities in the
World – the IMG Academies, Florida. These talented
young sportspersons were from varied fields including
Tennis, Basketball and Football. These young sportsmen
underwent rigorous physical and mental training, were
given the best in class sports education and were exposed
to high quality competition. Recipients of these
scholarships brought several laurels to the community.

Safety Initiatives for Community

In a unique safety initiative, RIL established a Truckers’
Safety Training Centre at Hazira. This centre, fully
equipped with air conditioning and audio-video equipment,
provided training to truck drivers. These training
programmes included safety rules, efficient driving
techniques, understanding hazards associated with
various materials and responses in case of emergencies.
More than 100,000 drivers have been trained through this
initiative since its inception in 2005.

Environment Initiatives for Community

Carrying on its environment preservation drive perenially,
RIL undertook large plantation drives at villages in
Vadodara, Patalganga, Reliance Corporate Park (RCP),
Ghansoli gaon and Gavalidev hill, Ghansoli.

A programme of power generation from renewable sources
was also initiated to make the HIV DOTS centre at Mora
Village, Hazira, a “Model Renewable Village Centre”. In a
unique initiative to promote environment friendly culture
amongst employees, Share-a-Ride, a pool transport
initiative was introduced in RCP. An online portal was
created to strengthen this initiative. In addition, eco-
friendly battery operated golf carts and bicycles, both
with zero emission levels were deployed for internal
transportation at RCP.

Reliance Rural Development Trust (RRDT)

During FY11-12, RRDT continued to create rural
infrastructure in tandem with the Gokul Gram Yojana of
the Government of Gujarat. RRDT undertook 382 new
works in 354 beneficiary villages of 79 talukas under 24
districts of Gujarat. Construction of over 250 facilities were
completed including 219 Anganwadi buildings, 41 cement
concrete roads and one check dam with 0.6 mcft water
storage capacity. With this 40th check dam being built
during the FY11-12, the water holding capacity of the
RRDT built check dams rose to 10 mcft, benefiting 1,165

hectares of rural land in Gujarat. Concrete roads were also
constructed in 5 villages and drains were laid for Padana
village.

Catering to the health and sanitation needs of the villages,
Moti Khavdi Medical Centre and a Mobile Medical Van
continued to serve the rural community. For creating a
more permanent solution to the water shortage problems
in the area, water pipelines were laid in Padana village.
Sulabh International, a sanitation agency, was engaged
to keep the public places in the entire Meghpar village
clean on a daily basis.

Catering to the educational needs of the communities, the
Trust constructed a school building for Meghpar village.
Over 1,500 school-kits were also distributed to students
of 69 schools in 42 villages in Jamnagar and Lalpur Taluka
on commencement of the academic year 11-12.

Dhirubhai H. Ambani Memorial House was constructed at
Chorwad, the native place of RIL’s Founder Chairman, Mr.
Dhirubhai Ambani. This memorial drew hundreds of
visitors each day since it opened for public.

‘Dhirubhai Ambani Vanijya Bhavan’, the new premises
of Jamnagar Chamber of Commerce and Industry, was
constructed and inaugurated, in April, 2011.

During FY11-12, liberal support to individuals and
institutions including NGOs in the areas of education,
health, culture, business and sports was extended by
RRDT. Donations were made to tribal schools; and schools
for sanskrit teaching; students were sponsored for higher
studies; events like van mahotsavs, medical conferences,
seminars of environmental importance and discourses on
maritime security and anti-piracy were sponsored; traffic
islands and beautification of airports was carried out and
donations were made on the occasion of festivals.

Acknowledging and supporting talent

RIL has instituted “UAA-Dhirubhai Ambani Lifetime
Achievement Award”, jointly with the UDCT Alumni
Association (UAA) for innovative and outstanding
contribution in the field of chemical sciences and continues
to recognize scientists from both India and around the
world through this award. This year, this award was
conferred on Professor C N R Rao, FRS, Padma Vibhushan.
Prof. Rao is Linus Pauling Professor, Honorary President
of Jawaharlal Nehru Centre for Advanced Scientific
Research, Bangalore and Chairman, Scientific Advisory
Council to the Prime Minister of India.

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Partnering India's new future. Sustainably.

“Real Heroes”, is an initiative of RIL which recognises
and acknowledges ordinary Indians who are making a
difference to people’s lives. In the annual felicitation held
in March, 2012, 24 ‘Real Heroes’ of India were honoured.
The efforts of these 24 Real Heroes, selected from across
the country and working in diverse fields of Women
Empowerment, Environment, Youth, Social Welfare, Health
& Disability, Education & Children and Sports, were
recognised. All of them have significantly contributed to
the betterment of communities. These ordinary citizens
have displayed exemplary service to the nation by placing
the society before them.

Reliance Foundation

Established in 2010, Reliance Foundation is the heart of
the enterprise. It epitomizes the inspiration and the
aspiration of the founder and the present promoters of
the RIL Group. It focuses on five core pillars: Rural
Transformation, Education, Health, Urban Renewal, and
Arts, Culture & Heritage.

For realising the aspiration of seeing rural life in its
development phase in all aspects, the Reliance Foundation
launched Reliance bij (the acronym of Bharat India Jodo)
in October 2010. Sowing the seeds of rural transformation,
Reliance bij focuses on supporting marginalized farmers,
generally plagued by constraints of low farm productivity
and increasing natural resource degradation. Reliance bij
aims to bridge the ever widening gap between the
developmental and prosperity levels of rural and the urban
parts of the country. Its vision is to see a rural community
thriving on farming and ‘to make farming a first choice
profession’, with best practices and modern agricultural
techniques. Reliance bij provides support to small and
marginal farmers through input support, technical
assistance, post-harvest and marketing support. At village
level, bij helps in forming Village Farmers’ Associations
(VFA) where farmers come together to plan, decide and
act on various issues that impact their produce and their
village unit as a whole. Also, the bij team facilitates the
formation of a Producer Company (PC) which provides
commercial and financial interface to the communities. PC
achieves this by way of aggregating their need for quick,
cheaper and reliable access to a variety of goods and
services. These requirements comprise information on
various farming practices, subsidies, training, access to

credit, mechanisation of various farming operations,
collection, storage and sale of farm commodities.

The Reliance Foundation, through Reliance bij, promotes
sustainable agriculture practices. These include diversified
farm practices like bee keeping and animal husbandry,
which also provide additional sources of livelihood to the
farming families. To encourage farmers to adopt sustainable
farming practices, demonstration farms called Dharti farms
have been set up. Further, to demonstrate the process of
homestead vegetable garden, Reliance Nutrition Gardens
are cultivated in villages.

To build a knowledge repository of the vast traditional
practices, Mouda Farm Research activities, near Nagpur,
were initiated.

For promoting education at all levels, Reliance Foundation
launched an initiative to establish a world-class
multidisciplinary university in Maharashtra. Envisioning
technical skills at various levels in the upcoming
generation of India, the Foundation is in the process of
establishing the Reliance Institute of Technology in
Jamnagar and the Reliance Polytechnic in Dwarka, in
partnership with the Government of Gujarat.

Dhirubhai Ambani Foundation

The Dhirubhai Ambani Foundation (DAF) focuses on
promoting education. Its ‘Dhirubhai Ambani
Undergraduate Scholarship Scheme’ has been motivating
students excelling at the +2 level and assisting them to
pursue higher education. The Foundation’s “Dhirubhai
Ambani SSC Merit Reward Scheme” recognises the
standard X Board examination merit holders. Special efforts
are made to reach out to the physically differently abled
and the girl child through such educational schemes. Both
these schemes are implemented in Maharashtra, Goa,
Gujarat, Daman, Diu and Dadra Nagar Haveli on a district-
wise basis for the State Education Boards and on a state-
wise basis for the CBSE Board. For the rest of the country,
these schemes cover only the physically differently abled
category of the State Boards. In FY11-12, DAF conferred
329 rewards and 289 scholarships. Of these, 144 rewards
and 99 scholarships went to the physically differently
abled category. Till date, these schemes have benefited
8,734 students, 1,596 of those are physically differently
abled.

Reliance Industries Limited 57

Report on Corporate Governance

In accordance with Clause 49 of the Listing Agreement
with the BSE 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 Code of

Governance

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. Good governance practices stem from the
culture and mindset of the organisation and at Reliance
we are committed to meet 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, corporate secretarial 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.

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. This gives us the confidence of having put
in the right building blocks for future growth and ensuring
that we achieve our ambitions in prudent and sustainable
manner. Reliance not only adheres to the prescribed
corporate governance practices as per Clause 49 but is
also committed to sound corporate governance principles
and practices and constantly strives 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. At Reliance we consider stakeholders
as partners in our success and we remain committed to
maximising stakeholder value, be it shareholders,
employees, suppliers, customers, investors, communities
or policy makers. This emanates from our strong belief
that sound governance is integral to creating value on an
overall basis. Since our Initial Public Offer (IPO) we have
an enviable track record of growth over 34 years. We have
grown by a Compounded Annual Growth Rate (CAGR) of
Revenues 27%, EBITDA 28% and Net Profit 29%. The
financial markets have endorsed this sterling performance
and the market capitalisation has increased by CAGR of
34% during the same period. 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 3.4 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 of Governance
and these include:

Independent Board with defined role and responsibilities:
A majority of the Board, 7 out of 13, are independent
directors. The Board’s actions and decisions are aligned
with the Company’s best interests. It is committed to the
goal of sustainably increasing the Company’s value. The
Audit Committee, Remuneration Committee and Corporate
Governance and Stakeholders’ Interface Committee
comprise only independent directors. The Company has
defined guidelines and established 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.

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Ethics Policies: Reliance always strives to conduct its
business and develop its relationships in a manner that is
dignified, distinctive and responsible. In this direction,
we have adopted various codes and policies which act as
enablers to carry our duties in an ethical way. Some of
these codes and policies are:

1. Code for Board of Directors and Board Committees.

2. Code of Business Conduct and Ethics for Directors/

Management Personnel.

3. Code of Conduct for Prohibition of Insider Trading.

4. Code of Ethics and Business Policies.

Policy document on Values and Commitments.

5.
6. Manual on Corporate Governance.

7. Health, Safety and Environment (HSE) Policy.

8. Code of Financial Reporting, Disclosure &

Transparency.

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 as well outside internal auditors
that reviews internal controls and operating systems and
procedures. A dedicated Legal Compliance 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, corporate and
securities 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, allows optimal use and protection of
assets, facilitates 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
maintains the highest standards of Corporate Governance;
it is the Company’s constant endeavour to adopt the best
Corporate Governance practices keeping in view the
international codes of Corporate Governance and

practices of well-known global companies. Some of the
best global governance norms put into practice include
the following:

(cid:1)

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

(cid:1) All securities related filings with Stock Exchanges and
SEBI are reviewed every quarter by the Shareholders’/
Investors’ Grievance Committee of Directors of the
Company.

(cid:1)

The Company has an independent Board Committee
for matters related to corporate governance and
stakeholders’ interface and nomination of Board
members.

Internal audit of the Company is conducted by
independent auditors.

The Company also undergoes secretarial audit
conducted by an independent company secretary
who is 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. Reliance embraces responsibility for impact of its
operations and actions on all stakeholders including
society and community at large. The CSR teams at
Reliance’s manufacturing divisions interact with the
neighbouring community on regular basis. Reliance’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. Reliance also
supports and partners with several NGOs in community
development and health initiatives. Besides focusing
primarily on the welfare of economically and socially
deprived sections of society, Reliance 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 its operations.

Reporting on triple bottom-line performance: Reliance
commenced annual reporting on its triple-bottom-line
performance from the Financial Year 2004-05. All its
sustainability reports are externally assured and Global
Reporting Initiative (GRI) application level checked. The

Reliance Industries Limited 59

maiden report received ‘in-accordance’ status from GRI
and all subsequent reports are ‘GRI G3 Checked A+’
application level reports. From Financial Year 2006-07, in
addition to referring GRI G3 Sustainability Reporting
Guidelines, Reliance refers to the American Petroleum
Institute / the International Petroleum Industry
Environmental Conservation Association Sustainability
Reporting Guidelines and the United Nations Global
Compact Principles. Reliance has also aligned its
sustainability activities with the focus areas of the World
Business Council for Sustainable Development. From the
Financial Year 2011-12, Reliance is additionally referring
to GRI G3.1 – Oil & Gas Sector Supplement; and has aligned
with the National Voluntary Guidelines on Social,
Environmental and Economic Responsibilities of Business
framed by the Government of India.

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 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.
Reliance 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
and Board’s Report. Although these standards are
recommendatory in nature, the Company substantially
adheres to the standards voluntarily.

2. Board of Directors
Board composition and category of Directors

The Company’s policy is to maintain optimum
combination of Executive and Non-Executive Directors.
The composition of the Board and category of Directors
is as follows:
Category

Name of Directors

Promoter Director

Executive Directors

Non-Executive Non-
Independent Director

Mukesh D. Ambani
Chairman and
Managing Director

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

Ramniklal H. Ambani

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

All the independent Directors of the Company furnished
a declaration at the time of their appointment as also
annually that they qualify the conditions of their being
independent. All such declarations were/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.

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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:1)

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
University Department of Chemical Technology, University
of Mumbai). He has pursued MBA from Stanford
University, USA.

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

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

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

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

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

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

(cid:1) Awarded the Dean’s Medal by University of
Pennsylvania’s Eduardo Glandt, Dean of the School
of Engineering and Applied Science in 2010 for his
leadership in the application of Engineering and
Technology.

(cid:1) Awarded the Indian Merchant’s Chamber (IMC)

‘Juran Quality Medal 2009’ in 2010.

(cid:1)

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

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

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

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

Reliance Industries Limited 61

(cid:1)

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

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

(cid:1) Had the distinction and honour of being the Co-chair
at the World Economic Forum in Davos, Switzerland
in 2006.

(cid:1)

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

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

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

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

Shri Mukesh D. Ambani is a Member of Millennium
Development Goals (MDG) Advocacy Group (MDG
Advocate) constituted by United Nations (UN) and a
Member of The Foundation Board of World Economic
Forum.

On invitation to Shri Mukesh D. Ambani, Reliance
Industries Limited, became a Council Member of World
Business Council for Sustainable Development (WBCSD)
in 2007. Shri Ambani has been elected as Vice Chairman of
WBCSD Executive Committee in 2008 and re-elected in
2010.

Further, he is a member of the Indo-US CEOs Forum,
International Advisory Board of the National Board of
Kuwait, Advisory Council for the Graduate School of
Business, Stanford University, International Advisory
Board of Brookings, McKinsey Advisory Council, Member
of The Business Council, Asia Business Council and
London School of Economics India Advisory Group.

He is the Chairman, Board of Governors of the Indian
Institute of Management, Bangalore, Chairman of Pandit
Deendayal Petroleum University, Gandhinagar. Shri
Ambani is Co-Chair of India-Russia CEO Council, Co-Chair
of Japan-India Business Leader’s Forum and 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, Infotel
Broadband Services Limited and a Director of Reliance
Foundation, Pratham Education 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 the Chairman of Audit Committees of
Reliance Retail Limited and Infotel Broadband Services
Limited.

He is Promoter of the Company and holds 36,15,846 shares
of the Company in his name as on March 31, 2012.

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

He joined Reliance 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 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
Alumnus 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, 2012.

Shri Hital R. Meswani graduated with Honours in the
Management & Technology programme from the
University of Pennsylvania, U.S.A. where he received a
Bachelor of Science Degree in Chemical Engineering from

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Partnering India's new future. Sustainably.

the School of Engineering and Applied Sciences and a
Bachelor of Science Degree in Economics from the
Wharton Business School.

He joined Reliance Industries Limited in 1990. He is on the
Board of the Company as Whole-time Director designated
as Executive Director since August 4, 1995, with overall
responsibility of the Petroleum Business and all
Manufacturing, Technology 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
and Shareholders’/Investors’ Grievance Committee and
Chairman of the 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 has been awarded an Honorary Fellowship by IChemE
(Institution of Chemical Engineers – the International
Professional body for Chemical, Biochemical and Process
Engineers) in recognition of his contribution to the process
industries.

He is the recipient of The 2011 D. Robert Yarnall Award
from The Engineering Alumni Society of the University of
Pennsylvania.

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, 2012.
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 31 years.
Currently, he spearheads the Upstream and Refining
business, which comprises Exploration and Production
and Refinery supply and trading. Over the years, he has
held various positions in the fibres, petrochemicals and
petroleum business of the Company. He was also the
Project 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 deep water 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 and
Production business.

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

He is a Director of Reliance Commercial Dealers Limited,
Mangal Deep Commercials Private Limited and Nandika
Mercantile Private Limited. 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, 2012.

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 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 travelled
extensively and has been to USA, Russia, the Middle East,

Reliance Industries Limited 63

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
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 of
the Company 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 Francisco, 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, 2012.

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 was appointed as a Chairman of Gujarat Industrial
Development Corporation Ltd. (GIDC) for 2 years from
6th June 1978.

In 1980, he was appointed as a Director of the Gujarat
Industrial Investments Corporation Limited (GIIC) and
continuing his services since last 30 years. He is also
Chairman of Audit Committee in GIIC Ltd.

He is Director of Sintex Industries Ltd since 1994 and is
also member of Remuneration Committee of Sintex
Industries Ltd.

He holds 1,72,632 shares of the Company in his name as
on March 31, 2012.

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 57
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 and Abhijeet Power 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 Share Allotment & Transfer 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, JCB India Limited and
Abhijeet Power Limited. He is also a member of Share
Transfer and Investors’ Grievance Committee and IPO
Committee of Abhijeet Power 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’. Last year was 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, 2012.

Shri Yogendra P Trivedi is practicing as senior advocate
in Supreme Court. He is a member of the Rajya Sabha. He
holds important positions in various fields viz.economics,
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 Central Bank of India and Dena Bank, amongst
many other reputed companies. He was the past President
of the Indian Merchants’ Chamber and presently is a
Member of the Managing Committee. He was on the
Managing Committee of ASSOCHAM and the
International Chamber of Commerce.

He is the Chairman of Sai Service Station Limited and
Trivedi Consultants Private Limited. He is the Director of
Colosseum Sports & Recreation International, The
Supreme Industries Limited, Birla Power Solutions Limited,

6 4

Partnering India's new future. Sustainably.

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

He is the Chairman of Indo African Chamber of Commerce.
He was the President of the Cricket Club of India. He was
the past 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 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. Mr. 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 and the Seksaria
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, 2012.

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 (1983-94); 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.

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, DLF Limited and other private limited companies.
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, 2012.

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.

Reliance Industries Limited 65

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 is a Director on the Board of FACOR Power Limited.

He holds 2,924 shares of the Company in his name as on
March 31, 2012.

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
contribution 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, Intellectual Ventures. He
is a Fellow of the 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 and the former President of the
Society of Polymer Science, India.

He is an Independent Director on the Board of Jubilant
Industries Limited and a member of the Board of Governors
of IIT Delhi. 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 all his alma maters –
IIT Kanpur, Tufts University and University of
Massachusetts. He was awarded the Distinguished
Service Award by IIT Delhi during its Golden Jubilee in
2011. 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 2,300 shares of the Company in his name as on
March 31, 2012.

Prof. Dipak C. Jain is a M.S. in Mathematical Statistics
from Guwahati 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 is the Dean of INSEAD, a leading
business school with three campuses - Fontainebleau
(Paris), France, Singapore and Abu Dhabi. He has more
than 26 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 Guwahati University in India in
1978; Gold Medal for the Best Graduate of the Year from
Darrang College in Assam in India in 1976; Gold Medal
from Jaycees International in 1976; the Youth Merit Award
from Rotary International in 1976; and the Jawaharlal Nehru
Merit Award, the Government of India in 1976.

He is a Director of Hindustan Media Ventures Limited and
HT Global Education. He is also 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 its Audit Committee.

He does not hold any shares of the Company in his name
as on March 31, 2012.

Dr. Raghunath Anant Mashelkar, an eminent scientist, is
a Ph.D. in Chemical Engineering. He is the National
Research Professor and also 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 the only third Indian Engineer to have been elected
as Fellow of Royal Society (FRS), London in the twentieth
century. He is 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 American
Academy of Arts & Science (2011).

6 6

Partnering India's new future. Sustainably.

Thirty 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, KPIT Cummins Infosystems
Limited, Sakal Papers Limited, IKP Knowledge Park, Piramal
Healthcare Limited 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, Hindustan Unilever Limited and Piramal
Healthcare Limited. He is a member of the Remuneration
Committee of Hindustan Unilever Limited and KPIT
Cummins Infosystems Ltd.

He does not hold any shares of the Company in his name
as on March 31, 2012.

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.

During the year under review, the Board has constituted a
Committee comprising four independent Directors, viz.,
Shri Y.P. Trivedi, Dr. D.V. Kapur, Shri M.P. Modi and Prof.
Ashok Misra to oversee all matters pertaining to the Buy-
back of equity shares of the Company, Shri Y.P. Trivedi
being the Chairman of the Committee.

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
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, over view of the business
operations of major subsidary companies, 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:1) General notices of interest of Directors.

(cid:1) Appointment, remuneration and resignation of

Directors.

(cid:1)

Formation/Reconstitution of Board Committees.

Terms of reference of Board Committees.

The minutes of the Board meetings of unlisted
subsidiary companies.

Reliance Industries Limited 67

(cid:1) Any material default in financial obligations to and
by the Company, or substantial non payment for
goods sold by the Company.

(cid:1) 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.

(cid:1)

Significant labour problems and their proposed
solutions. Any significant development in Human
Resources/Industrial Relations
like
implementation of Voluntary Retirement Scheme, etc.

front

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.
Compliance Certificate certifying compliance with all
Laws as applicable to the Company.

Reconciliation of Share Capital Audit Report under
SEBI (Depositories and Participants) Regulations,
1996.
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.

(cid:1) Minutes of meetings of Audit Committee and other

Committees of the Board.

(cid:1) Declaration of independent directors at the time of

appointment/annually.

(cid:1) Appointment or resignation of Chief Financial Officer

and Company Secretary.

(cid:1) Annual operating plans of businesses, capital

budgets and any updates.

(cid:1) Quarterly results for the Company and its operating

divisions or business segments.

(cid:1) Annual Financial results of the Company, Auditors’
Report and the Report of the Board of Directors’.
(cid:1) Quaterly Secretarial Audit reports submitted by the

(cid:1)

Secretarial Auditors.
(cid:1) Dividend declaration.
(cid:1) 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, related party
transactions and arrangements entered by unlisted
subsidiary companies.

(cid:1)

(cid:1) Quarterly details of foreign exchange exposures and
the steps taken by management to limit the risks of
adverse exchange rate movement, if material.

(cid:1)

(cid:1) Appointment of and the fixing of remuneration of the
Auditors as recommended by the Audit Committee.
Internal Audit findings and External Audit Reports
(through the Audit Committee).
Proposals for major investment, mergers and
acquisitions.

(cid:1)

(cid:1) Details of any joint venture, acquisitions of companies

(cid:1)

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

(cid:1) Making of loans and investment of surplus funds.
(cid:1) 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.

(cid:1)

Show cause, demand, prosecution notices and penalty
notices which are materially important.

Fatal or serious accidents, dangerous occurrences,
any material effluent or pollution problems.

6 8

Partnering India's new future. Sustainably.

E. Post meeting follow-up mechanism

4. Number of Board meetings held and the dates on

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.

which held

Six 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 21, 2011

July 25, 2011

October 15, 2011

November 25, 2011

January 20, 2012

6 March 23, 2012

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 2011-12

No. of Other
Directorship(s)1

Board
Meetings

Last
AGM

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

6
6
6
4
3
6
6
6
6
5
6
5
4

Mukesh D. Ambani
Nikhil R. Meswani
Hital R. Meswani
P.M.S. Prasad
Pawan Kumar Kapil
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
1The Directorships held by Directors as mentioned above, do not include Alternate Directorships and Directorships in
foreign companies, companies registered under Section 25 of the Companies Act, 1956 and private limited companies.
2In accordance with Clause 49, Memberships/Chairmanships of only the Audit Committees and Shareholders’/Investors’
Grievance Committees in all public limited companies (excluding Reliance Industries Limited) have been considered.

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

Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes

2
1
2
1
Nil
2
4
8
5
1
1
2
6

Video/tele-conferencing facilities are also used to facilitate directors travelling abroad or present at other locations to
participate in the meetings.

Reliance Industries Limited 69

6. Board Committees:

A. Standing Committees

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

Composition of Board Level Committees

Audit Committee

Shareholders’/ Investors’ Grievance Committee

1. Yogendra P. Trivedi - Independent Director

1. Mansingh L. Bhakta - Independent Director

(Chairman of the Committee)

2. Mahesh P. Modi - Independent Director

2. Yogendra P. Trivedi - Independent Director

3. Dr. Raghunath A. Mashelkar - Independent

3. Nikhil R. Meswani - Executive Director

Director

4. Hital R. Meswani - Executive Director

Remuneration Committee

1. Mansingh L. Bhakta - Independent Director

Corporate Governance and Stakeholders’ Interface
Committee

(Chairman of the Committee)

1. Yogendra P. Trivedi - Independent Director

2. Yogendra P. Trivedi - Independent Director

3. Dr. Dharam Vir Kapur - Independent Director

(Chairman of the Committee)

2. Mahesh P. Modi - Independent Director

3. Dr. Dharam Vir Kapur - Independent Director

Employees’ Stock Compensation Committee

Health, Safety & Environment Committee

1. Yogendra P. Trivedi - Independent Director

1. Hital R. Meswani - Executive Director

(Chairman of the Committee)

2. Mukesh D. Ambani - Chairman and Managing

2. Dr. Dharam Vir Kapur - Independent Director

Director

3. Mahesh P. Modi - Independent Director

Prof. Dipak C. Jain - Independent Director

P.M.S. Prasad - Executive Director

Pawan Kumar Kapil - Executive Director

Finance Committee

1. Mukesh D. Ambani - Chairman and

Managing Director (Chairman of the Committee)

2. Nikhil R. Meswani - Executive Director

3. Hital R. Meswani - Executive Director

Shri K. Sethuraman, Group Company Secretary and Chief Compliance Officer is the Secretary of all Board Committees.

7 0

Partnering India's new future. Sustainably.

Meetings of the Board Level Committees held during the year and attendance of Directors

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Name of the
Committee

Audit Committee
Shareholders’/
Investors’
Grievance
Committee
Remuneration
Committee
Corporate
Governance
and
Stakeholders’
Interface
Committee
Employees’
Stock
Compensation
Committee
Health, Safety
& Environment
Committee
Finance
Committee

NA – Not a member of the Committee
* Appointed w.e.f July 25, 2011. Two meetings held during his tenure.

Terms of Reference and other details

(i) Audit Committee

Composition: All the members of the Audit Committee
possess financial / accounting expertise / exposure. The
composition of the Audit Committee meets with the
requirements of Section 292A of the Companies Act,1956
and Clause 49 of the Listing Agreement.

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 including the
Cost auditors, the performance of internal auditors and
the Company’s risk management policies.

Reliance Industries Limited 71

to the Board to take up steps in this matter.

7 Reviewing with the management, the performance of
Statutory including Cost Auditors and Internal
Auditors, adequacy of internal control systems.
8 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.

9 Discussion with Internal Auditors, any significant

findings and follow up thereon.

10 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.

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

12 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.

13 To review the functioning of the Whistle Blower

Mechanism.

14 Approval of appointment of CFO (i.e., the whole-time
Finance Director or any other person heading the
finance function or discharging that function) after
assessing the qualifications, experience &
background, etc. of the candidate.

15 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.

16 To review the following information:

(cid:1)

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:1)

(cid:1) Management letters/letters of internal control
weaknesses issued by the Statutory Auditors;
Internal audit reports relating to internal control
weaknesses; and
The appointment, removal and terms of
remuneration of Internal Auditors.

(cid:1)

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

2
3
4

Terms of Reference: The terms of reference / powers of
the Audit Committee are as under :
A. Powers of 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.
B. The role of Audit Committee includes
1 Oversight of the Company’s financial reporting
process and the disclosure of its financial information
to ensure that the financial statements are correct,
sufficient and credible.

2 Recommending to the Board, the appointment,
reappointment and, if required, the replacement or
removal of Statutory Auditors including Cost auditors
and fixation of audit fees.

3 Approval of payment to Statutory Auditors including
Cost auditors for any other services rendered by them.
4 Reviewing with the management, the annual financial
statements before submission to the Board for
approval, with particular reference to:
(cid:1) 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.
Changes, if any, in accounting policies and
practices and reasons for the same.

(cid:1)

(cid:1) Major accounting entries involving estimates
based on the exercise of judgment by the
management.
Significant adjustments made in the financial
statements arising out of audit findings.
Compliance with listing and other legal
requirements relating to financial statements.

(cid:1)

(cid:1) Disclosure of related party transactions.
(cid:1) 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 statement of
uses / application of funds raised through an issue
(public issue, rights issue, preferential issue, etc.),
the statement of funds utilized for purposes other than
those stated in the offer document/prospectus/notice
and the report submitted by the monitoring agency
monitoring the utilisation of proceeds of a public or
rights issue, and making appropriate recommendations

7 2

Partnering India's new future. Sustainably.

General
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 due date for filing the Cost Audit Reports for the
financial year ended March 31, 2011 was September
30, 2011 and the Cost Audit Reports were filed by the
Cost Auditors on September 26, 2011 and September
27, 2011. The due date for filing the Cost Audit
Reports for the financial year ended March 31, 2012 is
September 30, 2012.
The Chairman of the Audit Committee was present at
the last Annual General Meeting.

(ii) Corporate Governance and Stakeholders’ Interface

(CGSI) Committee

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.
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.
(iii) Employees Stock Compensation Committee
Terms of Reference: The Committee was formed inter alia
to formulate detailed terms and conditions of the
Employees Stock Option Scheme including:
1

The quantum of options to be granted under
Employees Stock Option Scheme per employee and
in aggregate.
The conditions under which option vested in
employees may lapse in case of termination of
employment for misconduct.
The exercise period within which the employee should
exercise the option and that the option would lapse
on failure to exercise the option within the exercise
period.
The specified time period within which the employee
shall exercise the vested options in the event of
termination or resignation of an employee.
The right of an employee to exercise all the options
vested in him at one time or at various points of time
within the exercise period.
The procedure for making a fair and reasonable
adjustment to the number of options and to the
exercise price in case of corporate actions such as
rights issues, bonus issues, merger, sale of division
and others.
The grant, vest and exercise of option in case of
employees who are on long leave.
The procedure for cashless exercise of options, if any.

8
(iv) Finance Committee
Terms of Reference: The Terms of Reference of the
Finance Committee, inter-alia, include the following :
1 Review the Company’s financial policies, risk
assessment and minimisation procedures, strategies
and capital structure, working capital and cash flow
management and make such reports and
recommendations to the Board with respect thereto
as it may deem advisable.

2 Review banking arrangements and cash management.
Exercise all powers to borrow moneys (otherwise than
3
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/

Reliance Industries Limited 73

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.

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

(vi) Remuneration Committee

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.
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 2011-12:

Name of the Director

Salary

Perquisites
and
allowances

Retiral Commission
benefits

payable

Performance
Linked
Incentive

Mukesh D. Ambani
Nikhil R. Meswani
Hital R. Meswani
P.M.S. Prasad
Pawan Kumar Kapil

4.16
1.04
1.04
0.86
0.50

0.60
1.45
1.45
1.37
0.75

0.78
0.18
0.18
0.15
0.09

9.46
8.32
8.32
-
-

-
-
-
2.62
0.65

` in crore
Stock
Options
granted

Nil
Nil
Nil
Nil
Nil

Total

15.00
10.99
10.99
5.00
1.99

The Chairman and Managing Director’s compensation has
been set at ` 15 crore as against ` 38.82 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 performance criteria for the Executive Directors who
are entitled for Performance Linked Incentive (PLI) is
determined by the Remuneration Committee.

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

7 4

Partnering India's new future. Sustainably.

rate of ` 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 ` 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 2011-12 are as detailed below:

Name of the Non-Executive Director
Ramniklal H. Ambani
Mansingh L. Bhakta
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Mahesh P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar
Total

During the year, the Company has paid ` 0.57crore 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
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 annual reports, 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.
Compliance Officer
Shri K. Sethuraman, Group Company Secretary and Chief
Compliance Officer, is the Compliance Officer for
complying with the requirements of the Securities Laws
and the Listing Agreements with the Stock Exchanges.
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:

Sitting Fee
1.20
2.20
4.20
2.80
2.80
1.20
1.20
1.60
17.20

Commission
21.00
21.00
21.00
21.00
21.00
21.00
21.00
21.00
168.00

` in lakhs

Total
22.20
23.20
25.20
23.80
23.80
22.20
22.20
22.60
185.20

Type of Complaints

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

Total

Number of
Complaints
201
2023

202
156

2582

There were no outstanding complaints as on March 31,
2012. 108 requests for transfers and 256 requests for
dematerialisation were pending for approval as on March
31, 2012, which were approved and dealt with by April 2,
2012. Given below is a chart showing reduction in
investor’s complaints.

Number of Complaints Received

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

Reliance Industries Limited 75

of their stakeholders. 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. 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.

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
(i) Annual General Meetings
The Annual General Meetings of the Company during the
preceding three years were held at Birla Matushri
Sabhagar, 19, New Marine Lines, Mumbai - 400 020.
The date and time of the Annual General Meetings held
during the preceding three years and the special
resolution(s) passed thereat are as follows:
Year

Time

Date

Special
Resolution
Passed
Nil
Nil
Nil

2010-11
2009-10
2008-09

June 03, 2011
June 18, 2010
November 17,
2009

11.00 a.m.
11.00 a.m.
11.00 a.m.

(ii) Special Resolution passed through Postal Ballot
No special resolution was passed through Postal Ballot
during the Financial Year 2011-12. 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

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 Directors 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 2011-12.

Mukesh D. Ambani
Chairman and Managing Director
8. Subsidiary Monitoring Framework
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

7 6

Partnering India's new future. Sustainably.

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 Note No. 30 of Notes on Accounts, 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 Show Cause Notices in connection
with (i) sale of shares of erstwhile Reliance Petroleum
Limited and (ii) the allotment of equity shares of the
Company to certain companies against detachable
warrants attached to privately placed debentures
issued by the Company. The Company has submitted
its reply to the same.
11. Means of Communication
(i) 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.

(ii) News Releases, Presentations, etc.: Official news
releases and Official Media Releases are sent to the
Stock Exchanges.

(iii) Presentations to Institutional Investors / Analysts:
Detailed Presentations are made to Institutional
Investors and Financial Analysts, on the unaudited
quarterly financial results as well as the annual audited
financial results of the Company. These presentations
are also uploaded on the Company’s website
www.ril.com

(iv) 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.

(v) 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.

(vi) 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
and sent to Stock Exchange.

(vii) Reminder to Investors: Reminders for unclaimed
shares, unpaid dividend/unpaid interest or redemption
amount on debentures are sent to the shareholders/
debenture holders as per records every year.

(viii) 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.

(ix) NSE Electronic Application Processing System
(NEAPS): The NEAPS is a web based application
designed by NSE for corporates. The Shareholding
Pattern and Corporate Governance Report are also
filed electronically on NEAPS.

(x) SEBI Complaints Redress System (SCORES) : The
investor complaints are processed in a centralized web
based complaints redress system. The salient features
of this system are: Centralised database of all
complaints, online upload of Action Taken Reports
(ATRs) by the concerned companies and online
viewing by investors of actions taken on the complaint
and its current status.

(xi) Designated Exclusive email-id: The Company has
designated the following email-ids exclusively for
investor servicing.
(a) For

on Annual Report

queries

Investor_relations@ril.com

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

rilinvestor@karvy.com

Reliance Industries Limited 77

(xii) Shareholders’ Feedback Survey: The Company had
sent feedback forms seeking shareholders’ views on
various matters relating to investor services and the
Annual Report 2010-11. The feedback received from
the shareholders was placed before the Shareholders’/
Investors’ Grievance Committee.

12. General Shareholder Information
(i) Company Registration Details

The Company is registered in the State of
Maharashtra, India. The Corporate Identity
Number (CIN) allotted to the Company by the
is
Ministry of Corporate Affairs (MCA)
L17110MH1973PLC019786.

(ii) Annual General Meeting

(Day, Date, Time and Venue):
Thursday, June 07, 2012 at 11.00 a.m.
Birla Matushri Sabhagar,
19, New Marine Lines, Mumbai 400020

(iii) Financial Year: April 1, 2012 to March 31, 2013
(iv) Financial Calendar (tentative)

Results for the quarter ending:
June 30, 2012 - Fourth week of July, 2012

September 30, 2012 - Third week of October, 2012
December 31, 2012 - Third week of January, 2013
March 31, 2013 - Third week of April, 2013
Annual General Meeting - June, 2013

(v) Date of Book Closure

Saturday, June 02, 2012 to Thursday, June 07, 2012
(both days inclusive) for payment of dividend.

(vi) Dividend Payment Date

Credit/dispatch of dividend warrants between June 8,
2012 and June 14, 2012.
(vii) Listing on Stock Exchanges

A) Equity Shares

(i)

BSE Limited (BSE)
Phiroze Jeejeebhoy Towers, Dalal Street,
Mumbai 400 001
Scrip Code 500325

(ii) National Stock Exchange of India Limited

(NSE)
‘‘Exchange Plaza”, Bandra-Kurla Complex,
Bandra (E), Mumbai 400 051
Trading Symbol - RELIANCE EQ
ISIN : INE002A01018

B) Global Depository Receipts (GDRs)

(i)

Listing
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

(ii) Overseas Depository

The Bank of New York Mellon Corporation
101 Barclay Street, New York, NY 10286
USA.

(iii) Domestic Custodian

ICICI Bank Limited, Empire Complex, E7/F7,
1st Floor, 414, Senapati Bapat Marg,
Lower Parel, Mumbai 400 013.

C) Debt Securities

(i) The Wholesale Debt Market (WDM)

Segment of BSE & NSE.

(ii) Debenture Trustees

(a) Axis Bank Limited
Axis House, C-2,
Wadia International Centre,
Pandurang Budhkar Marg,
Worli, Mumbai 400 025.

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

2nd Floor, Axis House,
Bombay Dyeing Mills Compound,
Pandurang Budhkar Marg,
Worli, Mumbai 400 025.

D) Payment of Listing Fees: Annual listing fee for
the year 2012-13 has been paid by the Company
to BSE and NSE. Annual maintenance and listing
agency fee for the calendar year 2012 has been
paid by the Company to the Luxembourg Stock
Exchange.

E) Payment of Depository Fees : Annual Custody/
Issuer fee for the year 2012-13 has been paid by
the Company to NSDL and CDSL.

7 8

Partnering India's new future. Sustainably.

(viii)

Stock Market Price Data

Month

National Stock Exchange (NSE)
(In ` per share)

Bombay Stock Exchange (BSE)
(In ` per share)

April 2011

May 2011

June 2011

July 2011

August 2011

September 2011

October 2011

November 2011

December 2011

January 2012

February 2012

March 2012

Month’s High
Price

1065.90

986.80

967.00

907.00

838.90

859.00

904.00

905.00

844.60

827.90

864.70

830.00

Month’s Low
Price

970.00

898.35

828.10

823.15

712.00

747.55

761.75

751.00

689.00

687.15

765.35

718.00

Month’s High
Price

1065.55

987.00

967.90

906.00

845.00

859.00

899.90

902.00

819.00

825.00

864.45

829.45

Month’s Low
Price

971.65

899.25

829.00

824.00

713.55

748.50

761.65

751.15

690.00

687.55

765.75

719.40

(ix) Share Price Performance in comparison to broad based indices – BSE Sensex and NSE Nifty as on March 31, 2012

BSE (% Change)

NSE (% Change)

FY 2011-12

2 years

3 years

5 years

RIL

-28.59%

-30.37%

-1.75%

9.37%

S e n s e x

-10.50%

-0.70%

79.27%

33.14%

RIL

-28.71%

-30.38%

-1.90%

9.16%

Nifty

-9.23%

0.88%

75.29%

38.57%

(x) 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

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

(xi) Share Transfer System

Share transfers are processed and share certificates

duly endorsed are 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/
Shareholders’/Investors’ Grievance Committee. 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 and files a copy of the
said certificate with the Stock Exchanges.

(xii) A) Distribution of Shareholding as on March 31, 2012
Category Category of shareholder
code
(A)
(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 (A) + (B) + (C)

(B)
(1)
(2)

(C)

(1)
(2)

Reliance Industries Limited 79

Number of
shareholders

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

of shares

62
0
62

146 39 23 383
0
146 39 23 383

2 125
34 03 919
34 06 044

92 45 55 435
76 99 61 726
169 45 17 161

0
1
34 06 107

0
11 26 18 796
327 10 59 340

44.75
0.00
44.75

28.26
23.54
51.80

0.00
3.44
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.

B) Shareholding Pattern by Size as on March 31, 2012

Sl. 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

32 68 307
81 813
34 661
9 044
3 773
2 141
3 374
1 206
1 788
34 06 107

C) Build up of Equity Share Capital

Sl.
No.
1
2

3
4
5
6

Particulars

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

% of Total Shares

21 94 16 480
5 74 41 833
4 81 07 740
2 20 21 552
1 31 01 763
96 46 413
2 32 30 285
1 66 80 336
286 14 12 938
327 10 59 340

Allotment
Date
October 19, 1975
May 9, 1977

September 28, 1979
December 31,1979
September 19, 1980
December 31, 1980

6.71
1.76
1.47
0.67
0.40
0.29
0.71
0.51
87.48
100.00

No. of
Shares
1 100
59 50 000

9 40 000
6 47 832
45 23 359
8 40 575

8 0

Partnering India's new future. Sustainably.

Particulars

Sl.
No.

7
8
9
10
11
12
13

14
15
16
17

18
19

20
21

23
24
25

26
27
28
29
30

31
32

34
35
36
37

Consolidation of Fractional Coupon Shares
Conversion of Loan
Conversion of Loan
Rights Issue II
Debenture Series II Conversion
Debenture Series I Conversion Phase II
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company)
Rights Issue II NRI
Debenture Series III Conversion
Rights Issue II
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) II
Bonus Issue- II
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) III
Debenture Series IV Conversion
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) IV
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) V
Debenture Series I Conversion
Debenture Series II Conversion
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) VI
Consolidation of Fractional Coupon Shares
Debenture Series E Conversion
Debenture Series III Conversion
Debenture Series IV Conversion
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) VII
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
Debenture Series G Conversion
Right Issue III
Debenture Series G Conversion
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) X

Allotment
Date

May 15,1981
June 23, 1981
September 22, 1981
October 6, 1981
December 31, 1981
December 31, 1981
April 12, 1982

June 15, 1982
August 31, 1982
September 9, 1982
December 29, 1982

No. of
Shares

24 673
2 43 200
1 40 800
23 80 518
8 42 529
27 168
81 059

774
19 20 000
41
1 942

September 30, 1983
September 30, 1983

1 11 39 564
371

September 30, 1983
April 5, 1984

64 00 000
617

June 20, 1984

October 1, 1984
December 31, 1984
January 31, 1985

April 30, 1985
April 30, 1985
July 5,1985
December 17, 1985
December 31, 1985

December 31, 1985
November 15, 1986

April 1, 1987

August 1, 1987
February 4, 1988
February 4, 1988
June 2, 1988

97 66 783
2 16 571
91

45 005
53 33 333
52 835
42 871
106

610
40 284

169

6 60 30 100
3 15 71 695
29 35 380
25

Particulars

Sl.
No.

42
43

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
Euro Issue GDR-I
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company)
Shareholders of Reliance Petrochemicals Limited
(Merged with the Company)
Loan Conversion
Debenture Series H Conversion

Euro Issue GDR II
Loan Conversion

45
46
47 Warrant Conversion (Debenture Series F)
48
49
50 Warrant Conversion (Debenture Series J)
51
52
53

Private Placement of Shares
Conversion of Reliance Petrochemicals Limited Debentures
Shareholders of Reliance Polypropylene Limited and
Reliance Polyethylene Limited (Merged with the Company)

54 Warrants Conversion
55
56
57
58
59
60
61
62
63
64
65

Conversion of 3.5% ECB Due 1999 I
Conversion of 3.5% ECB Due 1999 II
Conversion of 3.5% ECB Due 1999 III
Conversion of 3.5% ECB Due 1999 IV
Conversion of 3.5% ECB Due 1999 V
Conversion of 3.5% ECB Due 1999 VI
Bonus Issue III
Conversion of 3.5% ECB Due 1999 VII
Conversion of 3.5% ECB Due 1999 VIII
Conversion of Warrants
Shareholders of Reliance Petroleum Limited
(Merged with the Company)
Shareholders of Indian Petrochemicals Corporation Limited
(Merged with the Company)
Exercise of Warrants
ESOS - Allotment

67
68

Reliance Industries Limited 81

Allotment
Date

No. of
Shares

October 31, 1988

November 29, 1990

May 22, 1991

October 10, 1991

June 3, 1992

322

1 84 00 000
4 060

December 4, 1992

7 49 42 763

July 7, 1993
August 26, 1993
August 26, 1993
February 23, 1994
March 1, 1994
August 3, 1994
October 21, 1994
December 22, 1994
March 16, 1995

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

3 16 667
3 64 60 000
1 03 16 092
2 55 32 000
18 38 950
87 40 000
2 45 45 450
75 472
9 95 75 915

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

October 13, 2007

6 01 40 560

October 3, 2008
Various dates
in 2008-09

12 00 00 000
1 49 632

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Sl.
No.

70
71

Particulars

Shareholders of Reliance Petroleum Limited
(Merged with the Company)
Bonus Issue IV
ESOS - Allotment

ESOS – Allotment

ESOS - Allotment

Less: Shares Bought Back and extinguished on January 24, 2005
Less: Shares Bought Back and extinguished from
February 08, 2012 to March 28, 2012

Total Equity as on March 31, 2012

Allotment
Date

No. of
Shares

September 30, 2009

6 92 52 623

November 28, 2009
Various dates
in 2009-10
Various dates
in 2010-11
Various dates
in 2011-12

1 62 67 93 078
5 30 426

29 99 648

13 48 763

-28 69 495

-36,63,431

327 10 59 340

(xiii) 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*

2001-02

2002-03

2003-04
2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

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)

June 03, 2011

4.75

5.00

5.25
7.50

10.00

11.00

13.00

7.00

8.00

* Share of paid-up value of ` 10 per share.
Note: Dividend of ` 8.50 per share, recommended by the
Directors on April 20, 2012, is subject to declaration by
the shareholders at the ensuing Annual General Meeting.

Shares issued on Demerger

Consequent upon the demerger of the Coal based, Gas
based, Financial services and Telecommunications
undertakings/businesses of the Company in December,
2005, the shareholders of the Company were allotted equity
shares of the four companies, namely, Reliance Energy
Ventures Limited (REVL), Reliance Natural Resources
Limited (RNRL), Reliance Capital Ventures Limited (RCVL)
and Reliance Communication Ventures Limited (RCoVL)
in the ratio of one equity share of each of the companies
for every equity share held by the shareholders except
specified shareholders, in Reliance Industries Limited, as
on the record date fixed for the purpose.

Accordingly, 122,31,30,422 equity shares each of REVL,
RNRL, RCVL and RCoVL were allotted on January 27, 2006.

(xiv) Dematerialisation of Shares
Sl. No. Mode of Holding

1
2
3

NSDL
CDSL
Physical

TOTAL

% age

94.98
2.51
2.51

100.00

97.49% of Company’s paid-up Equity Share Capital has
been dematerialised upto March 31, 2012 (97.14% up to
March 31, 2011). Trading in Equity Shares of the Company
is permitted only in dematerialised form.

(xv) Liquidity

The Company’s Equity Shares are among the most liquid

Reliance Industries Limited 83

RIL GDR Price Movement over last 1 year

DR Close Price

Source : Bank of New York Mellon website

(b) Employee Stock Options: 68,817 Options have been
granted during the financial year 2011-12. Each Option,
upon exercise of the same, would give rise to one equity
share of `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.

Members may refer to the disclosures set out under
Annexure I to the Directors’ Report with regard to
particulars of Employees Stock Option.

(xvii) Plant Locations

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

Barabanki
Dewa Road, P.O. Somaiya Nagar
Barabanki - 225 123,
Uttar Pradesh, India.

Dahej
P. O. Dahej,
Taluka: Vagra, Dist: Bharuch - 392 130,
Gujarat, India

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 2011-12 is given below:

BSE

NSE

Total

Shares (nos.)

7 19 755

43 06 074 50 25 829

Value (in ` crore)

59.21

356.67

415.88

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

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

(a) GDRs: Outstanding GDRs as on March 31, 2012
represent 11,26,18,796 equity shares constituting 3.44%
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 at any time and converted into
the underlying equity shares in the Company. The shares
so released in favor of the investors upon surrender of
GDRs can either be held by the investors concerned in
their name or sold off in the Indian secondary markets for
cash. To the extent of the shares so sold in Indian markets,
GDRs can be reissued under the available head room.

RIL GDR Program - Important Information

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.

8 4

Partnering India's new future. Sustainably.

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.
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, MIDC Industrial Area, P.O. Rasayani,
Patalganga – 410 220
Dist. Raigad
Maharashtra, India.
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, CY-PR-DWN-2001/3, KK-DWN-2001/1, KK-
DWN-2001/2, CYDWN-2001/2, 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

(xviii) Address for Correspondence

(a) 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.

(b) 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

(xix) Transfer of unpaid/unclaimed amounts to Investor

Education and Protection Fund

During the year under review, the Company has credited
` 4.45 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, 2012 is ` 92.74 crore.

(xx) Equity Shares in the Suspense Account

In terms of 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 in demat form pursuant to the
public issue of erstwhile Reliance Petroleum Limited
(amalgamated with the Company):

Reliance Industries Limited 85

Number of Number of
equity
shares
1348

share
holders
99

1322

Aggregate Number of
shareholders and the
outstanding shares in
the suspense account
lying as on April 1, 2011
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, 2012

In terms of Clause 5A(II) of the Listing Agreement,
the Company has dematerialised and transferred
64,13,975 equity shares of the Company issued in
physical form to 1,64,437 shareholders and remaining
unclaimed, to the ‘Reliance Industries Limited -
Unclaimed Suspense Account’. No shares were
transferred from the suspense account to the
shareholders’ accounts, during the year.

The voting rights on the shares outstanding in the
suspense account as on March 31, 2012 shall remain frozen
till the rightful owner of such shares claims the shares.
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 were sent
to members at their registered addresses.
Audit Qualification
The Company is in the regime of unqualified financial
statements.
Training of Board Members
The Board members are 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 regularly 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.

8 6

Partnering India's new future. Sustainably.

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, 2012 according to the
provisions of-

(cid:1)

The Companies Act, 1956 and the Rules made under
that Act;

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

The Depositories Act, 1996 and the Regulations and
Bye-laws framed under that Act;

The Foreign Exchange Management Act, 1999 and
the Rules and Regulations made under that Act to the
extent applicable to Overseas Direct Investment (ODI),
Foreign Direct Investment (FDI) and External
Commercial Borrowings (ECB);

The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India Act,
1992 (‘SEBI Act’)

(cid:1)

The Securities and Exchange Board of India
(Substantial Acquisition of Shares and
Takeovers) Regulations, 2011;

The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations,
1992;

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

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

The Securities and Exchange Board of India (Buy
Back of Securities) Regulations, 1998;

(cid:1)

The Equity Listing Agreements with BSE 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 BSE Limited.

1. Based on my examination and verification of the
registers, records and documents produced to me and
according to the information and explanations given
to me by the Company, I report that the Company has,

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

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

(l)

(m)

(n)

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

closure of the Register of Members / Debenture
holders;

forms, returns, documents and resolutions
required to be filed with the Registrar of
Companies and the Central Government;

service of documents by the Company on its
Members, Debenture holders, Debenture
Trustees, Auditors and the Registrar of
Companies;

notice of Board meetings and Committee
meetings of Directors;

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

the 37th Annual General Meeting held on
June 3, 2011;

minutes of proceedings of General Meetings
and of the Board and its Committee meetings;

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

constitution of the Board of Directors /
Committee(s) of Directors, appointment,
retirement and re-appointment of Directors
including the Managing Director and Whole-
time Directors;

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

appointment and remuneration of Auditors and
Cost Auditors;

transfers and transmissions of the Company’s
shares and debentures, and issue and dispatch
of duplicate certificates of shares;

payment of interest on debentures and
redemption of debentures;

(o)

declaration and payment of dividends;

(p)

(q)

(r)

(s)

(t)

(u)

(v)

(w)

(x)

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

borrowings and registration, modification and
satisfaction of charges wherever applicable;

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

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

form of balance sheet as prescribed under
Part I, form of statement of profit and loss as
prescribed under Part II and General
Instructions for preparation of the same as
prescribed in Schedule VI to the Act;

Buy-back of equity shares of the Company;

Directors’ report;

contracts, common seal, registered office and
publication of name of the Company; and

generally, all other applicable provisions of the
Act and the Rules made under the 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 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.

Reliance Industries Limited 87

I further report that the Company has complied with
the provisions of the Depositories Act, 1996 and the
Bye-laws framed thereunder by the Depositories with
regard to dematerialisation / rematerialisation of
securities and reconciliation of records of
dematerialised securities with all securities issued by
the Company.

I further report that:

(a)

(b)

(c)

(d)

(e)

(f)

the Company has complied with the
requirements under the Equity Listing
Agreements entered into with the BSE 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 BSE Limited;

the Company has complied with the provisions
of the Securities and Exchange Board of India
(Substantial Acquisition of Shares and
Takeovers) Regulations, 1997/2011 including
the provisions with regard to disclosures and
maintenance of records required under the said
Regulations;

the Company has complied with the provisions
of the Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations,
1992 including the provisions with regard to
disclosures and maintenance of records
required under the Regulations;

the Company has complied with the provisions
of the Securities and Exchange Board of India
(Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines,
1999 with regard to implementation of
Employee Stock Option Scheme, grant of
Options and other aspects;

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

The Company has complied with the
provisions of Securities and Exchange Board
of India (Buy Back of Securities) Regulations,
1998.

Dr K R Chandratre
Practising Company Secretary
Certificate of Practice No. 5144
April 20, 2012

8 8

Partnering India's new future. Sustainably.

Directors' Report

Dear Shareholders,

Your Directors are pleased to present the 38th Annual Report and the audited accounts for the financial year ended
March 31, 2012.

Financial Results

The financial performance of the Company, for the year ended March 31, 2012 is summarised below:

Profit before Depreciation and Amortisation
Expenses, Finance Costs and Tax Expenses
Less: Finance Costs

Depreciation and Amortisation
Expenses
Less: Transfer from Revaluation

Reserve

13,734

2,340

Profit before Tax
Less: Current Tax
Deferred Tax
Profit for the year
Add: Balance in Profit & Loss Account

Less: Appropriation:
Transferred to General Reserve
Transferred to Captial Redemption
Reserve on buy back of Equity Shares
Proposed Dividend on Equity Shares
Tax on Dividend

Closing Balance

2011-2012

2010-2011

` crore

$ Mn*

` crore

$ Mn*

39,811
2,667

7,825
524

41,178
2,328

9,234
522

16,241

2,633

11,394
25,750
5,150
560
20,040
6,514
26,554

2,240
5,061
1,012
110
3,939
1,453
5,392

13,608
25,242
4,320
636
20,286
5,000
25,286

3,051
5,661
969
143
4,549
1,114
5,663

16,000

3,145

16,000

3,588

4
2,531
410

7,609

1
497
81

1,668

-
2,385
387

6,514

-
535
87

1,453

* 1 $ = ` 50.875 Exchange Rate as on March 31, 2012 (1 $ = ` 44.595 as on March 31, 2011)

Results of Operations
FY2011-12 was a challenging year. The global economy,
barely a year after recession, witnessed lower economic
growth, resulting primarily from the Euro Zone debt crisis
and high oil prices, which were fuelled by uncertainties of
supply. Rising unrest in Middle East and North Africa
resulted in unprecedented levels of crude oil volatility.
The European economies stagnated and the US witnessed
a downgrade in its credit rating, while the growth engines
of the global economy, China and India were forced to
tighten liquidity to tame rising inflation. In addition, civil
unrest in Libya and the tsunami in Japan posed further
challenges. Despite these constraints and the challenging
environment, the Company performed reasonably well and
the highlights of the performance are as under:

(cid:1)

Revenue from operations increased by 31.4% to
` 339,792 crore ($66.8 billion)
Exports increased by 41.8% to ` 208,042 crore
($ 40.9 billion)
PBDIT decreased by 3.3% to ` 39,811 crore
($ 7.8 billion)
Profit Before Tax increased by 2.0% to ` 25,750 crore
($ 5.1 billion)
Cash Profit decreased by 7.3% to ` 31,994 crore
($ 6.3 billion)

(cid:1) Net Profit decreased by 1.2% to ` 20,040 crore

($3.9 billion)

(cid:1) Gross Refining Margin at $ 8.6 / bbl for the year ended

March 31, 2012

Reliance Industries Limited 89

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 ` 28,197 crore ($ 5.5 billion) was paid in the
form of various taxes and duties.
Buy Back of Equity Shares
The Board of Directors of the Company at its meeting
held on January 20, 2012 unanimously approved the Buy-
back of up to twelve crore fully paid-up equity shares of
` 10 each (hereinafter referred to as "Buy-back"), at a price
not exceeding ` 870 per equity share, payable in cash, up
to an aggregate amount not exceeding ` 10,440 crore,
representing approximately 7.22% of the Company’s total
paid-up Equity Capital and Free Reserves as on March 31,
2011. The Buy-back is being made out of the free reserves
and / or the securities premium account of the Company,
from the open market through Stock Exchange(s) in India,
as per the provisions contained in the Securities and
Exchange Board of India (Buy Back of Securities)
Regulations, 1998. The Buy-back Offer is open up to
January 19, 2013 or such earlier date as may be determined
by the Company after necessary compliances.
Pursuant to the aforesaid Buy-back Offer, the Company
has bought back and extinguished 36,63,431 equity shares
of ` 10 each of an aggregate face value of ` 3,66,34,310 as
of March 31, 2012. Consequent to the Buy-back, the paid-
up equity share capital of the Company as on March 31,
2012 has been reduced to ` 3271,05,93,400. The Buy Back
Committee constituted by the Board oversees all matters
pertaining to the Buy-back of equity shares of the
Company.
Dividend
Your Directors have recommended a dividend of ` 8.50
per Equity Share (last year ` 8 per Equity Share) for the
financial year ended March 31, 2012, amounting to
` 2,941 crore (inclusive of tax of ` 410 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 June 1,
2012; 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
as on that date.
The dividend payout for the year under review has been
formulated in accordance with shareholders’ aspirations
and the Company’s policy to pay sustainable dividend
linked to long term growth objectives of the Company to
be met by internal cash accruals.

Credit Rating
The Company continues to have the highest domestic
credit ratings of AAA from CRISIL (S&P subsidiary) and
Fitch. Moody’s and S&P have reaffirmed investment grade
ratings for international debt of the Company, as Baa2
positive outlook (local currency issuer rating) and BBB
positive outlook respectively. The Company’s international
rating from Moody’s and 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, 2012 (cumulative position
before opening the Buy back offer) are provided in the
Annexure I to this Report.
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.
Some of the Major events of the year include the following:
RIL – BP Partnership
Reliance Industries Limited (RIL) and BP announced the
incorporation of India Gas Solutions Private Limited, a
50:50 joint venture (JV) company, which will focus on global
sourcing and marketing of natural gas in India. This joint
venture company is a significant step in cementing the
relationship between RIL and BP, and it establishes the
commitment of both the parties to the Indian market. The

9 0

Partnering India's new future. Sustainably.

demand for gas has been growing at an exponential rate
and both RIL and BP anticipate natural gas to emerge as
the preferred choice of fuel, given its properties as a
cleaner and more sustainable fuel source.

Shale Gas

FY 2011-12 represented a significant year of growth for
the shale gas business, with significant investments in
drilling, completions and facility installations. As a result
of these efforts, gross production from all three JV reported
an exit rate of 233 MMCFPD of gas and 34.7 MBPD of
liquids in December’11 (a 7 fold increase on year-on-year
basis).
RIL-SIBUR Joint Venture
RIL and SIBUR formed a joint venture called Reliance Sibur
Elastomers Private Limited. The JV will be the first
manufacturer of butyl rubber in India and with its targeted
production of 100,000 tonnes of butyl rubber per annum,
it will be the fourth largest producer globally. The JV will
cater to the demand for synthetic rubber from the Indian
automotive industry, which currently exceeds 75,000
tonnes per year and is being met through imports.
Investment in the JV is in line with RIL’s vision of emerging
as a significant player in the global synthetic rubber market.
RIL’s share in the JV will total 74.9% while SIBUR will
account for the rest. The JV will invest $450 million in
setting up its facility, which is expected to be commissioned
in mid-2014.
Reliance Retail Limited
Since inception, Reliance Retail has relentlessly worked
towards building a services platform for supporting retail
development and value creation. It has made significant
investments to build back-end as well as front-end retail
infrastructure and some of the key areas where the
Company has built capabilities include, warehousing and
logistics infrastructure, front-end infrastructure
development, IT infrastructure and food and supply chain.

During FY 2011-12, Reliance Retail stressed on its back-
end operations and store expansion capability by
successfully adding more than 200 stores across value
and specialty formats. Reliance Retail operates across its
two formats – value format and speciality format. Reliance
Retail’s value format comprises Reliance Fresh, Reliance
Super, Reliance Mart, Delight and Autozone, consisting
of over 700 stores and contributed to dominant share of
retail space and turnover. Speciality value format comprises
Reliance Digital, Reliance Trends, Reliance Footprint and
Reliance Timeout. Reliance Retail operates various
partnerships in the lifestyle category and comprises
Reliance Brands, Marks and Spencer, Vision Express and
Office Depot.
Infotel Broadband
RIL has acquired 95% stake in the equity of Infotel
Broadband Services Limited (Infotel) with the intention of
creating a nation-wide network of next-generation wireless
broadband services. Infotel was the only successful bidder
in all of the 22 circles in the Broadband Wireless Access
(“BWA”) spectrum auction conducted by the Department
of Telecommunications, Government of India. Reliance can
now offer fourth generation wireless infocom services
across the nation through the 20 Mhz, contiguous,
pan-India spectrum secured through this acqusition.
Reliance Haryana SEZ Limited
The development activity of Model Economic Township
(MET) in the district of Jhajjar Haryana has begun with
some of the leading Japanese multinationals undertaking
the development of their industrial units. The State
Government has recommended the project to be declared
as a node of the Delhi Mumbai Industrial Corridor which
is under consideration by appropriate authorities. The MET
has been envisioned to be developed as an industrial
infrastructure to support economic growth through a Joint
Venture between Reliance Ventures Limited (a Wholly
Owned Subsidiary of the Company) and Infrastructure
Leasing & Financial Services Limited (IL&FS) in a public
private partnership framework with the Government of
Haryana through HSIIDC Limited (a Government of
Haryana company).
Acquisition of Stake in TV-18
During the year, companies effectively wholly owned by
RIL, entered into binding agreement with TV18 Broadcast
Limited (TV18) for divesting the investments in various
ETV channels being operated and managed by Eenadu
Group. Completion of this divestment is subject to receipt
of regulatory approvals and completion of the proposed
rights issue of TV18 and Network18 Media & Investments
Limited (“Network18”), the holding company of TV18 and
TV18.

Reliance Industries Limited 91

Infotel, a subsidiary of RIL, has entered into a content
license agreement with Network18 and TV18, under which
Infotel shall have preferential access to (i) the content of
all the media and web properties of Network 18 and its
associates and (ii) programming and digital content of all
the broadcasting channels of TV18 and its associates on
a first right basis as a most preferred customer.
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. However
the financial information of the subsidiary companies is
disclosed in the Annual Report in compliance with the
said circular. 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.
Details of major subsidiaries of the Company are covered
in Management’s Discussion and Analysis Report forming
part of the Annual Report.
Directors
Shri M.L. Bhakta, Shri Hital R. Meswani, Prof. Dipak C.
Jain and Shri P.M.S. Prasad, Directors, retire by rotation
and being eligible, offer themselves for reappointment at
the ensuing Annual General Meeting.
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)

in the preparation of the annual accounts for the year
ended March 31, 2012, 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;

(ii)

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, 2012 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 Financial Statements 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 2011-12:
(i) For the textiles business - M/s. Kiran J. Mehta & Co,
Cost Accountants; (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; M/s Bandyopadhyaya, Bhaumik & Co.,
Cost Accountants; (iii) For the polyester business – Shri
Suresh D. Shenoy, Cost Accountant, M/s. V. Kumar &
Electricity
Associates, Cost Accountants. (iv) For
Generation - Shri S.N. Bavadekar, Cost Accountant; and
(v) For Petroleum Business – Shri S.N. Bavadekar, Cost
Accountant; M/s Kiran J. Mehta & Co., Cost Accountants;
Shri Suresh D. Shenoy, Cost Accountant;
M/s Bandyopadhyaya Bhaumik & Co., Cost Accountants;
M/s Shome & Banerjee, Cost Accountants.

9 2

Partnering India's new future. Sustainably.

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. The Secretarial Audit Report for the
financial year ended March 31, 2012, 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, Securities Contracts (Regulation)
Act, 1956, Depositories Act, 1996, The Foreign Exchange
Management Act, 1999 to the extent applicable to Overseas
Direct Investment (ODI), Foreign Direct Investment (FDI)
and External Commercial Borrowings (ECB) 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, 2011, The Securities and Exchange Board of
India (Prohibition of Insider Trading) Regulations, 1992,
The Securities and Exchange Board of India (Employee
Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999, The Securities and Exchange
Board of India (Issue and Listing of Debt Securities)
Regulations, 2008 and The Securities and Exchange Board
of India (Buy Back of Securities) Regulations, 1998 and
Listing Agreements with the Stock Exchanges.
Particulars of Employees
In terms of the provisions of Section 217(2A) of the
Companies Act, 1956, read with the Companies (Particulars
of Employees) Rules, 1975 as amended, the names and
other particulars of the employees are set out in the
annexure to the Directors’ Report. Having regard to the
provisions of Section 219(1)(b)(iv) of the said Act, the
Annual Report excluding the aforesaid information is being
sent to all the members of the Company and others entitled
thereto. Any member interested in obtaining such
particulars may write to the Company Secretary at the
Registered Office of the Company.
Energy Conservation, Technology Absorption and
Foreign Exchange Earnings and Outgo
The particulars relating to energy conservation,
technology absorption, foreign exchange earnings and
outgo, as required to be disclosed under Section 217(1)(e)
of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 are provided in the Annexure-II 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, relevant amounts 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.
Acknowledgement
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 20, 2012

Annexure – I
Disclosures required under the SEBI (Employee Stock
Option Scheme and Employee Stock Purchase Scheme)
Guidlines, 1999
(a) Options granted - 5,97,30,217; (b) Exercise Price -
5,74,56,000 options granted at an exercise price of ` 642
per option (adjusted for bonus issue), 54,000 options
granted at an exercise price of ` 842 per option (adjusted
for bonus issue); 20,16,000 options granted at an exercise
price of ` 1146 per option (adjusted for bonus issue);
1,00,200 options granted at an exercise price of ` 644.50
per option (adjusted for bonus issue); 16,000 options
granted at an exercise price of ` 995 per option; 19,200
options granted at an exercise price of ` 929 per option;
4,100 options granted at an exercise price of ` 972 per
option; 18,000 options granted at an exercise price of
` 871 per option; 23,717 options granted at an exercise
price of ` 847 per option; 15,000 options granted at an
exercise price of ` 765 per option and 8,000 options granted

Reliance Industries Limited 93

Dahej Manufacturing Division

(cid:1)

Increased the residue gas exchanger area in the GCU
plant.

(cid:1) Gas Turbine 01 uprated in CPP.

(cid:1)

In cooling tower 04 one GRP fan replaced with FRP
fan.
Energy saving due to Vapor Compression
Refrigeration (VCR) performance improvement at the
PVC plant.
Rerouting of recycle water for better heat recovery in
MEG plant.

Hazira Manufacturing Division
(cid:1) Advanced Process Control (APC) implementation in

Gas Turbine GT-2 and steam network.

(cid:1) Uprating Gas turbine capability of GT-2 and GT-7 at

(cid:1)

CPP&U plant.
Improvement in waste heat recovery performance of
Make Up Water Heater (MUWH ) # 4 and MUWH #
7 at CPP&U plant.
Reduction in steam and power consumption in CP-2
& CP-3 by commissioning of glycol ejector in place of
steam ejector.
Reduction in steam consumption by reducing the
water / aqueous Ethylene Oxide (EO) ratio in glycol
reactors at MEG-I plant.

(cid:1)

(cid:1) Utilization of waste steam generated from Flash Drum
(D1-1406) to POY plant resulting in LP Steam savings
at PTA-I plant.
Reduction in N2 consumption by implementation of
various N2 conservation measures and consumption
optimization in various areas of CP operations at POY/
PET plant.
Provision of steam distribution pipes inside the pre-
crimper & draw steam box and installation of sparger
pipes in DM-8 resulting in steam savings at PSF CP-
11 plant.
Power consumption reduction by installation of “auto-
control logic” in Quench Air Humidification Units
(AHU’s) of 12 spinning machines in Du-Pont plant
(CP-1, 2, 4 and 5).
Reduction in operating pressure of 3rd PTA
Crystallizer (D1-1403) resulting in SHP steam savings
at PTA-I plant.
Reduction in 2nd Combuster Preheater (E3-162)
condensate temperature resulting in SHP steam
savings at PTA plant.

(cid:1)

at an exercise price of ` 715 per option. The above exercise
prices exclude all applicable taxes, as may be levied in this
regard; (c) Options vested 2,84,45,590; (d) Options
exercised 50,28,469; (e) The total number of shares arising
as a result of exercise of options – 50,28,469; (f) Options
lapsed – 1,55,73,428; (g) Variation in terms of options –
Nil; (h) Money realised by exercise of options – `
347,98,48,026; (i) total number of options in force [(a) – (d)
– (f)] – 3,91,28,320; (j) Employee wise details of options
granted to: (i) Senior Management Personnel: Shri Nikhil
R. Meswani – 14,00,000, Shri Hital R. Meswani - 14,00,000,
Shri P.M.S. Prasad - 10,00,000 and Shri P.K. Kapil – 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
– Nil (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 and (iv) 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’ is ` 61.21.
Annexure – II
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 2011-12 are listed below:
Allahabad Manufacturing Division

(cid:1)

Energy saving by clubbing cooling water utility and
cooling water process circuits thereby running only
one cooling pump instead of two pumps used.
Reduction of steam consumption by switching from
pressure regulated valve to control valve and process
optimisation.
Saving on fuel oil by using control valve mechanism
to regulate column temperature, thereby reducing heat
load.
Installation of transparent sheets in warehouse
leading to reduction in lighting load.
Replacement of tube lights with LED’s.

(cid:1)

Barabanki Manufacturing Division
Installation of Solar Lights.
Replacement of conventional luminaries with energy
efficient luminaries.
Installation of Eco Ventilators.

(cid:1)

9 4

Partnering India's new future. Sustainably.

Hoshiarpur Manufacturing Division

(cid:1)

Power saving due to non operation of TSU III Drive
(Motor & Gear Box) because of process modification
for manufacture of PSF conjugate.
Power saving due to non operation of return air fan of
POY quench AHU.
Power saving due to stoppage of monomer pump of
POY after process modification.
Power saving by installing acrylic sheets & tur bo
ventilators.
Power saving by replacing of traditional lights with
CFL.

Jamnagar Manufacturing Division (DTA)

(cid:1)

Fuel reduction in heaters through excess air reduction,
maximizing heat recovery in convection section & air
preheaters.
Reduction of LP steam consumption in Amine treating
units by increasing amine concentration thereby
reducing lean amine circulation rate.
Reductions in fuel consumption in Diesel Hydrotreater
(DHT) unit, by routing Hot Heavy Kerosene directly
from crude unit to DHT feed bypassing tank farm.
(cid:1) Heat up by MP steam eliminated by optimizing reformer

(cid:1)

splitter feed temperature.
Reduction in power by reducing recycle flow in Plat
former Net-Gas Compressor.
Power output increased by maximizing flue gas flow
through expander after tuning inlet valve in Fluidized
Catalytic Cracking (FCC) unit.
Flare loss reduction by continuous monitoring/
identification/rectification of passing valves, reducing
N2 purge to flare system and maximizing recovery
through fuel gas recovery system.

(cid:1) Online cleaning provision of convection section coils
provided for additional heat recovery from Plat former
Heater flue gas. Earlier coils were inaccessible for
cleaning online.
Power consumption reduction by maximizing flow
through power recovery turbine in Vacuum Gas Oil
Hydrotreater (VGOHT) units.

(cid:1)

Jamnagar Manufacturing Division (SEZ)

(cid:1)

Stoppage of one Back Pressure Turbine (BPT) out of
two, in CPP to improve the efficiency of operation.
Routing hot Vacuum Gas Oil (VGO) to FCC from VGO
HT-4 bypassing LP Steam generator and thus reducing
LP steam dumping.
Saving of power & LP steam dumping by
interconnection of CPP Boiler Feed Water (BFW)
header & refinery header.
Provision to feed hot Coker Kerosene directly to
Diesel Hydro Desulfurization (DHDS) Unit to avoid
cold feed processing.
Routing of vent gases from degassing column to Fuel
Gas header in Poly Propylene (PP) Unit for reducing
the flaring.
Installation of Magnetic Resonator in fuel gas line to
burners in crude furnace for the reduction of fuel.
Reduction in 4th stage discharge pressure in
hydrogen compression system to reduce the power
consumption.
Increasing the level span of the Coker Unit flare
system seal pot V52 for preventing LLP Flaring.

Nagothane Manufacturing Division

(cid:1)

Reduction of steam consumption at LDPE plant.
(cid:1) Anti-corrosion coating (Corrocoat) of 12 nos cooling

water pumps.

Nagpur Manufacturing Division

(cid:1)

Power saving due to stoppage of spray water pumps
in Air Washer 2 and Air Washer 3 after process
modifications.
Power saving due to stoppage of Godets in Take up
in line 12 of POY plant after process modification.
Power saving due to removal of hot water coil from
line 13 and 14 Air Washers after process modifications.

Naroda Manufacturing Division

(cid:1)

Power saving by repalcement of Borewell Pump of
Borewell#2 with new energy efficient Pump Motor
Set.
Power saving by stopping 3 nos. underloaded
1MVA transformers located at Sub Station 5 and
Sub Station 1.
Stopping effluent transfer pump and using gravity at
Effluent Treatment Plant (ETP).

(cid:1)

(cid:1) Upgrading the Worsted Humidification Plants by
replacing Centifugal Fans by Axial Flow Fans.
Power saving by lowering Set Point of Air Compressor
and optimising the hole in weaving looms.
Energy saving by converting “Single Pass” to “ Three

(cid:1)

Reliance Industries Limited 95

Pass” of Fabric in Float Drier of Harish Scouring
Machine.

(b) Additional investments / proposals being implemented

for reduction of consumption of energy:

Patalganga Manufacturing Division

Dahej Manufacturing Division

(cid:1)

Burners of LAB Heaters BA-951, BA-201 & BA-601
were changed from oil fired to dual fired. Burner tips
of BA-801 (already dual fired) were replaced at NG
project Phase 2 in the LAB plant resulting in the
energy savings.
Power saving due to Cooling water Pump B
corrocoated in EC plant.
Power saving due to Staggered switching of P25 A/B
to ensure one pump running instead of 2 pumps in EC
plant.
60W GLS lamps replaced with 11W CFL lamps
(400 nos).
350 Nos 18W LED tubelights provided in place of
40W normal tube lights.
Power saving due to Energy efficient Encon blades
installed in E-5010A/B fin fans at the PX plant.
Replacement of faulty traps at the Patalganga
Manufacturing Division resulting in steam savings.
Power saving due to Corrocoating of CP7 cooling
water pumps 3 nos.

Silvassa Manufacturing Division

(cid:1)

Replacement of 68 nos. old DTY machines with energy
efficient new DTY Machines in Plant I.

Vadodara Manufacturing Division

(cid:1)

Refractory replacement for reduction in radiation heat
losses in Naptha Cracker heater H101 and H102.
(cid:1) Modification done to supply excess O2 to ACN plant
from UB2 air separation unit thereby stopping of BBP
N2O2 plant.
Repair and replacement of steam traps of PPCP plant.

(cid:1)

Transferring HF stripper column bottom material to
benzene column using differential pressure only; thus
stopping AP-5 A/B (HF stripper bottom pump).

Installation of new tandem type design bypass damper
with air sealing to reduce flue gas losses from bypass
damper.

(cid:1) Heat rate reduction by uprating GT 2.

(cid:1)

LMP steam header pressure reduction thereby giving
a considerable reduction to GTPP stack temperature.

(cid:1) Minimisation of heat losses from both GT’s hot flue

gas duct at GTPP.

(cid:1)

Installation of one new electrolyzer with fifth
generation elements at the Chlor Alkali Plant.

Increasing MP and LP steam lines insulation thickness
in yard piping.

Installation of hydraulic Turbine in EPRU plant.

LP ethylene scheme from GCU to VCM to offload
C2R and C3R in GCU plant.
Preheating Slurry Stripper Feed with Centrate Water
in PVC plant.

Hazira Manufacturing Division

(cid:1)

Steam Turbine STG-2 load reduction resulting in SHP
steam savings.

(cid:1) Deaerator # 3, 4 process optimization resulting in LP

Steam saving at CPP&U plant.

Hoshiarpur Manufacturing Division

(cid:1)

Replacement of existing chilling machines with energy
efficient chilling machines.
Energy saving by installing inverter on raw water /
cooling water pump.

Jamnagar Manufacturing Division (DTA)
(cid:1) Heat recovery from Light Cycle Gas Oil (LCGO) Pump
around to preheat cold Vacuum Residue (VR) from
tanks to reduce firing in coker heaters.
Power saving by replacing aluminum Fin Fan blades
with FRP blades in hydrogen Unit & Light Naphtha
Unionfiner Unit.

(cid:1)

Jamnagar Manufacturing Division (SEZ)
(cid:1) Heat recovery from Coker LCGO pump around in

stripper reboiler for saving MP Steam

Nagothane Manufacturing Division

(cid:1)

Power augmentation of Gas Turbine uprate.
Converting 10-P-41A from Steam turbine drive to motor
drive.

Nagpur Manufacturing Division

(cid:1)

Power saving due to stoppage of Godgets in Take up
in lines 13 and 14 at POY plant.
Patalganga Manufacturing Division

(cid:1)

Power saving due to replacement of blades of Fin
Fans of Paraffin column in LAB plant with ENCON
blades.
Power saving due to corrocating of one cooling water
pump at EC plant.

9 6

Partnering India's new future. Sustainably.

(cid:1)

Power saving due to installation of Variable Frequency
Drive (VFD) on DM water pump at EC plant.
Power saving due to relocating VAM machine from
EC plant to utilities.
Power saving due to use of Energy Efficient Encon
blades in all Fin Fans at PX plant.
Power saving due to single pump operation at PX
plant.
Steam trap replacement at PX plant resulted in savings
of steam.
Power saving due to 1 more VAM chillers for Utility
plant.
CP1 Vapour dow line reinsulation resulted in savings
of fuel.

(cid:1) Glycol ejectors for CP 4,5 and 6 resulted in savings of

steam & power.

Silvassa Manufacturing Division

(cid:1)

Replacement of old small sized compressors with
highly energy efficient big size compressors.

Vadodara Manufacturing Division

(cid:1)

Stoppage of one Aux boiler at IOP plant.

(cid:1) Uprating GT1 to reduce heat rate and increase power

output at GTPP plant.

(cid:1)

(cid:1) Upgrade MOC (SS316 to Duplex SS) of Waste Heat
Boiler DM water bank at NCP plant and avoiding flare
header chocking.
Replacement of GT1 Bypass Stack Damper at GTPP
plant.
Installation of two new energy efficient chillers in
place of the present refrigeration compressors of KPC
make at PVC plant.

(cid:1)

(cid:1) Use of excess LDPE LLP steam at IOP deaerator at

IOP plant.

(cid:1)

Installation of Flare steam MOV with digital control
at DCS at NCP plant.

Refractory replacement of H-104 at NCP plant.

IOP Cooling Tower Optimization at IOP plant.

(cid:1) GT1 Duct Replacement at GTPP plant.

(cid:1)

Reflux optimization at T-410 column at PBR 1 plant.

Change in Control philosophy at steam Network to
avoid steam venting at ACN plant.

(cid:1) H-107 and H-108 heater damper to be made operative
to reduce the Excess O2 at the stack in NCP plant.

(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:1)

Energy saving by clubbing cooling water utility and
cooling water process circuits thereby running only
one cooling pump resulting in power cost saving of `
0.03 crore per annum.
Reduction of steam consumption by switching from
pressure regulated valve to control valve and process
optimisation resulting in annual steam saving of 9264
MT and financial savings of ` 2.84 crore per annum.
Saving on fuel oil by using control valve mechanism
to regulate column temperature, thereby reducing heat
load resulting in annual heat saving of 1354 MKCal
and financial savings of ` 0.68 crore per annum.
Installation of transparent sheets in warehouse
leading to reduction in lighting load , thereby resulting
in annual power saving of 47974 KWH and the
financial savings of ` 0.02 crore per annum.
Replacement of tube lights with LED’s resulting in
annual power saving of 27209 KWH and financial
saving of ` 0.01 crore per annum.

Barabanki Manufacturing Division

(cid:1)

Installation of Solar Lights resulting in annual power
saving of 1533 KWH and financial savings of ` 0.0007
crore per annum.
Replacement of conventional luminaries with energy
efficient luminaries, resulting in annual power saving
of 4701 KWH and financial savings of ` 0.002 crore
per annum.
Installation of Eco Ventilators resulting in annual
power saving of 36792 KWH and financial savings of
` 0.02 crore per annum.
Dahej Manufacturing Division

(cid:1)

Increased the residue gas exchanger area in the GCU
plant resulting in energy saving of 1 MT / hr of steam
and financial savings of ` 0.92 crore per annum.
(cid:1) Gas Turbine 01 uprated in CPP resulting in fuel saving
of 0.33 MT / hr and financial savings of ` 7.97 crore
per annum.
In cooling tower 04 one GRP fan replaced with FRP
fan resulting in power saving of 30 KW / hr and
financial savings of ` 0.06 crore per annum.
Energy saving due to Vapor Compression
Refrigeration (VCR) performance improvement at the
PVC plant resulting in power saving of 71.75 KW / hr
and financial savings of ` 0.14 crore per annum.

(cid:1)

Reliance Industries Limited 97

(cid:1)

savings of ` 0.96 crore (approx) per annum.
Reduction in N2 consumption by implementation of
various N2 conservation measures and consumption
optimization in various areas of CP operations at POY/
PET plant resulting in annual energy saving of 3261
Gcal and financial savings of ` 0.90 crore (approx) per
annum.
Provision of steam distribution pipes inside the pre-
crimper & draw steam box and installation of sparger
pipes in DM-8 resulting in annual steam saving of
2810 Gcal at PSF CP-11 plant and financial savings of
` 0.87 crore (approx) per annum.
Power consumption reduction by installation of “auto-
control logic” in Quench Air Humidification Units
(AHU’s) of 12 spinning m/c’s in Du-Pont plant (CP-1,
2, 4 and 5) resulting in annual energy saving of 2757
Gcal and financial savings of ` 0.86 crore (approx) per
annum.
Reduction in operating pressure of 3rd PTA
Crystallizer (D1-1403) resulting in annual SHP steam
savings of 2734 Gcal at PTA-I plant and financial
savings of ` 0.84 crore (approx) per annum.
Reduction in 2nd Combuster Preheater (E3-162)
condensate temperature resulting in annual SHP steam
saving of 2656 Gcal at PTA plant and financial savings
of ` 0.82 crore (approx) per annum.
Steam Turbine STG-2 load reduction resulting in
annual SHP steam savings of 7337 Gcal and financial
savings of ` 3.33 crore (approx) per annum.

(cid:1) Deaerator # 3, 4 process optimization resulting in
annual LP Steam saving of 7067 Gcal at CPP&U plant
and financial savings of ` 3.20 crore (approx) per
annum.

Hoshiarpur Manufacturing Division

(cid:1)

Power saving due to non operation of TSU III Drive
(Motor & Gear Box) because of process modification
for manufacture of PSF conjugate resulting in annual
power saving of 156480 KWH and financial savings
of ` 0.09 crore per annum.
Power saving due to non operation of return air fan of
POY quench AHU resulting in annual power saving
of 394200 KWH and financial savings of ` 0.24 crore
per annum.
Power saving due to stoppage of monomer pump of
POY after process modification resulting in annual
power saving of 297840 KWH and financial savings
of ` 0.18 crore per annum.
Power saving by installing acrylic sheets & turbo
ventilators resulting in power annual saving of 131400

(cid:1)

Rerouting of recycle water for better heat recovery in
MEG plant resulting in energy saving of 1.64 MT / hr
of steam and financial savings of ` 1.03 crore per
annum.
Installation of one new electrolyzer with fifth
generation elements at the Chlor Alkali Plant shall
result in annual power saving of 0.5 MW and financial
savings of ` 11.31 crore per annum.
Increasing MP and LP steam lines insulation thickness
in yard piping shall result in fuel saving of 0.08 MT/
Hr and financial savings of ` 2.08 crore per annum.
Installation of hydraulic Turbine in EPRU plant shall
result in annual power saving of 0.387 MW and
financial savings of ` 1.19 crore per annum.
LP ethylene scheme from GCU to VCM to offload
C2R and C3R in GCU plant shall result in annual steam
saving of 1.3 MT and financial savings of ` 1.19 crore
per annum.
Preheating Slurry Stripper Feed with Centrate Water
in PVC plant shall result in annual steam saving of
0.38 MT and financial savings of ` 0.34 crore per
annum.

Hazira Manufacturing Division
(cid:1) Advanced Process Control (APC) implementation in
Gas Turbine GT-2 and steam network resulting in
annual energy saving of 21875 Gcal and financial
savings of ` 6.78 crore (approx) per annum.

(cid:1)

(cid:1) Uprating Gas turbine capability of GT-2 and GT-7 at
CPP&U plant resulting in annual energy saving of
22491 Gcal and financial savings of ` 6.63 crore
(approx) per annum.
Improvement in waste heat recovery performance of
Make Up Water Heater (MUWH ) # 4 and MUWH #
7 at CPP&U plant resulting in annual energy saving
of 13222 Gcal and financial savings of ` 4.10 crore
(approx) per annum.
Reduction in steam and power consumption in CP-2
& CP-3 by commissioning of glycol ejector in place of
steam ejector resulting in annual energy saving of
9452 Gcal and financial savings of ` 2.93 crore (approx)
per annum.
Reduction in steam consumption by reducing the
water aqueous Ethylene Oxide (EO) ratio in glycol
reactors at MEG-I plant resulting in annual energy
saving of 7437 Gcal and financial savings of ` 2.62
crore (approx) per annum.

(cid:1)

(cid:1) Utilization of waste steam generated from Flash Drum
(D1-1406) to POY plant resulting in annual LP steam
savings of 3099 Gcal at PTA-I plant and financial

9 8

Partnering India's new future. Sustainably.

(cid:1)

KWH and financial savings of ` 0.08 crore per annum.
Power saving by replacing of traditional lights with
CFL resulting in annual power saving of 6132 KWH
and financial savings of ` 0.004 crore per annum.
Replacement of existing chilling machines with energy
efficient chilling machines shall result in annual power
saving of 426300 KWH and financial savings of
` 0.25 crore per annum.
Energy saving by installing inverter on raw water /
cooling water pump shall result in annual power saving
of 36000 KWH and financial savings of ` 0.02 crore
per annum.

Jamnagar Manufacturing Division (DTA)

(cid:1)

Fuel reduction in heaters through excess air reduction,
maximizing heat recovery in convection section & air
preheaters resulting in fuel saving of 16 TPD and
financial savings of ` 18.17 crore (approx) per annum.
Reduction of LP steam consumption in Amine treating
Units by increasing amine concentration and thereby
reducing lean amine circulation rate resulting in LP
steam saving of 11 TPH and financial savings of
` 11.45 crore (approx) per annum.
Reductions in fuel consumption in Diesel Hydrotreater
(DHT) unit, by routing Hot Heavy Kerosene directly
from crude unit to DHT feed bypassing tank farm
resulting in fuel saving of 9.1 TPD and financial
savings of ` 10.29 crore (approx) per annum. Heat
rejected through air cooler was eliminated.

(cid:1)

(cid:1) Heat up by MP steam eliminated by optimizing
Reformer splitter feed temperature. This resulted in
17 TPH MP of steam being saved for 4000 hrs
operation in a year and financial savings of ` 9.53
crore (approx) per annum.
Reduction in power by reducing recycle flow in Plat
former Net-Gas Compressor resulting in power saving
of 33.6 MW per day and financial savings of ` 8.74
crore (approx) per annum.
Power output increased by maximizing flue gas flow
through expander after tuning inlet valve in Fluidized
Catalytic Cracking (FCC) unit resulting in net output
power increase by 1.2 MW and financial savings of
` 7.49 crore (approx) per annum.
Flare loss reduction by continuous monitoring/
identification/rectification of passing valves, reducing
N2 purge to flare system and maximizing recovery
through fuel gas recovery system resulting in flared
quantity reduction by 6 TPD and financial savings of
` 6.81 crore (approx) per annum.

(cid:1)

(cid:1) Online cleaning provision of convection section coils

provided for additional Heat recovery from Plat former
Heater flue gas. Earlier coils were inaccessible for
cleaning online. This resulted in MP steam generation
increase by 5 TPH and financial savings of ` 5.88
crore (approx) per annum.
Power consumption reduction by maximizing flow
through power recovery turbine in Vacuum Gas Oil
Hydrotreater (VGOHT) units. This resulted in power
saving of 16 MW per day and financial savings of
` 4.16 crore (approx) per annum.

(cid:1)

(cid:1) Heat recovery from Light Cycle Gas Oil (LCGO) Pump
around to preheat cold Vacuum Residue (VR) from
tanks to reduce firing in coker heaters. This shall result
in reduction in fuel by 11.4 TPD and financial savings
of ` 10.22 crore (approx) per annum
Power saving by replacing aluminum Fin Fan blades
with FRP blade in hydrogen unit & Light Naphtha
Unionfiner unit. This shall result in power saving of
2263 KWH per day and financial savings of ` 0.59
crore (approx) per annum.

(cid:1)

Jamnagar Manufacturing Division (SEZ)

(cid:1)

Fuel reduction in process heaters through excess air
reduction, maximizing heat recovery in convection
section and air preheaters, operating combustion
control system in auto mode resulting in fuel saving
of 9.7 TPD and financial savings of ` 8.66 crore
(approx) per annum.
Stopping one Gas Turbine out of five during winter
months there by improving the heat rate resulting in
fuel saving of 42 TPD and financial savings of ` 5.01
crore (approx) per annum.
Stoppage of one Back Pressure Turbine (BPT) out of
two, in CPP to improve the efficiency of operation
resulting in fuel saving of 15.3 TPD and financial
savings of ` 13.61 crore (approx) per annum.
Routing hot Vacuum Gas Oil (VGO) to FCC from VGO
HT-4 bypassing LP Steam generator and thus reducing
LP Steam dumping resulting in saving of 7 TPH of LP
Steam dumping and financial savings of ` 2.68 crore
(approx) per annum.
Saving of power & LP steam dumping by
interconnection of CPP Boiler Feed Water (BFW)
header & refinery header resulting in annual power
saving of 890 KWH and financial savings of ` 3.21
crore (approx) per annum.
Provision to feed hot Coker Kerosene directly to
Diesel Hydro Desulfurization (DHDS) Unit to avoid
cold feed processing resulting in fuel saving of 2.2
TPD and financial savings of ` 1.95 crore (approx) per
annum.

Reliance Industries Limited 99

(cid:1)

resulting in annual power saving of 70080 KWH and
financial savings of ` 0.04 crore (approx) per annum.
Power saving due to stoppage of Godgets in Take up
in lines 13 and 14 at POY plant shall result in annual
power saving of 52560 KWH and financial savings of
` 0.03 crore (approx) per annum.

Naroda Manufacturing Division

(cid:1)

Power saving by replacement of Borewell Pump of
Borewell#2 with new energy efficient Pump Motor
Set resulting in annual power saving of 137 GJ and
financial savings of ` 0.02 crore per annum.
Power saving by stopping 3 nos. underloaded 1MVA
transformers located at Sub Station 5 and Sub Station
1 resulting in annual power saving of 232 GJ and
financial savings of ` 0.04 crore per annum.
Stopping effluent transfer pump and using gravity at
Effluent Treatment Plant (ETP) resulting in annual
power saving of 255 GJ and financial savings of
` 0.05 crore per annum.

(cid:1)

(cid:1) Upgrading the Worsted Humidification Plants by
replacing Centifugal Fans by Axial Flow Fans resulting
in annual power saving of 466 GJ and financial
savings of ` 0.08 crore per annum.
Power saving by lowering Set Point of Air Compressor
and optimising the hole in weaving looms resulting in
annual power saving of 958 GJ and financial savings
of ` 0.17 crore per annum.
Energy saving by converting “Single Pass” to “ Three
Pass” of Fabric in Float Drier of Harish Scouring
Machine resulting in annual power saving of 4672 GJ
and financial savings of ` 0.17 crore per annum.

(cid:1)

Patalganga Manufacturing Division

(cid:1)

Burners of LAB Heaters BA-951, BA-201 & BA-601
were changed from oil fired to dual fired. Burner tips
of BA-801 (already dual fired) were replaced at NG
project Phase 2 in the LAB plant resulting in annual
steam saving of 12000 MT and financial saving of
` 13.00 crore per annum.
Power saving due to Cooling water Pump B
corrocoated in EC plant resulting in annual power
saving of 211200 KWH and financial saving of ` 0.13
crore per annum.
60W GLS lamps replaced with 11W CFL lamps (400
nos) resulting in annual power saving of 54000 KWH
and financial saving of ` 0.03 crore per annum.
350 Nos 18W LED tubelights provided in place of
40W normal tube lights resulting in annual power
saving of 42000 KWH and financial saving of ` 0.02
crore per annum.

(cid:1)

Routing of vent gases from degassing column to Fuel
Gas header in Poly Propylene (PP) Unit for reducing
the flaring resulted in reduction of flaring by 2.2 TPD
and financial savings of ` 1.95 crore (approx) per
annum.
Installation of Magnetic Resonator in fuel gas line to
burners in crude furnace for the reduction of fuel
resulting in fuel saving of 0.7 TPD and financial
savings of ` 0.61 crore (approx) per annum.
Reduction in 4th stage discharge pressure in
hydrogen compression system to reduce the power
consumption resulting in annual power saving of 0.35
MW and financial savings of ` 1.26 crore (approx)
per annum.
Increasing the level span of the Coker Unit flare
system seal pot V52 for preventing LLP Flaring
resulted in reduction of 3.0 TPD of flaring and financial
savings of ` 2.68 crore (approx) per annum.

(cid:1) Heat recovery from Coker LCGO pump around in
stripper reboiler for saving MP Steam of 10.5 TPH
and financial savings of ` 7.20 crore (approx) per
annum.

Nagothane Manufacturing Division

(cid:1)

Reduction of steam consumption at LDPE plant
resulting in annual reduction of LP steam
consumption by 15330 MT and HP steam
consumption by 5840 MT and financial savings of
` 1.07 crore per annum.

(cid:1)

(cid:1) Anti-corrosion coating (Corrocoat) of 12 nos cooling
water pumps resulting in annual power saving of 2643
MW and financial savings of ` 0.41 crore per annum.
Power augmentation of Gas Turbine uprate shall result
in saving heat rate of 104 KCal / KWH and financial
savings of ` 18.21 crore per annum.
Converting 10-P-41A from Steam turbine drive to motor
drive shall result in steam saving of 5.73 MT / hr and
financial savings of ` 3.82 crore per annum.

(cid:1)

Nagpur Manufacturing Division

(cid:1)

Power saving due to stoppage of spray water pumps
in Air Washer 2 and Air Washer 3 after process
modifications resulting in annual power saving of
122640 KWH and financial savings of ` 0.07 crore
(approx) per annum.
Power saving due to stoppage of Godets in Take up
in line 12 of POY plant after process modification
resulting in annual power saving of 21900 KWH and
financial savings of ` 0.01 crore (approx) per annum.
Power saving due to removal of hot water coil from
line 13 and 14 Air Washers after process modifications

100

Partnering India's new future. Sustainably.

(cid:1)

Power saving due to Energy efficient Encon blades
installed in E-5010A/B fin fans at the PX plant
resulting in annual power saving of 24883 KWH and
financial saving of ` 0.02 crore per annum.
Replacement of faulty traps at the Patalganga
Manufacturing Division resulting in annual steam
saving of 11699 MT and financial savings of ` 2 crore
per annum.
Power saving due to replacement of blades of Fin
Fans of Paraffin column in LAB plant with ENCON
blades shall result in annual power saving of 97780
KWH and financial saving of ` 0.04 crore per annum.
Power saving due to corrocating of one cooling water
pump at EC plant shall result in annual power saving
of 365000 KWH and financial saving of ` 0.10 crore
per annum.
Power saving due to installation of Variable Frequency
Drive (VFD) on DM water pump at EC plant shall
result in annual power saving of 62050 KWH and
financial saving of ` 0.03 crore per annum.
Power saving due to relocating VAM machine from
EC plant to utilities shall result in annual power saving
of 3603600 KWH and financial saving of ` 1.80 crore
per annum.
Power saving due to use of Energy Efficient Encon
blades in all Fin Fans at PX plant shall result in annual
power saving of 749680 KWH and financial saving of
` 0.45 crore per annum.
Power saving due to single pump operation at PX
plant shall result in annual power saving of 1988520
KWH and financial saving of ` 1.19 crore per annum.
Steam trap replacement at PX plant shall result in
annual steam saving of 5294 Tons and financial saving
of ` 0.45 crore per annum.
Power saving due to 1 more VAM chillers for Utility
plant shall result in annual power saving of 5544000
KWH and financial saving of ` 2.77 crore per annum.
CP1 Vapour dow line reinsulation shall result in annual
fuel saving of 6000 MMKCal and financial saving of
` 1.80 crore per annum.

(cid:1) Glycol ejectors for CP 4,5 and 6 shall result in annual
steam saving of 26280 Tons & power saving of 262800
KWH and financial saving of ` 5.13 crore per annum.

Silvassa Manufacturing Division

(cid:1)

Replacement of 68 nos. old DTY machines with energy
efficient new DTY Machines in Plant I resulting in
annual energy savings of 0.9 MW (approx) and
financial savings of ` 3.35 crore per annum.

(cid:1)

Replacement of old small sized compressors with
highly energy efficient big size compressors shall
result in annual energy saving of 1.7 MW (approx)
and financial savings of ` 6.41 crore per annum.

Vadodara Manufacturing Division

(cid:1)

Refractory replacement for reduction in radiation heat
losses in Naptha Cracker heater H101 and H102
resulted in fuel saving of 503138 Kcal / hr and financial
savings of `1.52 crore per annum.

(cid:1)

(cid:1) Modification done to supply excess O2 to ACN plant
from UB2 air separation unit thereby stopping of BBP
N2O2 plant resulting in power saving of 730 KW / hr
and financial savings of `1.90 crore per annum.
Stoppage of steam venting in PPCP plant resulting in
LP steam saving of 600 Kg / hr and financial savings
of `1.17 crore per annum.
Transferring HF stripper column bottom material to
benzene column using differential pressure only; thus
stopping AP-5 A/B (HF stripper bottom pump)
resulting in annual power saving of 77.76 MW and
financial savings of ` 0.02 crore per annum.
Installation of new tandem type design bypass damper
with air sealing to reduce flue gas losses from bypass
damper resulting in energy saving of 15.48 MMKCal
per day and financial savings of `1.92 crore per annum.
(cid:1) Heat rate reduction by uprating GT2 resulting in
energy saving of 61.90 MMKCal per day and financial
savings of ` 7.69 crore per annum.
LMP steam header pressure reduction thereby giving
a considerable reduction to GTPP stack temperature
resulting in energy saving of 14.98 MMKCal per day
and financial savings of ` 1.86 crore per annum.
(cid:1) Minimisation of heat losses from both GT’s hot flue
gas duct at GTPP resulting in energy saving of 5.47
MMKCal per day and financial savings of ` 0.68 crore
per annum.
Stoppage of one Aux boiler at IOP plant shall result in
steam saving of 45 MT / hr and financial savings of
` 15.77 crore per annum.

(cid:1)

(cid:1) Uprating GT 1 to reduce heat rate and increase power
output at GTPP plant shall result in energy saving of
61.90 MMKCal per day and financial savings of
` 7.69 crore per annum.

(cid:1) Upgrade MOC (SS316 to Duplex SS) of Waste Heat
Boiler DM water bank at NCP plant and avoiding flare
header chocking shall result in annual energy saving
of 10558 MMKCal and financial savings of ` 3.17
crore per annum.
Replacement of GT 1 Bypass Stack Damper at GTPP
plant shall result in energy saving of 15.48 MMKCal

(cid:1)

per day and financial savings of ` 1.92 crore per
annum.
Installation of two new energy efficient chillers in
place of the present refrigeration compressors of KPC
make at PVC plant shall result in annual power saving
of 3178 MW and financial savings of ` 1.91 crore per
annum.

(cid:1)

(cid:1) Use of excess LDPE LLP steam at IOP deaerator at
IOP plant shall result in steam saving of 1.5 MT / hr
and financial savings of ` 1.51 crore per annum.
Installation of Flare steam MOV with digital control
at DCS at NCP plant shall result in steam saving of 1
MT / hr and financial savings of ` 1.01 crore per
annum.
Refractory replacement of H-104 at NCP plant shall
result in annual energy saving of 2640 MMKCal and
financial savings of ` 0.79 crore per annum.
IOP Cooling Tower Optimization at IOP plant shall
result in power saving of 130 KW / hr and financial
savings of ` 0.68 crore per annum.

(cid:1)

(cid:1) GT 1 Duct Replacement at GTPP plant shall result in
energy saving of 5.47 MMKCal per day and financial
savings of ` 0.68 crore per annum.
Reflux optimization at T-410 column at PBR 1 plant
shall result in steam saving of 0.5 MT / hr and financial
savings of ` 0.50 crore per annum.
Change in control philosophy at steam network to
avoid steam venting at ACN plant shall result in steam
saving of 0.3 MT / hr and financial savings of ` 0.30
crore per annum.

(cid:1)

(cid:1) H-107 and H-108 heater damper to be made operative
to reduce the excess O2 in the stack at NCP plant shall
result in energy saving of 0.065 MMKCal / hr and
financial savings of ` 0.14 crore per annum.

(d) Total energy consumption and energy consumption
per unit of production as per Form ‘A’ attached
hereto:

B. TECHNOLOGY ABSORPTION
(e) Efforts made in technology absorption - as per Form

B given below:

Form B
Research and Development (R&D)
1. Specific areas in which the research and development

(R&D) is being carried out by the Company

(cid:1) Development/commercialization of a process for

propylene maximization in refinery.

(cid:1) Development of in-house additive for propylene

Reliance Industries Limited 101

maximization in refinery.

(cid:1) Development of highly active fluidized catalytic
cracking (FCC) catalyst for improved conversion.
(cid:1) Development of mesoporous zeolite to improve

product selectivity in FCC units.

(cid:1)

(cid:1) Development of process for improving BMCI (Bureau
of mining correlation index) of Clarified slurry oil.
Process for conversion of low value hydrocarbon
streams to higher value light olefins.
Removal of chlorides from hydrocarbon streams by a
new process.

(cid:1)

(cid:1) Development of offline component stream
characterization to predict, monitor and control
gasoline blending.

(cid:1) Development of online composition prediction and
composition based process models to plan, monitor,
and control.

(cid:1) Development of a process to maintain product quality
and optimize gasoline/ diesel blending based on
intermediates.

(cid:1) Development of technology to process cheaper and
heavier crudes to widen crude blend window in the
refinery.

(cid:1) Application of computational fluid dynamics (CFD)
studies for
trouble shooting and process
improvements in refineries and petrochemical plants.
(cid:1) Development of a new process for acidity reduction

of crude oil.

(cid:1) Development of mathematical models for vacuum gas

(cid:1)

oil hydrotreating processes.
Coker furnace studies to reduce refinery costs.
(cid:1) Development of polyolefin inorganic catalyst
precursor technology to improve yield and reduce
cost.

(cid:1) Development of catalyst technology for high
performance polypropylene homo and impact
copolymers grades.

(cid:1) Development of catalyst for producing ultra-high
molecular weight polyethylene and high density poly
ethylene grades.

(cid:1) Development of specialty polypropylene products.
Productivity improvement of polyolefins catalyst
systems.

(cid:1)

(cid:1) Development of novel routes for synthesis of organic

modifiers for polyolefins.

(cid:1) Application of computational analysis

102

Partnering India's new future. Sustainably.

high performance catalyst systems for olefin
polymerization.

(cid:1) Development of capability for coloured polyester

yarn.

(cid:1) Use of improved analytical method development for

(cid:1)

polyolefins catalyst systems and products.

Productivity enhancement for coarse and super-
coarse polyester filament yarn products.

(cid:1)

Process and technology development based on
in-house catalyst development for manufacturing
alpha olefins.

(cid:1) Development of anti-pilling polyester fibre, binder fibre

and UV stable polyester fibre.

(cid:1) Development of cobalt free polyethylene

(cid:1) Development of a new polypropylene grade for heat

terephthalate resin.

seal applications.

(cid:1) Development of new polypropylene grade for high

flow melt blown applications.

(cid:1)

Enhancement of product performance in recycled
polyethylene terephthalate.

(cid:1) Development of spin finishes for specialty polyester

(cid:1) Development of novel homogeneous catalysts and

products.

process for ethylene polymerization.

(cid:1)

Regeneration and alternate applications of spent
catalysts and adsorbents.

Synthesis and characterization of platinum nano-
particles and their deposition on silica/alumina
surface.

(cid:1) Development of superabsorbent polymers.

(cid:1) Development of specialty polyethylene products.

(cid:1) Development of microbial and photocatalytic

processes for effluent treatment.

(cid:1) Development of a catalytic process for production of

on purpose hexene-1 from ethylene.

(cid:1) Development of a process for chlorinated polyvinyl

chloride.

(cid:1) Development of a new generation paraffin

dehydrogenation catalyst.

(cid:1) Development of coke less cracking process.

(cid:1) Development of materials for catalytic applications.

(cid:1) Development of methanol to olefins conversion using

micro porous materials.

(cid:1) Development of self-healing elastomers.

(cid:1) Development of a novel catalyst system for 1,3-

butadiene.

(cid:1) Development of a more environmentally friendly
process for purified terepthalic acid manufacture.

(cid:1) Development of alternate polyester products for

stretch and comfort fabrics.

(cid:1) Development of hollow filaments for light weight and

insulation fabrics.

(cid:1) Development of alternate polyester products for

bonding application.

(cid:1) Development of extrusion blow moulding grade

polyethylene terephthalate.

(cid:1) Development of specialty polyester yarn replacing
other yarns such as viscose, nylon, cotton and
acrylics.

(cid:1) Development of polyethylene terephthalate bottles
for packaging oxygen sensitive foods and beverages.
(cid:1) Development of specialty yarns such as insect
repellant yarn, multifunctional yarn, and conducting
polyester yarn.

(cid:1)

Replacement of asbestos fibres with polyester.

(cid:1) Development of Gen-3 polyester packaging for
enhancing the shelf life of fruits and vegetables.

2. Benefits derived as a result of the above R&D

(cid:1)

Potential benefit of ` 30 crore per annum from high
conversion catalyst trial in refinery fluidized catalytic
cracking unit.
Potential savings of ` 18 crore per annum by rectifying
the root cause of polypropylene odor and increasing
coker LPG processing in propylene recovery unit.
Potential benefit of ` 60 crore per annum through
additional propylene recovery from fluidized catalytic
cracking (FCC) fuel gas.
Benefit of ` 7 crore per annum from replacement of
imported catalyst for polypropylene manufacturing
(based on in-house catalyst development).
Benefit of ` 12 crore per annum from replacement of
imported donors and development of new donors for
polypropylene manufacturing (based on in-house
catalyst development).
Benefit of ` 9 crore per annum from development of
new polypropylene grades for high end applications.
(cid:1) Development of 1-Hexene manufacturing based on

(cid:1)

Reliance Industries Limited 103

in-house developed technology for captive
consumption.
Potential benefits of ` 17 crore per annum from
polyester R&D projects.

(cid:1)

(cid:1) Development of a process for purified terephthalic

acid from inexpensive raw materials.

(cid:1) Development of technology for inorganic materials

from spent catalysts.

3. Future plan of action

(cid:1)

Creation of hydroprocessing related facilities and
process development.

(cid:1) Development of ‘New generation spinnerets’ for
productivity increase and functional enhancements.

(cid:1) Development of eco-friendly/green partially oriented

(cid:1) Development of a process for widening the crude

yarn.

window.

(cid:1) Application of high throughput testing facilities for
refinery catalyst development and evaluation.
(cid:1) Application of computational fluid dynamics studies
of plant equipment for reliability improvement.
(cid:1) Application of molecular characterization to crude and

refinery streams.

(cid:1) Development of technologies for value creation for

refinery streams.

(cid:1) Development of adsorbents and a process for CO2

capture from flue gas.

(cid:1) Development of sixth generation polypropylene

catalyst systems for specialty products.

(cid:1) Development of high efficient catalyst precursor

processes for polyolefins.

(cid:1) Advanced macro and micro structural studies of

polyolefins.

(cid:1) Application of high throughput testing facilities for

catalyst evaluation in polyolefins.

(cid:1) Development of high value products from catalyst

residue systems.

(cid:1) Development of low silver catalyst for ethylene

oxidation.

(cid:1) Development of alternative routes for production of

1,3-butadiene.

(cid:1) Development of a process for cokeless thermal

cracking of hydrocarbons.

(cid:1) Development of technology for biomass to value

added chemicals.

(cid:1) Development of novel materials for catalyst,
adsorbent, support and gas storage applications.
(cid:1) Utilization and recycle of spent catalyst, chemicals

and polymers etc.

(cid:1) Development of technology for ethane to value added

chemicals.

(cid:1) Development of technology for CO2 to value added

chemicals.

(cid:1) Development of technology for up-scaling of

moisture management yarns.

(cid:1) Development of anti-pilling polyester through

continuous polymerization route.

(cid:1) Development of technology for in-house black master

batch capacity expansion.

(cid:1) Development of technology to produce alkali

resistant polyester staple fiber.

(cid:1) Development of polyethylene terephthalate resin with
high glass transition temperature and high impact
strength.

(cid:1) Development of an extrusion blow moulding grade

polyethylene terephthalate resin.

(cid:1)

Improvement of sparkle / gloss in carpet fiber using
in-house developed catalyst.

(cid:1) Development of new spunlace fibres with special

attributes for value generation.

(cid:1) Development of antimony free polyester catalysts.

4. Expenditure on R & D

a) Capital
b) Revenue

Total

` crore

654
335

989

Total R & D expenditure is 0.3% of total Revenue
from Operations.

Technology absorption, adoption and innovation
1. Efforts, in brief, made towards technology absorption,

adoption and innovation

(cid:1)

Comparative evaluation of various technologies.

Revamp of vacuum distillation unit slopwax bed for
improving run length.

Study of equilibrium selectivity among olefins in
fluidized catalytic cracking process.

Critical review of design of internals in hydro
processing units.

104

Partnering India's new future. Sustainably.

(cid:1) Analysis of flow dynamics in a cyclone in FCC, using
basic performance equations and computational fluid
dynamics.

(cid:1) Analysis of minor component stripping process in a
distillation column using rigorous mass transfer
approach.

(cid:1) Modifications in refinery coker to improve quench

efficiency.

(cid:1)

Comparative evaluations of different designs of crude
preheat exchangers and identifying scope of
improvisation.

Revamp of coker fractionator to overcome
performance limitations.

Evaluation of performance of alumina for the purified
terepthalic acid plant at Hazira.

In-house production of Butene-1 catalyst.

(cid:1) Value addition to waste polypropylene powder.

(cid:1) Design and installation of a new N2O2 drier for moisture

and CO2 removal from air at Vadodara.

(cid:1) Adsorbent and process for chloride and moisture

removal of Freon-R123.

(cid:1) Adsorbent and process for para diethylbenzene

purification (oxygenates removal).

(cid:1)

Selection and pilot plant studies for alternative
catalyst systems for polyolefins.

Improvement and innovation in in-house developed
catalyst system process for higher efficiency.

Technical
manufacturing processes.

trouble shooting of polyolefin

Technology developed for stretch yarn with alternate
polyester.

Technology developed for hollow filaments.

(cid:1) New generation technology under development for
monofilament, industrial yarn and fully drawn yarn.

(cid:1)

In-house development of various simulation models
for polymerization and spinning process.

Polyester staple fiber based product to improve the
shelf life of fruits and vegetables in ambient storage
conditions.

(cid:1)

(cid:1) Development of easy dye-able polyester yarn for

various end uses.

(cid:1) Development of super micro denier polyester staple

fiber.

(cid:1)

Production of dope dyed polyester staple fiber.

(cid:1) Development of technology for low pill fiber and tow

in polyester.

(cid:1) Development of polyester staple fiber with high shrink

properties.

(cid:1)

Productivity increase initiatives in polyester.

Expansion of continuous polymerization based
cationic dyeable yarns and full dull yarns.

(cid:1) Development of alternate additives for polyester.

(cid:1)

Initiatives for improving quality of various products
in polyester manufacturing.

2. Benefits derived as a result of the above efforts

(cid:1) Development of basis for selection of fluidized
catalytic cracking technology and catalyst/additive.

(cid:1) Methodology developed for equipment selection and

performance evaluation in vacuum distillation unit.

(cid:1) Modified configuration of slopwax bed is being
implemented and is expected to increase the run
length.

(cid:1)

Factors to maximize propylene selectivity in fluidized
catalytic cracking were established.

(cid:1) Opportunities for improvement in flow distribution in

hydro processing units were identified.

(cid:1)

Factors that contribute to erosion problems in
fluidized catalytic cracking cyclone were understood.

(cid:1) Key operating parameters that would affect stripping

were identified and used as basis for design.

(cid:1) Quench efficiency was improved in coker.

(cid:1) Higher productivity of catalyst system and improved

production rate for polypropylene.

Low cost catalyst precursor for polyethylene.

Benefit of ` 4.5 crore by Revamp of dryer in N2O2 in
Vadodara.

Benefit of ` 0.6 crore by Freon drying at Hazira.

Reliance Industries Limited 105

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

1. 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
` 1,98,269 crore (US$ 38,972 million).
2. Total Foreign exchange earned and used

` crore
1,98,474

92,224

a. Total Foreign Exchange Earned

b. Total savings in Foreign

Exchange through products
manufactured by the
Company and deemed
exports
(US$ 18,128 million)

Subtotal (a+b)

c. Total Foreign Exchange used

2,90,698

2,64,317

(cid:1)

Benefit of ` 1.19 crore by production of Butene-1
catalyst.

Benefit of ` 0.36 crore by value addition to waste
polypropylene powder.

Potential benefits of ` 25 crore per annum from all
polyester technology projects.

Information regarding Imported Technology

Year of
import

2011-12

Status
implementation
/ absorption
Project Under
Implementation

2011-12

Project Under
Implementation

Product Technology

Italy

import
from
Polimeri
Styrene
butadiene Europa,
rubber
(SBR)
Project at
Hazira
Poly
JSR
butadiene Corporation,
rubber
(PBR )-III
Project at
Hazira

Japan

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 (` In Crores) #

Rate/Unit (`) #

b) Generation through captive power facilities

1) Through Steam Turbine/Generator

Units (Lacs)

KWH per unit of fuel

Total Cost (` In Crores)

Cost/Unit (`)

Current
Year

Previous
Year

3,760.66

3,887.53

170.58

4.54

150.95

3.88

52,605.28

52,193.98

5.66

3,609.07

6.86

5.45

2,141.79

4.10

106

Partnering India's new future. Sustainably.

Cont..

c) Own Generation

1) Through Diesel Generator

Units (Lacs)

KWH per unit of fuel

Fuel Cost/Unit (`)

2) Through Steam Turbine/Generator

Units (Lacs)

KWH per unit of fuel

Fuel Cost/Unit (`)

3) Through Wind Mill Turbine

Units (Lacs)

Purchased Fuels consumed
Furnace Oil
Quantity (K.Ltrs)
Total Cost (` In crores)
Average rate per Ltr. (`)

3 Diesel Oil

Quantity (K. Ltrs)
Total Cost (` In crores)
Average rate per Ltr. (`)

4 Others

(a) Gas

Quantity ( 1000 M3 )
Total Cost (` In crores)
Average rate per 1000M3 (`)

(b) Coal / Husk / Wood Fire

Quantity
Total Cost (` In crores)
Average rate per MT (`)

Internal Fuels consumed

5 Gas

Quantity ( 1000 M3 )

6 GT fuels

Quantity ( K.Ltrs )

# Excluding Demand Charges

Current
Year

Previous
Year

500.03

4.08

9.31

776.06

4.17

6.88

53,212.68

54,475.91

4.20

5.21

4.43

3.04

24.82

22.38

38,027.50
138.05
36.30

3,812.18
16.61
43.57

9,75,810.86
2,508.32
25,704.99

31,158.90
9.45
3,033.58

55,374.86
145.24
26.23

2,280.45
8.62
37.81

7,26,304.93
788.50
10,856.33

32,882.75
8.62
2,621.70

69,39,994.21

43,78,642.26

3,56,106.53

1,99,443.16

Reliance Industries Limited 107

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

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)

4,566
715
357
302
593
441
432
530
301
571
245
198
73
634
2,606
446

4,704
708
357
307
600
454
438
563
302
587
251
209
75
612
2,613
484

For and on behalf of the Board of Directors

Mukesh D. Ambani
Chairman and Managing Director

April 20, 2012

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 2012, 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.

2
2
13
0
-
-
-
-
2
87
-
29
3
-
-
-

1
2
13
0
8
-
-
-
1
81
-
5
1
-
-
-

-
-
-
-
0
2
0
0
0
-
-
-
-
0
3
(0)

-
-
-
-
1
5
2
2
0
-
-
-
-
16
11
(7)

461
80
84
14
538
79
34
15
54
26
73
309
75
491
91
(38)

473
88
92
12
306
66
31
17
61
48
74
366
78
506
79
(64)

In our opinion and to the best of our information and
according to the explanations given to us and based on
the representations made by the Directors and the
Management, we certify that the Company has complied
with the conditions of Corporate Governance as stipulated
in Clause 49 of the above-mentioned Listing Agreement.

We state that such compliance is neither an assurance as
to future viability of the Company nor of the efficiency or
effectiveness with which the management has conducted
the affairs of the Company.
For Chaturvedi & Shah For Deloitte Haskins & Sells For Rajendra & Co.
Chartered Accountants Chartered Accountants
(Registration No. 117366W)
(Registration No. 101720W)

Chartered Accountants
(Registration No. 108355W)

D. Chaturvedi
Partner
Membership No.: 5611 Membership No.: 31467

A. Siddharth
Partner

A. R. Shah
Partner
Membership No.:47166

Mumbai
April 20, 2012

108

Partnering India's new future. Sustainably.

Financial Statements & Notes

Reliance Industries Limited 109

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.
e) On the basis of written representations received
from the Directors as on March 31, 2012 and taken
on record by the Board of Directors, we report
that none of the Directors is disqualified as on
March 31, 2012 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:
in the case of the Balance Sheet, of the state
(i)
of affairs of the Company as at March 31,
2012;

(ii) in the case of the Statement of Profit and Loss,
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)

D. Chaturvedi
Partner
Membership No.: 5611 Membership No.: 31467

A. Siddharth
Partner

A. R. Shah
Partner
Membership No.:47166

Mumbai
Date : April 20, 2012

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,
2012, the Statement of Profit and Loss 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.

4. Further to our comments in the Annexure referred to

in paragraph 3 above, we report that:
a) We have obtained all the information and
explanations which to the best of our knowledge
and belief were necessary for the purposes of our
audit;
In our opinion, proper books of account, as
required by law, have been kept by the Company,
so far as appears from our examination of those
books;

c) The Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement dealt with by this report
are in agreement with the books of account;
In our opinion, the Balance Sheet, Statement of
Profit and Loss and Cash Flow Statement dealt

110

Partnering India's new future. Sustainably.

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.

c) 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 ` 10,254
crore and the year-end balance is ` 10,239 crore
(including interest free loan of ` 6,615 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.

c) The principal amounts are repayable over a period of
three to five years, while the interest is payable annually
at the discretion of the Company.

In respect of the said loans and interest thereon, there
are no overdue amounts.

e) 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.

(b) 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 ` 5,00,000 in
respect of each party during the year have been made
at prices which appear reasonable as per information
available with the Company.

6. According to the information and explanations given to us,
the Company has not accepted any 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.

8. We have broadly reviewed the cost records maintained by
the Company pursuant to the Companies (Cost Accounting
Records) Rules, 2011 prescribed by the Central
Government under Section 209(1)(d) of the Companies
Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have,
however, not made a detailed examination of the cost records
with a view to determine whether they are accurate or
complete.

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

Reliance Industries Limited 111

clause (xiii) of paragraph 4 of the Order are not applicable
to the Company.

14. The Company has maintained proper records of the
transactions and contracts in respect of dealing or trading
in shares, securities, debentures and other investments and
timely entries have been made therein. All shares, securities,
debentures and other investments have been held by the
Company in its own name.

15. The Company has given guarantees for loans taken by
Others from banks and financial institutions. According to
the information and explanations given to us, we are of the
opinion that the terms and conditions thereof are not prima
facie prejudicial to the interest of the Company.

16. The Company has raised new term loans during the year.
The term loans outstanding at the beginning of the year
and those raised during the year have been applied for the
purposes for which they were raised.

17. According to the information and explanations given to us
and on an overall examination of the Balance Sheet of the
Company, we are of the opinion that there are no funds
raised on short-term basis that have been used for long-
term investment.

18. The Company has not made any preferential allotment of
shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.

19. The Company has created securities / charges in respect of

secured debentures issued.

20. The Company has not raised any monies by way of public

issues during the year.

21.

In our opinion and according to the information and
explanations given to us, no material fraud on or by the
Company has been noticed or reported during the year.

For Chaturvedi & Shah For Deloitte Haskins & Sells For Rajendra & Co.
Chartered Accountants Chartered Accountants
(Registration No. 117366W)
(Registration No. 101720W)

Chartered Accountants
(Registration No. 108355W)

D. Chaturvedi
Partner
Membership No.: 5611 Membership No.: 31467

A. Siddharth
Partner

A. R. Shah
Partner
Membership No.:47166

Mumbai
Date : April 20, 2012

Annexure to Auditors’ Report
Referred to in Paragraph 3 of our report of even date

outstanding as at March 31, 2012 for a period of more
than six months from the date of becoming payable.
Amounts due and outstanding for a period exceeding
6 months as at March 31, 2012 to be credited to
Investor Education and Protection Fund of ` 9 crore,
which are held in abeyance due to pending legal cases,
have not been considered.

b) The disputed statutory dues aggregating ` 828 crore
that have not been deposited on account of disputed
matters pending before appropriate authorities are as
under:

Sr.
No

Name of
the Statute

Nature of
the Dues

Amount
(` in
crore)

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

1 9

104

4 0

2 6

398

1
240

Period to
which the
amount
relates
Various years
from 1995-96
to 2010-11
Various years
from 1991-92
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

Forum where
dispute is
pending

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

828

10. The Company does not have accumulated losses at the end
of the financial year. The Company has not incurred cash
losses during the financial year covered by the audit and in
the immediately preceding financial year.

11. Based on our audit procedures and according to the
information and explanations given to us, we are of the
opinion that the Company has not defaulted in repayment
of dues to financial institutions, banks and debenture
holders.

12.

In our opinion and according to the explanations given to
us and based on the information available, no loans and
advances have been granted by the Company on the basis
of security by way of pledge of shares, debentures and
other securities.

13.

In our opinion, the Company is not a chit fund / nidhi /
mutual benefit fund / society. Therefore, the provisions of

112

Partnering India's new future. Sustainably.

Reliance Industries Limited
Balance Sheet as at 31st March, 2012

Note

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

EQUITY AND LIABILITIES

Shareholders’ Funds
Share Capital
Reserves and Surplus

Share Application Money Pending Allotment

Non-Current Liabilities
Long Term Borrowings
Deferred Tax Liability (net)

Current Liabilities
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions

TOTAL

ASSETS

Non-Current Assets
Fixed Assets
Tangible Assets
Intangible Assets
Capital Work-in-Progress
Intangible Assets under Development

Non-Current Investments
Long Term Loans and Advances

Current Assets
Current Investments
Inventories
Trade Receivables
Cash and Bank Balances
Short Term Loans and Advances
Other Current Assets

1
2

3
4

5
6
7
8

9
9
9
9

10
11

12
13
14
15
16
17

TOTAL

Significant Accounting Policies
Notes on Financial Statements
As per our Report of even date

1 to 36

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 20, 2012

K. Sethuraman
Company Secretary

3,271
1,62,825

3,273
1,48,267

1,66,096
-

1,51,540
9

48,034
12,122

10,593
40,324
13,713
4,258

88,001
25,722
3,695
4,059

26,979
14,340

27,029
35,955
18,424
39,598
11,089
249

60,156

62,686

51,124
11,562

12,304
34,844
18,735
4,601

68,888

2,95,140

70,484

2,84,719

93,084
49,623
2,759
9,469

23,209
10,698

1,62,796

1,88,842

14,443
29,825
17,442
27,135
6,833
199

1,32,344

2,95,140

95,877

2,84,719

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 } Directors

Reliance Industries Limited
Statement of Profit and Loss for the year ended 31st March, 2012

Reliance Industries Limited 113

Note

2011-12

(` in crore)
2010-11

INCOME

Revenue from Operations
Other Income

Total Revenue

EXPENDITURE :
Cost of Materials Consumed
Purchases of Stock-in-Trade
Changes in Inventories of Finished Goods,
Stock-in-Process and Stock-in-Trade
Employee Benefits Expense
Finance Costs
Depreciation and Amortisation Expense
Other Expenses

Total Expenses

Profit Before Tax
Tax Expenses
Current Tax
Deferred Tax

Profit for the year

18
19

21
22
23
24
25

Earnings per equity share of face value of ` 10 each
Basic and Diluted (in `)
Significant Accounting Policies
Notes on Financial Statements

1 to 36

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 20, 2012

K. Sethuraman
Company Secretary

3,29,904
6,192

3,36,096

2,74,814
1,441

(872)
2,862
2,667
11,394
18,040

3,10,346

25,750

5,150
560

20,040

61.21

2,48,170
3,052

2,51,222

1,93,234
1,464

(3,243)
2,624
2,328
13,608
15,965

2,25,980

25,242

4,320
636

20,286

62.00

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 } Directors

114

Partnering India's new future. Sustainably.

Reliance Industries Limited
Cash Flow Statement for the year 2011-12

CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit before tax as per Profit and Loss Account

25,750

25,242

2011-12

(` in crore)

2010-11

Adjusted for:

Net Prior Year Adjustments

Loss on Sale / Discard of Assets (net)

Depreciation and Amortisation Expense

Transferred from Revaluation Reserve

Effect of Exchange Rate Change

Net gain on Sale of Investments

Dividend Income

Interest Income

Finance Costs

Operating Profit before Working Capital Changes

Adjusted for:

Trade and Other Receivables

Inventories

Trade and Other Payables

Cash Generated from Operations

Net Prior Year Adjustments

Taxes Paid

Net Cash from Operating Activities

CASH FLOW FROM INVESTING ACTIVITIES:

Purchase of Fixed Assets

Sale of Fixed Assets / Transfer of Participating Interest

Advance for Transfer of Participating Interest

Purchase of Investments

Sale of Investments

Movement in Loans and Advances

Interest Income

Dividend Income

Net Cash (used in) Investing Activities

13,734

(2,340)

801

(1,635)

(10)

(4,414)

2,667

(516)

(6,130)

3,876

8,825

34,575

(2,770)

31,805

(1)

(4,830)

26,974

(8,008)

23,245

(3,32,438)

3,15,388

(3,126)

1,883

(3,046)

16,241

(2,633)

(834)

(340)

(2)

(2,621)

2,328

(6,948)

(2,844)

9,861

12,176

37,418

37,487

(3)

(4,204)

33,280

(12,366)

242

9,004

(2,57,541)

2,43,474

(5,477)

2,329

(20,333)

Cash Flow Statement for the year 2011-12 (Contd.)

CASH FLOW FROM FINANCING ACTIVITIES:

Proceeds from Issue of Share Capital

Buyback of Equity Shares

Proceeds from Long Term Borrowings

Repayment of Long Term Borrowings

Short Term Borrowings (net)

Dividends Paid (including dividend distribution tax)

Interest Paid

Net Cash (used in) / from Financing Activities

Net Increase in Cash and Cash Equivalents

Opening Balance of Cash and Cash Equivalents

Closing Balance of Cash and Cash Equivalents

Note :

Reliance Industries Limited 115

2011-12

(279)

5,229

(8,456)

(2,111)

(2,772)

(3,163)

(11,465)

12,463

27,135

39,598

(` in crore)
2010-11

193

4,921

(5,589)

6,411

(2,431)

(2,780)

725

13,672

13,463

27,135

Share application money given to Subsidiary / Associate aggregating to ` 935 crore (Previous Year ` 17 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 20, 2012

K. Sethuraman
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 } Directors

116

Partnering India's new future. Sustainably.

SIGNIFICANT ACCOUNTING POLICIES

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.

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.

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.

Leased Assets

Operating Leases: Rentals are expensed with reference to lease terms and other considerations.

(i)

(ii)

Finance leases prior to 1st April, 2001: Rentals are expensed with reference to lease terms and other
considerations.

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.

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.

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.

Depreciation and Amortisation

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 the period of lease; technical know how is amortised over the useful life of the underlying assets

SIGNIFICANT ACCOUNTING POLICIES

Reliance Industries Limited 117

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.

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.
Non monetary foreign currency items are carried at cost.

(c)

(d)

(e)

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.

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.

Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection.
Revenue from operations 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.

118

Partnering India's new future. Sustainably.

SIGNIFICANT ACCOUNTING POLICIES

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.

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.
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.
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.

(ii)

(iii)

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.

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.

Financial Derivatives and Commodity Hedging Transactions
In respect of derivative contracts, premium paid, gains / losses on settlement and losses on restatement 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.

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.

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.

Premium on Redemption of Bonds / Debentures
Premium on redemption of bonds / debentures, net of tax impact, are adjusted against the Securities Premium
Account.

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 Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 119

The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.

SHARE CAPITAL

Authorised Share Capital:
500,00,00,000 Equity Shares of ` 10 each

(500,00,00,000)

100,00,00,000 Preference Shares of ` 10 each

(100,00,00,000)

Issued, Subscribed and Paid up:
327,10,59,340 Equity Shares of ` 10 each fully

(327,33,74,008) paid up

Less: Calls in arrears - by others
[` 3,653 (Previous Year ` 3,653)]

TOTAL

As at
31st March, 2012

As at
31st March, 2011

(` in crore)

5,000

1,000

6,000

3,271

5,000

1,000

6,000

3,273

1.1 162,67,93,078 Shares out of the issued, subscribed and paid up share capital were allotted as Bonus Shares in the last five

(162,67,93,078) years by capitalisation of Securities Premium and Reserves.

1.2

12,93,93,183 Shares out of the issued, subscribed and paid up share capital were allotted in the last five years pursuant

(12,93,93,183)

to the various Schemes of amalgamation without payments being received in cash.

1.3

45,04,27,345 Shares out of the issued, subscribed and paid up share capital were allotted on conversion / surrender of
(45,04,27,345) Debentures and Bonds, conversion of Term Loans, exercise of warrants, against Global Depository Shares

(GDS) and re-issue of forfeited equity shares, since inception.

1.4

17,18,83,624 Shares out of the issued, subscribed and paid up share capital held by Subsidiaries do not have Voting Rights

(17,18,83,624) and are not eligible for Bonus Shares
1.5 The details of Shareholders holding more than 5% shares :

Name of the Shareholder

Life Insurance Corporation of India

1.6 The reconciliation of the number of shares outstanding is set out below :

Particulars

Equity Shares at the beginning of the year
Add : Shares issued on exercise of Employee Stock Options
Less : Shares cancelled on buy back of Equity Shares
Equity Shares at the end of the year

As at
31st March, 2012

As at
31st March, 2011

No. of Shares % held No. of Shares % held
7.10
23,19,67,257

7.09 23,24,95,218

As at
31st March, 2012
No. of Shares
327,33,74,008
13,48,763
36,63,431
327,10,59,340

As at
31st March, 2011
No. of Shares
327,03,74,360
29,99,648
-
327,33,74,008

1.7 The Company has reserved issuance of 13,39,30,481 (Previous year 13,52,79,244) Equity Shares of ` 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 68,817 [Previous year 35,200] Options to the eligible employees which includes 4,100 options at a price
of ` 972/- per option, 18,000 options at a price of ` 871/- per option, 23,717 options at a price of ` 847 per option, 15,000
options at a price of ` 765 per option and 8,000 options at a price of ` 715 per option (Previous year, 16,000 options at a price
of ` 995 per option and 19,200 options at a price of ` 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.

1.8 The Board of Directors of the Company approved the buyback of upto 12 crore fully paid up equity shares of
` 10/- each, at a price not exceeding ` 870/- payable in cash, upto an aggregate amount not exceeding ` 10,440 crore from the open
market through Stock Exchange(s). During the year, the Company has bought back and extinguished 36,63,431 Equity Shares of
` 10/- each.

120

Partnering India's new future. Sustainably.

Notes on Financial Statements for the Year ended 31st March, 2012

RESERVES AND SURPLUS

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

Revaluation Reserve
As per last Balance Sheet
Less: Transferred to Profit and Loss Account (Refer Note No. 9.9)
Less: Utilised on Demerger Adjustments

5,467
2,340
-

Capital Reserve
As per last Balance Sheet

Capital Redemption Reserve
As per last Balance Sheet
Add : Transferred from Profit and Loss Account on

buy back of Equity Shares

Securities Premium Reserve
As per last Balance Sheet
Add : On issue of shares

Less: On Redemption of Debentures/Bonds
Less : On buy back of Equity Shares

Less: Calls in arrears - by others
[` 2,21,548 (Previous Year ` 2,21,548)]

Debentures Redemption Reserve
As per last Balance Sheet

General Reserve*
As per last Balance Sheet
Add: Transferred from Profit and Loss Account

Profit and Loss Account
As per last Balance Sheet
Add: Profit for the year

Less: Appropriations
Transferred to General Reserve
Transferred to Capital Redemption Reserve on buy back
of Equity Shares
Proposed Dividend on Equity Shares
[Dividend per Share ` 8.5/- (Previous year ` 8/-)]
Tax on Dividend

TOTAL

50,878
85

50,963
11
275

50,677
-

84,000
16,000

6,514
20,040
26,554

16,000
4

2,531

410

3,127

291

8,804
2,633
704

5,467

291

50,689
189

50,878
-
-

50,878
-

68,000
16,000

50,878

1,117

50,677

1,117

1,00,000

84,000

5,000
20,286
25,286

16,000
-

2,385

387

7,609

1,62,825

6,514

1,48,267

* Cumulative amount withdrawn on account of Depreciation on Revaluation is ` 2,563 crore.

Notes on Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 121

LONG TERM BORROWINGS

Secured

Non Convertible Debentures

Long Term Maturities of Finance Lease Obligations
(Refer Note No. 9.7)

Unsecured

Bonds

Term Loans- from banks

Deferred payment liabilities

TOTAL

As at
31st March, 2012

(` in crore)

As at

31st March, 2011

Current

Non
Current

Current

6,024

3,044

168

9,353

188

655

6,192

3,064

9,541

673

4,564

3,976

37,269

6,753

37,595

3,499

41,842

6,756

41,583

48,034

9,820

51,124

3,502

4,175

3.1 Non Convertible Debentures referred above to the extent of:

` 1,593 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.

` 5,000 crore are secured by way of first mortgage / charge on the immovable properties situated at Jamnagar
Complex (other than SEZ unit) of the Company.

` 1,720 crore are secured by way of first mortgage / charge on all the properties situated at Hazira Complex
and at Patalganga Complex of the Company.

` 110 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.

` 50 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.

` 44 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.

` 51 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.

` 500 crore are secured by way of first mortgage / charge on the immovable properties situated at Jamnagar
Complex (SEZ unit) of the Company.

122

Partnering India's new future. Sustainably.

Notes on Financial Statements for the Year ended 31st March, 2012

3.2 Maturity profile and Rate of interest of Non Convertible Debentures are as set out below :

Rate of
Interest
6.25%
8.75%
9.25%
10.75%
11.45%
11.90%
Zero Coupon
Debentures

2013-14
133
-
250
-
1,224
2,500
75

2014-15
133
-
250
-
-
-
26

Maturity Profile

2015-16
133
-
-
-
-
-
31

2016-17
133
-
-
-
-
-
-

2017-18
133
-
-
-
-
-
-

3.3

Finance Lease obligations are secured against leased assets.

3.4 Maturity profile and Rate of interest of Bonds are as set out below :

Rate of
Interest
2.86%
6.21%
6.24%
6.34%
6.51%
6.61%
7.63%
8.25%
9.38%
10.25%
10.38%
10.50%

2015-16
1,011
-
-
-
-
-
-
-
-
-
-
-

2016-17
-
254
824
-
662
-
-
-
-
-
332
-

Maturity Profile

2018-19
-
-
-
193
-
865
-
-
-
-
-
-

2026-27
-
-
-
-
-
-
-
173
112
-
-
-

2027-28
-
-
-
-
-
-
26
-
-
-
-
-

3.5 Maturity Profile of Unsecured Term Loans are as set out below :

2018-19
133
-
-
370
-
-
-

2046-47
-
-
-
-
-
-
-
-
-
-
-
49

(` in crore)

2020-21
-
500
-
-
-
-
-

(` in crore)

2096-97
-
-
-
-
-
-
-
-
-
63
-
-

(` in crore)

1-2 years
12,920

Maturity Profile

2-3 years
3,418

3-4 years
5,926

Beyond 4 years
15,005

Term Loans- from banks

DEFERRED TAX LIABILITY (Net)

Deferred Tax Liability
Related to fixed assets
Deferred Tax Assets
Disallowances under the Income Tax Act, 1961

TOTAL

As at
31st March, 2012

(` in crore)

As at
31st March, 2011

12,207

12,122

11,743

181

11,562

Notes on Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 123

SHORT TERM BORROWINGS

Secured
Working Capital Loans
From Banks
Foreign Currency Loans
Rupee Loans

Unsecured
Other Loans and Advances
From Banks
Foreign Currency Loans - Buyers Credit
Rupee Loans

TOTAL

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

738
19

312
251

757

563

9,736
100

11,741
-

9,836

10,593

11,741

12,304

5.1 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.

5.2 Other Loans and Advances from banks include commercial paper of ` NIL (Previous Year ` NIL). Maximum balance

outstanding at any time during the year being ` NIL (Previous Year ` 4,825 crore).

TRADE PAYABLES

Micro, Small and Medium Enterprises
Others
TOTAL

As at
31st March, 2012
33
40,291
40,324

(` in crore)
As at
31st March, 2011
8
34,836
34,844

6.1

The details of amounts outstanding to Micro, Small and Medium Enterprises based on available information with
the Company is as under:

Particulars

Principal amount due and remaining unpaid
Interest due on above and the unpaid interest
Interest paid
Payment made beyond the appointed day during the year
Interest due and payable for the period of delay
Interest accrued and remaining unpaid
Amount of further interest remaining due and payable
in succeeding years

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

-
-
-
-
-
-

124

Partnering India's new future. Sustainably.

Notes on Financial Statements for the Year ended 31st March, 2012

OTHER CURRENT LIABILITIES

(` in crore)

As at
31st March, 2012

As at
31st March, 2011

Current maturities of long term debt (Refer Note No. 3)

Current maturities of finance lease obligations
(Refer Note No. 3 and 9.7)

Interest accrued but not due on borrowings

Unclaimed Dividends #

Application money received and due for refund #

Unpaid matured debentures and interest accrued thereon #

Creditors for Capital Expenditure

Advance for Transfer of Participating Interest

Other Payables *

TOTAL

9,800

424

129

1,189

2,149

13,713

4,157

491

111

2,777

9,004

2,175

18,735

* Includes statutory dues, security deposit and advance from customers.

# These figures do not include any amounts, due and outstanding, to be credited to Investor Education and
Protection Fund except ` 9 crore (Previous Year ` 8 crore) which is held in abeyance due to legal cases pending.

SHORT TERM PROVISIONS

Provisions for Superannuation/Gratuity/Leave Encashment
(Refer Note No. 22.1)

Proposed Dividend

Tax on Dividend

Provision for Wealth Tax

Other Provisions #

TOTAL

(` in crore)

As at
31st March, 2012

As at
31st March, 2011

191

2,531

410

1,047

4,258

246

2,385

387

1,519

4,601

# 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, 2011 of ` 345 crore as per the estimated pattern of despatches.
During the year, ` 345 crore was utilised for clearance of goods. Provision recognised under this class for the
year is ` 326 crore which is outstanding as on 31st March, 2012. Actual outflow is expected in the next financial
year. The Company had recognised customs duty liability on goods imported under advance license of ` 1,135
crore as at 31st March, 2011. During the year, further provision of ` 1,243 crore was made and sum of ` 1,674 crore
was reversed on fulfilment of export obligation. Closing balance on this account as at 31st March, 2012 is ` 704
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 seriously prejudice the position of the Company.

Notes on Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 125

9. FIXED ASSETS

(` in crore)

Description

Gross Block

Depreciation / Amortisation

Net Block

As at
01-04-2011

Additions

Deductions/
Adjustments

As at

31-03-2012 01-04-2011

For the
Year

Deductions/
Adjustments 31-03-2012

Upto

As at
31-03-2012

As at
31-03-2011

TANGIBLE ASSETS :

OWN ASSETS :

Leasehold Land

Freehold Land

Buildings

Plant & Machinery

Electrical Installations

Equipments $

Furniture & Fixtures

Vehicles

Ships

Aircrafts & Helicopters

Sub-Total

LEASED ASSETS :

Plant & Machinery

Ships

Sub-Total

Total (A)

INTANGIBLE ASSETS : *

Technical Knowhow fees

Software

Development Rights

Others

Total (B)

Total (A + B)

Previous Year

1,557

1,162

7,593

1,32,367

3,513

6,286

519

284

386

221

3,147

179

521

1,577

1,221

7,792

1,34,993

3,582

6,459

5 2 4

3 1 6

3 8 6

4 6

187

2,298

54,965

1,393

1,247

304

156

240

272

7,820

172

312

2 4 2

2,568

1,335

1,221

5,224

466

62,319

72,674

1,564

1,556

3 3 6

1 7 1

2 5 4

2 3

2,018

4,903

1 8 8

1 4 5

1 3 2

2 3

1,370

1,162

5,295

77,402

2,120

5,039

215

128

146

1,53,735

3,781

6 2 0

1,56,896

60,818

8,725

5 1 0

69,033

87,863

92,917

318

3 2 8

3 1 8

1 0

3 2 8

151

1 6 1

2 9

1 8 0

1 0

1 9 0

1 3 8

167

1 6 7

1,54,063

3,781

6 2 0

1,57,224

60,979

8,754

5 1 0

69,223

88,001

93,084

3,211

486

54,459

9,034

67,190

192

8,841

165

9,200

28,121

3,403

4 8 8

35,179

9,199

48,269

2,21,253

12,981

28,741

2,05,493

2,15,865

5,963

576

2,21,252

1,565

412

14,828

762

17,567

78,546

62,605

160

4,697

107

4,980

13,734

16,241

5 1 0

301

1,725

4 2 8

19,525

8 6 9

22,547

91,770

78,545

1,678

6 0

15,654

8,330

25,722

1,646

39,631

8,272

49,623

1,13,723

1,42,707

3,695

4,059

2,759

9,469

Capital Work-in-Progress

Intangible Assets under Development

$
Includes Office Equipments
* Other than internally generated

9.1 Leasehold Land includes ` 203 crore (Previous Year ` 203 crore) in respect of which lease-deeds are pending

execution.

9.2 Buildings include :

i) Cost of shares in Co-operative Housing Societies ` 1 crore (Previous Year ` 1 crore).
ii) ` 5 crore (Previous Year ` 5 crore) in respect of which conveyance is pending.
iii) ` 93 crore (Previous Year ` 93 crore) in shares of Companies / Societies with right to hold and use certain area of

Buildings.

9.3 Intangible assets - Others include :

ii) ` 8,387 crore (Previous Year ` 8,387 crore) in preference shares of subsidiaries and lease premium paid with right

to hold and use Land and Buildings.

126

Partnering India's new future. Sustainably.

Notes on Financial Statements for the Year ended 31st March, 2012

9.4

Capital Work-in-Progress and Intangible Assets under development include :
i)
ii)

` 2,320 crore (Previous Year ` 1,886 crore) on account of project development expenditure.
` 933 crore (Previous Year ` 666 crore) on account of cost of construction materials at site.
9.5 Gross Block includes ` 12,901 crore added on revaluation of Building, Plant & Machinery and Equipments as at

01.01.2009 based on reports issued by international valuers.

9.6 Additions in Plant and Machinery, Intangible Assets - Development Rights and Intangible Assets under
development includes ` 7,558 crore (net loss) [Previous Year ` 121 crore (net loss)] on account of exchange
difference during the year.
i)

In respect of Fixed Assets acquired on finance lease on or after 1st April, 2001, the minimum lease rentals
outstanding as on 31st March, 2012 are as follows:

9.7

Total Minimum
Lease Payments
outstanding
As at 31st March
2011
2012
36
36
146
146

Future interest
on Outstanding
Lease Payments

2011-12
16
44

2010-11
18
53

(` in crore)

Present value of
Minimum
Lease Payments
As at 31st March
2011
18
93

2012
20
102

255

110

292

188

206

Within one year
Later than one year and not later
than five years
Later than five years

Total

ii)

General Description of Lease terms:
(a) Lease rentals are charged on the basis of agreed terms.
(b) Assets are taken on lease over a period of 5 to 10 years.

9.8

Project Development Expenditure
(in respect of Projects up to 31st March, 2012, included under Capital work-in-progress and Intangible Assets
under development)

Opening Balance
Add: Transferred from Profit and Loss Account

(Refer Note No. 25)
Interest Capitalised

Less: Project Development Expenses Capitalised during the year

Closing Balance

2011-12
1,886

(` in crore)
2010-11
1,453

37
430

30
474

467

2,353
33

2,320

504

1,957
71

1,886

9.9

The Gross Block of Fixed Assets includes ` 38,122 crore (Previous Year ` 38,122 crore) on account of revaluation
of Fixed Assets carried out since inception. Consequent to the said revaluation there is an additional charge of
depreciation of ` 2,340 crore (Previous Year ` 2,633 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.

Notes on Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 127

10. NON-CURRENT INVESTMENTS

(Long Term Investments)

As at
31st March, 2012

(` in crore)

As at

31st March, 2011

Trade Investments

In Equity Shares - Unquoted, fully paid up

1,00,00,000 Petronet India Limited of ` 10 each

(1,00,00,000)

In Equity Shares of Associate Companies -
Unquoted, fully paid up

64,29,20,000 Gujarat Chemicals Port Terminal Company

(64,29,20,000) Limited of ` 1 each

62,63,125 Indian Vaccines Corporation Limited

(62,63,125) of ` 10 each

11,08,500 Reliance Europe Limited of Sterling

(11,08,500) Pound 1 each

26,00,000 Reliance Utilities and Power Private
(19,90,000) Limited Class 'A' shares of ` 1 each

[` 19,90,000 (Previous Year ` 19,90,000)]

26,00,000 Reliance Utilities Private Limited

(20,50,000) Class 'A' shares of ` 1 each

[` 20,50,000 (Previous Year ` 20,50,000)]

In Preference Shares of Associate Company -
Unquoted, fully paid up

50,00,00,000 9% Non-Cumulative Redeemable Preference

(50,00,00,000) Shares of Reliance Gas Transportation

Infrastructure Limited of ` 10 each

Total Trade Investments (A)

Other Investments

In Equity Shares of Associate Company -
Quoted, fully paid up

68,60,064 Reliance Industrial Infrastructure Limited

(68,60,064) of ` 10 each

In Equity Shares of Associate Company -
Unquoted, fully paid up

22,500 Reliance LNG Limited of ` 10 each

(22,500)

[` 2,25,000 (Previous Year ` 2,25,000)]

2,000

2,079

128

Partnering India's new future. Sustainably.

Notes on Financial Statements for the Year ended 31st March, 2012

In Equity Shares of Subsidiary Companies -
Unquoted, fully paid up

4,79,76,90,000 Infotel Broadband Services Limited
(51,96,90,000) of `10 each

1,76,200 Reliance Exploration & Production DMCC

(1,76,200) of AED 1000 each

- Reliance Exploration & Production
(33,65,75,000) Mauritius Limited of USD 1 each

2,00,000 Reliance Global Business B.V.

(2,00,000) of Euro 0.01 each

[` 1,25,400 (Previous Year ` 1,25,400)]

14,75,04,400 Reliance Industrial Investments and

(14,75,04,400) Holdings Limited of `10 each

42,450 Reliance Industries (Middle East)

(42,450) DMCC of AED 1000 each

10,00,00,000 Reliance Jamnagar Infrastructure Limited

(10,00,00,000) of ` 10 each

- Reliance Oil & Gas Mauritius Limited

(50,000) of USD 1 each

[` NIL (Previous Year ` 23,27,000)]

522,00,00,000 Reliance Retail Limited of `10 each
(339,00,00,000)

20,20,200 Reliance Strategic Investments Limited

(20,20,200) of ` 10 each

26,91,150 Reliance Ventures Limited of ` 10 each

(26,91,150)

59,00,001 RIL (Australia) Pty Limited of Aus $ 1 each

(55,00,001)

50,000 Reliance Energy Generation and Distribution

(-) Limited of ` 10 each

[` 5,00,000 (Previous Year ` NIL)]

In Equity Shares of Subsidiary Companies -
Unquoted, partly paid up

- Reliance Retail Limited of ` 10 each

(610,00,00,000)

(` 3 each paid up)

Infotel Broadband Services Limited

(427,80,00,000) of `10 each (` 8.50 each paid up)

As at
31st March, 2012

(` in crore)
As at

31st March, 2011

4,798

211

148

100

5,220

2,351

520

211

1,554

148

100

3,390

2,351

12,898

8,342

1,830

3,636

5,466

12,914

13,824

Notes on Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 129

As at
31st March, 2012

(` in crore)
As at

31st March, 2011

In Preference Shares of Subsidiary Companies -
Unquoted, fully paid up
660,77,27,511 Reliance Global Business B.V. 'A'
(660,77,27,511) Class Shares of Euro 0.01 each

4,02,800 9% Non Cumulative Compulsorily Convertible

(4,02,800) Preference Shares of Reliance Strategic

Investments Limited of ` 1 each
3,54,156 5% Non Cumulative Compulsorily Convertible

(3,54,156) Preference Shares of Reliance Industries
(Middle East) DMCC of AED 1000 each

24,82,316 5% Non Cumulative Compulsorily Convertible
(20,62,316) Preference Shares of Reliance Exploration &

Production DMCC of AED 1000 each

18,50,000 10% Non-Cumulative Optionally Convertible

(18,50,000) Preference Shares of Reliance Jamnagar

Infrastructure Limited of ` 10 each

62,000 Reliance Netherlands B.V. Class 'A' Shares of Euro

( 62,000) 1 each [` 37,57,820 (Previous Year ` 37,57,820)]

- 5% Non-Cumulative Compulsorily Convertible

(1,46,500) Preference Shares of Reliance Exploration &

Production Mauritius Limited of USD 1000 each

- 5% Non-Cumulative Compulsorily Convertible

(1,37,622) Preference Shares of Reliance Oil & Gas

258,00,00,000

Mauritius Limited of USD 1000 each
9% Cumulative Optionally Convertible Preference

(-) Shares of Reliance Retail Limited of ` 10 each

In Preference Shares of Subsidiary Company -
Unquoted, partly paid up

1,37,000 Reliance Netherlands B.V. Class 'A'

(1,37,000) Shares of Euro 1 each (Euro 0.60 each paid up)

In Debentures of Subsidiary Companies - Unquoted, Fully paid up

2,79,90,000 0% Unsecured Convertible Debentures
(2,79,90,000) of Reliance Industrial Investments and

Holdings Limited of ` 100 each

8,83,143 0% Unsecured Convertible Redeemable

(8,83,143) Debentures of Reliance Industrial Investments

and Holdings Limited of ` 5000 each

In Government Securities-Unquoted

6 Years National Savings Certificate
(Deposited with Sales Tax Department
and other Government Authorities )
[` 2,43,420 (Previous Year ` 2,66,420)]

426

113

474

3,121

925

2,580

7,639

280

442

426

113

474

2,563

925

653

614

5,768

7,640

5,769

280

442

722

130

Partnering India's new future. Sustainably.

Notes on Financial Statements for the Year ended 31st March, 2012

As at
31st March, 2012

(` in crore)
As at

31st March, 2011

In Mutual Fund - Quoted fully paid up
Face Value ` 10 each

5,00,00,000 Axis Fixed Term Plan - (Series 21/22) - Growth

(-)

47,00,00,000 Birla Sunlife Fixed Term Plan -
(Series ES/EV/EY/FC) - Growth

(-)

40,50,00,000 DSP Blackrock Fixed Maturity Plan -

(15,00,00,000)

(Series 18/37/38/43) - Growth

20,30,00,000 DWS Fixed Maturity Plan -
(Series 6/7/9/10) - Growth

(-)

54,70,00,000 HDFC Fixed Maturity Plan -

(17,50,00,000)

(Series XVI/XXI) - Growth

4,50,00,000 HSBC Fixed Term Plan - Series 86 - Growth

(-)

71,50,00,000 ICICI Prudential Fixed Maturity Plan - Cumulative
(3,00,00,000)

(Series 62/63/54)

19,20,00,000 IDFC Fixed Maturity Plan - (Series 7/8/65) - Growth

(-)

3,50,00,000 India Bulls Fixed Maturity Plan - Growth

(-)

15,00,00,000 JP Morgan Fixed Maturity Plan - Series VI - Growth

(-)

27,00,00,000 Kotak Fixed Maturity Plan - (Series 76/80/82) - Growth

(-)

3,50,00,000 LIC Nomura MF Fixed Maturity Plan -

(-) Series 52 - Growth

17,30,00,000 Religare Fixed Maturity Plan -

(-)

(Series XIII/XIV) - Growth

16,00,00,000 SBI Debt Fund - (Series 11/12/13) - Growth

(40,00,00,000)

4,00,00,000 Sundaram Fixed Term Plan - Growth

(-)

13,50,00,000 Tata Fixed Maturity Plan - (Series 39/40) - Growth

(-)

- Canara Robeco Fixed Maturity Plan -

(6,00,00,000) Series 6 - Growth Plan

Total Other Investments (B)

Total Non Current Investments (A + B)

Aggregate amount of quoted investments

Market Value of quoted investments

Aggregate amount of unquoted investments

470

405

203

547

715

192

150

270

173

160

134

150

175

400

3,624

24,900

26,979

3,640

3,945

23,339

815

21,130

23,209

831

1,249

22,378

Notes on Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 131

11. LONG TERM LOANS AND ADVANCES

(Unsecured and Considered Good)

Capital Advances #
Deposits with Related parties (Refer Note No. 30)
Loans and Advances to Related Parties (Refer Note No. 30)
Advance Income Tax (Net of Provision)
Other Loans and Advances*
TOTAL

As at
31st March, 2012
1,190
1,741
10,243
1,100
66
14,340

(` in crore)

As at
31st March, 2011
591
1,699
7,108
1,229
71
10,698

*Includes Loans to Employees.
# Includes ` 42 crore (Previous Year ` NIL) to Reliance Haryana SEZ Limited.

11.1 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.

1. Reliance Industrial Investments and Holdings Limited*
2. Reliance Ventures Limited
3. Reliance Strategic Investments Limited
4. Reliance Retail Limited
5. Gapco Tanzania Limited
6. Reliance Exploration & Production DMCC
7. Gujarat Chemicals Port Terminal Company Limited

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate

(` in crore)
As at 31st As at 31st Maximum
March, 2012 March, 2011 Balance
during the
year
9,622
778
1,917
632
84
9
42

9,622
-
-
617
-
-
-

6,997
-
-
-
84
8
25

* Excluding Debentures of ` 722 crore (Previous Year ` 722 crore)
(a) Loans and Advances shown above, fall under the category of ‘Long Term Loans & Advances' in nature of Loans and are

re-payable within 3 to 5 years.

(b) All the above loans and advances are interest bearing except for an amount of ` 6,615 crore paid to Reliance Industrial

Investments and Holdings Limited.

(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 Judicature at Bombay and Gujarat and certain subsequent
inter se transfer of shares.

Sr No. Name of the Company
1.
2.

*Reliance Aromatics and Petrochemicals Limited
*Reliance Energy and Project Development Limited

No. of Shares
2,98,89,898
20,58,000

(` in crore)
Amount
274
303

(ii) Investment by Reliance Industrial Investments and Holdings Limited in subsidiaries

In Equity Shares :
Sr No. Name of the Company
1.
2.
3.
4.

Reliance Commercial Land & Infrastructure Limited
Reliance Global Business B.V.
Reliance Gas Corporation Limited
Reliance Universal Enterprises Limited

No. of Shares
4,30,10,000
18,00,000
50,000
38,55,000

132

Partnering India's new future. Sustainably.

Notes on Financial Statements for the Year ended 31st March, 2012

Sr No. Name of the Company

No. of Shares

5.
6.
7.
8.
9.
10.
11.
12.
13.

Indiawin Sports Private Limited
Reliance Corporate Services Limited
Reliance Industries Investment and Holding Limited
Reliance Security Solutions Limited
Mark Project Services Private Limited
Reliance One Enterprises Limited
GenNext Innovation Ventures Limited
Reliance Commercial Associates Limited
Reliance Sibur Elastomers Private Limited

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 Ventures Limited in subsidiaries

In Equity Shares :
Sr No. Name of the Company
1.

Reliance Haryana SEZ Limited

(iv) Investment by Reliance Strategic Investments Limited in subsidiaries

In Equity Shares :
Sr No. Name of the Company
1.
2.
3.

Reliance Global Commercial Limited
Reliance Universal Commercial Limited
Reliance Strategic (Mauritius) Limited

In Preference Shares :
Sr No. Name of the Company
1.

Reliance Polymers (India) Limited

(v)

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

(vi) Investment by Reliance Retail Limited in Subsidiaries

In Equity Shares:
Sr No. Name of the Company
Reliance Brands Limited
1.
Reliance Fresh Limited
2.
Reliance Office Solutions Private Limited
3.
Reliance Retail Finance Limited
4.
Reliance Retail Insurance Broking Limited
5.
Reliance Financial Distribution & Advisory Services Limited
6.
Reliance Trends Limited
7.
Reliance Gems and Jewels Limited
8.
Reliancedigital Retail Limited
9.
Reliance-GrandOptical Private Limited
10.
Strategic Manpower Solutions Limited
11.

26,50,000
10,000
50,000
50,000
5,000
50,000
50,000
50,000
10,000

No. of Shares
28,51,200
12,50,00,000

No. of Shares
46,250

No. of Shares
25,500
25,000
40,000

No. of Shares
40,400

No. of Shares
20,000
367

No. of Shares
8,08,60,000
10,50,000
51,20,000
20,20,000
40,00,000
50,000
10,50,000
10,10,000
10,50,000
50,000
50,000

Notes on Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 133

11.2 (i) Assets given on finance lease on or after 1st April, 2001

Particulars

Gross Investment

Less: Unearned Finance Income

Present Value of Minimum

Lease Rental

Total

Not later than
one year

Later than one
year and not later
than five years

(` in crore)

Later than
five years

2011-12 2010-11

(ii) General Description of Lease terms:

(cid:127) Lease rentals are charged on the basis of agreed rate of interest.

(cid:127) Assets are given on lease for a period of five years.

12. CURRENT INVESTMENTS

As at
31st March, 2012

(` in crore)

As at

31st March, 2011

Investment in Government Securities - Quoted, Fully Paid up

7.59% GOI 2016

Investment in Debentures or Bonds - Quoted, Fully Paid up

250 Axis Bank Limited
(-)

1,000 CitiFinancial Consumer Finance

(1,000)

India Limited

1,250 EXIM Bank of India

(2,250)

18,387 Housing Development Finance

(15,187) Corporation Limited

10,750 Infrastructure Development Finance
(5,000) Company Limited

15,095 India Infrastructure Finance Company Limited

(-)

32,62,862 Indian Railway Finance
(1,450) Corporation Limited

5,550 LIC Housing Finance Limited

(12,500)

3,500 National Bank for Agriculture and Rural Development

(-)

49,44,752 National Highways Authority of India

(-)

42,76,093 Power Finance Corporation Limited

(5,500)

120

1,822

1,060

149

350

545

349

494

858

220

1,531

483

139

1,218

552

134

Partnering India's new future. Sustainably.

Notes on Financial Statements for the Year ended 31st March, 2012

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

920 Power Grid Corporation of India Limited

(920)

450 Rural Electrification Corporation Limited

(1,350)

550 Steel Authority of India Limited

(1,500)

250 Tata Steel Limited
(-)

1,370 Tata Power Company Limited

(-)

Investment in Mutual Fund - Quoted, Fully Paid up

6,50,00,000 Axis Fixed Term Plan - (Series 13/15/16) - Growth

(6,00,00,000)

1,20,00,000 Baroda Pioneer FMP - (Series 1/2) - Growth

(1,50,00,000)

61,00,00,000 Birla Sun Life Fixed Term Plan -

(1,38,00,00,000)

(Series CM/CO to CW/DB/DL/DN/DO/DQ/DS/EW/FA)
Growth

10,00,00,000 Canara Robeco Fixed Maturity Plan - (Series 6 -13/ 7)
(5,00,00,000)

- Growth

41,00,00,000 DSP Blackrock FMP - (Series 7/10/12 to18/39)

(75,00,00,000)

- Growth

14,30,00,000 DWS Fixed Maturity Plan - (Series 11/90/92) - Growth

(-)

- Fidelity Mutual Fund - Series 5 - Growth

(3,50,00,000)

44,00,00,000 HDFC FMP (Series XIV/XVI/XVIII/XXI/XIX)

(13,80,00,000)

- Growth

- HSBC Fixed Term (Series 79) - Growth

(10,00,00,000)

39,00,00,000 ICICI Prudential FMP Series 51/54/55/56/59/63 -

(1,26,50,00,000) Cumulative

5,00,00,000 ICICI Prudential FMP Series 55 - Dividend

(-)

12,04,25,008 ICICI Prudential Interval Fund -

(-)

Institutional Cumulative

-
(7,50,00,000)

IDBI FMP (Series I) - Growth

15,50,00,000 IDFC Fixed Maturity Plan -

(47,00,00,000) Yearly (Series 37/38/40/41/42/52/64/66) - Growth

112

142

610

100

410

143

440

390

130

155

112

131

146

6,247

4,630

1,380

750

138

100

1,265

470

Notes on Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 135

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

10,50,00,000 JPM Fixed Maturity Plan - (Series 8) - Growth

(-)

-
(18,00,00,000)

JPMorgan India Fixed Maturity Plan (Series 1) - Growth

23,00,00,000 Kotak Fixed Maturity Plan (Series 57/60/62/83)

(-)

- Growth

6,00,00,000 Religare Fixed Maturity Plan (Series- IX/VIII) -

(-) Growth

76,50,00,000 SBI Debt Fund (Series- 6/7/9/10/11/12/17/18/19) -

(32,50,00,000) Growth

2,20,00,000 Sundaram Fixed Term Plan - Growth

(2,50,00,000)

24,00,00,000 Tata Fixed Maturity Plan (Series 31/34/36/37) - Growth
(6,40,00,000)

6,66,98,706 UTI Fixed Income Interval Fund (Series II/III/IX-I) -

(15,00,00,000) Growth

2,61,12,073 UTI Fixed Income Fund (Series IX-IV) -

(-) Dividend - Reinvestment

105

230

765

240

Investment in Units - Quoted

41,19,71,606 Birla Sunlife Dynamic Bond Fund - Retail - Growth

730

(-)

2,48,38,796 DWS Premium Bond Fund - Premium Plus Growth Plan

(-)

3,77,86,469 DWS Short Maturity Fund - Premium Plus Growth Plan

(-)

3,99,55,814 ICICI Prudential Institutional Short Term Plan -

(-) Cumulative Option

7,37,24,677 LIC Nomura MF Liquid Fund - Growth Plan

(-)

141

4,036

180

325

150

5,082

Investment in Commercial Paper - Quoted

Housing Development Finance Corporation Limited

1,021

Investment in Certificate of Deposits with Scheduled Banks - Quoted

Total Current Investments

Aggregate amount of quoted investments

Market Value of quoted investments

15,720

27,029

27,494

4,632

14,443

14,590

136

Partnering India's new future. Sustainably.

Notes on Financial Statements for the Year ended 31st March, 2012

13.

INVENTORIES

Raw Materials
Raw Materials in Transit
Stock-in-Process
Finished Goods
Stores, Chemicals and Packing Materials
Stock-in-Trade

TOTAL

14. TRADE RECEIVABLES

(Unsecured and Considered Good)

Over six months
Others

TOTAL

15. CASH AND BANK BALANCES

Balance with Banks #
Cash on hand
Fixed deposits with banks *

TOTAL

As at
31st March, 2012
8,342
11,008
5,274
7,944
3,333
54

(` in crore)
As at
31st March, 2011
6,130
8,446
4,909
7,376
2,849
115

35,955

29,825

As at
31st March, 2012
14
18,410

(` in crore)
As at
31st March, 2011
14
17,428

18,424

17,442

As at
31st March, 2012
875
14
38,709

(` in crore)
As at
31st March, 2011
590
15
26,530

39,598

27,135

# Balance with Banks includes Unclaimed Dividend of ` 129 crore (Previous Year ` 111 crore)
* Fixed deposits with banks include deposits of ` 6,860 crore (Previous Year ` 14,255 crore) with maturity of more

than 12 months.

16.

SHORT TERM LOANS AND ADVANCES
(Unsecured and Considered Good)

Loans and Advances to Related Parties
(Refer Note No. 30)
Balance with Customs, Central Excise Authorities
Deposits
Others*#

TOTAL

As at
31st March, 2012
4,169

(` in crore)
As at
31st March, 2011
2,402

1,525
358
5,037

11,089

1,223
394
2,814

6,833

* Netted for Loans and Advances considered doubtful ` 70 crore (Previous Year ` 70 crore)
# Includes primarily Interest Receivable on Fixed Deposits with Banks, Advance to sundry creditors and Forward

Premium on derivative contracts.

Notes on Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 137

17. OTHER CURRENT ASSETS

Interest accrued on Investment
TOTAL

18. REVENUE FROM OPERATIONS

Sale of Products
Income from Services

Less: Excise Duty/ Service Tax Recovered
TOTAL

18.1 PARTICULARS OF SALE OF PRODUCTS

Particulars
Petroleum Products
Petrochemicals Products
Oil & Gas
Others
TOTAL

19. OTHER INCOME

Interest
From Current Investments
From Long Term Investments
From Others

Dividend
From Current Investments
From Long Term Investments

Net gain on Sale of Investments
From Current Investments
From Long Term Investments
Adjustment to the carrying amount of investments
[(` 14,64,610)]

Other non operating income *
TOTAL

As at
31st March, 2012
249
249

(` in crore)
As at
31st March, 2011
199
199

2011-12
3,39,721
71
3,39,792
9,888
3,29,904

2011-12
2,45,335
80,625
12,620
1,141
3,39,721

2011-12

(` in crore)
2010-11
2,58,571
80
2,58,651
10,481
2,48,170

(` in crore)
2010-11
1,79,263
63,155
15,630
523
2,58,571

(` in crore)
2010-11

431
109
3,874

6
4

1,060
575
-

482
-
2,139

4,414

2,621

-
2

430
-
(90)

340
89
3,052

1,635
133
6,192

*Other non operating income includes income from finance lease of ` 3 crore (Previous Year ` 6 crore).

138

Partnering India's new future. Sustainably.

Notes on Financial Statements for the Year ended 31st March, 2012

20. COST OF MATERIALS CONSUMED

Imported
Indigenous
TOTAL

20.1 PARTICULARS OF MATERIALS CONSUMED

Particulars
Crude Oil
Others
TOTAL

21. CHANGES IN INVENTORIES OF FINISHED GOODS,

STOCK-IN-PROCESS AND STOCK-IN-TRADE
Inventories (at close)
Finished Goods / Stock-in-Trade
Stock-in-Process

Inventories (at commencement)
Finished Goods / Stock-in-Trade
Stock-in-Process

TOTAL

22. EMPLOYEE BENEFITS EXPENSE

Salaries and Wages
Contribution to Provident and Other Funds
Staff Welfare Expenses
TOTAL

` in crore

2,51,583
23,231
2,74,814

2011-12
% of
Consumption
91.55
8.45
100.00

` in crore

1,77,226
16,008
1,93,234

2010-11
% of
Consumption
91.72
8.28
100.00

7,998
5,274

7,491
4,909

2011-12
2,53,997
20,817
2,74,814

2011-12

13,272

12,400
(872)

2011-12
2,433
215
214
2,862

7,491
4,909

6,278
2,879

(` in crore)
2010-11
1,82,873
10,361
1,93,234

(` in crore)
2010-11

12,400

9,157
(3,243)

(` in crore)
2010-11
2,179
243
202
2,624

22.1 As per Accounting Standard 15 “Employee benefits”, the disclosures as defined in the Accounting Standard are

given below :
Defined Contribution Plans
Contribution to Defined Contribution Plans, recognised as expense for the year is as under :

(` in crore)

2010-11
Employer’s Contribution to Provident Fund
64
Employer’s Contribution to Superannuation Fund
13
15
Employer’s Contribution to Pension Scheme
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

2011-12
80
15
15

Notes on Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 139

using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit
of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation
for leave encashment is recognised in the same manner as gratuity.
I)

Reconciliation of opening and closing balances of Defined Benefit Obligation

Gratuity
(Funded)

Leave Encashment
(Unfunded)

(` in crore)

Defined Benefit obligation at beginning of year
Current Service Cost
Interest Cost
Actuarial (gain) / loss
Benefits paid
Defined Benefit obligation at year end
Reconciliation of opening and closing balances of fair value of Plan Assets

2011-12
383
27
32
17
(23)
436

2010-11
300
36
24
40
(17)
383

II)

2011-12
179
8
11
39
(100)
137

2010-11
297
16
17
42
(193)
179

(` in crore)

Gratuity (Funded)
2011-12
327
29
2
59
(23)
394
31

2010-11
269
24
2
49
(17)
327
26

(` in crore)
Leave Encashment
(Unfunded)
As at 31st March
2011
2012
-
-
179
137
179
137

(` in crore)

Gratuity
(Funded)
As at 31st March
2011
327
383
56

2012
394
436
42

Gratuity
(Funded)

Leave Encashment
(Unfunded)

2011-12
27
32
(29)
15
45

2010-11
36
24
(24)
38
74

2011-12
8
11
-
39
58

2010-11
16
17
-
42
75

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

Fair value of Plan assets
Present value of obligation
Amount recognised in Balance Sheet

IV) Expenses recognised during the year

Current Service Cost
Interest Cost
Expected return on Plan assets
Actuarial (gain) / loss
Net Cost

140

Partnering India's new future. Sustainably.

Notes on Financial Statements for the Year ended 31st March, 2012

Investment Details :

GOI Securities
Public Securities
State Government Securities
Insurance Policies
Others (including bank balances)

VI) Actuarial assumptions

% Invested

As at 31st
March, 2012
7.52
6.18
2.42
83.72
0.16
100.00

As at 31st
March, 2011
9.15
9.51
4.04
77.12
0.18
100.00

Gratuity
(Funded)

Leave Encashment
(Unfunded)

2010-11
1994-96

2011-12
1994-96

Mortality Table (LIC)

2010-11
1994-96
(Ultimate)
8.25%
Discount rate (per annum)
-
Expected rate of return on plan assets (per annum)
Rate of escalation in salary (per annum)
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.

2011-12
1994-96
(Ultimate) (Ultimate) (Ultimate)
8.25% 8.50%
-
8.25%
6 %
6 %

8.50%
8.50%
6 %

22.2 The Company announced a Voluntary Separation Scheme (VSS) for the employees of one of the units during the
year. A sum of ` 5 crore (Previous Year ` 3 crore) has been paid during the year and debited to Statement of Profit
and Loss under the head “Employee Benefits Expense”.

23.

FINANCE COSTS

Interest Expenses
Other borrowing costs
Applicable loss on foreign currency
transactions and translation

TOTAL

24. DEPRECIATION AND AMORTISATION EXPENSE

Depreciation and Amortisation
Less: Transferred from revaluation reserve (Refer Note No. 9.9)

TOTAL

2011-12
1,966
18
683

2,667

2011-12
13,734
2,340

11,394

(` in crore)
2010-11
2,125
20
183

2,328

(` in crore)
2010-11
16,241
2,633

13,608

Notes on Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 141

25. OTHER EXPENSES

2011-12

(` in crore)
2010-11

Manufacturing expenses
Stores, Chemicals and Packing Materials
Electric Power, Fuel and Water
Labour Processing, Production Royalty
and Machinery Hire Charges
Repairs to Building
Repairs to Machinery
Exchange Difference (Net)
Excise Duty #
Lease Rent

Selling and Distribution Expenses
Warehousing and Distribution Expenses
Sales tax /VAT/Service tax
Other selling and Distribution Expenses

Establishment Expenses
Professional fees
General Expenses
Rent
Insurance
Rates & Taxes
Other Repairs
Travelling Expenses
Payment to Auditors
Loss on Sale /Discard of Fixed Assets
Charity and Donations

3,482
4,094
1,829

40
728
161
(28)
1

4,380
821
192

705
255
122
522
83
258
82
17
45
288

3,378
2,255
2,284

29
632
(368)
34
1

4,195
756
402

8,245

10,307

5,393

5,353

666
500
103
529
67
243
74
14
58
143

Less: Transferred to Project Development Expenditure

TOTAL

2,377
37

18,040

2,397
30

15,965

# 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.

25.1 VALUE OF STORES, CHEMICALS AND PACKING MATERIALS CONSUMED :

Imported
Indigenous

TOTAL

` in crore

1,816
1,666

3,482

2011-12
% of
Consumption
52.15
47.85

100.00

2010-11
% of
Consumption
51.04
48.96

100.00

` in crore

1,724
1,654

3,378

142

Partnering India's new future. Sustainably.

Notes on Financial Statements for the Year ended 31st March, 2012

25.2 VALUE OF IMPORTS ON CIF BASIS IN RESPECT OF

Raw Materials and Stock-in-Trade
Stores, Chemicals and Packing Materials
Capital goods

25.3 PAYMENT TO AUDITORS AS :

(a)

(b)
(c)

Auditor
Statutory Audit Fees
Tax Audit Fees
Certification and Consultation Fees
Cost Audit Fees
[` 39,85,000 (Previous Year ` 22,15,000)]

TOTAL

2011-12
2,54,248
3,120
325

2011-12

7
1
9
-

(` in crore)
2010-11
1,74,914
2,051
502

(` in crore)
2010-11

6
1
7
-

25.4 A sum of ` 1 crore (net debit) [Previous Year ` 3 crore (net debit)] is included under establishment expenses

representing Net Prior Period Items.

25.5 EXPENDITURE IN FOREIGN CURRENCY :

Capital Contracts (Includes ` 2,35,330 for SEZ unit)
Oil and Gas Activity
Technical and Engineering Fees
Repairs to Machinery (Includes ` 2 crore for SEZ unit)
Repairs to Building
Employee Benefits Expense
Sales Promotion Expenses
Brokerage and Commission (Includes ` 2 crore for SEZ unit)
Ocean Freight (Includes ` 525 crore for SEZ unit)
Warehousing and Distribution Expenses
(Includes ` 980 crore for SEZ unit)
Insurance (Includes ` 14,55,709 for SEZ unit)
Rent
Rates & Taxes (Includes ` 21,059 for SEZ unit)
Other Repairs (Includes ` 3 crore for SEZ unit)
Travelling Expenses
Professional Fees (Includes ` 20 crore for SEZ unit)
Charity and Donations
Labour Processing, Production Royalty and Hire Charges
(Includes ` 34,05,332 for SEZ unit)
Bank Charges (Includes ` 6 crore for SEZ unit)
Establishment Expenses (Includes ` 5 crore for SEZ unit)
Interest Expenses (Includes ` 498 crore for SEZ unit)

2011-12
167
1,633
-
84
1
40
29
31
1,085
1,349

2
5
1
15
9
204
9
1

15
74
1,392

(` in crore)
2010-11
166
3,804
192
92
4
20
31
55
1,488
1,036

2
5
1
8
7
113
16
-

20
54
1,368

Notes on Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 143

26. EARNINGS PER SHARE (EPS)

Net Profit after tax as per Statement of Profit and Loss
attributable to Equity Shareholders (` in crore)

ii) Weighted Average number of equity shares used as

denominator for calculating EPS

Basic and Diluted Earnings per share (`)

Face Value per equity share (`)

iii)

iv)

27.

EARNINGS IN FOREIGN EXCHANGE

FOB value of exports [Excluding captive transfers to Special
Economic Zone of ` 21,278 crore (Previous Year ` 13,178 crore)]

Interest

Others

2011-12

2010-11

20,040

20,286

3,27,42,26,242

3,27,18,51,032

61.21

10.00

2011-12

62.00

10.00

(` in crore)

2010-11

1,98,269

1,40,546

204

28. 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:

Number of Non Resident Shareholders

Number of Equity Shares held by them

(i)

(ii)

Amount of Dividend Paid ( Gross) ( ` in Crore)

Tax Deducted at Source

2011-12
(Final Dividend)

2010-11
(Final Dividend)

40,493

40,299

59,71,01,671

59,60,33,421

478

417

(iii) Year to which dividend relates

2010-11

2009-10

29.

Fixed assets taken on finance lease prior to 1st April, 2001, amount to ` 444 crore (Previous Year ` 512 crore).
Future obligations towards lease rentals under the lease agreements as on 31st March, 2012 amount to ` 3 crore
(Previous Year ` 4 crore).

Within one year

Later than one year and not later than five years

Later than five years
[` 38,57,534]

TOTAL

2011-12

(` in crore)

2010-11

144

Partnering India's new future. Sustainably.

Notes on Financial Statements for the Year ended 31st March, 2012

30. RELATED PARTY DISCLOSURES :

(i)

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below:
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
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36

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 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 Limited
Gapco Tanzania Limited
Gapco Uganda Limited
Gapoil (Zanzibar) Limited
Gulf Africa Petroleum Corporation
Transenergy Kenya Limited
Recron (Malaysia) Sdn Bhd
Reliance Retail Travel & Forex Services Limited
Reliance Brands Limited
Reliance Footprint Limited
Reliance Trends Limited
Reliance Wellness Limited
Reliance Lifestyle Holdings Limited
Reliance Universal Ventures Limited
Delight Proteins Limited

Notes on Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 145

Sr. No. Name of the Related Party

Relationship

37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74

75
76

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-GrandOptical 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. Limited
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
Two Sisters Foods India Limited
(Formerly Reliance Nutritional Food Processors Limited)
RIL USA Inc.
Reliance Commercial Land & Infrastructure Limited

Subsidiary Companies

146

Partnering India's new future. Sustainably.

Notes on Financial Statements for the Year ended 31st March, 2012

Sr. No. Name of the Related Party

Relationship

77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117

Reliance Corporate IT Park Limited
Reliance Eminent Trading & Commercial Private Limited
Reliance Progressive Traders Private Limited
Reliance Prolific Traders Private Limited
Reliance Universal Traders Private Limited
Reliance Prolific Commercial Private Limited
Reliance Comtrade Private Limited
Reliance Ambit Trade Private Limited
Reliance Petro Marketing Limited
LPG Infrastructure (India) Limited
Reliance Corporate Centre Limited
Reliance Convention and Exhibition Centre 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
Indiawin Sports Private 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 Private Limited
Reliance Office Solutions Private Limited
Reliance Style Fashion India Private Limited
GenNext Innovation Ventures Limited
Reliance Home Products Limited
Infotel Telecom Limited
Reliance Styles India Limited
Rancore Technologies Private Limited
Omni Symmetry LLC
Reliance Sibur Elastomers Private Limited
GenNext Ventures LLP

Subsidiary Companies

Notes on Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 147

Sr. No. Name of the Related Party

Relationship

118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136

Reliance Industrial Infrastructure Limited
Reliance Europe Limited
Reliance LNG Limited
Indian Vaccines Corporation Limited
Gujarat Chemicals Port Terminal Company Limited
Reliance Utilities and Power Private Limited
Reliance Utilities Private Limited
Reliance Ports and Terminals Limited
Reliance Gas Transportation Infrastructure Limited
Shri Mukesh D. Ambani
Shri Nikhil R. Meswani
Shri Hital R. Meswani
Shri P.M.S. Prasad
Shri P.K.Kapil
Dhirubhai Ambani Foundation
Jamnaben Hirachand Ambani Foundation
Hirachand Govardhandas Ambani Public Charitable Trust
HNH Trust and HNH Research Society
Reliance Foundation

(ii)

Transactions during the year with related parties :

Associates

Key Managerial Personnel

Enterprises over which
Key Managerial Personnel
are able to exercise
significant influence

Sr. Nature of Transactions
No. (Excluding reimbursements)
Purchase of Fixed Assets
1.

Purchase / Subscription of Investments

Sale / Transfer of Investments

4. Capital Advance given

5. Net Loans and advances given / (returned)

6. Revenue from Operations

7. Other Income

Purchases / Material Consumed

Subsidiaries Associates Key Managerial Others

(` in crore)
Total

5
-
4,225
7,541
3,265
-
42
-
3,151
5,400
19,661
16,934
673
1,037
357
506

Personnel
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

105
-
-
52
-
-
-
-
17
19
312
219
7
6
151
1

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

110
-
4,225
7,593
3,265
-
42
-
3,168
5,419
19,973
17,153
680
1,043
508
507

148

Partnering India's new future. Sustainably.

Notes on Financial Statements for the Year ended 31st March, 2012

Sr.
No.

Nature of Transactions
(Excluding reimbursements)

Electric Power, Fuel and Water

10. Hire Charges

11. Employee Benefits Expense

12. Payment to Key Managerial Personnel

13. Sales and Distribution Expenses

14. Rent

15. Professional Fees

16. General Expenses

17. Donations

18. Finance Cost

Balance as at 31st March, 2012

19.

Investments

20. Trade Receivables

21. Capital Advance

22. Loans & Advances

23. Deposits

24. Trade and other payables

25. Finance Lease Obligations

26. Financial Guarantees

27. Performance Guarantees

Subsidiaries Associates Key Managerial Others

Personnel

(` in crore)
Total

-
-
1
-
29
41
-
-
53
50
29
-
261
112
38
43
-
-
18
19

21,260
20,299
3,952
3,423
42
-
14,400
9,478
299
299
753
133
187
206
28,446
20,922
36
121

1,140
917
408
790
-
21
-
-
2,381
2,572
-
-
36
17
-
9
-
-
-
-

2,085
2,085
25
14
-
-
12
32
1442
1,400
405
331
1
-
1137
716
1
7

-
-
-
-
-
-
44
41
-
-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
210
26
-
-

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

1,140
917
409
790
29
62
44
41
2,434
2,622
29
-
297
129
38
52
210
26
18
19

23,345
22,384
3,977
3,437
42
-
14,412
9,510
1741
1,699
1,158
464
188
206
29,583
21,638
37
128

Note :
Figures in italic represents Previous Year’s amount.

Notes on Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 149

Disclosure in Respect of Material Related Party Transactions during the year :
1. Purchase of Fixed Assets include Reliance Fresh Limited ` 2 crore (Previous Year ` NIL), Reliance Industrial
Infrastructure Limited ` 1 crore (Previous Year ` NIL), Reliance Jamnagar Infrastructure Limited ` 2 crore
(Previous Year ` NIL), Reliancedigital Retail Limited ` 1 crore (Previous Year ` NIL), Reliance Ports and Terminals
Limited ` 104 crore (Previous Year ` NIL).

2. Purchase / Subscription of Investments include Reliance Industries (Middle East) DMCC ` NIL (Previous Year
` 20 crore), Reliance Exploration & Production DMCC ` 558 crore (Previous Year ` 440 crore) (including conversion
of share application money of ` 11 crore into Preference Shares), Reliance Global Business B.V. ` NIL (Previous
Year ` 101 crore), Reliance Exploration & Production Mauritius Limited ` 348 crore (Previous Year ` 2,208 crore),
Reliance Oil & Gas Mauritius Limited ` 95 crore (Previous Year ` 614 crore), Infotel Broadband Services Limited
` 642 crore (Previous Year ` 4,156 crore) (including conversion of share application money of ` 46 crore into
Equity Shares), Reliance Retail Limited ` 2,580 crore (Previous Year ` NIL) (including conversion of share
application money of ` 878 crore into Preference Shares), RIL (Australia) Pty Limited ` 2 crore (Previous Year
` 2 crore), Gujarat Chemicals Port Terminal Company Limited ` NIL (Previous Year ` 52 crore).

3. Sale / Transfer of Investments include to Reliance Energy Generation and Distribution Limited ` 3,265 crore

(Previous Year ` NIL).

4. Capital Advances given include Reliance Haryana SEZ Limited ` 42 crore (Previous Year ` NIL).
5. Loans given during the year include Reliance Industrial Investments and Holdings Limited ` 2,625 crore (Previous
Year ` 4,348 crore), Gujarat Chemicals Port Terminal Company Limited ` 17 crore (Previous Year ` 19 crore),
Reliance Retail Limited ` 617 crore (Previous Year ` NIL). Loans returned during the year include Gapco Tanzania
Limited ` 84 crore (Previous Year ` 180 crore), Reliance Exploration & Production DMCC ` 8 crore (Previous Year
` 15 crore), Reliance Gas Corporation Limited ` NIL (Previous Year ` 6 crore), Reliance Corporate IT Park Limited
` NIL (Previous Year ` 53 crore), Gujarat Chemicals Port Terminal Company Limited ` NIL (Previous Year ` 17 crore).
Advances in the nature of application / call money advances to Reliance Retail Limited ` NIL (Previous Year
` 726 crore), Infotel Broadband Services Limited ` NIL (Previous Year ` 46 crore), Reliance Exploration &
Production DMCC ` NIL (Previous Year ` 11 crore), Reliance Prolific Traders Private Limited ` NIL (Previous
Year ` 523 crore).

6. Revenue from Operations include to Reliance Jamnagar Infrastructure Limited ` 1 crore (Previous Year ` NIL),
Reliance Retail Limited ` 6 crore (Previous Year ` 136 crore), Gapco Kenya Limited ` 4,559 crore (Previous Year
` 3,750 crore), Gapco Tanzania Limited ` 526 crore (Previous Year ` 750 crore), Recron (Malaysia) Sdn Bhd ` 124
crore (Previous Year ` 41 crore), Reliance Trends Limited ` 5 crore (Previous Year ` 3 crore), LPG Infrastructure
(India) Limited ` 269 crore (Previous Year ` 226 crore), Reliance Petro Marketing Limited ` 216 crore (Previous
Year ` 809 crore), RIL USA Inc. ` 12,572 crore (Previous Year ` 10,210 crore), Reliance Industrial Investments and
Holdings Limited ` 733 crore (Previous Year ` 948 crore), Reliance Fresh Limited ` 6 crore (Previous Year ` 2
crore), Reliance Gems and Jewels Limited ` 504 crore (Previous Year ` 59 crore), Reliance Utilities Private Limited
` 145 crore (Previous Year ` NIL), Reliance Ports and Terminals Limited ` 20 crore (Previous Year ` 5 crore),
Reliance Gas Transportation Infrastructure Limited ` 147 crore (Previous Year ` 213 crore), Reliance Corporate
IT Park Limited ` 5 crore (Previous Year ` NIL), Reliance Industries (Middle East) DMCC ` 100 crore (Previous
Year ` NIL), Infotel Broadband Services Limited ` 35 crore (Previous Year ` NIL).

7. Other Income from Reliance Industrial Investments and Holdings Limited ` 315 crore (Previous Year ` 884
crore), Reliance Ventures Limited ` 40 crore (Previous Year ` 19 crore), Reliance Strategic Investments Limited
` 71 crore (Previous Year ` 10 crore), Reliance Jamnagar Infrastructure Limited ` NIL (Previous Year ` 2 crore),
Reliance Exploration & Production DMCC ` NIL (Previous Year ` 1 crore), Gapco Kenya Limited ` 4 crore
(Previous Year ` 2 crore), Gapco Tanzania Limited ` 4 crore (Previous Year ` 8 crore), Recron (Malaysia) Sdn Bhd
` 7 crore (Previous Year ` 5 crore), Infotel Broadband Services Limited ` 39 crore (Previous Year ` 13 crore),
Reliance Retail Limited ` 16 crore (Previous Year ` 3 crore), RIL USA Inc. ` 18 crore (Previous Year ` 13 crore),
Reliance Holdings USA Inc. ` 132 crore (Previous Year ` 60 crore), Reliance Eagleford Upstream Holding LP ` 2
crore (Previous Year ` 2 crore), Reliance Marcellus LLC ` 10 crore (Previous Year ` 9 crore), Reliance Corporate
IT Park Limited ` 3 crore (Previous Year ` 6 crore), Reliance Industrial Infrastructure Limited ` 2 crore (Previous
Year ` 2 crore), Reliance Europe Limited ` 5 crore (Previous Year ` 3 crore), Gapco Uganda Limited ` 1 crore
(Previous Year ` NIL), Reliance Gems and Jewels Limited ` 11 crore (Previous Year ` NIL).

8. Purchases / material consumed from Recron (Malaysia) Sdn Bhd ` 2 crore (Previous Year ` 6 crore), Reliance
Petro Marketing Limited ` 3 crore (Previous ` 108 crore), Reliance Jamnagar Infrastructure Limited ` 350 crore
(Previous Year ` 392 crore), Reliance Ports and Terminals Limited ` 138 crore (Previous Year ` 1 crore), Reliance

150

Partnering India's new future. Sustainably.

Notes on Financial Statements for the Year ended 31st March, 2012

Industrial Infrastructure Limited ` 11 crore (Previous Year ` NIL), Reliance Footprint Limited ` 2 crore (Previous
Year ` NIL), Gujarat Chemicals Port Terminal Company Limited ` 2 crore (Previous Year ` NIL).

9. Electric Power, Fuel and Water charges paid to Reliance Utilities and Power Private Limited ` 369 crore (Previous

Year ` 292 crore), Reliance Utilities Private Limited ` 771 crore (Previous Year ` 625 crore).

10. Hire Charges paid to Reliance Industrial Infrastructure Limited ` 21 crore (Previous Year ` 22 crore), Gujarat
Chemicals Port Terminal Company Limited ` 66 crore (Previous Year ` 44 crore), Reliance Gas Transportation
Infrastructure Limited ` 235 crore (Previous Year ` 652 crore), Reliance Ports and Terminals Limited ` 86 crore
(Previous Year ` 72 crore), Reliance Corporate IT Park Limited ` 1 crore (Previous Year ` NIL).

11. Employee Benefits Expense to Reliance Retail Limited ` NIL (Previous Year ` 33 crore), Reliance People Serve
Limited ` 3 crore (Previous Year ` 2 crore), Strategic Manpower Solutions Limited ` NIL (Previous Year ` 4
crore), Reliance Fresh Limited ` 20 crore (Previous Year ` 2 crore), Reliance Industrial Infrastructure Limited
` NIL (Previous Year ` 21 crore), Reliance Polyolefins Limited ` 5 crore (Previous Year ` NIL), Reliance Trends
Limited ` 1 crore (Previous Year ` NIL).

12. Payment to Key Management Personnel include to Shri Mukesh D. Ambani ` 15 crore (Previous Year ` 15 crore),
Shri Nikhil R. Meswani ` 11 crore (Previous Year ` 11 crore), Shri Hital R. Meswani ` 11 crore (Previous Year
` 11 crore), Shri P.M.S. Prasad ` 5 crore (Previous Year ` 2 crore), Shri P.K. Kapil ` 2 crore (Previous Year ` 2 crore).
13. Sales and Distribution Expenses include to Reliance Fresh Limited ` 43 crore (Previous Year ` 49 crore), Reliance
Netherlands B.V. ` NIL (Previous Year ` 1 crore), Reliance Ports and Terminals Limited ` 2,370 crore (Previous
Year ` 2,562 crore), Gujarat Chemicals Port Terminal Company Limited ` 11 crore (Previous Year ` 10 crore),
Reliance Jamnagar Infrastructure Limited ` 7 crore (Previous Year ` NIL), Gapco Kenya Limited ` 3 crore
(Previous Year ` NIL).

14. Rent paid to Reliance Jamnagar Infrastructure Limited ` 29 crore (Previous Year ` NIL).
15. Professional Fees paid to Reliance Supply Chain Solutions Limited ` 18 crore (Previous Year ` 9 crore), Reliance
Corporate IT Park Limited ` 240 crore (Previous Year ` 102 crore), Reliance Netherlands B.V. ` 1 crore (Previous
Year ` NIL), Reliance Europe Limited ` 27 crore (Previous Year ` 17 crore), GenNext Ventures LLP ` 2 crore
(Previous Year ` NIL), Reliance Industrial Infrastructure Limited ` 9 crore (Previous Year ` NIL).

16. General Expenses include to Reliance Hypermart Limited ` NIL (Previous Year ` 2 crore), Reliance Retail Limited
` NIL (Previous Year ` 8 crore), Reliance Footprint Limited ` NIL (Previous Year ` 2 crore), Reliance Fresh
Limited ` 11 crore (Previous Year ` 20 crore), Reliance Polyolefins Limited ` NIL (Previous Year ` 4 crore),
Reliance Trends Limited ` 3 crore (Previous Year ` 3 crore), Reliance Gems and Jewels Limited ` 7 crore (Previous
Year ` 2 crore), Reliance Industrial Infrastructure Limited ` NIL (Previous Year ` 9 crore), Reliancedigital Retail
Limited ` 3 crore (Previous Year ` NIL), Indiawin Sports Private Limited ` 14 crore (Previous Year ` NIL).
17. Donations to Dhirubhai Ambani Foundation ` 86 crore (Previous Year ` 18 crore), Jamnaben Hirachand Ambani
Foundation ` 8 crore (Previous Year ` 6 crore), HNH Trust and HNH Research Society ` 3 crore (Previous Year
` 2 crore), Hirachand Govardhandas Ambani Public Charitable Trust ` 1 crore (Previous Year ` NIL), Reliance
Foundations ` 112 crore (Previous Year ` NIL).

18. Finance Costs include to Reliance Corporate IT Park Limited ` 18 crore (Previous Year ` 19 crore).
19. Loans and Advances include Reliance Industrial Investments and Holdings Limited ` 9,905 crore (Previous Year
` 7,792crore), Reliance Retail Limited ` 621 crore (Previous Year ` 879 crore), Reliance Strategic Investments
Limited ` 22 crore (Previous Year ` NIL), Gapco Kenya Limited ` 2 crore (Previous Year ` NIL), Gapco Tanzania
Limited ` 2 crore (Previous Year ` 85 crore), Gapco Uganda Limited ` 1 crore (Previous Year ` NIL), Infotel
Broadband Services Limited ` 10 crore (Previous Year ` 59 crore), Recron (Malaysia) Sdn Bhd ` 7 crore (Previous
Year ` 5 crore), Reliance Europe Limited ` 12 crore (Previous Year ` 7 crore), RIL USA Inc. ` 2 crore (Previous
Year ` 1 crore), Reliance Holding USA Inc. ` 18 crore (Previous Year ` 60 crore), Reliance Eagleford Upstream
Holding LP ` NIL (Previous Year ` 2 crore), Reliance Marcellus LLC ` 2 crore (Previous Year ` 9 crore), Reliance
Energy Generation and Distribution Limited ` 3,265 crore (Previous Year ` NIL), Reliance Exploration and
Production DMCC ` NIL (Previous Year ` 19 crore), Gujarat Chemicals Port Terminal Company Limited ` NIL
(Previous Year ` 25 crore), Reliance Corporate IT Park Limited ` 20 crore (Previous Year ` 44 crore), Reliance
Prolific Traders Private Limited (Application Money) ` 523 crore (Previous Year ` 523 crore).

20. Deposits includes Reliance Jamnagar Infrastructure Limited ` 299 crore (Previous Year ` 299 crore), Gujarat
Chemicals Port Terminal Company Limited ` 42 crore (including conversion of loan given) (Previous Year ` NIL),
Reliance Utilities and Power Private Limited ` 200 crore (Previous Year ` 200 crore), Reliance Ports and Terminals
Limited ` 1,050 crore (Previous Year ` 1,050 crore), Reliance Utilities Private Limited ` 150 crore (Previous Year
` 150 crore).

Notes on Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 151

31. (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
KG-DWN-2003/1
MN-DWN-2003/1
KG-DWN-2005/2
CY-PR-DWN-2001/3
KK-DWN-2001/1

1
2
3
4
5
6
7
8
9
10

% Interest

30% (30%)
30% (30%)
60% (90%)
60% (90%)
90% (90%)
60% (90%)
55% (85%)
50% (50%)
70% (100%)
70% (100%)

Sr. No. Name of the Fields in the
Joint Ventures
KK-DWN-2001/2
CY-DWN-2001/2
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

11
12
13
14
15
16
17
18
19
20

% Interest

70% (100%)
70% (100%)
70% (100%)
70% (100%)
70% (100%)
70% (100%)
70% (100%)
70% (100%)
70% (100%)
70% (100%)

Figures in bracket represent Previous Year’s (%) Interest.

(b) During the year the company received regulatory approvals for transfer of 30% Participating Interest (PI) in 21 Oil& Gas
production sharing contracts including KG D6 to Ms BP Exploration (Alpha) Limited (BP). Consequently, the proceeds, net
of adjustments for revenue and costs from 1st January 2011 to 30th August 2011(closing date) amounting to ` 32,198 crore
have been netted off from the cost incurred against the said blocks appearing in the Intangible Assets - Development Rights
and Intangible Assets under Development forming a part of Fixed Assets.

Sr. No. Name of the Fields
GK - OSJ - 3
1
AS-ONN-2000/1
2
KG-DWN-2001/1
3
NEC-DWN-2002/1
4
KG - DWN -98/1
5

% Interest
60%
90%
60%
100%
70%

Sr. No. Name of the Fields
6
7
8
9
10

MN - DWN 98/2
KG-OSN-2001/2
KG-OSN-2001/1
PR-DWN-2001/1
CY-PR-DWN-2001/4

% Interest
70%
100%
100%
70%
70%

(d) Net Quantities of Company’s interest (on gross basis) in proved reserves and proved developed reserves :

Oil:
Beginning of the year
Reduction on transfer of participating interest
Revision of estimates
Production
Closing balance for the year

Proved Reserves
(Million MT)

2011-12

2010-11

Proved Developed
Reserves (Million MT)
2010-11

2011-12

8.29
(1.69)
(2.61)
(0.93)
3.06

11.11
-
(1.44)
(1.38)
8.29

7.66
(1.65)
(2.66)
(0.93)
2.42

8.62
-
0.42
(1.38)
7.66

Proved Reserves
(Million M3*)

2011-12

2010-11

Proved Developed
Reserves (Million M3*)
2010-11
2011-12

Gas:
1,85,821
Beginning of the year
(56,621)
Reduction on transfer of participating interest
(12,418)
Revision of estimates
(12,824)
Production
Closing balance for the year
1,03,958
* 1 cubic meter (M3) = 35.315 cubic feet and 1 cubic feet = 1000 BTU

2,11,214
-
(5,771)
(19,622)
1,85,821

1,07,362
(30,543)
(38,836)
(12,824)
25,159

1,30,823
-
(3,839)
(19,622)
1,07,362

152

Partnering India's new future. Sustainably.

Notes on Financial Statements for the Year ended 31st March, 2012

32. As per Accounting Standard (AS) 17 on “Segment Reporting”, segment information has been provided under the

Notes to Consolidated Financial Statements.

33. Reliance Jamnagar Infrastructure Limited, a wholly owned subsidiary of the Company has on 26th March 2012
filed a Scheme for amalgamation with the Company with the Hon'ble High Court of Gujarat at Ahmedabad. The
Scheme shall be given effect to in the Books with effect from the Appointed Date of 1st April, 2011, upon receipt
of the necessary approvals.

34. CONTINGENT LIABILITIES AND COMMITMENTS

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

(I)

Contingent Liabilities
(A) Claims against the company / disputed liabilities

not acknowledged as debts
(a)
(b)
(B) Guarantees

In respect of joint ventures
In respect of others

(i)

(ii)

In respect of joint ventures
In respect of others

Guarantees to Banks and Financial Institutions
against credit facilities extended to third parties
(a)
(b)
Performance Guarantees
(a)
(b)

In respect of joint ventures
In respect of others

(iii) Outstanding guarantees furnished to Banks and

Financial Institutions including in respect of
Letters of Credits
(a)
(b)

In respect of joint ventures
In respect of others

is contingently liable
(i)

Liability in respect of bills discounted with
Banks (Including third party bills discounting)
(a)
(b)

In respect of joint ventures
In respect of others

(II)

Commitments
(A) Estimated amount of contracts remaining to be

executed on capital account and not provided for:
(a)
(b)

In respect of Joint Ventures
In respect of others
(B) Uncalled Liability on Shares and other

investments partly paid
[` 37,19,139]
(C ) Other commitments

-
1,343

-
29,583

-
159

228
5,167

-
631

340
9,923

-
1,617

-
21,638

-
236

24
3,473

-
2,296

10
9,578

4,912

Sales tax deferral liability assigned

4,468
8,053
* The Company has issued gurantees against future cash calls to be made by JV Partners of its wholly owned

(a)
(b) Guarantee against future cash calls *

3,560
3,141

subsidiary Reliance Marcellus LLC.

Notes on Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 153

(III) The Income-Tax assessments of the Company have been completed up to Assessment Year 2009-10. The
disputed demand outstanding up to the said Assessment Year is ` 1,292 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.

35.

FINANCIAL AND DERIVATIVE INSTRUMENTS
a)

Derivative contracts entered into by the Company and outstanding as on 31st March, 2012
(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 ` 86,561 crore (Previous Year ` 98,586 crore). Category wise break up is given below:
(` in crore)
As at 31st March, 2011
34,254
4,567
28,181
31,584

As at 31st March, 2012
32,193
4,199
25,138
25,031

Particulars
Interest Rate Swaps
Currency Swaps
Options
Forward Contracts

Sr. No.
1
2
3
4

(ii)

For hedging commodity related risks :
Category wise break up is given below :

Sr. No.

Particulars

As at 31st March, 2012
Petroleum Crude Oil

(in Kbbl)
As at 31st March, 2011
Petroleum Crude oil
product sales purchases product sales purchases
21,420
9,453
51,227
-
In addition the Company has net margin hedges outstanding for contracts relating to petroleum
product sales of 81,869 kbbl (Previous Year 79,308 kbbl).

Forward swaps
Futures
Spreads
Options

16,722
2,309
25,193
2,720

18,842
5,879
81,337
8,875

14,757
2,194
33,768
-

1
2
3
4

Foreign currency exposures that are not hedged by derivative instruments as on 31st March,2012 amount
to ` 82,198 crore (Previous Year ` 65,893 crore).

36.

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.

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 20, 2012

K. Sethuraman
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 } Directors

154

Partnering India's new future. Sustainably.

Consolidated Financial Statements & Notes

Auditors’ Report on Consolidated Financial Statements

Reliance Industries Limited 155

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, 2012, and the Consolidated Statement of Profit
and Loss 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.
1.

Financial statements / consolidated financial
statements of certain subsidiaries and joint ventures,
which reflect total assets of ` 56,679 crore as at 31st
March, 2012, total revenue of ` 39,496 crore and net
cash flows amounting to ` 51 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 ` 11 crore have been
audited by one of us.

2. We did not audit the financial statements of certain
subsidiaries, whose financial statements reflect total
assets of ` 2,213 crore as at 31st December, 2011/
31st March, 2012, total revenue of ` 91 crore and
cash flows amounting to ` (2) crore for the year
then ended and financial statements of an associate
in which the share of profit of the Group is ` 0.15
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 ` 19,624 crore as at 31st
December, 2011 / 31st March 2012, total revenue of
` 8,526 crore, cash flows amounting to ` (1,920)
crore for the year then ended and on the unaudited
financial statements of certain associates wherein
the Group's share of profit aggregates ` 30 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.
Based on our audit as aforesaid, and on
consideration of reports of other auditors on the
separate financial statements and on the other
financial information of the components and to the
best of our information and according to the
explanations given to us, we are of the opinion that
the attached consolidated financial statements give
a true and fair view in conformity with the
accounting principles generally accepted in India:
in the case of the Consolidated Balance Sheet,
(i)
of the State of Affairs of the Group as at 31st
March, 2012;
in the case of the Consolidated Statement of
Profit and Loss, of the Profit of the Group for
the year ended on that date; and
in the case of the Consolidated Cash Flow
Statement, of the Cash Flows of the Group
for the year ended on that date.

(iii)

(ii)

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 20, 2012

156

Partnering India's new future. Sustainably.

Reliance Industries Limited
Consolidated Balance Sheet as at 31st March, 2012

EQUITY AND LIABILITIES

Shareholders’ Funds
Share Capital
Reserves and Surplus

Share Application Money Pending Allotment

Minority Interest

Non-Current Liabilities
Long Term Borrowings
Deferred Tax Liability (net)
Long Term Provisions

Current Liabilities
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions

TOTAL

ASSETS

Non-Current Assets
Fixed Assets
Tangible Assets
Intangible Assets
Capital Work-in-Progress
Intangible Assets under Development
Non-Current Investments
Long Term Loans and Advances
Other Non-Current Assets

Current Assets
Current Investments
Inventories
Trade Receivables
Cash and Bank Balance
Short-Term Loans and Advances
Other Current Assets

TOTAL

Significant Accounting Policies
Notes on Financial Statements
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 20, 2012

K. Sethuraman
Company Secretary

Note

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

2,979
1,66,466

2,981
1,51,112

1,69,445
-

799

77,340

1,54,093
9

802

77,521

66,236
11,071
214

13,752
36,107
20,493
4,742

79,607
3,27,191

75,094
3,07,519

1,07,149
50,951
5,339
22,835
6,911
6,839
1

1,82,342

2,00,025

14,685
38,520
15,696
30,139
5,891
2,563

1,44,849
3,27,191

1,07,494
3,07,519

65,352
11,567
421

17,283
40,368
17,553
4,403

1,03,169
35,645
6,495
18,868
11,423
6,741
1

27,173
46,692
16,939
40,731
9,754
3,560

1
2

3
4
5

6
7
8
9

10
10
10
10
11
12
13

14
15
16
17
18
19

1 to 38

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 } Directors

Reliance Industries Limited
Consolidated Statement of Profit and Loss for the year ended 31st March, 2012

Reliance Industries Limited 157

Note

INCOME

Revenue from Operations

Other Income

Total Revenue

EXPENDITURE :

Cost of Materials Consumed

Purchases of Stock-in-Trade

Changes in Inventories of Finished Goods,
Stock-in-Process and Stock-in-Trade

Employee Benefits Expense

Finance Costs

Depreciation and Amortisation Expense

Other Expenses

Total Expenses

Profit before Tax

Tax Expenses

Current Tax

Deferred Tax

Profit for the year (before adjustment for Minority Interest)

Add: Share of Loss transferred to Minority Interest

Profit for the year (after adjustment for Minority Interest)

Earnings per equity share of face value of ` 10 each

Basic and Diluted (in `)

Basic and Diluted (in `) (Before exceptional items)

Significant Accounting Policies

Notes on Financial Statements

1 to 38

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 20, 2012

K. Sethuraman
Company Secretary

2011-12

3,58,501

6,194

3,64,695

2,91,800

9,235

(2,844)

3,955

2,893

12,401

21,847

3,39,287

25,408

5,226

465

19,717

19,724

66.15

67.18

(` in crore)

2010-11

2,65,811

2,543

2,68,354

2,01,850

7,032

(4,458)

3,324

2,411

14,121

20,019

2,44,299

24,055

4,412

371

19,272

19,294

64.75

67.83

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 } Directors

158

Partnering India's new future. Sustainably.

Reliance Industries Limited
Consolidated Cash Flow Statement for the year 2011-12

A: CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit before tax as per Profit and Loss Statement
Adjusted for:

2011-12

25,408

(` in crore)
2010-11

24,055

Miscellaneous Expenditure written off
Share in Income of Associates
Net Prior Year Adjustments
Impairment of Assets
Loss on Sale / Discard of Assets (net)
Depreciation and Amortisation Expense
Transferred from Revaluation Reserve
Transferred from Capital Reserve
Effect of Exchange Rate Change
Net gain on Sale of Investments
Exceptional Item
Dividend Income
Interest Income
Finance Costs

Operating Profit before Working Capital Changes
Adjusted for:

Trade and Other Receivables
Inventories
Trade and Other 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 / Transfer of Participating Interest
Advance for Transfer of Participating Interest
Purchase of Investments
Sale of Investments
Movement in Loans and Advances
Interest Income
Dividend Income

Net Cash (used in) Investing Activities

3
59
3
1
168
16,820
(2,634)
(65)
(848)
(531)
917
(5)
(1,742)
2,411

(7,103)
(4,092)
10,156

13
(70)
1
-
32
14,827
(2,356)
(70)
1,010
(1,696)
309
(30)
(4,167)
2,893

(1,068)
(7,724)
2,044

10,696

36,104

(6,748)

29,356
(1)
(4,881)
9

24,483

(16,381)
23,317
-
(3,32,414)
3,17,422
676
1,052
27

(6,301)

14,557

38,612

(1,039)

37,573
(3)
(4,243)
11

33,338

(33,865)
261
9,004
(2,56,162)
2,48,060
(1,345)
2,000
3

(32,044)

Consolidated Cash Flow Statement for the year 2011-12 (Contd.)

Reliance Industries Limited 159

C: CASH FLOW FROM FINANCING ACTIVITIES:

Proceeds from Issue of Share Capital
Proceeds from Issue of Share Capital to Minority
Buyback of Equity Shares
Proceeds from Long Term Borrowings
Repayment of Long Term Borrowings
Short Term Borrowings (net)
Dividends Paid (including dividend distribution tax)
Interest Paid

Net Cash (used in) / from Financing Activities

Net Increase in Cash and Cash Equivalents

Opening Balance of Cash and Cash Equivalents

Add: Upon addition of Subsidiaries

Closing Balance of Cash and Cash Equivalents

2011-12

87
7
(279)
6,108
(9,545)
2,389
(2,772)
(3,585)

(7,590)

10,592

30,139

40,731

(` in crore)
2010-11

193
3
-
20,475
(6,025)
6,252
(2,431)
(3,517)

14,950

16,244

13,895

30,139

13,891

30,139

Note :
Share application money given to Associates aggregating to ` NIL (Previous Year ` 17 crore) 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 20, 2012

K. Sethuraman
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 } Directors

160

Partnering India's new future. Sustainably.

SIGNIFICANT ACCOUNTING POLICIES ON CONSOLIDATED ACCOUNTS

A. Principles of consolidation

The consolidated financial statements relate to Reliance Industries Limited (‘the Company’) and its subsidiary
companies, associates and joint ventures. The consolidated financial statements have been prepared on the following
basis:

a) The financial statements of the Company and its subsidiary companies are combined on a line-by-line basis by
adding together the book values of like items of assets, liabilities, income and expenses, after fully eliminating
intra-group balances and intra-group transactions in accordance with Accounting Standard (AS) 21 -
“Consolidated Financial Statements”

Interest in Joint Ventures have been accounted by using the proportionate consolidation method as per
Accounting Standard (AS) 27 - “Financial Reporting of Interest in Joint Ventures”.

In case of foreign subsidiaries, being non-integral foreign operations, revenue items are consolidated at the
average rate prevailing during the year. All assets and liabilities are converted at rates prevailing at the end of
the year. Any exchange difference arising on consolidation is recognised in the exchange fluctuation reserve.

d) The difference between the cost of investment in the subsidiaries, over the net assets at the time of acquisition
of shares in the subsidiaries is recognised in the financial statements as Goodwill or Capital Reserve as the case
may be.

e) The difference between the proceeds from disposal of investment in subsidiaries and the carrying amount of its
assets less liabilities as of the date of disposal is recognised in the consolidated Profit and Loss account being
the profit or loss on disposal of investment in subsidiary.

f) Minority Interest’s share of net profit of consolidated subsidiaries for the year is identified and adjusted against
the income of the group in order to arrive at the net income attributable to shareholders of the Company.

g) Minority Interest’s share of net assets of consolidated subsidiaries is identified and presented in the consolidated

balance sheet separate from liabilities and the equity of the Company’s shareholders.

Investment in Associate Companies has been accounted under the equity method as per (AS 23) - “Accounting
for Investments in Associates in Consolidated Financial Statements”.

The Company accounts for its share in change in net assets of the associates, post acquisition, after eliminating
unrealised profits and losses resulting from transactions between the Company and its associates to the extent
of its share, through its Statement of Profit and Loss to the extent such change is attributable to the associates’
Profit or Loss through its reserves for the balance, based on available information.

The difference between the cost of investment in the associates and the share of net assets at the time of
acquisition of shares in the associates is identified in the financial statements as Goodwill or Capital Reserve as
the case may be.

k) As far as possible, the consolidated financial statements are prepared using uniform accounting policies for like
transactions and other events in similar circumstances and are presented in the same manner as the Company’s
separate financial statements.

Investments other than in subsidiaries and associates have been accounted as per Accounting Standard (AS) 13 on
“Accounting for Investments”.

C. Other significant accounting policies

These are set out under “Significant Accounting Policies” as given in the Company’s separate financial statements.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 161

The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.

SHARE CAPITAL

Authorised Share Capital
500,00,00,000 Equity Shares of ` 10 each
(500,00,00,000)

100,00,00,000 Preference Shares of ` 10 each
(100,00,00,000)

Issued, Subscribed and Paid up:
297,87,04,713 Equity Shares of ` 10 each fully
(298,10,19,381) paid up

Less: Calls in arrears - by others
[` 3,653 (Previous Year ` 3,653)]

TOTAL

As at
31st March, 2012

(` in crore)

As at
31st March, 2011

5,000

1,000

6,000

2,979

5,000

1,000

6,000

2,981

1.1 145,94,41,214 Shares out of the issued, subscribed and paid up share capital were allotted as Bonus Shares in the last five

(145,94,41,214) years by capitalisation of Securities Premium and Reserves.

1.2

12,93,92,979 Shares out of the issued, subscribed and paid up share capital were allotted in the last five years pursuant to

(12,93,92,979)

the various Schemes of amalgamation without payments being received in cash.

1.3 45,04,27,345 Shares out of the issued, subscribed and paid up share capital were allotted on conversion / surrender of
(45,04,27,345) Debentures and Bonds, conversion of Term Loans, exercise of warrants, against Global Depository Shares

(GDS) and re-issue of forfeited equity shares, since inception.

1.4 The reconciliation of the number of shares outstanding is set out below :

Particulars

Equity Shares at the beginning of the year

Add : Shares issued on exercise of Employee Stock Options

Less : Shares cancelled on buy back of Equity Shares

As at
31st March, 2012

No. of Shares

298,10,19,381

13,48,763

36,63,431

As at
31st March, 2011

No. of Shares

297,80,19,733

29,99,648

Equity Shares at the end of the year

297,87,04,713

298,10,19,381

1.5 The Company has reserved issuance of 13,39,30,481 (Previous Year 13,52,79,244) Equity Shares of ` 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 68,817 [Previous Year 35,200] Options to the eligible employees which includes 4,100 options at a price
of ` 972/- per option, 18,000 options at a price of ` 871/- per option, 23,717 options at a price of ` 847 per option, 15,000
options at a price of ` 765 per option and 8,000 options at a price of ` 715 per option (Previous Year, 16,000 options at a price
of ` 995 per option and 19,200 options at a price of ` 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.

1.6 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.

1.7 The Board of Directors of the Company approved the buyback of upto 12 crore fully paid up equity shares of
` 10/- each, at a price not exceeding ` 870/- payable in cash, upto an aggregate amount not exceeding ` 10,440 crore from the open
market through Stock Exchange(s). During the year the company has bought back and extinguished 36,63,431 Equity Shares of
` 10/- each.

162

Partnering India's new future. Sustainably.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

RESERVES AND SURPLUS

Revaluation Reserve

As per last Balance Sheet

Add: On Revaluation

Less: Transferred to Profit and Loss Account
(Refer Note No. 10.8)

Less: Transferred to / (from) Minority Interest

Less: Utilised on Demerger Adjustments

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 on

buy back of Equity Shares

Securities Premium Reserve

As per last Balance Sheet

Add : On issue of shares

Less : On Redemption / buy back of Debentures/Bonds

Less : On buy back of Equity Shares

Less : Elimination on Consolidation

Less : Calls in arrears - by others
(` 2,21,548; Previous Year ` 2,21,548)

Debentures Redemption Reserve

As per last Balance Sheet

(` in crore)

As at
31st March, 2012

As at
31st March, 2011

6,085

6,094

2,356

(2)

697

(24)

673

45,459

45,544

275

45,258

9,414

9,426

2,634

704

3,740

6,085

817

(55)

762

697

(142)

603

1,069

45,394

190

45,584

125

45,459

45,258

1,117

45,459

1,117

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 163

Statutory Reserve
As per last Balance Sheet
Less : Transferred to Minority Interest
(` 1,72,043; Previous Year ` 28,387)
Add : Transferred from Profit and Loss Account

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
As per last Balance Sheet
(Short) Provision for Tax for earlier years
[(` 28,34,742); Previous Year (` 36,78,049)]
Excess Provision for Tax for earlier years - Minority Interest
[` NIL; Previous Year ` 4,40,334)]
Add: Profit for the year

Less: Appropriations
Transferred to Statutory Reserve
Transferred to General Reserve
Transferred to Capital Redemption Reserve on buy back of
Equity Shares
Proposed Dividend on Equity Shares
[Dividend per Share ` 8.5/-; (Previous Year ` 8/-)]
Tax on Dividend

Proposed Dividend on Preference Shares
(Minority Interest ` 19,880/-; Previous Year ` 19,880/-)

Tax on Dividend on Preference Shares
(Minority Interest ` 3,225/-; Previous Year ` 3,225/-)

TOTAL

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

72
-

55
-

84,004
16,000

68,004
16,000

1,00,004

84,004

13,801
-

19,724

33,525

6
16,000
4

2,531

410

13,297
-

19,294

32,590

17
16,000
-

2,385

387

14,574

1,66,466

13,801

1,51,112

2.1

* Cumulative amount withdrawn on account of Depreciation on Revaluation is ` 2,563 crore.
In view of the loss for the year, the subsidiary Company Infotel Broadband Services Limited has not created the
Debenture Redemption Reserve of ` 152 crore (Previous Year ` 52 crore) in terms of section 117C of the Companies
Act, 1956. The Company shall create the Debenture Redemption Reserve out of profits, if any, in the future years.

164

Partnering India's new future. Sustainably.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

LONG TERM BORROWINGS

Secured

Non Convertible Debentures

Term Loans from Banks

Long Term Maturities of Finance Lease Obligation

Unsecured

Bonds / Debentures

Term Loans- from Banks

Deferred Payment Liabilities

TOTAL

(` in crore)

As at
31st March, 2012

As at
31st March, 2011

Non
Current

Current

Non
Current

Current

6,024

3,044

9,353

6,067

3,056

9,398

14,376

44,900

59,285

65,352

6,753

6,756

9,812

12,542

44,284

56,838

66,236

655

662

3,499

3,502

4,164

3.1 Non Convertible Debentures referred above to the extent of:

` 1,593 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.

` 5,000 crore are secured by way of first mortgage / charge on the immovable properties situated at Jamnagar
Complex (other than SEZ unit) of the Company.

` 1,720 crore are secured by way of first mortgage / charge on all the properties situated at Hazira Complex
and at Patalganga Complex of the Company.

` 50 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.

` 44 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.

` 500 crore are secured by way of first mortgage / charge on the immovable properties situated at Jamnagar
Complex (SEZ unit) of the Company.

Secured Term Loans from banks are secured by hypothecation of vehicles and are repayable over a period of 3 to 5 years.

Finance Lease Obligations are secured against leased assets

3.2

3.3

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 165

DEFERRED TAX LIABILITY (Net)

Deferred Tax Liability
Related to Fixed Assets
Deferred Tax Assets
Related to Fixed Assets
Disallowance under the Income Tax Act, 1961
Carried Forward Loss of Subsidiaries

TOTAL

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

14,336

12,479

1,577
93
1,099

318
189
901

2,769
11,567

1,408
11,071

LONG TERM PROVISIONS

(` in crore)
As at
31st March, 2011
207
Provisions for Annuities
7
Others #
TOTAL
214
# Includes provision for Decommissioning, Assets retirement obligations and Liability for derivative transaction.

As at
31st March, 2012
236
185
421

SHORT TERM BORROWINGS

Secured
Working Capital Loans
From Banks
Foreign Currency Loans
Rupee Loans

Unsecured
A.

Other Loans and Advances
From Banks
Foreign Currency Loans *
Rupee Loans

Loans from related parties (Refer Note No. 28)

B.
TOTAL

* Includes Buyers Credit

6.1. Working Capital Loans referred above to the extent of :

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

1,004
19

312
252

1,023

564

14,627
1,580

13,158
8

16,207
53
17,283

13,166
22
13,752

` 863 crore (Previous Year ` 563 crore) 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 receivable of
Oil and Gas Division.
` 160 crore (Previous Year ` NIL) is secured by hypothecation of Plant and Machinery.
` NIL (Previous Year ` 1 crore) are secured by way of lien against term deposits with banks.
6.2 Other loans and advances from banks include commercial paper of ` NIL (Previous Year ` NIL). Maximum balance

b)
c)

outstanding at any time during the year being ` NIL (Previous Year ` 4,825 crore).

166

Partnering India's new future. Sustainably.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

TRADE PAYABLES

Micro, Small and Medium Enterprises

Others

TOTAL

OTHER CURRENT LIABILITIES

Current maturities of long term debt (Refer Note No. 3)

Current maturities of finance lease obligations (Refer Note No. 3)

Interest accrued but not due on borrowings

Unclaimed Dividend #

Application money received and due for refund #

Unpaid matured debentures and interest accrued thereon #

Creditors for Capital Expenditure

Advance for Transfer of Participating Interest

Other Payables *

TOTAL

(` in crore)

As at
31st March, 2012

As at
31st March, 2011

40,335

40,368

36,099

36,107

(` in crore)

As at
31st March, 2012

As at
31st March, 2011

9,802

523

129

1,375

5,712

17,553

4,160

615

111

2,825

9,004

3,772

20,493

* Includes statutory dues, security deposits, Interest Accrued, advance from customers and Income received in

advance.

SHORT TERM PROVISIONS

Provisions for Superannuation/Gratuity/Leave Encashment

Proposed Dividend

Tax on Dividend

Provision for Wealth Tax

Provision for Income Tax

Other Provisions *

TOTAL

(` in crore)

As at
31st March, 2012

As at
31st March, 2011

235

2,531

410

1,098

4,403

276

2,385

387

1,587

4,742

* Includes primarily provision for customs duty, Excise Duty on Finished Goods, Other duties and taxes.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 167

10. FIXED ASSETS

(` in crore)

Description

Gross Block

Depreciation / Amortisation

Net Block

As at Additions/ Deductions/
01-04-2011 Adjustments Adjustments

As at

As at
31-03-2012 01-04-2011

For the
Year

Deductions/
Adjustments

Upto
31-03-2012

As at
31-03-2012

As at
31-03-2011

2,396
5,884
10,905
1,36,573
4,125
7,790
863
341
386
68
1,69,331

TANGIBLE ASSETS :
OWN ASSETS :
Leasehold Land
Freehold Land
Buildings
Plant & Machinery
Electrical Installations
Equipments $
Furniture & Fixtures
Vehicles
Ships
Aircrafts & Helicopters
Sub-Total
LEASED ASSETS :
Plant & Machinery
Ships
Sub-Total
Total (A)
INTANGIBLE ASSETS* :
Technical Knowhow fees
Software
Development Rights
Others
Total (B)
Total (A+B)
Previous Year
Capital Work-in-Progress
Intangible Assets under Development

3,266
616
61,195
3,605
68,682
2,38,293
2,24,126

270
10
2 8 0
1,69,611

200
360
639
4,113
208
385
129
82
-
-
6,116

4
-
4
6,120

203
6
20,165
171
20,545
26,665
15,251

12
22
86
722
19
34
12
39
-
23
9 6 9

-
-
-
9 6 9

-
1
30,513
-
30,514
31,483
1,084

2,584
6,222
11,458
1,39,964
4,314
8,141
9 8 0
3 8 4
3 8 6
4 5
1,74,478

2 7 4
1 0
2 8 4
1,74,762

3,469
6 2 1
50,847
3,776
58,713
2,33,475
2,38,293

272
-
2,728
55,674
1,432
1,405
364
172
240
28
62,315

137
10
1 4 7
62,462

1,565
444
14,961
761
17,731
80,193
63,934

117
-
343
8,321
203
404
69
50
14
5
9,526

31
-
3 1
9,557

160
43
4,957
110
5,270
14,827
16,820

(4)
-
(11)
397
2
4
3
25
-
10
4 2 6

-
-
-
4 2 6

-
(8)
(59)
-
(67)
3 5 9
561

3 9 3
-
3,082
63,598
1,633
1,805
4 3 0
1 9 7
2 5 4
2 3
71,415

1 6 8
1 0
1 7 8
71,593

1,725
4 9 5
19,977
8 7 1
23,068
94,661
80,193

2,191
6,222
8,376
76,366
2,681
6,336
5 5 0
1 8 7
1 3 2
2 2
1,03,063

1 0 6
-
1 0 6
1,03,169

1,744
1 2 6
30,870
2,905
35,645
1,38,814
1,58,100
6,495
18,868

2,124
5,884
8,177
80,899
2,693
6,385
499
169
146
40
1,07,016

133
-
1 3 3
1,07,149

1,701
172
46,234
2,844
50,951
1,58,100

5,339
22,835

$ Includes Office Equipments
* Other than internally generated

10.1 Leasehold Land includes ` 203 crore (Previous Year ` 203 crore) in respect of which lease-deeds are pending

execution.

10.2 Buildings include :

i) Cost of shares in Co-operative Housing Societies ` 1 crore (Previous Year ` 1 crore).

ii) ` 5 crore (Previous Year ` 5 crore) in respect of which conveyance is pending.

iii) ` 93 crore (Previous Year ` 93 crore) in shares of Companies / Societies with right to hold and use certain area of

Buildings.

168

Partnering India's new future. Sustainably.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

10.3 Intangible assets - Others include :

ii)

Jetties amounting to ` 812 crore (Previous Year ` 647 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.
` 2,919 crore (Previous Year ` 2,919 crore) in shares of companies and lease premium paid with right to hold
and use Land and Buildings.

10.4 Capital Work-in-Progress and Intangible Assets under Development include:

ii)

` 3,948 crore (Previous Year ` 2,460 crore) on account of project development expenditure.
` 1,406 crore (Previous Year ` 1,594 crore) on account of cost of construction materials at site.
10.5 Gross Block includes ` 11 crore added on revaluation of Buildings, Plant & Machinery and Storage Tanks as at
31.12.2010, ` 12,901 crore added on revaluation of Buildings, Plant & Machinery and Equipments as at 01.01.2009,
` 238 crore added on revaluation of Buildings, Plant & Machinery and Storage Tanks as at 31.12.2009 and ` 155
crore added on revaluation of Buildings, Plant & Machinery and Storage Tanks as at 22.12.2008, based on reports
issued by international valuers.

10.6 Additions in Plant and Machinery, Intangible Assets - Development Rights and Intangible Assets under
Development include ` 7,924 crore (net loss) [Previous Year ` 41 crore (net gain)] on account of exchange
difference during the year.

10.7 Project Development Expenditure:

(in respect of Projects upto 31st March, 2012, included under Capital Work-in-Progress and Intangible Assets
under Development)

Opening Balance

Add: Transferred from Profit and Loss Statement

(Refer Note No. 26)

Expenses on Project under Construction

Interest Capitalised

In respect of Subsidiary acquired
during the year

Less: Project Development Expenses Capitalised

during the year

2011-12

2,460

(` in crore)

2010-11

2,005

123

255

1,208

1,024

1,586

1,078

623

Closing Balance

2,460
10.8 The Gross Block of Fixed Assets includes ` 38,517 crore (Previous Year ` 38,517 crore) on account of revaluation
of Fixed Assets. Consequent to the said revaluation, there is an additional charge of depreciation of ` 2,356 crore
(Previous Year ` 2,634 crore) and an equivalent amount, has been withdrawn from Revaluation Reserve and
credited to the Statement of Profit and Loss. This has no impact on profit for the year.

3,948

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 169

11. NON-CURRENT INVESTMENTS

(Long Term Investments)

A .

INVESTMENTS IN ASSOCIATES

In Equity Shares - Quoted, fully paid up

68,60,064 Reliance Industrial Infrastructure Limited

(68,60,064) of ` 10 each

In Equity Shares - Unquoted, fully paid up

11,08,500 Reliance Europe Limited of Sterling Pound 1 each

(11,08,500)

22,500 Reliance LNG Limited of ` 10 each

(22,500)

(` 2,22,012 ; Previous Year ` 2,22,012)
5,000 Reliance Commercial Trading Private Limited

(5,000) of ` 10 each (` NIL ; Previous Year ` NIL)

74,99,990 Reliance Commercial Dealers Limited of ` 10 each

(49,99,990)

10,40,000 Delta Hydrocarbons S.A. Luxembourg

(10,40,000)

7,12,47,314 Delta Corp East Africa Limited of KES 10 each

(7,12,47,314)

62,63,125 Indian Vaccines Corporation Limited of ` 10 each

(62,63,125)

64,29,20,000 Gujarat Chemicals Port Terminal Company Limited

(64,29,20,000) of ` 1 each

26,00,000 Reliance Utilities Private Limited Class ‘A’ Shares
(22,50,000) of ` 1 each (` 20,50,000 ; Previous Year ` 22,50,000)

26,00,000 Reliance Utilities and Power Private Limited Class ‘A’ Shares

(22,70,000)

of ` 1 each (` 19,90,000 ; Previous Year ` 22,70,000)

5,000 Gaurav Overseas Private Limited of ` 10 each

(5,000)

2,000 Reliance Investments Holdings B.V.

(2,000) of Euro 50 each

25,000 Paradise Global Enterprises B.V. of Euro 1 each

(25,000)

(` 17,16,688 ; Previous Year ` 14,93,750)
250 Reliance Investments Sarl of Euro 25 each

(250)

(` 69 ; Previous Year ` 60)

37,24,971 Deccan Cargo & Express Logistics Private Limited

(37,24,971) of ` 100 each

EFS Midstream LLC

49,04,372 Algenol LLC

(-)

2,20,00,000 Aurora Algae Inc.

(-)

46,87,500 Extramarks Education Private Limited of ` 10 each

(-)

As at
31st March, 2012

(` in crore)
at
31st March, 2011

125

1,133

503

117

125

2,106

114

527

708

170

Partnering India's new future. Sustainably.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

2,915

In Preference Shares - Unquoted, Fully paid up

50,00,00,000 9% Non Cumulative Redeemable Preference Shares of

2,000

(50,00,00,000) Reliance Gas Transportation Infrastructure Limited

of ` 10 each

2,000

In Debentures - Unquoted, Fully Paid Up

4,22,335 Zero Coupon Secured Optionally Fully

(4,22,335) Convertible Debentures of Reliance Commercial

Trading Private Limited of ` 1,000 each.

30,47,704 Compulsorily Convertible Debentures of

(30,47,704) Deccan Cargo & Express Logistics Private Limited

of ` 100 each.

Total Investment in Associates (A)

INVESTMENTS IN OTHERS

In Government and other Securities - Unquoted

6 Years National Savings Certificate (Includes deposited
with Sales Tax Department and other Govt. Authorities)
(` 19,43,420 ; Previous Year ` 10,66,420)

Trade Investments

In Equity Shares-Unquoted, fully paid up

1,00,00,000 Petronet India Limited of ` 10 each

(1,00,00,000)

25 The Colaba Central Co-operative Consumer’s

(25) Wholesale and Retail Stores Limited.
(Sahakari Bhandar) of ` 200 each
(` 5,000 ; Previous Year ` 5,000)

5,000 Retailers Association’s Skill Council of India of ` 10 each

(-)

(` 1,00,000 ; Previous Year ` NIL)

Other Investments

In Equity Shares-Quoted, fully paid up

14,87,160 Den Networks Limited of ` 10 each

(19,84,860)

10,59,07,273 EIH Limited
(8,45,92,273) of ` 2 each

4,85,32,764 Himachal Futuristic Communications Limited

(4,85,32,764) of ` 1 each

4,276

1,433

1,241

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 171

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

8,72,011 HDFC Bank Limited of ` 2 each

(-)

1,44,00,500 HDFC Limited of ` 2 each

(-)

2,28,232 Axis Bank Limited of ` 10 each

(-)

2,67,751 Canara Bank Limited of ` 10 each

(-)

9,12,919 ICICI Bank Limited of ` 10 each

(-)

1,80,258 Punjab National Bank of India of ` 10 each

(-)

5,40,727 State Bank of India of ` 10 each

(-)

In Equity Shares-Unquoted, fully paid up

85,000 National Stock Exchange of India Limited

(85,000) of ` 10 each

1,000 Air Control and Chemical Engineering Company
(1,000) Limited of ` 1 each (` 1,500 ; Previous Year ` 1,500)

1,500 Reliance Research and Development Services Private
(1,500) Limited of `10 each (` 15,000 ; Previous Year ` 15,000)

18 Parabool Enterprises B.V.

(18) of Euro 100 each

2,53,800 Shinano Retail Private Limited of `10 each
(1,800)

(` 25,38,000 ; Previous Year ` 18,000)

- Sharanya Trading Private Limited of ` 10 each

(1,800)

(` NIL ; Previous Year ` 18,000)
1,800 Teesta Retail Private Limited of `10 each
(` 18,000 ; Previous Year ` 18,000)

(1,800)

5,000 Reliance Apparel India Private Limited of `10 each

(-)

(` 1,00,000 ; Previous Year ` NIL)

33,78,378 Terra Power LLC

(-)

In Preference Shares - Unquoted, Fully paid up

- 10% Non Cumulative Optionally Convertible

(14,00,000) Preference Shares of Shinano Retail Private Limited

of ` 10 each

949

112

2,736

1,315

700

172

Partnering India's new future. Sustainably.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

In Debentures - Quoted, fully paid up

(5,000)

- Citi Corporation Finance (India) Limited
- Secured Non Convertible Redeemable
Debentures of ` 1,00,000 each - Series 324

(5,000)

- Citi Corporation Finance (India) Limited
- Secured Non Convertible Redeemable
Debentures of ` 1,00,000 each - Series 325

(5,000)

(40,000)

- Citi Corporation Finance (India) Limited
- Secured Non Convertible Redeemable
Debentures of ` 1,00,000 each - Series 331
- Citifinancial Consumer Finance India Limited
- Non Convertible Redeemable Debentures
of ` 1,00,000 each - Series 428

In Debentures - Unquoted, fully paid up

1,00,00,000 Zero Coupon Unsecured Optionally Fully

(1,00,00,000) Convertible Debentures of Reliance KG Exploration

& Production Private Limited of ` 10 each

In Units of Fixed Maturity Plan - Quoted, fully paid up
(Face Value of ` 10 each)

5,00,00,000 Axis Fixed Term Plan - (Series 21/22) - Growth

(-)

47,00,00,000 Birla Sunlife Fixed Term Plan

(-)

- (Series ES/EV/EY/FC) - Growth

40,50,00,000 DSP Blackrock Fixed Maturity Plan

(15,00,00,000)

- (Series 18/37/38/43) - Growth

20,30,00,000 DWS Fixed Maturity Plan

(-)

- (Series 6/7/9/10) - Growth
54,70,00,000 HDFC Fixed Maturity Plan
- (Series XVI/XXI) - Growth
4,50,00,000 HSBC Fixed Term Plan - Series 86 - Growth

(17,50,00,000)

(-)

71,50,00,000 ICICI Prudential Fixed Maturity Plan - Cumulative
(3,00,00,000)
19,20,00,000 IDFC Fixed Maturity Plan - (Series 7/8/65) - Growth

(Series 62/63/54)

(-)

3,50,00,000 India Bulls Fixed Maturity Plan - Growth

(-)

15,00,00,000 JP Morgan Fixed Maturity Plan - Series VI - Growth

(-)

27,00,00,000 Kotak Fixed Maturity Plan - (Series 76/80/82) - Growth

(-)

3,50,00,000 LIC Nomura MF Fixed Maturity Plan

(-)

- Series 52 - Growth

470

405

203

547

715

192

150

270

400

550

150

175

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 173

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

17,30,00,000 Religare Fixed Maturity Plan
- (Series XIII/XIV) - Growth
16,00,00,000 SBI Debt Fund - (Series 11/12/13) - Growth

(-)

(40,00,00,000)

4,00,00,000 Sundaram Fixed Term Plan - Growth

(-)

13,50,00,000 Tata Fixed Maturity Plan - (Series 39/40) - Growth

(-)

- Canara Robeco Fixed Maturity Plan

(6,00,00,000)

- Series 6 - Growth Plan

In Units-Unquoted, fully paid up

(-)

1,15,35,485 DWS Insta Cash Plus Fund - Institutional
- Bonus Option of ` 10 each
3,37,19,111 DWS Insta Cash Plus Fund
- Bonus Option of ` 10 each

(-)

In Public Sector Undertakings / Public Financial Institutions
& Corporate Bonds - Quoted, fully paid up

1,287 11.80% TISCO Perpetual Bonds

(-) of ` 10,00,000 each

In Others

7,20,000 Faering Capital India Evolving Fund

(4,50,000) of ` 1,000 each

4,05,950 HDFC India Real Estate of ` 1,000 per unit

(8,85,476)

50,000 JM Financial Property Fund - I of ` 9,722.59 per unit

(50,000)

(Previous Year ` 10,000 per unit)
MPM Bioventure IV - QP, LP, USA

5,000 Multiples Private Equity Fund Scheme 1

(5,000) of ` 1,00,000 each (` 25,700 paid up)

2,000 Peninsula Realty Fund of ` 1,00,000 each.

(2,000)

21,600 Urban Infrastructure Opportunities Fund

(20,000) of ` 91,500 per unit (Previous Year ` 1,00,000 per unit)

- Urban Infrastructure Opportunities Fund
(8,000) of ` 1,00,000 per unit (` 20,000 paid up)
25,000 LICHFL Urban Development Fund
(-) of ` 10,000 each (` 2,000 paid up)

Sundaram Mutual Fund (` 5,000 ; Previous Year ` NIL)

173

160

134

3,624

131

101
13

201

-
507

400

815

92
3

200

-
525

Total Long Term Investments (A + B)

Total Investments in Others (B)

7,147
11,423

3,996
6,911

174

Partnering India's new future. Sustainably.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

12. LONG-TERM LOANS AND ADVANCES

(Unsecured Considered Good)

Capital Advances

Deposits#

Loans and Advances to Related Parties (Refer Note No. 28)

Advance Income Tax (Net of Provision)

Other Loans and Advances*

TOTAL

As at
31st March, 2012

(` in crore)
As at

31st March, 2011

2,260

2,453

277

1,329

422

6,741

1,568

2,141

146

1,428

1,556

6,839

# Includes ` 1,873 crore (Previous Year ` 1,705 crore) relating to Deposits with related parties (Refer Note No. 28)

* Includes claims receivable from statutory authorities, loans to employees etc.

13. OTHER NON CURRENT ASSETS

Miscellaneous Expenditure (to the extent not written off or adjusted)

TOTAL

14. CURRENT INVESTMENTS

Investments in Debentures - Quoted, fully paid up

5,000 Citi Corporation Finance (India) Limited -
(-) Secured Non Convertible Redeemable

Debentures of ` 1,00,000 each - Series 331

Investments in Equity Shares-Quoted, fully paid up

4,61,520 Den Networks Limited of ` 10 each

(-)

Investments in Government Securities - Quoted, fully paid up

As at
31st March, 2012

(` in crore)
As at

31st March, 2011

(` in crore)
As at
31st March, 2011

7.59 % GOI 2016

7.99 % GOI 2017

6.35 % GOI 2020
8.53 % MHA SDL 2020 (` 30,000)
8.13 % OIL MKT COS SB 2021
(` 14,80,000 ; Previous Year ` NIL)
8.13% GOI 2022 (` 48,000 ; Previous Year ` NIL)
7.80% GOI 2020 (` 7,91,000 ; Previous Year ` NIL)
8.65% WB 2021 (` 1,00,000 ; Previous Year ` NIL)
8.75% SAIL

9.64% PGC 2016 Bond

9.35% PGC 2016 Bond

8.08% GOI 2022

8.97% Kerala GS 2022

9.48% REC SR 101

-
-

3
-

-
-

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 175

As at
31st March, 2012

(` in crore)
As at

31st March, 2011

Investments in Units of Fixed Maturity Plan - Quoted, fully paid up
(Face Value of ` 10 each)

6,50,00,000 Axis Fixed Term Plan - (Series 13/15/16) - Growth

(6,00,00,000)

1,20,00,000 Baroda Pioneer Fixed Maturity Plan - (Series 1/2)

(1,50,00,000)
61,00,00,000 Birla Sun Life Fixed Term Plan -

- Growth

(1,38,00,00,000)

(Series CM CO to CW/DB/DL/DN/DO/DQ/DS/EW/FA)
Growth

10,00,00,000 Canara Robeco Fixed Maturity Plan - (Series 6 -13/ 7)
(5,00,00,000)
41,00,00,000 DSP Blackrock Fixed Maturity Plan
- (Series 7/10/11 to18/39) - Growth

- Growth

(75,00,00,000)

14,30,00,000 DWS Fixed Maturity Plan - (Series 11/90/92) - Growth

(-)

- Fidelity Mutual Fund - Series 5, Plan F - Growth

(3,50,00,000)
44,00,00,000 HDFC Fixed Maturity Plan

(13,80,00,000)

- (Series XIV/XVI/XVIII/XXI/XIX) - Growth

- HSBC Fixed Term (Series 79) - Growth

(10,00,00,000)

39,00,00,000 ICICI Prudential Fixed Maturity Plan

(1,26,50,00,000)

- Series 51/54/55/56/59/63 - Cumulative

5,00,00,000 ICICI Prudential Fixed Maturity Plan
- Series 55 - Dividend

(-)

12,04,25,008 ICICI Prudential Interval Fund

- Institutional Cumulative
IDBI Fixed Maturity Plan (Series I) - Growth

(-)
-
(7,50,00,000)
15,50,00,000 IDFC Fixed Maturity Plan

(47,00,00,000)

- Yearly (Series 37/38/40/41/42/52/64/66) - Growth

10,50,00,000 JPM Fixed Maturity Plan - (Series 8) - Growth

(-)
-
(18,00,00,000)

JPMorgan India Fixed Maturity Plan (Series 1)
- Growth

23,00,00,000 Kotak Fixed Maturity Plan (Series 57/60/62/83)

(-)

- Growth

6,00,00,000 Religare Fixed Maturity Plan (Series- IX/VIII)

(-)

- Growth Plan

7,650,00,000 SBI Debt Fund (Series- 6/7/9/10/11/12/17/18/19)

(32,50,00,000)

- Growth

2,20,00,000 Sundaram Fixed Term Plan - Growth

(2,50,00,000)
24,00,00,000 Tata Fixed Maturity Plan (Series 31/34/36/37) - Growth
(6,40,00,000)

6,66,98,706 UTI Fixed Income Interval Fund (Series II/III/IX-I)

(15,00,00,000)

- Growth

2,61,12,073 UTI Fixed Income Interval Fund (Series IX-IV)

(-)

- Dividend - Reinvestment

610

100

410

143

440

390

130

155

105

230

765

240

1,380

750

138

100

1,265

470

180

325

150

4,036

5,082

176

Partnering India's new future. Sustainably.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

As at
31st March, 2012

(` in crore)
As at

31st March, 2011

1,021

15,720

Investment in Units - Quoted

41,19,71,606 Birla Sunlife Dynamic Bond Fund - Retail - Growth

(-)

2,48,38,796 DWS Premium Bond Fund - Premium Plus Growth Plan

(-)

3,77,86,469 DWS Short Maturity Fund - Premium Plus Growth Plan

(-)

3,99,55,814 ICICI Prudential Institutional Short Term Plan

(-)

- Cumulative Option

7,37,24,677 LIC Nomura MF Liquid Fund - Growth Plan

(-)

Investments in certificate of deposits with Scheduled Banks - Quoted

Investments in Debentures/Bonds - Quoted, fully paid up

250 Axis Bank Limited

(-)

1,000 CitiFinancial Consumer Finance

(1,000)

India Limited
1,250 EXIM Bank of India

(2,250)
18,387 Housing Development Finance

(15,187) Corporation Limited

10,750 Infrastructure Development Finance
(5,000) Company Limited
15,095 India Infrastructure Finance Company Limited

(-)

32,62,862 Indian Railway Finance Corporation Limited

(1,450)

5,550 LIC Housing Finance Limited

(12,500)

3,500 National Bank for Agriculture and Rural Development

(-)

49,44,752 National Highways Authority of India

(-)

42,76,093 Power Finance Corporation Limited

(5,500)

920 Power Grid Corporation of India Limited

(920)

450 Rural Electrification Corporation Limited

(1,350)

550 Steel Authority of India Limited

(1,500)

1,370 Tata Power Company Limited

(-)

250 Tata Steel Limited

(-)

730

141

120

1,822

1,060

149

350

545

349

494

858

112

142

4,632

220

1,531

483

139

1,218

552

112

131

146

6,247

4,630

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 177

Investments in Commercial Paper - Quoted

Housing Development Finance Corporation Limited

Investments in Units-Unquoted

15,00,000 Birla Sun Life Short Term Fixed Maturity Plan Series I

(10,00,000) of ` 10 each

- DWS Insta Cash Plus Fund - Institutional

(1,15,35,485)

- Bonus Option of ` 10 each
- DWS Insta Cash Plus Fund

(3,37,19,111)

- Bonus of ` 10 each

(96,14,297)

7,94,199 HDFC Cash Management Fund - Saving Plan
- Daily Dividend Reinvestment of ` 10 each
- HDFC Mutual Fund - Cash Management Fund

(86,548) of ` 10 each

- HDFC Liquid Fund - Growth

(17,52,359) of ` 10 each
1,27,72,028 HDFC Liquid Fund Premium - Daily Dividend

(12,26,39,186)

-
( 2,328)

re-investment of ` 10 each
HDFC Floating Rate Income Fund-Short Term Plan
- Wholesale Option - Daily Dividend Reinvestment
of `10 each (` NIL ; Previous Year ` 23,466)

26,04,607 ICICI Prudential Institutional Liquid Plan

(20,79,483)

- Super Institutional Daily Dividend of ` 100 each

4,50,000 Kotak Fixed Maturity Plan 6M Series 9

(7,50,000) of ` 10 each (` 25,00,000)

- Reliance Regular Saving Fund - Debt Plan

(1,54,91,563)

Institutional Dividend of ` 12 each

- SBI-Magnum Insta Cash Fund - Cash Option

(6,44,967) of ` 10 each

- SBI MF SDFC 90D

(2,75,10,915) of ` 10 each

1,41,586 JM High Liquidity Fund

(-)

(` 25,00,000 ; Previous Year ` NIL)

5,00,120 Reliance Fixed Horizon Fund XXI - Series 3 - Growth

(-)

39,140 SBI Premier Liquid Fund - Super Institutional - Growth

(-)

9,09,761 Tata Fixed Income Portfolio Fund - B2

(-)

As at
31st March, 2012

(` in crore)
As at

31st March, 2011

150

Total Current Investments

27,173

237

14,685

178

Partnering India's new future. Sustainably.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

15.

INVENTORIES

Raw Materials

Raw Materials in Transit

Stock-in-Process

Stock-in-Trade

Finished Goods

Stores, Chemicals and Packing Materials

TOTAL

16. TRADE RECEIVABLES

(Unsecured and Considered Good)

Over six months

Others

TOTAL

17. CASH AND BANK BALANCES

Balance with Banks #

Cash on hand

Fixed deposits with banks *

TOTAL

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

8,446

11,008

10,535

1,935

11,218

3,550

46,692

6,200

8,446

9,879

1,158

9,807

3,030

38,520

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

16,889

16,939

15,667

15,696

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

1,412

39,285

40,731

845

29,264

30,139

# Balance with Banks includes Unclaimed Dividend of ` 129 crore (Previous Year ` 111 crore)

* Fixed deposits with banks include deposits of ` 6,891 crore (Previous Year ` 14,611 crore) with maturity of more

than 12 months.

18.

SHORT-TERM LOANS AND ADVANCES
(Unsecured and Considered Good)

Loans and Advances to Related Parties
(Refer Note No. 28)

Balance with Customs, Central Excise Authorities

Deposits

Others*#

As at

(` in crore)
As at

31st March, 2012

31st March, 2011

1,861

378

7,503

1,484

394

4,006

TOTAL
* Netted off for Loans and Advances considered doubtful ` 72 crore (Previous Year ` 72 crore)
# Includes primarily Interest Receivable on Fixed Deposits with banks, Bond Application Money, Advance to

9,754

5,891

sundry creditors, Forward Premium on derivatives contracts and advance to employees.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 179

19. OTHER CURRENT ASSETS

Interest accrued on Investment

Share Application Money

Others *

TOTAL

* Includes Interest Receivables and Contract Revenue Receivables.

20. REVENUE FROM OPERATIONS

Sale of Products

Income from Services

TOTAL

Less: Excise Duty/ Service Tax Recovered

21. OTHER INCOME

Interest

From Current Investments

From Long Term Investments

From Others

Dividend

From Current Investments

From Long Term Investments

Net Gain on Sale of Investments

From Current Investments

From Long Term Investments

Adjustment to the carrying amount of investments (` 14,64,610)

Share in Associates

Other non operating income

TOTAL

(` in crore)

As at
31st March, 2012

As at
31st March, 2011

261

3,143

156

3,560

2011-12

3,67,560

1,011

3,68,571

10,070

3,58,501

2011-12

227

2,274

2,563

(` in crore)

2010-11

2,76,079

293

2,76,372

10,561

2,65,811

(` in crore)

2010-11

751

129

3,287

1,026

670

487

1,253

4,167

1,742

512

131

(112)

1,696

231

6,194

531

(60)

324

2,543

180

Partnering India's new future. Sustainably.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

22. CHANGES IN INVENTORIES OF FINISHED GOODS,

STOCK-IN-PROCESS AND STOCK-IN-TRADE

2011-12

(` in crore)
2010-11

Inventories (at close)

Finished Goods / Stock-in-Trade

Stock-in-Process

Inventories (at commencement)

Finished Goods / Stock-in-Trade

Stock-in-Process

Opening Stock of Subsidiaries acquired during the year

TOTAL

23. EMPLOYEE BENEFITS EXPENSE

Salaries and Wages

Contribution to Provident and Other Funds

Staff Welfare Expenses

TOTAL

24.

FINANCE COSTS

Interest Expenses

Other borrowing costs

Applicable loss on foreign currency
transactions and translation

TOTAL

25. DEPRECIATION AND AMORTISATION EXPENSE

Depreciation and Amortisation

Less: Transferred from Revaluation Reserve (Refer Note No. 10.8)

Less: Transferred from Capital Reserve

TOTAL

13,153

10,535

10,965

9,879

20,844

10,965

9,879

23,688

20,844

9,553

6,827

16,380

20,844

(2,844)

2011-12

3,378

295

282

3,955

2011-12

2,187

683

2,893

2011-12

14,827

2,356

12,401

16,386

(4,458)

(` in crore)

2010-11

2,781

308

235

3,324

(` in crore)

2010-11

2,208

183

2,411

(` in crore)

2010-11

16,820

2,634

14,121

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 181

26. OTHER EXPENSES

Manufacturing expenses
Stores, Chemicals and Packing Materials
Electric Power, Fuel and Water
Labour, Processing, Production Royalty
and Machinery Hire Charges
Repairs to Building
Repairs to Machinery
Exchange Difference (Net)
Excise Duty #
Lease Rent

Land Development and Construction Expenditure
Selling and distribution expenses
Warehousing and Distribution Expenses
Sales Tax /VAT/Service Tax
Other Selling and Distribution Expenses

Establishment expenses
Professional Fees
General Expenses *
Rent
Insurance
Rates & Taxes
Other Repairs
Travelling Expenses
Payment to Auditors
Loss on Sale / Discard of Assets
Investments Written Off ^
Charity and Donations

2011-12

(` in crore)
2010-11

11,751
104

6,029

3,943
4,740

1,876
115
849
255
(28)
1

4,747
824
458

749
1,216
574
557
117
306
149
22
55
51
290

3,796
2,834

2,421
101
752
(248)
95
3

4,636
761
493

557
1,671
455
553
98
292
124
18
193
110
144

9,754
190

5,890

Less: Transfer to Project Development Expenditure (Net)
TOTAL

4,086
123
21,847

4,215
30
20,019

# Excise Duty shown under expenditure represents the aggregate of excise duty borne by the Company and

difference between excise duty on opening and closing stock of finished goods.

* Includes expenses incurred in Oman- Block 18, Oman- Block 41 and East Timor-Block K amounting to ` 258

crore (Previous Year ` 807 crore), an exceptional item.

^ An exceptional item

26.1 A sum of ` 1 crore (net debit) [Previous Year ` 3 crore (net debit)] is included under establishment expenses

representing Net Prior Period Items.

182

Partnering India's new future. Sustainably.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

2011-12
19,724

2010-11
19,294

19,724
20,033
298,18,71,615

19,294
20,211
297,94,96,405

66.15
67.18

10.00

64.75
67.83

10.00

Relationship

Associate Companies /

Joint Ventures

27. EARNINGS PER SHARE (EPS)

ii)

Net Profit after tax (after adjusting Minority Interest)
as per Statement of Profit and Loss (` in crore)
(Short) provision for tax for earlier years (` in crore)
[(` 28,34,742); Previous Year (` 32,37,715)]
Net profit attributable to equity shareholders (` in crore)
iii)
Net Profit before Exceptional item (` in crore)
iv)
v) Weighted Average number of equity shares used

as denominator for calculating EPS
Basic and Diluted Earnings per share (`)

vi)
vii) Basic and Diluted Earnings (before exceptional items)

per share (`)

viii) Face Value per equity share (`)

28. Related Party Disclosures :

(i) List of related parties and relationships:

Sr No.

Name of the Related Party

2.
3.

4.
5.

6.
7.

9.
10.

11.
12.

13.

14.
15.

16.
17.

18.
19.

20.

21.
22.

23.

Reliance Industrial Infrastructure Limited

Reliance Europe Limited
Reliance LNG Limited

Indian Vaccines Corporation Limited
Gujarat Chemicals Port Terminal Company Limited

Reliance Utilities and Power Private Limited
Reliance Utilities Private Limited

Reliance Ports and Terminals Limited

Reliance Gas Transportation Infrastructure Limited
Reliance Commercial Dealers Limited

Reliance Commercial Trading Private Limited
Delta Hydrocarbons S A Luxembourg

Delta Corp East Africa Limited

Diesel Fashion India Reliance Private Limited
Atri Exports Private Limited

Shree Salasar Bricks Private Limited
N.C. Trading Company Private Limited

KCIPI Trading Company Private Limited
Prakhar Commercials Private Limited

Pepino Farms Private Limited

Marugandha Land Developers Private Limited
Jaipur Enclave Private Limited

Einsten Commercials Private Limited

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 183

Sr No.

Name of the Related Party

Relationship

24.

25.

26.

27.

28.

29.

30.

31.

32.

33.

34.

35.

36.

37.

38.

39.

40.

41.

42.

43.

44.

45.

46.

47.

48.

49.

50.

51.

52.

53.

54.

55.

56.

57.

58.

59.

Ashwani Commercials Private Limited

Vishnumaya Commercials Private Limited

Carin Commercials Private Limited

Netravati Commercials Private Limited

Rakshita Commercials Private Limited

Kaniska Commercials Private Limited

Rocky Farms Private Limited

Centura Agro Private Limited

Fame Agro Private Limited

Noveltech Agro Private Limited

Honeywell Properties Private Limited

Parinita Commercials Private Limited

Chander Commercials Private Limited

Creative Agrotech Private Limited

Reliance-Vision Express Private Limited

Marks and Spencer Reliance India Private Limited

Reliance Vornado Development Private Limited

Reliance Vornado Management Private Limited

Reliance-GrandVision India Supply Private Limited

Office Depot Reliance Supply Solutions Private Limited

Supreme Tradelink Private Limited

Reliance Paul And Shark Fashions Private Limited

Gaurav Overseas Private Limited

Reliance Innovative Building Solutions Private Limited

Reliance Investments Holdings B.V.

Reliance Investments Sarl

Paradise Global Enterprises B.V.

Deccan Cargo and Express Logistics Private Limited

IMG Reliance Private Limited

EFS Midstream LLC

Zegna South Asia Private Limited

Basis Point Securities Private Limited

India Gas Solutions Private Limited

Algenol LLC

Aurora Algae Inc.

Extramarks Education Private Limited

Associate Companies /

Joint Ventures

184

Partnering India's new future. Sustainably.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Sr No.

Name of the Related Party

Relationship

60.
61.
62.
63.
64.

65.
66.
67.
68.
69.

Shri Mukesh D. Ambani
Shri Nikhil R. Meswani
Shri Hital R. Meswani
Shri P.M.S. Prasad
Shri P. K. Kapil

Dhirubhai Ambani Foundation
Jamnaben Hirachand Ambani Foundation
Hirachand Govardhandas Ambani Public Charitable Trust
HNH Trust and HNH Research Society
Reliance Foundation

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.
1.

(Excluding reimbursements)
Purchase of Fixed Assets

Purchase / Subscription of Investments

Net Loans and advances given / (returned)

Unsecured Loans (taken) / repaid

Revenue from Operations

Other Income

Purchases / Material Consumed

Electric Power, Fuel and Water

Hire Charges

10.

Employee Benefits Expense

11.

Payment to Key Managerial Personnel

12.

Sales and Distribution Expenses

13.

Professional Fees

14. General expenses

15. Donations

Associates Key Managerial Others

(` in crore)
Total

248
144
1,106
693
221
(9)
(27)
310
321
233
7
6
151
1
1,140
917
408
790
5
21
-
-
2,381
2,573
36
17

-
12
-
-

Personnel
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
44
41
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
210
26

248
144
1,106
693
221
(9)
(27)
310
321
233
7
6
151
1
1,140
917
408
790
5
21
44
41
2,381
2,573
36
17
-
12
210
26

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 185

Sr. Nature of Transactions
No.

(Excluding reimbursements)

16.

Finance Cost

17.

Investment written off (net)

Balance as at 31st March, 2012
18.

Investments

19. Trade Receivables

20. Loans & Advances

21. Deposits

22. Unsecured Loan

23. Trade and Other Payables

24.

Financial Guarantees

25.

Performance Guarantees

Note :
1.

Figures in Italic represents Previous Year’s amount.

Associates Key Managerial Others

Personnel

(` in crore)
Total

33
24
51
-

4,097
2,860
26
14
289
153
1,873
1,705
53
22
498
354
1,137
716
1
7

-
-
-
-

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

-
-
-
-

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

33
24
51
-

4,097
2,860
26
14
289
153
1,873
1,705
53
22
498
354
1,137
716
1
7

Disclosure in respect of Material Related Party Transactions during the year :
1.
2.

Purchase of Fixed Assets include Reliance Ports and Terminals Limited ` 248 crore (Previous Year ` 144 crore).
Purchase / Subscription of Investments include Gujarat Chemicals Port Terminal Company Limited ` NIL (Previous
Year ` 52 crore), Deccan Cargo & Express Logistics Limited ` NIL (Previous Year ` 114 crore), EFS Midstream LLC
` 474 crore (Previous Year ` 527 crore), Reliance Commercial Dealers Limited ` 2 crore (Previous Year
` NIL), Delta Corp East Africa Limited ` 9 crore (Previous Year ` NIL), Algenol LLC ` 504 crore (Previous Year
` NIL), Aurora Algae LLC ` 117 crore (Previous Year ` NIL).
Loans given during the year include Reliance Commercial Dealers Limited ` 67 crore (Previous Year ` NIL),
Reliance Commercial Trading Private Limited ` 4 crore (Previous Year ` NIL), Delta Corp East Africa Limited
` 8 crore (Previous Year ` NIL), Gujarat Chemicals Ports Terminal Company Limited ` 17 crore (Previous Year ` NIL),
Loans returned during the year include Gujarat Chemicals Ports Terminal Company Limited ` NIL (Previous Year
` 17 crore).
Deposits given include Einsten Commercials Private Limited ` 1 crore (Previous Year ` NIL), Carin Commercials
Private Limited ` 86 crore (Previous Year ` NIL), Kaniska Commercials Private Limited ` 23 crore (Previous Year
` NIL), Gaurav Overseas Private Limited ` 15 crore (Previous Year ` 1 crore), Honeywell Properties Private Limited
` NIL (Previous Year ` 7 crore).
Unsecured Loan taken during the year include Reliance Europe Limited ` 27 crore (Previous Year ` NIL), Unsecured
loans repaid during the year include Reliance Ports and Terminals Limited ` NIL (Previous Year ` 310 crore).
Revenue from Operations includes Reliance Ports and Terminals Limited ` 22 crore (Previous Year ` 9 crore),
Reliance Gas Transportation and Infrastructure Limited ` 153 crore (Previous Year ` 220 crore), Reliance Utilities
Private Limited ` 145 crore (Previous Year ` 3 crore).

186

Partnering India's new future. Sustainably.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Other Income includes Interest from Reliance Industrial Infrastructure Limited ` 2 crore (Previous Year ` 2 crore),
Guarantee Commission from Reliance Europe Limited ` 5 crore (Previous Year ` 3 crore).
Purchases / Material Consumed includes Reliance Ports and Terminals Limited ` 138 crore (Previous Year ` 1
crore), Reliance Industrial Infrastructure Limited ` 11 crore (Previous Year ` NIL), Gujarat Chemicals Ports Terminal
Company Limited ` 2 crore (Previous Year ` NIL).
Electric Power, Fuel and Water charges paid to Reliance Utilities and Power Private Limited ` 369 crore (Previous
Year ` 292 crore), Reliance Utilities Private Limited ` 771 crore (Previous Year ` 625 crore).

11.

10. Hire Charges paid to Reliance Industrial Infrastructure Limited ` 21 crore (Previous Year ` 21 crore), Gujarat
Chemicals Port Terminal Company Limited ` 66 crore (Previous Year ` 44 crore), Reliance Gas Transportation
Infrastructure Limited ` 235 crore (Previous Year ` 652 crore), Reliance Ports and Terminals Limited ` 86 crore
(Previous Year ` 72 crore).
Payment to Key Management Personnel include to Shri Mukesh D. Ambani ` 15 crore (Previous Year ` 15 crore),
Shri Nikhil R. Meswani ` 11 crore (Previous Year ` 11 crore), Shri Hital R. Meswani ` 11 crore (Previous Year
` 11 crore), Shri P.M.S. Prasad ` 5 crore (Previous Year ` 2 crore), Shri P.K. Kapil ` 2 crore (Previous Year ` 2 crore).
Sales and Distribution Expenses include Reliance Ports and Terminals Limited ` 2,370 crore (Previous Year
` 2,563 crore), Gujarat Chemicals Ports Terminal Company Limited ` 11 crore (Previous Year ` 10 crore).
Professional Fees include Reliance Europe Limited ` 27 crore (Previous Year ` 17 crore), Reliance Industrial
Infrastructure Limited ` 9 crore (Previous Year ` NIL).
Employee Benefits Expense include Reliance Industrial Infrastructure Limited ` NIL (Previous Year ` 21 crore),
Reliance Gas Transportation Infrastructure Limited ` 5 crore (Previous Year ` NIL).

14.

12.

13.

17.

18.

15. General expenses include Reliance Industrial Infrastructure Limited ` NIL (Previous Year ` 9 crore).
16. Donations to Dhirubhai Ambani Foundation ` 86 crore (Previous Year ` 18 crore), Jamnaben Hirachand Ambani
Foundation ` 8 crore (Previous Year ` 6 crore), HNH Trust and HNH Research Society ` 3 crore (Previous Year
` 2 crore), Hirachand Govardhandas Ambani Public Charitable Trust ` 1 crore (Previous Year ` NIL), Reliance
Foundation ` 112 crore (Previous Year ` NIL).
Finance Cost include Reliance Ports and Terminals Limited ` 24 crore (Previous Year ` 24 crore), Reliance Europe
Limited ` 1 crore (Previous Year ` NIL), Reliance Industrial Infrastructure Limited ` 8 crore (Previous Year ` NIL).
Investment written off (net) includes Deccan Cargo and Express Logistics Private Limited ` 51 crore (Previous Year
` NIL).
Loans and Advances include Gujarat Chemicals Port Terminal Company Limited ` NIL (Previous Year ` 25 crore),
Reliance Europe Limited ` 12 crore (Previous Year ` 7 crore), Reliance Commercial Dealers Limited ` 145 crore
(Previous Year ` NIL), Shree Salasar Bricks Private Limited ` 31 crore (Previous Year ` 31 crore), Atri Exports
Private Limited ` 18 crore (Previous Year ` 18 crore), Jaipur Enclave Private Limited ` 4 crore (Previous Year ` 4
crore), Marugandha Land Developers Private Limited ` 5 crore (Previous Year ` 5 crore), Reliance Commercial
Trading Private Limited ` 9 crore (Previous Year ` 6 crore) and Delta Corp East Africa Limited ` 65 crore (Previous
Year ` 57 crore).

19.

20. Deposits include Reliance Utilities and Power Limited ` 200 crore (Previous Year ` 200 crore), Reliance Ports and
Terminals Limited ` 1,050 crore (Previous Year ` 1,050 crore), Reliance Utilities Private Limited ` 150 crore (Previous
Year ` 150 crore), Rocky Farms Private Limited ` 29 crore (Previous Year ` 29 crore), Chander Commercials Private
Limited ` 33 crore (Previous Year ` 33 crore), Honeywell Properties Private Limited ` 50 crore (Previous Year ` 50
crore), Parinita Commercials Private Limited ` 6 crore (Previous Year ` 6 crore), Creative Agrotech Private Limited
` 15 crore (Previous Year ` 15 crore), Ashwani Commercials Private Limited ` 36 crore (Previous Year ` 36 crore),
Einsten Commercials Private Limited ` 43 crore (Previous Year ` 41 crore), Vishnumaya Commercials Private
Limited ` 9 crore (Previous Year ` 9 crore), Netravati Commercials Private Limited ` 6 crore (Previous Year ` 6
crore), Fame Agro Private Limited ` 3 crore (Previous Year ` 3 crore), Centura Agro Private Limited ` 8 crore
(Previous Year ` 8 crore), Noveltech Agro Private Limited ` 3 crore (Previous Year ` 3 crore), Rakshita Commercials
Private Limited ` 6 crore (Previous Year ` 6 crore), Carin Commercials Private Limited ` 95 crore (Previous Year
` 9 crore), Prakhar Commercials Private Limited ` 48 crore (Previous Year ` 48 crore), Pepino Farms Private Limited
` 1 crore (Previous Year ` 1 crore), Kaniska Commercials Private Limited ` 23 crore (Previous Year ` NIL), Gaurav
Overseas Private Limited ` 17 crore (Previous Year ` 2 crore) and Gujarat Chemicals Port Terminal Company
Limited ` 42 crore (including conversion of loan given) (Previous Year ` NIL).
21. Unsecured loan include Reliance Europe Limited ` 53 crore (Previous Year ` 22 crore).

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 187

29. CONTINGENT LIABILITIES AND COMMITTMENTS

As at
31st March, 2012

(` in crore)
As at
31st March, 2011

(I) Contingent Liabilities

(A) Claims against the company / disputed liabilities

not acknowledged as debts

(a) In respect of joint ventures

(b) In respect of others

(B) Guarantees

(i) Guarantees to Banks and Financial Institutions
against credit facilities extended to third parties

(a) In respect of joint ventures

(b) In respect of others

(ii) Performance Guarantees

(a) In respect of joint ventures

(b) In respect of others

(iii) Outstanding guarantees furnished to Banks and
Financial Institutions including in respect of
Letters of Credits

(a) In respect of joint ventures

(b) In respect of others

(i) Liability in respect of bills discounted with Banks

(Including third party bills discounting)

(a) In respect of joint ventures

(b) In respect of others

(II) Commitments

(A) Estimated amount of contracts remaining to be

executed on capital account and not provided for:

(a) In respect of Joint Ventures

(b) In respect of others

(B) Uncalled Liability on Shares and Other Investments

Partly paid

(a) Sales tax deferral liability assigned

(b) Guarantee against future cash calls *

1,396

1,159

123

228

5,314

631

344

18,092

294

3,560

1,666

833

236

3,658

2,296

10,462

408

4,468

8,053

* The Company has issued guarantees against future cash calls to be made by JV partners of its wholly owned

subsidiary Reliance Marcellus LLC.

188

Partnering India's new future. Sustainably.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

30. During the year the Company received regulatory approvals for transfer of 30% Participating Interest (PI) in 21 Oil&
Gas production sharing contracts including KG D6 to Ms BP Exploration (Alpha) Limited (BP). Consequently, the
proceeds, net of adjustments for revenue and costs from 1st January 2011 to 30th August 2011(closing date)
amounting to ` 32,198 crore have been netted off from the cost incurred against the said blocks appearing in the
Intangible Assets - Development Rights and Intangible Assets under Development forming a part of Fixed Assets.

31.

Reliance Jamnagar Infrastructure Limited, a wholly owned subsidiary of the Company has on 26th March 2012 filed
a Scheme for amalgamation with the Company with the Hon'ble High Court of Gujarat at Ahmedabad. The Scheme
shall be given effect to in the Books with effect from the Appointed Date of 1st April, 2011, upon receipt of the
necessary approvals.

32. On 14 February 2012 and 28 February 2012, Reliance Holding USA, Inc. a wholly owned subsidiary of the Company,
has issued $1,000 million and $500 million, respectively, of 5.40% Guaranteed Senior Notes due on 2022. Proceeds
from the issues were partly utilized to repay $921 million outstanding short-term loans, and the remainder is being
used to make other business investments and for general corporate purposes.

33.

FINANCIAL AND DERIVATIVE INSTRUMENTS
a)

Derivative contracts entered into by the Company and outstanding as on 31st March, 2012.

(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,
2012 amount to ` 88,598 crore (Previous Year ` 1,00,715 crore).
Category wise break up is given below :

Sr. No. Particulars

1
2
3
4

Interest Rate Swaps
Currency Swaps
Options
Forward Contracts

As at 31st March, 2012
34,068
4,199
25,138
25,193

(ii) For hedging commodity related risks :

Category wise break up is given below :

(` in crore)
As at 31st March, 2011
36,254
4,567
28,181
31,713

As at 31st March, 2012

As at 31st March, 2011

Sr. No. Particulars

Petroleum Crude Oil

product purchases products

Other Petroleum Crude oil

Other
product purchases products

sales
(in Kbbl)
16,722
4,809
25,193
2,720

1
2
3
4

Forward swaps
Futures
Spreads
Options

(in Kbbl)
18,842
5,879
81,337
8,875
In addition the Company has net margin hedges outstanding for contracts relating to petroleum product
sales of 81,869 kbbl (Previous Year 79,308 kbbl).
Foreign currency exposures that are not hedged by derivative instruments as on 31st March 2012 amount
to ` 89,892 crore (Previous Year ` 72,650 crore).

(in Kbbl)
21,420
9,453
51,227
1,800

(in Kg)
592
-
-
-

(in Kg)
1,214
-
-
-

sales
(in Kbbl)
14,757
2,194
33,768
-

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 189

34.

In respect of jointly controlled entities, the Company’s share of assets, liabilities, income and expenditure of the
joint venture companies are as follows:

Particulars

(i)

Assets

Fixed Assets

Non-Current Investments

Current Investments

Current Assets

Non-Current Assets

(ii)

Liabilities

Short Term Borrowings

Current Liabilities and Provisions

Non-Current Liabilities and Provisions

Deferred Tax

(iii)

Income

(iv) Expenses

(` in crore)

As at
31st March, 2012

As at
31st March, 2011

126

139

277

338

112

115

(2)

175

222

35.

The audited/unaudited financial statements of foreign subsidiaries / associates have been prepared in accordance
with the Generally Accepted Accounting Principle of its Country of Incorporation or International Financial
Reporting Standards. The differences in accounting policies of the Company and its subsidiaries are not material
and there are no material transactions from 1st January, 2012 to 31st March, 2012 in respect of subsidiaries having
financial year ended 31st December, 2011.

36.

Segment Information:

The Company has identified three reportable segments viz. Petrochemicals, Refining and Oil & Gas. Segments
have been identified and reported taking into account nature of products and services, the differing risks and
returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in
line with the accounting policy of the Company with following additional policies for segment reporting.

Revenue and expenses have been identified to a segment on the basis of relationship to operating activities
of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a
segment on reasonable basis have been disclosed as “Unallocable”.

Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments,
tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis
have been disclosed as “Unallocable”.

190

Partnering India's new future. Sustainably.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

(i)

Primary Segment Information :

(` in crore)

Particulars

Petrochemicals

Refining

Oil and Gas

Others

Unallocable

Total

2011-12

2010-11

2011-12

2010-11

2011-12

2010-11

2011-12

2010-11

2011-12

2010-11

2011-12

2010-11

1 Segment Revenue

External Turnover

86,338

67,648

2,58,697

1,86,542

13,896

Inter Segment Turnover

124

4 4

67,835

48,633

278

Gross Turnover

86,462

67,692

3,26,532

2,35,175

14,174

15,706

1,620

17,326

9,640

523

10,163

6,476

215

6,691

Less: Excise duty / Service
Tax recovered

Net Turnover

5,388

81,074

2 Segment Result before Interest

4,468

4,496

6,010

5 9

127

8 0

63,224

3,22,036

2,29,165

14,115

17,322

10,036

6,611

3,68,571

2,76,372

3,68,571*

2,76,372*

10,070

10,561

3,58,501

2,65,811

and Taxes

Less: Interest Expense

Add: Interest Income
Add: Exceptional Item
Profit Before Tax

Current Tax

Deferred Tax
Profit after Tax (before
adjustment for Minority
Interest)

Add: Share of (Profit) / Loss
transferred to Minority

Profit after Tax (after
adjustment for Minority
Interest)

3 Other Information

Segment Assets

Segment Liabilities

Capital Expenditure

Depreciation and Amortisation

Non Cash Expenses
other than depreciation and
Amortisation

9,060

9,540

9,847

9,182

5,555

6,717

(130)

(460)

-
-
9,060

-
-
9,540

-
-
9,847

-
-
9,182

-
(258)
5,297

-
(917)
5,800

-
-
(130)

-
-
(460)

111

2,893

4,167
(51)
1,334

5,226

465

662

2,411

1,742
-
(7)

4,412

371

24,443

2,893

4,167
(309)
25,408

5,226

465

25,641

2,411

1,742
(917)
24,055

4,412

371

9,060

9,540

9,847

9,182

5,297

5,800

(130)

(460)

(4,357)

(4,790)

19,717

19,272

(37)

(25)

4 4

4 7

2 2

9,060

9,540

9,810

9,157

5,297

5,800

(86)

(413)

(4,357)

(4,790)

19,724

19,294

42,432

45,695

1,09,523

1,05,470

43,048

7,213

2,197

2,137

5,932

548

2,215

35,040

2,746

4,398

32,145

1,328

3,967

3,162

15,859

5,191

64,917

4,120

10,592

7,377

1,392

3,098

439

1,319

13,589

312

258

918

6,174

13,930

669

236

5 1

819

250

112

52,981

24,569

12,401

57,446

26,876

14,121

309

1,030

32,347

26,245

99,841

65,190

3,27,191

3,07,517

*Total Gross Turnover is after elimination of inter segment turnover of ` 68,760 crore (Previous Year ` 50,511 crore).
(ii) As per Accounting Standard on Segment Reporting (AS-17), “Segment Reporting”, the Company has reported

segment information on consolidated basis including businesses conducted through its subsidiaries.

(iii) The reportable Segments are further described below :

— The petrochemicals segment includes production and marketing operations of petrochemical products namely,
High and Low density Polyethylene, Polypropylene, Polyvinyl Chloride, Poly Butadiene Rubber, Polyester
Yarn, Polyester Fibre, Purified Terephthalic Acid, Paraxylene, Ethylene Glycol, Olefins, Aromatics, Linear
Alkyl Benzene, Butadiene, Acrylonitrile, Caustic Soda and Polyethylene Terephthalate.

— The refining segment includes production and marketing operations of the petroleum products.
— The oil and gas segment includes exploration, development and production of crude oil and natural gas.
— The businesses, which were not reportable segments during the year, have been grouped under the “Others”

segment. This mainly comprises of:
* Textile
* Retail Business
* SEZ development
* Telecom / Broadband Business

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 191

(iv) Secondary Segment Information:

Segment Revenue – External Turnover
- Within India
- Outside India
Total Revenue
Segment Assets
- Within India
- Outside India
Total Assets
Segment Liability
- Within India
- Outside India
Total Liability
Capital Expenditure
- Within India
- Outside India
Total Expenditure

2011-12

1,21,618
2,46,953
3,68,571

2,98,786
28,405
3,27,191

50,749
2,232
52,981

14,810
9,759
24,569

(` in crore)
2010-11

1,05,348
1,71,024
2,76,372

2,88,353
19,165
3,07,517

55,863
1,584
57,447

19,974
6,902
26,876

37. The Subsidiary companies considered in the consolidated financial statements are:

Name of the Subsidiaries

Reliance Industrial Investments and Holdings Limited
(including Petroleum Trust)

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

Country of

Proportion of

Incorporation ownership interest

India

100.00%

India

U.A.E.

India

Netherlands

India

U.A.E.

India

100.00%

91.01%

100.00%

92.50%

91.01%

100.00%

91.01%

192

Partnering India's new future. Sustainably.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Name of the Subsidiaries

RESQ Limited

Reliance Commercial Associates Limited

Reliancedigital Retail Limited

Reliance Financial Distribution and Advisory Services Limited

RIL (Australia) Pty Limited

Reliance Hypermart Limited

Gapco Kenya Limited *

Gapco Rwanda Limited *

Gapco Tanzania Limited *

Gapco Uganda Limited *

Gapoil (Zanzibar) Limited *

Gulf Africa Petroleum Corporation *

Transenergy Kenya Limited *

Recron (Malaysia) Sdn Bhd *

Reliance Retail Travel & Forex Services Limited

Reliance Brands Limited

Reliance Footprint Limited

Reliance Trends Limited

Reliance Wellness Limited

Reliance Lifestyle Holdings Limited

Reliance Universal Ventures Limited

Delight Proteins Limited

Reliance Autozone Limited

Reliance F&B Services Limited

Reliance Gems and Jewels Limited

Reliance Integrated Agri Solutions Limited

Strategic Manpower Solutions Limited

Reliance Agri Products Distribution Limited

Reliance Digital Media Limited

Reliance Food Processing Solutions Limited

Reliance Home Store Limited

Reliance Leisures Limited

Reliance Loyalty & Analytics Limited

Reliance Retail Securities and Broking Company Limited

Reliance Supply Chain Solutions Limited

Country of

Proportion of

Incorporation ownership interest

India

Australia

India

Kenya

Rwanda

Tanzania

Uganda

Zanzibar

Mauritius

Kenya

Malaysia

India

91.01%

100.00%

91.01%

100.00%

76.00%

100.00%

91.01%

100.00%

91.01%

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 193

Reliance Global Energy Services (Singapore) Pte. Limited

Singapore

Name of the Subsidiaries

Reliance Trade Services Centre Limited

Reliance Vantage Retail Limited

Wave Land Developers Limited

Reliance-GrandOptical 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 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

Two Sisters Foods India Limited
(Formerly Reliance Nutritional Food Processors Limited)

RIL USA Inc.*

Reliance Commercial Land & Infrastructure Limited

Reliance Corporate IT Park Limited

Reliance Eminent Trading & Commercial Private Limited

Reliance Progressive Traders Private Limited

Reliance Prolific Traders Private Limited

Reliance Universal Traders Private Limited

Reliance Prolific Commercial Private Limited

Reliance Comtrade Private Limited

Country of

Proportion of

Incorporation ownership interest

India

Kenya

India

Netherlands

India

U.K.

India

91.01%

100.00%

91.01%

100.00%

91.01%

100.00%

91.01%

100.00%

British Virgin Island

100.00%

India

U.S.A

India

91.01%

45.51%

100.00%

194

Partnering India's new future. Sustainably.

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Name of the Subsidiaries

Reliance Ambit Trade Private Limited

Reliance Petro Marketing Limited

LPG Infrastructure (India) Limited

Reliance Corporate Centre Limited

Reliance Convention and Exhibition Centre 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

Indiawin Sports Private 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 Private Limited

GenNext Innovation Ventures Limited

GenNext Ventures LLP

Reliance Home Products Limited

Infotel Telecom Limited

Reliance Styles India Limited

Rancore Technologies Private Limited

Omni Symmetry LLC *

Reliance Sibur Elastomers Private Limited

* Subsidiary Company having 31st December as a reporting date.

Country of

Proportion of

Incorporation ownership interest

India

U.A.E

Netherlands

India

Mauritius

India

U.S.A

India

Mauritius

U.S.A

India

U.S.A

India

U.S.A.

India

100.00%

91.01%

100.00%

95.00%

100.00%

91.01%

100.00%

91.01%

95.00%

91.01%

95.00%

100.00%

74.90%

Notes on Consolidated Financial Statements for the Year ended 31st March, 2012

Reliance Industries Limited 195

38. The significant Associates / Joint Ventures considered in the consolidated financial statements are:

Reliance Industrial Infrastructure Limited
Reliance Europe Limited #
Reliance LNG Limited
Gujarat Chemicals Port Terminal Company Limited
Reliance Commercial Dealers Limited
Reliance-Vision Express Private Limited
Reliance-Grandvision India Supply Private Limited
Reliance Vornado Management Private Limited
Reliance Vornado Development Private Limited
Marks and Spencer Reliance India Private Limited
Reliance Innovative Building Solutions Private Limited
Diesel Fashion India Reliance Private Limited
Office Depot Reliance Supply Solutions Private Limited
Zegna South Asia Private Limited
Reliance Paul and Shark Fashions Private Limited
IMG Reliance Private Limited
EFS Midstream LLC #
Basis Point Securities Private Limited
Delta Corp East Africa Limited
India Gas Solutions Private Limited
Extramarks Education Private Limited
Supreme Tradelink Private Limited
Gaurav Overseas Private Limited
Reliance Commercial Trading Private Limited
Deccan Cargo and Express Logistics Private Limited
Delta Hydrocarbons S.A.,
# Associate Company having 31st December as a reporting date.

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 20, 2012

K. Sethuraman
Company Secretary

India
U.K.
India
India
India
India
India
India
India
India
India
India
India
India
India
India
U.S.A
India
Kenya
India
India
India
India
India
India
Luxembourg

45.43%
50.00%
45.00%
41.80%
50.00%
45.51%
45.51%
45.51%
45.51%
44.59%
50.00%
44.59%
45.51%
44.59%
45.51%
50.00%
50.00%
50.00%
43.61%
50.00%
38.46%
44.59%
50.00%
50.00%
30.89%
23.15%

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 } Directors

196

Partnering India's new future. Sustainably.

Financial Information of Subsidiary Companies

Sr. Name of Subsidiary Company
No.

Reporting Capital Reserves
Currency

Total
Total
Assets Liabilities ments

Invest- Turnover/

Total
Income

` in crore

Profit Provision Profit Proposed Country
Before
for
Taxation Taxation Taxation

After Dividend

149.11

670.07

12,152.98

2,210.03

733.09

(102.68)

2,355.98

2,368.36

791.67

41.43

1.02

1,151.62

1,230.39

372.20

108.92

36.75

(63.04)
(11.87)

554.04
104.33

101.85

2,103.28

2,549.10

-
-

565.36
106.46

(58.73)
(11.06)

395.37

235.18

8,315.90

(38.33)

8,920.70

766.39

94.45

(0.89)
(0.13)

1.51
0.22

0.89
0.13

28.50
4.15

(35.19)

4,610.52

96.84

(28.38)

(1.03)

(0.27)
(0.04)

2.69

2.34

572.31
107.77

1.65
0.24

0.05

0.10

7.50

-
-

(0.52)

-
-

0.92

29.25

(58.73)
(11.06)

235.18

(0.51)

(0.27)
(0.04)

(28.38)

1.05

(1,295.09)

5,007.73

245.04

3,860.37

(422.53)

(148.77)

(273.76)

0.05

4.00

0.05

(0.03)

0.39

0.03

4.75

0.03

4.75

0.06

(0.06)

16.82

2.88

0.91

1.97

(39.10)

214.96

0.01

427.74

(24.61)

(8.36)

(16.25)

INR
USD MN

3,841.88
723.45

(1,754.43)
(330.37)

2,204.55
415.13

26.55
5.00

112.74
21.23

(384.96)
(72.49)

99.82

(5.93)

(0.02)

101.91

101.82

8.78

36.04

8.78

36.04

0.00

0.01

0.05

14.51

0.03

(0.01)

(3.00)

(0.00)

(105.31)

751.87

0.01

1,234.04

(82.46)

(27.33)

(55.13)

(28.72)

16.44

3.20

(0.43)

7.15

(7.58)

-
-

0.95

(384.96)
(72.49)

(0.01)

(3.95)

(0.00)

-
-

(18.31)
(3.46)

(0.43)

13.70
2.59

176.34

1.15

0.00
0.00

0.00

(0.21)
(0.04)

(0.15)

-
-

91.03
1,459.54

216.38
3,469.35

1,013.63
16,251.81

2.36
267.96

18.73
2,130.97

-
5,765.20
- 92,435.48

119.87
1,921.87

-
125.98
- 14,331.70

3.15
358.65

37.98
608.89

1.11
125.74

Reliance Industrial Investments and
Holdings Limited

Reliance Ventures Limited

Reliance Strategic Investments Limited

Reliance Industries (Middle East) DMCC

Reliance Jamnagar Infrastructure Limited

Reliance Retail Limited

Reliance Netherlands B. V.

Reliance Haryana SEZ Limited

Reliance Fresh Limited

1 0 Retail Concepts & Services (India) Limited

1 1 Reliance Retail Insurance Broking Limited

1 2 Reliance Dairy Foods Limited

1 3 Reliance Exploration & Production DMCC

1 4 Reliance Retail Finance Limited

1 5 RESQ Limited

1 6 Reliance Commercial Associates Limited

1 7 Reliancedigital Retail Limited

1 8 Reliance Financial Distribution and
Advisory Services Limited

1 9 RIL (Australia) Pty Limited

2 0 Reliance Hypermart Limited

2 1 Gapco Kenya Limited

2 2 Gapco Rwanda Limited

2 3 Gapco Tanzania Limited

2 4 Gapco Uganda Limited

2 5 Gapoil (Zanzibar) Limited

2 6 Gulf Africa Petroleum Corporation *

2 7

Transenergy Kenya Limited

2 8 Recron (Malaysia) Sdn Bhd

INR

INR
USD MN

INR

INR
EUR MN

INR

INR
AUD MN

INR

INR
KSH MN

INR
FRW MN

INR
TZS MN

INR
USH MN

INR
TZS MN

INR
USD MN

INR
KSH MN

INR
RM MN

2.02

0.05

1.05

0.05

31.22
5.90

0.05

3.94
448.50

99.30
29,910.00

18.55
8,750.10

1.66
500.00

116.83
22.00

7.48
120.00

4.19
2.50

262.01
78,919.00

936.78
2,82,164.00

-
2,075.35
- 6,25,104.00

107.83
32,480.00

32.42
9,764.00

80.51
37,978.33

148.40
69,998.64

(1.15)
(345.44)

(42.17)
(7.94)

(7.89)
(126.53)

1,588.39
948.15

7.21
2,171.04

315.07
59.33

0.11
1.77

315.07
59.33

0.11
1.77

3,634.45
2,169.50

-
-

672.08
3,17,016.80

26.64
12,566.93

5.53
2,610.52

0.06
19.18

-
-

0.20
3.27

6,377.76
3,807.05

0.02
4.96

(7.12)
(1.34)

0.11
1.73

74.20
44.29

-
-

13.82
8.25

(0.21)
(0.04)

(0.15)

81.89
1,312.98

2.05
232.91

75.42
22,716.00

21.11
9,956.41

0.02
4.96

(7.12)
(1.34)

0.11
1.73

60.38
36.04

India

U.A.E

India

Netherlands

India

U.A.E

India

Australia

India

Kenya

Rwanda

Tanzania

Uganda

Zanzibar

- Mauritius

Kenya

- Malaysia

As on 31.12.2011: 1 Euro = ` 68.6675, 1 US $ = ` 53.1050, 1 RM = ` 16.7525, 1 KSH = ` 0.6237, 1 FRW = ` 0.0879, 1 TZS = ` 0.0332, 1 USH = ` 0.0212;
Exchange Rate as on 31.3.2012, 1 Euro = ` 67.8675, 1 US $ = ` 50.8750, 1 Aus $ = ` 52.9100, 1 KSH = ` 0.6126, 1 SGD = ` 40.4775, 1 GBP = ` 81.4575.

Financial Information of Subsidiary Companies

Sr. Name of Subsidiary Company
No.

Reporting Capital Reserves
Currency

Total
Total
Assets Liabilities ments

Invest- Turnover/

Total
Income

Reliance Industries Limited 197

` in crore

Profit Provision Profit Proposed Country
Before
for
Taxation Taxation Taxation

After Dividend

1.00

(1.33)

0.06

0.01

(0.02)

2 9 Reliance Retail Travel &

Forex Services Limited

3 0 Reliance Brands Limited

3 1 Reliance Footprint Limited

3 2 Reliance Trends Limited

3 3 Reliance Wellness Limited

3 4 Reliance Lifestyle Holdings Limited

3 5 Reliance Universal Ventures Limited

3 6 Delight Proteins Limited

3 7 Reliance Autozone Limited

3 8 Reliance F&B Services Limited

3 9 Reliance Gems and Jewels Limited

4 0 Reliance Integrated Agri Solutions Limited

4 1

Strategic Manpower Solutions Limited

INR

4 2 Reliance Agri Products Distribution Limited

INR

4 3 Reliance Digital Media Limited

INR

4 4 Reliance Food Processing Solutions Limited INR

4 5 Reliance Home Store Limited

4 6 Reliance Leisures Limited

4 7 Reliance Loyalty & Analytics Limited

4 8 Reliance Retail Securities

and Broking Company Limited

4 9 Reliance Supply Chain Solutions Limited

5 0 Reliance Trade Services Centre Limited

5 1 Reliance Vantage Retail Limited

5 2 Wave Land Developers Limited

INR

150.91

40.04

30.85

(27.45)

(8.76)

(18.69)

203.24

875.55

1.17

23.41

0.90

24.40

33.08

1.32

1.17

23.41

0.90

24.40

33.08

1.32

689.01

0.01

7.54

0.06

3.11

82.43

0.07

0.01

7.54

0.06

3.11

82.43

0.07

0.01

1.15

0.01

0.00

0.01

155.36

(0.15)

0.45

(0.60)

489.09

(16.46)

(5.11)

(11.35)

28.19

0.01

41.10

26.92

1.66

475.49

0.02

190.31

0.02

3.06

0.34

0.11

(0.10)

(2.61)

(0.06)

(7.07)

(2.39)

(5.45)

(0.34)

(0.59)

(0.05)

(5.07)

(0.00)

(0.37)

(1.89)

(1.43)

0.96

(11.45)

(3.87)

(0.03)

(0.10)

(2.61)

(0.06)

(4.68)

(3.56)

(0.34)

0.84

(0.00)

(1.33)

(7.58)

(0.03)

(0.05)

5.66

(10.73)

159.06

0.01

96.76

(16.12)

(5.19)

(10.93)

0.64

0.04

25.73

0.67

87.98

0.64

0.04

25.73

0.67

87.98

0.01

0.11

7.58

131.88

3.11

0.01

0.43
7.05

(0.07)

(0.03)

(0.42)

(3.76)

(2.39)

0.41
6.67

0.13
2.11

(0.07)

(0.03)

(0.42)

(3.76)

(2.39)

0.28
4.55

80.86

1.05

0.05

1.01

0.05

1.05

0.05

1.01

0.05

0.56

(24.93)

(15.95)

(27.37)

(0.22)

(5.17)

(8.37)

(12.72)

(8.10)

(2.65)

(16.81)

(0.32)

(22.42)

(0.12)

(3.37)

(56.11)

(0.07)

(21.43)

(10.51)

(1.20)

3.02

(16.75)

(38.42)

(1.10)
(17.99)

(0.02)

0.01

INR
KSH MN

142.87
2,332.11

5 3 Reliance-GrandOptical Private Limited

5 4 Reliance Universal Commercial Limited

5 5 Reliance Petroinvestments Limited

5 6 Reliance Global Commercial Limited

5 7 Reliance People Serve Limited

5 8 Reliance Infrastructure Management

Services Limited

5 9 Reliance Global Business B. V.

6 0 Reliance Gas Corporation Limited

6 1 Reliance Global Energy Services

(Singapore) Pte. Ltd.

INR

INR
EURO MN

INR

SGD MN

6 2 Reliance One Enterprises Limited

INR

0.05

8.88

0.05

448.60
66.10

0.05

6.07

1.50

0.05

141.91
2,316.58

72.93
1,190.54

0.04

4.49

0.04

4.49

4.48

175.18

185.57

184.47

0.01

(2.31)

(0.02)

16.76
2.47

(0.01)

0.85

0.21

(0.38)

4.49

0.53

0.03

4.49

0.53

0.03

465.77
68.63

6.14

7.04

1.74

0.44

6.14

7.04

1.74

0.44

4.48

465.64
68.61

0.01

(0.00)

0.01

0.03

0.01

2.65

0.34
0.05

0.00

0.02

0.00

(0.29)

(0.00)

0.14
0.02

(0.00)

0.00

0.63

-
-

0.00

0.02

0.00

(0.92)

(0.00)

0.14
0.02

(0.00)

2.02

0.20

0.04

0.16

0.61

Singapore

0.50

0.02

0.05

(0.33)

0.01

0.04

0.15

(0.33)

India

Kenya

India

Netherlands

India

198

Partnering India's new future. Sustainably.

Financial Information of Subsidiary Companies

Sr. Name of Subsidiary Company
No.

Reporting Capital Reserves
Currency

Total
Total
Assets Liabilities ments

Invest- Turnover/

Total
Income

` in crore

Profit Provision Profit Proposed Country
Before
for
Taxation Taxation Taxation

After Dividend

6 3 Reliance Global Energy Services

INR

Limited *

GBP MN

6 4 Reliance Personal Electronics Limited

6 5 Reliance Polymers (India) Limited

6 6 Reliance Polyolefins Limited

6 7 Reliance Aromatics and
Petrochemicals Limited

6 8 Reliance Energy and Project
Development Limited

6 9 Reliance Chemicals Limited

7 0 Reliance Universal Enterprises Limited

7 1 Reliance Review Cinema Limited

7 2 Reliance Replay Gaming Limited

7 3

Two Sisters Foods India Limited
(Formerly Reliance Nutritional Food
Processors Limited)

7 4 Reliance Commercial Land &
Infrastructure Limited

7 5 Reliance Corporate IT Park Limited

7 6 Reliance Eminent Trading &
Commercial Private Limited

INR

4.07

0.50

0.05

4.41

1.63

10.02

0.20

(0.91)

1.23

0.33

1.23

0.33

2,180.51

2,184.97

0.01

13.26

2,574.59

2,609.28

2,608.29

4.11

2,503.44

2,781.38

2,781.36

18.08

1.38

0.33

1.06

2.22

0.01

0.00

5.00

0.01

0.17

(0.07)

(0.00)

1.38

0.01

0.04

0.48

0.00

0.13

(0.07)

(0.00)

0.90

0.01

1.01

951.81

1,256.32

1,255.99

0.03

0.01

0.02

7.58

2,598.64

2,606.23

2,604.91

13.26

3,403.42

3,416.69

3,416.56

0.05

7.50

(0.85)

(0.64)

(5.95)

0.22

0.12

2.81

0.22

0.12

2.81

0.01

0.15

0.01

0.02

1.26

0.49

0.05

0.01

(0.29)

(0.37)

(4.05)

46.90

1,940.74

3,057.62

0.01

(0.00)

0.00

0.18

0.09

2,634.83

(123.51)

2,925.65

25.00

969.98

0.87

0.14

14.67

2,056.78

2,205.18

0.01

0.02

(4.55)

0.84

(8.41)

(0.33)

0.08

0.03

0.00

0.21

7 7 Reliance Progressive Traders Private Limited INR

13.96

1,753.08

1,965.17

7 8 Reliance Universal Traders Private Limited

7 9 Reliance Prolific Traders Private Limited

INR

10.12

43.23

84.93

12.87

1,424.69

2,224.78

8 0 Reliance Prolific Commercial Private Limited INR

8 1 Reliance Comtrade Private Limited

8 2 Reliance Ambit Trade Private Limited

8 3 Reliance Petro Marketing Limited

8 4

LPG Infrastructure (India) Limited

8 5 RIL USA inc.

8 6

International Oil Trading Limited

8 7 Central Park Enterprises DMCC

8 8 Reliance Corporate Services Limited

8 9 Reliance Corporate Centre Limited

9 0 Reliance Convention and

Exhibition Centre Limited

INR

INR
USD MN

INR

1.66

1.48

1.93

4.11

0.05

15.93
3.00

0.25
0.05

0.53
0.10

0.06

0.05

331.25

241.46

465.76

106.43

7.57

39.46
7.43

0.46
0.09

(0.42)
(0.08)

(0.01)

336.57

243.08

472.46

162.90

0.04

300.54

106.78

(0.00)

305.46

2,700.81
508.58

- 27,801.95
5,235.28
-

0.71
0.14

0.11
0.02

56.53

88.83

0.71
0.14

0.11
0.02

56.53

88.83

111.90

-
-

54.51

-
-

(1.35)

0.02

(0.00)

0.20

0.06

1.96

6.16
1.16

(0.00)
(0.00)

(0.21)
(0.04)

(0.00)

0.01

(0.47)

(0.46)

(4.05)

(0.00)

0.73

(4.55)

(8.41)

(0.33)

(1.37)

0.01

(0.00)

0.06

0.02

1.66

0.05
0.01

-
-

0.14

0.04

0.30

6.11
1.15

(0.00)
(0.00)

(0.21)
(0.04)

(0.00)

-
-

U K

India

U S A

British
Virgin
Island

U.A.E

India

Financial Information of Subsidiary Companies

Total
Income

-
-

3.26
0.48

Sr. Name of Subsidiary Company
No.

Reporting Capital Reserves
Currency

Total
Total
Assets Liabilities ments

Invest- Turnover/

9 1 Reliance International B.V.

9 2

Indiawin Sports Private Limited

9 3 Reliance Exploration and

Production Mauritius Limited *

9 4 Reliance Oil and Gas Mauritius Limited *

9 5 Reliance Holdings USA, Inc.

9 6 Reliance Marcellus LLC

INR
EURO MN

INR

USD MN

INR
USD MN

0.95
0.14

1.29
0.19

0.14
0.02

2.65

(90.61)

134.10

0.34

170.72

2,839.59

(0.05)

2,839.33

2,828.34

558.15

797.77
156.81

(0.01)

(1.78)
(0.35)

558.10

555.94

806.93
158.61

0.27
0.05

3,323.15
625.77

16,214.07
3,053.21

499.13
98.11

630.67
118.76

-
-

980.05
184.55

(52.89)
(9.96)

4,668.51
879.11

-
-

137.33
25.86

9 7

Infotel Broadband Services Limited

INR

5,175.20

(11.13)

15,109.58

5.56

0.13

9 8 Reliance Strategic (Mauritius) Limited *

9 9 Reliance Eagleford Midstream LLC

100 Reliance Eagleford Upstream LLC

101 Reliance Eagleford Upstream GP LLC

102 Reliance Eagleford Upstream Holding LP

103 Mark Project Services Private Limited

104 Reliance Energy Generation and
Distribution Private Limited

105 Reliance Marcellus II LLC

106 Reliance Security Solutions Limited

107 Reliance Industries Investment
and Holding Limited

108 Reliance Office Solutions

Private Limited

109 Reliance Style Fashion India Private Limited

110 Gennext Innovation Ventures

Limited

111 Gennext Ventures LLP

112 Reliance Home Products Limited

113 Reliance Styles India Limited

114

Infotel Telecom Limited

115 Rancore Technologies Private Limited

116 Omni Symmetry LLC

INR
USD MN

INR

INR
USD MN

INR

INR
USD MN

0.20
0.04

248.53
46.80

1,212.71
228.36

0.16
0.03

1,212.65
228.35

0.05

534.29
100.61

0.05

2.52

(0.15)
(0.03)

(27.30)
(5.14)

(0.06)
(0.01)

(0.01)
(0.00)

453.41
85.38

(0.32)

(0.01)

(6.00)
(1.13)

0.01

0.05
0.01

1,133.69
213.48

7,229.24
1,361.31

0.16
0.03

0.05
0.01

-
-

1,133.69
213.48

1,133.42
213.43

7,229.24
1,361.31

0.16
0.03

-
-

0.11
0.02

8,156.98
1,536.01

0.01

3,264.59

2,724.66
513.07

0.77

-
-

1,238.69

1,433.41

1,433.38

-
-

1,216.85
229.14

0.03

3.77
0.71

3.50

9.47

5.12

(1.35)

6.06

1.01

0.05

0.02

0.05

6.05

0.05

6.48
1.22

(4.06)

(0.00)

(15.06)

(0.01)

(0.08)

(0.07)

(1.27)
(0.24)

11.72

0.05

0.59

15.22

0.04

5.97

11.72

0.05

0.59

15.22

0.04

5.97

39.68

5.36
1.01

0.96

-
-

5.36

(0.95)

0.14

(1.09)

4.56

1.79

40.77

0.28

-
-

(4.03)

(0.00)

0.02

(9.11)

(0.01)

(0.00)

(0.01)

(1.27)
(0.24)

0.01

(2.97)

(0.03)

-
-

(4.03)

(0.00)

0.01

(6.14)

(0.01)

(0.00)

0.02

(1.27)
(0.24)

Reliance Industries Limited 199

` in crore

Profit Provision Profit Proposed Country
Before
for
Taxation Taxation Taxation

After Dividend

0.34
0.05

(0.39)

(0.25)

(0.05)

(1.53)
(0.30)

(55.87)
(10.52)

(41.69)
(7.85)

(5.32)

(0.10)
(0.02)

(14.71)
(2.77)

(0.05)
(0.01)

(0.00)
(0.00)

434.45
81.81

(0.10)

(0.00)

(5.84)
(1.10)

0.02

7.72

0.07
0.01

-
-

0.27
0.04

(0.39)

(0.25)

(0.05)

(1.53)
(0.30)

100.85
18.99

(156.66)
(29.50)

-
-

0.01

(41.69)
(7.85)

(5.32)

(0.10)
(0.02)

(14.71)
(2.77)

(0.05)
(0.01)

(0.00)
(0.00)

434.45
81.81

(0.10)

(0.00)

(5.84)
(1.10)

0.01

7.72

-
-

Netherlands

India

- Mauritius

-
-

Mauritius

USA

India

- Mauritius

-
-

USA

India

USA

India

USA

200

Partnering India's new future. Sustainably.

Shareholders’ Referencer

AT A GLANCE

(cid:1)

Presently, the Company has around 3.4 million folios
of shareholders holding Equity Shares in the Company.
The Company’s Equity Shares are listed on BSE
Limited (BSE) and National Stock Exchange of India
Limited (NSE). The Global Depository Receipts
(GDRs) of the Company are listed on the Luxembourg
Stock Exchange and traded on International Order
Book (London Stock Exchange) and also PORTAL
System (NASD, USA).
The Company’s Equity Shares are most actively
traded security on both BSE and NSE.
The Company’s Equity Shares are under compulsory
trading in demat form only.
97.49% of the Company’s Equity Shares are held in
demat form.

(cid:1) Karvy Computershare Private Limited (Karvy),
Hyderabad, an ISO 9002 Certified Registrars and
Transfer Agents, is the Registrars and Transfer
Agents (R&TA) of the Company.

INVESTOR SERVICE AND GRIEVANCE HANDLING
MECHANISM

All investor service matters are being handled by Karvy.
Karvy, the largest Registrar in the country having a vast
number of Investor Service Centres across the country,
discharges investor service functions effectively,
efficiently and expeditiously.

The Company has an established mechanism for investor
service and grievance handling, with Karvy and the
Compliance Officer appointed by the Company for this
purpose, being the important functional nodes. The
Company has appointed Internal Securities Auditors to
concurrently audit the securities related transactions being
handled at Karvy and communications exchanged with
investors, regulatory and other concerned authorities.

The Company has prescribed service standards for various
investor related activities being handled by Karvy, which
are covered in the section on ‘Initiatives Taken by the
Company’. These standards are periodically reviewed by
the Company. Any deviation therefrom is examined by the
Internal Securities Auditors.

COMPANY’S RECOMMENDATIONS TO THE
SHAREHOLDERS / INVESTORS

The following are the Company’s recommendations to
shareholders/investors:

Open Demat Account and Dematerialise your shares

Investors should convert their physical holdings of
securities into demat holdings. Holding securities in demat
form helps investors to get immediate transfer of securities.
No stamp duty is payable on transfer of shares held in
demat form and risks associated with physical certificates
such as forged transfers, fake certificates and bad
deliveries are avoided. More benefits and procedure
involved in dematerialisation are covered later in this
Referencer.

Consolidate Multiple Folios

Investors should consolidate their shareholding held in
multiple folios. This would facilitate one-stop tracking of
all corporate benefits on the shares and would reduce
time and efforts required to monitor multiple folios.

Investors holding the shares in physical form should
provide the National Electronic Clearing Service (NECS)
mandate to the Company and investors holding the shares
in demat form should ensure that correct and updated
particulars of their bank account are available with the
Depository Participant (DP). This would facilitate in
receiving direct credits of dividends, refunds etc., from
companies and avoid postal delays and loss in transit.
Investors must update their new bank account numbers
allotted after implementation of Core Banking Solution
(CBS) to the Company in case of shares held in physical
form and to the DP in case of shares held in demat form.

Submit Nomination Form

Investors should register their nominations in case of
physical shares with the Company and in case of
dematerialised shares with their DP. Nomination would
help the nominees to get the shares transmitted in their
favour without any hassles. Investors must ensure that
nomination made is in the prescribed Form and must be
witnessed by two witnesses in order to be effective. The
Form may be downloaded from the Company’s website
www.ril.com under the section “Investor Relations”.

Deal with Registered Intermediaries

Investors should transact through a registered
intermediary who is subject to regulatory discipline of
SEBI, as it will be responsible for its activities, and in case
the intermediary does not act professionally, investors
may take up the matter with SEBI/Stock Exchanges.

Reliance Industries Limited 201

Obtain documents relating to purchase and sale of
securities

A valid Contract Note/Confirmation Memo should be
obtained from the broker/sub-broker, within 24 hours of
execution of purchase or sale of securities and it should
be ensured that the Contract Note/Confirmation Memo
contains order number, order time, trade number, trade time,
security descriptions, bought and sold quantity, price,
brokerage, service tax and securities transaction tax. In
case the investors have any doubt about the details
contained in the contract note, they can avail the facility
provided by BSE/NSE to verify the trades on BSE/NSE
websites. It is recommended that this facility be availed in
respect of a few trades on random basis, even if there is
no doubt as to the authenticity of the trade/transaction.

Monitor holdings regularly

Demat account should not be kept dormant for long period
of time. Periodic statement of holdings should be obtained
from the concerned DP and holdings should be verified.
Where the investor is likely to be away for a long period
of time and where the securities are held in electronic form,
the investor can make a request to the DP to keep the
account frozen so that there can be no debit to the account
till the instruction for freezing the account is
countermanded by the investor.

Transfer securities before Book Closure/ Record Date

The corporate benefits on the securities lying in the
clearing account of the brokers cannot be made available
to the members directly by the Company. In case an
investor has bought any securities, he must ensure that
the securities are transferred to his demat account before
the book closure / record date.

Opt for Corporate Benefits in Electronic Form

In case of non cash corporate benefits like split of
shares / bonus shares, the holders of shares in physical
form must opt to get the shares in electronic form by
providing the details of demat account to the R&TA.

Investors should register their mobile numbers with DPs
for SMS alert facility. National Securities Depository
Limited and Central Depository Services (India) Limited
proactively inform the investors of transaction in the demat
account by sending SMS. Investors will be informed about
debits and credits to their demat account without having
to call-up their DPs and investors need not wait for
receiving Transaction Statements from DPs to know about
the debits and credits.

To support the ‘Green Initiative’ in the Corporate
Governance taken by the Ministry of Corporate Affairs,
to contribute towards greener environment and to receive
all documents, notices, including Annual Reports and
other communications of the Company, investors should
register their e-mail addresseses with Karvy, if shares are
held in physical mode or with their DP, if the holding is in
electronic mode.

Exercise caution

There is likelihood of fraudulent transfers in case of folios
with no movement or where the shareholder has either
expired or is not residing at the address registered with
the Company. Company / DP should be updated on any
change of address or contact details. Similarly, information
of death of shareholder should also be communicated.

Mode of Postage

Share certificates and high value dividend / interest
warrants / cheques / demand drafts should not be sent by
ordinary post. It is recommended that investors should
send such instruments by registered post or courier.

Intimate mobile number

Intimate your mobile number and changes therein if any
to Karvy, if shares are held in physical mode or to your DP
if the holding is in electronic mode, to receive
communications on corporate actions and other
information of the Company.

CONCEPTS AND PROCEDURES FOR SECURITIES
RELATED MATTERS

Dealing in Securities

The Company’s Equity Shares are under compulsory
trading in demat form only.

What are the types of accounts for dealing in securities
in demat form?

Beneficial Owner Account (B.O. Account) / Demat
Account: An account opened with a DP in the name of
investor for the purpose of holding and transferring
securities.

Trading Account: An account opened by the broker in the
name of the investor for maintenance of transactions
executed while buying and selling of securities.

Bank Account: A bank account in the name of the investor
which is used for debiting or crediting money for trading
in the securities market.

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What is the Process of trading in Securities?

The normal course of trading in the Indian market context
is briefed below:

Step 1.

Investor / trader decides to trade.

Step 2. Places order with a broker to buy / sell the required

quantity of respective securities.

Step 3. Best priced order matches based on price-time

priority.

Step 4. Order execution is electronically communicated

to the broker’s terminal.

Step 5. Trade confirmation slip issued to the investor /

trader by the broker.

Step 6. Within 24 hours of trade execution, contract note

is issued to the investor / trader by the broker.

Step 7. Pay-in of funds and securities before T+2 day.

Step 8. Pay-out of funds and securities on T+2 day.

(cid:1)

Personally fill in target account-id and all details in
the DIS.

If the DIS booklet is lost / stolen / not traceable, the
same must be intimated to the DP, immediately, in
writing. On receipt of such intimation, the DP will
cancel the unused DIS of the said booklet.

What is online trading in securities?

Online trading in securities refers to the facility available
to an investor for placing his own orders using the internet
trading platform offered by the trading member viz., the
broker. The orders so placed by the investor using internet
would be routed through the trading member.

What precautions an online investor must take?

Investor trading online must take the following
precautions:

(cid:1) Default password provided by the broker is changed

before placing of order.

Ensure and insist with DP to issue DIS book.

(cid:1) Avoid placing order from shared PCs / through cyber

In case of short or bad delivery of funds / securities, the
exchange orders for an auction to settle the delivery.
If the securities could not be bought in the auction, the
transaction is closed out as per SEBI guidelines.

(cid:1)

What is Delivery Instruction Slip (DIS) and what
precautions one needs to observe with respect to DIS?

To give the delivery, one has to fill in a form called Delivery
Instruction Slip (DIS). DIS may be compared to cheque
book of a bank account. The following precautions are to
be taken in respect of DIS:

(cid:1)

Ensure that DIS numbers are pre-printed and DP
takes acknowledgment for the DIS booklet issued to
the investor.

Ensure that your account number [client id] is
pre-stamped.

If the account is a joint account, all the joint holders
have to sign the instruction slips. Instruction cannot
be executed if all joint holders have not signed.

(cid:1) Avoid using loose slips.

(cid:1) Do not leave signed blank DIS with anyone viz.,

broker/sub-broker, DPs or any other person/entity.

(cid:1) Keep the DIS book under lock and key when not in

use.

The password is not shared with others and password
is changed at periodic intervals.

Proper understanding of the manner in which the
online trading software has to be operated.

(cid:1) Adequate training on usage of software.

(cid:1)

The online trading system has facility for order and
trade confirmation after placing the orders.

What are the other safety measures an online client must
observe?

cafés.

(cid:1)

Log out after having finished trading to avoid misuse.

Ensure that one does not click on “remember me”
option while signing on from non-regular location.

(cid:1) Do not leave the terminal unattended while one is

“signed-in” to the trading system.

(cid:1)

Protect your personal computer against viruses by
placing a firewall and an anti-virus solution.

(cid:1) Do not open email attachments from people you do

not know.

DIVIDEND

Payment of Dividend

(cid:1)

If only one entry is made in the DIS book, strike out
remaining space to prevent misuse.

Dividend is paid under three modes viz:

(a) National Electronic Clearing Services (NECS)

Reliance Industries Limited 203

(b) National Electronic Fund Transfer (NEFT)

d. Exposure to delays / loss in postal service avoided.

e. As there can be no loss in transit of warrants, issue

Payment of dividend through National Electronic
Clearing Service (NECS) facility

What is payment of dividend through NECS Facility and
how does it operate?

NECS facility is a centralised version of ECS facility. The
NECS system takes advantage of the centralised
accounting system in banks. Accordingly, the account of
a bank that is submitting or receiving payment instructions
is debited or credited centrally at Mumbai. The branches
participating in NECS can, however, be located anywhere
across the length and breadth of the country.

What is payment of dividend through NEFT Facility and
how does it operate?

NEFT is a nation-wide payment system facilitating
electronic transfer of funds from one account to another.
Dividend payment through NEFT denotes payment of
dividend electronically through RBI clearing to selected
bank branches which have implemented Core Banking
Solutions (CBS). This extends to all over the country, and
is not necessarily restricted to the 90 designated centres
where payment can be handled through ECS. To facilitate
payment through NEFT, the shareholder is required to
ensure that the bank branch where his/her account is
operated, is under CBS and also records the particulars of
the new bank account with the DP with whom the demat
account is maintained.

What is payment of dividend through Direct Credit and
how does it operate?

The Company will be appointing one bank as its Dividend
banker for distribution of dividend. The said banker will
carry out direct credit to those investors who are
maintaining accounts with the said bank, provided the
bank account details are registered with the DP for
dematerialised shares and / or registered with the
Company’s R&TA prior to the payment of dividend for
shares held in physical form.

What are the benefits of NECS (payment through
electronic facilities)?

Some of the major benefits are :

Investor need not make frequent visits to his bank for
depositing the physical paper instruments.

b. Prompt credit to the bank account of the investor

through electronic clearing.

Fraudulent encashment of warrants is avoided.

of duplicate warrants is avoided.

Which cities provide NECS Facility?

NECS has no restriction of centres or of any geographical
area inside the country. Presently 51,000 branches of 116
banks participate in NECS.

How to avail of NECS Facility?

Investors holding shares in physical form may send their
NECS Mandate Form, duly filled in, to the Company’s
R&TA. The Form may be downloaded from the Company’s
website www.ril.com under the section “Investor
Relations”.

However, if shares are held in dematerialised form, NECS
mandate has to be sent to the concerned DP directly, in
the format prescribed by the DP.

Investors must note that NECS essentially operates on
the new and unique bank account number, allotted by
banks post implementation of Core Banking Solutions
(CBS) for centralized processing of inward instructions
and efficiency in handling bulk transactions.

In this regard, shareholders are requested to furnish the
new bank account number allotted by the banks post
implementation of CBS, along with a copy of cheque
pertaining to the concerned account, to the R&TA of the
Company in case the shareholders hold shares in physical
form and to the concerned DP in case the shareholders
hold shares in demat form.

In case the shareholders do not provide their new account
number allotted after implementation of CBS, please note
that NECS to the shareholders’ old account may either be
rejected or returned.

Why the Company cannot take on record bank details in
case of dematerialised shares?

As per the Depository Regulations, the Company is
obliged to pay dividend on dematerialised shares as per
the bank account details furnished by the concerned
Depository. Therefore, investors are requested to keep
their bank particulars updated with their concerned DP.

Can NECS Facility be opted out by investors?

Investors have a right to opt out from this mode of
payment by giving an advance notice of four weeks, prior
to payment of dividend, either to the Company’s R&TA or
to the concerned DP, as the case may be.

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Course of Action in case of Non-receipt of Dividend,
Revalidation of Dividend Warrant, etc.

with one of the depository participants, for this
purpose.

What should a shareholder do in case of non-receipt of
dividend?

(cid:1)

Shareholders may write to the Company’s R&TA,
furnishing the particulars of the dividend not received,
and quoting the folio number /DPID and Client ID
particulars (in case of dematerialised shares). On expiry of
the validity period, if the dividend warrant is still shown
as unpaid in the records of the Company, duplicate warrant
will be issued. The R&TA would request the concerned
shareholder to execute an indemnity before issuing the
duplicate warrant.

However, duplicate warrants will not be issued against
those shares wherein a ‘stop transfer indicator’ has been
instituted either by virtue of a complaint or by law, unless
the procedure for releasing the same has been completed.

No duplicate warrant will be issued in respect of dividends
which have remained unpaid / unclaimed for a period of
seven years in the unpaid dividend account of the
Company as they are required to be transferred to the
Investor Education and Protection Fund (IEPF) constituted
by the Central Government.

Why do the shareholders have to wait till the expiry of the
validity period of the original warrant for issue of
duplicate warrant?

Since the dividend warrants are payable at par at several
centres across the country, banks do not accept ‘stop
payment’ instructions. Hence, shareholders have to wait
till the expiry of the validity of the original warrant for
issue of duplicate warrant. Validity of Dividend warrant is
three months from the date of issue of the warrant.

Unclaimed Shares

What are the Regulatory provisions and procedure
governing unclaimed shares lying in physical form with
the Company or its R&TA ?

As per amended Clause 5A of the Listing Agreement with
the Stock Exchanges:

(cid:1)

In terms of sub-clause (I), for shares issued pursuant
to a public issue or any other issue, which remain
unclaimed and are lying in the escrow account, the
Company, after complying with the procedure
prescribed therein, shall credit the unclaimed shares
to a demat suspense account opened by the Company

In terms of sub-clause (II), for shares issued in
physical form pursuant to a public issue or any other
issue, which remain unclaimed, the Company, after
complying with the procedure prescribed therein, shall
transfer all such unclaimed shares into one folio in
the name of “Unclaimed Suspense Account” and shall
demateralise such shares with one of the depository
participants.

What is the status of compliance by the Company with
regard to these provisions?

In terms of Clause 5A (I) of the Listing Agreement, details
relating to unclaimed shares such as the aggregate number
of shareholders along with number of unclaimed shares
lying in the suspence account at the begining of the year,
number of shareholders who had approached the Company
claiming the unclaimed shares, number of shareholders,
to whom the said unclaimed shares were transferred from
the suspence account during the year and the aggregate
number of shareholders along with number of unclaimed
shares lying in the suspense account at the end of the
year, are published in the Corporate Governance Report.

In terms of Clause 5A(II) of the Listing Agreement, details
relating to the aggregate number of shareholders along
with the number of unclaimed shares issued in physical
form and transfered in dematerialised form to the
“Unclaimed Suspense Account”, are published in the
Corporate Governance Report.

UNCLAIMED / UNPAID DIVIDEND

What are the Statutory provisions governing unclaimed
dividend?

With effect from October 31, 1998, any money transferred
to the ‘unpaid dividend account’ of the Company and
remaining unpaid or unclaimed for a period of 7 years from
the date it becomes due, shall be transferred to the Investor
Education and Protection Fund (IEPF). Investors are
requested to note that no claims shall lie against the
Company or IEPF for any moneys transferred to IEPF in
accordance with the provisions of Section 205C of the
Companies Act, 1956.

What is the status of unclaimed and unpaid dividend for
different years?

In view of the statutory provisions, as aforesaid, the status
of unclaimed and unpaid dividend of the Company is
captured in Chart 1 below:

Reliance Industries Limited 205

Chart 1: Status of unclaimed and unpaid dividend for different years

Dividend upto 1994-95

Dividend for 1995-96 to
2003-2004

Dividend for 2004-2005
and thereafter

Transfer of unpaid
dividend

Transferred to General
Revenue account of the
Central Government

Claims for unpaid
dividend

Can be claimed from ROC,
Maharashtra*

Transferred to Central
Government’s Investor
Education and Protection
Fund (IEPF)
Cannot be claimed

Will be transferred to
IEPF on due date (s)

Can be claimed from the
Company’s R&TA within
the time limits provided
in Chart 2 given below

* Shareholders who have not encashed their dividend warrant(s) relating to one or more of the financial year(s) upto and
including 1994-95 are requested to claim such dividend from the Registrar of Companies, Maharashtra, CGO Complex,
2nd Floor, “A Wing”, CBD- Belapur, Navi Mumbai - 400 614. Telephone (091) (022) 2757 6802, in Form II of the
Companies Unpaid Dividend (Transfer to General Revenue Account of the Central Government) Rules, 1978.

Chart 2: Information in respect of unclaimed and unpaid dividends declared for 2004-05 and thereafter

Financial year ended

RIL

Erstwhile IPCL (Merged with RIL)

Date of declaration of
dividend

Last date for
Claiming unpaid
dividend

Date of declaration of
dividend

31.03.2005
31.03.2006
31.03.2007 (Interim)
31.03.2008
31.03.2009
31.03.2010
31.03.2011

03.08.2005
27.06.2006
10.03.2007
12.06.2008
07.10.2009
18.06.2010
03.06.2011

02.08.2012
26.06.2013
08.03.2014
11.06.2015
06.10.2016
17.06.2017
02.06.2018

27.06.2005
25.05.2006
10.03.2007

Last date for
Claiming unpaid
dividend

26.06.2012
24.05.2013
08.03.2014

DEMATERIALISATION/REMATERIALISATION
OF SHARES

(cid:1)

Elimination of all risks associated with physical
certificates

What is Dematerialisation of shares?

(cid:1) No stamp duty on transfers

Dematerialisation (Demat) is the process by which
securities held in physical form are cancelled and destroyed
and the ownership thereof is entered into and retained in
a fungible form in a depository by way of electronic
balances.

Why dematerialise shares? Trading in Compulsory
Demat Form
SEBI has notified various companies whose shares shall
be traded in demat form only. By virtue of such
notification, the shares of the Company are also subject
to compulsory trading only in demat form on the Stock
Exchanges.

Benefits of Demat

(cid:1)

Elimination of bad deliveries

(cid:1)

Immediate transfer / trading of securities

Faster settlement cycle

Faster disbursement of non cash corporate benefits
like rights, bonus, etc.

SMS alert facility
Lower brokerage is charged by many brokers for
trading in dematerialised securities

Periodic status reports and information available on
internet

Ease related to change of address of investor
Elimination of problems related to transmission of
demat shares
Ease in portfolio monitoring

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(cid:1)

Ease in pledging the shares

How to dematerialise shares?

The procedure for dematerialising shares is as under :

(cid:1) Open Beneficiary Account with a DP registered with

SEBI.

(cid:1)

Submit Demat Request Form (DRF) as given by the
DP, duly signed by all the holders with the names and
signatures in the same order as appearing in the
concerned certificate(s) and the Company records
along with the share certificate(s).

(cid:1) Demat confirmations are required to be completed in
21 days as against 30 days (excluding time for
despatch) for physical transfer. Service standards
prescribed by the Company for completing demat is
three days from the date of the receipt of requisite
documents for the purpose.

(cid:1)

Receive a confirmation statement of holdings from
the DP. Statement of holdings is sent by the DPs from
time to time.

Can I dematerialize shares held jointly, in the same
combination of names, but the sequence of names is
different?

Depositories provide “Transposition cum Demat facility”
to help joint holders to dematerialize securities in different
sequence of names. For this purpose, DRF and
Transposition Form should be submitted to the DP.

What is the SMS alert facility?

NSDL and CDSL have launched SMS Alert facility for
demat account holders whereby the investors can receive
alerts for debits (transfers) in their demat accounts and
for credits in respect of corporate actions for transfers,
IPO and offer for sale. Under this facility, investors can
receive alerts, a day after such debits (transfers) / credits
take place. These alerts are sent to those account holders
who have provided their mobile numbers to their DPs.
Alerts for debits are sent, if the debits (transfers) are up to
five ISINs in a day. In case debits (transfers) are for more
than five ISINs, alerts are sent with a message that debits
for more than five ISINs have taken place and that the
investor can check the details with the DP.

What is rematerialisation of shares?

It is the process through which shares held in demat form
are converted into physical form by issuance of share
certificate(s).

(cid:1)

What is the procedure for rematerialisation of shares?
Shareholders should submit duly filled in
Rematerialisation Request Form (RRF) to the
concerned DP.

(cid:1) DP intimates the relevant Depository of such

requests.

(cid:1) DP submits RRF to the Company’s R&TA.
(cid:1) Depository confirms rematerialisation request to the

(cid:1)

Company’s R&TA.
The Company’s R&TA updates accounts and prints
certificate(s) and informs the Depository.

(cid:1) Depository updates the Beneficiary Account of the
shareholder by deleting the shares so rematerialised.

(cid:1)

Share certificate(s) is despatched to the shareholder.

NOMINATION FACILITY

What is nomination facility and to whom it is more useful?

Section 109A of the Companies Act, 1956 provides the
facility of nomination to shareholders. This facility is
mainly useful for individuals holding shares in sole name.
In the case of joint holding of shares by individuals,
nomination will be effective only in the event of death of
all joint holders.

What is the procedure for appointing a nominee?

Investors, especially those who are holding shares in
single name, are advised to avail of the nomination facility
by submitting the prescribed Form 2B to the Company’s
R&TA. Form 2B may be downloaded from the Company’s
website, www.ril.com under the section “Investor
Relations”.

However, if shares are held in dematerialised form,
nomination has to be registered with the concerned DP
directly, as per the format prescribed by the DP.

Who can appoint a nominee and who can be appointed as a
nominee?

Individual shareholders holding the shares / debentures
in single name or joint names can appoint a nominee. In
case of joint holding, joint holders together have to appoint
the nominee. While an individual can be appointed as a
nominee, a trust, society, body corporate, partnership firm,
karta of HUF or a power of attorney holder cannot be
appointed as a nominee(s). Minors can, however, be
appointed as a nominee.

Can a nomination once made be revoked / varied?

It is possible to revoke / vary a nomination once made. If
nomination is made by joint holders, and one of the joint

Reliance Industries Limited 207

holders dies, the remaining joint holder(s) can make a fresh
nomination by revoking the existing nomination.
Are the joint holders deemed to be nominees to the
shares?
Joint holders are not nominees; they are joint holders of
the relevant shares having joint rights on the same. In the
event of death of any one of the joint holders, the surviving
joint holder(s) of the shares is / are the only person(s)
recognised under law as holder(s) of the shares. Joint
holders may together appoint a nominee.
Is nomination form required to be witnessed ?
A nomination form must be witnessed by two witnesses.
What rights are conferred on the nominee and how can
he exercise the same?
The nominee is entitled to all the rights of the deceased
shareholder to the exclusion of all other persons. In the
event of death of the shareholder, all the rights of the
shareholder shall vest in the nominee. In case of joint
holding, all the rights shall vest in the nominee only in the
event of death of all the joint holders. The nominee is
required to apply to the Company by reporting death of
the nominator along with the attested copy of the death
certificate.
If shares are held in dematerialised form, nomination has
to be registered with the concerned DP directly, as per the
format prescribed by the DP.
What are the rights of a nominee vis-a-vis legal heirs of
the deceased shareholder?
As per the provisions of section 109A of the Companies
Act, 1956 and as held by Hon’ble Delhi and Mumbai High
Courts, the securities would vest on the nominee upon
the death of the registered holder notwithstanding the
rights of the legal heirs of the deceased.
TRANSFER / TRANSMISSION / TRANSPOSITION /
DUPLICATE CERTIFICATES ETC.

What is the procedure for transfer of shares in favour of
transferee(s)?

Transferee(s) need to send share certificate(s) along with
share transfer deed in the prescribed form 7B, duly filled
in, executed and affixed with share transfer stamps, to the
Company’s R&TA. It takes about 7 days for the Company’s
R&TA to process the transfer, although the statutory time
limit fixed for completing a transfer is one month under the
Listing Agreement and two months under the Companies
Act, 1956.
Is submission of Permanent Account Number (PAN)
mandatory for transfer / transmission / transposition of
shares in physical form?

SEBI has made it mandatory to furnish a copy of the PAN
to the Company / R&TA in the following cases, viz., (a) for
securities market transactions and off-market transactions
involving transfer of shares in physical form; (b) Deletion
of name of the deceased holder(s), where the shares are
held in the name of two or more shareholders; (c)
Transmission of shares to legal heir(s), where deceased
shareholder was the sole holder of the shares; and (d)
Transposition of shares – where there is a change in the
order of names in which physical shares are held jointly in
the names of two or more shareholders.
What should transferee (purchaser) do in case transfer
form is returned with objections?
Transferee needs to immediately proceed to get the errors/
discrepancies corrected. Transferee needs to contact the
transferor (seller) either directly or through his broker for
rectification or replacement with good securities. After
rectification or replacement of the securities, the same can
be resubmitted for effecting transfer. In case the errors are
non rectifiable, purchaser has recourse to the seller and
his broker through the Stock Exchange to get back his
money. However, in case of off-market transactions, matter
should be settled with the seller only.

Can single holding of shares be converted into joint
holdings or joint holdings into single holding? If yes,
what is the procedure involved in doing the same?

Yes, conversion of single holding into joint holdings or
joint holdings into single holding or transfer within the
family members leads to a change in the pattern of
ownership, and therefore, procedure for a normal transfer
as mentioned above needs to be followed.

How to get shares registered which are received by way
of gift? Does it attract stamp duty?

The procedure for registration of shares gifted (held in
physical form) is same as the procedure for a normal
transfer. The stamp duty payable for registration of gifted
shares would be @ 25 paise for every ` 100 or part thereof,
of the face value or the market value of the shares prevailing
as on the date of the document, if any, conveying the gift
or the date of execution of the transfer deed, whichever is
higher. The procedure for registration of shares gifted (held
in demat form) is the same as the procedure for transfer of
shares in demat form in off-market mode.

What is the procedure for getting shares in the name of
surviving shareholder(s), in case of joint holding, in the
event of death of one shareholder?

The surviving shareholder(s) will have to submit a request
letter supported by an attested copy of the death
certificate of the deceased shareholder and accompanied

208

Partnering India's new future. Sustainably.

by the relevant share certificate(s). The Company’s R&TA,
on receipt of the said documents and after due scrutiny,
will delete the name of the deceased shareholder from its
records and return the share certificate(s) to the surviving
shareholder(s) with necessary endorsement.

If a shareholder who holds shares in his sole name dies
without leaving a Will, how can his legal heir(s) claim
the shares?

The legal heir(s) should obtain a Succession Certificate or
Letter of Administration with respect to the shares and
send a true copy of the same, duly attested, along with a
request letter, transmission form, and the share
certificate(s) in original, to the Company’s R&TA for
transmission of the shares in his / their name(s).

In case of a deceased shareholder who held shares in his
/ her own name (single) and had left a Will, how do the
legal heir(s) get the shares transmitted in their name(s)?

The legal heir(s) shall have to get the Will probated by the
Court of competent jurisdiction and then send to the
Company’s R&TA a copy of the Will probated by the
Court, along with relevant details of the shares, the relevant
share certificate(s) in original and transmission form for
transmission of the shares in his / their name(s).

How can the change in order of names (i.e. transposition)
be effected?

Share certificates along with a request letter duly signed
by all the joint holders may be sent to the Company’s
R&TA for change in order of names, known as
‘transposition’. Transposition can be done only for the
entire holdings under a folio and therefore, requests for
transposition of part holding cannot be accepted by the
Company / R&TA. For shares held in demat form, investors
are advised to approach their DP concerned for
transposition of the shares.

What is the procedure for obtaining duplicate share
certificate(s) in case of loss / misplacement of original
share certificate(s)?

Shareholders who have lost / misplaced share certificate(s)
should inform the Company’s R&TA, immediately about
loss of share certificate(s), quoting their folio number and
details of share certificate(s), if available.

The R&TA shall immediately mark a ‘stop transfer’ on the
folio to prevent any further transfer of shares covered by
the lost share certificate(s). It is recommended that the
shareholders should lodge a FIR with the police regarding
loss of share certificate(s).

They should send their request for duplicate share
certificate(s) to the Company’s R&TA and submit
documents as required by the R&TA.

What is the procedure for splitting of a share certificate
into smaller lots?
Shareholders may write to the Company’s R&TA enclosing
the relevant share certificate for splitting into smaller lots.
The share certificates, after splitting, will be sent by the
Company’s R&TA to the shareholders at their registered
address.

What is the procedure to get the certificates issued in
various denominations consolidated into a single
certificate?

Consolidation of share certificates helps in saving costs
in the event of dematerialising shares and also provides
convenience in holding the shares physically.
Shareholders having certificates in various denominations
under the same folio should send all the certificates to the
Company’s R&TA for consolidation of all the shares into
a single certificate.

If the shares are not under the same folio but have the
same order of names, the shareholder should write to the
Company’s R&TA for the prescribed form for
consolidation of folios. This will help the investors to
efficiently monitor the holding and the corporate benefits
receivable thereon.

MISCELLANEOUS

Change of address

What is the procedure to get change of address registered
in the Company’s records?

Shareholders holding shares in physical form, may send a
request letter, duly signed by all the holders, giving the
new address along with Pin Code, to the Company’s
R&TA. Shareholders are also requested to quote their folio
number and furnish proof such as attested copies of Ration
Card / PAN Card / Passport / Latest Electricity or Telephone
Bill / Lease Agreement etc. If shares are held in
dematerialised form, information about change in address
needs to be sent to the DP concerned.

Change of name

What is the procedure for registering change of name of
shareholders?

Shareholders may request the Company’s R&TA for
effecting change of name in the share certificate(s) and
records of the Company. Original share certificate(s) along
with the supporting documents like marriage certificate,

Reliance Industries Limited 209

court order etc. should be enclosed. The Company’s
R&TA, after verification, will effect the change of name
and send the share certificate(s) in the new name of the
shareholders. Shareholders holding shares in demat form,
may request the concerned DP in the format prescribed
by DP.

Authority to another person to deal with shares

What is the procedure for authorising any other person
to deal with the shares of the Company?

Shareholder needs to execute a Power of Attorney in favour
of the concerned person and submit a notarised copy of
the same to the Company’s R&TA. After scrutiny of the
documents, the R&TA shall register the Power of Attorney
and inform the shareholders concerned about the
registration number of the same. Whenever a transaction
is done by the Power of Attorney holder, this registration
number should be quoted in the communication.

INITIATIVES TAKEN BY THE COMPANY

Setting new benchmarks in Investor Service

The service standards that have been set by the Company
for various investor related transactions / activities are as
follows :

(A) Registrations

Sl.
No.

Particulars

Transfers

Transmission

Transposition

4. Deletion of Name

Folio Consolidation

Change of Name

7. Demat

Remat

Issue of Duplicate Certificate

10. Replacement of Certificate

11. Certificate Consolidation

12. Certificate Split

Service Standards
(No. of working days)

(B) Correspondence

Particulars

Sl.
No.

Queries / Complaints

1. Non-receipt of

Annual Reports

2. Non-receipt of

Dividend Warrants

3. Non-receipt of Interest/

Redemption Warrants

4. Non-receipt of Certificate

Event Based

TDS Certificate

2. Allotment / call money

3. Others

Requests

Change of Address

Revalidation of
Dividend Warrants

Revalidation of
Redemption Warrants

Bank Mandate / Details

5. Nomination

Power of Attorney

7. Multiple Queries

IEPF Letters

Reminder Letters to Investors

Service Standards
(No. of working days)

The Company gives an opportunity by sending reminder
letters to investors for claiming their outstanding
dividend / interest amount which is due for transfer to
Investor Education & Protection Fund.

Consolidation of Folios

The Company has initiated a unique investor servicing
measure for consolidation of small holdings within the
same household. In terms of this, those shareholders
holding less than 10 shares (under a single folio) in the
Company, within the same household, can send such
shares for transfer along with transfer forms duly filled in
and signed, free of cost; the stamp duty involved in such
cases will be borne by the Company.

210

Partnering India's new future. Sustainably.

Scheme for disposal of ‘Odd Lot’ Equity Shares
At the Annual General Meeting of the Company held on
June 26, 1998, our Founder Chairman Shri Dhirubhai H.
Ambani, announced, for the benefit of small shareholders,
a scheme for disposal of ‘Odd Lot’ shares (the Scheme) to
facilitate such shareholders to realise the full market value
without having to suffer a discount for odd lots.
In order to assist small shareholders in disposal of such
odd lot shares held in physical form, the Company has
formed a Trust known as ‘Reliance Odd Lot Shares Trust’
which will dispose off the odd lot shares on behalf of the
shareholders.
The salient features of the Scheme in force from July 1,
1998, are as under :
(cid:1) This Scheme is available to Indian national residents
in respect of any master folio having holdings up to 49
shares;

(cid:1) The holders of Equity Shares in odd lot may avail of
the Scheme by lodging duly filled in application form
and a duly executed transfer deed along with the
relevant share certificate(s);

(cid:1) The odd lot shares offered under the Scheme are sold

through designated brokers in the BSE / NSE;

(cid:1) All costs of implementing the Scheme will be borne by

the Company.

INFORMATION REGARDING TAX ON DIVIDEND AND
SALE OF SHARES
The provisions relating to tax on dividend and sale of
shares are provided for ready reference of Shareholders:
(cid:1) No tax is payable by shareholders on dividend.
However, the Company is required to pay dividend tax
@ 15% and surcharge @5% together with education
cess @ 2% and higher education cess @ 1%;

(cid:1) Short Term Capital Gains (STCG) tax is payable in case
the shares are sold within 12 months from the date of
purchase @ 15% in case of ‘individuals’ together with
education cess @ 2% and higher education cess @
1%;

(cid:1) No Long Term Capital Gains (LTCG) tax is payable on
sale of shares through a recognised stock exchange,
provided Securities Transaction Tax (STT) has been
paid and shares are sold after 12 months from the date
of purchase. In any other case, lower of the following
is payable as long term capital gain tax:

(a) 20% of the capital gain computed after
substituting ‘cost of acquisition’ with ‘indexed
cost of acquisition’;

(b) 10% of the capital gain computed before
substituting ‘cost of acquisition’ with ‘indexed
cost of acquisition’.

(cid:1) STT is payable as under

- @ 0.125% by both the purchaser and the seller in
respect of delivery based transactions (@0.10%
w.e.f. July 1, 2012);

- @ 0.017% by the seller in respect of derivatives;
- @ 0.025% by the seller in respect of transactions in
securities not being settled by actual delivery.
INVESTOR SERVICING AND GRIEVANCE REDRESSAL
- EXTERNAL AGENCIES
Ministry of Corporate Affairs
Ministry of Corporate Affairs (MCA) e-Governance
initiative christened as “MCA 21” on the MCA portal
(www.mca.gov.in): One of the key benefits of this initiative
includes timely redressal of investor grievances. MCA 21
system accepts complaints under the eForm prescribed,
which has to be filed online.
The status of complaint can be viewed by quoting the
Service Request Number (SRN) provided at the time of
filing the complaint.
Securities and Exchange Board of India (SEBI)
SEBI, in its endeavour to protect the interest of investors,
has provided a platform wherein the investors can lodge
their grievances. This facility is available on the SEBI
website (www.sebi.gov.in) under the Investor Guidance
Section.
SEBI Complaints Redress System (SCORES)
The investor complaints are processed in a centralized
web based complaints redress system. The salient features
of this system are: Centralised database of all complaints.
Online upload of Action Taken Reports (ATRs) by the
concerned companies and Online viewing by investors of
actions taken on the complaint and its current status.
Stock Exchanges
National Stock Exchange of India Limited (NSE) - NSE has
formed an Investor Grievance Cell (IGC) to redress
investors’ grievances electronically. The investors have
to log on to the website of NSE i.e. www.nseindia.com and
go to the link “Investors Service”.
BSE Limited (BSE) - BSE provides an opportunity to the
investors to file their complaints electronically through
its website www.bseindia.com under the “Investor
Grievances”.
Depositories
National Securities Depository Limited (NSDL) - In order

Reliance Industries Limited 211

to help its clients resolve their doubts, queries, complaints,
NSDL has provided an opportunity wherein they can raise
their queries by logging on to www.nsdl.co.in under the
“Investors” section or an email can be marked mentioning
the query to relations@nsdl.co.in.

Central Depository Services (India) Limited (CDSL) -
Investors who wish to seek general information on
depository services may mail their queries to
investors@cdslindia.com. With respect to the complaints
/ grievances of the demat account holders relating to the
services of the DP, mails may be addressed to
complaints@cdslindia.com

Other Information

Permanent Account Number (PAN)

It has become mandatory to quote PAN before entering
into any transaction in the securities market. The Income
Tax Department of India has highlighted the importance
of PAN on its website: www.incometaxindia.gov.in wherein
lot of queries with respect to PAN have been replied to in
the FAQ section.

Insider Trading

In order to prohibit insider trading and protect the rights
of innocent investors, SEBI has enacted the SEBI
(Prohibition of Insider Trading) Regulations 1992. As per
Regulation 13 of the said Regulations initial and continual
disclosures are required to be made by investors as under:

Initial Disclosure

As per sub-regulation (1), any person who holds more
than 5% shares or voting rights in any listed company
shall disclose to the company in Form A, the number of
shares or voting rights held by such person, on becoming
such holder, within 2 working days of : (a) the receipt of
intimation of allotment of shares; or (b) the acquisition of
shares or voting rights, as the case may be.

Continual Disclosure

As per sub-regulation (3), any person who holds more
than 5% shares or voting rights in any listed company
shall disclose to the company in Form C, the number of
shares or voting rights held and change in shareholding
or voting rights, even if such change results in
shareholding falling below 5%, if there has been change
in such holdings from the last disclosure made under sub-
regulation (1) or under this sub-regulation; and such
change exceeds 2% of total shareholding or voting rights
in the company.

SHAREHOLDERS’ GENERAL RIGHTS

(cid:1) To receive not less than 21 days notice of general

meetings unless consented for a shorter notice.

(cid:1) To receive notice and forms for Postal Ballots in terms
of the provisions of the Companies Act, 1956 and the
concerned Rules issued thereunder.

(cid:1) To receive copies of Balance Sheet and Profit and Loss
Account along with all annexures / attachments
(Generally known as Annual Report) not less than 21
days before the date of the annual general meeting
unless consented for a shorter period.

(cid:1) To participate and vote at general meetings either
personally or through proxy (proxy can vote only in
case of a poll).

(cid:1) To receive dividends and other corporate benefits like

bonus, rights etc. once approved.

(cid:1) To demand poll on any resolution at a general meeting
in accordance with the provisions of the Companies
Act, 1956.

(cid:1) To inspect statutory registers and documents as

permitted under law.

(cid:1) To require the Board of Directors to call an extraordinary
general meeting in accordance with the provisions of
the Companies Act, 1956.

DUTIES / RESPONSIBILITIES OF INVESTORS

(cid:1) To remain abreast of corporate developments, company
specific information and take informed investment
decision(s).

(cid:1) To be aware of relevant statutory provisions and ensure

effective compliance therewith.

(cid:1) To deal with only SEBI registered intermediaries while

dealing in the securities.

(cid:1) Not to indulge in fraudulent and unfair trading in
securities nor to act upon any unpublished price
sensitive information.

(cid:1) To participate effectively in the proceedings of

shareholders’ meetings.

(cid:1) To contribute to the Greener Environment and
accordingly register email addresses to enable the
Company to send all documents / notices including
Annual Reports electronically.

(cid:1) To register nominations, which would help the nominees
to get the shares transmitted in their favour without
any hassles.

212

Partnering India's new future. Sustainably.

(cid:1) To respond to communications seeking shareholders’

(cid:1) Insist that the DIS numbers are pre-printed and your

approval through Postal Ballot.

account number (client id) be pre stamped.

(cid:1) To respond to communications of SEBI / Depository /
DP / Brokers / Sub-brokers / Other Intermediaries /
Company, seeking investor feedback / comments.

(cid:1) In case you are not transacting frequently make use of
the freezing facilities provided for your demat account.

(cid:1) Pay the margins required to be paid in the time

DEALING IN SECURITIES MARKET

prescribed.

DO’S

(cid:1) Transact only through Stock Exchanges.

(cid:1) Deal only through SEBI registered intermediaries.

(cid:1) Complete all the required formalities of opening an
account properly (Client registration, Client agreement
forms etc).

(cid:1) Ask for and sign “Know Your Client Agreement”.

(cid:1) Read and properly understand the risks associated with
investing in securities / derivatives before undertaking
transactions.

(cid:1) Assess the risk - return profile of the investment as
well as the liquidity and safety aspects before making
your investment decision.

(cid:1) Ask all relevant questions and clear your doubts with

your broker before transacting.

(cid:1) Invest based on sound reasoning after taking into
account all publicly available information and on
fundamentals.

(cid:1) Beware of the false promises and to note that there are
no guaranteed returns on investments in the Stock
Market.

(cid:1) Give clear and unambiguous instructions to your

broker / sub-broker / DP.

(cid:1) Be vigilant in your transactions.

(cid:1) Insist on a contract note for your transaction.

(cid:1) Verify all details in the contract note, immediately on

receipt.

(cid:1) Always settle dues through the normal banking

channels with the market intermediaries.

(cid:1) Crosscheck details of your trade with details as available

on the exchange website.

(cid:1) Scrutinize minutely both the transaction and the holding

statements that you receive from your DP.

(cid:1) Keep copies of all your investment documentation.

(cid:1) Handle DIS Book issued by DP’s carefully.

(cid:1) Deliver the shares in case of sale or pay the money in

case of purchase within the time prescribed.

(cid:1) Participate and vote in general meetings either

personally or through proxy.

(cid:1) Be aware of your rights and responsibilities.

(cid:1) In case of complaints, approach the right authorities

for redressal in a timely manner.

DON’TS

(cid:1) Don’t undertake off-market transactions in securities.

(cid:1) Don’t deal with unregistered intermediaries.

(cid:1) Don’t fall prey to promises of unrealistic returns.

(cid:1) Don’t invest on the basis of hearsay and rumours;

verify before investment.

(cid:1) Don’t forget to take note of risks involved in the

investment.

(cid:1) Don’t be misled by rumours circulating in the market.

(cid:1) Don’t blindly follow media reports on corporate
developments, as some of these could be misleading.

(cid:1) Don’t follow the herd or play on momentum - it could

turn against you.

(cid:1) Don’t be misled by so called hot tips.

(cid:1) Don’t try to time the market.

(cid:1) Don’t hesitate to approach the proper authorities for

redressal of your doubts / grievances.

(cid:1) Don’t leave signed blank DISs of your demat account

lying around carelessly or with anyone.

(cid:1) Do not sign blank DIS and keep them with DP or broker
to save time. Remember your carelessness can be your
peril.

(cid:1) Do not keep any signed blank transfer deeds.

NOTE

The contents of this Referencer are for the purpose of
general information. The readers are advised to refer to
the relevant Acts / Rules / Regulations / Guidelines /
Clarifications.

Reliance Industries Limited 213

Members
Feedback Form
2011-2012

Name : ............................................................................. e-mail id :. .............................................................................................

Address : ..............................................................................................................................................................................................

DP ID. : ...............................................................................................................................................................................................

Client ID. : ..........................................................................................................................................................................................

Folio No. : ...........................................................................................................................................................................................
(in case of physical holding)

No. of equity shares held : .................................................................

Signature of member

Excellent

Very Good

Good

Satisfactory Unsatisfactory

Directors' Report and
Management's Discussion
and Analysis

Report on
Corporate Governance

Shareholders' Referencer

Contents

Presentation

Contents

Presentation

Contents

Presentation

Quality of Financial and
non- financial information
in the Annual Report

Contents

Presentation

Information on
Company's Website

Contents

Presentation

INVESTOR SERVICES

Turnaround time for response to
shareholder query

Quality of response

Timely receipt of Annual Report

Conduct of Annual General Meeting

Timely receipt of dividend warrants /
payment through ECS

Promptness in confirming demat /
remat requests

Overall rating

Views/Suggestions for improvement, if any ............................................................................................................................

.......................................................................................................................................................................................................

Members are requested to send this feedback form to the address given overleaf.

214

Partnering India's new future. Sustainably.

BUSINESS REPLY INLAND LETTER

Postage
will be
paid by the
Addressee

Business Reply Permit No.
MBI-S-1363
Nariman Point
Mumbai - 400 021

No postage
stamp
necessary if
posted in
INDIA

To,
Shri S. Sudhakar
Vice President - Corporate Secretarial
Reliance Industries Limited
Registered Office: 3rd Floor, Maker Chambers IV
222, Nariman Point
Mumbai 400 021

Fold

(cid:1)

DP Id*

Client Id*

Reliance Industries Limited 215

ATTENDANCE SLIP

Registered Office: 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021.

PLEASE FILL ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE MEETING HALL
Joint shareholders may obtain additional Slip at the venue of the meeting.

Master Folio No.

No. of Shares

NAME AND ADDRESS OF THE SHAREHOLDER

I hereby record my presence at the 38TH ANNUAL GENERAL MEETING of the Company held on
Thursday, June 7, 2012 at 11.00 a.m. at Birla Matushri Sabhagar, 19, New Marine Lines, Mumbai 400 020.

* Applicable for investors holding shares in electronic form.

Signature of Shareholder / proxy

PROXY FORM

Registered Office: 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021.

DP Id*

Client Id*

Master Folio No.

I/We…………..…………………………………………………………………………………………. of …………………being a member/ members of
Reliance Industries Limited hereby appoint…………………...............................................…………………………………………
……..………………………………………………………………….. of ……………………………………………………….............or failing
him……………………………………...……….......................................... of …………………....................…………….....................................

as my/our proxy to vote for me/us and on my/our behalf at the 38th Annual General Meeting of the Company to be held on Thursday,
June 7, 2012 at 11.00 a.m. and at any adjournment thereof.

** I wish my above Proxy to vote in the manner as indicated in the box below:

Resolutions
1. Adoption of Accounts, Reports of the Board of Directors and Auditors
2. Declaration of Dividend on Equity Shares
3. Re-appointment of the following Directors retiring by rotation:

a) Shri M.L. Bhakta
b) Shri Hital R. Meswani
c) Prof. Dipak C. Jain
d) Shri P.M.S. Prasad
4. Appointment of Auditors
5. Re-appointment of and remuneration payable to Shri Nikhil R. Meswani as a Whole-time Director
6. Re-appointment of and remuneration payable to Shri Pawan Kumar Kapil as a Whole-time Director

For

Against

(cid:1)

Signed this…………………. day of …………………………. 2012

* Applicable for investors holding shares in electronic form.

Please see the instructions overleaf

Signature

Affix a
15 paise
Revenue
Stamp

216

Partnering India's new future. Sustainably.

NOTE: (1) The proxy, to be valid, should be deposited at the Registered Office of the Company at
3rd Floor, Maker Chambers IV, 222 Nariman Point, Mumbai 400 021 not less than 48 hours
before the time fixed for holding the meeting or adjourned meeting.

(2) A Proxy need not be a member of the Company.

**(3) This is only optional. Please put a 'X' in the appropriate column against the resolutions indicated
in the Box. If you leave the 'For' or 'Against' column blank against any or all the resolutions, your
Proxy will be entitled to vote in the manner as he/she thinks appropriate. Should you so desire,
you may also appoint the Chairman or the Company Secretary of the Company as your Proxy, who
shall carry out your mandate as indicated above in the event of a poll being demanded at the
meeting.

(4) Appointing a proxy does not prevent a member from attending the meeting in person if he so

wishes.

(5)

In the case of jointholders, the signature of any one holder will be sufficient, but names of all the
jointholders should be stated.

Partnering India’s new future. Sustainably.

India has an interesting story to tell the world.

A story of dynamism and confidence to face the

future, on the strength of new capabilities and a

vibrant market for consumption.

Reliance is creating opportunities for future

generations by building a unique portfolio of

upstream, refining and petrochemicals business

with industry-leading performance, and time-

critical investments in emerging sectors.

Our business growth mirrors the

evolving aspirations of millions

of fellow Indians to embrace an

advanced quality of life. The result is

an unprecedented surge in consumption

across the vast social spectrum.

This great Indian opportunity is the

wellspring of our strength.

As India helps drive global growth, we

are passionately investing our resources

and energies in helping accelerate

India’s socio-economic progress.

We are committed to sustain

a culture of operational

excellence, responsible resource

utilisation and creating a platform

for sustainable growth to benefit all

stakeholders.

Nation Building - The Reliance Way

You can give the visually impaired a white

cane and they will not fall. Or give them

knowledge and they will lead.

Reliance Drishti recently

launched India’s first

registered Braille

newspaper in Hindi.

The newspaper is a small

step that will open up a

world of information and

knowledge for the

visually impaired.

Reliance Drishti, an initiative of Reliance
Foundation, aims to help the visually impaired
acquire skills that will make them independent
and relevant in society. It has also made it
a mission to bring the gift of sight to the
visually impaired, especially those who are
underprivileged. Till date, over 10,000 cornea
transplant surgeries have been performed
and lakhs of children have been provided free
eye check-ups.

Reliance Foundation, envisaged to become
one of the foremost professional philanthropic
focuses on
organisations
transformation,
five
education, health, urban renewal and arts,
culture & heritage.

the world,
rural

core pillars:

Our way of thinking is clear... when we transform
the lives of people, we transform India.

www.ril.com

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2
0
1
1
-
1
2

Srijan Shekhar
(Age Group: 5-7 years)

Swapnil Agrawal
(Age Group: 5-7 years)

Nimish Nair
(Age Group: 5-7 years)

Priyanshu Patel
(Age Group: 5-7 years)

Sakcham Gupta
(Age Group: 5-7 years)

Hemal Mahavar
(Age Group: 8-10 years)

Aryam Bhadauria
(Age Group: 8-10 years)

Shrey Patel
(Age Group: 11-13 years)

Dhwani Sonawane
(Age Group: 11-13 years)

Poonjee Gupta
(Age Group: 11-13 years)

Pranay Sharma
(Age Group: 8-10 years)

Dev Chauhan
(Age Group: 8-10 years)

Sarth Patel
(Age Group: 8-10 years)

T V Sreesh
(Age Group: 11-13 years)

Tanya Bhatia
(Age Group: 11-13 years)

Pictures/ photographs shown in this report are for representation purpose only. Unless expressly authorised, Reliance
Group neither claims any intellectual property rights nor will be responsible for any infringement action.

PARTNERING
INDIA’S
NEW FUTURE.
SUSTAINABLY.

ANNUAL
REPORT
2011-12