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ANNUAL REPORT 2012-13
FULFILLING INDIA’S
ASPIRATIONS.
WITH INNOVATION AND
ENTERPRISE.
Awards and Recognitions
RIL continues to receive recognition for industry leadership and excellence in its fields of operations. Some of the
major awards and recognitions conferred during the year include:
Health, Safety and
Environment
Technology, Patents, R&D
and Innovation
l Hazira Manufacturing
Division was awarded
the Best Prax Prize for
Innovation by QIMPRO
Corporate Social Responsibility
l Hazira Manufacturing
Division, Reliance
Community Care Centre,
received a Trophy for work
done under the National
AIDS Control Program
Phase III from Population
Foundation of India
l Nagothane Manufacturing
Division received the
National Award for
Innovative Training
Practices for security
training practices by Indian
Society for Training
& Development
l Dahej Manufacturing
Division received the
Greentech Gold Award for
HR Excellence
Sustainability
l Hazira Manufacturing
Division received the CII-ITC
Sustainability Awards 2012
and the coveted Certificate
of Commendation for
Significant Achievement
in the area of Sustainable
Development
Leadership
l Conferred the International
Refiner of the Year 2013
Award at HART Energy’s
27th World Refining &
Fuel Conference
l Hazira Manufacturing
Division won the “Mark
of Excellence Award” at
the IST Convention on
Leadership Excellence
organised by IGCL
Corporate Rankings
and Ratings
l Received the appreciation
plaque from ASSOCHAM
for its CSR activities
Quality
l Dahej & Hazira
Manufacturing Divisions
won the Three Star (highest
award) at ICQCC
l Received the IMC
Ramkrishna Bajaj National
Quality Award under the
manufacturing category
l Hazira Manufacturing
Division received the
ASQ’s International Team
Excellence Award from
American Society for Quality
Project
l Dahej Manufacturing
Division received the best
viewer’s choice award for
implementing a Six Sigma
Project from the American
Society for Quality
Division received the
Platinum Award for its Six
Sigma Project from Concept
Business Excellence
l
Jamnagar Manufacturing
Division won the QualTech
Prize for Improvement
(Manufacturing Process
Excellence) from QIMPRO
l Hazira Manufacturing
l
l Received the Management
of Health, Safety &
Environment Award from
Indian Chemical Council
l Dahej Manufacturing
Division was awarded
the Golden Peacock
Environment Management
Award
l Hazira Manufacturing
Division won the Golden
Peacock Occupational
Health & Safety Award
l Vadodara Manufacturing
Division received the CII-
Environment Best Practices
Award
l KG-D6 operations received
the International Safety
Award with distinction from
the British Safety Council
l
Jamnagar Manufacturing
Division received the Safety
Innovation Award from
Institution of Engineers,
New Delhi for the 3rd
consecutive year in a row
Energy & Water
Conservation / Efficiency
l
Jamnagar Manufacturing
Division (DTA) refinery
received the Jawaharlal
Nehru Centenary Award
from the Ministry of
Petroleum & Natural Gas
for being among the three
refineries, which have
achieved the lowest specific
energy consumption among
Indian refineries
Jamnagar Manufacturing
Division received an
Innovative Project award
from the Bureau of Energy
Efficiency, Ministry of
Power, Govt. of India
l Reliance Corporate IT Park,
Navi Mumbai was adjudged
by CII as a National Energy
Efficient Unit in India
FULFILLING INDIA’S ASPIRATIONS.
WITH INNOVATION AND ENTERPRISE.
India is on an undeniable growth trajectory, matched by few in the world, for scale and vigour. Fuelled by boundless
aspirations and the infectious energy of a young populace, the country is fast progressing towards a definitive role
in the global economic order.
Not only is it leading to an increasing share of global commerce for India as a nation, but also catalysing
consumption, resulting in the creation of a groundswell of opportunity.
Addressing the aspirations of the Indian populace, our businesses are intrinsically linked to India’s growth
trajectory. Given India’s unique demographic advantage, our businesses remain relevant to the youth of today
who will become the leaders of tomorrow.
Innovation and enterprise form the essence of this surge of opportunities and find reflection in every facet of
our operations.
We are making large investments in all our key business categories, i.e. Oil & Gas, Refining, Petrochemicals, Retail
and 4G, to reinforce the spirit of enterprise.
Across our businesses, we have demonstrated abilities to build world-scale capacities and infrastructure. We have
enhanced our business footprint from the conventional energy chain to consumer businesses and delivered value.
Our businesses are deeply aligned with the ethos of innovation. We have constantly endeavoured to operate at
the forefront of new technologies. We have invested in continuously developing new products and seeking new
applications, which are suitable for Indian markets and conditions. We have, for instance, integrated a technology
platform with our Retail business.
Over the years, we have tapped into the enormous opportunities presented by the Indian economy. The evolving
economic landscape and the aspirations of the people have driven us to aim higher, execute our plans seamlessly
and sustain the growth momentum. This has helped us touch the lives of our fellow citizens and lay the foundation
for the long-term development of our nation.
We understand these aspirations and the opportunities that lie within. This drives us towards continuous efforts
in enterprise and innovation which act as catalysts in realising these aspirations.
Contents
Company Overview
02 Highlights
03 10 Year Financial Performance
04 Letter to Shareholders
06 The Board of Directors
08 Reliance Foundation
14 Company Information
15 Financial Highlights
Statutory Reports
16 Notice of Annual General Meeting
84 Secretarial Audit Report
19 Management’s Discussion and Analysis
86 Directors’ Report
49 Report on Corporate Social Responsibility
102 Auditors’ Certificate on Corporate Governance
55 Report on Corporate Governance
103 Business Responsibility Report
Financial Statements
113 Independent Auditors’ Report on
163 Consolidated Statement of Profit and Loss
Financial Statements
116 Balance Sheet
117 Statement of Profit and Loss
118 Cash Flow Statement
120 Significant Accounting Policies
123 Notes on Financial Statements
161 Independent Auditors’ Report on
Consolidated Financial Statements
162 Consolidated Balance Sheet
164 Consolidated Cash Flow Statement
166 Significant Accounting Policies on
Consolidated Accounts
167 Notes on Consolidated
Financial Statements
204 Financial Information of
Subsidiary Companies
208 Shareholders’ Referencer
221 Members’ Feedback Form
223 Attendance Slip and Proxy Form
2
Highlights
Reliance Industries Limited (RIL)
largest private sector
is India’s
company with businesses in the
energy and materials value chain.
RIL
is the first private sector
company from India to feature in
Fortune Global 500 list of ‘World’s
Largest Corporations’ and ‘World’s
Top 100 companies’, ranking 99th
in terms of revenues and 130th in
terms of profits in 2012.
Operational Highlights
l
l
l
Largest refining capacity at
any single location
Largest producer of Polyester
Fibre and Yarn
5th largest producer of
Paraxylene (PX)
l
l
l
5th largest producer of
Polypropylene (PP)
8th largest producer of Mono
Ethylene Glycol (MEG)
9th largest producer of
Purified Terephthalic Acid
(PTA)
RIL’s Contribution to India’s Economic Growth
14%
RIL’s exports as %
of India’s exports
8.6%
RIL’s weightage
in the BSE Sensex
4.8%
RIL as % of the Government
of India’s indirect tax revenues
7.0%
RIL’s weightage in the
NSE Nifty
4%
RIL as % of the total
market capitalisation in India
Fulfilling India’s Aspirations. With Innovation and Enterprise. 3
10 Year Financial Performance
TURNOVER (` Crore)
PROFIT AFTER TAX (` Crore)
(Excluding exceptional item)
56,247
73,164
89,124
118,354
139,269
146,328
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11
11-12
12-13
200,400
258,651
339,792
371,119
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11
11-12
12-13
5,160
7,572
9,069
11,943
15,261
15,637
16,236
20,286
20,040
21,003
0
0
0
,
0
5
0
0
0
,
0
0
1
0
0
0
,
0
5
1
0
0
0
,
0
0
2
0
0
0
,
0
5
2
0
0
0
,
0
0
3
0
0
0
,
0
5
3
0
0
0
,
0
0
4
0
0
0
,
5
0
0
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0
1
0
0
0
,
5
1
0
0
0
,
0
2
0
0
0
,
5
2
NETWORTH (` Crore)
MARKET CAPITALISATION (` Crore)
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11
11-12
12-13
34,453
40,403
49,804
63,967
81,449
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11
11-12
12-13
126,373
137,171
151,540
166,096
179,995
75,132
76,079
110,958
198,905
239,721
244,757
249,802
329,179
351,320
342,984
0
0
0
,
0
2
0
0
0
,
0
4
0
0
0
,
0
6
0
0
0
,
0
8
0
0
0
,
0
0
1
0
0
0
,
0
2
1
0
0
0
,
0
4
1
0
0
0
,
0
6
1
0
0
0
,
0
8
1
0
0
0
,
0
5
0
0
0
,
0
0
1
0
0
0
,
0
5
1
0
0
0
,
0
0
2
0
0
0
,
0
5
2
0
0
0
,
0
0
3
0
0
0
,
0
5
3
0
0
0
,
0
0
4
EARNINGS PER SHARE (`)*
(Excluding exceptional item)
BOOK VALUE PER SHARE (`)*
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11
11-12
12-13
18.5
27.2
32.5
41.3
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11
11-12
12-13
50.9
49.7
49.7
62.0
61.2
64.8
123.4
145.0
178.7
221.3
281.8
401.5
419.5
463.2
507.3
557.5
0
1
0
2
0
3
0
4
0
5
0
6
0
7
0
5
0
0
1
0
5
1
0
0
2
0
5
2
0
0
3
0
5
3
0
0
4
0
5
4
0
0
5
0
5
5
0
0
6
* Normalised on account of issue of Bonus Share in the ratio of 1:1 in 2009-10
Reliance Industries Limited 4
Letter to Shareholders
Dear Fellow Shareowners,
The global economic scenario in FY 2012-13 continued to be fraught
with challenges. Major economies witnessed slower growth and the
Eurozone was full of uncertainty. As the year progressed, business
environment remained difficult and operating in such a testing
environment proved challenging.
Despite the global challenges, we saw constructive demand growth in most
of our businesses. Global oil demand was up by 0.9 million barrels per day
in 2012. The demand for polymers and polyester products in India grew by
12% and 5%, respectively. We combined the strength of our portfolio and
integrated business model with prudent management to realise revenue
growth of 9% and net profit growth of 5%.
Reliance achieved a record turnover of ` 371,119 crore ($ 68.4 billion) and
net profit of ` 21,003 crore ($ 3.9 billion). RIL also achieved highest ever
exports of ` 239,226 crore ($ 44.1 billion) during the year. The growth in
earnings was largely driven by strong and improved refining margins during
the year. We maintained high operating rates at all our manufacturing
locations. Our businesses have delivered industry leading performances.
This is a reflection of the quality of our assets and growing demand for our
products and services across the world.
Our Jamnagar refinery complex operated at over 110% of design capacity.
The refineries achieved record crude processing of 68.5 MMT, surpassing its
previous record. Refining margin environment remained volatile throughout
the year. Despite that we achieved GRMs of $ 9.2/bbl for the year, which was
highest in the last four years. RIL’s Jamnagar refinery continues to benefit
by processing advantaged crude sourced from diverse markets and produce
clean fuels at low operating costs. We have been successful in placing our
products globally in the markets with most stringent specifications. Our
Company also received the International Refiner of the Year Award from
HART Energy, USA, which is a true testimony of our world-class assets and
operations. Reliance is the only Asian refiner to have been conferred this
award twice.
Reliance’s petrochemicals business saw a mixed trend last year. The domestic
demand for petrochemical products remained strong although margins
were impacted by regional market conditions. The ethylene chain margins
remained stable while polyester chain margins came under pressure due
to excess supply, high inventory levels and slower demand growth in some
key markets. We believe urbanisation and rising aspirations of the Indian
consumer will continue to drive demand across all end uses, in particular
apparel, housing, automobiles, organised retailing and communication. Per
capita consumption of plastics in India is expected to rise from 7 kg to 20 kg
over the next decade and our planned expansion is well timed to participate
in this growth opportunity.
In our domestic upstream business, we have rationalised our portfolio in
terms of prospectivity and risk profile. Production from the KG-D6 block
continued to decline during the year. To augment the production from the
current fields, we have planned various activities including work-overs, side
tracks and compressor addition to maximise recovery. Additionally, both
RIL and BP have submitted the KG-D6 block enhancement plan using
existing infrastructure to increase production from the block. Under this
plan, we are planning to invest in a series of projects to develop around
Mukesh D. Ambani
Chairman & Managing Director
Reliance achieved a record
turnover of ` 371,119
crore ($ 68.4 billion) and
net profit of ` 21,003
crore ($ 3.9 billion). RIL
also achieved highest
ever exports of ` 239,226
crore ($ 44.1 billion)
during the year. The
growth in earnings was
largely driven by strong
and improved refining
margins during the year.
Our businesses have
delivered industry leading
performances.
Fulfilling India’s Aspirations. With Innovation and Enterprise. 4 trillion cubic feet of discovered
natural gas resources from the
block. The field development plan
for the R-Series project has been
submitted to the Government of
India for approval. This along
with other projects is expected to
add incremental production in the
next four to five years. We believe
gas from these projects will deliver
energy to millions of Indians and
would significantly help India in
reducing import dependence.
Reliance has made
significant
investments in the US shale gas
ventures over the last two years.
growth
Production
from our
in unconventional
investments
liquids-rich
in
resource plays
North America has reinforced our
confidence in creating long term
value for our shareholders from
this diversification. US shale gas
business achieved record revenues
and EBITDA for the year 2012.
Revenues and EBITDA more than
doubled to $ 545 million and $ 422
million respectively in 2012. Our
share of production in 2012 was at
101 BCFe, an increase of 166% in
comparison to the previous year.
With improvement in the US gas
prices and continued focus on the
liquids-rich acreage in the Eagle
Ford area, Reliance is expected to
grow this business sustainably over
the next few years.
Our major investments during the
year were mainly concentrated on
expanding capacity and boosting
production capability. Our focus
is to maximise the benefit of being
an
integrated energy Company.
Integration with the refinery at
Jamnagar provides us with a unique
in sourcing feedstock
advantage
for
into
further value addition
petrochemicals. Reliance made a
significant progress in its proposed
expansion plan in the petrochemicals
business. Our new cracker will
source the feedstock from complex
refineries and build world-scale
globally competitive cracker capacity.
We have completed
technology
selection and engineering contractor
selection
projects.
for most
We have already commenced the
order placement for some of the long
lead equipments. We are confident
of meeting our stated time lines in
terms of all project executions and
will see commencement of capacity
additions starting this financial year.
sustainable
We are also setting up the world’s
largest petcoke gasification facility
at Jamnagar. On completion of
this project, it will provide us
long-term
energy
security for the entire Jamnagar
complex at a globally competitive
cost. This will help us in reducing
our overall energy bill significantly.
Effectively, these
large projects,
off-gas cracker and gasification are
being implemented without relying
on any new externally sourced
feedstock.
We are delighted to see our retail
business achieving a milestone of
annual revenue crossing ` 10,000
crore in FY 2012-13. Our revenues
have grown by 42% on a year
on year basis. More importantly,
Reliance Retail has turned EBITDA
positive last year. We have added
184 stores during the year, taking
total number of stores to 1,466 by
the end of the year. Our nationwide
footprint, new store additions and
strong same store sales growth has
certainly strengthened our position
in this sector.
We believe India has a unique
opportunity to surpass the world and
become a leader in delivery of digital
content. Reliance JioInfocomm Ltd.
(RJIL) plans to provide reliable fast
internet connectivity on pan India
basis. In addition to connectivity,
RJIL also plans to enable end-
to-end solutions that address the
entire value chain across various
digital services in key domains of
national interest such as education,
financial
healthcare,
services,
government-citizen
interfaces and entertainment. RJIL
has finalised key agreements with
its
technology partners, service
providers, infrastructure providers,
security,
5
application
device
manufacturers and other strategic
partners for the project.
partners,
investing
in
Participating and
India’s growth has been
the
fundamental principle of Reliance’s
evolution. Reliance has always
maintained
conservative
its
financial profile and investment
grade ratings while pursuing future
growth opportunities. At Reliance,
we have been and continue to
remain
creating
focused
long-term shareholder value.
on
the
top 100
We are among
companies in the world and have
been globally felicitated consistently
for shareholder value creation over
the past three decades.
committed
in Reliance’s
towards
are
We
investing
future.
We are confident that our large
capital expenditure programme will
enable us to take full advantage of
our market leadership positions
and achieve our growth ambitions.
I would
like to thank all our
colleagues in India and around
the world for their hard work
and valued contribution during
2012-13. Together we have much to
look forward to as we strive to make
our company even stronger and
continue to focus on delivering for
our customers.
for
I am grateful to the Board of
Directors
their unwavering
support and guidance. I take this
opportunity to express my gratitude
to all our stakeholders, who have
reposed trust in us and extended
their constant support.
With best wishes,
Sincerely,
Mukesh D. Ambani
Chairman & Managing Director
16 April 2013
Reliance Industries Limited 6
The Board of Directors
1
2
3
4
5
6
7
1.
2.
Shri P. M. S. Prasad
Executive Director
Prof. Dipak C. Jain
Independent Director
3.
Shri Nikhil R. Meswani
Executive Director
4. Dr. Dharam Vir Kapur
Independent Director
5.
6.
7.
Shri Ramniklal H. Ambani
Non-Executive
Non-Independent Director
Shri Mansingh L. Bhakta
Independent Director
Shri Mukesh D. Ambani
Chairman and Managing Director
Fulfilling India’s Aspirations. With Innovation and Enterprise.
7
8
9
10
11
12
13
8.
9.
Shri Yogendra P. Trivedi
Independent Director
10. Shri Hital R. Meswani
Executive Director
12. Dr. Raghunath A. Mashelkar
Independent Director
Shri Mahesh P. Modi
Independent Director
11. Prof. Ashok Misra
Independent Director
13. Shri Pawan Kumar Kapil
Executive Director
Reliance Industries Limited
8
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.
l Reliance Foundation has
touched the lives of over
a million underprivileged
country,
the
across
reaching out to over 2,500
villages and various urban
locations.
l Reliance
Foundation
BIJ (Bharat India Jodo)
supports
programme
small
and marginal
farmers along the value
input
through
chain
provision,
technical,
post-harvest as well as
marketing support.
l Reliance
Foundation
the
BIJ has catalysed
farmers’
formation of
institutions
across
nearly 300 villages and
has engaged with over
100,000 villagers. The
programme has improved
intake
the nutritional
rural
4,000
of over
through
households
Reliance
Nutrition
Gardens.
l
l
The Foundation’s Information
Services programme
links
seekers with
knowledge
to
providers
knowledge
provide need based, locale-
specific information in local
languages. Within six months
of its launch, the programme
has reached out to 1400
villages.
Sir H N Hospital is being
revamped into a 19 storey,
800,000 square feet world-
class
tertiary health care
facility.
l More
than 11,000 cornea
been
transplants
have
undertaken under Reliance
Foundation Drishti,
the
largest corporate-run cornea
transplant drive. The initiative
also
launched India’s first
registered national Hindi
newspaper in Braille. Over
3,500
impaired
benefit from this fortnightly
circulation.
visually
l
for All’
‘Health
initiative was
launched under an outreach
programme in December 2012 to
provide primary and preventive
health care to the poor and the
vulnerable using state-of-the-art
technology for service delivery.
So far, over 40,000 individuals
have enrolled under the family
health card scheme and over 7,500
patients (of which 72% are women
and children) have been provided
free medical aid in the first 100
days of operation.
l Menstrual hygiene programme was
launched for improving health and
hygiene among women through
Reliance Foundation branded
affordable
napkins,
sanitary
‘Meeta’. Currently, the initiative
reaches out to 500,000 women in
over 850 villages in Gujarat.
l
The Foundation brought a Mummy
exhibition to India in partnership
with BP. The exhibition had over
450,000 visitors, including over
100,000 children from across 300
schools in Mumbai.
Fulfilling India’s Aspirations. With Innovation and Enterprise. Reliance Industries Limited
9
Major Products and Brands
Business/
Brand
Exploration
& Production
Product
Brand
End Uses
Crude Oil and Natural Gas
Refining, power, fertilisers, petrochemicals and other industries
Refining
Liquefied Petroleum Gas (LPG)
Domestic and industrial fuel
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)
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 packaging of cement, food-grain, sugar,
fertiliser; leno bags for packaging of fruits & vegetables, TQ &
BOPP films and containers for packaging of textiles, processed
food, FMCG, office stationery; components for automobile and
consumer durables, moulded furniture, luggage, housewares,
geo-textiles & fibres for non-woven textiles.
Woven sacks, raschel bags for packaging of fruits & vegetables,
containers for packaging of edible oil, processed food, FMCG,
lubricants, detergents, chemicals, pesticides; industrial crates
& containers, carrier bags, housewares, ropes & twines; pipes
for water supply, irrigation, process industry & telecom; films
for packaging of milk, edible oil, salt, processed food, roto-
moulded containers for storage of water, chemicals storage
and general purpose tanks, protective films and pipes for
agriculture, cable sheathing, lids & caps and master batches.
Ethylene Vinyl Acetate Copolymer (EVA)
Footwear & hotmelt adhesives
Ultra High Molecular Weight Polyethylene
(UHMWPE)
Reon
Polyvinyl Chloride (PVC)
Relpipe
Poly-Olefin HDPE and PPR pipes
Cisamer
Poly Butadiene Rubber (PBR)
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.
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
10
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Business/
Brand
Chemicals
Relab
Product
Brand
End Uses
Linear Alkyl Benzene (LAB)
Detergents
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
Raw material for PTA
Raw material for polyester
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
Can dye at boiling water temperature with
high colour fastness
Ladies outerwear, feather yarn for knitted cardigan, decorative
fabric & home furnishing
Recron®
Recron®
Stretch
Recron®
Cotluk
Recron®
Dyefast
Recron®
Superblack
Dope dyed black
with high consistency in shade
Apparel, automotive, non-woven & interlining
Recron®
Superdye
Recron®
Kooltex
Recron®
Fibrefill
Recron®
3S
Recron®
Certified
Recron®
Low Pill
Recron®
FeelFresh
Recron®
Micrelle
Recron®
Recrobulk
Recron®
Green
Bright, brilliant colours
and soft feel, low pill
Woven & knitted apparel, furnishing & home textile
Moisture management yarns
Active sports and high performance wear
Hollow fibres with high bounce and
resilience
Pillows, cushions, quilts, mattresses, furniture, toys & non-
wovens
Secondary Reinforcement Products
Quality Certified Sleep Products
Polyester Tow & Staple Fibre with unique
low pill properties
Anti microbial fibres & yarns
Construction industry (concrete/mortar), cement (sheet & pipe),
paper industry (conventional & speciality), battery industry,
wetlaid industry (wall papers, filtration, wipes & hygiene
products) & Asbestos replacement
Pillows, cushions, blankets & quilts
High-end worsted suitings, upholstery fabrics & socks
Active sportswear, Intimate apparel, socks, home furnishings
& garments used in healthcare industry
Bi-component filament yarns
Super soft and ultra comfortable fabrics
Hi-bulk fibres for soft-feel & warmth
Sweaters, pullovers, cardigans, shawls & jackets
Eco-friendly fibres made from 100%
post-consumer polyester waste
Apparel & home textiles
Reliance Industries Limited
11
Brand
End Uses
Product
Business/
Brand
Petrochemicals - Polyester & Fibre Intermediates
Recron®
Spunlace
Speciality polyester fibres
Specialty Polyester Filament
Yarns for Silken Shimmer and
Swathes of Colour in Fabrics
Flame retardant Fibres & Yarns
Re c o s i l k
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
Polyethylene Terephthalate (PET)
High quality non-woven products for the healthcare & hygiene
industry
Ideal substitute for silk in dress materials, velvet, sarees, etc.
and viscose filament yarn in embroidery thread.
Institutional textiles for hospitality, entertainment, transport,
safety etc. Also used in home textiles, fill & comfort products.
Tarpaulin, Tents & Awnings
Crepe, Rolled Bandages & Surgical Dressings
Safeband
Packaging for bottled water, beverages, confectionary,
pharmaceutical, agro-chemical and food products
Recron®
RecoSilk
Recron®
FR
Recron®
Duratarp
Recron®
Safeband
Relpet®
Textiles
Vimal
Suitings, Shirtings, Readymade Garments
Fabrics, suits, jackets, shirts & trousers
Vimal Gifting Ready-to-stitch, take away fabric in gift packs
V2
Retail
Ready-to-stitch,
Take away fabric
Reliance Retail
Food & Grocery
Specialty Store
Mini Hypermarket
Hypermarket
Wholesale Store
Electronics
Specialty Store
Exclusive Apple Store
Jewellery Specialty Store
Apparel Specialty
Footwear Specialty Store
Books, Music, Toys &
Gifts Specialty Store
Furniture, Furnishing &
Homeware Specialty Store
Automotive Services &
Products Specialty Store
Fabrics
Fabrics
Organised retail
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
Range of Apple products like IPod and IMac
Fine jewellery
Men, ladies, children clothing and accessories
Men, ladies, children footwear, sports, handbags and
accessories
Books, music, stationery, toys and gifting merchandise
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
12
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Business/
Brand
Product
Brand
End Uses
Italian Luxury Men’s Clothing
Italian luxury sportswear brand
Luxury Footwear
British Shirt Authority
American icon that has redefined & shaped
classic American style for nearly two centuries
Apparel, Accessories and Footwear for Men
Apparel, Accessories and Footwear for Men
Accessories and Footwear for Women
Apparel and Accessories for Men
Apparel and Accessories for Men
Iconic Italian Lifestyle Brand
Apparel, Accessories and Footwear
Urban fashion & Lifestyle brand that exudes
metropolitan lifestyle of New York city
Fashion brand that fuses design influences from
Japanese graphics and vintage Americana, with
the values of British Tailoring
Apparel, Accessories and Footwear
Apparel, Accessories and Footwear
Distinctive Fashion footwear & Accessories
Accessories and Footwear for Women
Fashion forward Footwear & Accessories Brand
Accessories and Footwear for Women
The finest toy shop in the world
Toys
Optical Specialty Store
International Apparel, Accessories & Home
Products Store
Office Needs, Office Supplies and Stationery
Store
Iconic Japanese Sports Perfomance brand
Spectacles, Sunglasses, Contact Lenses
Apparel for Women, Men and Children,
Lingerie, Beauty and Home Décor
Office and Personal Stationery
Men, Ladies Sports footwear, clothing &
accessories
Transportation fuels
Retail distribution of fuels
Fleet Management Services
Highway Hospitality Services
Vehicle Care Services
Convenience Shopping
Foods
Auto LPG
GAPCO
Petroleum Retail
Lubricants
Transport fleet
Highway food plaza
Vehicle care service outlets
Highway shopping
Food
Auto fuel outlet
Retail distribution of fuels
Lubricants
Product Flow Chart
Reliance Industries Limited
13
14
Fulfilling India’s Aspirations. With Innovation and Enterprise.
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
Group Company
Secretary and Chief
Compliance Officer
K. Sethuraman
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
Shareholders’/Investors’
Grievance Committee
Mansingh L. Bhakta
(Chairman)1
Yogendra P. Trivedi
(Chairman)2
Nikhil R. Meswani
Hital R. Meswani
Prof. Ashok Misra2
Remuneration
Committee
Mansingh L. Bhakta
(Chairman)1
Yogendra P. Trivedi
(Chairman)2
Dr. Dharam Vir Kapur
Dr. Raghunath A.
Mashelkar2
1. upto 20.07.2012
2. w.e.f. 20.07.2012
Finance Committee
Mukesh D. Ambani
(Chairman)
Nikhil R. Meswani
Hital R. Meswani
Health, Safety &
Environment Committee
Hital R. Meswani (Chairman)
Dr. Dharam Vir Kapur
P.M.S. Prasad
Pawan Kumar Kapil
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
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
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 -
402 125, Roha Taluka,
Dist. Raigad,
Maharashtra, India
Patalganga
B-1 to B-5 & A3, MIDC
Industrial Area, P.O. Rasayani,
Patalganga - 410 220
Dist. Raigad
Maharashtra, India
Vadodara
P. O. Petrochemicals
Vadodara - 391 346,
Gujarat, India
Registrars & Transfer Agents
Karvy Computershare Private Limited,
Plot No. 17-24, Vittal Rao Nagar, Madhapur,
Hyderabad - 500 081, India. Tel: +91 40 4465 5070 - 5099
Toll Free No. 1800 425 8998; Fax: +91 40 2311 4087.
e-mail: rilinvestor@karvy.com Website : www.karvy.com
Registered Office
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
39th Annual General Meeting on Thursday, 6th June, 2013 at 11.00 a.m.
at Birla Matushri Sabhagar, 19, New Marine Lines, Mumbai 400 020.
Reliance Industries Limited
15
Financial Highlights
2012-13
11-12
10-11
09-10
08-09
07-08
06-07
05-06
04-05
03-04
` in crore
$ Mn
Revenue From Operations
68,365
3,71,119
3,39,792
2,58,651
2,00,400
1,46,328
1,39,269
1,18,354
89,124
73,164
56,247
Total Income
69,838
3,79,117
3,45,984
2,61,703
2,02,860
1,48,388
1,44,898
1,18,832
89,807
74,614
57,385
Earnings Before Depreciation, Finance
Cost and Tax Expenses (EBDIT)
7,145
38,785
39,811
41,178
33,041
25,374
28,935
20,525
14,982
14,261
10,983
Depreciation and Amortisation
1,744
9,465
11,394
13,608
10,497
5,195
4,847
4,815
3,401
3,724
3,247
Exceptional Items
Profit For the Year
Equity Dividend %*
Dividend Payout
-
-
-
-
-
(370)
4,733
-
-
-
-
3,869
21,003
20,040
20,286
16,236
15,309
19,458
11,943
9,069
7,572
5,160
90
85
80
70
130
130
110
100
75
52.5
487
2,643
2,531
2,385
2,084
1,897
1,631
1,440
1,393
1,045
733
Equity Share Capital
595
3,229
3,271
3,273
3,270
1,574
1,454
1,393
1,393
1,393
1,396
Equity Share Suspense Account
Equity Share Warrants
-
-
-
-
-
-
-
-
-
-
69
-
-
1,682
60
-
-
-
-
-
-
-
Reserves and Surplus
32,563
1,76,766
1,62,825
1,48,267
1,33,901
1,24,730
78,313
62,514
48,411
39,010
33,057
Net Worth
33,157
1,79,995
1,66,096
1,51,540
1,37,171
1,26,373
81,449
63,967
49,804
40,403
34,453
Gross Fixed Assets
42,787
2,32,270
2,05,493
2,21,252
2,28,004
2,18,673
1,27,235
1,07,061
91,928
59,955
56,860
Net Fixed Assets
Total Assets
23,738
1,28,864
1,21,477
1,55,526
1,65,399
1,69,387
84,889
71,189
62,675
35,082
35,146
58,674
3,18,511
2,95,140
2,84,719
2,51,006
2,45,706
1,49,792
1,17,353
93,095
80,586
71,157
Market Capitalisation
46,017
2,49,802
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
Number of Employees
23,519
23,166
22,661
23,365
24,679
25,487
24,696
12,540
12,113
11,358
Contribution to National Exchequer
5,333
28,950
28,197
28,719
17,972
11,574
13,696
15,344
15,950
13,972
12,903
Key Indicators
Earnings Per Share - (`)
[excluding Exceptional item]*
$
2012-13
11-12
10-11
09-10
08-09
07-08
06-07
05-06
04-05
03-04
1.2
64.8
61.2
62.0
49.7
49.7
105.3
82.2
65.1
54.2
36.8
Turnover Per Share - (`)
21.2
1,149.5
1,037.8
790.5
612.9
464.9
958.1
814.2
639.6
525.0
402.8
Book Value Per Share - (`)
10.3
557.5
507.3
463.2
419.5
401.5
560.3
440.0
357.4
289.9
246.7
Debt : Equity Ratio
0.40:1
0.41:1
0.44:1
0.46:1
0.63:1
0.45:1
0.44:1
0.44:1
0.46:1
0.56:1
EBDIT / Gross Turnover %
Net Profit Margin %
RONW % **
ROCE % **
10.5
5.7
12.8
11.2
10.5
11.7
15.9
16.5
5.7
12.8
11.2
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
9.2
17.0
14.0
In this Annual Report $ denotes US$
1US$ = ` 54.285 (Exchange rate as on 31.03.2013)
* Adjusted for issue of bonus shares in 2009-10 in the ratio of 1:1
** Adjusted for CWIP and revaluation
16
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notice
Notice is hereby given that the thirty-ninth Annual General
Meeting of the members of Reliance Industries Limited
will be held on Thursday, June 06, 2013 at 11.00 a.m.
at Birla Matushri Sabhagar, 19, New Marine Lines,
Mumbai 400 020, to transact the following businesses:
Ordinary Business
1.
2.
3.
4.
To consider and adopt the audited Balance Sheet as
at March 31, 2013, the Statement of Profit and Loss
for the year ended on that date and the reports of the
Board of Directors and Auditors thereon.
To declare a dividend on equity shares.
To appoint Directors in place of those retiring by
rotation.
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 approve the payment of commission to Non-
Executive Directors and in this regard to consider and
if thought fit, to pass, with or without modification(s),
the following resolution as a Special Resolution:
"RESOLVED THAT pursuant to the provisions of
Sections 309, 310 and other applicable provisions, if
any, of the Companies Act, 1956, the Non-Executive
Directors of the Company (i.e. Directors other than
the Managing Director and Whole-time Directors) be
paid, by way of an annual payment, in addition to the
sitting fees for attending the meetings of the Board
of Directors or Committees thereof, a commission
as the Board of Directors may from time to time
determine, not exceeding ` 5 (five) crore per annum
in the aggregate, for a period of 5 (five) years from
the financial year ending March 31, 2013.”
By Order of the Board of Directors
K. Sethuraman
Group Company Secretary and
Chief Compliance Officer
April 16, 2013
Registered Office:
3rd Floor, Maker Chambers IV,
222 Nariman Point,
Mumbai 400 021, India
e-mail: investor_relations@ril.com
Notes:
1. A member entitled to attend and vote at the annual
general meeting (the “Meeting”) is entitled to
appoint a proxy to attend and vote on a poll instead
of himself and the proxy need not be a member
of the Company. The instrument appointing
the proxy should, however, be deposited at the
registered office of the Company not less than
forty-eight hours before the commencement of
the Meeting.
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.
3.
In terms of Article 155 of the Articles of Association
of the Company, read with Section 256 of the
Companies Act, 1956, Shri Mahesh P. Modi,
Dr. Dharam Vir Kapur, Dr. Raghunath A. Mashelkar
and Shri Pawan Kumar Kapil, Directors, retire by
rotation at the ensuing Meeting and being eligible,
offer themselves for re-appointment. The Board of
Directors of the Company commend 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
Reliance Industries Limited
17
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.
7.
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.
9.
(a) The Company has notified closure of Register
of Members and Share Transfer Books from
Tuesday May 14, 2013 to Saturday May 18,
2013 (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 07, 2013 and June 13, 2013
to those members whose names shall appear
on the Company’s Register of Members on
May 13, 2013; 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, M/s. Karvy
Computershare Private Limited (“Karvy”) 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
their address or bank mandates immediately to the
Company / 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 2004-05, to the Investor
Education and Protection Fund (the IEPF)
established by the Central Government. Pursuant to
the provisions of Investor Education and Protection
Fund (Uploading of information regarding unpaid
and unclaimed amounts lying with companies)
Rules, 2012, the Company has uploaded the details
of unpaid and unclaimed amounts lying with the
Company as on June 07, 2012 (date of last Annual
General Meeting) on the website of the Company
(www.ril.com), as also on the Ministry of Corporate
Affairs website.
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 their 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 / 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
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:
18
Fulfilling India’s Aspirations. With Innovation and Enterprise.
(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.
19. Members who have not registered their e-mail
addresses so far are requested to register their
e-mail address so that they can receive the Annual
Report and other communication from the Company
electronically.
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 at Item
No. 5 of the accompanying Notice:
Item No. 5
The Members of the Company at the 33rd Annual General
Meeting held on October 12, 2007, approved payment of
commission of ` 21,00,000/- (Rupees twenty one lakh)
per annum to each Non-Executive Director of the Company,
i.e. Directors other than the Managing Director and
Whole-time Directors of the Company, payable annually,
for a period of 5 (five) financial years commencing from
the financial year ending on March 31, 2008.
The role, responsibilities and participation of the Non-
Executive Directors in the affairs of the Company have
increased over a period of time. The compensation payable
to the Non-Executive Directors should therefore be
commensurate with their increased role and responsibilities.
Keeping in view the above, the Board of Directors,
subject to the approval of Members of the Company,
have approved by way of an annual payment to the
Non-Executive Directors, a commission, as the Board of
Directors may from time to time determine not exceeding
` 5 (five) crore per annum in the aggregate, for a period
of 5 (five) years from the financial year ending March 31,
2013. The said commission shall not exceed the permissible
limit under the provisions of the Companies Act, 1956
or any statutory modification(s) or re-enactment thereof.
The aforesaid commission shall be paid to all such
Directors in addition to the sitting fees paid to them for
attending meetings of the Board and Committees thereof.
All the Non-Executive Directors of the Company are
deemed to be concerned or interested in this Resolution.
None of the other Directors are, in any way, concerned or
interested in this Resolution.
Your Directors commend the Special Resolution set out at
Item No. 5 of the Notice for your approval.
By Order of the Board of Directors
K. Sethuraman
Group Company Secretary and
Chief Compliance Officer
April 16, 2013
Registered Office:
3rd Floor, Maker Chambers IV,
222 Nariman Point,
Mumbai 400 021, India
e-mail: investor_relations@ril.com
Management’s Discussion And Analysis
Reliance Industries Limited
19
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
The global economy in FY 2012-13 improved slowly and
did not recover to the extent anticipated in the beginning
of the year. Several European economies experienced
recession due to high unemployment, banking fragility,
fiscal tightening and sluggish growth. The U.S. economy
improved marginally, driven mainly by housing and the
consumer sectors; however, capital investments remained
sluggish. Among the Asian economies, China, going
through a political transition, experienced considerably
slower growth. Deceleration in industrial output and
exports weakened India’s economic growth significantly.
The weak macro environment and slower growth caused
the margin environment to remain volatile with downward
bias.
Oil demand increased by 0.9 MMBPD in 2012. Eurozone’s
recession and emerging markets slowdown weakened
global economy, which in turn, impacted demand growth.
Increased production, particularly in North America and
Iraq, helped meet this demand, partly offset by decreasing
supply from some Middle Eastern countries, especially
Iran and Syria. The average Brent crude oil price increased
marginally in 2012 to reach $111.6 per barrel.
Reliance Industries Ltd. (RIL) demonstrated its ability to
perform in this challenging environment and enhanced its
revenues by 9.2% to ` 371,119 crore and profits by 4.8% to
` 21,003 crore. RIL achieved record exports (15% higher)
at ` 239,226 crore, as against ` 208,042 crore in FY 2011-
12. RIL’s consolidated revenue from operations for the year
ended March 31, 2013 was ` 397,062 crore, an increase
of 10.8% on a year on year (Y-o-Y) basis.
RIL’s KG-D6 facility, completing four years of operations,
produced 3.31 million barrels (MMBL) of crude oil and
condensate and 336 billion cubic feet (BCF) of natural gas.
In the downstream segments, RIL maintained operating
rates over 100% in the refining and petrochemicals
businesses. The Company processed a record 68.5 million
tonnes (MMT) of crude at its Jamnagar refinery complex.
RIL’s performance can be attributed to its strong integrated
business model, wide product portfolio and increasing
demand for its products. RIL’s facilities continued to
deliver operating excellence and this is a true testimony of
the quality of its manufacturing assets and human talent.
RIL was featured in the Fortune Global 500 list of the
world’s largest corporations for the eighth consecutive year.
It was ranked 99th based on sales and 130th based on profits.
Noteworthy Events
RIL’s Share Buyback Programme
The Company had announced India’s largest share
buy-back programme in January 2012. The Board of
Directors of the Company had approved buyback of up to
120,000,000 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 exchanges.
During the buy-back programme which ended in January
2013, the Company bought and extinguished 46,246,280
equity shares of ` 10 each. It was 38.54% of the total
buy-back offer quantity of 120,000,000 equity shares. The
total amount invested in the buy-back was ` 3,366 crore
and the average price at which the equity shares were
bought back was ` 726.68 per share. The share buy-back
reinforced investors’ confidence and provided significant
support to the stock.
This buy-back programme was the largest ever
implemented-to-date in the history of Indian capital
markets and was Earnings per Share (EPS) accretive for
the Company. It is expected to supplement earnings growth
from operations, for higher EPS, in the near future.
RIL-BP Partnership
In its second year of the partnership, RIL and BP combined
their expertise in deepwater exploration and development
and operations in India. Both the teams worked closely to
understand the complex geology of the east-coast of India
including KG-D6 block. The efforts are on, to map out an
exploration and development campaign that will efficiently
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Fulfilling India’s Aspirations. With Innovation and Enterprise.
target high quality prospects in deeper zones and optimise
existing as well as future development plans.
RIL continued to play a pivotal role in the growth of India’s
economy. It accounted for:
The Company is creating a projects pipeline for the
next wave of oil and gas development, which includes
satellite discoveries in KG-D6 block. Under the block’s
enhancement plan, the Company aims to invest in a series
of projects to develop around 4 trillion cubic feet (TCF) of
discovered natural gas resources over the next 3-5 years.
These project implementations in the KG-D6 enhancement
plan are subject to the timely regulatory and Government
approvals. At current international Liquefied Natural Gas
(LNG) prices, it would cost over $ 50 billion to import this
gas volume into India. Gas from these projects will deliver
energy to millions of Indians and would significantly help
India reduce import dependence.
Financial Performance
Revenue from
operations
PBDIT
PBT
Cash profit
Net profit
` 371,119 crore
$ 68.4 billion
` 38,785 crore
$ 7.1 billion
` 26,284 crore
$ 4.8 billion
` 30,505 crore
$ 5.6 billion
` 21,003 crore
$ 3.9 billion
+ 9.2%
(-) 2.6%
+ 2.1%
(-) 4.6%
+ 4.8%
The net profit for FY 2012-13 was at ` 21,003 crore ($ 3.9
billion) with a compounded annual growth rate (CAGR)
of 18% over the past 10 years. RIL has announced a
dividend of 90% amounting to ` 3,092 crore ($ 570
million), including dividend distribution tax. This is the
highest pay-out ever by RIL and in line with its prudent
distribution commitment.
Highlights of RIL’s consolidated performance for the year
are as follows:
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Revenue from operations increased by 10.8% to
` 397,062 crore ($ 73.1 billion)
PBDIT increased by 0.5% to ` 40,912 crore
($ 7.5 billion)
Profit Before Tax increased by 3.2% to ` 26,150 crore
($ 4.8 billion)
Cash Profit decreased by 1.5% to ` 32,115 crore
($ 5.9 billion)
Net Profit increased by 5.9% to ` 20,879 crore
($ 3.8 billion)
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14% of country’s exports (RIL exports at
$ 44.1 billion)
4.8% of indirect tax revenues
4% of total market capitalisation
l Weightage of 8.6% in the Bombay Stock Exchange
(BSE) Sensex
l Weightage of 7.0% in the National Stock Exchange
(NSE) Nifty
Financial Review
RIL delivered superior financial performance with
improvements across key parameters. RIL achieved a
Revenue from operations for the year ended 31st March
2013 of ` 371,119 crore ($ 68.4 billion), an increase of
9.2% on a Y-o-Y basis. The Refining business revenues
increased by 11.6%, Petrochemicals by 9.3% while Oil
& Gas revenues decreased by 35.2% on account of lower
production. Higher prices accounted for 11.0% growth in
revenue which was partly offset by the decrease in volumes
by 1.8%. Exports were higher by 15.0% at ` 239,226 crore
($ 44.1 billion) as against ` 208,042 crore in FY 2011-12.
Higher crude oil prices increased raw materials
consumption by 11.4% to ` 306,127 crore ($ 56.4 billion)
on a Y-o-Y basis.
Employee costs were at ` 3,354 crore ($ 618 million) for
the year as against ` 2,862 crore in the previous year.
Other expenditure increased by 26.6% from ` 18,040
crore to ` 22,844 crore ($ 4.2 billion) primarily due to
higher expenses on account of power & fuel, selling &
distribution, sales tax, professional fees and repairs.
Operating profit before other income and depreciation
decreased by 8.4% from ` 33,619 crore to ` 30,787
crore ($ 5.7 billion) due to reduction in oil & gas and
petrochemicals earnings, partially offset by higher
operating profit from refining. Net operating margin was
lower at 8.5% as compared to 10.2% on a Y-o-Y basis due
to lower production of oil & gas and weaker petrochemicals
business margins.
Other income was higher at ` 7,998 crore ($ 1.5 billion) as
against ` 6,192 crore primarily due to an increase in cash
flows from operations that were deployed in bank deposits,
mutual funds and Government securities / bonds.
Reliance Industries Limited
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Depreciation (including depletion and amortisation) was
lower by 16.9% at ` 9,465 crore ($ 1.7 billion) against
` 11,394 crore in FY 2011-12. This was primarily due to
lower production of oil and gas.
Interest cost was higher at ` 3,036 crore ($ 559 million)
as against ` 2,667 crore in FY 2011-12 principally due to
higher foreign currency borrowings and depreciation of
the Indian rupee. This resulted in gross interest cost being
higher at ` 3,421 crore ($ 630 million) as against ` 3,097
crore in FY 2011-12. Interest capitalised was lower at
` 385 crore ($ 71 million) as against ` 430 crore.
Profit after tax for the year was at ` 21,003 crore
($ 3.9 billion) as against ` 20,040 crore in the previous year.
Basic EPS for the year was ` 64.8 ($ 1.2) as compared to
` 61.2 in the previous year.
RIL’s consolidated revenue from operations for FY
2012-13 was ` 397,062 crore ($ 73.1 billion), an increase
of 10.8% on a Y-o-Y basis. Profit after tax was at
` 20,879 crore ($ 3.8 billion), an increase of 5.9% as against
` 19,724 crore in the previous year. Basic EPS for the year
was at ` 70.7 ($ 1.3), as against ` 66.2 in the previous year.
The Company is debt-free on a net basis as on March 31,
2013. Return on capital employed was at 11.2% and return
on equity was at 12.8%.
RIL bought and extinguished 42,582,849 equity shares
for a sum of ` 3,044 crore during the year. The Company
cumulatively bought and extinguished 46,246,280 equity
shares at a total cost of ` 3,366 crore under the buy- back
scheme.
The net addition to fixed assets for FY 2012-13 was
` 19,041 crore ($ 3.5 billion) including an addition of
` 1,942 crore on amalgamation of Reliance Jamnagar
Infrastructure Limited. Capital expenditure was incurred
principally on account of on-going expansion projects at
Jamnagar, Dahej, Silvassa and Hazira.
During the year, a total of ` 28,950 crore ($ 5.3 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 ` 239,226
crore ($ 44.1 billion) as against ` 208,042 crore in the
previous year.
RIL exported to 116 countries around the world. The
exports represent 64% of the RIL’s turnover. Petroleum
products constituted 89% of exports value, while the
balance was contributed by petrochemicals.
Resources and Liquidity
In FY 2012-13, RIL tied up facilities of around $ 6.8
billion through five landmark transactions to part-finance
the proposed expansion of its petrochemical plants, setting
up new gasification plant and refinery off-gas cracker over
the next 3-4 years.
During the year, RIL signed $ 4.5 billion equivalent
facilities, backed by Export Credit Agencies, which
included:
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$ 2 billion equivalent facility from Euler Hermes,
the German Export Credit Agency
$ 2 billion facility from the Export- Import Bank of
the United States of America
$ 500 million equivalent facility from Korea Trade
Insurance Corporation, the South Korean Export
Credit Agency
These facilities will be drawn over the next 3 years as the
projects progress. Besides, these will have a door-to-door
tenor of over 13 years. This is in line with RIL’s objective
of extending the average maturity of its long-term debt at
competitive cost and diversifying funding sources. The
RIL deals were the first in history to be accorded ‘Better
than Sovereign’ rating by each of the above export credit
agencies. For the SACE (Italian Export Credit Agency)
and Euler Hermes deals, RIL has received the “Deal of
the Year” awards for 2012 from Trade Finance, a leading
global publication in the international trade finance market.
RIL also raised $ 1.5 billion from syndicated loan facility.
The deal represented the largest bank group for an
unsecured syndicated loan with tenor in excess of five years
in Asia in 2012 with a strong participation from a total of
28 international and Indian banks amid volatile market
conditions. RIL received the “Best Loan Syndication in
Asia” and “Best Corporate Issuer in Asia” awards for 2012
from The Asset, a leading Asian financial publication for
this deal.
In January 2013, RIL issued $ 800 million (5.875%) Senior
Perpetual Notes. The Notes have no fixed maturity date
and the Company will have an option, from time to time, to
redeem the Notes, in whole or in part, on any semi-annual
interest payment date on or after February 5, 2018 at 100%
of the principal amount plus accrued interest. This was the
first US Dollar bond issuance by RIL in the public markets
since 1997. This landmark deal represents the first ever
US Dollar senior, fixed for life, non-deferrable perpetual
issuance out of Asia and the lowest coupon achieved for a
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Fulfilling India’s Aspirations. With Innovation and Enterprise.
US Dollar senior true perpetual issuance globally to date.
Strategy for STAR
RIL continuously undertakes liability management to
reduce debt cost and diversify its liability mix.
As on 31st March 2013, RIL’s total debt was at ` 72,427
crore ($ 13.3 billion). Over 91% of total debt, including
short-term debt was denominated in foreign currencies.
The proportion of long term debt to total debt is over 84%.
RIL’s gross debt to equity ratio including long-term and
short-term debt as on 31st March 2013 was 0.40, while the
net debt to equity ratio was NIL.
RIL’s cash and cash equivalents as at 31st March 2013
amounted to ` 82,975 crore ($ 15.3 billion). RIL continued
to efficiently manage its short term resources by placing
them in very liquid, highly rated securities such as bank
fixed deposits, Government securities and bonds and
money market mutual funds.
RIL’s superior credit profile is reflected in its relationships
with over 100 banks and financial institutions having
commitments to the Company.
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 (local currency issuer
rating). 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.
Smart Transformation at Reliance (STAR)
In order to make RIL “FUTURE READY”, the Company
has embarked on one of the largest business transformation
project - STAR.
The rationale behind STAR is to enable the institutionalisation
of RIL’s DNA. Powerful project management skills have
been one of RIL’s biggest strengths. Supplementing these
through robust business process framework and best-in-
class IT solutions will allow the Company to retain its
competitive advantage. It would also help the Company
bring end-to-end digital chain to free up resources. This
will help enhance organisational entrepreneurship and
create a world-class human resource framework to retain
talent and fulfill mission of being an “Employer of Choice”.
l Create a world-class workforce with a well understood
employee value proposition.
l Build a vibrant learning environment through
partnerships with best institutions to create a learning
organisation, nurture talent and leadership pool.
l Use best-in-class processes, coupled with well-honed
best practices
l Inculcate continuous process improvement culture
through Business Process Management (BPM)
l Build streamlined and scalable business architecture
to ensure transparency and provide orchestration of
“Ready to Use” Process-System-Data blocks for new
ventures
l Leverage “state-of-the-art” technology to automate and
digitise hard-wired built-in controls, transaction level
transparency and real-time visibility into key business
and operational parameters
l Create scalability through world-class IT backbone in
the Cloud, enabling growth and merger integrations
with relative ease and minimal incremental costs
l Make data and solutions available through virtualisation
and mobility solutions to ensure “Anytime Anywhere”
computing
l Use Big Data Analytics to support informed decision-
making
l Build a governance framework to empower people and
enable success measurement in unobtrusive manner
l Create a standardised and life-cycle approach to energy,
process and asset management with inline monitoring
and adjusting for best-in-class performance
l Ensure quality-driven project execution through
measured stage-gate criteria and minimal risk of
business disruption
l Create an integrated project management approach with
operations, technology, engineering and maintenance
combined in project teams through the project life-cycle
l Solid Change Management program that empowers all
employees to adopt and absorb new way of working
and enhance entrepreneurial culture.
l Provide “Online” role based training for end users to
ensure power of new solutions is fully realised.
Reliance Industries Limited
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Key Milestones and Progress Achieved
STAR covers three businesses, Exploration & Production,
Refining & Marketing and Petrochemicals and support
functions such as manufacturing, projects, procurement
& contracting, logistics, human resources, finance, shared
services, IT, R&D and security. RIL completed basic
and detailed design, including business blueprinting for
265 end-to-end business processes. The Company’s new
business architecture framework has been developed
and the new organisation structure is also ready to be
implemented.
Further, a repository of around 40,000 process models have
been developed, interlinked with solution landscape to
ensure integrated process change management. The system
landscape with best-in-class solutions has been finalised
and is in the final stages of testing. The solutions are likely
to be rolled out in phases starting from April 2013. The
key state-of-the-art solutions benefitting RIL in the areas of
advanced planning, plant data reconciliation and validation,
operational performance management and analysis and
quality management have also been implemented. A team
of around 1400, inclusive of RIL employees and external
consultants have been working on this initiative to make
it successful.
Business Performance
OIL & GAS EXPLORATION AND PRODUCTION
BUSINESS
Business Environment - Global
In 2012, crude oil prices averaged $ 111.6/bbl, while Asian
LNG prices averaged $ 15.1/MMBTU. Oil prices remained
high as 2012 demand increased by 0.9 MMBPD while
non OPEC supply increased only by 0.60 MMBPD which
increased the call on OPEC in 2012.
In the year 2013, the incremental oil demand may only be
0.8 MMBPD as per the IEA Oil Market Report dated March
2013 taking the cumulative demand to 90.6 MMBPD for
2013. However, incremental non-OPEC supply would
be 1.1 MMBPD due to rise in production from North
American shale oil, Iraq and Canadian oil sands, offsetting
declines elsewhere in the non-OPEC regions.
Upstream oil and gas investment for 2012 was estimated at
about $ 620 billion - higher by 8% than in 2011 and 20%
than in 2008 (Source: EIA’s World Energy Outlook 2012).
The increased spending reflects a combination of improved
returns, spurred by higher oil prices and rising costs of
current and planned projects. Despite signs of declining
cost inflation with easing global commodity prices, deep
and ultra-deep-water rig rates stayed high, even exceeding
$ 650,000/day and the subsea market remained tight.
Global LNG prices remained buoyant due to increasing
demand in LNG mainly in Japan, China, India and South
America contributing to the market tightness. Supply
was constrained by maintenance and unscheduled
interruptions on existing liquefaction plants, as well as
lower-than-expected capacity additions, with only one
new train Pluto in Australia coming into service.
US gas prices rallied to over $ 4/MMBTU in recent months.
The strength in the current rally may be sustained, as the US
considers policy moves allowing LNG exports, coal-fired
power plants shutdown due to proposed environmental
regulations and the planned conversion of the truck and
rail engine fleets into CNG.
Business Environment - India
Indian gas demand is expected to be more than treble
to touch 600 MMSCMD by 2021-22. The domestic gas
availability by then may be around 250 MMSCMD and
the balance would be met through LNG imports.
The regulatory environment has shown a positive trend in
recent months. The government has allowed for exploration
in production areas. Directionally, the Indian gas market
is expected to move towards market based pricing.
The recommendations of the Government appointed
Rangarajan committee were a move in the right direction
with efforts now directed towards achieving a transition
to arms-length market pricing.
As per global experts, significant gas resources in India
exist in deep-water, ultra deep-water frontier areas.
However, the average accumulation sizes are relatively
small which adds to the cost challenges of developing
these fields. These fields require market linked gas prices
to strengthen India’s energy security and make these fields
commercially viable.
Currently LNG constitutes more than 30% of India’s gas
consumption implying a high demand for natural gas even
at prices in excess of $ 12/MMBTU. Currently, the regas
terminals on India’s west coast are running at full capacity
and the country’s LNG import bill in FY 2012-13 has
touched $ 7 billion.
In future, global LNG Supply is likely to improve, with
a new cycle of liquefaction capacity additions starting
this year. This expansion should alleviate pressure on
spot prices over the medium term. However, the market
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Fulfilling India’s Aspirations. With Innovation and Enterprise.
is expected to tighten again after 2017, as Asian demand
continues to grow. Besides, most of the upcoming LNG
projects are getting delayed, coupled with delays in
restart of Japan’s nuclear power plants. Even the shale
revolution outside the US, in Asia and Latin America faces
considerable hurdles on issues of water, land availability,
mineral rights, public opinion and geological factors.
RIL: Portfolio Overview
Through continuous assessment of its portfolio in terms of
prospectivity and risk profile, RIL rationalises its portfolio
focusing on monetising and maximising value. RIL’s
upstream business has been restructured into different
sectors i.e., Conventional, CBM and Shale Gas. In this way
the risks and dynamics of each sector are clearly understood
and distinctly managed to maximise value and growth.
Conventional Business: Currently the portfolio includes
13 Production Sharing Contracts (PSC) blocks in India
of which 9 are in the active exploration/appraisal phase.
There are 4 blocks which are under development and
production including KG-D6 in Krishna Godavari offshore
basin, Panna-Mukta and Tapti in Mumbai offshore basin
and NEC-25 in the Mahanadi basin. Incrementally, there
are 4 PSC blocks in international arena which includes 2
blocks each in Yemen and Peru.
Coal Bed Methane (CBM): RIL currently holds two CBM
blocks (Sohagpur East and Sohagpur West) in India which
are in an early stage of development.
North America Shale Gas: RIL has three JVs, with Pioneer
Natural Resources, Carrizo Oil & Gas and Chevron. Apart
from this, the Company has a successful midstream joint
venture (JV) with Pioneer Natural Resources that caters
primarily to the gathering and transportation needs of
Pioneer upstream JV.
International Business Development Initiatives
RIL has signed a memorandum of understanding with
PDVSA, Venezuela for exploring joint participation
options in upstream heavy oil projects of the Orinoco
oil belt. Cooperation with PDVSA includes providing
technical assistance and RIL sharing its experience of
executing large scale projects in areas of offshore upstream,
refining and other downstream projects.
During March 2013, RIL has also been pre-qualified
by Iraq Government to participate in the bidding round
for Al-Nasiriya Integrated Project which contemplates
development of Nasiriya oil field along with construction
and operation of a 300,000 bpd refinery in Iraq.
RIL’s Current Year Performance
KG-D6 Block
The KG-D6 fields produced 336 BCF of natural gas and
3.31 MMBBL of crude oil and condensate in FY 2012-13 -
reduction of 41% in case of liquid portion and 39% in case
of natural gas on a Y-o-Y basis. The average production
during the year was at 26 MMSCMD of natural gas and
9,225 BOPD of crude oil.
The fall in production is mainly attributed to geological
complexity, natural decline in the fields and higher than
envisaged water ingress. To augment production from the
current fields (D1-D3 and MA), various Base Management
actions have been planned for maximising value from these
fields. These include work overs, side tracks, compressor,
enhancement of water handling capacity and a new well
in the MA field to be undertaken in FY 2013-14. Of the
revised field development plans submitted in 2012, the one
for MA (D26) has been approved.
The next wave of projects in KG-D6 block are envisaged
to be undertaken over the next three to five years and
entail a potential total investment in excess of $ 5 billion
to develop around 4 trillion cubic feet (TCF) of discovered
natural gas resources. At current international LNG prices,
it would cost more than $ 50 billion to import this volume
of gas into India.
The field development plan for R-Cluster, submitted
in January 2013, proposed to maximise infrastructure
utilisation of existing D1 and D3 hub. It aims to install
minimum essential, safe and suitable incremental facilities
for R-Cluster’s integration. Similarly, development of all
satellite discoveries is being planned as part of an integrated
concept.
Additionally, potential upside through resource accretion
is being targeted by undertaking exploration drilling in the
existing production area with the approval of Government
of India. Currently, MJ1 exploratory well in D1-D3 ML
area is under drilling. The well is targeting the Mesozoic
synrift clastic petroleum system, similar to the MA oil
and gas field.
Panna-Mukta and Tapti (PMT) Block
In the current year, PMT JV achieved the significant
milestone of 500 MMBOE of oil and gas production.
Panna-Mukta fields produced 8.2 MMBBL of crude oil
and 71 BCF of natural gas in FY 2012-13 – reduction of
19% in case of crude oil and maintained production in
case of natural gas on Y-o-Y basis. The decrease in oil
Reliance Industries Limited
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was due to natural decline, deferment of Panna-L wells
and lower-than-expected oil gains from well interventions.
Tapti produced 0.54 MMBBL of condensate and 43.9
BCF of natural gas in FY 2012-13 – a decline of 40% and
41% respectively, on Y-o-Y basis. The decrease was due
to a natural decline in reserves and under-performance of
a few wells.
In PMT, the current level of production from these fields is
7.9 MMSCMD of gas and 20,400 BOPD of oil/condensate.
To address declining production, the projects including
development wells, infill wells, well intervention activities,
Tapti gas compression modification and Panna well-head
gas lift facilities have been planned in the medium term.
As part of these initiatives, PMT JV has already completed
further infill wells in Mid Tapti and one in South Tapti.
Together, these are currently producing gas and oil at the
rate of 0.80 MMSCMD. PMT JV has also identified to
complete further infill wells along with six wells in Panna-L
area in FY 2013-14.
Additionally, Mukta-B development and drilling of
exploratory prospects in Greater Mid Tapti have also been
planned for future. Mukta-B development studies are being
undertaken to continuously assess and define a potential
development plan.
Other Blocks
NEC-25: The Company has submitted an Integrated
Block Development Plan (IBDP) for four discoveries
(D-32, D-40, D-9 and D-10) proposing for a phased
manner development. The IBDP includes the two
southern discoveries (J-series) for which commerciality
were declared last year. During the current year, the key
pre-development activity such as conceptual engineering
was completed in order to facilitate the finalisation of
development plan. Further, RIL has submitted a proposal
for drill stem testing (DST) in J discovery to DGH which
is planned to be taken up in FY 2013-14.
Domestic exploration blocks: Comprehensive review
of the east coast deep water basins by experts within the
JV teams has led to the high grading of opportunities
in the portfolio and de-risking through relinquishment
of 7 blocks. Apart from KG-D6, Panna-Mukta & Tapti
and NEC-25 blocks, RIL currently holds 9 blocks in
Gujarat Saurashtra, Krishna Godavari, Cauvery, Cambay
and Mahanadi basins. The exploration campaign in the
forthcoming year is likely to target Krishna Godavari and
Cauvery basin.
During the year, as part of the appraisal program for
CY-D6 block reviewed by the Management Committee,
new 3D seismic was acquired and also one appraisal well
was drilled. The result of the same is under evaluation.
International Ventures: As part of portfolio rationalisation,
Reliance Exploration and Production DMCC (REP-
DMCC), a wholly owned subsidiary of RIL, has concluded
divestment of its Working Interest (25%) in the PSC for
Yemen Block-9 with Medco Yemen Malik Ltd., a wholly
owned subsidiary of PT Medco Energi Internasional Tbk
of Indonesia. It has also completed the transaction for
divestment of its 80% working interest and operatorship
in the PSCs for the Rovi and Sarta blocks in the Kurdistan
Region to subsidiaries of Chevron Corporation.
During the year, REP-DMCC has also relinquished 2
blocks in Columbia – Borojo North & Borojo South and
W06-5 block in Australia. Thus, the current portfolio of
international blocks consists of 2 blocks operated by REP-
DMCC in Yemen and 2 blocks in Peru as a non-operator.
CBM
Development activities are progressing in RIL’s 2 CBM
blocks (Sohagpur East and West) with first gas being
targeted in FY 2014-15. The development phase for these
blocks has been extended till December 2014 for Sohagpur
East and October 2014 for Sohagpur West.
RIL is awaiting approval for its gas pricing formulae,
submitted to MoPNG in September 2011.
During FY 2012-13, Petroleum and Natural Gas Regulatory
Board had invited bids for development of Shahdol Phulpur
Natural Gas Pipeline. The proposed pipeline will connect
the RIL’s Sohagpur CBM blocks to the HVJ line at Phulpur
and will enable RIL to market the CBM gas on the national
gas grid. RIL through its subsidiary Reliance Gas Pipelines
Limited has submitted its bid for the construction of the
Shahdol Phulpur Natural Gas Pipeline.
Update on Arbitration
KG-D6: The Government of India, by its letter in May
2012 has communicated that it proposes to disallow certain
costs which the PSC relating to Block KG-DWN-98/3
entitles RIL to recover. RIL continues to maintain that a
Contractor is entitled to recover all of its costs under the
terms of the PSC and there are no provisions that entitle
the Government to disallow the recovery of any Contract
Cost as defined in the PSC. The company has already
initiated arbitration on the above issue. Both RIL and the
26
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Government have appointed respective arbitrators and
they are yet to appoint the third and presiding arbitrator.
PMT: Certain disputes that arose out of two production
sharing contracts relating to the Panna-Mukta and Tapti
offshore oil and gas fields have been referred to arbitration.
The majority of disputes referred to arbitration revolve
around primarily on the correct interpretation of the
PSCs. The Government has also asserted a number of
counterclaims in respect of both PSCs. In its defence,
the Government had raised a number of jurisdictional
objections to the claims relating to royalties, cess and
service tax as well as certain aspects of the claims relating
to audit.
Arbitration Tribunal has by majority held that these disputes
are arbitrable; however, Government has challenged
the Tribunal’s decision on arbitrability before the
Hon’ble Delhi High Court. The Hon’ble Delhi High
Court has on March 22, 2013 passed an order ruling
that it has jurisdiction to decide the application filed by
the Government challenging the Tribunal’s decision on
arbitrability of the aforesaid issues under Section 34 of
the Arbitration & Conciliation Act, 1996. The Company
is evaluating the judgment of the Delhi High Court and
may consider options to appeal the said judgment before
appropriate forum.
North American Shale Gas Business
The United States’ unconventional shale boom is arguably
one of the biggest breakthroughs in energy sector in
several decades. Eagle Ford and Marcellus remain among
the most competitive and attractive shale plays in North
America. Reliance is among the leading players in these
chosen plays.
Marcellus is currently believed to be the largest discovered
unconventional gas field in the United States and
potentially one of the largest world-wide with estimated
net recoverable resource of 318 TCFe. Marcellus Shale
is one of the lowest-cost North American gas fields and
large portions of the play can break-even at $ 3.50 - $ 4.00/
MMBTU. Reliance has strong presence in the Marcellus
shale play through its JVs with Chevron and Carrizo.
Eagle Ford is seen as a key source of oil production growth.
Eagle Ford is now known to have three distinct regions
– an oil window towards the north, a dry gas window to
the south and a wet gas/condensate window in the centre
(considered to be sweet spot). Reliance-Pioneer joint
venture is one of the most active players in the Eagle Ford
shale play with acreages in all three areas with a material
portion of acreage in the sweet spot.
Business Environment
Demand for natural gas in the US is likely to remain
sensitive to weather, inventory levels and coal-to-gas
switching by power plants. Winter heating has been muted
compared to long term winter demand (though some
improvement seen during Q1-CY2013) and there has been
lower coal-to-gas switching on account of anticipated
gas price of higher than $ 3.50/MMBTU. On the other
hand, near term supplies from unconventional sources is
expected to continue to grow for several reasons. Increased
production in oily plays like Eagle Ford is also leading to
increased production of associated gas; drilling efficiencies
in all key basins are temporarily mitigating the impact of
lower rig count; and infrastructure projects continue to push
Eagle Ford and Marcellus production higher. Reflecting
this demand-supply dynamics, natural gas prices are
expected to be stable around the current levels in 2013.
Impact of gas exports could be seen from 2015 onwards.
Dynamics of the US oil markets are somewhat different.
The US is the largest contributor of oil supply growth over
last few years. Onshore crude oil production has increased
by 23% over the last year. The strong performance has
been driven by shale oil, which has grown by at least
50% each year since 2010. Oil inventories had fallen to
their low in 1H-2012, but now are rebuilt somewhat and
thus the prices are expected to remain stable. Brent-WTI
differentials are unlikely to widen much further. Planned
expansion of pipeline and storage capacity in the Midwest
will allow sufficient storage and transport capacity to
support production growth.
Natural Gas Liquid (NGL) supply is expected to remain
in abundance due to continued associated gas production
from oily areas. In short term, there is lower processing
capacity to take all of NGL putting pressure on NGL prices.
There are announced petrochemical expansions that can
absorb this increased production of NGLs; but till such
time, prices may remain under pressure.
Shale Gas Business Performance Highlights
RIL forayed into the North American Shale Gas business,
through strategic partnership with experienced and
successful operators in the competitive shale plays of
Marcellus and Eagle Ford in 2010. RIL entered into 45%
working interest (WI) partnership with Pioneer Natural
Reliance Industries Limited
27
Resources for development of Eagle Ford acreages, in
addition to a 49.9% equity ownership in a midstream JV
that caters to the gathering and transportation needs of
Pioneer upstream JV. Additionally, during the same year,
RIL entered into a 40% WI partnership with Atlas Energy,
which has since been acquired by Chevron and a 60% WI
partnership with Carrizo Oil & Gas for development of
significant acreages in the Marcellus shale. Successful joint
ventures with Pioneer, Carrizo and Chevron have enabled
RIL to achieve the position of being among the significant
players in these chosen shale plays.
FY 2012-13 was a pivotal year for RIL’s North American
Shale Gas business. It gained significant growth momentum
and delivered superior performance despite adverse market
conditions imposed by low gas prices and higher service
costs. Reliance developed strong capabilities by building
a team of experienced professionals. It was a landmark
year strategically, as Reliance completed carry obligations
in the Carrizo and Pioneer JVs and transitioned into post-
carry mode, allowing for improved governance rights and
increased alignment on activity levels.
Impressive all-round growth was achieved. Revenues and
EBITDA from the shale gas business more than doubled
to $ 545 million and $ 422 million respectively in 2012.
Proved reserves grew by 135% from 788 BCFe in 2011
to 1.86 TCFe by 2012. Reliance share of gross production
grew by 166% Y-o-Y to 101 BCFe. Net sales volumes
thus grew by 165% to 85 BCFe in 2012. Benefiting from
continued focus on drilling of liquid-rich wells, share of
liquids in overall production stood impressive at 43% and
accounted for 76% of revenues in 2012. Strong growth,
amidst industry challenges, demonstrates development
progress and maturity levels of operations.
During 2012, the joint ventures drilled 255 wells and put
228 wells on production, taking the cumulative number
of producing wells to 385 at the year end, as compared
to 157 producing wells at the end of 2011. With learning
from performance of larger number of producing wells and
analysis of engineering interpretations, Reliance gained
significant knowledge on “sweet-spots” in its acreages that
helped optimise growth and pursue value accretive drilling.
Reliance realised superior benchmark differentials,
benefiting from expansion of client base to high-value
clients who offer premium to WTI. The Company
embarked on a successful hedging program, with necessary
risk management systems put in place and focused on
production for 2H-2012 and 2013.
The business achieved positive impact on JV partners.
RIL succeeded in ensuring Partners’ focus on costs and
several high-impact initiatives that led to significant cost
savings, though its impact was partly offset by cost creeps
and scope changes. Improvement in drilling efficiencies
and completion costs were seen over the quarters and was
more prominent in Pioneer and Carrizo. Shifting to white
sand instead of ceramic proppant in Eagle Ford, use of
pad drilling and zipper fraccing and drilling longer laterals
were among the few initiatives pursued during the year.
Reliance successfully completed Reserve Based Lending
(RBL) facility in Pioneer JV, with initial borrowing base of
$ 415 million. This asset backed financing enables Reliance
to put the Pioneer JV on a self-funded growth path in future.
Similar initiatives are being pursued at other JVs.
Pioneer Midstream JV attained significant maturity and
successfully transformed from “project implementation”
to “operating” mode. Growth capex was funded primarily
through internal cash and JV-level credit facilities. The
midstream joint venture is expected to be cash-flow
positive in the coming year.
Pioneer JV Highlights
Pioneer Upstream JV operated with 10 rigs, drilled 133
wells and put 135 wells on production during the year.
Producing well count jumped from 111 in December 2011
to 246 by December 2012, thus enabling strong growth in
production volumes. Reliance’s share of production (gross)
at 11.83 MMBOE reflected a growth of 137% over 2011
levels. Share of liquids remained high at 62% in 2012.
Proved reserves more than doubled from 527 BCFe in
2011 to 1.08 TCFe in 2012. With regular pad drilling,
closer spacing is getting established and more Proved
Undeveloped (PUD) reserves are added. It is anticipated
that Proved Developed Producing (PDP) reserve would
increase further, as active pursuit of choke management is
arresting declines and maintaining higher yields.
Reliance has now developed a good understanding of
heterogeneity of the play with sweet spots and marginal
areas, which has helped in high-grading of development
activities. Remarkable improvement in drilling efficiencies
and completion costs helped the JV to more than offset the
impact of industry service cost inflation. Increased use of
pad drilling, zipper fraccing and use of sand as proppant
as well as benefits of other ongoing initiatives should help
reduce unit F&D costs in the future.
Carrizo JV Highlights
Despite a slow start, Carrizo JV attainted significant growth
momentum in 2012. JV drilled 37 wells and put 30 on
28
Fulfilling India’s Aspirations. With Innovation and Enterprise.
production during the year. Producing a well count of 38
reflects a growth of 375% Y-o-Y. Net proved reserves more
than tripled to 234 BCFe in 2012. Exit rate of production at
106 MMCFD in December 2012, compares impressively
with 18 MMCFD achieved in December 2011.
JV is pursuing paced development in view of the
challenging pricing environment, but remains focused on
expedited development of North Eastern Pennsylvania
(NEPA) acreages. NEPA acreages are in the sweet spot of
the Marcellus play and the performance of NEPA wells has
been encouraging, with a much lesser decline thus offer
superior economics. JV made significant progress in its
appraisal efforts for the C-counties (85% of JV acreages).
Results of the appraisal activity are being studied. In the
interim, JV would pursue cost-effective lease renewal
strategy towards retaining optionality on the acreages.
Chevron JV Highlights
Chevron JV gained development momentum during
the second half, though suffered initially on account
of continued delay in the availability of midstream
infrastructure during the first half of the year. Midstream
availability improved considerably during second half of
the year.
JV drilled 85 wells and put 63 on production during the
year. Cumulatively the number of producing wells was
impressive at 101 in December 2012, reflecting a growth
of 166% Y-o-Y. Exit rate of production at 185 MMCFD
in December 2012, reflects a growth of 143% over 76
MMCFD achieved in December 2011. Net proved reserves
nearly tripled to 542 BCF in 2012. Well performance
has varied and reflected heterogeneity and geological
complexity of the acreage.
Cost reduction efforts yielded limited success. JV realised
some cost savings in procurement and rig mob/demob
operations, but their impact were masked by higher well
pad construction costs in the difficult terrains. Focus in the
areas of pad optimisation, facility standardisation, central
water impoundment and supply chain management are
expected to yield lower costs in the coming year. Enhanced
focus on development optimisation, drilling efficiency
improvement, water management, adoption of zipper
frac and other completion cost reduction initiatives are
expected to yield desired reduction in well costs over the
next three years.
JV is pursuing paced development in view of the
challenging pricing environment and remains focused
on 6.0 BCF dry gas areas while retaining optionality
on acreages through low cost lease renewals and their
expedited development with any improvement in market
conditions.
RIL E&P Outlook
By the end of 2012, fields in the KG-D6 block had produced
2 TCF of gas and 22 million barrels of oil, creating
unprecedented value for the Nation through nearly $ 35
billion in energy import savings. In partnership with BP,
RIL plans to become a major player across the gas value
chain in India. The JV has made significant progress
towards finding new resources through exploration by
identifying new prospects in its deepwater acreages in
the East Coast. Further, the JV through extensive efforts
is poised to unlock value from its existing discovered
resource base by advancing its planning for the next wave
of projects in KG-D6 and NEC-25.
RIL’s CBM block continues to make steady progress
towards developing the Sohagpur East and West blocks
to produce first gas by FY 2014-15.
Reliance expects to see continued growth momentum in
the shale business during FY 2013-14. Natural gas prices
have improved in recent weeks, crossing the $ 4/MMBTU.
While oil price outlook is stable, NGL prices remain under
pressure on continued supply side pressures. Well costs
remain stable as benefits of ongoing cost and efficiency
improvements are partly offset by inflation in service costs.
Reliance remains focused on liquid-rich development
activities at the Eagle Ford JV and paced development in
its Marcellus JVs. Optimising HBP (Held by Production)
efforts and pursuing cost effective lease renewal for
retaining optionality on resources is the common theme
across JVs. In future, the Company will continue to focus
on efficiency improvement and cost reduction, optimising
netback through enriched product and customer mix, as
well as high grading of development to ensure superior
return on incremental capital spending.
To complement the existing asset base, RIL continues to
look at new opportunities globally that are a strategic fit
with capabilities and integrated petroleum value chain.
In the upstream business, RIL aspires to:
l
l
l
Become a global top 10 independent hydrocarbon
producer through significant and sustainable value
creation
Be India’s top player across the gas value chain
Responsible operations from an environment and
people perspective
Reliance Industries Limited
29
l
l
Have best in class people, processes and technology
Be recognised as a “Partner of Choice” for its
stakeholders
The chief enablers for the business model to achieve the
above aspiration would be:
l
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l
To grow profitably, organically or inorganically,
while strengthening its Indian and international
positions
Continued integrated presence across upstream,
midstream infrastructure and downstream
Implementing Centres of Excellence and partnership
models to bring and help adopt best processes,
technologies and people globally
REFINING AND MARKETING BUSINESS
Business Environment
The main market themes for the year were, firstly, crude
oscillating in a range driven by competing sentiments on
the ongoing global economic health versus geopolitical
supply security concerns. Secondly, margins - the key
driver of refining business profitability, starting the year
weak, but progressively strengthening as new capacity
addition was delayed and widespread refinery shutdowns,
planned and unplanned. This year witnessed a reduction in
refining capacity, primarily because of closures of refineries
in the West. Four major refining assets, Markus Hook -
US East Coast, Hovensa and Aruba – US off shore and
Coryton – UK, ceased operations this year. Some of these
locations are planned to be converted into import facilities.
The third theme was that the spot LNG prices firmed up
towards the end of 2012, under pinned by strong seasonal
demand in the second half coupled with supply short falls,
primarily from Africa.
It is more than four years since the recession, triggered by
the banking crisis in the US and the world is still recovering
from its effects. The counterbalance for the oil markets
to the impact of economic concerns on demand, were
political tensions across the world – Iran, Sudan, Nigeria,
North Korea, Libya and Algeria, all resulting in supplies
disruptions or potential disruptions and maintaining a “risk
premium” on crude prices.
Oil demand growth continues to remain skewed towards
the developing nations, led primarily by China followed
by India, Middle East and Latin American economies.
OECD nations continue to see a declining demand and
many believe that the demand in these nations is past its
peak and unlikely to return on a sustained growth path. In
addition to maturing economy and low growth, increasing
efficiency standards and focus on use of non-fossil fuels
including the biofuels has supported this decline. Oil
demand growth in Non OECD in 2012 was 1.4 MMBPD
while OECD demand shrank by 0.6 MMBPD. Indian oil
demand grew by 130 KBPD to 3.65 MMBPD.
Crude prices started the financial year at the top of the
range buoyed by fears of fallout from “Arab Spring”. Prices
witnessed a steep crash in the first quarter as mounting
possibility of default in peripheral Europe held centre
stage in price movements. Adding to the woes were weak
economic data from the two biggest economies US and
China.
Starting in the July, EU and US sanctions against Iran set
in, halving the exports from the Persian nation. OPEC,
led by Saudi and supported by Iraq resumed the role of a
swing producer; ramping up the production, keeping the
market well supplied and thus avoiding an oil price spike.
The world has gradually become accustomed to oil prices
in three digits. Marginal production cost and the finance
requirements of many OPEC countries and oil companies
provide a support to oil prices at around $ 90/bbl.
Product Cracks and Margins
Cracks - the difference between product price and crude
oil price, strengthened across the barrel during the year,
supporting global refining margins. Diesel and economic
growth are strongly correlated. Middle distillates (diesel
and jet kerosene), in recent years, have been the key
contributor to refining margins in Asia and Europe. On
a Y-o-Y basis, both jet-kero and gasoil margins in Asia
strengthened, supporting RIL margins. Middle distillates
have been the strongest growing product for a number of
years. In 2012, middle distillate demand grew by over 400
KBPD, contributing to over 40% of global oil demand
growth. Diesel, in most of Asia, continues to remain highly
subsidised, further adding to the growth.
Cracks
($/bbl)
Naphtha
Gasoline
Gasoil
Fuel Oil
Singapore
Complex
RIL
Q1
Q2
Q3
Q4
-8.5
10.6
15.4
-1.3
6.7
-6.0
12.4
19.3
-2.4
9.1
-3.9
10.1
17.5
-9.0
6.5
-1.7
15.3
19.6
-7.3
8.7
FY
2012-
13
-5.0
12.1
17.9
-5.0
7.7
FY
2011-
12
-4.6
11.5
17.8
-2.6
7.8
7.6
9.5
9.6
10.1
9.2
8.6
30
Fulfilling India’s Aspirations. With Innovation and Enterprise.
The trend of refiners shifting to middle distillates
production is now also seen in the US. Increasing efficiency
standards and Corporate Average Fuel Economy (CAFE)
standards have promoted the use of smaller cars. This is
now beginning to have an impact on the gasoline demand
in the US – its biggest market. In response, the US refiners
are shifting to more middle distillate yields and exporting
to the short Latin American market.
On light distillates, naphtha margins have been stable
Y-o-Y; but, gasoline has witnessed remarkable strength,
especially in the year’s last quarter. This was primarily on
account of unplanned outages, refinery closures on the US
East Coast and the Hovensa refinery in the Caribbean due
to poor gasoline oriented unit margins. Fuel oil’s weakness,
especially in the second half of the year, on account of
weak Chinese demand and ample supplies from the west,
widened the light heavy differentials, supporting complex
refining margins.
Singapore complex refining margins were robust,
particularly in the second half of the year. Strength in
gasoline cracks, an important constituent of benchmark
margins, along with widening octane spreads and overall
bullish middle distillates helped the benchmark margin
surge towards 10 year high levels.
Capacity additions in 2012 were primarily for expansions
in the existing refineries. This was offset by closures in the
US, Europe and Asia/Far East, leading to a net capacity
reduction of about 250 KBPD. Oil demand growth,
much higher at 850 KBPD, was also supportive of higher
margins.
These closures also resulted in improved average refinery
utilisation rates in North America (83.6% in 2012 v/s
82.9% in 2011) and Europe (80.5% in 2012 v/s 78.3% in
2011); while utilisation rates in Asia improved marginally
to 85.8%. In comparison, the Jamnagar refinery complex
operated at a record utilisation rate of 110%, built on a
relentless focus on continuous improvement.
RIL Performance
Overall, RIL’s refining business had a record financial
performance for FY 2012-13 with Gross Refining Margin
(GRM) averaging $ 9.2/ bbl, as against $ 8.6/ bbl in FY
2011-12. Though the refining margins remained weak
in the first half, margins strengthened in the second half
with weakness in fuel oil cracks widening the light heavy
differentials and supporting complex refining margins. The
margins were also supported by unplanned refinery outages
in the second half of the year.
RIL’s refineries continue to outperform their global peers,
given their competitive strength to process challenged
feedstock and produce clean fuels, at low operating costs.
Total exports of refined products from both refineries
reached $ 39.3 billion during the year, as compared to
$ 36.0 billion in the previous year. Exports of refined
products were 41.2 MMT as compared to 39.6 MMT during
the same period last year.
RIL Operating Model
The goal of R&M business within RIL is to deliver industry
leading returns and be a source of medium-term growth,
while focusing on health, safety and environment. The key
asset within R&M is the Jamnagar Refinery - the world’s
largest and the most complex refinery. This is supported by
a sophisticated trading, supply and marketing operation.
RIL’s operations ensure access to a very wide variety of
feed stock to produce products, meeting the most stringent
specifications globally.
The key components of the business model include:
Asset Advantage: Operating close to 1.4 MMBPD,
Jamnagar is the largest refinery in the world. Within the
system many of the key units are also the largest in the
world. It is composed of two refinery developments, one
which supplies domestic and export demand and another
which is completely dedicated to the export market. Both
these refineries were built in a record time of three years
which together with scale has given us an industry leading
capital per barrel of capacity outlay.
Supporting the refinery is a marine facility giving access to
the world’s largest crude and product vessels. The facility
is capable of handling the largest oil tankers, VLCC sized
vessels to offload crude at the Single Point Mooring (SPM)
facilities. The Company’s export facilities support the
largest of product carriers. This allows the refineries to
competitively access all major markets - Sao Paulo, New
York Harbour, Rotterdam, Singapore.
The scale of operations and its energy efficiency allow
the Company to have one of the lowest operating costs
globally.
Asset Optimisation: The Company prioritises safety in
all its operations. RIL has extensively utilised the safety
processes and programmes of DuPont, the recognised
industry leader in the industry. This year, British Safety
Council, U.K. awarded DTA refinery with the “Sword
Reliance Industries Limited
31
of Honour 2012” for Occupational Health and Safety
Management System. The SEZ refinery was conferred
the prestigious “Globe of Honour” for its Environmental
Management System.
FY 2012-13 was an outstanding year for operational
performance with new records set at Jamnagar refinery
complex, including a record crude consumption of
68.5 MMT at an average capacity utilisation of 110%,
surpassing the global peers. RIL completed a significant
shutdown in March 2013 to budget and schedule, including
modifications to improve throughput and yield.
RIL’s integrated Supply and Trading team works real-time
with the refinery operations to optimise asset utilisation.
Trading offices in Houston, London, Singapore and
Mumbai gives the Company a global coverage for crude
supplies and market outlets.
The configuration at Jamnagar is amongst the most
complex in the world. In practical terms this gives us the
technical ability to process almost all grades of crude oil
produced and meet the increasingly differentiated and
more demanding product specifications. The crude and
supply trading teams select a crude diet using processes
that optimise against the tremendous flexibility of the
system and then source the crudes across the globe. So far,
the refinery has processed 119 different grades of crudes
in addition to other semi-refined feed-stocks from simple
refineries.
Given its ongoing appetite for heavy crude, RIL entered in
a 15 year agreement with PDVSA of Venezuela for supply
of crude. The agreement provides RIL with security of
supply and allows it to optimise around that supply while
providing PDVSA a material Asian end user market.
The facilities at Jamnagar enable RIL to produce products,
capable of meeting the most stringent environmental
norms, even after processing high sulphur feed-stocks.
This gives RIL an edge of being able to cater to the needs
of nearly all markets across the world. The product trading
team stationed across RIL’s global offices identifies the
market shorts and collectively places the products in the
highest netback regions. This year Jamnagar produced 7
new product grades, catering to specific needs, helping
RIL penetrate into high value niche markets. Tankage at
the major trading hubs also allows the Company to better
serve its customers, benefit from the seasonality capturing
the upside from the resulting market structure.
The Jamnagar marine facility, which runs material shipping
and marine operations, handled nearly 1,500 ships this
year. RIL’s marketing team caters to India’s Public Sector
Unit deficits, helping meet growing energy needs. The
marketing operations also have expanding aviation fuels
and LPG businesses. In East African marketing businesses,
RIL realised strong GAPCO volume growth, with sales
increasing by 81% to 2,372 TKL.
At the end of the year, 287 retail outlets were operational in
Southern and Western regions and North Eastern states of
India. Resuming operation in all geographies and scaling up
of sales would be possible after clarity on implementation
of market determined prices for gasoline and diesel.
Creating Sustainable Leadership
Refining business has embedded the overall business
transformation process underway across RIL. The goal is
to create the systems and processes to allow the business
to operate efficiently at the current scale and readily allow
expansion. It is a holistic exercise governing organisation,
clarity on roles and responsibilities, governance and
structure to cutting edge digitisation across the entire
business.
Petcoke Project Update
One of its key forward actions is the coke gasification
project which is expected to put RIL’s energy and hydrogen
costs at par or better than the refineries in the US, where
natural gas prices have fallen dramatically with the shale
revolution.
The project is designed to convert the lowest cost fossil
fuels – coal and coke into gas. The project is based on
world-beating Phillips 66 technology and is currently in the
execution stage. Upon completion, this will significantly
improve the energy efficiency of Jamnagar complex and
contribute favourably to its profitability. This enhanced
complexity, as a result of this project, will make the
Jamnagar configuration even more robust.
PETROCHEMICALS BUSINESS
Business Environment
Ethylene
Ethylene is the raw material used in the manufacturing
of polymers like Polyethylene (PE), Polyvinyl Chloride
(PVC) and polystyrene, as well as ethylene oxide and
ethylene glycols. These products are used for various end
32
Fulfilling India’s Aspirations. With Innovation and Enterprise.
markets such as packaging, transportation, electronics,
textiles and construction.
Global ethylene production totalled 127.9 MMT during
the year, with an operating rate of 85.7%. The slow global
incremental demand at 1.9 MMT was due to the European
crisis and subdued Chinese demand. Global ethylene prices
remained high, supported by high crude oil and naphtha
prices and plant turnarounds. Asian ethylene margins
improved during the year due to PE and ethylene price
increases.
World Ethylene supply/demand 2012
Production by feedstock Demand by end use
Production : 127.9 MMT Demand : 129.1 MMT
Naphtha
Ethane
Propane
Butane
Others
48% PE
35% Ethylene Oxide
8% EDC
4% EBZ
5% Others
60%
15%
10%
6%
9%
Source: IHS
Capacity additions have changed the supply scenario.
During the year, 89% of capacity additions were from the
Middle East and Asia. The Middle East has a share of 19%
of global capacity while Asia’s share stands at 34%. With
the capacity becoming operational in the Middle East, the
overall feedstock mix for crackers changed in favor of gas.
Lower NGL prices on account of shale gas availability
provided a significant advantage to US ethane cracking
as compared to integrated naphtha cracking. Globally,
naphtha-based operators experienced cost increases due
to higher input costs compared to gas based operators.
Global Polymers Market
Global ethylene demand is dominated by the production of
PE (HDPE, LLDPE and LDPE), which is used primarily in
a wide variety of non-durable goods applications including
packaging materials.
Global thermoplastics market in FY 2012-13 was estimated
at 208 MMT. Of this, PE accounted for 38% of all plastic
consumption, followed by polypropylene (PP) and PVC
which accounted for 25% and 18% of the total plastic
demand, respectively.
Global capacity addition of PP was 2 MMT while
incremental growth in demand was 1.76 MMT.
Consequently, operating rates declined to 82.4% from
84% in the previous year. Total global PE capacity addition
was 1.48 MMT while incremental growth in demand
was 2.0 MMT. Operating rates for PE remained stable at
83.6%. Global incremental demand of PE grew by 2.5%
to 2.0 MMT. Global capacity addition of PE during the
year was 1.48 MMT, with majority (56%) of capacity
additions coming in Asia and the Middle East. While Asia
led the demand growth for PE, new capacities were built
predominantly in the Middle East.
Global Polyolefins+PVC Demand
(In MMT)
2012
2011
PE
PP
PVC
Ethylene
Propylene
Source: IHS
79
54
37
129
84
77
52
36
127
82
% Growth
2012 vs 2011
2.5%
3.4%
2.7%
1.5%
1.7%
Global demand for PVC grew 2.7%, while operating rates
decreased to 68.9% from 71.6% in the previous year.
Incremental demand of 0.97 MMT lagged behind capacity
additions of 3.29 MMT.
Prices and deltas-Polymers
Product prices were mixed during the year. PP deltas were
marginally lower (from $ 140/MT in FY12 to $ 134/MT
in FY13) as decrease in PP prices (on lower demand) was
marginally higher than the drop in propylene prices. HDPE
delta improved (from $ 430/MT to $ 482/MT) as naphtha
prices softened (growing supply & demand concern) and
HDPE prices improved marginally. PVC deltas improved
(from $ 488/MT to $ 535/MT) due to sharp fall in EDC
prices on account of higher availability from the North
American markets.
Product Prices: South East Asia
Price($/MT)
Dubai Crude ($/bbl)
Naphtha(FOB AG)
PP
HDPE
PVC
Source: Platts
FY 2012-
13
107
891
1427
1373
994
FY 2011-
12
110
931
1481
1361
1050
Change
%
-3%
-4%
-4%
1%
-5%
Reliance Industries Limited
33
Indian Polymer Market
Despite being among the fastest growth markets globally,
India’s per capita plastic consumption (PE, PP and PVC) at
6.6 Kg remains far behind those of the US (67.3 Kg), China
(36.7 Kg) and Brazil (24.6 Kg). However, it is advancing
at 2.5 times its GDP growth. Besides, the subcontinent’s
surging industrialisation and increasingly powerful
economy holds immense untapped growth potential.
Global automobiles, electronics, telecommunications,
food processing, packing and healthcare companies have
established large manufacturing bases in India. Joint
ventures, foreign investments and access to technology
from developed countries have opened new vistas to further
facilitate the growth of the industry.
Infrastructure investments have ensured more than 10%
growth rate for the sector. Moreover, the agricultural
sector’s focus on plasti-culture under micro-irrigation
scheme will further boost demand.
India’s manufacturing capacity of polymer products is
estimated to reach 12 MMTPA in 2017, from 8.3 MMTPA
in 2012.
Polymer consumption in India is poised to grow multifold,
with the help of new developments in packaging
applications, infrastructure growth, modernisation of
agriculture sector, improved healthcare facilities, improved
lifestyle and disposable incomes, automobile demand and
rural penetration.
Polymer packaging product’s development has
revolutionised Indian lives. India’s packaging polymer
consumption, accounting for over 60% of total polymers
consumed, reached 5.5 MMT in 2012 and is expected to
reach 10 MMT by 2020. The key growth drivers for this
sector are foods and processed food items, FMCG and
cosmetics.
RIL Performance
RIL maintained its leadership position in the polymer
industry with domestic market share of 41% and
commodity polymer production share of 62%. RIL’s
cracker operating rate was at 91%. RIL produced 4.4 MMT
of all polymers including PP, PE and PVC and exported
around 0.8 MMT during the year.
RIL Polymer Production
(In KT)
PP
PE
PVC
Total
FY 2012-13
2810
992
620
4422
FY 2011-12
2740
1077
638
4455
PP: RIL, the world’s 5th largest PP producer, has 2.8 MMT
installed capacity, with production facilities at Jamnagar,
Hazira, Nagothane and Vadodara. In FY 2012-13, the
Company experienced a record PP production of 2,810
KT, up by 3% from FY 2011-12. RIL continues to lead
the domestic PP market with 64% market share. India’s
PP consumption for FY 2012-13 is estimated to be 3.1
MMT, growing at 13% over FY 2011-12. The product is
mainly used in manufacturing monofilaments, woven bags,
appliances, houseware, flexible packaging, lamination film,
textile and non-woven.
New grades introduced into the market by RIL to counter
imports, include:
l
l
l
Repol SR70N heat sealable grade for food packaging
application, a substitute for imported grades
SRX100, with improved aesthetics
Repol H050MN, modified for better draw-down and
improved thermoforming characteristics
PE: The domestic demand for PE has grown by 10% over
the past year. Major end-uses of PE are containers, rigid
packaging, lamination film, pouches, shrink films, career
bags and pipes.
HDPE, LLDPE and LDPE demand have grown by 10%,
13% and 18.9% Y-o-Y basis, respectively. RIL has a total
PE capacity of 1.1 MMT with production locations
at Hazira, Nagothane, Vadodara and Dahej. RIL has
market shares of 18% in HDPE, 37% in LLDPE and
42% in LDPE. It leads the domestic PE market with 28%
market share. The Company has increased its market
share in high-value sectors in HDPE (like pipe, rotomolding
and high flow). Besides, it has maintained its existing
share in LDPE’s high-value sectors (like milk packaging,
extrusion coating and injection molding).
RIL’s round-the-year grade development activities include:
l
l
LLDPE Relene LL40RA040 launch for LL
Rotomolding sector
Introduction of Black Pipe Compounding Grade
LLDPE Relene 45GP004B for HD
PVC: PVC finds applications in irrigation pipes, drinking
water supply, sewerage schemes, profiles for the building
industry, wires and cables. Pipes and fittings continue to
account for 74% of the domestic PVC demand.
India’s PVC consumption was estimated to be 2.24 MMT
in FY 2012-13, growing by 14% over the previous year.
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Fulfilling India’s Aspirations. With Innovation and Enterprise.
With a 28% market share, RIL’s PVC capacity is 0.65
MMT with facilities at Hazira, Dahej and Vadodara. In
FY 2012-13, India imported about 1,044 KT of PVC, 370
KT higher than the previous year.
RIL introduced a new PVC grade with a medium porosity
resin 67GER01F to capture the aesthetically-concerned
customer. RIL also initiated discussions on value-added
products such as High K Value resins and its use in critical
insulation and high-strength applications.
New Developments and Growth Initiatives
RIL helped create new markets by conducting and
participating in 50 Rishta events throughout India. The
Company also promoted the use of Block Bottom bags.
RIL has been successful in attracting investments for 12
convertex lines for patented Adstar/Adpro bags production
for cement packaging. This will address issues such as
quality, aesthetic quotient in packaging, reduced labour
availability in the labour-intensive raffia industry and
others.
PP-made geotextile has immense potential in road
construction and in river and sea embankment. Several
states have specified its use in the embankment projects.
RIL worked with the Textile Ministry and other nodal
agencies to facilitate new investments in geotextile.
PP-Nonwoven forms an ideal cover in banana plantations.
RIL has tied up new projects with several agriculture
institutes to establish PP in plantation of other fruits and
vegetables. Besides increased production, it helps farmers
grow high-quality products for the export market.
RIL has been successful in replacing glass and paper with
PP in flavoured milk and glucose beverages.
Polymers Project Update
RIL announced the setting up of a Refinery Off-Gas
Cracker (ROGC) at its Jamnagar location. This cracker,
expected to be among the world’s largest ethylene
crackers, will use refinery off-gas as feedstock. Products
from the cracker will be utilised for the new downstream
petrochemical facilities being built at Jamnagar. The
facility will have an installed capacity of 1.4 MMTPA of
ethylene, 0.2 MMTPA of propylene and its downstream
capacities for polyethylene and polypropylene.
RIL has completed the licensing and technology selection
for these projects and the same are currently at various
stages of implementation.
Chemicals Business
The global scenario for chemicals during the year was
mixed, as the US and EU faced sluggish local economies
due to high unemployment levels, sovereign debt crisis
and declining output levels.
In recent years, the global chemical and petrochemical
industries have moved eastward towards Asia and the
Middle East with major hubs being set up in these
regions. India faces major competition from hubs in
China, Singapore and the Middle East for which it needs
to maintain competitiveness and cost.
The chemicals industry supplies products to industries
such as the pharmaceuticals, construction, agriculture,
packaging industry, automobile and electronics industries.
RIL is the leading producer of linear alkyl benzene,
butadiene and the only producer of polybutadiene rubber
and acrylonitrile in India. RIL also has leadership position
in aromatics segment constituting benzene, toluene and
xylene.
Benzene: Benzene’s global capacity in 2012 was 60 MMT
with average operating rate of 74%. The demand for the year
was at 44 MMT, of which around 82% was from styrene
(used for manufacturing plastics and elastomers) phenol
(used to make phenolic resins and nylon intermediates)
and cyclohexane (used to make Caprolactum and Nylon
Resins). Globally, Benzene has excess capacity with over
11.5 MMT increase in the past 4-5 years.
RIL’s benzene production was at 743 KT for the year, a
growth of 1% from last year. Benzene exports mainly to
the US, Europe and Middle East increased by 8%. Toluene,
a major product of BTX group, registered production
volumes of 85 KT.
Butadiene: Global capacity in 2012 was 12.5 MMT
with an operating rate of 80%. North-East Asia remains
the world’s largest market with a global market share of
45% followed by the US and Europe at 23% and 21%,
respectively. Demand grew at 3% on a Y-o-Y basis, driven
by Polybutadiene Rubber (PBR), Styrene Butadiene
Rubber (SBR), ABS and SB Latex, which are used mainly
in the automobile Industry.
Global capacity addition is expected to grow by 2.9
MMT by 2017 to 15.4 MMT. In Asia, capacity addition is
expected to grow by 2 MMT to reach 8.4 MMT in 2017.
In India, the strong demand for BD is expected to grow
at a CAGR of 32% to 451 KTA by 2017 in line with new
Reliance Industries Limited
35
downstream capacities coming up. These include 150 KTA
SBR and 40 KTA PBR by RIL and 120 KTA SBR by other
players, expected to go on stream in FY 2013-14.
RIL produced 169 KT of butadiene. Demand at 114 KT in
India was driven by downstream sectors including PBR,
ABS and SB Latex, which remained flat on Y-o-Y basis.
Polybutadiene Rubber: PBR’s global demand, which
generated mostly from the automobile industry, is
estimated at 3.2 MMT in 2012. The demand for synthetic
rubber in 2013 is expected to grow at 6% to reach 3.4 MMT.
RIL is India’s only PBR manufacturer. The product’s
domestic consumption is estimated at 167 KTA and is
expected to reach 180 KTA by 2013-14, growing at about
8%.
Linear Alkyl Benzene (LAB): LAB is almost entirely
consumed in surfactant intermediate for detergents. Global
LAB consumption is around 3.2 MMTPA, as against
a 3.7 MMTPA capacity. The demand growth is at 2%
globally and at 4-5% in Asia. South East Asia, Middle
East and Africa emerged as the growth engines of LAB
consumption. Global capacity addition is expected to grow
0.15 MMT to reach 3.85 MMT by 2017.
With an installed capacity of 182 KTA, RIL is the largest
LAB producer in India. RIL's capacity utilisation for the
year was at 90% due to tightness in normal paraffins. The
industry grew at 6%, in line with GDP growth.
Chemical Products Project Update
RIL has planned investments at Hazira for setting up a
world scale SBR plant and a unique nickel/neodymium
catalyst-based swing PBR plant is to be operational in
2013-14. These investments will help the Company in
maintaining its leading position in elastomers sector in
Indian sub-continent.
PBR: New PBR capacity of 40,000 tonnes taking total
PBR capacity to 115,000 tonnes.
SBR: A new facility for styrene butadiene rubber (SBR)
with a capacity of 150,000 tonnes.
Butyl Rubber: RIL entered into a JV with SIBUR, Russia,
for setting up butyl rubber production facility at Jamnagar,
India. The plant with 100,000 tonnes of initial capacity of
butyl rubber is currently under execution.
Polyester Chain
Business Environment: Polyester
The global fibre and textile industry faced subdued demand
in consumer segment during the past year, due to volatile
economic situations in the US and Europe and geo-political
disturbances in Africa and the Middle East region.
The overall global fibre consumption during FY 2012-13
reached 81 MMT, rising by 3% over the previous year.
Only Asia’s demand increased, while that for the rest of
the world declined.
Polyester fibre and yarn continued to be the major
contributor to the growth of fibre demand, increasing by 7%
to 44 MMT. Demand largely increased in Asian countries
with China contributing 9% growth. Global polyester fibre
and yarn capacity increased by 10%, impacting operating
rates, which declined to 78% compared to 80% in the
previous year.
Prices during the year declined by 10-12% from FY 2011-
12, as buyers turned cautious given the slow downstream
demand and chose to cut losses by controlling inventory.
Margins continued to be under pressure with polyester
delta dropping 23%-27% to $ 166-240/MT.
Over the past few years, the polyester industry enhanced
the use of recycled polyester, derived from recycling PET
bottles. Currently, over 6 MMT of clean flakes are produced
from recycled PET waste. Among them, a major portion is
used to manufacture recycled fibre, while the rest is used
in sheeting and blow-moulding.
Global Polyester Feedstock Scenario
Feedstock markets, impacted by cautious market
sentiments, experienced an overall price drop compared to
FY 2011-12. PX prices remained largely stable, while those
for PTA and MEG declined by 9% and 10% respectively.
PX witnessed a better year, with about 2 MMT lesser
capacity additions than anticipated, keeping operating
rates high near to 90%. Demand was pegged at 33 MMT,
rising 3% from FY 2011-12. China witnessed 20% demand
increase due to downstream PTA capacity additions.
Additionally, investments planned in downstream PTA
ensured that markets remained short. Planned/unplanned
outages in the third quarter pushed PX margins to a
14-month high. The FY 2012-13 deltas increased 2% over
last year to $ 606/MT amidst overall positive demand
sentiments from the large PTA base.
Planned capacity additions continued to impact the PTA
markets. During the year, capacity grew by 12% to 59
MMT. Demand, however, grew by 5% to 50 MMT.
Overcapacity dented operating rates, which slipped to
83%, compared to over 90% in the past two years. China
accounted for 85% of the global capacity growth in the
36
Fulfilling India’s Aspirations. With Innovation and Enterprise.
last two years, leaving little room for capacity expansion
outside China.
Due to overcapacity in PTA and inadequate PX capacity
build-up, PTA prices remained under pressure. Margins
were consequently eroded and the FY 2012-13 average
delta was below breakeven at $ 80/MT.
MEG markets witnessed no significant capacity additions
during the year. High inventory at Chinese ports during
the first half of the year lent some bearishness to prices,
which recovered in the second half as inventory gradually
reduced. Demand increased 4% to 23 MMT during the
year. China accounted for most of the demand increase.
Operating rates were at 81%, the best in past five years.
Delta over naphtha declined 18% to $ 429/MT, largely due
to the slack downstream demand. However the margins
continued to remain above the long term average.
Global PET Scenario
The US and European discretionary spending reduction and
poor weather conditions, impacted PET bottles demand.
Prices in FY 2012-13 declined 11% to $ 1450/MT. Further
delta declined 25% to $ 167/MT due to bearish sentiments
and the rapid capacity build-up. During the year, global
PET capacity grew 9% to 22 MMT, with production rising
by only 6% to 18 MMT. China alone accounted for 46% of
the capacity growth. The large capacity build up in China
forced many producers to reduce operating rates and cut
down inventory in the second half of the year.
Global Cotton Scenario
Global cotton production in the 2012-2013 cotton year
surpassed consumption, leading to closing stocks reaching
historical high. Record Chinese strategic cotton reserve
procurement helped stabilise both Chinese and global
cotton prices. Moreover, procurement prices, fixed
by China Reserve, were substantially higher than the
international rates, putting pressure on the competitiveness
of the Chinese spinners.
By the end of the 2012-13 cotton season, China is estimated
to have about 10 MMT closing stock which translates to
over 50% of the global stocks and almost a year’s Chinese
domestic consumption.
Developments in the Indian Market
Cotton and polyester are the major raw materials for India’s
textile industry. Cotton and polyester together account
for around 90% of India’s textile mill consumption of all
fibres. India’s per capita fibre consumption is around 5 kg,
almost half the global level. Polyester is likely to play a
dominant role in capturing the major incremental demand
share to bridge this gap.
The domestic prices of polyester and cotton witnessed
less volatility during the year as compared to the volatility
in cotton prices last year. This improved the profitability
and viability of downstream textile industry. However,
continued power shortage in key downstream textile and
packaging manufacturing centres, especially in Southern
India, limited polyester demand growth.
The downstream polyester demand remained depressed
earlier in the year, amidst subdued global markets due to
high polyester inventories, lower margins and steep decline
in the feedstock prices. Domestic demand improved in the
second half of the year. Also, delayed monsoon in India led
to healthy demand for PET from the water and beverage
segments.
During FY 2012-13, domestic polyester demand grew by
5.1%, led by 10% growth from the PET and 4.4% growth
from the PSF. In the PFY segment, FDY witnessed a growth
rate of 10% over the last year.
PFY, PSF and PET demand was around 2.3 MMT, 0.82
MMT and 0.57 MMT, of which RIL’s share was around
24%, 68% and 46% respectively.
In case of feedstock, PTA demand was at 4.0 MMT, up
by 10%, amidst the incremental demand on start-up of
new polyester capacities in the country. MEG demand is
estimated at 1.7 MMT, up by 7%. PX demand is estimated
at 2.3 MMT, up by 5%.
RIL Performance
RIL is the world’s largest polyester fibre and yarn producer
with a capacity of around 2.4 MMT across nine sites in
India and Malaysia. The company is undergoing capacity
expansions across the polyester chain to strengthen its
backward integration and provide affordable raw materials
to the Indian textile industry.
The Company’s Malaysian operations continued to
develop new markets and enhanced its market presence in
Korea and Indonesia by value-added product mix. Recron
Malaysia commissioned a 100 KTA state-of-the-art PFY
plant during the year.
With the planned addition of 1.5 MMT of polyester
capacity at Silvassa and Dahej, RIL’s capacity (including
Recron Malaysia) will be 3.9 MMT.
RIL’s total polyester production (PFY, PSF and PET) was
1.6 MMT in 2012-13, down by 2.1% due to planned PFY
facility turnaround.
Reliance Industries Limited
37
Polyester Production
(In KT)
PFY
PSF
PET
Total
FY 2012-13
665
612
351
1627
FY 2011-12
696
613
353
1662
RIL’s total fibre intermediates production (PX, PTA and
MEG) in FY 2012-13 was at 4.7 MMT, largely steady as
compared to the previous year.
Fibre Intermediates Production
(In KT)
PX
PTA
MEG
Total
FY 2012-13
1995
2087
682
4764
FY 2011-12
2004
2069
683
4756
RIL is the world’s 5th largest PX producer, 8th largest
MEG and 9th largest PTA producer. Post expansions,
the Company will further strengthen its rank across the
polyester chain.
Outlook
Global textile fibre industry is expected to grow 24 MMT
by 2020 to 105 MMT. Of this polyester will account for
over 68% of global demand growth. India is poised to
strengthen its global foothold with polyester production
share rising to 10% of global volume from the current 8%.
The global PET industry is likely to witness capacity
growth of 10 MMT by 2015 to about 32 MMT. With
supplies likely to remain above incremental demand,
utilisation rates are expected to remain under pressure in
the medium term.
For feedstock, tight PX market conditions are likely to
continue till 2014 until planned capacity additions are
executed. The year 2015 would witness PX capacity growth
of 12 MMT over 2012. Operating rates are expected to
be maintained above 80%. PTA markets will continue to
witness oversupply, with excess capacities likely to make
China self-sufficient in the next two years.
China is likely to emerge as a major influence in the
global MEG markets by 2015 with 85% of global MEG
expansions. Any issue in the operational success of MEG
manufactured from the planned coal-based DMO process,
would lead to product shortage and impact prices.
India’s all fibre textile mill consumption is likely to grow
at a 5.2% CAGR between 2012 and 2020 to 12.3 MMT.
The CAGR growth for the demands for PFY and PSF are
expected to be 8.6% and 5.4%, respectively. Polyester is
likely to account for a major 60% of incremental domestic
fibre demand between 2012 and 2020.
As per Technopak projections, India’s total textile and
apparel market size (domestic and export), estimated at
$ 89 billion in 2011, is projected to grow at a 9% CAGR
to reach $ 223 billion by 2021.
The domestic textile and apparel market size was $ 58
billion in 2011 and is projected to grow to $ 141 billion
by 2021. The key growth segments are technical textiles
which is likely to see a 10% CAGR, followed by 9% in
apparels and 8% in home textiles.
Polyester Chain Project Update
Reliance has embarked upon a major polyester chain
expansion to take full advantage of the feedstock
integration and the domestic growth opportunity. These
include setting up of a world-scale 1.8 MMTPA of PX
plant, doubling the PTA capacity to 4.3 MMTPA and
expanding polyester portfolio by 1.5 MMTPA.
Implementation of all these projects have begun in full
swing and are expected to see production from newly
commissioned projects in phases over the next 2-3 years.
Opportunities across the Energy Chain
The growing Indian economy creates unprecedented
opportunities for RIL to significantly invest and expand
in each of its core businesses. In FY 2013-14, the Indian
economy is expected to grow at about 6% and the demand
for hydrocarbons will also continue to rise. Although there
has been significant growth in domestic production of
oil and gas, India is far from being self-sufficient in this
sector. With increasing demand for oil and gas and foreign
exchange constraints, it is imperative that production of
hydrocarbons in the country be maximised.
Delayed regulatory approvals in the oil and gas sector for
the past two years have adversely affected exploration
and development activity in India. However, the recent
improvement in pace of approvals indicate a policy change.
The submission of the Rangarajan Committee Report,
which has addressed the sector’s key issues, also indicates
positive tractions in the environment.
RIL and BP, under their KG-D6 block enhancement plan,
are planning to invest in a series of projects to develop
around 4 TCF of discovered natural gas resources from
the block. This plan, when implemented, would entail a
potential total investment in excess of $ 5 billion over the
38
Fulfilling India’s Aspirations. With Innovation and Enterprise.
next three to five years. The field development plan for
the Satellite and R-Series discoveries has been submitted
to the government for approval. This and other projects,
would add incremental production from 2017 and beyond.
The implementation of various projects in the KG-D6
enhancement plan is subject to regulatory and Government
approvals. Additionally, RIL is also working on developing
NEC-25 and CBM blocks, which are subject to timely
approvals.
Reliance has made significant investments in the emerging
and exciting resource base of shale gas in USA. The shale
gas business is enabling RIL to unlock huge potential in
the context of unconventional hydrocarbons and increasing
its global and geological footprint in this business. All
the three US shale gas ventures are operational and
the development activities continue to have significant
momentum, doubling the sales volumes and wells drilled
in last one year. RIL is targeting a meaningful ramp-up
in production over the next three to five years. Currently,
more than 500 wells are in operation with drilling inventory
of around 3,000-4,000 wells. While the Company is
now following a liquids-driven strategy, focusing on the
shale assets with condensates and oil in Eagle Ford JV,
the recovery of US natural gas prices over the medium
term would likely encourage more production from the
Marcellus shale gas assets going forward. The shale gas
business is now a significant part of RIL’s E&P portfolio.
RIL’s refining assets are among the world’s best owing to
the scale, complexity and configuration. These features
allow it to produce ultra-clean fuels at low cost from
heavy, acidic crudes that trade at significant discounts to
the lighter varieties. This implies that RIL, on average,
earns higher refining margins among its global peer group,
which allows it to operate its refinery at high utilisation
rates even during periods of weak demand amid economic
slowdown. The global macro-economic environments as
well as the oil demand seem to be recovering slowly. The
2013 demand growth, mainly driven by the non-OECD
markets, is expected to be around 0.8 MMBPD. RIL is
expected to be a major beneficiary of constructive refining
outlook over the medium term owing to its high exposure
to middle-distillates in its product slate. The global refining
cycle is also likely to benefit from delays in new projects
and continued mothballing of refineries in US/ Europe.
Moreover, with the planned pet-coke gasification unit,
RIL’s normalised refining margins would structurally move
up, as the syn-gas output from the pet-coke gasification
unit would replace the expensive LNG that it is currently
using for the utilities associated in the refinery.
RIL operates a fully integrated petrochemical business that
is also among the most diversified across Asia in terms
of product offerings. This effectively makes the business
less exposed over the long term in terms of feedstock cost
swings and severe margin compression in any particular
product chain. RIL is building capacities to capture demand
growth in Indian markets for polyesters, polymers and
elastomers; thus enhancing leading market positions in
core businesses. Over the next 3-4 years, RIL is making
large investments in its petrochemicals business to expand
the overall volumes by more than 60%. Moreover, the new
ROGC project will enhance the long-term competitiveness
of RIL’s petrochemical assets as it brings down the
Company’s positioning in the ethylene cost curve.
After the completion of all the petrochemical expansions
over the next three years, RIL is expected to be among
the top five petrochemical producers globally for most
of its products. The other element of RIL’s long-term
competitive edge stems from its presence in the Indian
market where petrochemical demand is growing rapidly,
propelled by strong economic growth. The domestic market
for polymers and polyester has been growing at around
8-10% on a Y-o-Y basis. Given India’s low per capita
polymers and polyester products consumption of around
5-6 kg and the economy’s resilience, this segment is likely
to experience demand increase.
Challenges, Risks and Concerns
RIL is focused on its new projects – establishment of pet-
coke gasification facility at Jamnagar and petrochemicals
facilities expansions across locations, including Jamnagar,
Dahej and Silvassa. The Company is confident to overcome
the challenge of timely completion of the upcoming cracker
and gasification projects and has industry leading track
record of implementing complex project on time.
Extreme weather conditions, an uneven sub-sea terrain,
strong submarine currents and a tight supply chain market
makes it difficult to develop R-series and Satellite fields in
KG-D6 block. RIL and BP together are required to deploy
advanced skills, processes and technologies to produce gas
from water depths of over 1,500 metres. RIL and BP are
confident that once the existing discoveries are developed,
these, along with KG-D6 explorations, will help enhance
domestic production significantly.
RIL’s refining and marketing business competes globally
with a number of large energy companies. Some of these
players are also producer of crude oil and are integrated
with their refining operations. The price of crude oil, key
feedstock for the refining business, gets impacted due to
Reliance Industries Limited
39
changes in demand-supply environment and overall macro-
economic conditions. The merchant nature of its refining
business means that RIL faces extensive competition in
international markets for the sale of key transportation
fuels. Any slowdowns in the global economy, resulting in
downturn for the refining industry may adversely affect
RIL’s financial performance. However, RIL benefits
from the quality of its assets, an unprecedented level of
operational integration as well as an experienced team that
has demonstrated its ability to deliver globally competitive
refining margins and consistently high operating rates.
RIL has been working for years to provide safe, reliable
and affordable petrochemical products to consumers,
mainly in India. The primary challenge facing the
industry is economically meeting the growing demand
for polymer and polyester products. And it is not just that
demand is increasing, but the product applications are
changing as well. Thus, RIL needs to find ways of using
its resources as efficiently as possible to meet the shifting
demand. Feedstock integration, lower operating costs
and high operating rates are critical for profitability in the
petrochemicals business. RIL has successfully maintained
high operating rates on the back of strong domestic demand
and a balanced portfolio of liquid and gas-based crackers.
RIL borrows funds in the domestic and international
markets to meet long-term and short-term funding
requirements. Funds are primarily raised for its operations
and new projects, therefore is subject to risks arising from
interest rate fluctuations since majority of RIL’s borrowing
are floating rate debt. Fluctuations in the exchange rate
between the US Dollar and the Indian rupee, may also
adversely affect the financial condition of the Company.
Internal Controls
RIL has a well-established internal control system, which
is commensurate with the size and nature of its business
and complexity of its operations. The Company strives
to maintain a dynamic system of internal controls and
procedures — including internal control over financial
reporting — designed to ensure reliable financial record-
keeping, transparent financial reporting and disclosure and
protection of physical and intellectual property.
The Company has an internal audit function which conducts
regular internal audits to examine the adequacy and
compliance with policies, plans and statutory requirements.
Audits are led by professional audit managers and
supported by experienced personnel drawn from across the
organisation. The management duly considers and takes
appropriate action on the recommendations made by the
statutory auditors, internal auditors and the independent
Audit Committee of the Board of Directors.
RIL has global IT and communication networks and
applications to support its business activities. The IT
security processes protecting these systems are in place
and are subject to assessment as part of the review of
internal control.
RIL’s manufacturing facilities endorse the highest health,
safety, security and environmental standards and maintain
operational integrity.
Major Subsidiaries
Retail Business
The Indian retail industry has experienced high growth over
the last decade with a noticeable shift towards organised
retailing formats. The industry is moving towards a modern
concept of retailing. The size of India's retail market was
estimated at $ 435 billion in 2010. Of this, $ 414 billion
(95% of the market) was traditional retail and $ 21 billion
(5% of the market) was organised retail. India's retail
market is expected to grow at 7% over the next 10 years,
reaching a size of $ 850 billion by 2020. Traditional retail
is expected to grow at 5% and reach a size of $ 650 billion,
while organised retail is expected to grow at 25% and reach
a size of $ 200 billion by 2020.
The growing middle class is an important factor
contributing to the growth of retail in India. By 2030, it is
estimated that 91 million households will be ‘middle class’,
up from 21 million today. Also by 2030, 570 million people
are expected to live in cities, nearly twice the population
of the United States today.
India’s retail industry was globally the fifth most attractive
market for investment in 2012. This growing popularity of
the country’s retail sector helped increase awareness for
quality brands and products. The country’s retail sector,
specially organised retail is growing rapidly, keeping pace
with the unprecedented rise in customer spending.
Even though the consumption story remains strong for
India over a longer term period, the economy is still
exposed to blips in the short term. There is a protracted
weakness in consumer’s discretionary spending due to
higher inflation, marginal real wage growth and low level
of macroeconomic activity. Private Final Consumption
Expenditure (PFCE) is at an eight-year low. Consumer
spending has been impacted as banks have exercised
caution in lending and have also tightened their rules on
issuance of credit cards.
40
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Despite the prevailing challenges in the macro-economic
environment, modern trade continues to grow. As economic
growth brings more of India’s people into the consuming
classes organised retail attracts more and more shoppers
into its open doors. By 2015, more than 300 million
shoppers are likely to patronise organised retail chains.
The government is also taking steps to bring more
investments in the industry which would not only create
more jobs, build ecosystem for farmers and small scale
producers and connect them to the benefits of modern
retail but also benefit millions of consumers with superior
experience and value.
Higher penetration of organised retail would enable better
realisation of price to farmers. Farmers will gain support
from the retailers with whom they will share a common
interest. This is expected to enhance productivity of
farming activity.
Organised retail’s attempts at creating a better retail
experience and bringing producers and customers closer
have yielded dividends and is evidenced by the rapid
acceptance of this new paradigm in retailing by the
customers and farmer community. The India growth story
is real and is here to stay.
Retail Business Update
The retail business continued its growth journey during the
year with new store launches as well as strong same store
sales growth. The business accomplished a milestone by
crossing revenue of ` 10,000 crore during the year. The
business grew by 42% to reach revenue of ` 10,800 crore
as against ` 7,599 crore registered in the previous financial
year. The business achieved cash breakeven with earnings
before depreciation, finance cost and tax expense (EBDIT)
of ` 78 crore.
The milestone of crossing ` 10,000 crore revenue and
reaching cash breakeven at EBDIT level is a significant
step in retail business’s journey towards attaining market
leadership by democratising access to all types of products
and services across all segments for the discerning Indian
customer. The format sectors collectively witnessed a two
year CAGR of 33% in revenues. By each format sector
the two year CAGR was as follows – Value Formats and
Others at 19%, Digital at 76%, Fashion and Lifestyle at
45%, Jewellery at 57% and Brands at 82%.
During the last financial year, retail business strengthened
its backend operations and store expansion capability by
successfully adding 184 stores across format sectors and
now operates a total of 1,466 stores spanning 129 cities
across India covering an area of over 9 million square feet.
The results of various efficiency improvement initiatives
taken under the leadership of best retail managerial talent
with an undistracted focus on providing superior customer
shopping experience has helped in attaining robust
growth across all format sectors during this year. The
retail business witnessed strong same store sales growth
ranging from 7% to 18% across various format sectors
over last year.
Reorganisation during the Year
During the year under review, the realignment and
consolidation of the various formats of retail businesses
being carried on by the subsidiary companies of Reliance
Retail Limited, was proposed, subject to necessary
approvals of the High Court of Judicature at Bombay.
The consolidation exercise and consequent reduction in the
number of companies will help in enhancing operational
flexibility, efficiencies and greater and optimal utilisation
of resources and also lead to significant reduction in
the multiplicity of legal and regulatory compliances.
Accordingly, many activities relating to organised retail
business shall be consolidated in a single company, namely,
Reliance Fresh Limited.
The section below gives an overview of the various format
sectors under the umbrella of retail business.
Value Formats and Others
During the year Value Formats opened 10 new stores,
further consolidating their position as the largest
grocery retailer in the country. In order to provide its
growing customer base with more choice, Value Formats
continued launching their private labels. Private label sales
represented significant contribution of overall FMCG
Food, Non-Food, Dairy & Staples sales and contributed
9% of revenues for Value Formats. With its philosophy of
inclusive growth, value formats have been forging strong
bonds with farmers and small manufacturers. As a part of
its ‘Farm to Fork approach’, Value Formats sourced most
of the produce in fruits and vegetables from the farmers.
Value Formats also undertook an ambitious program of
refreshing all ‘Reliance Fresh’ stores by adding larger
assortment to the store and making the customer journey
in the store more enjoyable.
To ensure that all associates can provide customer service
that stands true to its brand promise of ‘Aapki Khushi,
Hamari Khushi’ and to foster a culture of connectedness
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41
with customers, Value Formats have undertaken a
company-wide learning initiative named ‘WorkSmart’.
Over 10,000 store associates have completed 160,000
online learning modules during the year.
In order to cater to the requirements of Kirana, HORECA
(hotels, restaurants, caterers) and institutions with the best
product assortment ‘Reliance Market’ was launched in
2011 to cater to this wholesale opportunity.
Reliance Market is built on the principle of offering
inclusive growth. Reliance Market is positioned as a cash
and carry wholesale format, catering to the trading and
business community, to provide them with an alternative
channel for products that they need for their businesses,
to either re-sell (Kirana & Traders), use (small and
large companies) or re-process (hotels, restaurants,
canteens, caterers etc.). The format is a key enabler to
their entrepreneurial spirit and helps generate and sustain
employment thereby delivering on its brand promise of
“Aapka Market, Aapka Fayda”.
The first Reliance Market store launched in Ahmedabad
has completed one full year of operations. The store has
125,000 customers of which 24,000 are Kirana traders.
The learnings through the launch and operation of the
first store have provided significant inputs to strengthen
the processes and systems required for scaling up of the
format. Aggressive growth is planned for this format in
the current financial year.
Several productivity enhancement initiatives that were
commenced by value formats have resulted in improved
operating parameters for the stores. These measures are
endeavoured to make them India’s favourite retailer.
Retail business’s loyalty program, Reliance One, now
enjoys patronage of over 13 million customers contributing
nearly 65% to the sales during the year.
Digital Sector
Consumer durables, 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 ` 119,000 crore
in 2012. The current market is growing at over 10% and
is expected to touch ` 215,000 crore by 2016 (excluding
services). Penetration levels of CDIT products are low
when compared to other developing markets. As disposable
income increases, more people would adopt technology
products. New technology innovations and trends will
drive replacement as well as overall market.
Reliance Digital format aims at bringing solutions to the
customer as a retailer that doesn’t just sell products; it
offers solutions that enhance customers’ lives. It achieves
this through the total services concept and end-to-end
solutions selling aided by expert technology guides. To
service customers and delight them at every touch point,
Reliance Digital follows the ethos: “We bring technology
to life for you”.
In order to meet the requirements of consumers in a
connected world, ‘Reliance Digital Express’ format
was launched last year. The store provides cutting edge
technology solutions to the customers and helps them
connect with their world from anywhere at any time. The
store retails most compelling products carefully chosen
by technology experts and enthusiasts. The products
and services are retailed by hand-picked and trained,
knowledgeable and courteous store staff. The technology
concepts that are experienced by the customers in this
store are easily replicated at the customer’s home by ResQ
experts, thus helping the customers lead a totally connected
life, at all times.
Reconnect, the private label of Reliance Digital offers
products built on cutting edge technology in consumer
electronics and durables space contributed to 4% of the
overall revenues for Digital during the year.
Reliance Digital continues to strengthen ResQ, the
service arm of the Digital. It is a full-fledged service
organisation and is India’s first multi-product, multi-brand
and multi-location service network that provides solutions
encompassing end-to-end product life cycle requirements
for entire range of CDIT products and other value added
services.
During the year, Reliance Digital continued to grow its
store count by adding a total of 46 stores. Reliance Digital
now operates 139 stores which include iStores operating
under a partnership with Apple.
Reliance Digital is in process of expanding its overall retail
footprint through both Digital and Digital Express stores.
The business has seen robust growth last year based on
a well-defined and meticulously implemented key value
proposition anchored on ‘Solutions and Services’.
Fashion and Lifestyle
The apparel market accounts for 8% of India’s consumption
expenditure at around ` 200,000 crore and is expected to
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Fulfilling India’s Aspirations. With Innovation and Enterprise.
grow fourfold over the next decade while the footwear
industry is estimated to be about ` 25,000 crore and
growing at 13% annually. The industry has been relatively
more organised with modern trade accounting for 35%
market share.
In a period of 4 years, the business has seen rapid retail
development. The business launched its first ‘in-touch’
store this year. The new concept prominently displays its
various sub-brands and increases vibrant product offerings
thereby bringing the product to life in a much better way.
This growth will be driven not only by favourable
demographics but dramatic changes in people’s lifestyle
ranging from media exposure to cultural norms to increased
awareness. These lifestyle changes are driving consumers
to purchase more fashion driven products.
Given the diversity of Indian consumer preferences
and varied propensity to consume, there is a case for
segmenting consumption categories along a spectrum
ranging from ‘value based’ to ‘aspiration based’.
Retail business has been pursuing a strategy that would
capture the fashion trends through ‘tiering’ of formats
encompassing the entire consuming class. The business has
invested in building its design capability and strengthening
its sourcing including by going to most advantageous
markets around the world.
Reliance Trends has positioned itself as an affordable
fashion destination with an apt tag line of “Sirf Dikhne
Mein Mehenga”. Reliance Trends has achieved the
distinction of becoming a leading value fashion specialty
retailer. Staying true to its mission of democratising
fashion, Reliance Trends has been the first national apparel
specialty retailer to enter Tier I, II and III towns with
relevant offerings adapted for such markets. Reliance
Trends is well on its path to become the clothier of the
nation. Reliance Trends' growth is supported by a strong
portfolio of private label brands contributing over 60% of
the business.
Reliance Footprint, with over 50 national, international
and private label brands under one roof for footwear
and accessories consolidated its position as the largest
family footwear destination store in the country. Reliance
Footprint continued its exclusive distribution relationship
with Asics, a leading manufacturer of premium sports
shoes and apparels.
For customers who are looking for international fashion
and are keen to shop at world-class shopping environment,
such customers are being served by many of Company’s
partnership brands.
Marks and Spencer is an international brand that brings
in British heritage to Indian doorsteps. Retail chain under
the partnership with Marks and Spencer continues to grow
rapidly since the formation of the Joint Venture in 2008.
Vision Express is a brand in the retails business portfolio
which is brought to India through a Joint Venture with
Grand Vision, Europe’s largest optical chain with over
4,600 stores in over 40 countries. Vision Express caters
to customer needs by offering the benefits of surety,
affordability, quality, world-class designs and decades of
optical expertise. From trendy spectacles, comfortable
progressive lenses, to in-vogue international sunglasses
designs, Vision Express’s unique collections aspire to meet
the comfort quotient and eye care needs of every genre.
During the year Fashion & Lifestyle saw an addition of 95
stores taking the total count to 448 stores.
Jewellery
The jewellery industry was beset by increase in gold
and diamond prices last year, which affected jewellery
demand. Despite the adverse industry trends and weakened
consumer outlook, Reliance Jewels continued to expand
and added 14 stores during the course of the year to end at
51 stores making it one of the fastest growing retail chains
in the category. The business improved significantly and the
chain improved its profile in the minds of the consumers.
Several initiatives were undertaken to improve operational
efficiencies which reflected in significant improvement in
sales. However, there is still a huge opportunity for the
growth of modern jewellery retail in India, with young
consumers exhibiting greater interest in the category.
Based on the solid foundations that the business has been
built on, Reliance Jewels plans to grow its presence rapidly
in the market.
Brands
Reliance Brands has a portfolio of 40 brands that span
across the entire spectrum of luxury, bridge to luxury,
high-premium and high-street lifestyle space.
Reliance Brands has adopted a multi-pronged strategy for
growing its presence. For brands that are in its portfolio and
are launched, the focus has been to expand their presence
in newer markets while for the brands that were added to
the portfolio in recent times, the focus is to launch them.
To further grow its portfolio of brands, Reliance Brands
continue to partner with new and revered international
brands. During the last financial year, Reliance Brands
Reliance Industries Limited
43
has added five new partnerships to its portfolio of brands.
customers during the entire product lifecycle.
l Brooks Brothers – America’s oldest clothing retailer
with a heritage that goes all the way back to America’s
first president. Reliance Brands has formed a JV with
Brooks Brothers during the year.
l Dune – Premium women’s shoes and bags brand
from UK. Reliance Brands has a long term franchise
relationship with Dune.
l Superdry – “British Design & Spirit of Japan”. This
British brand has formed a long term distribution
relationship with Reliance Brands.
l Stuart Weitzman – For years Stuart Weitzman has been
a favourite with leading Hollywood actresses. Reliance
Brands has formed a long term distribution relationship
with Stuart Weitzman.
l REISS – Reliance Brands announced long term
Distribution relationship with REISS, UK-based
fashion brand.
During the year, Reliance Brands also launched its first
mono-brand online commerce website for the brand
STEVE MADDEN (stevemadden.in).
Reliance Brands has a network of 68 stores in 11 cities
and has made steady inroads into the premium consumer
base across the country.
Future Outlook
The Indian retail sector is expected to continue its growth
trajectory. Organised retailing is expected to grow at a
faster rate thereby garnering a larger share of the market
from the current 8% to around 20% by 2020 due to the
changing consumer preferences and other growth drivers
of organised retail in the country.
Retail business is in a unique position to capitalise on the
growing opportunity in India. It is undertaking expansion
of all existing formats to strengthen its leadership position
vis-à-vis competition. This can be achieved by growing
in existing markets and entering newer markets with the
intention of ‘Bettering the Lives of Indians Everyday’.
Digital Sector would be one of the growth verticals for the
coming year. Reliance Digital stores and Digital Express
stores would be rolled out in Tier-I and Tier-II cities and
would bring the connected world experience to consumers.
The focus would be to further strengthen ResQ, the service
arm of the Digital format. ResQ brings in strong service
orientation towards meeting the requirements of the
Retail business seeks to add alternative channels to reach
out to customers and has been intensely working on creating
a multi-channel model that would benefit customers by
offering them convenience of shopping anywhere, anytime
and at the best available value proposition.
All formats would be working relentlessly to further their
leadership positions in respective sectors making them
the favourite shopping destination for Indian customers.
Reliance Jio Infocomm
Operating Environment
From less than 5 million mobile users in 2001, India
has grown to more than 860 million mobile users
achieving more than 70% teledensity. The enormous
growth of the telecommunications in the country has
not been accompanied by a corresponding growth of
the broadband connections. Today, broadband in India
has only around 1% market penetration (15 million
broadband connections - excluding internet access by
wireless phone subscribers) compared to other European
and Asian countries. The broadband access to people can
truly transform lives of Indians by getting access to a
wide array of offerings, such as access to internet, email,
voice and video communications, news, productivity,
social networking, games, education, health and fitness,
finance, travel, e-commerce, e-governance and homeland
security services.
Taking cognisance of transformational potential of
converged services, the Government is working towards
putting in place a new policy framework for licensing,
spectrum management and migration to digital addressable
systems in broadcasting. The policy envisions providing
secure, reliable, affordable and high quality converged
telecommunication services anytime, anywhere under
one licence for accelerated inclusive socio-economic
development.
Reliance Jio Infocomm Limited
RIL’s subsidiary, Reliance Jio Infocomm Limited “RJIL”
(formerly Infotel Broadband Services Limited, which is
the only private player with Broadband Wireless Access
(BWA) spectrum in all the 22 telecom circles of India),
plans to provide reliable fast internet connectivity through
the 20 MHz, contiguous, pan-India BWA spectrum. In
addition to connectivity, RJIL also plans to enable end-
to-end solutions that address the entire value chain across
various digital services in key domains of national interest
such as, education, healthcare, security, financial services,
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Fulfilling India’s Aspirations. With Innovation and Enterprise.
government-citizen interfaces and entertainment. RJIL
aims to comprehensively address the requisite components
of the customer need, thereby fundamentally enhancing
the opportunity and experience of hundreds of millions of
Indian citizens and organisations.
RJIL plans to use TDD LTE technology for its country
wide next generation network deployment to provide
connectivity and related digital services to its customers.
In addition to LTE and its future versions, it 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. RJIL will focus on making available
all the components of the entire digital value chain. To
deliver such end-to-end solutions, RJIL has finalised key
agreements with its technology partners, service providers,
infrastructure providers, application partners, device
manufacturers and other strategic partners for the project.
It aims to create a digital eco system which can be used
to benefit the industry, the government and, above all, the
people of this country.
RJIL has also completed the detailed planning for Pan India
implementation of the infrastructure needed for the project.
RJIL continues to attract the best talent in the industry and
is focusing on building a high performance team. The key
leadership talent required for the setting up of the business
are in place in the respective geographies and are currently
leading the implementation phase.
India has a unique opportunity to leapfrog the world and
become the global leader in ubiquitous delivery of digital
content, applications and services. RJIL is confident that in
coming years, through its digital services Reliance would
fundamentally change the lives of hundreds of millions of
ordinary Indians.
Reliance Haryana SEZ Limited
The Model Economic Township (MET) has been envisioned
to be developed as an industrial infrastructure to support
economic growth in a public private partnership framework
with the Government of Haryana through HSIIDC Limited
(a Government of Haryana company). The Company is
engaged in the process of land consolidation with the
support of Government of Haryana.
The start-up phase of operationalisation of MET in
the district Jhajjar of Haryana commenced during the
year. Panasonic India Ltd, a leading Japanese consumer
electronics company have commenced production facility
in the industrial colony. Additionally, Denso Haryana Ltd,
a major Japanese auto component manufacturer is also
likely to commission their plant shortly.
Innovation, Research & Development
Research, technology and innovation continue to be RIL’s
major focus areas to create value and provide a competitive
edge to meet current and future needs.
Reliance Technology Group (RTG), the Company’s centre
of research and technology, contributes to RIL’s growth by
buying, customising and developing the right technology,
at the right cost and at the right time.
RTG consists of two types of technical teams:
(i) Technology groups focusing primarily on advanced
troubleshooting, support to capital projects, profit
and reliability improvements in RIL’s manufacturing
plants and
(ii) R&D groups concentrating mainly on new product,
process and catalyst development to support existing
business and creating breakthrough technologies for
new businesses.
In the refining area, RTG has expanded its horizon to
include molecule-based process optimisation. RTG
continues to pursue research in the areas of coking, hydro-
processing, Fluidized Catalytic Cracking (FCC) and crude
processing. It also provides advanced technical support
through computational fluid dynamics and many other
advanced simulation tools.
In FCC, an innovative technology helps generate extremely
high olefin yields from lower-value feedstock. Several
laboratory and pilot-scale studies have been completed
establishing yields to be expected at commercial scale.
Coking process research at RIL will get a major boost
as the state-of-the-art coker pilot plant will be fully
commissioned soon. This facility will be used to carry out
research projects for upgrading refinery residue streams
into value-added products. This facility will also be used
to support current operations.
The research facilities, being developed by the hydro-
processing research team, are expected to be fully
functional by the next financial year. With the Jamnagar
refining complex having substantial hydro-processing
capacity, this facility is expected to help improve
commercial hydro-processing performance.
The crude processing research team has made significant
progress by developing a new process for Total Acid
Reliance Industries Limited
45
Number (TAN) reduction in crude and kerosene products
which shall facilitate processing of more high-TAN crudes.
A new area of research actively being pursued is carbon
dioxide capture from the refinery flue gas. This work
supports RIL’s commitment to ameliorating long-term
environmental issues.
The modelling and simulation group is engaged in
resolving several refinery and petrochemicals reliability
issues using computational fluid dynamics and other
simulation tools. These issues include: improving run
length of coker furnaces and design changes for coker
drum feed entry and FCC cyclone.
The Company’s upgrade of refining LP models is set
to enable more sophisticated optimizations in crude
selection. Moreover, new analytical techniques are being
developed and deployed for rapid crude characterization
and molecule-based modelling and optimization of intra-
refinery streams and processes. Separation methods are
continuously being enhanced.
In the petrochemicals area, RTG is providing technology
support to olefin crackers, polymers, fibre intermediates,
linear alkyl benzene and polyester. The focus areas
include efficient asset utilization, development of specialty
product grades, materials and catalysts, value addition to
by-product streams and leveraging opportunities at the
chemicals and oil interface.
Several projects in the following areas have been completed
or are on-going across the refining and petrochemicals
businesses:
l
l
l
l
l
l
l
l
product improvement
process improvements
energy efficiency
enhancing product value to customer
application development
catalyst development
additive development
automation technology
l molecule management
As the sole industry partner in the New Millennium Indian
Technology Leadership Initiative project on indigenous
“Polymer Electrolyte Membrane” (PEM) Fuel Cell
technology development, RIL is playing a major role in
scale-up trials of PEM fuel cells after a recently successful
lab-scale demonstration of PEM fuel cell technology.
Collaborative research projects with IIP Dehradun, IIT
Mumbai, PDPU Ahmedabad, Delhi University, Himachal
Pradesh Horticultural University and others are also
being undertaken to jointly develop new breakthrough
technologies and to establish synergistic collaboration
with academia and industrial technology. RIL has joined
an industry program at Tulsa University which will provide
valuable information for enhancing and trouble-shooting
process operations.
Additional highlights of RTG include:
l
l
Scientists and engineers at RTG have been invited
as speakers/presenters at various prestigious
conferences
Engineers at RTG have been invited as Advisory
Committee Members in the Department of Scientific
and Industrial Research New Delhi (DSIR), Govt. of
India programs
Innovation
Innovation is not new to Reliance, thanks to innovation
that the company has always stayed ahead of the curve.
However, RIL plans to actively nurture innovation across
the organisation in order to achieve its aim of remaining
as one of the most innovative companies in the world.
The Reliance Innovation Council – comprising Nobel
Laureates, global strategists and thought leaders met
in February 2013, to give direction to RIL’s innovation
agenda. The meeting was a great success and many path-
breaking ideas emerged from this eminent setting.
The Reliance Innovation Leadership Centre has led various
programmes to integrate innovation ‘as a way of life’ within
the organisation. Under one such programme, potential
innovation leaders are being taken through a systematic
and methodical programme on innovation. Each of them
will implement a substantial innovation project and through
the project they will not only generate exponential value
for RIL but also help institutionalize innovation within
the organization.
The Leading Expert Access Programme (LEAP) is
inspiring RIL employees by providing a platform for
interaction with global iconic achievers and distinguished
personalities.
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Fulfilling India’s Aspirations. With Innovation and Enterprise.
Innovation is incomplete if it does not lead to new
businesses. Some game changing technologies in the
energy space are being incubated which would lead to
innovation led growth for Reliance in the future.
Clean Development Mechanism
The Company has built in-house capacity to develop
Clean Development Mechanism (CDM) projects and
obtain the registration and issuance of the same in the
form of Certified Emission Reductions (CERs) from the
United Nations Framework Convention Climate Change
(UNFCCC).
In FY 2012-13, three of our CDM projects got total 34,692
CERs issued from UNFCCC. Audit of one more project is
completed and request for issuance of 86,912 CERs will
shortly be submitted to UNFCCC.
Human Resources Development
RIL’s talent base, as on March 31, 2013 stands at 23,519.
This year, the Company has strengthened last year’s HR
focus to align the business functionally and build people’s
capability.
Redefining the contours for a futuristic HR Organisation
With the Vision to be an “Employer of Choice” in its
operating geographies, RIL’s HR fraternity undertook
several projects in FY 2012-13 to create building blocks
for a world-class organisation. Some of these initiatives are:
l
Creating a world-class HR academy to develop the
existing HR team
l
l
l
l
Hiring high-calibre professionals to augment the
current team to lead the HR for the future, by building
the grounds-up cadres, as well as, induction of the
leaders in senior leadership positions
A robust HCM System roll-out to support the global,
multi-geography and multi-business organisation
Review and revision of all the HR policies and
programmes
Unveiling RIL’s “Employee Value Proposition”
(EVP) to set a foundational block for people
management practices
All the changes that were being made needed considerable
efforts in “change management”. Reliance ensured that
most of the leaders are trained on change management.
The internal corporate communications tools including
newsletters, town hall meetings, webinars etc. were also
used to train leaders on change management.
While the previous year focused on establishing the Centres
of Excellence for Talent Acquisition, Talent Management,
Learning and Development, Compensation & Benefits
and Industrial Relations, the current year was focused
on strengthening the same through influx of some high
calibre professionals externally and internally. More than
100 new HR professionals, including Senior Management
personnel, were added to the HR team across the group
and across several locations.
Building Employee Skills and Capabilities for the future
RIL believes in the mantra of lifelong learning. The L&D
team focused on developing and operationalizing Focused
Learning Academies. The FC&A Academy was launched
last year. This year saw the launching of new Academies
in the areas of HR, Civil, Mechanical, Electrical,
Instrumentation, Health, Safety & Environment (HSE),
Fire, Operations, Technology, Procurement & Contracting,
Leadership and Managerial Skills Development.
RIL partnered with leading Institutions and professional
bodies across the world in pursuit of knowledge building
so as to bring in world class experience and expertise.
The primary focus of all these academies is to ensure that
knowledge, skills and capabilities are developed in-house
thus helping the organisation to scale up its requirements
for the future.
The Reliance Accelerated Leadership Program (RALP)
which was institutionalised two years ago continued to
be a centre piece of our future leadership pipeline with
25 talented professionals adding on to the band wagon
of growth and history. The focus of RALP which was
restricted to only 4 functions (namely IT, HR, F&A and
P&C) till last year, has now been expanded to include
businesses like Refining & Marketing, Exploration &
Production, Petrochemicals and Telecom as well.
During the current financial year, RIL hired 75 management
graduates and 436 graduate engineers from the country’s
leading institutes as a part of its campus recruitment
initiative. The numbers are only likely to increase in future.
2,129,770 man-days of learning were delivered in the
current year. Our quest is to create a world-class platform
for the learning of all employees.
Six-Sigma initiatives continued to reap rich dividends
during the year. RIL’s Six Sigma process, linked to the
Company’s Vision, Mission & Business Strategy, is a
management-driven initiative to improve the organisation’s
performance.
Reliance Industries Limited
47
FY 2012-13 saw 173 employees undergo green belt six
sigma training and 11 employees reach Reliance Certified
Black Belt programme’s completion stage.
The FY 2012-13, saw 28 certified Six Sigma Black Belts
working in all manufacturing sites and Reliance Corporate
Park and 314 black belts and green belts involved in
improvement projects. The year saw the completion of 68
Six Sigma projects in which 408 supervisory personnel
were engaged resulting in annualised saving of ` 112 crore.
Awards and Recognition
Some of the major awards and recognitions conferred to
RIL are:
Leadership
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“International Refiner of the Year – 2013” Award
at HART Energy’s 27th World Refining & Fuel
Conference held at San Antonio, Texas, USA
“Mark of Excellence Award” (Hazira Manufacturing
Division) at the IST Convention on Leadership
Excellence organised by India’s Greatest Corporate
Leaders forum powered by DNA
Corporate Rankings and Ratings
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RIL was awarded Application Level A+ certification
by Global Reporting Initiative (GRI) for its FY 2011-
12 Sustainability Report – “Partnering India’s New
Future. Sustainably”
Appreciation plaque by ASSOCHAM in recognition
for the Company’s outstanding CSR activities in
2012
Quality
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Three Star (Highest award) at International
Convention on Quality Control Circle at Kuala
Lumpur, Malaysia (Dahej Manufacturing Division
and Hazira Manufacturing Division)
Golden Peacock National Quality Award 2012
(Nagothane Manufacturing Division)
IMC Ramkrishna Bajaj National Quality Award
under the manufacturing category for the year 2012
ASQ’s International Team Excellence Award
from American Society for Quality at the World
Conference on Quality & Improvement at USA
(Hazira Manufacturing Division)
Project
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Best viewer’s choice award (Dahej Manufacturing
division) for implementing six sigma project in
“Improving productivity of Gas Cracker Plant by
resolving propylene compressor discharge pressure
issue” from American Society for Quality at
California, USA
PLATINUM AWARD for the Six Sigma Project,
CBE-2012 from Concept Business Excellence
(Hazira Manufacturing Division)
The 1st Prize Trophy for Best Business Process
Excellence Program implemented in Manufacturing
Industries over 2 years from International Quality
Productivity Centre (IQPC) (Jamnagar Manufacturing
Division)
l WINNER for QualTech Prize for Improvement
(Manufacturing Process Excellence) for the project
“Significant Yield improvement ex DTA FCC” from
QIMPRO (Jamnagar Manufacturing Division)
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CII-Six Sigma National Award for 2012 (Vadodara
Manufacturing Division)
Health, Safety and Environment
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ICC Award for Management of Health Safety and
Environment from Indian Chemical Council
The Sword of Honour from British Safety Council,
U.K, for Excellence in Health, Safety and Welfare
(Barabanki Manufacturing Division)
The Golden Peacock Environment Management
Award for 2012 (Dahej Manufacturing Division)
‘Golden Peacock Occupational Health & Safety
Award’ for 2012 (Hazira Manufacturing Division)
The BSC – Sword of Honour in Occupational Health
& Safety Management by British Safety Council
(BSC), UK (Jamnagar Manufacturing Division)
The BSC - Globe of Honour in Environmental
Management System by British Safety Council, UK
(Jamnagar Manufacturing Division)
The CII - Environment Best Practices Award 2012,
rated as “Most Innovative Environmental Project”
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Fulfilling India’s Aspirations. With Innovation and Enterprise.
for “Reduction of Colour in Acrylonitrile Effluent”
(Vadodara Manufacturing Division)
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in Petrochemicals Sector (Vadodara Manufacturing
Division)
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International Safety Award by British Safety Council,
UK (Barabanki Manufacturing Division)
State-level ‘Dr. R.J.Rathi Award’ for Green Initiatives
in Industries in Maharashtra for 2012 from Mahratta
Chamber of Commerce, Industries & Agriculture,
Pune (Nagothane Manufacturing Division)
The “International Safety Award” with distinction
for 2012 from British Safety Council (KG-D6
operations)
The Safety Innovation Award 2012 from Institution
of Engineers, New Delhi for the third consecutive
year in a row (Jamnagar Manufacturing Division)
Energy & Water Conservation / Efficiency
Jawaharlal Nehru Centenary Award from the Ministry
of Petroleum & Natural Gas for being among the
three refineries which have achieved the lowest
specific energy consumption among Indian refineries
(Jamnagar Manufacturing Division - DTA refinery)
Indian Chemical Council Award for Excellence in
Energy Conservation and Management for 2011
(Hazira Manufacturing Division)
Excellent Energy Efficient Unit Award by CII for 9th
consecutive time (Hazira Manufacturing Division)
The National Award for Excellence in Energy
Management - 2012 from CII and declared
as Excellent Energy Efficient Unit (Jamnagar
Manufacturing Division - DTA Refinery)
Innovative Project award from Bureau of Energy
Efficiency (BEE), Ministry of Power, Government
of India (Jamnagar Manufacturing Division)
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Adjudged by CII as a National Energy-efficient
Unit in India (Reliance Corporate IT Park Ltd, Navi
Mumbai)
Technology, Patents, R & D and Innovation
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Shri Ratilal Tribhovandas Nanavati Award for
outstanding work in Research & Development
for 2009-11 by The Southern Gujarat Chamber of
Commerce & Industries, Surat (Hazira Manufacturing
Division –RTG)
The BEST PRAX PRIZE FOR INNOVATION
– 2012 for the project − Reduction in packaging
consumables (paper-based) in Polyester POY plant
by QIMPRO (Hazira Manufacturing Division)
Corporate Social Responsibility
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Trophy for its work done under the National
AIDS Control Program phase-III from Population
Foundation of India (Hazira Manufacturing Division-
Reliance Community Care Centre)
The Golden Peacock Award - 2012 for Corporate
Social Responsibility by Institute of Directors (IOD)
(Vadodara Manufacturing Division)
Red Cross Gold Medal for the “Reliance Dhirubhai
Ambani Protsahan” Educational initiative from
Governor of Andhra Pradesh for FY 2011-12
Golden Peacock National Training Award – 2012
(Patalganga Manufacturing Division)
The National Award for Innovative Training
Practices for security training practices by Indian
Society for Training and Development (Nagothane
Manufacturing Division)
The Greentech Gold Award for HR Excellence (Dahej
Manufacturing Division)
Retail
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‘Most Promising Brand of the Year Award’ at North-
East Consumer Awards 2012 (Reliance Trends)
Sustainability
Federation of Gujarat Industries Award - 2011
for Excellence in Energy Conservation and Best
Utilization of Alternative Energy (Vadodara
Manufacturing Division)
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Hazira Manufacturing Division received the CII-
ITC Sustainability Awards 2012 and received the
coveted Certificate of Commendation for Significant
Achievement in the area of Sustainable Development.
Report on Corporate Social Responsibility
Reliance Industries Limited
49
RIL nurtures stakeholder relationships to understand
pertinent material issues, develop businesses, enhance
shareholder value and manage risks better. It is the
relationship, trust and commitment to stakeholder interest,
and the warm reciprocal of the same by the stakeholders,
that make RIL robust, resilient and sustainable.
Health, Safety & Environment (HSE)
Health
RIL focuses on achieving excellence in occupational and
personal health of employees at all manufacturing sites as
well as at its offices. With this objective, it has undertaken
‘Mission Wellness’ to improve and maintain employee
health.
Reliance has set up state-of-the-art Occupational Health
Centres (OHC) at all manufacturing, E&P locations and
major office complexes. Besides emergency medical
services, the OHCs also offer preventive, promotive and
curative health services to its employees. These OHCs are
equipped with state-of-the-art diagnostic and therapeutic
equipment and are manned by qualified occupational
health specialists. The OHC’s also carry out extensive
health, education and awareness sessions and diagnostic
camps. The hospitals have been upgraded to include on
line X-Ray reporting.
During FY 2012-13, RIL’s Multi Chemical Terminal at
Bhopal received BSC five-star rating for Occupational
Health & Safety by British Safety Council. Besides, the
pathology laboratories at Jamnagar, Nagothane, Vadodara
and Dahej Manufacturing Divisions were awarded with
National Accreditation Board for Testing & Calibration
Laboratories (NABL) certification. The Jamnagar
Township Hospital was accredited with NABH. Special
groups like Arogyam/ Swasthy Committee were formed
to take care of lifestyle diseases.
All Reliance employees undergo regular periodic medical
examinations. The medical check-up facility is also
extended to Contractor’s employees at the manufacturing
sites. The results are computerised and analysed to provide
targeted interventions at the individual and group levels.
An automated ‘High Alert’ system has been implemented
to prevent any medical complications. The employees are
also supported for hospitalisation by regular liaison and
cashless admission facilities in pan-India hospitals. The
de-addiction activity is effectively implemented at most
of the RIL locations as Quit Tobacco drive.
An ambitious program ‘Work Life Project’ has been
undertaken across the manufacturing sites including the
Polyester sites, with focus on Emotional Health as a
part of Resilience Management. Missionaries are trained
to increase awareness regarding emotional health &
psychological well-being.
RIL’s Community Medical Centres, established near most
of its manufacturing divisions, provide comprehensive
healthcare services to local villagers.
Safety
RIL is committed to provide a safe workplace to its
employees and contractors; and safety to the communities
where it operates. In pursuit of the same, RIL continues to
work towards its aim of zero injuries and zero incidents.
As Reliance forays into newer segments of businesses,
institutionalising HSE Management systems across all
business segments is vital. During the year, RIL worked
towards “One Reliance” standardization of systems and
processes under its Business Transformation initiative. IT
enablement of processes is underway, which is a big leap
towards strengthening of HSE governance and compliance
systems across all businesses and functions.
While establishing HSE standards in steady state
operations, RIL targeted its major focus areas to include
process safety and construction safety for its large scale
upcoming projects. Efforts are being made to embed
the RIL HSE standards and processes from project
conceptualisation stage onwards.
RIL believes that continuous learning and upgrading of
systems and processes are indispensable as we move ahead
with our vision of achieving best-in-industry status with
respect to safety systems and culture. Benchmarking of
Process Safety Management was undertaken during the
year across six petrochemical manufacturing sites vis-à-vis
the global best-practices to identify potential improvement
areas in capacities and systems.
RIL recognizes that personnel competency is a key area to
ensure safe and efficient operations. While taking a step in
this direction, a learning academy dedicated to HSE was
established. HSE assurance systems and processes were
reviewed to ensure their robustness and alignment to the
designed intent.
RIL also successfully completed Responsible Care®
surveillance audit this year after being certified for RC
14001 compliance last year. Being a Responsible Care
signatory, focus is being laid upon safety of the community
through improvement in the safety systems beyond
operational boundaries.
RIL engaged world renowned third party resource for
assessing the Crisis Management and Emergency Response
system and provide guidance for improvement. In order
to strengthen Responsible Care Management System,
the efforts were directed towards establishing a Product
Stewardship initiative with an aim to institutionalize the
same in the coming year.
50
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Environment
RIL is committed to ensure environmentally sustainable
and responsible operations to achieve highest standards
of environmental excellence. The manufacturing
divisions have not only instituted internationally
accepted Environmental Management System based on
ISO-14001, but the major sites are also integrated with
Quality Management and Occupational Health & Safety
Management Systems. At Hazira, the Energy Management
System has been certified with ISO 50001:2011
RIL is in constant endeavour to be fully compliant
with all applicable environmental regulations. In order
to mitigate the potential environmental impacts on
society, risk analysis of all new proposed projects are
done and necessary measures are being incorporated to
mitigate adverse environmental impacts prior to project
commissioning. RIL follows the GRI G3.1 Guidelines
(including GRI 3.1 Oil & Gas Sector Supplement) for
reporting environmental performance indicators.
RIL follows a comprehensive method for the preparation
of Environmental Impact Assessment (EIA) studies,
for new and expanding projects. The focus is on an
integrated approach for conservation of natural resources
while protecting the environment. EIA studies consist of
terrestrial EIA, Marine EIA, Satellite imagery based land
use, land cover and morphological assessment including
the dynamic modelling methods.
In continuation of efforts to improve environmental
footprint, during this financial year, a continuous (Real
time) ambient air monitoring station was instituted
at Jamnagar for major air pollutants. The three-tier
environment audit system has also been put in place.
Trained and qualified internal environment auditors
perform First Party audits followed by Inter-Site audit
teams carrying out the Second Party audit for each of the
instituted Group standards. The third tier audit includes
high level environmental audit by external agencies such
as Gujarat Pollution Control Board (GPCB) recognized
auditors, British Safety Council, UK, etc.
With the conduct of environment five-star audit by BSC-
UK for RIL’s onshore and offshore Exploration and
Production operations at Gadimoga, all manufacturing
divisions/locations have been covered for this audit.
To reduce water dependence from natural sources, majority
of manufacturing divisions have taken up rain water
harvesting and engaged in maximum possible recycling
of treated wastewater. The upgradation of reuse of treated
water for horticulture and for dust suppression in coke area
at Jamnagar had reduced the desalt water demand.
A rain water harvesting project has been implemented at
a high school near Hazira to save 1000 m3 per annum of
rainwater from roof-top to benefit 1,450 school children
in a water starved area. At Patalganga, an organic waste
processor was installed to convert canteen waste into
organic manure.
Maintenance and performance improvements of the assets
are given a priority at RIL. In this context, all pollution
abatement facilities e.g. effluent treatment plants and
inside battery limit air emission control and waste disposal
facilities are maintained and operated in line with the
industrial best practices.
RIL efforts such as mangrove plantation and its maintenance
in the coastal areas, maintenance of green belts and gardens
in and around manufacturing units, vermi-compost of waste
and its use as manure etc. are imbibed in the culture of
sustaining the earth’s environment.
During the year, various manufacturing divisions and
business units observed World Environment Day, Earth
day, Water day, Ozone day etc. to propagate environmental
awareness among employees, communities and the schools
from neighbouring regions.
During FY 2012-13, RIL developed a group standard for
Corporate GHG accounting and reporting and trained
GHG champions across the manufacturing sites. This
concerted effort has provided tremendous opportunities
to continuously improve for better environmental
management.
Social Responsibility and Community Development
Education
To build a rich pool of human resources for India, RIL has
developed its own network of 12 schools in and around the
manufacturing units of the company at Jamnagar, Surat,
Vadodara, Patalganga, Nagothane and Nagpur benefitting
more than 15,000 students. These schools promote the
education among the children of the underprivileged
communities. The J .H. Ambani School at Patalganga
provided education to many 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 initiatives were taken
during the year. These included construction of a school
building at Meghpar village in Jamnagar; construction of
exclusive girls’ school at Motikhavdi; distribution of school
benches at Nagothane; providing school kits at Jamnagar;
distributing school bags to children at Nagpur and Silvassa
and providing notebooks and uniforms to schoolchildren of
Gadimoga and Bhairavapalem Panchayat. Also, financial
support was extended to ‘Bruhad Gujarat Sanskrit Parishad’
for imparting knowledge on Sanskrit, Karmakand and
Astrology.
Reliance Industries Limited
51
A school for the differently abled being run at Surat sought
to address the issues relating to learning disability and
dyslexia in children.
A district level quiz competition called “Reliance Dhirubhai
Ambani Quiz” is an annual affair in Andhra Pradesh.
Reliance Dhirubhai Ambani Protsahan Scheme
The Reliance Dhirubhai Ambani Protsahan Scheme
encourages the meritorious poor students to pursue
higher studies. The students securing high marks in SSC
examination are helped to get free education at the leading
residential colleges. The scheme, so far, has helped 1,134
students to continue higher education.
“Mumbai Indians Education for All” Initiative
Mumbai Indians has supported projects that have impacted
more than 10,000 children in 3 years. Mumbai Indians
supported projects ranging from providing access to quality
education to the underprivileged children, supporting girl
child education, imparting life skills to the differently
abled and creating a level field by providing support
classes to the vulnerable children. Mumbai Indians also
raises goodwill and awareness for the partnering NGOs
through its website, player meets and media bytes. The IPL
matches provide children with an opportunity of seeing a
live cricket match amidst 30,000 cheering fans. Over 2500
kids from 5 NGOs have attended the home IPL matches
of Mumbai Indians since 2010. The children express
themselves freely while cheering for the players, learn team
work, exercise discipline while travelling and entering the
stadium and above all get an opportunity to enjoy their
right to entertainment. Some children are selected by the
TV crew to relay their experience to millions of viewers
across the world- something that thrills them and builds
their confidence. Mumbai Indians has raised over ` 17
million for 5 partner NGOs since 2010. An iconic blue
band was launched with Sachin Tendulkar’s signature
to raise awareness and funds. Till date, over 50,000 blue
bands have been sold.
Dhirubhai Ambani International School
Dhirubhai Ambani International School (DAIS), Mumbai,
established in 2003 as a world-class centre of learning, has
just crossed another milestone of completing 10 years. In
furtherance of its mission, in a short span of a decade, this
young institution has carved a niche for itself by emerging
as a school of the future, a school of choice, with its focus
on all-round development of children as well as their
academic excellence.
The Hindustan Times Top Schools Survey 2012 has ranked
Dhirubhai Ambani International School the No. 1 School
in Mumbai.
In 2012, the Education World in its Survey of India’s Most
Respected Schools, has ranked DAIS as No. 2 International
School in India. DAIS has been ranked No. 1 on Academic
Reputation, No. 1 on Individual Attention to Students,
No.1 on Co-curricular Education, No.1 on Competence
of Faculty and No.1 on Leadership / Management Quality.
Building on the schools excellent academic record and its
three streams - the ICSE, the IGCSE and the IB Diploma, its
students performed impressively in the 2012 examinations.
The IB Diploma 2012 batch earned higher average scores
as against the world average, placing DAIS among the top
ten schools of the world. Moreover, the school continued
its excellent performance on university placements, with
its students getting admission at renowned universities and
colleges of the UK, USA and so on.
This year, two DAIS students have received the prestigious
Manmohan Singh Undergraduate Scholarships to fund their
studies at the University of Cambridge.
DAIS’s students continued their excellent co-curricular
and extra-curricular activities, winning prizes at state,
national and international levels in basketball, football,
athletics, judo, karate, cricket, swimming, squash and other
sports. They have also won prizes at the World Robotics
Olympiad, the Commonwealth Essay Competition and the
National Science Fair. The DAIS students also received
the prestigious Hindustan Times Scholarship. The Annual
Dhirubhai Ambani International School Model United
Nations (DAIMUN) Conference 2012 deliberated on
‘Media and Democracy’.
With a view to making our society more equitable and
harmonious and to instil in children early on the attributes
of service orientation and care for others, the school
ensures that they actively participate in service to the local
community. Students from Class III onwards work with
old age homes, orphanages, underprivileged and mentally
challenged children, while senior students work with NGOs
like Advitya, Akanksha, Muktangan, Pratham, Aarambh
and Aseema. The Dhirubhai Ambani International School
Akanksha Centre, started in 2003, has till date educated 58
children from the low-income communities and in 2013,
for the first time, 8 children have appeared for their class
10 Board examinations from such communities.
The infrastructure work that students have undertaken
in two remote villages - Hassachipatti and Kumbharghar
– is almost complete. They are now focusing on
providing education to children and enhancing livelihood
opportunities for the villagers through microfinance. To
support the various service initiatives, students organized
‘Lakshya’ a fete and raised substantial funds for weaker
sections of the society.
52
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Community Healthcare
Mobile medical vans are used to provide curative
healthcare across RIL’s manufacturing sites. RIL provides
a 24X7 emergency ambulance services from the Himachal
borders to Hoshiarpur.
RIL focuses on raising awareness and providing treatment
for HIV/AIDS patients. A clinic ‘Hamrahi’, in Allahabad,
provides voluntary testing and counselling for HIV/
AIDS, primarily for truckers and nearby residents. The
Reliance HIV & TB Control Centre (NACO Designated
ART centre) at Hazira has served over 78,000 patients.
Among them, over 2,900 HIV-positive patients have
been enrolled for clinical monitoring. Over 525 patients,
including 52 in FY 2012-13, have received DOT therapy
for tuberculosis. The 32-bedded Community Care Centre
and Reliance AIDS Care Hospital at Hazira has served
more than 3,150 patients.
Further, the employees at RIL’s Exploration and Production
sites and the Reliance Ladies Club (an association of
spouses of RIL managerial employees) at Hazira have
undertaken initiatives “Chirudeepam” and “Project Hope”
respectively with an aim to support children affected
by AIDS and supplying them with nutritive kits every
month. Similarly, the Jamnagar manufacturing division
runs ‘Project Balkalyan’ to provide nutritional support to
HIV-infected children. All HIV positive children receive
nutritional kits when they visit the centre for monthly
follow-up. New projects include Khushi Clinic for HIV
prevention, treatment, care and counselling support to the
truckers and cleaners. RIL Jamnagar employees adopted
HIV-affected children under Project Gift to provide them
with nutritional kits during the year.
Blood donation camps were also organised in various
manufacturing divisions and locations. Over 1,400 blood
units were collected in the Reliance Corporate Park’s blood
donation camps.
During the year, all sites organised free medical camps and
provided free medicines to local rural and tribal patients.
Manufacturing sites provided emergency ambulance
support to roadside accident victims. Many manufacturing
sites have also conducted health awareness programs in
local schools and nearby small-scale Industries. Sishu-
Mangalam project at Jamnagar was undertaken during the
year to check malnutrition in the children of BPL families.
During the year, training for Anganwadi care takers and the
mothers were conducted at Gadimoga on various aspects
including women health, hygiene, breast cancer awareness,
nutrition requirement during pregnancy, child care, family
planning etc.
New Primary Health Centre (PHC) at Gadimoga has
been constructed with in-patient facilities which can
accommodate 30 beds and is equipped with an Operation
theatre, Labour room, Pathology laboratory, Doctor
consultation rooms, Rest rooms with elaborate medical
waste disposal facility.
Moreover, RIL operated two PHC sub-centres at
Bhairavapalem and Laxmipathipuram during the year.
RIL’s PHC at Dahej catered to community needs to 23
nearby villages under National Rural Health Mission
Program.
Dhirubhai Ambani Hospital
During the year, the Dhirubhai Ambani Hospital at
Lodhivali engaged significantly to improve the quality of
life in surrounding communities. It provided free medical
care to trauma victims of Road Traffic Accident (RTA),
till the patient is stabilised. The hospital also offered
subsidised medical facilities to economically weaker
persons of society in surrounding areas. It also conducted
medical diagnostic camps for local people. The hospital
also engaged in offering free consultation, counselling,
investigation and treatment to HIV/AIDS patients.
During the year, the Dhirubhai Ambani Hospital organised
18 camps for free medical consultation and diagnosis.
Around 1,900 patients attended these camps and were
provided with free medicines. Besides, free medical care
was also provided to 56 RTA patients during the year.
In February 2013, cataract surgery camp was conducted
with the help of Lions Club Mumbai and Khopoli, where
114 patients were operated for cataract. Free or highly
subsidised medical care and treatment was provided to
over 1,600 residents of surrounding villages.
In its ART Clinic, the Dhirubhai Ambani Hospital offered
free consultation, counselling, investigation and treatment
to more than 3800 HIV/AIDS patients.
Heritage Conservation
During the year, RIL was engaged in development work on
heritage conservation at Dwarka and Nathdwara. During
Navaratri Festival 2012, various organisations conducting
Navaratri Garba and dances were financially supported to
strengthen Gujarat’s cultural heritage. Durga Puja was also
enthusiastically celebrated at various manufacturing sites.
Promoting Sports and Sportsmen
With the aim of promoting Sports in India, RIL has instituted
the IMG Reliance ‘Scholarship for India Programme’.
These scholarships were awarded to 29 aspiring Indian
Sportspersons for full time training and coaching at one of
the best sports training facilities in the world – The IMG
Academies, Florida. These talented young sportspersons
are from the fields of Tennis, Basketball, and Football.
These young sportspersons underwent rigorous physical
and mental training, were given the best-in-class sport
education and were exposed to high quality competition.
Reliance Industries Limited
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Recipient of these scholarships brought several laurels to
the community. 14 of these scholars have become part of
under-17 Indian National football team and represented
India in AFC Cup in the FY 2012-13.
Additionally, IMG Reliance signed a 15-year agreement
with the AIFF, to improve, popularize and promote the
game of football throughout India, from the grassroots to
the professional level.
IMG Reliance is in a long term agreement with the
Basketball Federation of India (BFI) to create a new
professional basketball league and manage all aspects of
the commercial rights to the game in India.
IMG Reliance operates the Aircel Chennai Open, India
and South Asia’s only ATP World Tour event. Having
completed 18 years of the tournament, it is one of the
longest running ATP 250 events in the world. Through
the Aircel Chennai Open, India’s top tennis talent get the
chance to compete with the world’s best players on a world
class platform.
Promoting Indian/ Rural Art, IMG Reliance has initiated
Indian Textile Day at Lakme Fashion Week .The aim of
the show is to highlight textile traditions and heritage that
might be little known and undiscovered and help connect
emerging Indian textile designers to the mainstream and
modern fashion business, thereby creating a new creative
channel for their engagement and growth.
RIL during the year supported cricket, billiard, snooker,
football, chess, hockey, badminton, tennis, kabbadi etc. in
various towns and villages across the country. However,
the highlight of the year for the Company remains
organising the ‘Sabarmati Marathon’ in partnership with
the Ahmedabad Municipal Corporation.
Safety Initiatives for Community
As part of its unique safety initiative, RIL established an
air conditioned Truckers’ Safety Training Centre at Hazira.
This centre is fully equipped with audio-video equipment
to impart training to truck drivers on safety rules, efficient
driving techniques, understanding hazards associated with
various materials and emergency responses. More than
200,000 drivers have been trained through this initiative
since its inception in 2005. During the FY 2012-13, more
than 32,000 drivers were trained.
The manufacturing sites also provided fire tender services
to local villages.
Environment Initiatives for Community
The Hoshiarpur Manufacturing Division collaborated
with local industry and forest department under “Green
Hoshiarpur Project” to plant trees in the city.
Community Development
Reliance Rural Development Trust (RRDT)
RRDT during the year worked in 266 villages, constructing
173 Anganawadi buildings, 88 concrete roads and other
rural facilities.
RRDT has been able to reach to 5,923 villages till date
and has completed construction of Anganawadi buildings,
panchayat office buildings, community halls, concrete
roads, water storage tanks, check dams etc.
Community Development Initiatives
At Hazira, a 1,000 metre potable water pipeline was
replaced to fulfil water requirements of villagers at
Mora, Jamnagar. RIL took a major initiative to support
conservation of water by actively participating in the
dredging and deepening of Ranjit Sagar Dam. A mini solar
power plant provided solar-power connections at about 100
houses. A TV run on solar power at a Jamnagar Panchayat
helped bring the tribal-lot into main-stream India. A
community hall at Motikhavdi was also constructed to
meet the needs of the local villagers. A Jamatkhana, for the
fishermen community at Sikka was also constructed which
facilitated the villagers to organize the social, cultural and
religious gatherings on different occasions.
Disaster Relief
As part of the disaster relief measures, Reliance has been
supporting the Andhra Pradesh Government and District
Administration to provide immediate relief materials to
the victims of natural calamities and fire accidents. During
the FY 2012-13, RIL extended substantial financial grant
for rehabilitation of one such village affected in a major
fire accident.
Livelihood Support
RIL has always been at the forefront of implementing
initiatives especially for the welfare of rural women
and youth. Various skill upgradation programmes and
vocational training programmes have been imparted to
unemployed youth of surrounding villages to enhance
their employability.
Reliance Foundation
Reliance Foundation focuses on five core pillars - Rural
Transformation, Education, Health, Urban Renewal and
Arts, Culture & Heritage. The Foundation’s activities
covered over 2500 villages and various urban locations
in India and touched the lives of over 1,000,000
underprivileged during the year. An overview of the
Foundation’s programmes and impact is given below:
Reliance Foundation BIJ: To address the developmental
gap between rural Bharat and urban India, Reliance
Foundation BIJ programme was
the
Foundation. This programme aims to support small and
marginal farmers along the value chain through input
provision, technical, post-harvest as well as marketing
support. Till date, the Foundation has catalysed the
formation of farmers’ institutions across nearly 300
villages and has engaged with over 100,000 villagers
through the Reliance Foundation BIJ programme. Apart
initiated by
54
Fulfilling India’s Aspirations. With Innovation and Enterprise.
initiated
from working with the small and marginal farmers to
promote sustainable agriculture, the Foundation also
works towards enhancing the nutritional intake of over
4,000 rural households through Reliance Nutrition
Gardens.
Information Services: Recognising the need for timely,
accurate and value-added information, the Foundation
focuses on ‘Participatory Knowledge Management’. It
currently reaches to over 1400 villages through multiple
mediums including field demonstrations, local cable
TV programmes, advisories, bulletins and live phone-
in programmes. The information provided is based on
identified needs of the community and aims at capacity
building of farmers, fisher folk and livestock owners for
better livelihood security.
Community Services: To promote holistic development
of an entire community – be it a district or a village,
Reliance Foundation has
its Community
Services programme. To begin with, steps have been
taken in Shahdol district in Madhya Pradesh to address the
prioritised needs of the community through healthcare,
educational and livelihood training programmes. These
programmes directly reach out to over 5,000 villagers
from across 20 villages in Shahdol. The Foundation has
also impacted communities of over 25 villages in Gujarat
and Maharashtra by providing hospital and school
improvement materials, including infrastructural and
facility support.
Health Programmes: To provide quality primary and
preventive health care to the underprivileged, Reliance
Foundation launched the community health outreach
programme as part of its ‘Health for All’ initiative in
December 2012. Under this programme, mobile medical
units equipped with state-of-the-art technology for
biometric mapping and electronic health records were
started. Currently operating in Mumbai city, these units
cater to health needs of over 40,000 individuals.
On International Women’s Day 2013, Reliance Foundation
launched the menstrual hygiene programme in Kheda
district, Gujarat. Through this initiative, Reliance
Foundation aims to raise awareness regarding menstrual
hygiene by working with village based volunteers.
The Foundation is also addressing this critical gap by
introducing its affordable brand of high quality sanitary
napkins, ‘Meeta’. In the first phase, the Foundation will
reach out to 500,000 women in over 850 villages in Anand
and Kheda districts of Gujarat.
Arts, Culture & Heritage: Reliance Foundation is
re-imagining the ways to protect and promote India’s
priceless heritage to not only sustain but also to make art
and culture relevant to the younger generations. In the FY
2012-13, Reliance Foundation paid tribute to the great
artist of yesteryears during Abbaji concert, lent support to
great living treasures during the Elephanta Festival 2013,
connected with the youth through its collaboration with
A.R.Rehman to create a music video, ‘Infinite Love’ and
supported a research on India’s intangible culture. The
Foundation, in partnership with BP and in association
with Chhatrapati Shivaji Maharaj Vastu Sangrahalaya
(CSMVS), Mumbai and British Museum, brought
Mummy: The Inside Story to India. This unique exhibition
helped to increase the footfall of CSMVS, which received
over 450,000 visitors, including over 100,000 children
from across 300 schools.
Reliance Foundation Drishti: Reliance Foundation
works towards improving the quality of life of the
visually impaired through its Reliance Foundation Drishti
programme, which is run in association with the National
Association for the Blind (NAB). Having completed
over 11,000 corneal transplants across India, Reliance
Foundation Drishti has today become the largest cornea
transplant drive in India, supported by a corporate.
In 2012, Reliance Foundation Drishti launched India’s first
registered national Braille newspaper in Hindi, marking
an important milestone of this exemplary initiative. This
newspaper is made available to over 32,000 visually
impaired people, educating and empowering them with
information and knowledge.
H N Hospital: Reliance Foundation is revamping Sir H N
Hospital into a 19-storey, 800,000 square feet world-class
tertiary healthcare facility.
Dhirubhai Ambani Foundation
Dhirubhai Ambani Foundation (DAF) focuses on education
and public healthcare.
The Foundation’s "Dhirubhai Ambani Undergraduate
Scholarship Scheme" has been motivating students
excelling at the +2 level to pursue higher education.
The Foundation’s “Dhirubhai Ambani SSC Merit Reward
Scheme” has been offering one-time reward to the Board
toppers at Std X exams. Both the Schemes are implemented
with Maharashtra, Goa, Gujarat, Daman & Diu and
Dadra Nagar Haveli, on a district-wise basis for the State
Education Boards and state-wise basis for CBSE.
DAF has introduced a special scheme to enable physically
challenged students to study graduate courses. The top-
five physically challenged students from each state, as
certified by the State Boards, are eligible for scholarships
and rewards. This scheme has received enthusiastic support
at the country level.
During FY 2012-13, 149 of the 395 rewards and 128 of the
393 scholarships, conferred by DAF, went to the physically
challenged category. Till date, the schemes have benefited
9,665 students, of whom 1,893 are physically challenged.
Report on Corporate Governance
In accordance with Clause 49 of the Listing Agreement
with 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:
"Between my past, the present and the future, there is
one common factor: Relationship and Trust. This is the
foundation of our growth."
- Founder Chairman Shri Dhirubhai H. Ambani
At Reliance, Corporate Governance
is all about
maintaining a valuable relationship and trust with all the
stakeholders. At Reliance, we consider our stakeholders
as our partners in our success and we remain committed
to maximizing stakeholder value, be it shareholders,
employees, suppliers, customers, investors, communities
or policy makers. This emanates from our strong belief
that sound governance system based on relationship and
trust is integral to creating value on an overall basis. We
have a defined policy framework for ethical conduct of
businesses. We believe that any business conduct can
be ethical only when it rests on the nine core values of
Honesty, Integrity, Respect, Fairness, Purposefulness,
Trust, Responsibility, Citizenship and Courage.
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 essence of Corporate Governance lies in promoting
and maintaining integrity, transparency and accountability
in the higher echelons of management. 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
Reliance Industries Limited
55
the complex inter-relationship among the board of
directors, audit committee, accounting and 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 a 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 being followed worldwide. It is
our endeavor to achieve higher standards and provide
oversight and guidance to management in strategy
implementation, risk management and fulfilment 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, stakeholders’ interests
are taken into account before making any business
decision and Reliance has the distinction of consistently
rewarding its shareholders over 35 eventful years from
its first IPO. Since then Reliance has moved from one
big idea to another big idea and these milestones fuel our
relentless pursuit of ever-higher goals. We have grown
by a Compounded Annual Growth Rate (CAGR) of
Revenues 28%, 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 a consolidated present base of
around 3.2 million.
For decades Reliance is weaving its own growth story with
an eye on India’s industrial and economic development;
56
Fulfilling India’s Aspirations. With Innovation and Enterprise.
transforming the Indian economy with larger than life
projects and world class execution. Underlying this quest
is Reliance’s core belief in the motto – What is good for
India is good for Reliance.
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:
role
Independent Board with defined
and
responsibilities: A majority of the Board, 7 out of 13,
are independent directors. At Reliance, it is our belief
that an enlightened Board consciously creates a culture of
Board leadership to provide a long-term vision and policy
thinking in order to improve the quality of governance.
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 related party transactions, 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.
Ethics Policies: Reliance always strives to conduct its
business and develop its relationships in a manner that
is dignified, distinctive and responsible. At Reliance,
we adhere to ethical standards to ensure integrity,
in
transparency,
dealings with all stakeholders. In this direction, we have
adopted various codes and policies which act as enablers
to carry out our duties in an ethical way. Some of these
codes and policies are:
1. Code for Board of Directors and Board Committees.
independence and accountability
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.
5.
Policy document on Values and Commitments.
6. Manual on Corporate Governance.
7. Health, Safety and Environment (HSE) Policy.
8. Code of Financial Reporting, Disclosure &
Transparency.
9. Business Responsibility Policy Manual.
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, Member of
Prime Global, an association of Independent Accounting
Firms, the three leading audit firms, audit the accounts
of the Company. The Company has a Management
Audit Cell besides outside internal auditors that reviews
internal controls and operating systems and procedures.
A dedicated Legal Compliance Cell ensures that the
Company conducts its businesses 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.
Management Initiatives for Controls and Compliance:
sub-set of Business Transformation
initiative
A
undertaken by the management to support higher growth,
institutionalisation of best processes and new structures
for governance, is dedicated for management of risk,
controls and compliances across the organisation.
Reliance applies a common and systematic approach to
Reliance Industries Limited
57
our deeply-held belief in the principle of symbiotic
relationship with the local communities, recognising that
business ultimately has a purpose – to serve human needs.
Close and continuous interaction with the people and
communities in and around the manufacturing divisions
has been the key focus while striving to bring around
qualitative changes and supporting the underprivileged.
We provide community medical centres near most of our
manufacturing divisions. 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, safety,
education, infrastructure development (drinking water,
improving village infrastructure, heritage conservation,
construction of schools, village roads and drainages, etc.),
environment (effluent treatment, tree plantation, treatment
of hazardous waste, etc.), relief and assistance in the
event of a natural disaster, livelihood support, promoting
sports and sportsmen 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 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.
the management of risk, controls and compliances in an
integrated manner. Reliance is in the process of developing
a world-class integrated compliance framework to
provide reasonable assurance to the Management and the
Board of Directors regarding design and effectiveness of
internal control framework of the Company.
Framework has been documented to give a complete end
to end view of:
1.
2.
3.
the process
key control points
responsible organisations
The above information forms a basis for the management
to develop and maintain a transparent and effective
Internal Control system.
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:
l
The Company has a designated Lead Independent
Director with a defined role.
All securities related filings with Stock Exchanges
and SEBI are reviewed every quarter by the
Shareholders’/ Investors’ Grievance Committee of
Directors of the Company.
The Company has an independent Board Committee
for matters related to corporate governance and
stakeholders’ interface and nomination of Board
members.
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.
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l
Corporate Social Responsibility (CSR): Social welfare
and community development is at the core of 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. It revolves around
58
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Social, Environmental and Economic Responsibilities:
Reliance is committed to create value for the nation
and enhance the quality of life across the entire socio-
economic spectrum. To strengthen its commitment to
responsible business, the Board of the Company has
adopted Business Responsibility Policy Manual based
on the principles of National Voluntary Guidelines on
Social, Environmental and Economic Responsibilities of
Business as issued by the Ministry of Corporate Affairs,
Government of India. In sync with the same and Clause
55 of the Listing Agreement, a Business Responsibility
Report is attached forming part of the Annual Report. This
Report is in addition to RIL’s Sustainability Reporting in
accordance with Global Reporting Initiative (GRI).
importance of
Shareholders communications: The Board recognises
the
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 related to their shareholding 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 complaints and suggestions of its
shareholders are responded in a timely and consistent
manner. A Shareholders’ Referencer is provided with
this annual 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
to maintain optimum
is
combination of Executive and Non-Executive Directors.
The composition of the Board and category of Directors
is as follows:
Category
Promoter Director
Executive Directors
Name of Directors
Mukesh D. Ambani
Chairman and
Managing Director
Nikhil R. Meswani
Hital R. Meswani
P.M.S. Prasad
Pawan Kumar Kapil
Non-Executive Non-
Independent Director
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 at the time
of their first appointment to the Board and thereafter at
the first meeting of the Board in every financial year,
give a declaration that they meet with the criteria of
independence as provided under clause 49 of the listing
agreement.
No Director is related to any other Director on the
Board, except Shri Nikhil R. Meswani and Shri Hital R.
Meswani, who are related to each other as brothers.
Reliance Industries Limited
59
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.
Shri Mukesh D. Ambani is also steering Reliance’s
development
and
implementation of a pan-India organized retail network
spanning multiple formats and supply chain infrastructure.
infrastructure
facilities
of
Shri Mukesh D. Ambani is also setting up one of the
most complex 4G broadband wireless services offering
end to end solutions that address the entire value
chain across various digital services in key domains of
national interest such as Education, Healthcare, Security,
Financial Services, Government-Citizen interfaces and
Entertainment.
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:
l
In 2013, he was conferred ‘Enterprenuer of the
Decade’ by All India Management Association.
In 2010, awarded the Dean’s Medal by University
of Pennsylvania’s Eduardo Glandt, Dean of the
School of Engineering and Applied Science for his
leadership in the application of Engineering and
Technology.
In 2010, named among the most powerful people
in the world by Forbes magazine in its list of “68
people who matter most”.
In 2010, awarded the Indian Merchant’s Chamber
(IMC) ‘Juran Quality Medal 2009’.
In 2009, ranked the 5th best performing CEO in
the world by the Harvard Business Review in its
ranking of the top 50 global CEOs.
l
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l
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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.
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:
l
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.
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Directors’ Profile
A brief resume of all the Directors, nature of their
in specific functional areas and names
expertise
of companies
they hold directorships,
memberships/ chairmanships of Board Committees and
their shareholding in the Company are provided below:
in which
Shri Mukesh D. Ambani is a Chemical Engineer from
Institute of Chemical Technology, Mumbai (earlier
University Department of Chemical Technology,
University of Mumbai). He has pursued MBA from
Stanford University, USA.
Shri Mukesh D. Ambani has 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 fourteen million tonnes per year.
He is envisaging doubling these capacities to twenty
seven million tonnes per annum within a short span.
Working hands-on, Shri Mukesh D. Ambani led the
creation of the world’s largest grassroots petroleum
60
Fulfilling India’s Aspirations. With Innovation and Enterprise.
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.
Shri Mukesh D. Ambani is a member of the Indo-US
CEOs Forum, International Advisory Board of the
National Bank of Kuwait, International Advisory Council
of Bank of America, The Brookings, McKinsey &
Company, Council on Foreign Relations, Member of The
Business Council and 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 and Chairman of
Pandit Deendayal Petroleum University, Gandhinagar.
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,
Reliance Jio Infocomm Limited (Formerly known as
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 Committee of
Reliance Retail Limited.
He is Promoter of the Company and holds 36,15,846
shares of the Company in his name as on March 31, 2013.
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 such
as Corporate Affairs and Group’s taxation policies. 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, 2013.
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 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 Refining
Business and all Manufacturing, Research & Technology
and Project Execution 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.
Reliance Industries Limited
61
He is the recipient of The 2011 D. Robert Yarnall Award
from The Engineering Alumni Society of the University
of Pennsylvania.
led the commissioning of the manufacturing operations
in the Special Economic Zone (SEZ) at Jamnagar by
Reliance.
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, 2013.
Shri P.M.S. Prasad is a Whole-time Director designated
as Executive Director of the Company since August 21,
2009.
He has been with the Company for about 32 years. Over
the years, he has held various positions in the Fibres,
Petrochemicals, Refining & Marketing and Exploration
& Production Businesses of the Company.
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 the Health, Safety and Environment
Committee of the Company.
He is a Director of Reliance Commercial Dealers Limited
and some other Private Limited Companies. He is a
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, 2013.
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
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, 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 from 2001 to 2010. He is currently heading
Group Manufacturing Services (GMS) since 2011 and
working towards achieving excellence in the areas of
HSE, Technology, Reliability and Operations of all
Manufacturing Sites covering Refineries, Petrochemicals
and Polyester Plants of the Company. 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.
62
Fulfilling India’s Aspirations. With Innovation and Enterprise.
He is a member of the Health, Safety and Environment
Committee of the Company.
He holds 10,276 shares of the Company in his name as on
March 31, 2013.
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 1981, he was appointed as a Director of the Gujarat
Industrial Investment Corporation Limited (GIIC) and
continuing his services since last 32 years. He is also
Chairman of Audit Committee in GIIC Ltd.
He is a Director of Sintex Industries Ltd since 1994 and is
also a member of the Remuneration Committee of Sintex
Industries Ltd.
He holds 1,72,632 shares of the Company in his name as
on March 31, 2013.
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
58 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 Micro Inks Limited, the Indian
Merchant’s Chamber, Mumbai, JCB India Limited
and Jyoti CNC Automation Limited. He is the Lead
Independent Director of the Company. He is a member
of the Audit Committees of Micro Inks Limited and JCB
India Limited.
He is a 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
2011’. Last year was the sixth consecutive year in which
he has been so nominated.
He holds 3,20,000 shares of the Company in his name as
on March 31, 2013.
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 was the
Hon’ Counsel of Republic of Ethiopia.
He is the Chairman of Sai Service Station Limited and
Trivedi Consultants Private Limited. He is the Director
of The Supreme Industries Limited, Zodiac Clothing
Company Limited, The Seksaria Biswan Sugar Factory
Limited, New Consolidated Construction Company
Limited, Emami Limited and Metro Exporters Private
Limited.
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 Indian Merchants
Chamber, 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 Shareholders’/ Investors’ Grievance
Committee, the Remuneration Committee, the Corporate
Governance and Stakeholders’ Interface Committee and
the Employees’ Stock Compensation Committee of the
Company. 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, 2013.
Reliance Industries Limited
63
is Chairman of Audit Committees of Honda Siel Power
Products Limited and GKN Driveline (India) Limited,
Shareholders’/Investors’ Relations Committees of
Honda Siel Power Products Limited and DLF Limited,
Remuneration Committees of Honda Siel Power Products
Limited and GKN Driveline (India) Limited, Chairman’s
Executive Committee of GKN Driveline (India) Limited
and Corporate Governance Committee of DLF Limited.
He is a member of Audit Committees of Zenith Birla
(India) Limited and DLF Limited and Equity Issuance
Committee of DLF Limited.
He holds 13,544 shares of the Company in his name as on
March 31, 2013.
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;
(Insurance), Economic Affairs
Special Secretary
Department; and Joint Secretary,
the Ministry of
Petroleum, Chemicals and Fertilizers. He has served as
Director on the Board of Directors of many public sector
and private sector companies, including: GAIL (Founder
Director), IPCL, BPCL, CRL, BRPL, Life Insurance
Corporation of India, General Insurance Corporation,
Mangalore Refinery & Petrochemicals, Essar Shipping,
BSES, ICICI Prudential Life Insurance Co. and India
Advisory Board of BHP Billiton. He has considerable
management experience, particularly in the fields of
energy, petrochemicals, telecom and insurance.
He is a 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, 2013.
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,
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, for which he was described as a Model Manager
by the Board of Executive Directors of World Bank.
and
liberalisation
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
including
practices
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.
initiatives
In recognition of his services and significant contributions
in the field of Technology, Management and Industrial
Development,
Technological
Jawaharlal Nehru
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. ENERTIA Awards 2010 also 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.
He is the Chairman (Emeritus) of Jacobs H&G (P)
Limited and Chairman of GKN Driveline (India) Limited
and Drivetech Accessories Limited. He is also a Director
on the Boards of Honda Siel Power Products Limited,
Zenith Birla (India) Limited, 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
64
Fulfilling India’s Aspirations. With Innovation and Enterprise.
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 1977-2000 and at Monsanto Chemical Co.
from 1974-1977. 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 its Audit Committee
and Compensation Committee. He is a member of the
Board of Governors of IIT Delhi, member of the IIT
Council and a member of the Central Advisory Board of
Education of MHRD. He is a member of the Shareholders’/
Investors’ Grievance Committee of the Company and a
Member of the Investment Committee for Aditya Birla
Private Equity – Sunrise Fund. 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 several scientific journals.
He holds 2,300 shares of the Company in his name as on
March 31, 2013.
Prof. Dipak C. Jain has a M.S. in Mathematical
Statistics from Guwahati University, India and a Ph.D. in
Marketing from the University of Texas at Dellas, United
States of America. Prof. Jain is a distinguished teacher
and scholar. He had been Dean of the Kellogg School
of Management, Northwestern University, Evanston,
Illinois, United States of America from 2001 to 2009 and
an Associate Dean from 1996 to 2001. Currently, he is the
Dean of INSEAD, a leading business school with three
campuses at Fontainebleau (Paris), France, Singapore,
and Abu Dhabi. He has more than 30 years’ experience in
management 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, United States of America, Global Logistic
Properties, Singapore and Northern Trust Bank, United
States of America. 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, 2013.
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).
Thirty universities have honoured him with honorary
include Universities of London,
doctorates, which
Salford, Pretoria, Wisconsin and Delhi.
Reliance Industries Limited
65
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, IKP Knowledge Park, Piramal
Enterprises Limited
(formerly 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 and the
Remuneration Committee of the Company.
He is a member of the Audit Committees of Tata Motors
Limited, Hindustan Unilever Limited and Piramal
Enterprises Limited
(formerly 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, 2013.
3. Board Meetings, Board Committee Meetings
and Procedures
A.
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/
Executive Committee comprising senior management
personnel.
The Board has constituted seven standing Committees,
namely Audit Committee, Corporate Governance and
Stakeholders’ Interface Committee, Employees’ Stock
Compensation Committee, Finance Committee, Health,
Safety and Environment Committee, Remuneration
Committee and Shareholders’/Investors’ Grievance
Committee. The Board is authorised to constitute
additional functional Committees, from time to time,
depending on the business needs.
The internal guidelines of the Company for Board/Board
Committee meetings facilitate the decision making
process at the meetings of the Board/Board Committees
in an informed and efficient manner. The following sub-
sections deal with the practice of these guidelines at
Reliance.
B. Scheduling and selection of agenda items for
Board meetings
(i) Minimum five 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
to matters
advance, particularly with regard
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 subsidiary companies,
global business environment, all business areas
of the Company including business opportunities,
business strategy and the risk management practices
before
the quarterly/annual
financial results of the Company.
taking on record
The information required to be placed before the Board
includes:
l
l
l
l
l
General notices of interest of Directors.
Appointment, remuneration and resignation of
Directors.
Formation/Reconstitution of Board Committees.
Terms of reference of Board Committees.
The minutes of the Board meetings of unlisted
subsidiary companies.
66
Fulfilling India’s Aspirations. With Innovation and Enterprise.
l Minutes of meetings of Audit Committee and other
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
l
Committees of the Board.
Declaration of independent directors at the time of
appointment/annually.
Appointment or resignation of Chief Financial
Officer and Company Secretary.
Annual operating plans of businesses, capital
budgets and any updates.
Quarterly results for the Company and its operating
divisions or business segments.
Annual Financial results of the Company, Auditors’
Report and the Report of the Board of Directors.
Quarterly Secretarial Audit reports submitted by the
Secretarial Auditors.
Dividend declaration.
Quarterly summary of all long-term borrowings
made, bank guarantees issued, loans and investments
made.
Significant changes in accounting policies and
internal controls.
Takeover of a company or acquisition of a
controlling or substantial stake in another company.
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.
Quarterly details of foreign exchange exposures
and the steps taken by management to limit the risks
of adverse exchange rate movement, if material.
Appointment of and 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 investments, mergers and
acquisitions.
Details of any joint venture, acquisitions of
companies or collaboration agreement.
Status of business risk exposures, its management
and related action plans.
l Making of loans and investment of surplus funds.
l
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.
l
l
l
l
l
l
l
l
l
l
Show cause, demand, prosecution notices and
penalty notices which are materially important.
Fatal or serious accidents, dangerous occurrences,
any material effluent or pollution problems.
Any material default in financial obligations to and
by the Company, or substantial non-payment for
goods sold by the Company.
Any issue, which involves possible public or product
liability claims of substantial nature, including
any judgment or order, which may have passed
strictures on the conduct of the Company or taken
an adverse view regarding another enterprise that
can have negative implications on the Company.
Significant labour problems and their proposed
solutions. Any
in
Human Resources/Industrial Relations front like
implementation of Voluntary Retirement Scheme,
etc.
significant development
that
Transactions
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.
Reliance Industries Limited
67
D. Recording Minutes of proceedings at Board and
Committee meetings
The Company Secretary records the minutes of the
proceedings of each Board and Committee meeting. Draft
minutes are circulated to all the members of the Board/
Board Committee for their comments. The minutes
are entered in the Minutes Book within 30 days from
conclusion of the meeting.
E. Post meeting follow-up mechanism
The Guidelines for Board and Board Committee meetings
facilitate an effective post meeting follow-up, review and
reporting process for the decisions taken by the Board
and Board Committees thereof. The important decisions
taken at the Board/Board Committee meetings are
communicated to the departments/divisions concerned
promptly. Action taken report on the decisions/minutes
of the previous meeting(s) is placed at the immediately
succeeding meeting of the Board/Board Committee for
noting by the Board/Board Committee.
F. Compliance
The Company Secretary, while preparing the agenda,
notes on agenda, minutes, etc. of the meeting(s), is
responsible for and is required to ensure adherence
to all the applicable laws and regulations including
the Companies Act, 1956 read with the Rules issued
thereunder and the Secretarial Standards recommended
by the Institute of Company Secretaries of India.
4. Number of Board meetings held and the
dates on which held
Five Board meetings were held during the year, as against
the minimum requirement of four meetings.
The details of the Board meetings held are as under:
Date
Sl.
No.
Board
Strength
No. of
Directors
Present
1
2
3
4
April 20, 2012
July 20, 2012
October 15, 2012
January 18, 2013
5 March 29, 2013
13
13
13
13
13
10
13
13
12
13
2
Last AGM
No. of Other
1
Directorship(s)
Attendance at meetings
during 2012-13
5. Attendance of Directors at Board meetings, last Annual General Meeting (AGM) and number of
other Directorships and Chairmanships / Memberships of Committees of each Director in various
companies:
Name of the Director
Board
Meetings
5
5
5
5
4
5
5
5
5
4
5
4
4
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
No
Yes
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 Audit Committees and Shareholders’/Investors’
Grievance Committees in all public limited companies (excluding Reliance Industries Limited) have been considered.
Video/tele-conferencing facilities are used to facilitate directors travelling abroad or present at other locations to
participate in the meetings.
2
1
2
1
Nil
2
3
6
5
1
1
2
5
No. of Membership(s) /
Chairmanship(s) of Board
Committees in other
Companies
1 (as Chairman)
1 (as Chairman)
2 (including 1 as Chairman)
1
Nil
1 (as Chairman)
2
2
6 (including 4 as Chairman)
Nil
1
1
3
68
Fulfilling India’s Aspirations. With Innovation and Enterprise.
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
1. Yogendra P. Trivedi - Independent Director
(Chairman of the Committee)
2. Mahesh P. Modi - Independent Director
3. Dr. Raghunath A. Mashelkar - Independent Director
Shareholders’/ Investors’ Grievance Committee
1. Mansingh L. Bhakta - Independent Director
(Chairman of the Committee)a
2. Yogendra P. Trivedi - Independent Director
(Chairman of the Committee)b
3. Nikhil R. Meswani - Executive Director
4. Hital R. Meswani - Executive Director
5. Prof. Ashok Misra – Independent Directorc
Remuneration Committee
1. Mansingh L. Bhakta - Independent Director
(Chairman of the Committee)a
2. Yogendra P. Trivedi - Independent Director
(Chairman of the Committee)b
Corporate Governance and Stakeholders’
Interface Committee
1. Yogendra P. Trivedi - Independent Director
(Chairman of the Committee)
2. Mahesh P. Modi - Independent Director
3. Dr. Dharam Vir Kapur – Independent Director
3. Dr. Dharam Vir Kapur - Independent Director
4. Dr. Raghunath A. Mashelkar – Independent Directorc
Employees’ Stock Compensation Committee
Health, Safety & Environment Committee
1. Yogendra P. Trivedi - Independent Director
1. Hital R. Meswani - Executive Director
(Chairman of the Committee)
(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
4. Prof. Dipak C. Jain - Independent Director
3. P.M.S. Prasad - Executive Director
4. 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
a. up to July 20, 2012; b. Chairman w.e.f. July 20, 2012 and c. w.e.f. July 20, 2012
Shri K. Sethuraman, Group Company Secretary and Chief Compliance Officer is the Secretary of all Board Committees.
Reliance Industries Limited
69
Meetings of the Board Level Committees held during the year and attendance of Directors:
d
l
e
h
s
g
n
i
t
e
e
M
5
4
1
1
1
4
7
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
i
n
a
b
m
A
.
D
h
s
e
k
u
M
i
n
a
w
s
e
M
.
R
l
i
h
k
i
N
i
n
a
w
s
e
M
.
R
l
a
t
i
H
d
a
s
a
r
P
.
.
S
M
P
.
.
L
h
g
n
i
s
n
a
M
a
t
k
a
h
B
.
P
a
r
d
n
e
g
o
Y
i
d
e
v
i
r
T
l
i
p
a
K
.
K
P
.
NA
NA
NA
NA
NA
NA
NA
4
4
NA
NA
1*
NA
NA
NA
NA
NA
1*
NA
NA
NA
NA
NA
NA
5
4
1
1
r
i
V
m
a
r
a
h
D
.
r
D
r
u
p
a
K
NA
.
i
d
o
M
P
h
s
e
h
a
M
4
a
r
s
i
M
k
o
h
s
A
.
f
o
r
P
n
i
a
J
.
C
k
a
p
i
D
.
f
o
r
P
.
A
h
t
a
n
u
h
g
a
R
.
r
D
r
a
k
l
e
h
s
a
M
NA
NA
3
NA
NA
3**
NA
NA
1
1
NA
NA
NA 0***
0
NA
NA
NA
1
NA
NA
NA
NA
NA
1
NA
1
NA
1
NA
NA
NA
7
7
4
7
3
3
NA
NA
4
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA – Not a member of the Committee
* Up to July 20, 2012. One meeting of each of the Committee held during his tenure.
** Appointed as a Member w.e.f. July 20, 2012. Three meetings held during his tenure.
*** Appointed as a Member w.e.f. July 20, 2012. No meeting 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.
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.
70
Fulfilling India’s Aspirations. With Innovation and Enterprise.
2
3
4
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
2
3
4
5
6
Oversight of the Company’s financial reporting
process and
its financial
the disclosure of
information to ensure that the financial statements
are correct, sufficient and credible.
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.
Approval of payment
to Statutory Auditors
including Cost Auditors for any other services
rendered by them.
Reviewing with the management, the annual
financial statements before submission to the Board
for approval, with particular reference to:
l 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.
l
l
l 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.
Disclosure of related party transactions.
Qualifications in draft audit report.
l
l
l
Reviewing with the management, the quarterly
financial statements before submission to the Board
for approval.
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 to the Board to take up steps in
this matter.
Reviewing with the management, the performance
of Statutory Auditors including Cost Auditors and
Internal Auditors, adequacy of internal control
systems.
Reviewing the adequacy of internal audit function,
if any, including the structure of the internal audit
department, staffing and seniority of the official
reporting structure,
the department,
heading
coverage and frequency of internal audit.
Discussion with Internal Auditors, any significant
findings and follow up thereon.
7
8
9
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 and
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:
l
l
The management discussion and analysis of
financial condition and results of operations;
significant
Statement of
(as defined by
transactions
Committee), submitted by management;
l Management letters/letters of internal control
weaknesses issued by the Statutory Auditors;
Internal audit reports relating to internal
control weaknesses; and
related party
the Audit
l
Reliance Industries Limited
71
Selection of Independent Directors:
to
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
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
2
3
4
5
6
7
8
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
the
employee shall exercise the vested options in the
event of termination or resignation of an employee.
time period within which
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, vesting and exercise of options in case of
employees who are on long leave.
The procedure for cashless exercise of options, if
any.
(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
l
The appointment, removal and terms of
remuneration of Internal Auditors.
17 Reviewing the financial statements and in particular
the investments made by the unlisted subsidiaries of
the Company.
General
Secretarial
Department
Executives of Accounts Department, Finance
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 in
XBRL mode for the financial year ended March
31, 2012 was February 28, 2013 and the Cost Audit
Reports were filed by the Lead Cost Auditor on
January 17, 2013. The due date for filing the Cost
Audit Reports for the financial year ended March
31, 2013 is September 30, 2013.
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
2
3
4
5
6
7
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.
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.
Recommendation for nomination of Directors on
the Board.
72
Fulfilling India’s Aspirations. With Innovation and Enterprise.
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.
Review
management.
banking
arrangements
and
cash
Exercise all powers to borrow moneys (otherwise
than by issue of debentures) within the limits
approved by the Board and taking necessary actions
connected
including refinancing for
therewith
optimisation of borrowing costs.
Giving of guarantees/issuing letters of comfort/
providing securities within the limits approved by
the Board.
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.
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.
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.
2
3
4
5
6
7
8
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 during 2012-13:
Name of the Director
Salary
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
Perquisites
and
allowances
0.60
1.45
1.45
1.33
0.75
Retiral
benefits
Commission
payable
0.89
0.24
0.24
0.16
0.09
9.35
8.32
8.32
-
-
Performance
Linked
Incentive*
-
-
-
3.12
0.65
Total
15.00
11.05
11.05
5.47
1.99
* Performance Linked Incentive for financial year 2011-12 was paid during financial year 2012-13
` in crore
Stock
Options
granted
Nil
Nil
Nil
Nil
Nil
Reliance Industries Limited
73
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:
Type of Complaints
Number of
Complaints
275
2265
144
142
2826
Non-Receipt of Annual Reports
Non-Receipt of Dividend Warrants
Non-Receipt of Interest/ Redemption
Warrants
Non-Receipt of Certificates
Total
As on March 31, 2013, 10 complaints were outstanding
which were resolved by April 4, 2013.
B. Functional Committees
The Board is authorised to constitute one or more
Functional Committees delegating thereto powers and
duties with respect to specific purposes. Meetings of such
Committees are held as and when the need arises. Time
schedule for holding the meetings of such Functional
Committees are finalised in consultation with the
Committee Members.
Procedure at Committee Meetings
The Company’s guidelines relating to Board meetings
are applicable to Committee meetings as far as may be
practicable. Each Committee has the authority to engage
outside experts, advisors and counsels to the extent it
considers appropriate to assist in its work. Minutes of the
proceedings of the Committee meetings are placed before
the Board meetings for perusal and noting.
7. 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 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
The Chairman and Managing Director’s compensation
has been set at ` 15 crore as against ` 38.93 crore that
he is eligible 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
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.
Sitting fee and commission to the Non-Executive
Directors:
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
` in lakhs
Sitting Fee
1.00
1.40
3.40
2.20
1.80
1.60
1.00
1.40
13.80
Each of the Non-Executive Directors will also be paid
commission amounting to ` 50 lakhs on an annual basis
and the total commission payable to such directors shall
not exceed ` 5 (five) crore per annum in the aggregate.
During the year, the Company has paid ` 0.29 crore as
professional fees to M/s. Kanga & Co., a firm in which
Shri Mansingh L. Bhakta, Director of the Company, is
a partner. There were no other pecuniary relationships
or transactions of the Non-Executive Directors vis-à-vis
the Company. The Company has not granted any stock
option to any of its Non-Executive Directors.
(vii) Shareholders’ / Investors’ Grievance Committee
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 & Transfer Agents of the Company and
74
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Director takes appropriate steps to present such views to
the Chairman and Managing Director.
8. 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 2012-13.
Mukesh D. Ambani
Chairman and Managing Director
9. Subsidiary
Framework
Companies’ Monitoring
All subsidiary companies of the Company are Board
managed with their Boards having the rights and
obligations to manage such companies in the best interest
of their stakeholders. The Company 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
the
subsidiary companies
Company’s Board.
is placed before
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.
10. 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
Date
Time
2011-12
2010-11
2009-10
June 07, 2012
June 03, 2011
June 18, 2010
11.00 a.m.
11.00 a.m.
11.00 a.m.
Special
Resolution
Passed
Nil
Nil
Nil
(ii) Special Resolution passed through Postal Ballot
No special resolution was passed through Postal Ballot
during the Financial Year 2012-13. None of the businesses
proposed to be transacted in the ensuing Annual General
Meeting require passing a special resolution through
Postal Ballot.
11. a. Disclosure on materially significant related party
transactions i.e. transactions of the Company
of material nature, with its Promoters, the
Directors and the management, their relatives or
subsidiaries, etc. that may have potential conflict
with the interests of the Company at large
None of the transactions with any of the related
parties were in conflict with the interest of the
Company. Attention of members is drawn to the
disclosure of transactions with the related parties
set out in Note No. 30 of the Standalone Financial
Statements, 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
share,
investments, optimization of market
Reliance Industries Limited
75
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 the Stock Exchanges.
(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. All periodical
compliance filings
like shareholding pattern,
corporate governance report, media releases, etc.
are filed electronically on NEAPS.
(x) BSE Corporate Compliance & Listing Centre
(the “Listing Centre”): The Listing Centre of BSE
is a web based application designed by BSE for
corporates. All periodical compliance filings like
shareholding pattern, corporate governance report,
media releases, etc. are also filed electronically on
the Listing Centre.
(xi) SEBI Complaints Redress System (SCORES):
The
in a
investor complaints are processed
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.
(xii) 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
legal requirements,
profitability,
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.
liquidity and
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.
However, SEBI has issued Show Cause Notices in
the last three years in connection with (i) sale of
shares of erstwhile Reliance Petroleum Limited;
(ii) the allotment of equity shares of the Company
to certain companies against detachable warrants
attached to privately placed debentures issued by the
Company and (iii) disclosure of Earnings Per Share
and diluted Earnings Per Share in the filing with
the Stock Exchanges in respect of shares against
warrants issued in April, 2007. The Company has
submitted its reply for the same.
12. Means of Communication
(i) Quarterly Results: Quarterly Results
of
the Company are published
‘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.
in
(iii) Presentations
to
Investors
Institutional
/
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
is
Relations’ where shareholders
available. The Annual Report of the Company is
also available on the website in a user-friendly and
downloadable form.
information
(v) Annual Report: Annual Report containing, inter
alia, Audited Annual Accounts, Consolidated
Financial Statements, Directors’ Report, Auditors’
76
Fulfilling India’s Aspirations. With Innovation and Enterprise.
(xiii) Shareholders’ Feedback Survey: The Company
had sent feedback forms seeking shareholders’
views on various matters relating to investor services
and the Annual Report 2011-12. The feedback
received from the shareholders was placed before
the Shareholders’/Investors’ Grievance Committee.
13. General Shareholder Information
(i) Company Registration Details
is registered
in
the State of
The Company
Identity
Maharashtra,
Number (CIN) allotted
the Company by
the Ministry of Corporate Affairs (MCA) is
L17110MH1973PLC019786.
India. The Corporate
to
(ii) Annual General Meeting
(Day, Date, Time and Venue):
Thursday, June 06, 2013 at 11.00 a.m.
Birla Matushri Sabhagar,
19, New Marine Lines, Mumbai 400 020
(iii) Financial Year: April 1, 2013 to March 31, 2014
(iv) Financial Calendar (tentative)
Results for the quarter ending:
June 30, 2013 - Third week of July, 2013
September 30, 2013 - Third week of October, 2013
December 31, 2013 - Third week of January, 2014
March 31, 2014 - Third week of April, 2014
Annual General Meeting - June, 2014
(v) Date of Book Closure
Tuesday, May 14, 2013 to Saturday, May 18, 2013
(both days inclusive) for payment of dividend.
(vi) Dividend Payment Date
Credit/dispatch of dividend warrants between June
7, 2013 and June 13, 2013.
(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
IDBI Trusteeship Services Limited
Asian Building, Ground Floor,
17, R. Kamani Marg, Ballard Estate,
Mumbai 400 001
(b)
(c) Axis Trustee Services Limited
Axis House, 2nd Floor,
Wadia International Centre,
Pandurang Budhkar Marg,
Worli, Mumbai 400 025
D) Payment of Listing Fees: Annual listing fee for the
year 2013-14 has been paid by the Company to BSE
and NSE. Annual maintenance and listing agency
fee for the calendar year 2013 has been paid by the
Company to the Luxembourg Stock Exchange.
E) Payment of Depository Fees: Annual Custody/
Issuer fee for the year 2013-14 has been paid by the
Company to NSDL and CDSL.
Reliance Industries Limited
77
(viii) Stock Market Price Data
Month
National Stock Exchange (NSE)
(In ` per share)
BSE Limited (BSE)
(In ` per share)
Month’s High Price Month’s Low Price Month’s High Price Month’s Low Price
April 2012
May 2012
June 2012
July 2012
August 2012
September 2012
October 2012
November 2012
December 2012
January 2013
February 2013
March 2013
762.90
751.40
742.95
746.10
824.90
881.60
862.00
814.90
849.80
955.00
901.00
869.40
723.70
673.05
673.40
706.65
730.55
760.05
682.35
761.10
789.75
836.25
805.75
764.40
762.40
750.90
742.50
745.00
824.95
881.00
860.40
814.55
849.40
954.80
900.60
869.00
724.05
671.00
673.50
707.30
730.50
760.10
792.35
761.00
789.60
836.30
805.80
765.00
(ix) Share Price Performance in comparison to broad based
indices – BSE Sensex and NSE Nifty as on March 31, 2013
BSE (% Change) NSE (% Change)
RIL
Sensex
RIL
Nifty
3.40% 8.23% 3.34% 7.31%
-26.16% -3.13% -26.33% -2.59%
43.99% 7.46% 43.90% 8.26%
-31.67% 20.40% -31.78% 20.02%
FY 2012-13
2 years
3 years
5 years
(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
Investor Service Centres of Karvy
List of
Computershare Private Limited is available on the
website of the Company 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, 2013
Category
code
Category of shareholder
Number of
shareholders
Total number of
shares
As a percentage
of (A+B+C)
(A)
(1)
(2)
(B)
(1)
Shareholding of Promoter and Promoter
1
Group
Indian
Foreign
Total Shareholding of Promoter and Promoter
Group
2
Public Shareholding
Institutions
70*
0
146 39 41 357
0
70*
146 39 41 357
2 105
92 87 66 000
45.34
0.00
45.34
28.77
78
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Category
code
Category of shareholder
(2)
(C)
(1)
(2)
Non-institutions
Total Public Shareholding
Shares held by Custodians and against which
Depository Receipts have been issued
Promoter and Promoter Group
Public
Number of
shareholders
31 59 658
31 61 763
Total number of
shares
72 18 49 105
165 06 15 105
As a percentage
of (A+B+C)
22.36
51.13
0
1
0
11 41 06 920
0.00
3.53
100.00
TOTAL (A) + (B) + (C)
31 61 834
322 86 63 382
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.
*As per disclosure under regulation 30(2) of the Securities and Exchange Board of India (Substantial Acquisition of
Shares and Takeovers) Regulations, 2011, furnished by the promoters.
B) Shareholding Pattern by Size as on March 31, 2013
Sl. No.
Category (Shares)
1
2
3
4
5
6
7
8
9
Up to 500
501 - 1000
1001 - 2000
2001 - 3000
3001 - 4000
4001 - 5000
5001 - 10000
10001 - 20000
Above 20000
TOTAL
C) Build up of Equity Share Capital
Sl. No. Particulars
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Subscribers to Memorandum
Shareholders of Reliance Textile Industries Limited
(Merged with the Company)
Conversion of Loan
Rights Issue - I
Bonus Issue - I
Debenture Series I Conversion
Consolidation of Fractional Coupon Shares
Conversion of Loan
Conversion of Loan
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
Holders
30 31 891
77 105
32 706
8 574
3 589
1 983
3 173
1 134
1 679
31 61 834
Shares
20 45 98 535
5 41 61 190
4 53 63 129
2 08 93 273
1 24 60 936
89 38 531
2 18 89 392
1 58 75 206
284 44 83 190
322 86 63 382
% of Total
Shares
6.34
1.68
1.41
0.65
0.39
0.28
0.68
0.49
88.10
100.00
Allotment Date No. of Shares
October 19, 1975
1 100
59 50 000
May 9, 1977
September 28, 1979
December 31,1979
September 19, 1980
December 31, 1980
May 15,1981
June 23, 1981
September 22, 1981
October 6, 1981
December 31, 1981
December 31, 1981
April 12, 1982
June 15, 1982
August 31, 1982
September 9, 1982
December 29, 1982
9 40 000
6 47 832
45 23 359
8 40 575
24 673
2 43 200
1 40 800
23 80 518
8 42 529
27 168
81 059
774
19 20 000
41
1 942
Sl. No. Particulars
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
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
Rights Issue III
Debenture Series G Conversion
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) X
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) XI
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) XII
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) XIII
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) XIV
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
Conversion of 3.5% ECB Due 1999 I
Reliance Industries Limited
79
Allotment Date No. of Shares
1 11 39 564
371
September 30, 1983
September 30, 1983
September 30, 1983
April 5, 1984
64 00 000
617
June 20, 1984
50
October 1, 1984
December 31, 1984
January 31, 1985
April 30, 1985
April 30, 1985
July 5,1985
December 17, 1985
December 31, 1985
97 66 783
2 16 571
91
45 005
53 33 333
52 835
42 871
106
610
December 31, 1985
November 15, 1986 40 284
April 1, 1987
169
August 1, 1987 6 60 30 100
3 15 71 695
29 35 380
25
February 4, 1988
February 4, 1988
June 2, 1988
October 31, 1988
November 29, 1990
May 22, 1991
October 10, 1991
10
322
46
25
June 3, 1992
1 84 00 000
4060
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
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
March 10, 1995
May 24, 1997
74 80 000
544
80
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Sl. No. Particulars
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
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
Shareholders of Reliance Petroleum Limited
(Merged with the Company)
Bonus Issue IV
ESOS – Allotment
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 January 22, 2013
Total Equity as on March 31, 2013
Allotment Date No. of Shares
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
July 11, 1997
July 22, 1997
September 13, 1997
October 22, 1997
November 4, 1997
December 20, 1997
December 4, 1997
September 27, 1999
January 12, 2000
October 23, 2002
October 13, 2007
6 01 40 560
October 3, 2008
Various dates in
2008-09
September 30, 2009
12 00 00 000
1 49 632
6 92 52 623
November 28,2009 1 62 67 93 078
5 30 426
Various dates in
2009-10
Various dates in
2010-11
Various dates
in 2011-12
February 22, 2013
29 99 648
13 48 763
1 86 891
-28 69 495
-4 62 46 280
322 86 63 382
(xiii) Corporate Benefits to Investors
b. Bonus Issues of Fully Paid-up Equity Shares
a. Dividend Declared for the last 10 Years
Financial Year
Dividend
Declaration
Dividend
per Share*
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
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
June 07, 2012
5
5.25
7.5
10
11
13
13
7
2010-11
2011-12
* Share of paid-up value of `10 per share.
Note: Dividend of ` 9.00 per share, recommended by the
Directors on April 16, 2013, is subject to declaration by
the shareholders at the ensuing Annual General Meeting.
8
8.5
Financial Year
1980-81
1983-84
1997-98
2009-10
Ratio
3:5
6:10
1:1
1:1
c.
Shares issued on Demerger
Consequent upon the demerger of the Coal based, Gas
based, Financial services and Telecommunications
undertakings/businesses of the Company in December,
2005, the shareholders of the Company were allotted
equity shares of the four companies, namely, Reliance
Energy Ventures Limited (REVL), Reliance Natural
Resources Limited (RNRL), Reliance Capital Ventures
Limited (RCVL) and Reliance Communication Ventures
Limited (RCoVL) in the ratio of one equity share of
each of the companies for every equity share held by the
shareholders except specified shareholders, in Reliance
Industries Limited, as on the record date fixed for the
purpose.
Reliance Industries Limited
81
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 Depository and
ICICI Bank Limited is the Custodian of all the Equity
Shares underlying the GDRs issued by the Company.
RIL GDR Price Movement over last 1 year
DR Close Price
(Source : Bank of New York Mellon website)
(b) Employee Stock Options: The Company has
not granted any Options during the financial year 2012-13.
Members may refer to the disclosures set out under
Annexure I to the Directors’ Report with regard to
particulars of Employees’ Stock Options.
(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
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
95.28
2.30
2.42
100.00
97.58% of Company’s paid-up Equity Share Capital
has been dematerialised upto March 31, 2013 (97.49%
up to March 31, 2012). 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 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 2012-13 is given below:
BSE
NSE
Total
Shares (nos.)
4 34 133 30 90 171 35 24 304
Value (in ` crore)
34.32
244.98
279.30
[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, 2013
represent 11,41,06,920 equity shares constituting 3.53%
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.
82
Fulfilling India’s Aspirations. With Innovation and Enterprise.
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
Dharamshala 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
Nagothane Manufacturing Division
P. O. Petrochemicals Township
Nagothane - 402 125, Roha Taluka,
Dist. Raigad, 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-1 to B-5 & A3, 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, CYDWN-2001/2,
KG-DWN-2003/1, CB-ONN-2003/1, KG-DWN-2004/4,
MN-DWN-2004/1, MN-DWN-2004/2 and KG-DWN-2005/2.
CBM Blocks
SP (West) – CBM – 2001/1, SP (East) – CBM – 2001/1
(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.
e-mail: investor_relations@ril.com
(xix) Transfer of unpaid/unclaimed amounts
Investor Education and Protection Fund
to
During the year under review, the Company has credited
` 6.53 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, 2013 is ` 99.27 crore.
Pursuant to the provisions of Investor Education and
Protection Fund (Uploading of information regarding
unpaid and unclaimed amounts lying with companies)
Rules, 2012, the Company has uploaded the details of
unpaid and unclaimed amounts lying with the Company
as on June 07, 2012 (date of last Annual General Meeting)
on the website of the Company (www.ril.com), as also on
the Ministry of Corporate Affairs website.
(xx) Equity Shares in the Suspense Account
In terms of Clause 5A(I) and Clause 5A(II) of the Listing
Agreement, the Company reports the following details in
respect of equity shares lying in the suspense accounts
which were issued in demat form and physical form,
respectively:
Reliance Industries Limited
83
Particulars
Demat
Number of
Shareholders
Aggregate Number of shareholders and
the outstanding shares in the suspense
account lying as on April 1, 2012
Number of shareholders who approached
the Company for transfer of shares from
suspense account during the year
97
1
Physical
Number
of equity
shares
1,322
Number of
Shareholders (phase
wise transfers)
1,64,437
Number of
equity shares
64,13,975
14
1,346*
1,18,583*
1
14
96
from
1,300
1,308
1,14,717
Number of shareholders to whom shares
were
the suspense
transferred
account during the year
Aggregate Number of shareholders and
the outstanding shares in the suspense
account lying as on March 31, 2013
*3,866 shares held by 46 shareholders were transferred from the suspense account on April 3, 2013.
The voting rights on the shares outstanding in the suspense accounts as on March 31, 2013 shall remain frozen till the
rightful owner of such shares claims the shares.
14. 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.
62,99,258
1,63,137
judicial
pronouncements
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
encompassing
important laws are regularly circulated to the Directors.
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.
16. 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.
This Certificate has also been forwarded to the Stock
Exchanges where the securities of the Company are listed.
and Non-
15. Adoption
of Mandatory
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
84
Fulfilling India’s Aspirations. With Innovation and Enterprise.
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, 2013 according to the
provisions of-
l
l
l
l
l
The Companies Act, 1956 and the Rules made under
that Act;
The Securities Contracts (Regulation) Act, 1956
(‘SCRA’) and 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’)
l
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;
l
l
l
l
l
l
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; and
The Memorandum and Articles of Association;
1. Based on my examination and verification of the
registers, records and documents produced to me and
according to the information and explanations given
to me by the Company, I report that the Company has,
in my opinion, complied with the provisions of the
Companies Act, 1956 (“the Act”) and the Rules made
under the Act and the Memorandum and Articles of
Association of the Company, with regard to:
(a) maintenance of various statutory registers
and documents and making necessary entries
therein;
(b) closure of the Register of Members / Debenture
holders;
(c) forms, returns, documents and resolutions
required to be filed with the Registrar of
Companies and the Central Government;
(d) service of documents by the Company on
its Members, Debenture holders, Debenture
Trustees, Auditors and the Registrar of
Companies;
(e) notice of Board meetings and Committee
(f)
(g)
meetings of Directors;
the meetings of Directors and Committees of
Directors including passing of resolutions by
circulation;
the 38th Annual General Meeting held on
June 7, 2012;
(h) minutes of proceedings of General Meetings
and of the Board and its Committee meetings;
(i) 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;
(j)
(k) payment of remuneration to Directors including
the Managing Director and Whole-time
Directors;
(l) appointment and remuneration of Auditors and
(m)
Cost Auditors;
transfers and transmissions of the Company’s
shares and debentures, and issue and dispatch
of duplicate certificates of shares;
(n) payment of interest on debentures and
redemption of debentures;
(o) declaration and payment of dividends;
(p)
transfer of certain amounts as required under
the Act to the Investor Education and Protection
Fund and uploading of details of unpaid and
unclaimed dividends on the websites of the
Company and the Ministry of Corporate
Affairs;
(q) borrowings and registration, modification and
satisfaction of charges wherever applicable;
Reliance Industries Limited
85
dematerialised securities with all securities issued
by the Company.
The Company has complied with the provisions of
the FEMA 1999 and the Rules and Regulations made
under that Act to the extent applicable to ODI, FDI
and ECB.
I further report that:
(a)
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, 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;
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.
(b)
(c)
(d)
(e)
(f)
I further report that based on the information received
and records maintained there are adequate systems and
processes in the Company commensurate with the size
and operations of the Company to monitor and ensure
compliance with applicable laws, rules, regulations and
guidelines.
Dr K R Chandratre
Practising Company Secretary
Certificate of Practice No. 5144
April 16, 2013
5.
6.
(r)
investment of the Company’s funds including
inter corporate loans and investments and loans
to others;
(t)
(s) 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;
(u) Allotment of equity shares of the Company
pursuant to Employees Stock Option Scheme;
(v) Buy-back of equity shares of the Company;
(w) Directors’ report;
(x) contracts, common seal, registered office and
publication of name of the Company; and
(y) generally, all other applicable provisions of the
Act and the Rules made under the Act.
2.
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.
3.
4.
The Company has complied with the provisions of
the Securities Contracts (Regulations) Act, 1956
and the Rules made under the Act, with regard to
maintenance of minimum public shareholding.
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
86
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Directors’ Report
Dear Shareholders,
Your Directors are pleased to present the 39th Annual Report and the audited accounts for the financial year ended
March 31, 2013.
Financial Results
The financial performance of the Company, for the year ended March 31, 2013 is summarised below:
Profit before Tax
Less: Current Tax
Deferred Tax
Profit for the year
Add: Balance in Profit & Loss Account
Add: On Amalgamation
Less: Appropriation:
Transferred to General Reserve
Transferred to Capital Redemption Reserve on buy
back of Equity Shares
Proposed Dividend on Equity Shares
Tax on Dividend
Closing Balance
2012-13
2011-12
` crore
$ Mn*
` crore
$ Mn*
26,284
5,244
37
21,003
7,609
1,116
29,728
4,842
966
7
3,869
1,668
206
5,743
25,750
5,150
560
20,040
6,514
-
5,061
1,012
110
3,939
1,453
-
26,554
5,392
18,000
3,316
16,000
3,145
43
2,628
447
8,610
8
484
82
4
2,531
410
1
497
81
1,853
7,609
1,668
* 1 $ = ` 54.285 Exchange Rate as on March 31, 2013 (1 $ = ` 50.875 as on March 31, 2012)
Results of Operations
The global economy in the Financial Year (FY) 2012-13
improved slowly, but was short on expectations. Several
European economies experienced recession due to high
unemployment, banking fragility, fiscal tightening and
sluggish growth. The U.S. economy improved marginally,
driven mainly by housing and the consumer sectors;
however, capital investments remained sluggish. Among
the Asian economies, China going through a political
transition, experienced considerably slow growth.
Deceleration in industrial output and exports weakened
India’s economic growth significantly.
FY 2012-13 proved to be a challenging year amidst global
economic uncertainties and disturbances in many parts
of the world. Despite these constraints and challenging
environment, the Company performed reasonably well
and the highlights of the performance are as under:
l
Revenue from operations increased by 9.2% to
` 371,119 crore ($68.4 billion)
Exports increased by 15% to ` 239,226 crore
($ 44.1 billion)
l
l
l
l
l
l
PBDIT decreased by 2.6% at ` 38,785 crore
($ 7.1 billion)
Profit Before Tax increased by 2.1% at ` 26,284
crore ($ 4.8 billion)
Cash Profit was at ` 30,505 crore ($ 5.6 billion)
Net Profit increased by 4.8% to ` 21,003 crore ($3.9
billion)
Gross Refining Margin was $ 9.2 / bbl for the year
ended March 31, 2013
The consolidated revenue from operations of the Company
for the year ended March 31, 2013 was ` 397,062 crore,
an increase of 10.8% on a Year-on-Year basis.
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 ` 28,950 crore ($ 5.3 billion) was paid in
the form of various taxes and duties.
The Company featured in the Fortune Global 500 list of
the world’s largest corporations for the eighth consecutive
year. The company was ranked 99th based on sales and
130th based on profits.
Reliance Industries Limited
87
Buy-Back of Equity Shares
Employees’ Stock Option Scheme
The Buy-back Offer announced by the Company on
January 20, 2012 was closed on January 19, 2013.
Pursuant to the said Buy-back, the Company bought
back and extinguished 4,62,46,280 equity shares of ` 10
each of an aggregate face value of ` 46,24,62,800 (which
includes 36,63,431 equity shares of `10 each bought back
in FY 2011-12). Consequent to the Buy-back, the paid-
up equity share capital of the Company as on March 31,
2013 (excluding allotment of shares made during the year
pursuant to Employees Stock Option Scheme) stood at
` 3228,47,61,257.
the
The Buy-back programme was
largest ever
implemented to-date in the history of Indian capital
markets and was EPS (Earnings Per Share) accretive
for the Company. It is expected to supplement earnings
growth from operations, for higher EPS, in the near
future.
Dividend
Your Directors have recommended a dividend of ` 9.00
per Equity Share (last year ` 8.50 per Equity Share) for
the financial year ended March 31, 2013, amounting to
` 3075 crore (inclusive of tax of ` 447 crore and net of
reversal of excess provision of previous year) one of the
highest payout by any private sector domestic company.
The dividend will be paid to members whose names
appear in the Register of Members as on May 13, 2013;
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.
The Employees’ Stock Compensation Committee,
constituted in accordance with the Securities and
Exchange Board of India (Employee Stock Option Scheme
and Employee Stock Purchase Scheme) Guidelines, 1999
(‘the SEBI Guidelines’), administers and monitors the
Employees’ Stock Option Scheme of the Company.
The applicable disclosures as stipulated under the SEBI
Guidelines as at March 31, 2013 (cumulative position)
are provided in Annexure I to this Report.
The issuance of equity shares pursuant to exercise of
Options does not affect the statement of profit and loss
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
In its second year of the partnership, Reliance Industries
Limited (RIL) and BP combined their expertise in
deepwater exploration and development and operations
in India. Both the teams worked closely to understand
the complex geology of the east-coast of India including
KG-D6 block. The efforts are on to map out an exploration
and development campaign that will efficiently target
high quality prospects in deeper zones and optimise
existing as well as future development plans.
Smart Transformation At Reliance (STAR)
The Company has embarked on one of the largest
business transformation project STAR in order to make
RIL “FUTURE READY”. It would help the Company
bring end-to-end digital chain to free up resources, will
also help enhance organisational entrepreneurship, create
a world-class human resource framework to retain talent
and fulfill mission of being an “Employer of Choice”.
88
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Shale Gas Business
FY 2012-13 was a pivotal year for RIL’s North American
Shale Gas business. It gained significant growth
momentum and delivered superior performance despite
adverse market conditions imposed by low gas prices and
higher service costs. It was landmark year strategically,
as Reliance completed carry obligations in the Carrizo
and Pioneer JVs and transitioned into post-carry mode,
allowing for improved governance rights and increased
alignment on activity levels.
Retail Business
The retail business continued its growth journey during
the year with new store launches as well as strong same
store sales growth. The business accomplished a milestone
by crossing a revenue of ` 10,000 crore during the year.
The business grew by 42% to reach revenue of ` 10,800
crore as against ` 7,599 crore registered in the previous
financial year. The business has achieved cash break-
even with earnings before depreciation, finance cost and
tax expense (EBDIT) of ` 78 crore. The milestone of
crossing ` 10,000 crore revenue and reaching cash break-
even at EBDIT level is a significant step in Reliance
Retail’s journey towards attaining market leadership by
democratizing access to all types of products and services
across all segments for the discerning Indian customer.
During the year under review, the realignment and
consolidation of the various formats of retail businesses
being carried on by the subsidiary companies of Reliance
Retail Limited, was proposed, subject to necessary
approvals of the High Court of Judicature at Bombay.
The consolidation exercise and consequent reduction in the
number of companies will help in enhancing operational
flexibility, efficiencies and greater and optimal utilisation
of resources and also lead to significant reduction in the
multiplicity of legal and regulatory compliances.
Infocomm Business
Reliance Jio Infocomm Limited “RJIL” (formerly Infotel
Broadband Services Limited) with Broadband Wireless
Access (BWA) spectrum in all the 22 telecom circles of
India, plans to provide reliable fast internet connectivity
through the 20 MHz, contiguous, Pan-India BWA
spectrum. In addition to connectivity, RJIL also plans to
enable end-to-end solutions that address the entire value
chain across various digital services in key domains of
national interest such as education, healthcare, security,
financial services, government-citizen interfaces and
entertainment. RJIL aims to comprehensively address
the requisite components of the customer need, thereby
fundamentally enhancing the opportunity and experience
of hundreds of millions of users in India.
RJIL has finalized key agreements with its technology
partners, service providers, infrastructure providers,
application partners, device manufacturers and other
strategic partners for the project. It aims to create a digital
eco system which can be used to benefit the industry, the
government and, above all, the people of this country.
RJIL has also completed the detailed planning for Pan
India implementation of the infrastructure needed for the
project.
Reliance Haryana SEZ
The Model Economic Township (MET) has been
envisioned to be developed as an industrial infrastructure
to support economic growth in a public private partnership
framework with the Government of Haryana through
HSIIDC Limited (a Government of Haryana company).
The start-up phase of operationalization of MET in the
district Jhajjar of Haryana has commenced during the
year.
Reliance Jamnagar Infrastructure Limited
During the year under review, Reliance Jamnagar
Infrastructure Limited, a wholly owned subsidiary which
was acting as a co-developer in the Jamnagar SEZ got
amalgamated with the Company.
Expansion of Operations
Your Company has commenced implementing significant
expansion plans in the Petrochemical business and on
completion over the next 3 to 4 years, the overall volume
is expected to increase by more than 60%. Your Company
is also setting up the world’s largest petcoke gasification
facility at Jamnagar to convert the lowest cost fossil fuels
- coal and coke into gas.
Consolidated Financial Statements
In accordance with the Accounting Standard (AS) -21
on Consolidated Financial Statements read with 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, Statement of Profit and Loss 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
Reliance Industries Limited
89
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 and their
business operations during the year under review are
covered in the Management’s Discussion and Analysis
Report.
of the ensuing Annual General Meeting and are eligible
for re-appointment.
The Company has received letters from all of them to
the effect that their re-appointment, if made, would be
within the prescribed limits under Section 224(1B) of the
Companies Act, 1956 and that they are not disqualified
for re-appointment 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.
Directors
Cost Auditors
Shri Mahesh P. Modi, Dr. Dharam Vir Kapur,
Dr. Raghunath A. Mashelkar and Shri Pawan Kumar
Kapil, Directors, retire by rotation and being eligible,
offer themselves for re-appointment 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, 2013, 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, 2013 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
The Company has appointed the following cost auditors
for conducting Cost Audit for the financial year 2012-13:
(i) For the Textiles Business - M/s. Kiran J. Mehta &
Co, Cost Accountants;
(ii) For the Chemicals Business - M/s. Diwanji &
Associates, Cost Accountants, M/s. K. G. Goyal
& Associates, Cost Accountants, M/s. V. J. Talati
& Co., Cost Accountants, M/s. Bandyopadhyaya
Bhaumik & Co., Cost Accountants, M/s Shome &
Banerjee, Cost Accountants, M/s. Kiran J. Mehta &
Co, Cost Accountants and M/s. Dilip M. Malkar &
Co., Cost Accountants;
(iii) For the Polyester Business - Shri Suresh D. Shenoy,
Cost Accountant, M/s. V. Kumar & Associates,
Cost Accountants;
(iv) For Electricity Generation - M/s. Dilip M. Malkar
& Co., Cost Accountants;
(v) For Petroleum Business - M/s. V. J. Talati & Co.,
Cost Accountants; and
(vi) For Oil & Gas Business - M/s Kiran J. Mehta &
Co., Cost Accountants; Shri Suresh D. Shenoy, Cost
Accountant; M/s Bandyopadhyaya Bhaumik & Co.,
Cost Accountants and M/s Shome & Banerjee, Cost
Accountants.
M/s Shome & Banerjee, Cost Accountants have been
nominated as the Lead Cost Auditor of the Company.
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
the Secretarial Audit. The Secretarial Audit Report for the
financial year ended March 31, 2013, is provided in the
Annual Report.
90
Fulfilling India’s Aspirations. With Innovation and Enterprise.
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), 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, The
Securities and Exchange Board of India (Buy Back of
Securities) Regulations, 1998, Listing Agreements with
the Stock Exchanges and the Memorandum and Articles
of Association of the Company.
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
relating
to energy conservation,
The particulars
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
Annexure-II to this Report.
Transfer of amounts to Investor Education and
Protection Fund
Pursuant to the provisions of Section 205A(5) and 205C
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.
Pursuant to the provisions of Investor Education and
Protection Fund (Uploading of information regarding
unpaid and unclaimed amounts lying with companies)
Rules, 2012, the Company has uploaded the details of
unpaid and unclaimed amounts lying with the Company
as on June 07, 2012 (date of last Annual General Meeting)
on the website of the Company (www.ril.com), as also on
the Ministry of Corporate Affairs website.
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.
Business Responsibility Report
SEBI, vide its Circular CIR/CFD/DIL/8/2012 dated
August 13, 2012, mandated the top 100 listed entities,
based on market capitalisation at BSE and NSE, to include
Business Responsibility Report as part of the Annual
Report describing the initiatives taken by the companies
from Environmental, Social and Governance perspective.
Accordingly, the Business Responsibility Report is
attached and forms part of the Annual 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 16, 2013
Reliance Industries Limited
91
Annexure – I
during the year 2012-13 are listed below:
Disclosures required under the SEBI (Employee
Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999
Allahabad Manufacturing Division
l
Optimization of Dow heat consumption
polymerization by modifying split box.
in
(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 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 52,15,360; (e) The
total number of shares arising as a result of exercise of
options – 52,15,360; (f) Options lapsed – 2,19,53,179;
(g) Variation in terms of options – Exercise Period for
Options vested under the first tranche was extended up to
July 6, 2013; (h) Money realised by exercise of options –
` 359,98,32,048; (i) total number of options in force [(a)
– (d) – (f)] – 3,25,61,678; (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 (k) Diluted Earnings Per
Share (EPS) before exceptional items pursuant to issue
of shares on exercise of Options calculated in accordance
with AS-20 ‘Earnings Per Share’ is ` 64.82.
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
Barabanki Manufacturing Division
l
Replacement of 70W HPSV Lamps with 30W and
42W LED Lamps.
Replacement of 250W Metal Halide Lamps with
150W Green Energy Efficient Lamps.
Dahej Manufacturing Division
l
Reactor feed preheater is replaced with higher size
for better heat recovery based on Pinch study of
MEG Plant.
Optimization of steam & power system using online
optimizer.
Steam saving
in Propylene compressor by
troubleshooting antisurge valve opening problem in
Ethane Propane Recovery Unit.
Power saving by replacement of air compressor's 1st
stage inter cooler in Air Separation plant.
Vacuum improvement of Caustic Evaporation
Unit by re-tubing of second effect evaporator and
plugging of tubes in first and third effect evaporator.
Increasing insulation thickness of MP and LP
steam header in yard piping based on Economical
Insulation thickness in view of increase in Fuel
Price.
Hazira Manufacturing Division
l
Uprating Gas Turbine capability of Gas Turbine
(GT-4) at CPP&U plant.
Uprating Gas Turbine capability of Gas Turbine
(GT-1) and running it in Advanced Process Control
in manual mode at CPP&U plant.
Burner optimization in Heat Recovery Steam
Generators at CPP&U plant.
Replacing MP steam consumption with LP steam
consumption in Dehydrator Reboiler in MEG plant.
LP steam saving by Pure Terephthalic Acid dryer
outlet temperature optimization.
50% capacity Boiler Feed Pump (BFP) operation
resulting in LP steam savings at CPP&U plant.
Power saving due to stoppage of vapour Pressure
Swing Absorption plant based on oxygen
optimization after catalyst change out at MEG
plant.
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l Modification in operating philosophy of oxygen
compressor at MEG plant.
92
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Hoshiarpur Manufacturing Division
l
Saving in electricity consumption by replacing
traditional lights with CFL.
Jamnagar Manufacturing Division (DTA)
l
Grid Transformer Relay setting change facilitated
reduction in Steam Turbine Generator condensation
load in CPP.
Reduction in Lean Amine circulation through
increased Methyl ethanolamine strength from 35 to
37.5 wt % in Lean Amine in sulphur complex.
LP steam reduction in air preheater in all Coker
heaters improving heater efficiency.
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l MP steam reduction in stripper by optimizing
process conditions in Diesel Hydrotreater plant.
l MP steam reduction in Crude unit by maintaining
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reduced LP steam super heat temperature.
C3-C4 fuel saving by routing PP line D degassing
column vent to fuel gas header instead to flare
system.
Condensate recovery in Sulphur Recovery Unit.
Heat recovery from Light Coker Gas Oil pump
around to preheat cold Vacuum Residue from tanks
to reduce firing in Coker heaters.
Jamnagar Manufacturing Division (SEZ)
l
Peak firing enablement of Gas Turbine resulting in
operation of 4 GT’s instead of 5 GT’s.
Use of Light Coker Gas Oil stream as heating media
instead of MP steam in Stripper Reboiler of Coker
plant.
Reduction in fuel by reducing reflux rate in the
stripper column in Heavy Naphtha Hydrotreater
plant.
Five pumps operation instead of six at Refinery
Tank farm for crude units feeding.
Feed temperature of Heavy Naphtha Hydrotreater
stripper increased which resulted in fuel saving in
Reboiler by extracting additional energy from air
cooler.
Velocity HP steam optimization in all passes of
heater, in Coker plant.
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l MP steam saving in Naphtha Splitter by reducing
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reflux rate.
Furnace stack O2 reduction from 3 to 1.5% in Crude
Distillation Unit furnaces and improving efficiency,
by stack O2 optimization.
Power saving in Vent Gas Recovery compressor by
optimal distribution of load between two trains of
Polypropylene units.
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HP steam saving in turbine by reduction of
Alkylation refrigeration discharge pressure from
5.2 to 5.03 Kg / cm2 in Alkylation Unit.
Power saving by impeller trimming of 5 Gasoline
and 5 Diesel transfer pumps at Refinery Tank farm.
Nagothane Manufacturing Division
l
(GT-51)
Converting a turbine from steam driven to motor
driven resulting in reduction in steam generation at
CPP.
Uprating Gas Turbine
improvement in heat rate of 195 Kcal / KWH.
Optimized the De-aerators pressure in CPP based
on availability of LP steam in the complex.
through
Reduced
Pressure Reducing & De-superheating System
and maximized HP extraction from Propylene
Refrigeration Turbine.
the HP steam
let down
resulting
in
Stoppage of Steam Turbine Generator at CPP plant.
Patalganga Manufacturing Division
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Silvassa Manufacturing Division
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Improved Power Factor by Installation of 2
capacitors of 7500 KVAR.
Vadodara Manufacturing Division
l
Direct supply of Polymer Grade Propylene from
Naphtha Cracker Plant to Polypropylene Copolymer
Plant.
Shifting of 40 MT / hr steam load from Aux boiler
to Heat Recovery Steam Generator.
Change in control philosophy at steam network to
avoid steam venting at Acrylo Nitrile plant.
In Naphtha Cracker Plant, optimization of De-
aerator after installation of Dissolved Oxygen
Analyser to reduce steam consumption.
Steam to flare control valve output indication and
control on Distributed Control System (Naphtha
Cracker Plant).
Ethylene Glycol
recycle water optimization
(reduction of recycle water in re-absorber, reactor
inlet and aldehyde purge).
Improved condensate recovery by increased flow
circulation (from integrated offsite plant to Poly
Butadiene Rubber plant).
Gas Turbine (GT1) component up rate to reduce
heat rate and improve power generation.
Replacement of damper having twin blade (air
ceiling) to ensure minimum leakage of flue gas at
Gas Turbine (GT1) & repair of deformed duct as
well as internal insulation.
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Reliance Industries Limited
93
higher efficiency for propane cooling instead of
operating high capacity chiller at low efficiency.
Jamnagar Manufacturing Division (SEZ)
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Installation of thermo compressor at Fluidised
Catalytic Cracker Unit for Low medium Pressure
steam.
Heat recovery from crude column overhead vapour
in Crude Distillation Unit.
Use of LP steam in Deisohexaniser reboiler in place
of MP steam.
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l MP steam production from Diesel product circuit in
Vacuum Gas Oil Hydrotreater Units 3
Nagothane Manufacturing Division
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Uprating Gas Turbine Generator.
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Installation of small air compressors so as to stop
the operation of a bigger compressor.
Naroda Manufacturing Division
l
Replacement of 161 old motors with Energy
Efficient Motors.
Vadodara Manufacturing Division
l
Instead of operating two boilers at part load to
increase efficiency, operation of only one aux boiler
to meet steam demand.
Replacement of DM water coil in waste heat boiler
to reduce the stack temperature at Naphtha Cracker
plant.
Replacement of two existing chillers with energy
efficient chillers in Poly Vinyl Chloride plant.
Installation of new footprint turbine for Charge
Gas Compressor and Propylene Refrigeration
Compressor for cracker plant.
Installation of a turbine at Naphtha Cracker Plant
for power generation from SHP Steam let-down.
Impact of measures of (a) and (b) given above for
reduction of energy consumption and consequent
impact on the cost of production of goods:
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(c)
Allahabad Manufacturing Division
l
Optimization of Dow heat consumption
in
polymerization by modifying split box, resulting
in heat consumption reduction by 0.05 MMKCal /
MT chip and financial savings of ` 0.33 crore per
annum.
Barabanki Manufacturing Division
l
Replacement of 70W HPSV Lamps with 30W and
42W LED Lamps, resulting in power saving of 633
KWH per annum.
Replacement of 250W Metal Halide Lamps with
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(b) Additional
Stoppage of one Cooling Water pump in Integrated
Offsite Plant Cooling Tower by isolating two cells.
Dry ice cleaning of heater convection bank.
investments/proposals
being
implemented for reduction of consumption of
energy:
Dahej Manufacturing Division
l
Conversion of electrolyser from 2nd Generation
to Energy efficient 5th Generation elements and
membranes in Chlor Alkali plant.
Installation of Hydraulic Turbine in Ethane Propane
Recovery Unit.
Reduction in steam consumption of Gas Cracker
Unit by supply of ethylene to Vinyl Chloride
Monomer plant directly from ethylene tower.
Reduction in steam consumption of Gas Cracker
Unit by De-aerator feed heating by LP condensate
in Gas Cracker Unit.
LP steam supply to Vinyl Chloride Monomer plant
from CPP for stopping MP to LP let-down in Vinyl
Chloride Monomer.
Revamping of condensate stripper in Gas Cracker
Unit.
Application of new insulation material on VHP
steam line from CPP to Ethane Propane Recovery
Unit.
Preheat slurry stripper feed with centrate water in
PVC .
Use of quench water instead of LP steam in Lead
reactor Preheater based on Pinch study conducted
in Gas Cracker Unit.
Increased
recovery in MEG plant.
Increasing the size of LP steam Import control
valve in MEG Plant to maximize Steam Turbine
Generator Extraction in CPP and Reduce LP to LLP
let down of MEG Plant.
Reduction in steam consumption in MEG Plant by
installing condensate pot in place of steam trap.
steam generation and condensate
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Hazira Manufacturing Division
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Operation of Heads-1 preheater to reduce steam
consumption at Heads-1 column at Vinyl Chloride
Monomer plant.
Jamnagar Manufacturing Division (DTA)
l
HP steam reduction in Stripper Reboiler by
implementing hot separator equipment in Tatoray
Unit-2.
Power reduction by operating smaller chiller at
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94
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Dahej Manufacturing Division
l
150W Green Energy Efficient Lamps resulting in
power saving of 720 KWH per annum.
Reactor feed preheater is replaced with higher
size for better heat recovery based on Pinch study
of MEG Plant, resulting in fuel saving of 1.06
MMKCal / hr and financial savings of ` 1.26 crore
for the year.
Optimization of steam & power system using
online optimizer, resulting in fuel saving of 3.58
MMKCal / hr and financial savings of ` 4.48 crore
per annum.
Steam saving
in Propylene compressor by
troubleshooting antisurge valve opening problem
in Ethane Propane Recovery Unit, resulting in fuel
saving of 2.47 MMKCal / hr and financial savings
of ` 2.56 crore per annum.
Power saving by replacement of air compressor's
1st stage inter cooler in Air Separation plant,
resulting in fuel saving of 0.51 MMKCal / hr and
financial savings of ` 1.24 crore per annum.
Vacuum improvement of Caustic Evaporation
Unit by re-tubing of second effect evaporator and
plugging of tubes in first and third effect evaporator,
resulting in fuel saving of 2.46 MMKCal / hr and
financial savings of ` 2.17 crore per annum.
Increasing insulation thickness of MP and LP
steam header in yard piping based on Economical
Insulation thickness in view of increase in Fuel
Price, resulting in fuel saving of 0.99 MMKCal / hr
and financial savings of ` 1.24 crore per annum.
Conversion of electrolyser from 2nd Generation
to Energy efficient 5th Generation elements and
membranes in Chlor Alkali plant, shall result in
power saving of 8,670 KW / hr and financial savings
of ` 73.59 crore per annum.
Installation of Hydraulic Turbine in Ethane Propane
Recovery Unit, shall result in power saving of 387
KW / hr and financial savings of ` 2.37 crore per
annum.
Reduction in steam consumption of Gas Cracker
Unit by supply of ethylene to Vinyl Chloride
Monomer plant directly from ethylene tower,
shall result in fuel saving of 1.6 MMKCal / hr and
financial savings of ` 7.49 crore per annum.
Reduction in steam consumption of Gas Cracker
Unit by De-aerator feed heating by LP condensate
in Gas Cracker Unit, shall result in fuel saving of
0.7 MMKCal / hr and financial savings of ` 3.19
crore per annum.
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LP steam supply to Vinyl Chloride Monomer plant
from CPP for stopping MP to LP let-down in Vinyl
Chloride Monomer, shall result in fuel saving of
4.95 MMKCal / hr and financial savings of ` 22.46
crore per annum.
Revamping of condensate stripper in Gas Cracker
Unit, shall result in fuel saving of 1.8 MMKCal / hr
and financial savings of ` 8.17 crore per annum.
Application of new insulation material on VHP
steam line from CPP to Ethane Propane Recovery
Unit, shall result in fuel saving of 1.2 MMKCal / hr
and financial savings of ` 5.24 crore per annum.
Preheat slurry stripper feed with centrate water in
PVC, shall result in fuel saving of 1.02 MMKCal /
hr and financial savings of ` 4.63 crore per annum.
Use of quench water instead of LP steam in Lead
reactor Preheater based on Pinch study conducted
in Gas Cracker Unit, shall result in fuel saving of
0.7 MMKCal / hr and financial savings of ` 3.19
crore per annum.
Increased
steam generation and condensate
recovery in MEG plant, shall result in fuel saving
of 1.5 MMKCal / hr plant and financial savings of
` 6.71 crore per annum.
Increasing the size of LP steam Import control
valve in MEG Plant to maximize Steam Turbine
Generator Extraction in CPP and Reduce LP to LLP
let down of MEG Plant, shall result in fuel saving
of 0.5 MMKCal / hr and financial savings of ` 2.24
crore per annum.
Reduction in steam consumption in MEG Plant by
installing condensate pot in place of steam trap,
shall result in fuel saving of 0.35 MMKCal / hr and
financial savings of ` 1.6 crore per annum.
Hazira Manufacturing Division
l
Uprating Gas Turbine capability of Gas Turbine
(GT-4) at CPP&U plant, resulting in potential
energy saving of 31150 MMKCal and equivalent
financial savings of ` 11.04 crore per annum.
Uprating Gas Turbine capability of GT-1 and
running it in Advanced Process Control in manual
mode at CPP&U plant, resulting in potential energy
saving of 22680 MMKCal and equivalent financial
savings of ` 8.03 crore per annum.
Burner optimization in Heat Recovery Steam
Generators at CPP&U plant, resulting in potential
energy saving of 20871 MMKCal and equivalent
financial savings of ` 7.39 crore per annum.
Replacing MP steam consumption with LP steam
consumption in Dehydrator Reboiler in MEG
plant, resulting in potential energy saving of 8080
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Reliance Industries Limited
95
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l MP steam reduction in Crude unit by maintaining
reduced LP steam super heat temperature, resulting
in MP steam saving of 8.2 TPH and financial
savings of ` 2.79 crore per annum.
C3-C4 fuel saving by routing PP line D degassing
column vent to fuel gas header instead to flare
system, resulting in fuel saving of 0.96 MT / day
and financial savings of ` 1.56 crore per annum.
Condensate recovery in Sulphur Recovery Unit,
resulting in LP steam saving of 1.36 TPH and
financial savings of ` 2.18 crore per annum.
Heat recovery from Light Coker Gas Oil pump
around to preheat cold Vacuum Residue from tanks
to reduce firing in Coker heaters, resulting in MP
steam saving of 8 TPH and financial savings of
` 13.99 crore per annum.
HP steam reduction in Stripper Reboiler by
implementing hot separator equipment in Tatoray
Unit-2, shall result in HP steam saving of 5.7 TPH
and financial savings of ` 0.93 crore per annum.
Power reduction by operating smaller chiller at
higher efficiency for propane cooling instead of
operating high capacity chiller at low efficiency,
shall result in power saving of 96000 KWH / day
and financial savings of ` 2.39 crore per annum.
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Jamnagar Manufacturing Division (SEZ)
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Peak firing enablement of Gas Turbine resulting
in operation of 4 GT’s instead of 5 GT’s, resulting
in fuel saving of 115.2 MT / day due to improved
efficiency of Gas Turbine and financial savings of
` 152.85 crore per annum.
Use of Light Coker Gas Oil stream as heating media
instead of MP steam in Stripper Reboiler of Coker
plant, resulting in MP steam saving of 12 TPH and
financial savings of ` 17.17 crore per annum.
Reduction in fuel by reducing reflux rate in the
stripper column in Heavy Naphtha Hydrotreater
plant, resulting in fuel saving of 4.3 MT / day and
financial savings of ` 6.16 crore per annum.
Five pumps operation instead of six at Refinery
Tank farm for crude units feeding, resulting in MP
steam saving of 15864 KWH / day by stopping the
sixth pump and financial savings of ` 1.93 crore per
annum.
Feed temperature of Heavy Naphtha Hydrotreater
stripper increased which resulted in fuel saving in
Reboiler by extracting additional energy from air
cooler, resulting in fuel saving of 2.5 MT / day and
financial savings of ` 3.59 crore per annum.
Velocity HP steam optimization in all passes of
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resulting
temperature optimization,
MMKCal and equivalent financial savings of ` 3.18
crore per annum.
LP steam saving by Pure Terephthalic Acid dryer
outlet
in
potential energy saving of 4616 MMKCal and
equivalent financial savings of ` 1.82 crore per
annum.
50% capacity Boiler Feed Pump (BFP) operation
resulting in LP steam savings at CPP&U plant,
resulting in potential energy saving of 4384
MMKCal and equivalent financial savings of ` 1.73
crore per annum.
Power saving due to stoppage of Vapour Pressure
Swing Absorption plant based on oxygen
optimization after catalyst change out at MEG
plant, resulting in potential energy saving of 4390
MMKCal and equivalent financial savings of ` 1.60
crore for the year.
l Modification in operating philosophy of oxygen
compressor at MEG plant, resulting in potential
energy saving of 2927 MMKCal and equivalent
financial savings of ` 1.07 crore per annum.
Operation of Heads-1 preheater to reduce steam
consumption at Heads-1 column at Vinyl Chloride
Monomer plant, shall result in anticipated energy
saving of 3517 MMKCal and equivalent financial
savings of ` 1.39 crore per annum.
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Hoshiarpur Manufacturing Division
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Saving in electricity consumption by replacing
traditional lights with CFL, resulting in power
saving of 2.5 KW / hr.
Jamnagar Manufacturing Division (DTA)
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in
resulting
in CPP,
Grid Transformer Relay setting change facilitated
reduction in Steam Turbine Generator condensation
load
fuel saving of
10.2 MT / day and financial savings of ` 14.17 crore
per annum.
Reduction in Lean Amine circulation through
increased Methyl ethanolamine strength from 35
to 37.5 wt % in Lean Amine in sulphur complex,
resulting in LP steam saving of 10 TPH and financial
savings of ` 14.74 crore per annum.
LP steam reduction in air preheater in all Coker
heaters improving heater efficiency, resulting in
fuel saving of 0.98 MT / day and financial savings
of ` 1.36 crore per annum.
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l MP steam reduction in stripper by optimizing
process conditions in Diesel Hydrotreater plant,
resulting in MP steam saving of 1.5 TPH and
financial savings of ` 2.95 crore per annum.
96
Fulfilling India’s Aspirations. With Innovation and Enterprise.
heater, resulting in HP steam saving of 1000 Kg / hr
in Coker plant and financial savings of ` 1.61 crore
per annum.
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l MP steam saving in Naphtha Splitter by reducing
reflux rate, resulting in MP steam saving of 5 TPH
and financial savings of ` 8.08 crore per annum.
Furnace stack O2 reduction from 3 to 1.5% in Crude
Distillation Unit furnaces and improving efficiency,
resulting fuel saving of 5.9 MT / day by stack O2
optimization and financial savings of ` 7.86 crore
per annum.
Power saving in Vent Gas Recovery compressor by
optimal distribution of load between two trains of
Polypropylene units, resulting in power saving of
11184 KWH / day and financial savings of ` 1.48
crore per annum.
HP steam saving in turbine by reduction of
Alkylation refrigeration discharge pressure from
5.2 to 5.03 Kg / cm2 in Alkylation Unit, resulting in
HP steam saving of 3.5 TPH and financial savings
of ` 5.75 crore per annum.
Power saving by impeller trimming of 5 Gasoline
and 5 Diesel transfer pumps at Refinery Tank farm,
resulting in electricity saving of 9600 KWH / day
and financial savings of ` 1.15 crore per annum.
Installation of thermo compressor at Fluidised
Catalytic Cracker Unit for Low medium Pressure
steam, shall result in MP steam saving of 30 TPH
and financial savings of ` 6.33 crore per annum.
Heat recovery from crude column overhead vapour
in Crude Distillation Unit, shall result in MP steam
saving of 29 TPH and financial savings of ` 55.99
crore per annum.
Use of LP steam in Deisohexaniser reboiler in place
of MP steam, shall result in MP steam saving of
4.2 TPH and financial savings of ` 9.15 crore per
annum.
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l MP steam production from Diesel product circuit in
Vacuum Gas Oil Hydrotreater Units 3, shall result
in MP steam saving of 17 TPH and financial savings
of ` 22.69 crore per annum.
Nagothane Manufacturing Division
l
Converting a turbine from steam driven to motor
driven resulting in reduction in steam generation at
CPP, resulting in fuel saving of 5.28 MMKCal / hr
and financial savings of ` 13.68 crore per annum.
Uprating Gas Turbine
in
improvement in heat rate of 195 Kcal/KWH,
resulting in fuel saving of 3 MMKCal/hr and
resulting
(GT-51)
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let down
the HP steam
financial savings of ` 7.18 crore for the year.
Optimized the De-aerators pressure in CPP based
on availability of LP steam in the complex, resulting
in fuel saving of 1.76 MMKCal/hr and financial
savings of ` 2.54 crore for the year.
Reduced
through
Pressure Reducing & De- superheating System
and maximized HP extraction from Propylene
Refrigeration Turbine, resulting in energy saving of
1.57 MMKCal / hr and financial savings of ` 4.16
crore per annum.
Uprating Gas Turbine Generator, shall result in fuel
saving of 1.5 MMKCal / hr and financial savings of
` 3.59 crore per annum.
Installation of small air compressors so as to stop
the operation of a bigger compressor, shall result in
power saving of 512 KW and financial savings of
` 2.24 crore per annum.
Naroda Manufacturing Division
l
Replacement of 161 old motors with Energy
Efficient Motors, shall result in annual power
saving of 18,86,698 KWH and financial savings of
` 1.21 crore per annum.
l
Patalganga Manufacturing Division
l
Stoppage of Steam Turbine Generator at CPP plant,
resulting in energy saving of 53602 MMKCal and
financial savings of ` 15 crore for the year.
Silvassa Manufacturing Division
l
Improved Power Factor by Installation of 2
capacitors of 7500 KVAR, resulting in financial
savings of ` 1.51 crore for the year.
Vadodara Manufacturing Division
l
Direct supply of Polymer Grade Propylene from
Naphtha Cracker Plant to Polypropylene Copolymer
plant, resulting in energy saving of 6419 MMKCal
and financial savings of ` 1.99 crore for the year.
Shifting of 40 MT / hr steam load from Aux boiler
to Heat Recovery Steam Generator, resulting in
energy saving of 36097 MMKCal and financial
savings of ` 11.19 crore for the year.
Change in control philosophy at steam network
to avoid steam venting at Acrylo Nitrile plant,
resulting in energy saving of 3935 MMKCal and
financial savings of ` 1.22 crore for the year.
In Naphtha Cracker Plant, optimization of De-
aerator after installation of Dissolved Oxygen
Analyser to reduce steam consumption, resulting
in energy saving of 3387 MMKCal and financial
savings of ` 1.05 crore for the year.
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Steam to flare control valve output indication and
control on Distributed Control System (Naphtha
Cracker Plant), resulting in energy saving of 5097
MMKCal and financial savings of ` 1.58 crore for
the year.
recycle water optimization
Ethylene Glycol
(reduction of recycle water in re-absorber, reactor
inlet and aldehyde purge), resulting in energy
saving of 4065 MMKCal and financial savings of
` 1.26 crore for the year.
Improved condensate recovery by increased flow
circulation (from Integrated offsite plant to Poly
Butadiene Rubber plant), resulting in energy saving
of 4935 MMKCal and financial savings of ` 1.53
crore for the year.
Gas Turbine (GT1) component up rate to reduce
heat rate and improve power generation, resulting
in energy saving of 21048 MMKCal and financial
savings of ` 6.52 crore for the year.
Replacement of damper having twin blade (air
ceiling) to ensure minimum leakage of flue gas
at Gas Turbine (GT1) & repair of deformed duct
as well as internal insulation, resulting in energy
saving of 18454 MMKCal and financial savings of
` 5.72 crore for the year.
Stoppage of one Cooling Water pump in Integrated
Offsite Plant Cooling Tower by isolating two cells,
resulting in energy saving of 8690 MMKCal and
financial savings of ` 2.69 crore for the year.
Dry ice cleaning of heater convection bank,
resulting in energy saving of 5091 MMKCal and
financial savings of ` 1.58 crore for the year.
Instead of operating two boilers at part load to
increase efficiency, operation of only one aux boiler
to meet steam demand, shall result in annual energy
saving of 38710 MMKCal and financial savings of
` 12 crore per annum.
Replacement of DM water coil in waste heat boiler
to reduce the stack temperature at Naphtha Cracker
plant, shall result in annual energy saving of 6935
MMKCal and financial savings of ` 2.15 crore per
annum.
Replacement of two existing chillers with energy
efficient chillers in Poly Vinyl Chloride plant, shall
result in annual energy saving of 6355 MMKCal
and financial savings of ` 1.97 crore per annum.
Installation of new footprint turbine for Charge
Gas Compressor and Propylene Refrigeration
Compressor for cracker plant, shall result in annual
energy saving of 89032 MMKCal and financial
savings of ` 27.60 crore per annum.
Reliance Industries Limited
97
l
Installation of a turbine at Naphtha Cracker Plant for
power generation from SHP Steam let-down, shall
result in annual energy saving of 26935 MMKCal
and financial savings of ` 8.35 crore per annum.
energy
(d) Total
energy
consumption
consumption per unit of production as per
Form ‘A’ attached hereto:
B. TECHNOLOGY ABSORPTION
(e) Efforts made in technology absorption - as per
and
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
High stability catalyst additive for maximizing
petrochemicals co-production in fluidized catalytic
cracking.
Novel fluid catalytic cracking process for converting
low-value streams to light olefins.
New process to remove chloride from hydrocarbon
streams.
Detailed characterization technique to predict,
monitor and control gasoline blending.
Online composition prediction and composition-
based process models to plan, monitor and control
refinery process.
Extraction of relatively hydrogen-rich stream from
a low-quality refinery stream.
The use of feed properties and operating conditions
to optimize petroleum coke quality.
Advanced concept for gasifying petroleum coke.
Separation of olefins from coker gas oil for linear
alkyl benzene (LAB) production.
Determination of crude corrosion potential and
requisite mitigation.
Removal of heat stable salts and sodium from
refinery streams.
Hydroisomerization catalyst for diesel production
and
low pressure, ultra-low sulphur diesel
hydrotreating catalyst.
Carbon dioxide capture from flue gas.
Technology development to process low-cost,
heavy crudes.
Computational fluid dynamics studies for trouble
shooting plant operations.
New process for acidity reduction of crude.
Hydroprocessing kinetic model development
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98
Fulfilling India’s Aspirations. With Innovation and Enterprise.
in
recovery
for high performance,
for effective monomer
including deactivation kinetics, and mechanistic
model with catalyst parameters.
Fundamental ethylene reactor model.
Process and catalyst
polypropylene homo polymer grades.
Process and catalyst system for high performance,
impact polypropylene and biaxially oriented
polypropylene grades.
Compounded pipe-grade resin for water and gas
applications.
Specialty multilayer films for aseptic packaging.
Specialty high flow melt blown polypropylene
grades.
Development of metallocene-grade polyethylene
film.
Upgradation of existing polymer extrusion systems
for quality improvement and capacity enhancement.
Online tool for establishing the safe operating
boundaries and operating window for high pressure
polyolefins plant.
Process
polyolefin plants.
Commercialization of terpolymer grade for heat
sealing film application.
Process and catalyst for producing ultra-high
molecular weight polyethylene with targeted range
of molecular weight and high density grades.
Technology using high performance
catalyst for manufacturing alpha olefins.
Novel homogeneous catalysts and process for
ethylene polymerization.
Regeneration and alternate applications of spent
catalysts and adsorbents.
Synthesis and characterization of noble metal
nano-particles and their deposition on commercial
catalysts.
Lab-scale development of superabsorbent polymers.
Specialty polyethylene products.
Lab-scale
and
photocatalytic processes for effluent treatment in
acrylonitrile and polyvinyl chloride plants.
Catalytic process for production of 1-hexene.
Next generation paraffin dehydrogenation catalyst.
Identification of novel materials for catalytic
applications.
Self-healing elastomers.
Novel catalyst system for 1,3-butadiene.
of microbial
development
in-house
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Identification of an environmentally friendly process
for purified terepthalic acid (PTA) manufacture.
Implementation of an energy-efficient separation
process in PTA plants.
Degassing drum installation in PTA to reduce
methyl acetate losses.
Development of specialty polyester yarn.
Development of barrier polyethylene terephthalate
(PET) resin for packaging oxygen sensitive foods
and beverages.
Specialty yarns such as insect repellant yarn,
multifunctional yarn and conducting polyester yarn.
Low antimony polyester products.
Use of polyester fibres as replacement for hazardous
asbestos fibres in cement roof sheets.
Hydrophilic spun lace fibres for non-woven wipes.
Development of cobalt-free polyester resin.
PET resin with high impact strength.
Improved properties of recycled PET.
Catalyst for polyester productivity enhancement
and color improvement.
Development of bi-shrinkage yarns for improved
fabric feel and profiled yarns for differentiated
effects.
Polytrimethylene terephthalate (PTT) based staple
fibre.
2. Benefits derived as a result of the above R&D
l
in-house
(based on
Potential benefit of ` 30 crore per annum by
replacing proprietary catalyst with mixture of
generic catalyst and additive.
Benefit of ` 8 crore per annum from replacement of
imported catalyst system for homo polypropylene
manufacturing
catalyst
development).
In-house technology for 1-hexene manufacture.
Production of ultra-high molecular weight
polyethylene based on process and novel catalyst.
Degassing drum installation in PTA plant at
Patalganga to reduce methyl acetate losses has
resulted in a savings of ` 3 crore per annum.
Reliability improvements in coker furnace.
Potential benefit of ` 13.8 crore per annum through
research in polyester.
3. Future plan of action.
l
Creation of coking and hydroprocessing related
facilities and process development.
Process for widening of crude window through total
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Reliance Industries Limited
99
4. Expenditure on R & D
a) Capital
b) Revenue
Total
` Crore
738
380
1118
Total R & D expenditure is 0.30% of the total
turnover.
Technology absorption, adoption and innovation
1. Efforts, in brief, made towards technology
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absorption, adoption and innovation
New catalytic cracking technology for high light
olefin yields from low value hydrocarbon streams.
Purification of normal olefins from coker gas oil for
LAB production.
Selection of preferred refinery configurations, based
on economics and technology evaluation.
Selection of technology for gasification, cracking,
LDPE, LLDPE, paraxylene (PX), acetic acid and
other projects.
Improvement and innovation for in-house catalysts
with higher efficiency (activity and throughput) for
producing polypropylene.
In-house production of 1-butene catalyst.
Selection and pilot plant studies for improved
catalysts for transalkylation.
Replacement of dimethyl disulphide as sulphiding
agent with DSO in crackers.
Development of reactor models in various refinery/
petrochemicals plants.
Comparative evaluation and benchmarking of
various technologies.
PTT spinning technology development.
Technical evaluation of design of internals in new
generation polyester plants.
Development of profiled cross-section spun-lace
polyester fibre for hygiene products.
l Micro spun-lace fibre for wet wipes and hygiene
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products.
Productivity enhancement micro and super micro
polyester staple fiber.
Fine denier conjugate fibre for filling applications.
2. Benefits derived as a result of the above efforts
l
New indigenous technology development and IP
value creation.
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acid number reduction and other methods.
High-throughput facilities for catalyst development
and new product evaluation.
Computational fluid dynamics studies of plant
equipment for reliability improvement.
l Molecular characterization of crude and refinery
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streams.
Value addition to low value refinery streams.
Cetane improvement additive.
Improved catalyst system for producing impact co-
polymers and biaxially oriented polypropylene.
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system
for 1-alkene
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polymerization.
Next generation polypropylene catalyst systems for
specialty products.
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automotive
polypropylene
l Multiphasic
applications.
High performance morphological catalyst system
for slurry phase polypropylene.
Improved, high activity catalyst system for solution
phase polyethylene.
Supported high activity catalyst system for gas
phase polyethylene.
High performance catalyst system for slurry
polyethylene.
Creation of advanced polyolefins synthesis facilities
for in-house development.
Lower silver content catalyst for ethylene oxidation.
Alternative routes for 1,3-butadiene production.
Process for significant coke reduction during
thermal cracking of hydrocarbons.
Novel materials for catalyst, adsorbent, support and
gas storage applications.
New catalyst material for olefin removal from
aromatics streams.
Alternate additives / catalyst for making specialty
resins.
Spin finish for flat yarn and partially oriented yarn.
Polyester recycling initiatives for diverse end uses.
Exploring unconventional treatments of polyesters
for specific end-use requirements.
New generation technology under development for
specialty filaments.
High insulating, polyester fabrics for apparel use.
Development of different profiled cross-section
polyester fibre for filling applications.
Replacement of PVA in asbestos sheets.
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100
Fulfilling India’s Aspirations. With Innovation and Enterprise.
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Higher productivity of catalyst system and improved production rate for polypropylene.
Benefit of ` 4.2 crore by technical support to dryer problem at Hazira.
Potential benefits of ` 22.9 crore per annum from polyester technology projects.
3.
Information regarding Imported Technology
Product
Technology import from
Year of
import
Status implementation /
absorption
Isobutylene Isoprene Rubber (IIR)
Sibur, Russia
2012-13
Under Implementation
ROGC (Refinery Off-gas Cracker) for
production of Ethylene & Propylene
Technip, France
2012-13
Under implementation
Mono Ethylene Glycol (MEG)
DOW Process
Technologies, USA
2012-13
Under implementation
Linear Low Density Polyethylene Project
at Jamnagar
Univation Technologies
LLC, USA
2012-13
Under implementation
Low Density Polyethylene Project at
Jamnagar
LyondellBasell, Germany
2012-13
Under implementation
Air Separation Unit
production
for Oxygen
Linde - Germany
2012 -13 Under implementation
Petcoke Gasification for Syngas
P66 – USA
2012-13
Under implementation
Acid Gas Recovery for cleaning Syngas Linde - Germany
2012 -13 Under implementation
Partially oriented yarn/Fully drawn yarn
(POY/FDY)
Invista/ Chemtex/Barmag/
TMT
2011-2013 Plant under construction
Polyethylene Terephthalate (PET)
Invista/Chemtex/Buhler
2011-2013 Plant under construction
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 ` 2,27,883 crore (US$ 41,979 million).
2. Total Foreign exchange earned and used
a. Total Foreign Exchange Earned
b. Total savings in Foreign Exchange through products manufactured by the Company
and deemed exports (US$ 25,404 million)
Subtotal (a+b)
c. Total Foreign Exchange used
` crore
2,28,092
1,37,906
3,65,998
2,95,546
Reliance Industries Limited
101
Form ‘A’
Form for disclosure of particulars with respect to conservation of energy
Part ‘A’
Power & Fuel Consumption
1 Electricity
Current Year
Previous Year
a) 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 (`)
c) Own Generation
1)
2)
3)
Through Diesel Generator
Units (Lacs)
KWH per unit of fuel
Fuel Cost/Unit (`)
Through Steam Turbine/Generator
Units (Lacs)
KWH per unit of fuel
Fuel Cost/Unit (`)
Through Wind Mill Turbine
Units (Lacs)
Purchased Fuels consumed
2 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
5,055.13
255.92
5.06
53,679.73
6.31
4,057.95
7.56
376.40
3.88
11.08
50,761.34
5.53
6.33
3,760.66
170.58
4.54
52,605.28
5.66
3,609.07
6.86
500.03
4.08
9.31
53,212.68
4.20
5.21
23.81
24.82
36,304.06
150.27
41.39
5,266.93
25.37
48.17
19,11,848.90
5,050.61
26,417.39
35,188.69
12.18
3,460.65
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
58,11,841.76
69,39,994.21
5,68,883.09
3,56,106.53
102
Fulfilling India’s Aspirations. With Innovation and Enterprise.
B. Consumption per unit of Production
Product
Electricity
(KWH)
Furnace Oil/ HSD/
HFHSD (Ltrs)
LSHS
(kgs)
Gas
(SM3)
Current
Year
Previous
Year
Current
Year
Previous
Year
Current
Year
Previous
Year
Current
Year
Previous
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)
Cyclohexane (per MT)
4,469
2
4,566
737 715 2
362
299
624
428
418
523
294
544
237
206
73
645
2,621
493
39
2
-
-
2
-
-
357 17 13
-
-
-
-
0
0
302
- 1 0
-
593
-
-
441
2
2
- 1 0
-
432
0
0
-
-
530
0
0
2
3
301
-
-
87
89
571
-
-
-
1
245
-
-
29
55
198
-
-
3
5
73
0
8
-
-
634
3
5
-
-
2,606
(0)
6
-
-
446
-
-
-
-
37
461
446
80
77
84
73
14
13
538
481
79
72
31
34
9 15
54
46
26
44
73
66
309
270
75
70
491
482
91
92
(38)
(23)
-
-
For and on behalf of the Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
April 16, 2013
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 2013, as stipulated in
Clause 49 of the Listing Agreement of the said Company
with stock exchanges.
The compliance of conditions of Corporate Governance
is the responsibility of the Management. Our examination
has been limited to a review of the procedures and
implementation thereof adopted by the Company for
ensuring compliance with the conditions of the Corporate
Governance as stipulated in the said Clause. It is neither
an audit nor an expression of opinion on the financial
statements of the Company.
In our opinion and to the best of our information and
according to the explanations given to us and based
on the representations made by the Directors and the
Management, we certify that the Company has complied
with the conditions of Corporate Governance as stipulated
in Clause 49 of the above-mentioned Listing Agreement.
We state that such compliance is neither an assurance as
to future viability of the Company nor of the efficiency or
effectiveness with which the management has conducted
the affairs of the Company.
For Chaturvedi & Shah For Deloitte Haskins & Sells For Rajendra & Co.
Chartered Accountants
Chartered Accountants
Chartered Accountants
(Registration No. 101720W)
(Registration No. 117366W)
(Registration No. 108355W)
D. Chaturvedi
A. Siddharth
Partner
Partner
A. R. Shah
Partner
Membership No.: 5611 Membership No.: 31467
Membership No.:47166
Mumbai
April 16, 2013
Business Responsibility Report
Reliance Industries Limited
103
Section A: General Information about the
Company
1. Corporate Identity Number (CIN) of the
Company: L17110MH1973PLC019786
2. Name of the Company: Reliance Industries
Limited
divisions at Allahabad, Barabanki, Dahej,
Hazira, Hoshiarpur, Jamnagar, Nagothane,
Nagpur, Naroda, Patalganga, Silvassa,
Vadodara. Exploration and production at
KGD6 – Gadimoga, Panna Mukta Tapti, CBM
Blocks; and various other regional marketing
offices.
3. Registered address: 3rd Floor, Maker Chambers
IV, 222 Nariman Point, Mumbai 400 021, India
10. Markets served by the Company - Local/State/
National/International:
4. Website: www.ril.com
5. E-mail id: sustainability.report@ril.com
6.
7.
Financial Year reported: 2012-13
Sector(s) that the Company is engaged in
(industrial activity code-wise)
Exploration and production of Oil & Gas, Refining,
Petrochemicals
and fibre
intermediates), Textiles
(Polymers, Polyester
Industrial
Group
061
062
131
139
192
201
203
Description
Extraction of crude petroleum
Extraction of natural gas
Spinning, weaving and finishing of textiles
Manufacture of other Textiles
Manufacture of refined petroleum products
Manufacture of basic chemicals, fertilizer
and nitrogen compounds, plastics and
synthetic rubber in primary forms
Manufacture of man-made fibres
As per National Industrial Classification – Ministry of
Statistics and Programme Implementation
8. List
three key products/services
the
Company manufactures/provides (as in balance
sheet)
that
Transportation Fuels, Polymers and Polyester Fibre
9. Total number of locations where business activity
is undertaken by the Company
i.
of
Number
International Locations
(Provide details of major 5): RIL has
business activity undertaken in more than 16
international locations and the major ones are
USA, Malaysia, Kenya, Uganda, Rwanda and
Tanzania.
ii. Number of National Locations: RIL has
business activity carried out in more than
50 domestic locations with manufacturing
In addition to serving the Indian markets, RIL
exported to 116 countries worldwide, during the FY
2012-13.
Section B: Financial Details of the Company
1.
Paid up Capital (INR): 3,229 Crore
2. Total Turnover (INR): 371,119 Crore
3. Total Profit After Taxes (INR): 21,003 Crore
4. Total
spending
Social
Responsibility (CSR) as percentage of profit
after tax (%)
on Corporate
1.7%
5. List of activities in which expenditure in 4 above
has been incurred:
The major areas in which the above expenditure
has been incurred includes education, healthcare,
livelihood support, rural development, heritage
conservation, environment and safety initiatives for
the community.
Section C: Other Details
1. Does
the Company have any Subsidiary
Company/ Companies?
Yes. The number of subsidiary companies of RIL as
on March 31, 2013: 121
2. Do
the
Subsidiary Company/Companies
participate in the BR Initiatives of the parent
company? If yes, then indicate the number of
such subsidiary company(s)
Yes, RIL encourages its subsidiary companies to
participate in its group wide Business Responsibility
(BR) initiatives on a wide range of topics. All
subsidiaries are aligned to the activities under the
aegis of Reliance Foundation. RIL’s subsidiaries
like Reliance Fresh, Reliance Trends, etc. have taken
part in initiatives across issues like farm engagement
activities, training and skill development of youth,
community connected activities and promotion of
education, etc.
104
Fulfilling India’s Aspirations. With Innovation and Enterprise.
3. Do any other entity/entities (e.g. suppliers,
distributors etc.) that the Company does
business with participate in the BR initiatives
of the Company? If yes, then indicate the
percentage of such entity/entities? [Less than
30%, 30-60%, More than 60%]
Yes, RIL actively supports its suppliers and
distributors to participate in the company’s social
responsibility
initiatives.
Currently less than 30% of other entities participate
in the BR initiatives of the Company.
environmental
and
Section D: BR Information
1. Details of Director/Directors responsible for BR
a) Details of the Director/Directors responsible for
implementation of the BR policy/policies.
The Corporate Governance and Stakeholders’
the Board of
Interface (CG) Committee of
Directors is responsible for the implementation of
the BR policies. The following are the committee
members:
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DIN: 00001879
Name: Shri Yogendra P. Trivedi (Chairman)
Designation: Independent Director
DIN: 00001982
Name: Shri Mahesh P. Modi (Member)
Designation: Independent Director
DIN: 00001604
Name: Dr. Dharam Vir Kapur (Member)
Designation: Independent Director
Sl.
No.
Questions
1. Do you have policy/policies for....
2. Has the policy being formulated in consultation with the
relevant stakeholders?
3. Does the policy conform to any national / international
standards? If yes, specify? (The policies are based on the
NVG-guidelines in addition to conformance to the spirit of
international standards like ISO 9000, ISO 14000, OHSAS
18000, UNGC guidelines and ILO principles )
4. Has the policy being approved by the Board? Is yes, has
it been signed by MD/owner/CEO/appropriate Board
Director?
5. Does the company have a specified committee of the
Board/ Director/Official to oversee the implementation of
the policy?
Details
00001879
1.
b) Details of the BR head
Sl. No. Particulars
DIN
(if applicable)
Name
Designation
Telephone
number
e-mail id
2.
3.
4.
5.
Shri Yogendra P. Trivedi
Chairman of the CG Committee
022 - 2363 3600
trivedi_yogendra@yahoo.co.in
2. Principle-wise (as per NVGs) BR Policy/policies
(Reply in Y/N)
P1 – Businesses should conduct and govern themselves
with Ethics, Transparency and Accountability.
P2 – Businesses should provide goods and services that
are safe and contribute to sustainability throughout their
life cycle.
P3 – Businesses should promote the well-being of all
employees.
P4 – Businesses should respect the interests of, and be
responsive towards all stakeholders, especially those who
are disadvantaged, vulnerable and marginalized.
P5 – Businesses should respect and promote human rights.
P6 – Businesses should respect, protect, and make efforts
to restore the environment.
P7 – Businesses, when engaged in influencing public and
regulatory policy, should do so in a responsible manner.
P8 – Businesses should support inclusive growth and
equitable development.
P9 – Businesses should engage with and provide value to
their customers and consumers in a responsible manner.
P
1
Y
Y
N
Y
Y
P
2
Y1
-
-
-
-
P
3
Y
Y
P
4
Y
Y
P
5
Y
Y
P
6
Y
Y
P
7
Y
Y
P
8
Y
Y
P
9
Y
Y
Y
N
Y
Y
N
N
N
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Reliance Industries Limited
105
Sl.
No.
Questions
6.
Indicate the link for the policy to be viewed online?
7. Has the policy been formally communicated to all relevant
internal and external stakeholders?
8. Does the Company have in-house structure to implement
the policy/policies?
9. Does the Company have a grievance redressal mechanism
related to the policy/policies to address stakeholders'
grievances related to the policy/policies?
P
1
P
2
P
3
P
4
P
5
P
6
P
7
P
8
P
9
-
The policies have been communicated to key internal
stakeholders of RIL. The communication is an
on-going process to cover all internal and external
stakeholders.
Yes, the Company has an in-house structure which
is reviewed by the Corporate Governance and
Stakeholders’ Interface Committee of the Board of
Directors.
Corporate Governance and Stakeholders’ Interface
Committee of the Board of Directors undertakes the
responsibility of addressing stakeholder concerns
related to the BR policies.
10. Has the Company carried out independent audit/evaluation
of the working of this policy by an internal or external
agency?
RIL’s policies pertaining to Health, Safety and
Environment have been evaluated by external
agencies viz. DNV, LRQA, BVQi.
1The policy is embedded in the Environment policy, Business communication policy and CSR policy.
2a.
If answer to Sl. No. 1 against any principle, is 'No', please explain why: (Tick up to 2 options)
Sl.
No.
1.
2.
3.
4.
5.
Questions
P
1
P
2
P
3
P
4
P
5
P
6
P
7
P
8
P
9
The Company has not understood the Principles
The Company is not at a stage where it finds itself in a position
to formulate and implement the policies on specified principles
The Company does not have financial or manpower resources
available for the task
Not Applicable
It is planned to be done within next 6 months
It is planned to be done within the next 1 year
6. Any other reason (please specify)
3. Governance related to BR
l
Indicate the frequency with which the
Board of Directors, Committee of the
Board or CEO to assess the BR performance
of the Company. Within 3 months, 3-6
months, Annually, More than 1 year
The CG Committee assesses periodically the
BR performance of the Company.
l
Does the Company publish a BR or
a Sustainability Report? What is the
hyperlink for viewing this report? How
frequently it is published?
RIL publishes
its Sustainability Report
annually based on Global Reporting Initiative’s
latest reporting guidelines. The last published
Sustainability Report for FY 2011-12 and all
the previous reports are available at http://ril.
com/html/aboutus/sustainability_report.html
106
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Section E: Principle-wise performance
Principle 1
1. Does the policy relating to ethics, bribery and
corruption cover only the Company? Yes/No.
Does it extend to the Group/Joint Ventures
Suppliers/Contractors/ NGOs/Others?
RIL’s policy on bribery and anti-corruption covers
all individuals worldwide working with it and its
subsidiaries at all levels and grades, including
directors, senior executives, officers, employees
(whether permanent, fixed-term or temporary),
consultants, contractors or any other person
associated with RIL. The well defined policy lists
tenets on ethical business conduct, definitions and
the framework for reporting concerns.
2. How many stakeholder complaints have been
received in the past financial year and what
percentage was satisfactorily resolved by the
management? If so, provide details thereof, in
about 50 words or so.
As specified in the Report on Corporate Governance,
2826 investor complaints were received during the
FY 2012-13, which have been fully resolved. In
other cases, necessary clarifications were furnished.
Principle 2
1. List up to 3 of your products or services whose
design has incorporated social or environmental
concerns, risks and/or opportunities.
RIL has invested over the years in product innovation
and thereby reducing the adverse impact of its
operations on the environment while producing
socially relevant products. The following is a list of
some of our key innovations and the positive impact
that they have created:
a. Recron FR – Flame retardant fibres and yarn
aimed at improving the safety of the user.
b. Recron 3S - Used in the construction and
paper industry. It can replace pulp (wood)
in the paper industry and also used as a
substitute for hazardous asbestos fibre in
asbestos cement production. It is also being
used to reinforce concrete in various airports,
roads, defence establishments, etc. helping to
provide a better and safer infrastucture.
c. Recron Green - Polyester fibres of superior and
consistent quality using post-consumer PET
bottles. RIL has established a countrywide
network to collect the used PET bottles from
all over the country, which are transported
to the Company’s Hoshiarpur and Barabanki
plants, for conversion into Polyester Fibre.
2. For each such product, provide the following
details in respect of resource use (energy, water,
raw material etc.) per unit of product (optional):
i. Reduction
during
sourcing/production/
distribution achieved since the previous year
throughout the value chain.
ii. Reduction during usage by consumers
(energy, water) has been achieved since the
previous year.
3. Does the Company have procedures in place for
sustainable sourcing (including transportation)?
If yes, what percentage of your inputs was
sourced sustainably?
The Company’s motto is to establish long term
relationship with its vendors and include them in
its growth story. RIL has procedures in place to do
a thorough check before finalizing on prospective
vendors. In addition to techno-commercial aspects,
emphasis is also laid on factors like environmental
practices and existing certifications, safe working
conditions, prevention of child labour and general
housekeeping. The Company provides technical
and R&D support to vendors and shares best
practices with them. RIL’s officials interact with
them on a regular basis and also conduct periodic
audits of their facilities.
The selection procedure of RIL’s transport vendors
(Truck and Containers) involves scrutiny at various
levels like young vehicle/container fleet, presence of
mandatory inspections and safe driving procedures.
Further, the Company urges its large group of
transport vendors to focus on load and route
optimization to ensure fuel efficiency and reduce
the environmental impact due to transportation.
4. Has the Company taken any steps to procure
goods and services from local & small producers,
including communities surrounding their place
of work? If yes, what steps have been taken to
improve their capacity and capability of local
and small vendors?
In order to ensure a positive impact of sourcing
of our raw materials and other resources as well
as product distribution, RIL supports, encourages
and develops local vendors. E.g., the Company
Reliance Industries Limited
107
its packaging material at the polyester and
polymer manufacturing sites by reducing or
optimizing use of materials.
l At Jamnagar, substantial quantity of water
required for Jamnagar refinery is obtained
by desalination of sea water there by saving
the fresh water resources of the area which
is generally arid area. All the water after
industrial use is recycled and used in greenbelt,
mango groves, etc. The site has zero discharge
of water.
Principle 3
1. Please indicate the Total number of employees.
23519 as on 31st March, 2013.
2. Please indicate the Total number of
employees hired on temporary/ contractual/
casual basis.
29462 as on 31st March, 2013.
3. Please indicate the Number of permanent women
employees.
1139 as on 31st March, 2013.
4. Please
indicate the Number of permanent
employees with disabilities
82 as on 31st March, 2013.
5. Do you have an employee association that is
recognized by management?
RIL has multiple manufacturing sites and offices. It
has various unions and associations of employees
for collective bargaining at respective sites.
6. What percentage of your permanent employees
this recognized employee
is members of
association?
Almost 100% of non-supervisory permanent
employees at manufacturing locations are members
of unions and are governed by wage agreements.
7. Please indicate the Number of complaints relating
to child labour, forced labour, involuntary
labour, sexual harassment in the last financial
year and pending, as on the end of the financial
year.
developed a local vendor for the supply of a highly
hazardous chemical (Tri Ethyl Aluminium). The
same facility has been extended to the supply of two
more chemicals Di ethyl Aluminium Ethoxide and
Di ethyl Aluminium Chloride.
Various contracts have been entered with local
villagers around RIL’s plants in vehicle hiring,
material handling, housekeeping, waste handling
led
and horticulture. These contracts have
to entrepreneurship development around
the
manufacturing sites and have created employment
for the local populace.
Through financial assistance and encouragement,
the Company has supported many small suppliers,
predominantly civil contractors and
transport
suppliers, some of whom have now entered into
second and third generation of service. With RIL’s
credentials to support them, these local vendors
have now been able to secure work contracts in
other companies and nearby locations.
5. Does the Company have a mechanism to recycle
products and waste? If yes, what is the percentage
of recycling of products and waste (separately
as <5%, 5-10%, >10%). Also, provide details
thereof, in about 50 words or so.
l RIL partners with various agencies
to
encourage end-of-life recycling and reuse.
It has established a countrywide network
to collect the used PET bottles from all
over the country, which are transported to
the Hoshiarpur and Barabanki plants, for
conversion of such bottles into Polyester
Fibre. This project has seen a steady increase
in the requirement of post-consumer PET
bottle requirement per month.
l Company recycled materials amounts to less
than 1% of its total material consumption.
l At
vermi-composting,
the
the Naroda manufacturing unit,
industrial waste is converted into manure
significantly
through
reducing the waste discharged from the plant.
The Effluent Treatment Plant (ETP) sludge is
now utilized to generate ‘bio-manure’ through
this vermi-composting method.
l The Company has also focused on reducing
108
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Category
Sl.
No.
of
No
financial year
complaints
filed during
the
No of complaints pending
as on end of the financial year
1. Child labour/forced
labour/involuntary labour
Sexual harassment
2.
3. Discriminatory
employment
or
Involuntary
Since RIL does not hire Child Labour,
Forced
Labour.
Labour
No Reported Case.
No Reported Case
RIL does not discriminate in the recruitment
process. No Reported Case.
Not Applicable
Not Applicable
Not Applicable
8. What safety & skill up-gradation training was
provided in the last year?
l
l
l
l
Permanent Employees
Permanent Women Employees
Casual/Temporary/Contractual Employees
Employees with Disabilities
Employee training and development is an essential
the Company’s people strategy.
element of
RIL has a robust training procedure and it does
not differentiate on any parameters in terms of
identifying and imparting training to its employees.
RIL’s permanent employees received safety and
skill up-gradation training to the tune of 18.67
lac man hours in 2012-13.The permanent women
employees received 0.84 lac man hours of training,
casual /temporary /contractual employees received
2.63 lac man hours of training and employees with
disabilities received 133 man hours of training. All
its contractual employees receive mandatory safety
training before entering their premises and receive
on the job training through the contractor and the
Company.
Principle 4
1. Has the company mapped its internal and
external stakeholders?
Yes. The stakeholders have been mapped and the
key categories are as below:
i) Government and regulatory authorities
ii) Employees
iii) Customers
iv) Local community
v)
Investors and shareholders
vi) Suppliers
vii) Trade unions
viii) NGOs
is a
structured
RIL engages with its identified stakeholders on an
ongoing basis through a constructive consultation
process. There
stakeholder
engagement programme which entails specific
engagement mechanisms for each stakeholder
group. The Company follows a system of timely
feedback and response through formal and informal
channels of communication to ensure that the
stakeholder
remains current and
updated.
information
2. Out of the above, has the Company identified
the disadvantaged, vulnerable & marginalized
stakeholders?
Yes. The Company has identified the disadvantaged,
vulnerable & marginalized stakeholders.
3. Are there any special initiatives taken by the
Company to engage with the disadvantaged,
vulnerable and marginalized stakeholders. If so,
provide details thereof, in about 50 words or so.
A large number of RIL’s livelihood support
programmes are women centric and have helped
them become independent and gain a steady
source of income through a range of different
vocations. The Company also aims to improve
the access to quality education through adopting
schools in and around its manufacturing units.
These educational institutions include children
from the underprivileged communities whose fee
is completely or partially waived. Meritorious
students are assisted with scholarships to pursue
higher education in the colleges. Students who
are physically challenged are specially assisted
to pursue high education in colleges. During
the FY 2012-13, 788 rewards and scholarships
were conferred. Additionally, ‘Mumbai Indians’
supported projects in areas of providing access to
quality education for underprivileged children,
supporting girl child education, imparting life skills
to the differently-abled and creating a level field by
providing support classes to the vulnerable children.
Reliance Industries Limited
109
as contractors, suppliers and customers for shared
responsibility
towards environment protection.
RIL encourages sharing of process and product
innovations within the group and extending it to
benefit the industry and key members of its value
chain.
2. Does the Company have strategies/initiatives
to address global environmental issues such as
climate change, global warming, etc? Y/N. If yes,
please give hyperlink for webpage etc.
Yes. One of the key strategic pillars of RIL’s
sustainability strategy is ensuring energy security. In
its endeavour to become a key global energy player,
the Company has strengthened its focus in recent
years on opportunities to harness alternative energy
sources. RIL undertakes continuous activities to
improve energy efficiency and thereby improve
its Green House Gas (GHG) performance. It has
a separate Clean Development Mechanism Cell to
focus on climate change mitigation projects.
3. Does the Company identify and assess potential
environmental risks? Y/N
Yes. RIL has a mechanism to identify potential
environmental risks at all
its manufacturing
divisions and E&P locations. Mitigation measures
and the environmental parameters are internalized at
all stages of project design, execution, construction,
operation and maintenance.
All of the Company’s manufacturing divisions/
locations are ISO 14001, ISO 18001 certified. In
addition, all these sites have also been covered
under the British Safety Council UK’s environment
five star audit. The periodic audits help RIL identify
potential risks at our locations.
4. Does the Company have any project related to
Clean Development Mechanism? If so, provide
details thereof, in about 50 words or so. Also,
if Yes, whether any environmental compliance
report is filed?
Yes. RIL’s registered and prospective Clean
Development Mechanism (CDM) projects are
related
to energy efficiency enhancements,
renewable energy projects and use of biomass
in the process as a fuel. In FY 2012-13, three of
its CDM projects got a total of 34692 Certified
Emission Reductions
from
United Nations Framework Convention on Climate
Change (UNFCCC) post submission of validation
and verification reports. Audit of one more project
has been completed and request for issuance of
(“CERS”)
issued
RIL partners with the National Association for
the Blind for providing free cornea transplants
for the underprivileged and providing aid towards
diagnosis of blindness at an early age. In 2012
Reliance Drishti launched India’s first registered
national Braille newspaper in Hindi. For its
trucker community RIL conducts AIDS awareness
programs on a large scale including skits and role
plays. ‘Hamrahi’, a clinic operating in Allahabad
provides voluntary testing and counselling for HIV/
AIDS primarily for truckers and nearby residents.
The ART Centre at Hazira has catered to more than
78,000 patients. Further, the employees at E&P
sites and the Reliance Ladies Club (an association
of spouses of RIL managerial employees) at Hazira
with initiatives “Chirudeepam” and “Project Hope”
respectively support children affected by AIDS and
supply them with nutritive kit every month, as per
the WHO standard.
Principle 5
1. Does the policy of the Company on human rights
cover only the Company or extend to the Group/
Joint Ventures/ Suppliers/ Contractors/ NGOs/
Others?
that a
The Company believes
sustainable
organization rests on a foundation of ethics and
respect for human rights. RIL adheres to the
statutes of India’s Factories Act, 1948, which
embodies some of the human rights principles such
as prevention of child labour, forced labour and
compulsory labour. RIL promotes awareness of the
importance of respecting human rights within its
value chain and discourage instances of abuse.
2. How many stakeholder complaints have been
received in the past financial year and what
percent was satisfactorily resolved by the
management?
There were no reported complaints during the FY
2012-13.
Principle 6
1. Does the policy related to Principle 6 cover only
the Company or extends to the Group/Joint
Ventures/Suppliers/Contractors/NGOs/others.
Nurturing and safeguarding the environment for
long-term sustainability is the primary objective
of RIL’s environment policy. The Company strives
to inculcate the responsibility of environmental
preservation and management not only amongst its
employees but also other stakeholder groups such
110
Fulfilling India’s Aspirations. With Innovation and Enterprise.
86912 CERs will shortly be submitted to UNFCCC.
Environmental aspects of each CDM project are
elaborated in details as part of its Project Design
Document and the Company does not file any
separate report for environmental compliance for
its CDM Projects. It is ensured that all necessary
environmental and statutory clearances are in place
for the CDM projects.
5. Has
the Company undertaken any other
initiatives on - clean technology, energy efficiency,
renewable energy, etc. Y/N. If yes, please give
hyperlink for web page etc.
Yes. Increasing energy efficiency across all
manufacturing divisions forms an integral part of
RIL’s operations. Each of the Company’s facilities
places special emphasis to identify and undertake
initiatives to enhance their energy efficiency.
Please refer to Page No. 91 of the annual report
for energy conservation initiatives. RIL’s corporate
head office has been taken up as demonstration
project for deployment of renewable energy and
sustainable waste management. During 2012-13
it has undertaken installation of solar photovoltaic
panels on rooftop, utilization of daylight through
“light pipes” and generation of biogas and organic
manure by anaerobic digestion of food and garden
waste. RIL continues to focus on renewable energy
opportunities and during the year a feasibility study
for assessing repowering potential of its existing
wind farms at Upleta was initiated. Wind power
generation at Jamnagar is also under consideration.
As the sole industry partner in the New Millennium
Indian Technology Leadership Initiative project on
indigenous PEM Fuel Cell technology development,
RIL is playing a major role in scale-up trials of
PEM fuel cells after recently concluded successful
demonstration of the PEM fuel cell technology in
the lab.
6. Are the Emissions/Waste generated by the
Company within the permissible limits given
by CPCB/SPCB for the financial year being
reported?
Yes. Our emissions/waste generated
reports
are regularly submitted to CPCB/SPCB by the
Company and no non-conformances have been
observed.
7. Number of show cause/legal notices received
from CPCB/SPCB which are pending (i.e. not
resolved to satisfaction) as on end of Financial
Year.
There are no pending or unresolved show cause/
legal notices received from CPCB/SPCB as on end
of the FY 2012-13.
Principle 7
1.
Is your Company a member of any trade and
chamber or association? If yes, name only those
major ones that your business deals with.
Yes. RIL is a member of The World Economic
Forum, The American Chemistry Council (ACC),
Indian Chemical Council (ICC), The Chemicals and
Petroleum Manufacturers Association (CPMA),
Gulf Petrochemicals & Chemicals Association
(GPCA), European Petrochemicals Association
(EPCA), Association of Oil and Gas Operators in
India (AOGO) and World Business Council for
Sustainable Development (WBCSD).
2. Have
you
advocated/lobbied
through
above associations for the advancement or
improvement of public good? Yes / No; if yes
specify the broad areas ( drop box: Governance
and Administration, Economic Reforms,
Inclusive Development
Energy
security, Water, Food Security, Sustainable
Business Principles, Others)
Policies,
RIL works closely with the Indian Centre for
Plastics in the Environment (ICPE) on a voluntary
basis and provide technical and financial support to
help the organization plan and implement initiatives
identified by the chemical and petrochemical
industries.
Principle 8
1. Does the Company have specified programmes/
initiatives/projects in pursuit of the policy related
to Principle 8? If yes details thereof.
RIL has a CSR policy that reflects its objective of
economic and social development. It also reflects
the Company’s intent to utilise energy resources
responsibly and engage with its stakeholders
to understand their needs and respond to them
accordingly. Further information about the specified
programmes and initiatives in pursuit of the policy
can be found in the Report on Corporate Social
Responsibility on Page No. 49 of the annual report.
2. Are
the programmes/projects undertaken
foundation/
through
team/own
external NGO/government structures/any other
organization?
in-house
RIL has instituted registered Trusts and Foundations
to cater to the various socio-economic needs of the
country. They are as listed below:
Reliance Industries Limited
111
Principle 9
1. What percentage of customer complaints/
consumer cases are pending as on the end of
financial year?
RIL conducts regular Customer Relation Meets
(CRM) to educate and appraise customers about
all aspects of its products and takes their feedback
their concerns.
in addition
to understanding
The Company has a separate framework
to
deal with customer complaints. As at 31st March
2013, of the customer complaints received during
the FY 2012-13, 98.8% were resolved.
2. Does the Company display product information
on the product label, over and above what
is mandated as per local laws? Yes/No/N.A./
Remarks (additional information)
All marketing communication efforts of
the
Company adhere to the brand standards/ guidelines
with regard to visual manifestation, brand promise
and relevancy and saliency of the target group. RIL
follows all legal statutes with respect to product
labelling and display of product information.
Is there any case filed by any stakeholder against
the Company regarding unfair trade practices,
irresponsible advertising and/or anti-competitive
behaviour during the last five years and pending
as on end of financial year? If so, provide details
thereof, in about 50 words or so.
Nil
4. Did your Company carry out any consumer
survey/ consumer satisfaction trends?
Yes. Third-party mystery customer audits, customer
satisfaction index and call centre evaluation studies
are conducted periodically to ensure fulfilment
of the service delivery promise, conformance to
internal norms and standards, identification of
process improvement areas, and to understand
customer attitude and behaviour. After every
financial year customer feedback formats are sent
to customers and based on the score received
from the customers, customer satisfaction index
is plotted for the specific products. Other modes
of tapping customer feedback are web based
customer experience surveys, factory visits for
customers and direct one-on-one meeting with the
plant personnel. RIL considers customer complaint
redressal as an integral part of customer care and
customer satisfaction and of prime importance to
the Company.
l Reliance Rural Development Trust (RRDT)
l Dhirubhai Ambani Foundation (DAF)
l Reliance Foundation (RF)
l Sir Hurkisondas Nurrotumdas Hospital and
Research Centre
3. Have you done any impact assessment of your
initiative?
RIL continuously seeks feedback to understand the
impact of its initiatives which also includes visits
by its CSR teams on a periodic basis. In addition
feedback is also sought from the village heads/
Sarpanch to get an understanding of the impacts of
the initiatives and opportunities for improvement.
Recently, Reliance Foundation applied for ISO
certification for
its Bharat India Jodo (BIJ)
programme. A team of external auditors conducted
a site audit at Netrang cluster and the same was
followed by documentation audit. A letter of
Recommendation for ISO 9001 Certification has
been issued by the auditors.
4. What is your Company's direct contribution to
community development projects- Amount in
INR and the details of the projects undertaken?
3.
Community Development expenditure incurred by
RIL is on various projects pertaining to education,
healthcare, livelihood support, rural development,
heritage conservation, environment, safety etc.
RIL’s contribution to community development
amounts to ` 351 Crores during FY 2012-13.
5. Have you taken steps to ensure that this
community development initiative is successfully
adopted by the community? Please explain in 50
words or so.
through
The Company involves the community in decision-
making process, right from the problem identification
stage,
implementation. The extensive
engagement with the community establishes joint
ownership of projects. All concerns are amicably
addressed and the initiatives are adopted since they
are designed as per the identified and prioritized
needs of the communities, implemented with
the active participation of the communities and
progress is jointly evaluated with the community
representatives. Regular verification is conducted
by teams to ensure that initiatives implemented are
sustained while feedback provided by community
is incorporated and the learning cycle is mapped for
each initiative.
112
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Financial Statements & Notes
Independent Auditors’ Report
To the Members of
Reliance Industries Limited
Report on the Financial Statements
We have audited the accompanying financial statements
of Reliance Industries Limited (“the Company”), which
comprise the Balance Sheet as at March 31, 2013, the
Statement of Profit and Loss and Cash Flow Statement
for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management’s Responsibility for the Financial
Statements
Management is responsible for the preparation of these
financial statements that give a true and fair view of the
financial position, financial performance and cash flows of
the Company in accordance with the accounting principles
generally accepted in India including Accounting Standards
referred to in Section 211(3C) of the Companies Act,
1956 (“the Act”). This responsibility includes the design,
implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these
financial statements based on our audit. We conducted our
audit in accordance with the Standards on Auditing issued
by the Institute of Chartered Accountants of India. Those
Standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain
audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on
the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant
to the Company’s preparation and fair presentation of the
financial statements in order to design audit procedures that
are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of accounting policies used
and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
Reliance Industries Limited
113
financial statements give the information required by the
Act in the manner so required and give a true and fair view
in conformity with the accounting principles generally
accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs
of the Company as at March 31, 2013;
(b) In the case of the Statement of Profit and Loss, of the
profit for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash
flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report)
Order, 2003 (“the Order”) issued by the Central
Government of India in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report
b.
that:
a. We have obtained all the information and
explanations which to the best of our knowledge
and belief were necessary for the purpose of our
audit;
In our opinion, proper books of account as
required by law have been kept by the Company
so far as appears from our examination of those
books.
The Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement dealt with
by this Report are in agreement with the books
of account.
In our opinion, the Balance Sheet, the Statement
of Profit and Loss, and the Cash Flow Statement
comply with the Accounting Standards referred
to in section 211(3C) of the Act;
d.
c.
e. On the basis of the written representations
received from the directors as on March
31, 2013, taken on record by the Board of
Directors, none of the directors is disqualified
as on March 31, 2013, from being appointed
as a director in terms of Section 274(1)(g) of
the Act.
For Chaturvedi & Shah
Chartered Accountants
(Registration No. 101720W)
For Deloitte Haskins & Sells
Chartered Accountants
(Registration No. 117366W)
For Rajendra & Co.
Chartered Accountants
(Registration No. 108355W)
D. Chaturvedi
Partner
Membership No.: 5611
A. Siddharth
Partner
Membership No.: 31467
A. R. Shah
Partner
Membership No.:47166
Mumbai
Date : April 16, 2013
114
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Annexure to Independent Auditors’ Report
Referred to in Paragraph 1 under the heading of “Report on other Legal and Regulatory Requirements” of our report of even date
1.
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.
2.
3.
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.
c)
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.
b)
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 ` 20,316 crore and the
year-end balance is ` 18,226 crore (including
interest free loan of ` 13,944 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.
d)
b)
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.
(b)
In our opinion and according to the information
and explanations given to us, there is an adequate
internal control system commensurate with the size
of the Company and the nature of its business for the
purchases of inventory and fixed assets and for the
sale of goods and services. During the course of our
audit, we have not observed any continuing failure to
correct major weaknesses in internal control system.
In respect of the contracts or arrangements referred
to in Section 301 of the Companies Act, 1956:
(a)
In our opinion and according to the information
and explanations given to us, the transactions
made in pursuance of contracts or arrangements
that need to be entered in the register maintained
under Section 301 of the Companies Act, 1956
have been so entered.
In our opinion and according to the information
and explanations given to us, the transactions
made in pursuance of contracts / arrangements
entered in the Register maintained under
section 301 of the Companies Act, 1956 and
exceeding the value of ` 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.
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.
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
4.
5.
6.
7.
8.
9.
Reliance Industries Limited
115
Annexure to Independent Auditors’ Report
Referred to in Paragraph 1 under the heading of “Report on other Legal and Regulatory Requirements” of our report of even date
Tax, Wealth Tax, Service Tax, Customs Duty,
Excise Duty, Cess, and other statutory dues
have been generally regularly deposited with
the appropriate authorities. According to the
information and explanations given to us, no
undisputed amounts payable in respect of the
aforesaid dues were outstanding as at March
31, 2013 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, 2013 to be credited
to Investor Education and Protection Fund of
` 10 crore, which are held in abeyance due to
pending legal cases, have not been considered.
b) The disputed statutory dues aggregating
` 1,035 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)
Period to which
the amount relates
1.
Central Excise
Act, 1944
Excise Duty and
Service Tax
17 Various years from
1995-96 to 2010-11
111 Various years from
1991-92 to 2010-11
1 Various years from
1982-83 to 1985-86
60 Various years from
1991-92 to 2009-10
2.
Central Sales Tax
Act, 1956 and
Sales Tax Acts
of various states
Sales Tax/ VAT
and Entry Tax
Forum
where dispute
is pending
Commissioner of
Central Excise
(Appeals)
Central Excise
& Service Tax
Appellate Tribunal
High Court
Joint/Deputy
Commissioner/
Commissioner
(Appeals)
450 Various years from
1993-94 to 2008-09
Sales Tax Appellate
Tribunal
125 Various years
from 1994-95
to 2009-10
High Court
1 2007-08 to 2008-09
Supreme Court
3.
Customs
Act, 1962
Custom Duty
15 2007-08
255 2007-08
Joint/Deputy
Commissioner/
Commissioner
(Appeals)
Central Excise
& Service Tax
Appellate Tribunal
TOTAL
1,035
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 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
Chartered Accountants
(Registration No. 101720W)
For Deloitte Haskins & Sells
Chartered Accountants
(Registration No. 117366W)
For Rajendra & Co.
Chartered Accountants
(Registration No. 108355W)
D. Chaturvedi
Partner
Membership No.: 5611
A. Siddharth
Partner
Membership No.: 31467
A. R. Shah
Partner
Membership No.:47166
Mumbai
Date : April 16, 2013
116
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Reliance Industries Limited
balance Sheet as at 31st March, 2013
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
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
Mumbai
Date : April 16, 2013
A. Siddharth
Partner
A.R. Shah
Partner
K. Sethuraman
Company Secretary
Note
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
1
2
1
3
4
5
6
7
8
9
9
9
9
10
11
12
13
14
15
16
17
3,229
1,76,766
3,271
1,62,825
1,79,995
25
1,66,096
-
48,034
12,122
55,205
60,156
10,593
40,324
13,713
4,258
83,286
3,18,511
68,888
2,95,140
88,001
25,722
3,695
4,059
26,979
14,340
1,74,535
1,62,796
27,029
35,955
18,424
39,598
11,089
249
43,012
12,193
11,511
45,787
21,640
4,348
82,962
26,786
13,525
5,591
24,143
21,528
28,366
42,729
11,880
49,547
10,974
480
1,43,976
3,18,511
1,32,344
2,95,140
1 to 36
For and on behalf of the Board
M.D. Ambani
- Chairman & Managing Director
N.R. Meswani } Executive Directors
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
R.H. Ambani }Directors
M.L. bhakta
y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Reliance Industries Limited
Statement of Profit and Loss for the year ended 31st March, 2013
Reliance Industries Limited
117
Note
2012-13
(` in crore)
2011-12
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
Earnings per equity share of face value of ` 10 each
Basic and Diluted (in `)
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
Mumbai
Date : April 16, 2013
A. Siddharth
Partner
A.R. Shah
Partner
K. Sethuraman
Company Secretary
18
19
20
21
22
23
24
25
3,60,297
7,998
3,29,904
6,192
3,68,295
3,36,096
3,06,127
502
(3,317)
3,354
3,036
9,465
22,844
3,42,011
26,284
5,244
37
21,003
2,74,814
1,441
(872)
2,862
2,667
11,394
18,040
3,10,346
25,750
5,150
560
20,040
26
64.82
61.21
1 to 36
For and on behalf of the Board
M.D. Ambani
- Chairman & Managing Director
N.R. Meswani } Executive Directors
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
R.H. Ambani }Directors
M.L. bhakta
y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
118
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Reliance Industries Limited
Cash Flow Statement for the year 20 12-13
2011-12
A: CASH FLOW FROM OPERATING ACTIVITIES:
Net Profit before tax as per Statement of Profit and
Loss
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)
Net Cash from Operating Activities
b: CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of Fixed Assets
Sale of Fixed Assets / Transfer of Participating Interest
Purchase of Investments
Sale / Redemption of Investments
Movement in Loans and Advances
Interest Income
Dividend Income
Net Cash (used in) Investing Activities
2012-13
26,284
(` in crore)
2011-12
25,750
1
21
13,734
(2,340)
801
(1,635)
(10)
(4,414)
2,667
(516)
(6,130)
3,876
3
34
11,537
(2,072)
1,039
(1,658)
(77)
(6,245)
3,036
5,594
(6,086)
6,274
5,597
31,881
5,782
37,663
(3)
(4,665)
32,995
(15,944)
33
(4,79,071)
4,81,203
(7,546)
6,451
77
(14,797)
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
10
(3,046)
Cash Flow Statement for the year 2012-13 (Contd.)
Reliance Industries Limited
119
2011-12
C: CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from Issue of Share Capital
Share Application Money
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) Financing Activities
Net Increase in Cash and Cash Equivalents
Opening balance of Cash and Cash Equivalents
Add: On Amalgamation (` 16,96,263)
(Refer Note No. 33)
Closing balance of Cash and Cash Equivalents
Note :
2012-13
12
25
(3,087)
10,262
(10,306)
1,274
(2,924)
(3,505)
(8,249)
9,949
39,598
-
49,547
(` in crore)
2011-12
87
-
(279)
5,229
(8,456)
(2,111)
(2,772)
(3,163)
(11,465)
12,463
27,135
-
39,598
Share application money given to Subsidiary / Associate aggregating to ` NIL (Previous Year ` 935 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
Mumbai
Date : April 16, 2013
A. Siddharth
Partner
A.R. Shah
Partner
K. Sethuraman
Company Secretary
For and on behalf of the Board
M.D. Ambani
- Chairman & Managing Director
N.R. Meswani } Executive Directors
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
R.H. Ambani }Directors
M.L. bhakta
y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
120
Fulfilling India’s Aspirations. With Innovation and Enterprise.
SIGNIFICANT ACCOuNTING POLICIES
A. basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost convention, except for certain fixed assets which
are revalued, in accordance with the generally accepted accounting principles in India and the provisions of the
Companies Act, 1956.
b. use of Estimates
The preparation of financial statements requires estimates and assumptions to be made that affect the reported
amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and
expenses during the reporting period. Difference between the actual results and estimates are recognised in the
period in which the results are known/ materialised.
C. Own Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulated
depreciation and impairment loss, if any. All costs, including financing costs till commencement of commercial
production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations
attributable to the fixed assets are capitalised.
D. Leased Assets
a)
b)
Operating Leases: Rentals are expensed with reference to lease terms and other considerations.
(i) Finance leases prior to 1st April, 2001: Rentals are expensed with reference to lease terms and other
considerations.
(ii) Finance leases on or after 1st April, 2001: The lower of the fair value of the assets and present value
of the minimum lease rentals is capitalised as fixed assets with corresponding amount shown as lease
liability. The principal component in the lease rental is adjusted against the lease liability and the interest
component is charged to Profit and Loss account.
c) However, rentals referred to in (a) or (b) (i) above and the interest component referred to in (b) (ii) above
pertaining to the period upto the date of commissioning of the assets are capitalised.
d) All assets given on finance lease are shown as receivables at an amount equal to net investment in the lease.
Initial direct costs in respect of lease are expensed in the year in which such costs are incurred. Income from
lease assets is accounted by applying the interest rate implicit in the lease to the net investment.
E.
Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation / depletion.
All costs, including financing costs till commencement of commercial production, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalised.
F. Depreciation 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
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
Reliance Industries Limited
121
SIGNIFICANT ACCOuNTING POLICIES
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.
G.
Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is
charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss
recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
H. Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of
the transaction or that approximates the actual rate at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of
items which are covered by forward exchange contracts, the difference between the year end rate and rate on
the date of the contract is recognised as exchange difference and the premium paid on forward contracts is
recognised over the life of the contract.
(c) Non monetary foreign currency items are carried at cost.
(d) In respect of branches, which are integral foreign operations, all transactions are translated at rates prevailing
on the date of transaction or that approximates the actual rate at the date of transaction. Branch monetary
assets and liabilities are restated at the year end rates.
(e) Any income or expense on account of exchange difference either on settlement or on translation is recognised
in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed
assets, in which case they are adjusted to the carrying cost of such assets.
I.
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.
J.
Inventories
Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if
any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing
overheads incurred in bringing them to their respective present location and condition. Cost of raw materials, process
chemicals, stores and spares, packing materials, trading and other products are determined on weighted average
basis. By-products are valued at net realisable value.
K. Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection.
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.
L. Excise Duty / Service Tax and Sales Tax / Value Added Tax
Excise duty / Service tax is accounted on the basis of both, payments made in respect of goods cleared / services
122
Fulfilling India’s Aspirations. With Innovation and Enterprise.
SIGNIFICANT ACCOuNTING POLICIES
provided as also provision made for goods lying in bonded warehouses. Sales tax / Value added tax paid is charged
to Profit and Loss account.
M. Employee Benefits
(i) Short-term employee benefits are recognised as an expense at the undiscounted amount in the Profit and Loss
account of the year in which the related service is rendered.
(ii) Post employment and other long term employee benefits are recognised as an expense in the Profit and Loss
account for the year in which the employee has rendered services. The expense is recognised at the present
value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in
respect of post employment and other long term benefits are charged to the Profit and Loss account.
N. Employee Separation Costs
Compensation to employees who have opted for retirement under the voluntary retirement scheme of the Company
is charged to the Profit and Loss account in the year of exercise of option.
O. borrowing Costs
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part
of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for
its intended use. All other borrowing costs are charged to Profit and Loss account.
P.
Financial Derivatives and Commodity Hedging Transactions
In respect of derivative contracts, premium paid, gains / losses on settlement and 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.
q. Accounting for Oil and Gas Activity
The Company has adopted Full Cost Method of accounting for its Oil and Gas activity and all costs incurred in
acquisition, exploration and development are accumulated considering the country as a cost centre. Oil and Gas
Joint Ventures are in the nature of Jointly Controlled Assets. Accordingly, assets and liabilities as well as income
and expenditure are accounted on the basis of available information on line by line basis with similar items in the
Company’s financial statements, according to the participating interest of the Company.
R. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the
Income-tax Act, 1961. Deferred tax resulting from “timing difference” between taxable and accounting income is
accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset
will be realised in future.
S. Premium on Redemption of bonds / Debentures
Premium on redemption of bonds / debentures, net of tax impact, are adjusted against the Securities Premium
Account.
T. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation
as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not
recognised but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial
statements.
Reliance Industries Limited
123
Notes on Financial Statements for the year ended 31st March, 2013
The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.
1.
SHARE CAPITAL
Authorised Share Capital:
500,00,00,000
(500,00,00,000)
100,00,00,000
(100,00,00,000)
Equity Shares of ` 10 each
Preference Shares of ` 10 each
Issued, Subscribed and Paid up:
322,86,63,382
(327,10,59,340)
Equity Shares of ` 10 each fully paid up
Less: Calls in arrears - by others
[` 3,653 (Previous Year ` 3,653)]
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
5,000
1,000
6,000
5,000
1,000
6,000
3,229
-
3,271
-
3,229
3,229
3,271
3,271
1.1
1.2
1.3
1.4
1.5
TOTAL
162,67,93,078
(162,67,93,078)
6,92,52,623
(12,93,93,183)
45,04,27,345
(45,04,27,345)
17,18,83,624
(17,18,83,624)
4,62,46,280
(36,63,431)
Shares were allotted as Bonus Shares in the last five years by capitalisation of Securities Premium
and Reserves.
Shares were allotted in the last five years pursuant to the various Schemes of amalgamation
without payments being received in cash.
Shares were allotted on conversion / surrender of Debentures and Bonds, conversion of Term
Loans, exercise of warrants, against Global Depository Shares (GDS) and re-issue of forfeited
equity shares, since inception.
Shares held by Subsidiaries do not have Voting Rights and are not eligible for Bonus Shares
Shares were bought back and extinguished in the last five years.
1.6 The details of Shareholders holding more than 5% shares :
Name of the Shareholder
Life Insurance Corporation of India
As at
31st March, 2013
As at
31st March, 2012
No. of Shares % held No. of Shares % held
25,77,59,467
7.09
7.98 23,19,67,257
1.7
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
No. of Shares
327,33,74,008
13,48,763
36,63,431
327,10,59,340
1.8 The Company has reserved issuance of 13,37,43,590 (Previous year 13,39,30,481) 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 not granted any options to the eligible employees [Previous year 68,817 options,
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 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.
As at
31st March, 2013
No. of Shares
327,10,59,340
1,86,891
4,25,82,849
322,86,63,382
124
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
1.9 Share application money pending allotment represents application money received on account of employees stock
option scheme.
2.
RESERVES AND SuRPLuS
Revaluation Reserve
As per last Balance Sheet
Less: Transferred to Profit and Loss Account (Refer Note No. 9.9)
Capital Reserve
As per last Balance Sheet
Capital Redemption Reserve
As per last Balance Sheet
Add : On Amalgamation (Refer Note No. 33)
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 : On Amalgamation (Refer Note No. 33)
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 ` 9.0/- (Previous year ` 8.5/-)]
Tax on dividend**
TOTAL
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
3,127
2,072
5,467
2,340
1,055
291
3,127
291
4
1
43
50,677
12
50,689
-
3,044
47,645
-
-
-
4
48
4
50,878
85
50,963
11
275
50,677
-
47,645
1,117
50,677
1,117
1,00,000
18,000
84,000
16,000
1,18,000
1,00,000
7,609
1,116
21,003
29,728
18,000
43
2,628
447
6,514
-
20,040
26,554
16,000
4
2,531
410
8,610
1,76,766
7,609
1,62,825
* Cumulative amount withdrawn on account of Depreciation on Revaluation is ` 2,563 crore.
Reliance Industries Limited
125
Notes on Financial Statements for the year ended 31st March, 2013
** Proposed Dividend on Equity Shares and Tax on Dividend are net of reversal of excess provision of previous
year pertaining to Equity Shares bought back before the record date of Dividend, aggregating to ` 17 crore.
3.
LONG TERM bORROWINGS
Secured
Non Convertible Debentures
Long Term Maturities of Finance Lease Obligations
(Refer Note No. 9.7 and 30)
unsecured
Bonds
Term Loans- from banks
Deferred payment liabilities
TOTAL
(` in crore)
As at
31st March, 2013
Current
Non
Current
As at
31st March, 2012
Current
Non
Current
1,842
147
4,182
22
6,024
168
3,044
20
1,989
4,204
6,192
3,064
9,066
31,951
6
41,023
43,012
-
13,697
3
13,700
17,904
4,564
37,269
9
41,842
48,034
-
6,753
3
6,756
9,820
3.1 Non Convertible Debentures referred above to the extent of:
a)
b)
` 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 units) of the Company.
` 2,500 crore are secured by way of first mortgage / charge on the immovable properties situated at Jamnagar
Complex (other than SEZ units) of the Company.
c) ` 1,300 crore are secured by way of first mortgage / charge on all the properties situated at Hazira Complex
d)
e)
f)
g)
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.
` 30 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.
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%
Zero Coupon Debentures
2014-15
133
-
250
-
26
2015-16
133
-
-
-
31
2016-17
133
-
-
-
-
2017-18
133
-
-
-
-
2018-19
133
-
-
370
-
3.3
Finance Lease obligations are secured against leased assets.
(` in crore)
2020-21
-
500
-
-
-
126
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
3.4 Maturity profile and Rate of interest of Bonds are as set out below :
Maturity Profile
(` in crore)
2015-16
932
-
-
-
-
-
-
-
-
-
-
-
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%
2096-97
-
-
-
-
-
-
-
-
-
68
-
-
3.5 Bonds include, 5.875% Senior Perpetual Notes (the “Notes”) of ` 4,343 crore. The Notes have no fixed maturity
date and the Company will have an option, from time to time, to redeem the Notes, in whole or in part, on any semi-
annual interest payment date on or after February 5, 2018 at 100% of the principal amount plus accrued interest.
Maturity Profile of Unsecured Term Loans are as set out below :
2016-17
-
271
879
-
706
-
-
-
-
-
355
-
2018-19
-
-
-
206
-
923
-
-
-
-
-
-
2046-47
-
-
-
-
-
-
-
-
-
-
-
52
2026-27
-
-
-
-
-
-
-
184
120
-
-
-
2027-28
-
-
-
-
-
-
27
-
-
-
-
-
3.6
Term Loans- from banks
1-2 years
3,637
4. DEFERRED TAx LIAbILITy (Net)
31st March, 2012
Deferred Tax Liability
Related to fixed assets
Deferred Tax Assets
Disallowances under the Income Tax Act, 1961
TOTAL
5.
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/Packing Credit
Rupee Loans
TOTAL
Maturity Profile
2-3 years
6,525
3-4 years
8,854
beyond 4 years
12,935
(` in crore)
(` in crore)
As at
31st March, 2013
As at
31st March, 2012
12,293
100
12,193
12,207
85
12,122
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
406
27
738
19
433
757
10,978
100
9,736
100
11,078
11,511
9,836
10,593
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.
Reliance Industries Limited
127
Notes on Financial Statements for the year ended 31st March, 2013
6. TRADE PAyAbLES
Micro, Small and Medium Enterprises
Others
TOTAL
(` in crore)
As at
31st March, 2013
66
45,721
45,787
As at
31st March, 2012
33
40,291
40,324
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
7. OTHER CuRRENT LIAbILITIES
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
Other Payables *
TOTAL
*
#
(` in crore)
As at
31st March, 2013
-
-
-
-
-
-
-
As at
31st March, 2012
-
-
-
-
-
-
-
(` in crore)
As at
31st March, 2013
17,882
22
As at
31st March, 2012
9,800
20
340
152
1
1
1,430
1,812
21,640
424
129
1
1
1,189
2,149
13,713
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 ` 10 crore (Previous Year ` 9 crore) which is held in abeyance due to legal cases
pending.
8. SHORT TERM PROVISIONS
Provisions for Employee Benefits
(Refer Note No. 22.1)
Proposed dividend
Tax on dividend
Provision for Wealth tax
Other Provisions #
TOTAL
(` in crore)
As at
31st March, 2013
126
As at
31st March, 2012
191
2,643
449
44
1,086
4,348
2,531
410
79
1,047
4,258
128
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
#
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, 2012 of ` 326 crore as per the estimated pattern of
despatches. During the year, ` 326 crore was utilised for clearance of goods. Provision recognised under this
class for the year is ` 336 crore which is outstanding as on 31st March, 2013. Actual outflow is expected in
the next financial year. The Company had recognised customs duty liability on goods imported of ` 704 crore
as at 31st March, 2012. During the year, further provision of ` 339 crore was made and sum of ` 296 crore
was reversed on fulfilment of export obligation. Closing balance on this account as at 31st March, 2013 is
` 747 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.
9. FIxED ASSETS
Description
Gross block
As at
01-04-2012
Additions /
Adjustment
Deductions/
Adjustments
As at
31-03-2013
As at
01-04-2012
Depreciation / Amortisation
Deductions/
Adjustments
For the
year
(` in crore)
Net block
As at
31-03-2013
As at
31-03-2013
As at
31-03-2012
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
1,577
1,221
7,792
1,34,993
3,582
6,459
524
316
386
46
1,56,896
318
10
328
1,57,224
3,403
488
35,179
9,199
48,269
2,05,493
2,21,253
45
89
730
3,066
9
106
18
90
1
-
4,154
-
-
-
4,154
-
6
4,091
-
4,097
8,251
12,98 1
-
1
6
486
-
15
20
29
-
-
557
-
-
-
557
-
13
-
20
33
590
28,741
1,622
1,309
8,516
1,37,573
3,591
6,550
522
377
387
46
1,60,493
318
10
328
1,60,821
3,403
481
39,270
9,179
52,333
2,13,154
2,05,493
242
-
2,568
62,319
1,564
1,556
336
171
254
23
69,033
180
10
190
69,223
1,725
428
19,525
869
22,547
91,770
78,546
54
-
518
7,950
164
314
35
50
14
4
9,103
24
-
24
9,127
185
11
2,742
75
3,013
12,140
13,734
-
-
2
435
-
14
19
21
-
-
491
-
-
-
491
-
13
-
-
13
504
510
296
-
3,084
69,834
1,728
1,856
352
200
268
27
77,645
204
10
214
77,859
1,910
426
22,267
944
25,547
1,03,406
91,770
1,326
1,309
5,432
67,739
1,863
4,694
170
177
119
19
82,848
114
-
114
82,962
1,493
55
17,003
8,235
26,786
1,09,748
1,13,723
13,525
5,591
1,335
1,221
5,224
72,674
2,018
4,903
188
145
132
23
87,863
138
-
138
88,001
1,678
60
15,654
8,330
25,722
1,13,723
3,695
4,059
$
*
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 :
Cost of shares in Co-operative Housing Societies ` 1 crore (Previous Year ` 1 crore).
` 5 crore (Previous Year ` 5 crore) in respect of which conveyance is pending.
i)
ii)
iii) ` 93 crore (Previous Year ` 93 crore) in shares of Companies / Societies with right to hold and use certain
area of Buildings.
Notes on Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
129
9.3
Intangible assets - Others include :
i)
Jetties amounting to ` 812 crore (Previous Year ` 812 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.
` 8,367 crore (Previous Year ` 8,387 crore) in preference shares of subsidiaries and lease premium paid with
right to hold and use Land and Buildings.
ii)
9.4 Capital Work-in-Progress and Intangible Assets under development include :
i)
ii)
` 2,795 crore (Previous Year ` 2,320 crore) on account of project development expenditure.
` 4,685 crore (Previous Year ` 933 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, Capital Work-in-Progress, Intangible Assets - Development Rights and Intangible
Assets under development includes ` 5,070 crore (net loss) [Previous Year ` 7,558 crore (net loss)] on account of
exchange difference during the year.
9.7
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, 2013 are as follows:
(` in crore)
Total Minimum
Lease Payments
outstanding
As at 31st March
2013
37
147
36
220
2012
36
146
73
255
Future interest on
Outstanding Lease
Payments
2012-13
15
35
2011-12
16
44
1
51
7
67
Present value of
Minimum Lease
Payments
As at 31st March
2013
22
112
35
169
2012
20
102
66
188
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, 2013, included under Capital work-in-progress and Intangible Assets under
development)
2012-13
2,320
(` in crore)
2011-12
1,886
98
385
37
430
Opening Balance
Add:
Transferred from Profit and Loss Account
(Refer Note No. 25)
Interest Capitalised
Less:
Closing balance
Project Development Expenses Capitalised during the year
467
2,353
33
2,320
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 ` 2,072 crore (Previous Year ` 2,340 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.
9.10 Additions for the year includes freehold land ` 56 crore, buildings ` 674 crore, plant and machinery ` 1,189 crore, furniture
and fixtures ` 12 crore, vehicles ` 10 crore and software ` 1 crore on amalgamation of Reliance Jamnagar Infrastructure
Limited with the Company. Accumulated depreciation of ` 603 crore on the above assets has included in depreciation
for the year. (Refer Note No. 33)
483
2,803
8
2,795
130
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
10. NON-CuRRENT INVESTMENTS
(Long Term Investments)
Trade Investments
In Equity Shares - unquoted, fully paid up
1,00,00,000
(1,00,00,000)
Petronet India Limited of ` 10 each
In Equity Shares of Associate Companies -
unquoted, fully paid up
64,29,20,000
(64,29,20,000)
62,63,125
(62,63,125)
11,08,500
(11,08,500)
52,00,000
(26,00,000)
Gujarat Chemical Port Terminal Company
Limited of ` 1 each
Indian Vaccines Corporation Limited
of ` 10 each
Reliance Europe Limited of Sterling
Pound 1 each
Reliance Utilities and Power Private
Limited Class ‘A’ shares of ` 1 each
[` 40,40,000 (Previous Year ` 19,90,000)]
Reliance Utilities Private Limited
Class ‘A’ shares of ` 1 each
[` NIL (Previous Year ` 20,50,000)]
-
(26,00,000)
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
10
10
64
1
4
-
-
69
10
10
64
1
4
-
-
69
In Preference Shares of Associate Company -
unquoted, fully paid up
50,00,00,000
(50,00,00,000)
9% Non-Cumulative Redeemable Preference
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
(68,60,064)
Reliance Industrial Infrastructure Limited
of ` 10 each
In Equity Shares of Associate Company -
unquoted, fully paid up
22,500
(22,500)
Reliance LNG Limited of ` 10 each
[` 2,25,000 (Previous Year ` 2,25,000)]
2,000
2,000
2,000
2,000
2,079
2,079
16
16
-
-
16
16
-
-
Notes on Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
131
Reliance Jio Infocomm Limited
of `10 each
Reliance Exploration & Production DMCC
of AED 1000 each
Reliance Global Business B.V. of Euro 0.01 each
[` 1,25,400 (Previous Year ` 1,25,400)]
Reliance Industrial Investments and
Holdings Limited of `10 each
Reliance Industries (Middle East)
DMCC of AED 1000 each
Reliance Jamnagar Infrastructure Limited
of ` 10 each
Reliance Retail Limited of `10 each
In Equity Shares of Subsidiary Companies -
unquoted, fully paid up
4,79,76,90,000
(4,79,76,90,000)
-
(1,76,200)
2,00,000
(2,00,000)
14,75,04,400
(14,75,04,400)
42,450
(42,450)
-
(10,00,00,000)
-
(5,22,00,00,000)
20,20,200
(20,20,200)
26,91,150
(26,91,150)
65,50,001
(59,00,001)
50,000
(50,000)
Reliance Strategic Investments Limited
of ` 10 each
Reliance Ventures Limited of ` 10 each
RIL (Australia) Pty Limited of Aus $ 1 each
Reliance Energy Generation and Distribution
Limited of ` 10 each
[` 5,00,000 (Previous Year ` 5,00,000)]
Reliance Commercial Associates Limited of ` 10
each
Reliance Gas Pipelines Limited of ` 10 each
[` 5,01,256 (Previous Year ` NIL)]
5,66,70,00,000
(-)
50,000
(-)
In Preference shares of Subsidiary Companies -
unquoted, fully paid up
5,92,70,31,111
(6,60,77,27,511)
4,02,800
(4,02,800)
Reliance Global Business B.V.
Class ‘A’ Shares of Euro 0.01 each
9% Non Cumulative Compulsorily Convertible
Preference Shares of Reliance Strategic
Investments Limited of ` 1 each
5% Non Cumulative Compulsorily Convertible
Preference Shares of Reliance Industries
(Middle East) DMCC of AED 1000 each
63,436
(3,54,156)
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
4,798
4,798
-
-
148
46
-
-
2
2,351
25
-
5,667
-
211
-
148
46
100
5,220
2
2,351
22
-
-
-
13,037
12,898
13,053
12,914
382
113
85
426
113
474
132
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
-
(24,82,316)
-
(18,50,000)
-
(62,000)
-
(2,58,00,00,000)
2,64,70,00,000
(-)
5% Non Cumulative Compulsorily Convertible
Preference Shares of Reliance Exploration &
Production DMCC of AED 1000 each
10% Non-Cumulative Optionally Convertible
Preference Shares of Reliance Jamnagar
Infrastructure Limited of ` 10 each
Reliance Netherlands B.V. Class ‘A’ Shares of
Euro 1 each [` NIL (Previous Year ` 37,57,820)]
9% Cumulative Optionally Convertible Preference
Shares of Reliance Retail Limited of ` 10 each
9% Cumulative Redeemable Preference Shares of
Reliance Jio Infocomm Limited of ` 10 each
In Preference shares of Subsidiary Company -
unquoted, partly paid up
-
(1,37,000)
Reliance Netherlands B.V. Class ‘A’
Shares of Euro 1 each (Euro 0.60 each paid up)
In Debentures of Subsidiary Companies - unquoted, Fully paid up
2,79,90,000
(2,79,90,000)
8,83,143
(8,83,143)
0% Unsecured Convertible Debentures
of Reliance Industrial Investments and
Holdings Limited of ` 100 each
0% Unsecured Convertible Redeemable
Debentures of Reliance Industrial Investments
and Holdings Limited of ` 5,000 each
In Government Securities-unquoted
6 Years National Savings Certificate
(Deposited with Sales Tax Department
and other Government Authorities )
[` 1,69,920 (Previous Year ` 2,43,420)]
In Government Securities-quoted
8.33% GOI 2026
In Fixed Maturity Plan - quoted fully paid up
As at
31st March, 2013
-
-
-
-
2,647
3,227
-
-
280
442
(` in crore)
As at
31st March, 2012
3,121
925
-
2,580
-
7,639
1
1
3,227
7,640
280
442
722
722
-
650
-
-
2,50,00,000
(5,00,00,000)
2,50,00,000
(-)
19,00,00,000
(47,00,00,000)
Axis Fixed Term Plan - (Series 21/22/34) - Growth
Baroda Pioneer Fixed Maturity Plan - Series C -
Growth
Birla Sunlife Fixed Term Plan -
(Series ES/EV/EY/FC/GA/GB/GF) - Growth
25
25
190
50
-
470
Notes on Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
133
As at
31st March, 2013
3,00,00,000
(-)
40,00,00,000
(40,50,00,000)
17,00,00,000
(20,30,00,000)
35,20,00,000
(54,70,00,000)
1,50,00,000
(4,50,00,000)
86,50,00,000
(71,50,00,000)
7,00,00,000
(19,20,00,000)
-
(3,50,00,000)
34,50,00,000
(15,00,00,000)
29,50,00,000
(27,00,00,000)
12,50,00,000
(-)
6,50,00,000
(3,50,00,000)
45,00,00,000
(-)
12,00,00,000
(17,30,00,000)
38,00,00,000
(16,00,00,000)
10,00,00,000
(4,00,00,000)
25,00,00,000
(13,50,00,000)
14,00,00,000
(-)
BNP Paribas Fixed Term Fund - Series 24 A -
Growth
DSP Blackrock Fixed Maturity Plan -
(Series 37/38/43/88/89/91/93) - Growth
DWS Fixed Maturity Plan -
(Series 6/7/9/10/26/28/30) - Growth
HDFC Fixed Maturity Plan - Growth
(Series 21/23/24)
HSBC Fixed Term Plan - (Series 86/90) - Growth
ICICI Prudential Fixed Maturity Plan - Cumulative
(Series 62/63/65/66/67)
IDFC Fixed Maturity Plan - (Series 7/8/11/14/65) -
Growth
India Bulls Fixed Maturity Plan - Growth
JP Morgan Fixed Maturity Plan -
(Series 6/12/13/16/18) - Growth
Kotak Fixed Maturity Plan -
(Series 76/80/82/97/98/99/101/102/103) - Growth
L&T Fixed Maturity Plan - VII - Growth
LIC Nomura MF Fixed Maturity Plan -
(Series 52/56/58) - Growth
Reliance Fixed Horizon Fund - XXII/XXIII
(Series 5/9/33) - Growth
Religare Fixed Maturity Plan -
(Series XIII/XIV/XVII/XVIII) - Growth
SBI Debt Fund - (Series 2/12/13/14/15/25) -
Growth
Sundaram Fixed Term Plan -
(Series CQ/DC/DF/DH) - Growth
Tata Fixed Maturity Plan - (Series 39/40/42) -
Growth
UTI Fixed Income Fund -
(Series XIII - III / XIV - VII) - Growth
30
400
170
352
15
865
70
-
345
295
125
65
450
120
380
100
250
140
(` in crore)
As at
31st March, 2012
-
405
203
547
45
715
192
35
150
270
-
35
-
173
160
40
134
-
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
4,412
22,064
24,143
5,078
5,329
19,065
3,624
24,900
26,979
3,640
3,945
23,339
134
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
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
*
#
(` in crore)
As at
31st March, 2013
1,208
1,469
18,308
475
68
21,528
As at
31st March, 2012
1,190
1,741
10,243
1,100
66
14,340
Includes Loans to Employees.
Includes ` NIL (Previous Year ` 42 crore) to Reliance Haryana SEZ Limited, ` 2 crore (Previous Year ` NIL)
to Reliance Industrial Infrastructure Limited.
11.1 Loans and Advances in the nature of Loans given to Subsidiaries :
A) Loans and Advances in the nature of Loans
Name of the Company
Sr
No.
As at
31st March, 2013
As at
31st March, 2012
1. Reliance Industrial Investments and
Subsidiary
17,306
9,622
(` in crore)
Maximum
balance
during the
year
19,135
Holdings Limited*
Subsidiary
2. Reliance Ventures Limited
Subsidiary
3. Reliance Strategic Investments Limited
4. Reliance Retail Limited
Subsidiary
5. Reliance Exploration & Production DMCC Subsidiary
6. Reliance Brands Limited
Subsidiary
* Excluding Debentures of ` 722 crore (Previous Year ` 722 crore)
-
-
920
71
11
-
-
617
-
-
1,767
2,421
1,181
72
11
(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 ` 13,944 crore paid to
Reliance Industrial Investments and Holdings Limited.
b)
(c) Loans to employees as per Company’s policy are not considered.
Investment by the loanee in the shares of the Company
(i)
*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
Reliance Commercial Land & Infrastructure Limited
Reliance Global Business B.V.
Reliance Gas Corporation Limited
No. of Shares
4,30,10,000
18,00,000
50,000
Notes on Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
135
Reliance Universal Enterprises Limited
Indiawin Sports Private Limited
Reliance Corporate Services Limited
Reliance Industries Investment and Holding Limited
Reliance Security Solutions Limited
Mark Project Services Private Limited
GenNext Innovation Ventures Limited
Kanhatech Solutions Limited
Reliance Sibur Elastomers Private Limited
Reliance Payment Solutions Limited
Reliance Exploration & Production DMCC
Sr No. Name of the Company
4
5
6
7
8
9
10
11
12
13
14
In Preference Shares :
Sr No. Name of the Company
1
2
3
Reliance Industries Investment and Holding Limited
Reliance Jio Infocomm Limited
Reliance Exploration & Production DMCC
(iii) Investment by Reliance Exploration & Production DMCC in Subsidiaries
(iv)
(v)
Gulf Africa Petroleum Corporation
Central Park Enterprises DMCC
In Equity Shares :
Sr No. Name of the Company
1
2
Investment by Reliance Retail Limited in Subsidiaries in Equity Shares:
Sr No. Name of the Company
Reliance Fresh Limited
1
Reliance Retail Finance Limited
2
Reliance Retail Insurance Broking Limited
3
Reliance Financial Distribution and Advisory Services Limited
4
Reliance-GrandOptical Private Limited
5
Investment by Reliance brands Limited in Subsidiaries in Equity Shares:
Sr No. Name of the Company
1
2
3
Reliance Style Fashion India Private Limited
Reliance Styles India Limited
Reliance Lifestyle Holdings Limited
No. of Shares
38,55,000
26,50,000
10,000
50,000
50,000
5,000
50,000
72,00,000
8,83,86,308
20,00,000
1,76,200
No. of Shares
32,12,300
12,50,00,000
13,79,816
No. of Shares
16,720
367
No. of Shares
10,50,000
20,20,000
40,00,000
50,000
50,000
No. of Shares
10,10,000
50,000
50,000
11.2 (i) Assets given on finance lease on or after 1st April, 2001
Particulars
Total
Not later than one
year
Later than one year
and not later than
five years
(` in crore)
Later than five
years
Gross Investment
Less: Unearned Finance Income
Present Value of Minimum
Lease Rental
2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12
-
-
21
1
17
1
3
-
3
-
4
-
-
-
-
-
3
20
3
16
-
4
-
-
(ii) General Description of Lease terms:
Lease rentals are charged on the basis of agreed rate of interest.
•
• Assets are given on lease for a period of five years.
136
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
12. CuRRENT INVESTMENTS
Investment in Government Securities - quoted
7.59% GOI 2016
8.20% GOI 2025
8.33% GOI 2026
8.97% GOI 2030
Investment in Debentures or bonds - quoted, Fully Paid up
Axis Bank Limited
CitiFinancial Consumer Finance India Limited
EXIM Bank of India
5
278
102
149
-
-
30
-
(250)
-
(1,000)
300
(1,250)
38,200
(18,387)
6,500
(10,750)
15,095
(15,095)
42,63,562
(32,62,862)
5,150
(5,550)
7,250
(3,500)
49,44,752
(49,44,752)
42,74,393
(42,76,093)
40
(920)
595
(450)
-
(550)
650
(250)
1,320
(1,370)
Housing Development Finance Corporation Limited
3,828
Infrastructure Development Finance Company Limited
India Infrastructure Finance Company Limited
Indian Railway Finance Corporation Limited
LIC Housing Finance Limited
National Bank for Agriculture and Rural Development
National Highways Authority of India
Power Finance Corporation Limited
Power Grid Corporation of India Limited
Rural Electrification Corporation Limited
Steel Authority of India Limited
Tata Steel Limited
Tata Power Company Limited
647
149
521
515
726
494
688
5
59
-
58
133
5
-
-
-
534
5
25
98
120
1,822
1,060
149
350
545
349
494
858
112
44
53
26
142
Investment in Debentures or bonds - unquoted, Fully Paid up
Tata Sons Limited
3,000
(-)
7,853
300
6,247
-
Investment in Fixed Maturity Plan - quoted, Fully Paid up
5,00,00,000
(6,50,00,000)
Axis Fixed Term Plan - (Series 15/16/21/22) - Growth
50
65
Notes on Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
137
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
2,50,00,000
(1,20,00,000)
12,00,00,000
(-)
57,50,00,000
(61,00,00,000)
1,50,00,000
(-)
5,00,00,000
(-)
-
(10,00,00,000)
53,00,00,000
(41,00,00,000)
32,80,00,000
(14,30,00,000)
5,00,00,000
(-)
62,70,00,000
(44,00,00,000)
4,50,00,000
(-)
88,00,00,000
(39,00,00,000)
-
(5,00,00,000)
2,98,46,064
(12,04,25,008)
3,00,00,000
(-)
9,96,19,002
(-)
2,50,00,000
(-)
44,30,00,000
(15,50,00,000)
12,00,00,000
(-)
3,50,00,000
(-)
21,50,00,000
(10,50,00,000)
36,00,00,000
(23,00,00,000)
Baroda Pioneer Fixed Maturity Plan - (Series A/2) -
Growth
Birla Sun Life Fixed Term Plan -
(Series FM/FO/FP) - Dividend
Birla Sun Life Fixed Term Plan - (Series DB/DL/DN/DO/DQ/
DS/ES/EV/EW/EY/FA/FC/FD/FM/FO/FP/HD)- Growth
Birla Sunlife Interval Income Fund -
Annual Plan 5 - Growth
BNP Paribas Fixed Term Fund Series 25A - Growth
Canara Robeco Fixed Maturity Plan -
(Series 6 / 7) - Growth
DSP Blackrock Fixed Maturity Plan -
(Series 7/10/12/16/18/37/38/39/43/44/90/94) - Growth
DWS Fixed Maturity Plan -
(Series 6/7/9/10/11/18/27/29/90/92) - Growth
HDFC Annual Interval Fund - Series 1 - Growth
HDFC Fixed Maturity Plan
(Series XVI/XVIII/XIX/XXI) - Growth
HSBC Fixed Term Series 86 - Growth
ICICI Prudential Fixed Maturity Plan
(Series 54/59/62/63/67) - Cumulative
ICICI Prudential Fixed Maturity Plan
Series 55 - Dividend
ICICI Prudential Interval Fund Annual Interval Plan - I
Institutional Cumulative
ICICI Prudential Interval Fund Series VI Annual
Interval Plan - C - Growth
ICICI Prudential Long Term Plan Premium Plus -
Annual Dividend
IDBI Fixed Maturity Plan Series - III - Growth
IDFC Fixed Maturity Plan -
(Series 7/8/12/13/52/64/65/66/78/79) - Growth
IDFC Series Interval Fund - (Series I/II) - Growth
Indiabulls Fixed Maturity Plan - Growth
JP Morgan India Fixed Maturity Plan - (Series 6/8/17)
- Growth
Kotak Fixed Maturity Plan
(Series 57/60/62/76/80/82/83/100) - Growth
25
120
575
15
50
-
530
328
50
627
45
880
-
32
30
100
25
443
120
35
215
360
12
-
610
-
-
100
410
143
-
440
-
390
50
130
-
-
-
155
-
-
105
230
138
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
4,00,00,000
(-)
14,50,00,000
(-)
11,00,00,000
(-)
24,80,00,000
(6,00,00,000)
14,00,00,000
(-)
53,00,00,000
(76,50,00,000)
6,50,00,000
(2,20,00,000)
13,50,00,000
(24,00,00,000)
5,49,80,083
(6,66,98,706)
13,00,00,000
(2,61,12,073)
22,50,00,000
(-)
L&T Fixed Maturity Plan - VII - Growth
LIC Nomura MF Fixed Maturity Plan
(Series 52/53/54/60/61) - Growth
Reliance Fixed Horizon Fund - XXIII - Series 6 -
Growth
Religare Fixed Maturity Plan -
(Series VIII/IX/XIII/XIV/XVII/XVIII) - Growth
SBI Debt Fund (Series 5/7) - Dividend
SBI Debt Fund (Series 1/6/7/11/12/13/17/18/19/23/24)
- Growth
Sundaram Fixed Term Plan (Series BK/BN/CQ/ DG) -
Growth
Tata Fixed Maturity Plan (Series 34/36/37/39/40) -
Growth
UTI Fixed Income Interval Fund - Annual Interval Plan
(Series - II/III) - Institutional Growth
UTI Fixed Term Income Fund Series IX / XII -
Dividend
UTI Fixed Term Income Fund Series XIV - V/VI/VII -
Growth
Investment in Mutual Fund - unquoted
11,08,67,422
(-)
1,31,48,48,855
(41,19,71,606)
5,56,20,512
(-)
2,31,91,812
(-)
4,59,45,325
(-)
5,96,310
(-)
11,14,37,619
(-)
48,23,954
(-)
11,66,82,484
(-)
1,04,54,867
(-)
4,66,90,013
(-)
Axis Short Term Fund - Institutional Growth
Birla Sunlife Dynamic Bond Fund - Retail - Growth
Birla Sunlife Short Term Fund - Growth
Canara Robeco Short Term Fund - Regular Growth
Canara Robeco Short Term Institutional Growth Fund
DSP Black Rock Liquidity Fund - Institutional Plan
Growth
DSP BlackRock Short Term Fund - Growth
DSP BlackRock Strategic Bond Fund -Institutional
Plan - Growth
DWS GILT Fund - Regular Plan - Growth
DWS Insta Cash Plus Fund - Super Institutional Plan -
Bonus
DWS Money Plus Fund - Regular Plan
(Principle Units) - Bonus
40
145
110
248
140
530
65
135
70
130
225
135
2,418
225
30
60
100
210
625
150
-
46
-
-
-
60
-
765
22
240
83
26
-
6,493
4,036
-
730
-
-
-
-
-
-
-
-
-
Notes on Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
139
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
14,48,86,484
(2,48,38,796)
12,93,69,261
(3,77,86,469)
60,38,424
(-)
19,73,54,869
(-)
14,69,19,109
(-)
22,67,48,577
(-)
86,58,009
(-)
25,68,76,110
(-)
22,68,83,560
(-)
16,70,54,915
(-)
3,46,29,245
(-)
42,70,29,582
(3,99,55,814)
14,42,759
(-)
4,39,26,695
(-)
2,33,10,265
(-)
42,82,45,478
(-)
9,99,03,094
(-)
1,75,479
(-)
23,42,26,669
(-)
10,38,13,700
(-)
46,01,17,659
(-)
11,10,88,159
(-)
8,84,33,460
(-)
DWS Premier Bond Fund - Premium Plus Plan -
Growth
DWS Short Maturity Fund - Premium Plus Growth
DWS Treasury Fund - Cash - Regular Plan - Bonus
HDFC Short Term Opportunities Fund - Growth
HDFC Floating Rate Income Fund - Long Term Plan
- Growth
HDFC High Interest Fund - Short Term Plan - Growth
HDFC Liquid Fund Growth
HDFC Medium Term Opportunities Fund - Growth
HDFC Short Term Plan - Growth
HSBC Income Fund Short Term Institutional Plus
Growth
ICICI Prudential Gilt Treasury Plan - Growth
ICICI Prudential Institutional Short Term Plan -
Cumulative Option
ICICI Prudential Liquid - Growth
IDBI Short Term Bond Fund - Growth
IDFC - SSIF - Medium Term - Plan - Growth
IDFC - SSIF - Short Term - Plan D - Growth
IDFC Banking Debt Fund - Regular Plan - Growth
IDFC Cash Fund - Growth - (Regular Plan)
IDFC Super Saver Income Fund -Medium Term - Plan
B - Growth
J P Morgan India Short term Income Fund - Growth
J P Morgan India Treasury Fund - Direct Plan - Bonus
150
147
59
240
300
500
20
305
485
180
100
975
25
50
45
625
100
25
285
125
700
JM High Liquidity Fund - Bonus Option - Bonus Units
109
Kotak Bond (Short Term) - Growth
185
25
40
-
-
-
-
-
-
-
-
-
85
-
-
-
-
-
-
-
-
-
-
-
140
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
As at
31st March, 2013
7,51,00,293
(-)
1,17,585
(7,37,24,677)
5,81,04,402
(-)
4,70,53,586
(-)
12,02,16,390
(-)
13,27,54,784
(-)
18,67,56,236
(-)
52,63,28,065
(-)
1,90,032
(-)
18,37,26,275
(-)
4,32,75,524
(-)
3,02,49,315
(-)
9,21,73,180
(-)
1,94,65,573
(-)
37,23,783
(-)
1,90,537
(-)
30,35,68,335
(-)
20,30,859
(-)
L & T - Short Term Opportunities Fund - Growth
LIC Nomura MF Liquid Fund - Growth
DWS Treasury Fund - Investment - Bonus
Morgan Stanley Short Term Bond Fund - Institutional
Plus Growth
Reliance Income Fund - Growth - Bonus Option
Religare Active Income Fund - Growth
Religare Short Term Fund - Growth
SBI Dynamic Bond Fund - Growth
SBI Premier Liquid Fund - Growth
SBI Short Term Debt Fund - Growth
Sundaram Flexible Fund Short - Term Plan - Growth
Sundaram Monthly Income Plan MOD Bonus
(Principal Units)
Tata Income Fund Plan A - Appreciation Option -
Bonus
TATA Short Term Bond Fund Plan A - Growth
UTI Floating Rate Fund - STP - Growth
UTI Money Market Fund - Institutional Plan - Growth
UTI Short Term Income Fund Institutional - Growth
Option
UTI Treasury Advantage Fund - Institutional Plan
80
25
75
60
131
175
285
725
35
235
80
34
97
40
700
25
400
250
(` in crore)
As at
31st March, 2012
-
141
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Investment in Certificate of Deposits with Scheduled banks - unquoted
Total Current Investments
Aggregate amount of quoted investments
Market Value of quoted investments
Aggregate amount of unquoted investments
13,186
-
28,366
14,880
15,460
13,486
1,021
15,720
27,029
10,288
10,453
16,741
Notes on Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
141
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, 2013
7,882
13,820
6,361
10,819
3,794
53
42,729
As at
31st March, 2013
41
11,839
11,880
As at
31st March, 2013
740
15
48,792
49,547
(` in crore)
As at
31st March, 2012
8,342
11,008
5,274
7,944
3,333
54
35,955
(` in crore)
As at
31st March, 2012
14
18,410
18,424
(` in crore)
As at
31st March, 2012
875
14
38,709
39,598
#
*
Balance with Banks includes Unclaimed Dividend of ` 152 crore (Previous Year ` 129 crore)
Fixed deposits with banks include deposits of ` 13,173 crore (Previous Year ` 6,860 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, 2013
3,674
(` in crore)
As at
31st March, 2012
4,169
2,549
399
4,352
10,974
1,525
358
5,037
11,089
*
#
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.
17. OTHER CuRRENT ASSETS
Interest accrued on Investment
TOTAL
As at
31st March, 2013
480
480
(` in crore)
As at
31st March, 2012
249
249
142
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
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
[(` NIL (Previous Year ` 14,64,610)]
Other non operating income *
TOTAL
2012-13
3,71,021
98
3,71,119
10,822
3,60,297
2012-13
2,73,790
88,108
8,173
950
3,71,021
2012-13
(` in crore)
2011-12
3,39,721
71
3,39,792
9,888
3,29,904
(` in crore)
2011-12
2,45,335
80,625
12,620
1,141
3,39,721
(` in crore)
2011-12
892
460
4,893
74
3
1,234
424
-
431
109
3,874
6,245
4,414
6
4
77
10
1,060
575
-
1,658
18
7,998
1,635
133
6,192
* Other non operating income includes income from finance lease of ` 1 crore (Previous Year ` 3 crore).
20. COST OF MATERIALS CONSuMED
Imported
Indigenous
TOTAL
20.1 PARTICuLARS OF MATERIALS CONSuMED
Particulars
Crude Oil
Others
TOTAL
` in crore
2,77,824
28,303
3,06,127
2012-13
% of
Consumption
90.75
9.25
100.00
` in crore
2,51,583
23,231
2,74,814
2012-13
2,79,316
26,811
3,06,127
2011-12
% of
Consumption
91.55
8.45
100.00
(` in crore)
2011-12
2,53,997
20,817
2,74,814
Reliance Industries Limited
143
Notes on Financial Statements for the year ended 31st March, 2013
21. CHANGES IN INVENTORIES OF FINISHED GOODS,
STOCK-IN-PROCESS AND STOCK-IN-TRADE
10,872
6,361
7,998
5,274
13,272
644
Inventories (at close)
Finished Goods / Stock-in-Trade
Stock-in-Process
Inventories (at commencement)
Finished Goods / Stock-in-Trade
Stock-in-Process
Add: on Amalgamation (Refer Note No. 33)
TOTAL
22. EMPLOyEE bENEFITS ExPENSE
Salaries and Wages
Contribution to Provident and other funds
Staff Welfare Expenses
TOTAL
7,998
5,274
7,491
4,909
12,400
-
(` in crore)
2011-12
13,272
12,400
(872)
(` in crore)
2011-12
2,433
215
214
2,862
2012-13
17,233
13,916
(3,317)
2012-13
2,925
218
211
3,354
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 :
Employer’s Contribution to Provident Fund
Employer’s Contribution to Superannuation Fund
Employer’s Contribution to Pension Scheme
2012-13
91
15
19
(` in crore)
2011-12
80
15
15
The Company’s Provident Fund is exempted under section 17 of Employees’ Provident Fund and Miscellaneous
Provisions Act, 1952. Conditions for grant of exemption stipulate that the employer shall make good deficiency, if
any, in the interest rate declared by the trust vis-a-vis statutory rate.
Defined Benefit Plan
The employees’ gratuity fund scheme managed by a Trust (Life Insurance Corporation of India for SEZ unit of
the Company) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation
using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit
of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation
for leave encashment is recognised in the same manner as gratuity.
144
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
I) Reconciliation of opening and closing balances of Defined Benefit Obligation
(` in crore)
Defined Benefit obligation at beginning of year
On Amalgamation (Refer Note No. 33)
Current Service Cost
Interest Cost
Actuarial (gain) / loss
Benefits paid
Defined Benefit obligation at year end
Gratuity
(Funded)
Leave Encashment
(unfunded)
2012-13
436
2
31
34
26
(29)
500
2011-12
383
-
27
32
17
(23)
436
2012-13
137
1
9
9
25
(53)
128
2011-12
179
-
8
11
39
(100)
137
II) Reconciliation of opening and closing balances of fair value of Plan Assets
Fair value of Plan assets at beginning of year
On Amalgamation (Refer Note No. 33)
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
(` in crore)
Gratuity (Funded)
2012-13
394
2
34
10
92
(29)
503
44
2011-12
327
-
29
2
59
(23)
394
31
(` in crore)
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
Gratuity
(Funded)
As at 31st March
Leave Encashment
(unfunded)
As at 31st March
2013
503
500
(3)
2012
394
436
42
2013
-
128
128
2012
-
137
137
(` in crore)
Gratuity
(Funded)
Leave Encashment
(unfunded)
2012-13
31
34
(34)
16
47
2011-12
27
32
(29)
15
45
2012-13
9
9
-
25
43
2011-12
8
11
-
39
58
Notes on Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
145
V)
Investment Details :
GOI Securities
Public Securities
State Government Securities
Insurance Policies
Others (including bank balances)
VI) Actuarial assumptions
% Invested
As at
31st March, 2013
5.70
4.60
1.68
87.84
0.18
100.00
As at
31st March, 2012
7.52
6.18
2.42
83.72
0.16
100.00
Mortality Table (LIC)
Discount rate (per annum)
Expected rate of return on plan assets (per annum)
Rate of escalation in salary (per annum)
Gratuity (Funded)
Leave Encashment
(unfunded)
2012-13
1994-96
(ultimate)
8%
8%
6%
2011-12
1994-96
(Ultimate)
8.50%
8.50%
6%
2012-13
1994-96
(ultimate)
8%
-
6%
2011-12
1994-96
(Ultimate)
8.50%
-
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.
22.2 The Company had announced Voluntary Separation Scheme (VSS) for the employees during the previous year. A
sum of ` NIL (Previous Year ` 5 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 (Refer Note No. 9.10)
Less: Transferred from revaluation reserve
(Refer Note No. 9.9)
TOTAL
2012-13
2,152
16
868
3,036
2012-13
11,537
2,072
9,465
(` in crore)
2011-12
1,966
18
683
2,667
(` in crore)
2011-12
13,734
2,340
11,394
146
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
25. OTHER ExPENSES
2012-13
(` in crore)
2011-12
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 [` 44,00,000]
Selling and Distribution Expenses
Warehousing and distribution Expenses
Sales tax / VAT
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
3,799
7,166
1,569
28
698
(73)
36
-
4,935
1,102
635
1,090
404
97
611
145
229
122
18
48
283
3,482
4,094
1,829
40
728
161
(28)
1
4,380
821
192
10,307
13,223
6,672
5,393
705
255
122
522
83
258
82
17
45
288
3,047
98
22,844
2,377
37
18,040
Less: Transferred to Project Development Expenditure
TOTAL
#
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
1,725
2,074
3,799
2012-13
% of
Consumption
45.41
54.59
100.00
` in crore
1,816
1,666
3,482
2011-12
% of
Consumption
52.15
47.85
100.00
25.2 VALuE OF IMPORTS ON CIF bASIS IN RESPECT OF
Raw Materials and Stock-in-Trade
Stores, Chemicals and Packing Materials
Capital goods
2012-13
2,81,719
3,260
2,204
(` in crore)
2011-12
2,54,248
3,120
325
Reliance Industries Limited
147
Notes on Financial Statements for the year ended 31st March, 2013
25.3 PAyMENT TO AuDITORS AS :
(a) Auditor
Statutory Audit Fees
Tax Audit Fees
(b) Certification and Consultation Fees
(c) Cost Audit Fees
(Previous Year ` 39,85,000)
TOTAL
2012-13
7
1
9
1
18
(` in crore)
2011-12
7
1
9
-
17
25.4 A sum of ` 3 crore [Previous Year ` 1 crore] is included under establishment expenses representing Net Prior Period
Items.
25.5 ExPENDITuRE IN FOREIGN CuRRENCy :
Oil and Gas Activity
Repairs to Machinery
(Includes ` 5 crore for SEZ units)
Repairs to Building (` 8,41,593)
Employee Benefits Expense
(Includes ` 6,61,989 for SEZ units)
Sales Promotion Expenses
(Includes ` 2 crore for SEZ units)
Brokerage and Commission
(Includes ` 2 crore for SEZ units)
Ocean Freight (Includes ` 669 crore for SEZ units)
Warehousing and Distribution Expenses
(Includes ` 1,141 crore for SEZ units)
Insurance (Includes ` 14,78,002 for SEZ units)
Rent
Rates & Taxes (Includes ` 2,674 for SEZ units)
Other Repairs (Includes ` 1 crore for SEZ units)
Travelling Expenses
Professional Fees
(Includes ` 22 crore for SEZ units)
Charity and Donations
Labour Processing, Production Royalty and hire
Charges (Includes ` 10 crore for SEZ units)
Bank Charges (Includes ` 8 crore for SEZ units)
General Expenses
(Includes ` 9 crore for SEZ units)
Interest Expenses
(Includes ` 459 crore for SEZ units)
2012-13
1,565
42
-
24
34
46
1,328
1,487
2
6
1
13
13
179
12
11
19
114
(` in crore)
2011-12
1,633
84
1
40
29
31
1,085
1,349
2
5
1
15
9
204
9
1
15
74
1,501
1,392
148
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
26. EARNINGS PER SHARE (EPS)
i)
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
iii) Basic and Diluted Earnings per share (`)
iv)
Face Value per equity share (`)
27.
EARNINGS IN FOREIGN ExCHANGE
FOB value of exports [Excluding captive
transfers to Special Economic Zone of
` 21,480 crore (Previous Year ` 21,278 crore)]
Interest
Others
2012-13
21,003
2011-12
20,040
3,23,99,64,480
3,27,42,26,242
64.82
10.00
2012-13
2,27,883
2
207
61.21
10.00
(` in crore)
2011-12
1,98,269
1
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:
2012-13 (Final Dividend)
2011-12 (Final Dividend)
a)
Number of Non Resident Shareholders
b) Number of Equity Shares held by them
c)
(i) Amount of Dividend Paid (Gross)
( ` in Crore)
(ii) Tax Deducted at Source
(iii) Year to which dividend relates
40,266
57,01,32,298
485
-
2011-12
40,493
59,71,01,671
478
-
2010- 11
29. Fixed assets taken on finance lease prior to 1st April, 2001, amount to ` 444 crore (Previous Year ` 444 crore).
Future obligations towards lease rentals under the lease agreements as on 31st March, 2013 amount to ` 2 crore
(Previous Year ` 3 crore).
Within one year (` 44,00,000)
Later than one year and not later than five
years
TOTAL
2012-13
-
2
2
(` in crore)
2011-12
1
2
3
Reliance Industries Limited
149
Notes on Financial Statements for the year ended 31st March, 2013
30. RELATED PARTy DISCLOSuRES :
As per Accounting Standard 18, the disclosures of transactions with the related parties are given below:
(i) List of related parties where control exists and related parties with whom transactions have taken place and
relationships:
Relationship
Subsidiary Companies
Name of the Related Party
Reliance Industrial Investments and Holdings Limited
Reliance Ventures Limited
Reliance Strategic Investments Limited
Reliance Industries (Middle East) DMCC
Reliance Retail Limited
Reliance Netherlands B.V. (Liquidated on 27th March, 2013)
Reliance Haryana SEZ Limited
Reliance Fresh Limited
Retail Concepts and Services (India) Limited
Sr.
No.
1
2
3
4
5
6
7
8
9
10 Reliance Retail Insurance Broking Limited
11 Reliance Dairy Foods Limited
12 Reliance Exploration & Production DMCC
13 Reliance Retail Finance Limited
14 RESQ Limited
15 Reliance Commercial Associates Limited
16 Reliancedigital Retail Limited
17 Reliance Financial Distribution and Advisory Services Limited
18 RIL (Australia) Pty Limited
19 Gapco Kenya Limited
20 Gapco Rwanda Limited
21 Gapco Tanzania Limited
22 Gapco Uganda Limited
23 Gapoil (Zanzibar) Limited
24 Gulf Africa Petroleum Corporation
25
Transenergy Kenya Limited
26 Recron (Malaysia) Sdn Bhd
27 Reliance Payment Solutions Limited *
28 Reliance Brands Limited
29 Reliance Footprint Limited
30 Reliance Trends Limited
31 Reliance Lifestyle Holdings Limited
32 Reliance Universal Ventures Limited
33 Delight Proteins Limited
34 Reliance Autozone Limited
35 Reliance F&B Services Limited
36 Reliance Gems and Jewels Limited
37 Reliance Integrated Agri Solutions Limited
Strategic Manpower Solutions Limited
38
* Formerly known as Reliance Retail Travel & Forex Services Limited
150
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
Relationship
Subsidiary Companies
Name of the Related Party
Sr.
No.
39 Reliance Agri Products Distribution Limited
40 Reliance Digital Media Limited
41 Reliance Food Processing Solutions Limited
42 Reliance Home Store Limited
43 Reliance Leisures Limited
44 Reliance Loyalty & Analytics Limited
45 Reliance Retail Securities and Broking Company Limited
46 Reliance Supply Chain Solutions Limited
47 Reliance Trade Services Centre Limited
48 Reliance Vantage Retail Limited
49 Wave Land Developers Limited
50 Reliance-GrandOptical Private Limited
51 Reliance Universal Commercial Limited
52 Reliance Petroinvestments Limited
53 Reliance Global Commercial Limited
54 Reliance People Serve Limited
55 Reliance Infrastructure Management Services Limited
56 Reliance Global Business B.V.
57 Reliance Gas Corporation Limited
58 Reliance Global Energy Services Limited
59 Kanhatech Solutions Limited **
60 Reliance Global Energy Services (Singapore) Pte. Limited
61 Reliance Personal Electronics Limited
62 Reliance Polymers (India) Limited
63 Reliance Polyolefins Limited
64 Reliance Aromatics and Petrochemicals Limited
65 Reliance Energy and Project Development Limited
66 Reliance Chemicals Limited
67 Reliance Universal Enterprises Limited
68 Reliance Review Cinema Limited
69 Reliance Replay Gaming Limited
Two Sisters Foods India Limited
70
71
International Oil Trading Limited (Liquidated on 7th February 2013)
72 RIL USA Inc.
73 Reliance Commercial Land & Infrastructure Limited
74 Reliance Corporate IT Park Limited
75 Reliance Eminent Trading & Commercial Private Limited
76 Reliance Progressive Traders Private Limited
77 Reliance Prolific Traders Private Limited
78 Reliance Universal Traders Private Limited
79 Reliance Prolific Commercial Private Limited
80 Reliance Comtrade Private Limited
81 Reliance Ambit Trade Private Limited
82 Reliance Petro Marketing Limited
** Formerly known as Reliance One Enterprises Limited
Notes on Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
151
Relationship
Subsidiary Companies
Name of the Related Party
Sr.
No.
83
LPG Infrastructure (India) Limited
84 Reliance Corporate Centre Limited
85 Reliance Convention and Exhibition Centre Limited
86 Central Park Enterprises DMCC
87 Reliance International B. V.
88 Reliance Corporate Services Limited
Indiawin Sports Private Limited
89
90 Reliance Holding USA Inc.
91 Reliance Marcellus LLC
92 Reliance Jio Infocomm Limited ***
93 Reliance Strategic (Mauritius) Limited
94 Reliance Eagleford Midstream LLC
95 Reliance Eagleford Upstream LLC
96 Reliance Eagleford Upstream GP LLC
97 Reliance Eagleford Upstream Holding LP
98 Mark Project Services Private Limited
99 Reliance Energy Generation and Distribution Limited
100 Reliance Marcellus II LLC
101 Reliance Security Solutions Limited
102 Reliance Industries Investment and Holding Limited
103 Reliance Office Solutions Private Limited
104 Reliance Style Fashion India Private Limited
105 GenNext Innovation Ventures Limited
106 Reliance Home Products Limited
107 Infotel Telecom Limited
108 Reliance Styles India Limited
109 Rancore Technologies Private Limited
110 Omni Symmetry LLC
111 Reliance Sibur Elastomers Private Limited
112 Surela Investment and Trading Private Limited
113 Model Economic Township Limited
114 Delta Corp East Africa Limited
115 Delta Square Limited
116 Kaizen Capital LLP
117 Affinity Names Inc
118 Reliance USA Gas Marketing LLC
119 Reliance Aerospace Technologies Limited
120 Reliance Gas Pipelines Limited
121 Achman Commercial Private Limited
122 Reliance Jio Infocomm Pte Limited
123 Reliance do Brasil Industria e Comercio de Produtos Texteis,
Quimicos, Petroquimicos e Derivados Ltda.
*** Formerly known as Infotel Broadband Services Limited
152
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
Name of the Related Party
Sr.
No.
124 Reliance Hyper Realty Limited #
(amalgamated with Reliance Commercial Land & Infrastructure Limited w.e.f. 01.04.2012)
125 Reliance Commercial Realty Assets Limited ##
(amalgamated with Reliance Commercial Land & Infrastructure Limited w.e.f. 01.04.2012)
126 Reliance Oil and Gas Mauritius Limited
(amalgamated with Reliance Energy Generation and Distribution Limited w.e.f. 01.04.2012)
127 Reliance Exploration and Production Mauritius Limited
(amalgamated with Reliance Energy Generation and Distribution Limited w.e.f. 01.04.2012)
Relationship
Subsidiary Companies
128 Reliance Industrial Infrastructure Limited
129 Reliance Europe Limited
130 Reliance LNG Limited
131 Indian Vaccines Corporation Limited
132 Gujarat Chemical Port Terminal Company Limited
133 Reliance Utilities and Power Private Limited
134 Reliance Utilities Private Limited
135 Reliance Ports and Terminals Limited
136 Reliance Gas Transportation Infrastructure Limited
137 Reliance Commercial Dealers Limited
138 Shri Mukesh D. Ambani
139 Shri Nikhil R. Meswani
140 Shri Hital R. Meswani
141 Shri P.M.S. Prasad
142 Shri P.K.Kapil
143 Dhirubhai Ambani Foundation
144 Jamnaben Hirachand Ambani Foundation
145 Hirachand Govardhandas Ambani Public Charitable Trust
146 HNH Trust and HNH Research Society
147 Reliance Foundation
# Formerly known as Reliance Hypermart Limited
## Formerly known as Reliance Wellness Limited
(ii) Transactions during the year with related parties :
Sr.
No.
Nature of Transactions (Excluding
reimbursements)
Subsidiaries
Associates
1.
2.
3.
4.
5.
6.
Purchase of Fixed Assets
Purchase / Subscription of Investments
Sale / Transfer / Redemption of
Investments
Capital Advance given
Net Loans and advances, Deposits given /
(returned)
Revenue from Operations
52
5
8,317
4,225
11,498
3,265
-
42
7,546
3,151
26,166
19,661
43
105
-
-
-
-
2
-
27
17
336
312
Associates
Key Managerial Personnel
Enterprises over which Key Managerial
Personnel are able to exercise significant
influence
Key
Managerial
Personnel
-
-
-
-
-
-
-
-
-
-
-
-
(` in crore)
Others
Total
-
-
-
-
-
-
-
-
-
-
-
-
95
110
8,317
4,225
11,498
3,265
2
42
7,573
3,168
26,502
19,973
Notes on Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
153
Sr.
No.
Nature of Transactions (Excluding
reimbursements)
Subsidiaries
Associates
7.
8.
9.
Other Income
Purchases / Material Consumed
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, 2013
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
842
673
2,319
357
-
-
-
1
6
29
-
-
21
53
-
29
760
261
41
38
-
-
16
18
16,986
21,260
5,977
3,952
-
42
21,973
14,400
-
299
540
753
167
187
29,867
28,446
134
36
9
7
167
151
1,325
1,140
408
408
-
-
-
-
2,845
2,381
-
-
56
36
258
-
-
-
-
-
2,085
2,085
30
25
2
-
9
12
1,469
1442
252
405
2
1
1,213
1137
1
1
Key
Managerial
Personnel
-
-
-
-
-
-
-
-
-
-
44
44
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(` in crore)
Total
Others
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
218
210
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
851
680
2,486
508
1,325
1,140
408
409
6
29
44
44
2,866
2,434
-
29
816
297
299
38
218
210
16
18
19,071
23,345
6,007
3,977
2
42
21,982
14,412
1,469
1741
792
1,158
169
188
31,080
29,583
135
37
Note :
Figures in italic represents Previous Year’s amount including transactions with Erstwhile Reliance Jamnagar Infrastructure Limited.
154
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
Disclosure in Respect of Material Related Party Transactions during the year :
1.
2.
3.
Purchase of Fixed Assets include Reliance Fresh Limited ` 1 crore (Previous Year ` 2 crore), Reliance Industrial
Infrastructure Limited ` 2 crore (Previous Year ` 1 crore), Reliance Jamnagar Infrastructure Limited ` NIL (Previous
Year ` 2 crore), Reliancedigital Retail Limited ` 4 crore (Previous Year ` 1 crore), Reliance Ports and Terminals
Limited ` 41 crore (Previous Year ` 104 crore), Reliance Footprint Limited ` 1 crore (Previous Year ` NIL), Reliance
Security Solutions Limited ` 3 crore (Previous Year ` NIL), Reliance Haryana SEZ Limited ` 43 crore (Previous
Year ` NIL).
Purchase / Subscription of Investments include Reliance Exploration & Production DMCC ` NIL (Previous Year
` 558 crore), Reliance Exploration & Production Mauritius Limited ` NIL (Previous Year ` 348 crore), Reliance Oil
& Gas Mauritius Limited ` NIL (Previous Year ` 95 crore), Reliance Jio Infocomm Limited ` 2,647 crore (Previous
Year ` 642 crore), Reliance Retail Limited ` NIL (Previous Year ` 2,580 crore ), RIL (Australia) Pty Limited
` 3 crore (Previous Year ` 2 crore), Reliance Commercial Associates Limited ` 5,667 crore (Previous Year ` NIL).
Sale / Transfer of Investments include to Reliance Energy Generation and Distribution Limited ` NIL (Previous
Year ` 3,265 crore), Reliance Industrial Investments and Holdings Limited ` 1,544 crore (Previous Year ` NIL),
Reliance Universal Ventures Limited ` 7,800 crore (Previous Year ` NIL).
Redemption of Investments by Reliance Global Business B.V. ` 49 crore (Previous Year ` NIL), Reliance Industries
(Middle East) DMCC ` 431 crore (Previous Year ` NIL), Reliance Exploration & Production DMCC ` 1,673 crore
(Previous Year ` NIL), Reliance Netherlands B.V. ` 1 crore (Previous Year ` NIL).
4. Capital Advances given include Reliance Haryana SEZ Limited ` NIL (Previous Year ` 42 crore), Reliance Industrial
Infrastructure Limited ` 2 crore (Previous Year ` NIL).
5.
Loans given during the year include Reliance Industrial Investments and Holdings Limited ` 7,684 crore (Previous
Year ` 2,625 crore), Reliance Retail Limited ` 303 crore (Previous Year ` 617 crore), Reliance Exploration &
Production DMCC ` 71 crore (Previous Year ` NIL), Reliance Brands Limited ` 11 crore (Previous Year ` NIL).
Deposits given during the year include Gujarat Chemical Port Terminal Company Limited ` 27 crore (Previous
Year ` 17 crore). Loans returned during the year include Gapco Tanzania Limited ` NIL (Previous Year ` 84 crore),
Reliance Exploration & Production DMCC ` NIL (Previous Year ` 8 crore).
Advances in the nature of application money returned during the year Reliance Prolific Traders Private Limited
` 523 crore (Previous Year ` NIL).
6. Revenue from Operations include to Reliance Jamnagar Infrastructure Limited ` NIL (Previous Year ` 1 crore),
Reliance Retail Limited ` NIL (Previous Year ` 6 crore), Gapco Kenya Limited ` 6,559 crore (Previous Year
` 4,559 crore), Gapco Tanzania Limited ` 2,937 crore (Previous Year ` 526 crore), Recron (Malaysia) Sdn Bhd ` 367
crore (Previous Year ` 124 crore), Reliance Trends Limited ` 6 crore (Previous Year ` 5 crore), LPG Infrastructure
(India) Limited ` 392 crore (Previous Year ` 269 crore), Reliance Petro Marketing Limited ` 77 crore (Previous
Year ` 216 crore), RIL USA Inc. ` 14,242 crore (Previous Year ` 12,572 crore), Reliance Industrial Investments
and Holdings Limited ` 679 crore (Previous Year ` 733 crore), Reliance Fresh Limited ` 9 crore (Previous Year
` 6 crore), Reliance Gems and Jewels Limited ` 475 crore (Previous Year ` 504 crore), Reliance Utilities Private
Limited ` NIL (Previous Year ` 145 crore), Reliance Utilities and Power Private Limited ` 243 crore (Previous Year
` NIL), Reliance Ports and Terminals Limited ` 6 crore (Previous Year ` 20 crore), Reliance Gas Transportation
Infrastructure Limited ` 86 crore (Previous Year ` 147 crore), Reliance Corporate IT Park Limited ` 2 crore
(Previous Year ` 5 crore), Reliance Industries (Middle East) DMCC ` NIL (Previous Year ` 100 crore), Reliance Jio
Infocomm Limited ` 408 crore (Previous Year ` 35 crore), Reliancedigital Retail Limited ` 4 crore (Previous Year
` NIL), Reliance Progressive Traders Private Limited ` 5 crore (Previous Year ` NIL), Reliance Prolific Traders
Private Limited ` 1 crore (Previous Year ` NIL), Reliance Eminent Trading & Commercial Private Limited ` 2
crore (Previous Year ` NIL), Gujarat Chemical Port Terminal Company Limited ` 1 crore (Previous Year ` NIL).
Reliance Industries Limited
155
Notes on Financial Statements for the year ended 31st March, 2013
7. Other Income from Reliance Industrial Investments and Holdings Limited ` 371 crore (Previous Year ` 315 crore),
Reliance Ventures Limited ` 108 crore (Previous Year ` 40 crore), Reliance Strategic Investments Limited ` 86 crore
(Previous Year ` 71 crore), Reliance Exploration & Production DMCC ` 2 crore (Previous Year ` NIL), Gapco Kenya
Limited ` 2 crore (Previous Year ` 4 crore), Gapco Tanzania Limited ` 2 crore (Previous Year ` 4 crore), Recron
(Malaysia) Sdn Bhd ` 6 crore (Previous Year ` 7 crore), Reliance Jio Infocomm Limited ` 41 crore (Previous Year
` 39 crore), Reliance Retail Limited ` 72 crore (Previous Year ` 16 crore), RIL USA Inc. ` 25 crore (Previous Year
` 18 crore), Reliance Holdings USA Inc. ` 122 crore (Previous Year ` 132 crore), Reliance Eagleford Upstream
Holding LP ` NIL (Previous Year ` 2 crore), Reliance Marcellus LLC ` 3 crore (Previous Year ` 10 crore), Reliance
Corporate IT Park Limited ` 1 crore (Previous Year ` 3 crore), Reliance Industrial Infrastructure Limited ` NIL
(Previous Year ` 2 crore), Reliance Europe Limited ` 5 crore (Previous Year ` 5 crore), Gapco Uganda Limited
` 1 crore (Previous Year ` 1 crore), Reliance Gems and Jewels Limited ` NIL (Previous Year ` 11 crore), Reliance
Utilities and Power Private Limited ` 3 crore (Previous Year ` NIL), Reliance Ports and Terminals Limited ` 1
crore (Previous Year ` NIL).
8.
Purchases / material consumed from Recron (Malaysia) Sdn Bhd ` 1 crore (Previous Year ` 2 crore), Reliance Petro
Marketing Limited ` 2 crore (Previous Year ` 3 crore), Reliance Jamnagar Infrastructure Limited ` NIL (Previous
Year ` 350 crore), Reliance Ports and Terminals Limited ` 154 crore (Previous Year ` 138 crore), Reliance Industrial
Infrastructure Limited ` 12 crore (Previous Year ` 11 crore), Reliance Footprint Limited ` 2 crore (Previous Year
` 2 crore), Gujarat Chemical Port Terminal Company Limited ` 1 crore (Previous Year ` 2 crore), Reliance Industries
(Middle East) DMCC ` 2,314 crore (Previous Year ` NIL).
9.
Electric Power, Fuel and Water charges paid to Reliance Utilities and Power Private Limited ` 1,325 crore (Previous
Year ` 369 crore), Reliance Utilities Private Limited ` NIL (Previous Year ` 771 crore).
10. Hire Charges paid to Reliance Industrial Infrastructure Limited ` 30 crore (Previous Year ` 21 crore), Gujarat
Chemical Port Terminal Company Limited ` 57 crore (Previous Year ` 66 crore), Reliance Gas Transportation
Infrastructure Limited ` 196 crore (Previous Year ` 235 crore), Reliance Ports and Terminals Limited ` 125 crore
(Previous Year ` 86 crore), Reliance Corporate IT Park Limited ` NIL (Previous Year ` 1 crore).
11. Employee Benefits Expense include to Reliance People Serve Limited ` 3 crore (Previous Year ` 3 crore), Reliance
Fresh Limited ` 3 crore (Previous Year ` 20 crore), Reliance Polyolefins Limited ` NIL (Previous Year ` 5 crore),
Reliance Trends Limited ` NIL (Previous Year ` 1 crore).
12. Payment to Key Managerial 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 ` 5 crore), Shri P.K. Kapil ` 2 crore (Previous Year ` 2 crore).
13. Sales and Distribution Expenses include to Reliance Fresh Limited ` NIL (Previous Year ` 43 crore), Reliance
Ports and Terminals Limited ` 2,835 crore (Previous Year ` 2,370 crore), Gujarat Chemical Port Terminal Company
Limited ` 10 crore (Previous Year ` 11 crore), Reliance Jamnagar Infrastructure Limited ` NIL (Previous Year
` 7 crore), Gapco Kenya Limited ` NIL (Previous Year ` 3 crore ), Reliance Commercial Land and Infrastructure
Limited ` 5 crore (Previous Year ` NIL), Reliance Polyolefins Limited ` 16 crore (Previous Year ` NIL).
14. Rent paid to Reliance Jamnagar Infrastructure Limited ` NIL (Previous Year ` 29 crore).
15. Professional Fees paid to Reliance Supply Chain Solutions Limited ` NIL (Previous Year ` 18 crore), Reliance
Corporate IT Park Limited ` 736 crore (Previous Year ` 240 crore), Reliance Netherlands B.V. ` NIL (Previous
Year ` 1 crore), Reliance Europe Limited ` 37 crore (Previous Year ` 27 crore), GenNext Ventures LLP ` NIL
(Previous Year ` 2 crore), Reliance Industrial Infrastructure Limited ` 19 crore (Previous Year ` 9 crore), Reliance
Security Solutions Limited ` 1 crore (Previous Year ` NIL), Indiawin Sports Private Limited ` 23 crore (Previous
Year ` NIL).
156
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
16. General Expenses include to Reliance Fresh Limited ` 14 crore (Previous Year ` 11 crore), Reliance Trends Limited
` 6 crore (Previous Year ` 3 crore), Reliance Gems and Jewels Limited ` 7 crore (Previous Year ` 7 crore),
Reliancedigital Retail Limited ` 1 crore (Previous Year ` 3 crore), Indiawin Sports Private Limited ` 12 crore (Previous
Year ` 14 crore), Reliance Commercial Dealers Limited ` 258 crore.
17. Donations to Dhirubhai Ambani Foundation ` 1 crore (Previous Year ` 86 crore), Jamnaben Hirachand Ambani
Foundation ` 8 crore (Previous Year ` 8 crore), HNH Trust and HNH Research Society ` 2 crore (Previous Year
` 3 crore), Hirachand Govardhandas Ambani Public Charitable Trust ` 1 crore (Previous Year ` 1 crore), Reliance
Foundation ` 206 crore (Previous Year ` 112 crore).
18. Finance Costs include to Reliance Corporate IT Park Limited ` 16 crore (Previous Year ` 18 crore).
19. Loans and Advances include Reliance Industrial Investments and Holdings Limited ` 17,642 crore (Previous Year
` 9,905 crore), Reliance Retail Limited ` 928 crore (Previous Year ` 621 crore), Reliance Strategic Investments
Limited ` NIL (Previous Year ` 22 crore), Gapco Kenya Limited ` 2 crore (Previous Year ` 2 crore), Gapco Tanzania
Limited ` 2 crore (Previous Year ` 2 crore), Gapco Uganda Limited ` 1 crore (Previous Year ` 1 crore), Reliance
Jio Infocomm Limited ` NIL (Previous Year ` 10 crore), Recron (Malaysia) Sdn Bhd ` 6 crore (Previous Year ` 7
crore), Reliance Europe Limited ` 8 crore (Previous Year ` 12 crore), RIL USA Inc. ` NIL (Previous Year ` 2 crore),
Reliance Holding USA Inc. ` NIL (Previous Year ` 18 crore), Reliance Marcellus LLC ` NIL (Previous Year ` 2
crore), Reliance Energy Generation and Distribution Limited ` 3,265 crore (Previous Year ` 3,265 crore), Reliance
Exploration & Production DMCC ` 72 crore (Previous Year ` NIL), Reliance Corporate IT Park Limited ` 3 crore
(Previous Year ` 20 crore), Reliance Prolific Traders Private Limited (Application Money) ` NIL (Previous Year
` 523 crore), Reliance Ventures Limited ` 42 crore (Previous Year ` NIL), Reliance Brands Limited ` 11 crore
(Previous Year ` NIL).
20. Deposits include Reliance Jamnagar Infrastructure Limited ` NIL (Previous Year ` 299 crore), Gujarat Chemical
Port Terminal Company Limited ` 69 crore (Previous Year ` 42 crore), Reliance Utilities and Power Private Limited
` 350 crore (Previous Year ` 200 crore), Reliance Ports and Terminals Limited ` 1,050 crore (Previous Year ` 1,050
crore), Reliance Utilities Private Limited ` NIL (Previous Year ` 150 crore).
31.
(a) Disclosure of the Company’s Interest in Oil and Gas Joint Ventures:
Sr.
No.
1
2
3
4
5
6
7
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
KG-DWN-2005/2
% Interest
(30%)
30%
30%
(30%)
60% (60%)
60% (60%)
90% (90%)
60% (60%)
50% (50%)
Name of the Fields in the
Sr.
Joint Ventures
No.
CY-PR-DWN-2001/3
8
9
CY-DWN-2001/2
10 CB-ONN-2003/1
11 KG-DWN-2004/4
12 MN-DWN-2004/1
13 MN-DWN-2004/2
% Interest
70% (70%)
(70%)
70%
(70%)
70%
(70%)
70%
(70%)
70%
(70%)
70%
Figures in bracket represent Previous Year’s (%) Interest.
(b) Disclosure of the blocks surrendered during the year:
Sr. No. Name of the Fields
1
2
3
4
KK-DWN-2001/1
KK-DWN-2001/2
MN-DWN-2003/1
KG-DWN-2004/7
% Interest
70%
70%
55%
70%
Sr. No. Name of the Fields
5
6
7
8
MN-DWN-2004/3
MN-DWN-2004/4
MN-DWN-2004/5
SH (NORTH)-CBM-2003/11
% Interest
70%
70%
70%
100%
Reliance Industries Limited
157
Notes on Financial Statements for the year ended 31st March, 2013
(c) 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
Gas:
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
2012-13
Proved Developed
Reserves (Million MT)
2012-13
2011-12
3.06
-
-
(0.60)
2.46
8.29
(1.69)
(2.61)
(0.93)
3.06
2.42
-
-
(0.60)
1.82
7.66
(1.65)
(2.66)
(0.93)
2.42
Proved Reserves
(Million M3*)
2011-12
2012-13
Proved Developed
Reserves (Million M3*)
2012-13
2011-12
1,03,958
-
59
(6,732)
97,285
1,85,821
(56,621)
(12,418)
(12,824)
1,03,958
25,159
-
43
(6,732)
18,470
1,07,362
(30,543)
(38,836)
(12,824)
25,159
* 1 cubic meter (M3) = 35.315 cubic feet and 1 cubic feet = 1000 BTU
(d) The Government of India, by its letter of 02 May 2012 has communicated that it proposes to disallow certain
costs which the PSC relating to Block KG-DWN-98/3 entitles RIL to recover. RIL continues to maintain that
a Contractor is entitled to recover all of its costs under the terms of the PSC and there are no provisions that
entitle the Government to disallow the recovery of any Contract Cost as defined in the PSC. The Company
has already initiated arbitration on the above issue.
32. As per Accounting Standard (AS) 17 on “Segment Reporting”, segment information has been provided under the
Notes to Consolidated Financial Statements.
33. The figures for the current year include figures of Reliance Jamnagar Infrastructure Limited (RJIL), the wholly owned
subsidiary company engaged in infrastructure development and maintenance developer of the operating Special
Economic Zone, which is amalgamated with the Company with effect from 1st April, 2011 as per the Scheme of
Amalgamation (the Scheme) sanctioned by the Hon’ble High Court of Gujarat at Ahmedabad, and are therefore to
that extent not comparable with those of previous year.
The Scheme became effective on 22nd October, 2012, the appointed date of the Scheme being 1st April, 2011.
In accordance with the scheme and as per approval of the High Court:
a) The assets, liabilities, reserves, rights and obligations of erstwhile RJIL have been transferred to and vested
with the Company with effect from 1st April, 2011 and have been recorded at their respective book values,
under the pooling of interest method of accounting for amalgamation as prescribed in Accounting Standard
14 on Accounting for Amalgamations.
b) Being a wholly owned subsidiary company, 10,00,00,000 equity shares & 18,50,000, 10% non-cumulative
optionally convertible preference shares of erstwhile RJIL held by the Company have been cancelled against
Share Capital of the amalgamating company and no shares has been issued in pursuance to scheme of
amalgamation.
c) Amount added on amalgamation to profit and loss account is inclusive of profit for the period 1st April 2011
till 31st March 2012 and is net of stamp duty paid on amalgamation.
158
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Financial Statements for the year ended 31st March, 2013
34. CONTINGENT LIAbILITIES AND COMMITMENTS (
` in crore)
(I) Contingent Liabilities
(A) Claims against the company / disputed liabilities
not acknowledged as debts
(a)
(b)
In respect of joint ventures
In respect of others
(B) Guarantees
(i) Guarantees to Banks and Financial Institutions
against credit facilities extended to third parties
(a)
(b)
In respect of joint ventures
In respect of others
(ii) 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
(C) Other Money for which the company is contingently liable
(i)
Liability in respect of bills discounted with Banks
(Including third party bills discounting)
In respect of joint ventures
(a)
In respect of others
(b)
(II) Commitments
(A) Estimated amount of contracts remaining to be executed on
capital account and not provided for:
In respect of Joint Ventures
(a)
In respect of others
(b)
(B) Uncalled Liability on Shares and other investments partly
paid ` NIL [Previous Year ` 37,19,139]
(C ) Other commitments
(a) Sales tax deferral liability assigned
(b) Guarantee against future cash calls *
As at
31st March, 2013
As at
31st March, 2012
-
1,663
-
1,343
-
31,080
-
258
160
5,099
-
3,961
441
7,948
-
2,345
1,645
-
29,583
-
159
228
5,167
-
631
340
9,923
-
3,560
3,141
*
The Company has issued guarantees against future cash calls to be made by JV Partners of its wholly owned
subsidiary Reliance Marcellus LLC.
(III) The Income-Tax assessments of the Company have been completed up to Assessment Year 20 10-11. The
disputed demand outstanding up to the said Assessment Year is ` 1,192 crore. Based on the decisions of
the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally
advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision
has been made.
Reliance Industries Limited
159
Notes on Financial Statements for the year ended 31st March, 2013
35. FINANCIAL AND DERIVATIVE INSTRuMENTS
a) Derivative contracts entered into by the Company and outstanding as on 31st March, 2013
(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 ` 1,27,469 crore (Previous Year ` 86,561 crore). Category wise break up is given below:
Particulars
As at 31st March, 2013
(` in crore)
As at 31st March, 2012
Interest Rate Swaps
Currency Swaps
Options
Forward Contracts
32,431
3,319
2,307
89,412
32,193
4,199
25,138
25,031
Sr.
No.
1
2
3
4
(ii) For hedging commodity related risks :
Category wise break up is given below :
Particulars
Sr.
No.
As at 31st March, 2013
Crude Oil
Petroleum
purchases
product
sales
7,334
3,794
44,900
-
16,575
5,488
50,366
23,895
(in Kbbl)
As at 31st March, 2012
Crude oil
Petroleum
purchases
product
sales
16,722
2,309
25,193
2,720
18,842
5,879
81,337
8,875
Forward swaps
Futures
Spreads
Options
1
2
3
4
In addition the Company has net margin hedges outstanding for contracts relating to petroleum product
sales of 85,168 kbbl (Previous Year 81,869 kbbl).
b)
Foreign currency exposures that are not hedged by derivative instruments as on 31st March, 2013 amount to
` 71,627 crore (Previous Year ` 82,198 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
Mumbai
Date : April 16, 2013
A. Siddharth
Partner
A.R. Shah
Partner
K. Sethuraman
Company Secretary
For and on behalf of the Board
M.D. Ambani
- Chairman & Managing Director
N.R. Meswani } Executive Directors
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
R.H. Ambani }Directors
M.L. bhakta
y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
160
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Consolidated Financial Statements & Notes
Independent Auditors’ Report
To The Board of Directors of
Reliance Industries Limited
Report on the Consolidated Financial Statements
1. We have audited the accompanying consolidated financial
statements of RELIANCE INDUSTRIES LIMITED (the
“Company”) and its subsidiaries (collectively referred to as
“the Group”), which comprise the Consolidated Balance
Sheet as at March 31, 2013, the Consolidated Statement of
Profit and Loss and the Consolidated Cash Flow Statement
for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management’s Responsibility for the Consolidated Financial
Statements
2. Management is responsible for the preparation of these
consolidated financial statements that give a true and fair
view of the consolidated financial position, consolidated
financial performance and consolidated cash flows of
the Group in accordance with accounting principles
generally accepted in India including Accounting
Standards referred to in Section 211(3C) of the Companies
Act, 1956 (“the Act”). This responsibility includes the
design, implementation and maintenance of internal
control relevant to the preparation and presentation of the
consolidated financial statements that give a true and fair
view and are free from material misstatement, whether due
to fraud or error.
Auditors’ Responsibility
3.
4.
Our responsibility is to express an opinion on these
consolidated financial statements based on our audit. We
conducted our audit in accordance with the Standards on
Auditing issued by the Institute of Chartered Accountants
of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the consolidated
financial statements are free from material misstatement.
An audit involves performing procedures to obtain
audit evidence about the amounts and disclosures in
the consolidated financial statements. The procedures
selected depend on the auditor’s judgement, including
the assessment of the risks of material misstatement of
the consolidated financial statements, whether due to
fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Group’s
preparation and presentation of the consolidated financial
statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the
accounting estimates made by management, as well as
evaluating the overall presentation of the consolidated
financial statements. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
Reliance Industries Limited
161
Opinion
5.
In our opinion and to the best of our information and
according to the explanations given to us, and based on
consideration of the reports of the other auditors on the
financial statements / consolidated financial statements
of the subsidiaries and associates as noted below, the
consolidated financial statements give a true and fair view
in conformity with the accounting principles generally
accepted in India:
(a)
(b)
(c)
in the case of the Consolidated Balance Sheet, of the
state of affairs of the Group as at March 31, 2013;
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.
Other Matters
6.
Financial statements / consolidated financial statements
of certain subsidiaries which reflect total assets (net) of
` 55,953 crore as at March 31, 2013, total revenue (net)
of ` 45,263 crore and net cash flows amounting to ` 131
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 an associate in which the share of profit of
the Group is ` 11 crore have been audited by one of us.
7. We did not audit the financial statements / consolidated
financial statements of certain subsidiaries, whose financial
statements / consolidated financial statements reflect total
assets (net) of ` 38,202 crore as at March 31, 2013 /
December 31, 2012, total revenues (net) of ` 13,483 crore
and net cash flows amounting to ` (355) crore for the year
ended on that date and financial statements of an associate
in which the share of profit of the Group is ` 1 crore. These
financial statements / consolidated financial statements
have been audited by other auditors whose reports have
been furnished to us and our opinion, is based solely on
the reports of the other auditors.
8. We have relied on the unaudited financial statements of
certain associates wherein the Group’s share of profit
aggregate ` 3 crore. These unaudited financial statements
as approved by the respective Boards 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 associates is based solely on such approved
unaudited financial statements.
Our opinion is not qualified in respect of other matters.
For Chaturvedi & Shah
Chartered Accountants
(Registration No. 101720W)
For Deloitte Haskins & Sells
Chartered Accountants
(Registration No. 117366W)
For Rajendra & Co.
Chartered Accountants
(Registration No. 108355W)
D. Chaturvedi
Partner
Membership No.: 5611
Mumbai
Date : April 16, 2013
A. Siddharth
Partner
Membership No.: 31467
A. R. Shah
Partner
Membership No.:47166
162
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Reliance Industries Limited
Consolidated Balance Sheet as at 31st March, 2013
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 Balances
Short-term Loans and Advances
Other current Assets
TOTAL
Significant Accounting Policies
Notes on financial statements
As per our Report of even date
Note
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
1
2
1
3
4
5
6
7
8
9
10
10
10
10
11
12
13
14
15
16
17
18
19
2,936
1,79,094
2,979
1,66,466
1,82,030
25
949
1,69,445
-
799
70,960
11,588
531
18,362
49,700
23,655
4,557
98,715
34,772
17,191
32,761
13,979
9,025
-
28,869
54,601
9,750
50,456
10,455
1,783
65,352
11,567
421
83,079
77,340
17,283
40,368
17,553
4,403
96,274
3,62,357
79,607
3,27,191
1,03,169
35,645
6,495
18,868
11,423
6,741
1
2,06,443
1,82,342
27,173
46,692
16,939
40,731
9,754
3,560
1,55,914
3,62,357
1,44,849
3,27,191
1 to 35
For and on behalf of the Board
M.D. Ambani
- Chairman & Managing Director
For Chaturvedi & Shah
Chartered Accountants
For Deloitte Haskins & Sells
Chartered Accountants
For Rajendra & Co.
Chartered Accountants
D. Chaturvedi
Partner
Mumbai
Date : April 16, 2013
A. Siddharth
Partner
A.R. Shah
Partner
K. Sethuraman
Company Secretary
N.R. Meswani } Executive Directors
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
R.H. Ambani }Directors
M.L. Bhakta
y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Reliance Industries Limited
Consolidated Statement of Profit and Loss for the year ended 31st March, 2013
Reliance Industries Limited
163
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 (Profit) / Loss transferred (to) / from 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
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
Mumbai
Date : April 16, 2013
A. Siddharth
Partner
A.R. Shah
Partner
K. Sethuraman
Company Secretary
2012-13
3,97,062
7,867
4,04,929
3,26,779
10,425
(4,954)
5,179
3,463
11,232
26,588
3,78,712
26,217
5,327
4
20,886
(7)
20,879
70.65
70.65
(` in crore)
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
7
19,724
66.15
67.18
Note
20
21
22
23
24
25
26
27
27
1 to 35
For and on behalf of the Board
M.D. Ambani
- Chairman & Managing Director
N.R. Meswani } Executive Directors
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
R.H. Ambani }Directors
M.L. Bhakta
y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
164
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Reliance Industries Limited
Consolidated Cash Flow Statement for the year 2012-13
A: CASH FLOW FROM OPERATING ACTIVITIES:
Net Profit before tax as per Statement of Profit and Loss
Adjusted for:
2012-13
26,217
(` in crore)
2011-12
25,408
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
16
(67)
3
95
13,393
(2,081)
(80)
1,129
(1,768)
-
(131)
(5,816)
3,463
7,289
(7,525)
7,608
Miscellaneous Expenditure written off
Share in Income of Associates
Net Prior Year Adjustments
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)
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
Purchase of Investments
Sale / Redemption of Investments
Movement in Loans and Advances
Interest Income
Dividend Income
Net Cash (used in) Investing Activities
8,156
34,373
7,372
41,745
(3)
(4,824)
-
36,918
(30,726)
2,138
(4,84,826)
4,82,102
(2,610)
6,144
128
(27,650)
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)
Consolidated Cash Flow Statement for the year 2012-13 (Contd.)
Reliance Industries Limited
165
C: CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from Issue of Share Capital
Proceeds from Issue of Share Capital to Minority
Redemption of preference Share Capital of Minority
Share Application Money
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
Miscellaneous Expenditure / Issue expenses
Net Cash from / (used in) Financing Activities
Net Increase in Cash and Cash Equivalents
Opening Balance of Cash and Cash Equivalents
Add: Upon addition of Subsidiaries
40,731
49
Closing Balance of Cash and Cash Equivalents
2012-13
12
390
(10)
25
(3,087)
19,182
(10,532)
2,004
(2,949)
(4,626)
(1)
408
9,676
40,780
50,456
(` in crore)
2011-12
87
7
-
-
(279)
6,108
(9,545)
2,389
(2,772)
(3,585)
-
(7,590)
10,592
30,139
40,731
30,139
-
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
Mumbai
Date : April 16, 2013
A. Siddharth
Partner
A.R. Shah
Partner
K. Sethuraman
Company Secretary
For and on behalf of the Board
M.D. Ambani
- Chairman & Managing Director
N.R. Meswani } Executive Directors
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
R.H. Ambani }Directors
M.L. Bhakta
y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
166
Fulfilling India’s Aspirations. With Innovation and Enterprise.
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”
b)
c)
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 Statement of Profit and
Loss 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.
h)
Investment in Associate Companies has been accounted under the equity method as per Accounting Standard
(AS) 23 - “Accounting for Investments in Associates in Consolidated Financial Statements”.
i) 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.
j) 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.
B.
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.
Reliance Industries Limited
167
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.
1.
SHARE CAPITAL
Authorised Share Capital:
500,00,00,000
(500,00,00,000)
100,00,00,000
(100,00,00,000)
Equity Shares of ` 10 each
Preference Shares of ` 10 each
Issued, Subscribed and Paid up:
293,63,08,755
(297,87,04,713)
Equity Shares of ` 10 each fully paid up
Less: Calls in arrears - by others
[` 3,653 (Previous Year ` 3,653)]
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
5,000
1,000
6,000
5,000
1,000
6,000
2,936
-
2,979
-
2,936
2,936
2,979
2,979
1.1
1.2
1.3
1.4
TOTAL
1,45,94,41,214
(1,45,94,41,214)
6,92,52,419
(12,93,92,979)
45,04,27,345
(45,04,27,345)
4,62,46,280
(36,63,431)
Shares were allotted as Bonus Shares in the last five years by capitalisation of Securities Premium
and Reserves.
Shares were allotted in the last five years pursuant to the various Schemes of amalgamation
without payments being received in cash.
Shares were allotted on conversion / surrender of Debentures and Bonds, conversion of Term
Loans, exercise of warrants, against Global Depository Shares (GDS) and re-issue of forfeited
equity shares, since inception.
Shares were bought back and extinguished in the last five years.
1.5 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
No. of Shares
298,10,19,381
13,48,763
36,63,431
297,87,04,713
1.6 The Company has reserved issuance of 13,37,43,590 (Previous year 13,39,30,481) 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 not granted any options to the eligible employees [Previous year 68,817 options,
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 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.
As at
31st March, 2013
No. of Shares
297,87,04,713
1,86,891
4,25,82,849
293,63,08,755
1.7 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.
1.8 Share application money pending allotment represents application money received on account of employees stock
option scheme.
168
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
2.
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)
Add: Transferred from Minority Interest
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 / redemption of 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
Statutory Reserve
As per last Balance Sheet
Add : Transferred from Minority Interest
[Previous Year (` 1,72,043)]
Add : Transferred from Profit and Loss Account
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
3,740
-
3,740
2,081
2
603
49
652
80
13
43
45,258
12
45,270
-
3,044
42,226
-
78
2
6
6,085
9
6,094
2,356
2
1,661
3,740
572
1,097
697
(24)
673
70
9
4
603
1,069
56
13
45,459
85
45,544
11
275
45,258
-
42,226
45,258
1,117
1,117
72
-
6
86
78
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
169
2.
RESERVES AND SURPLUS
(Contd.)
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 of Tax for earlier years (net)
[Previous Year (` 28,34,742)]
(Short) Provision of Tax for earlier years (net) - Minority Interest
[(` 43,379); Previous Year ` NIL]
Less: Expenses on Amalgamation
Add: Profit for the year
Less: Appropriations
Transferred to Statutory reserve
Transferred to General Reserve
Transferred to Capital Redemption reserve on buy back / redemption of shares
Proposed Dividend on Equity shares**
[Dividend per Share ` 9.0/-; (Previous Year ` 8.5/-)]
Tax on Dividend**
Proposed Dividend on preference shares
(Minority Interest ` 19,880/-; Previous Year ` 19,880/-)
Tax on Dividend on preference shares
(Minority Interest ` 3,379/-; Previous Year ` 3,225/-)
TOTAL
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
1,00,004
18,000
84,004
16,000
1,18,004
1,00,004
10
10
14,574
(54)
-
10
20,879
35,389
6
18,000
43
2,628
447
-
-
13,801
-
-
-
19,724
33,525
6
16,000
4
2,531
410
-
-
14,265
1,79,094
14,574
1,66,466
* Cumulative amount withdrawn on account of Depreciation on Revaluation is ` 2,563 crore.
** Proposed Dividend on Equity Shares and Tax on Dividend are net of reversal of excess provision of previous
year pertaining to Equity Shares bought back before the record date of Dividend, aggregating to ` 17 crore.
In view of the loss for the year, the subsidiary Company Reliance Jio Infocomm Limited has not created the Debenture
Redemption Reserve of ` 252 crore (Previous Year ` 152 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.
2.1
170
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
3.
LONG TERM BORROWINGS
Secured
Non Convertible Debentures
Term Loans from Banks
Long Term Maturities of Finance Lease Obligations
Unsecured
Bonds / Debentures
Term Loans- from Banks
Deferred payment Liabilities
TOTAL
As at
31st March, 2013
Current
Non
Current
(` in crore)
As at
31st March, 2012
Current
Non
Current
1,842
4,182
6,024
3,044
7
32
4
11
5
38
2
10
1,881
4,197
6,067
3,056
28,347
-
14,376
-
40,726
13,697
44,900
6,753
6
3
9
3
69,079
13,700
59,285
6,756
70,960
17,897
65,352
9,812
3.1 Non Convertible Debentures referred above to the extent of:
a)
b)
` 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 units) of the Company.
` 2,500 crore are secured by way of first mortgage / charge on the immovable properties situated at Jamnagar
Complex (other than SEZ units) of the Company.
c) ` 1,300 crore are secured by way of first mortgage / charge on all the properties situated at Hazira Complex
and at Patalganga Complex of the Company.
d)
e)
f)
g)
` 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.
` 30 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.
3.2 Secured term Loans from banks are secured by hypothecation of vehicles and are repayable over a period of 3 to
5 years.
3.3 Finance Lease Obligations are secured against leased assets
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
171
4.
DEFERRED TAx LIABILITy (Net)
Deferred Tax Liability
Related to Fixed Assets
Deferred Tax Assets
Related to fixed Assets
Disallowances under the Income Tax Act, 1961
Carried forward Loss of subsidiaries
TOTAL
5.
LONG TERM PROVISIONS
Provisions for Annuities
Others #
TOTAL
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
14,682
14,336
38
109
2,947
45
93
2,631
3,094
11,588
2,769
11,567
As at
31st March, 2013
231
300
531
(` in crore)
As at
31st March, 2012
236
185
421
# Includes provision for Decommissioning and Liability for derivative transactions.
6.
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
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
601
27
1,004
19
628
1,023
17,569
110
14,627
1,580
17,679
55
18,362
16,207
53
17,283
6.1.
* Includes Buyers Credit/Packing Credit
Working Capital Loans referred above to the extent of :
a)
` 453 crore (Previous Year ` 863 crore) are secured by legal charges over certain properties and 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.
` 175 crore (Previous Year ` 160 crore) is secured by hypothecation of Plant and Machinery.
b)
172
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
7.
TRADE PAyABLES
Micro, Small and Medium Enterprises
Others
TOTAL
8.
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
Other payables *
TOTAL
(` in crore)
As at
31st March, 2013
66
As at
31st March, 2012
33
49,634
49,700
40,335
40,368
(` in crore)
As at
31st March, 2013
17,886
As at
31st March, 2012
9,802
11
690
152
1
1
2,017
2,897
23,655
10
523
129
1
1
1,375
5,712
17,553
*
#
Includes statutory dues, security deposits, advance from customers and Income received in advance.
These figures do not include any amounts, due and outstanding, to be credited to Investor Education and
Protection Fund except ` 10 crore (Previous Year ` 9 crore) which is held in abeyance due to legal cases
pending.
9.
SHORT TERM PROVISIONS
Provisions for Employee Benefits
Proposed Dividend
Tax on Dividend
Provision for Wealth tax
Provision for Income Tax (Net of advance tax)
Other provisions *
TOTAL
(` in crore)
As at
31st March, 2013
194
As at
31st March, 2012
235
2,643
449
46
7
1,218
4,557
2,531
410
79
50
1,098
4,403
*
Includes primarily provision for customs duty, Excise Duty on Finished Goods, Other duties and taxes.
Reliance Industries Limited
173
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
10. FIxED ASSETS
(` in crore)
Description
Gross Block
Depreciation / Amortisation
Net Block
As at
01-04-2012
Additions
Deductions/
Adjustments
As at
31-03-2013
As at
01-04-2012
For the Year Deductions/
Adjustments
As at
31-03-2013
As at
31-03-2013
As at
31-03-2012
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
2,584
6,222
11,458
225
261
481
-
1
-
2,809
6,482
11,939
1,39,964
3,092
343
1,42,713
4,314
8,141
980
384
386
45
97
400
119
104
1
-
21
66
29
36
-
-
4,390
8,475
1,070
452
387
45
393
-
3,082
63,598
1,633
1,805
430
197
254
23
109
-
345
7,959
201
413
72
55
14
4
2
-
(5)
391
2
21
22
25
-
-
500
-
3,432
71,166
1,832
2,197
480
227
268
27
2,309
6,482
8,507
2,191
6,222
8,376
71,547
76,366
2,558
6,278
590
225
119
18
2,681
6,336
550
187
132
22
1,74,478
4,780
496
1,78,762
71,415
9,172
458
80,129
98,633
1,03,063
274
10
284
4
-
4
-
-
-
278
10
288
168
10
178
28
-
28
-
-
-
196
10
206
82
-
82
106
-
106
1,74,762
4,784
496
1,79,050
71,593
9,200
458
80,335
98,715
1,03,169
3,469
621
50,847
3,776
58,713
2,33,475
2,38,293
21
56
4,091
1
4,169
8,953
26,665
(2)
8
935
20
961
3,492
669
54,003
3,757
61,921
1,457
31,483
2,40,971
2,33,475
1,725
495
19,977
871
23,068
94,661
80,193
185
45
3,890
79
4,199
13,399
14,827
-
9
109
-
118
576
359
1,910
531
23,758
950
27,149
1,582
138
30,245
2,807
34,772
1,744
126
30,870
2,905
35,645
1,07,484
1,33,487
1,38,814
94,661
1,38,814
17,191
32,761
6,495
18,868
Capital Work-in-Progress
Intangible Assets under Development
$ 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)
ii)
Cost of shares in Co-operative Housing Societies ` 1 crore (Previous Year ` 1 crore).
` 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.
174
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
10.3 Intangible assets - Others include :
i)
ii)
Jetties amounting to ` 812 crore (Previous Year ` 812 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.
` 2,899 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:
i)
ii)
` 5,849 crore (Previous Year ` 3,948 crore) on account of project development expenditure.
` 5,804 crore (Previous Year ` 1,406 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, capital Work-in-progress , Intangible Assets - Development rights and Intangible
Assets under Development include ` 5,948 crore (net loss) [Previous Year ` 7,924 crore (net loss)] on account of
exchange difference during the year.
10.7 Project Development Expenditure:
(in respect of Projects upto 31st March, 2013, included under Capital Work-in-progress and Intangible Assets under
Development)
Opening Balance
Add: Transferred from Profit and Loss Account (Refer Note No. 26)
Expenses on Project under Construction
Interest Capitalised
Less: Project Development Expenses Capitalised during the year
Closing Balance
(` in crore)
2012-13
2011-12
3,948
2,460
128
485
1,296
123
255
1,208
1,909
8
5,849
1,586
98
3,948
10.8 The Gross Block of Fixed Assets includes ` 38,517 crore (Previous Year ` 38,517 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 ` 2,081 crore (Previous Year ` 2,356 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.
10.9 Depreciation for the year includes ` 6 crore (Previous Year ` NIL) capitalised during the year.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
175
11. NON-CURRENT INVESTMENTS
(Long Term Investments)
A .
INVESTMENTS IN ASSOCIATES
In Equity Shares - quoted, fully paid up
68,60,064
(68,60,064)
Reliance Industrial Infrastructure Limited of ` 10 each
In Equity Shares - Unquoted, fully paid up
11,08,500
(11,08,500)
22,500
(22,500)
5,000
(5,000)
74,99,990
(74,99,990)
-
(10,40,000)
-
(7,12,47,314)
62,63,125
(62,63,125)
64,29,20,000
(64,29,20,000)
52,00,000
(26,00,000)
-
(26,00,000)
5,000
(5,000)
-
(2,000)
-
(25,000)
-
(250)
37,24,971
(37,24,971)
51,54,872
(49,04,372)
3,72,38,095
(2,20,00,000)
46,87,500
(46,87,500)
Reliance Europe Limited of Sterling Pound 1 each
Reliance LNG Limited of ` 10 each
[` 2,22,012 ; (Previous Year ` 2,22,012)]
Reliance Commercial Trading Private Limited of ` 10 each
Reliance Commercial Dealers Limited of `10 each
Delta Hydrocarbon S.A. Luxembourg
Delta Corp East Africa Limited of KES 10 each
Indian Vaccines Corporation Limited of `10 each
Gujarat Chemical Port Terminal Company Limited
of ` 1 each
Reliance Utilities and Power Private
Limited Class ‘A’ shares of ` 1 each
[` 40,40,000 ; (Previous Year ` 19,90,000)]
Reliance Utilities Private Limited
Class ‘A’ shares of ` 1 each
[` NIL ; (Previous Year ` 20,50,000)]
Gaurav Overseas Private Limited of ` 10 each
Reliance Investments Holdings B.V. of Euro 50 each
Paradise Global Enterprises B.V. of Euro 1 each
[` NIL ; (Previous Year ` 17,16,668)]
Reliance Investments Sarl of Euro 25 each
[` NIL ; (Previous Year ` 69)]
Deccan Cargo & Express Logistics Private Limited
of ` 100 each
EFS Midstream LLC
Algenol LLC
Aurora Algae Inc
Extramarks Education Private Limited of ` 10 each
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
136
136
30
-
-
10
-
-
1
70
-
-
-
-
-
-
-
1,372
451
157
125
125
125
28
-
-
10
27
93
1
68
-
-
-
1
-
-
-
1,133
503
117
125
176
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
11. NON-CURRENT INVESTMENTS
(Long Term Investments)
5,000
(-)
5,000
(-)
5,000
(-)
5,000
(-)
Reliance Jio Private Limited of ` 10 each
[` 50,000 ; (Previous Year ` NIL)]
Reliance Jio Cloudworks Private Limited of ` 10 each
[` 50,000 ; (Previous Year ` NIL)]
Reliance Jio Electronics Private Limited of ` 10 each
[` 50,000 ; (Previous Year ` NIL)]
Reliance Jio Media Private Limited of ` 10 each
[` 50,000 ; (Previous Year ` NIL)]
In Preference Shares - Unquoted, Fully paid up
50,00,00,000
(50,00,00,000)
9% Non Cumulative Redeemable Preference Shares of Reliance
Gas Transportation Infrastructure Limited of ` 10 each
In Debentures - Unquoted, Fully Paid Up
4,22,335
(4,22,335)
30,47,704
(30,47,704)
1,00,000
(-)
Zero Coupon Secured Optionally Convertible Redeemable
Debentures of Reliance Commercial Trading Private
Limited of ` 1000 each
Compulsorily Convertible Debentures of Deccan Cargo &
Express Logistics Private Limited of ` 100 each
9% Optionally Fully Convertible Debentures of
Extramarks Education Private Limited of ` 10,000 each
In Limited Liability Partnership
GenNext Ventures LLP [` 2,00,000 ; (Previous Year ` NIL)]
Total Investment in Associates (A)
INVESTMENTS IN OTHERS
B.
In Government Securities-Unquoted
6 Years National Savings Certificate (Deposited with
Sales Tax Department and other Government Authorities)
[` 23,49,560 ; (Previous Year ` 19,43,420)]
In Government Securities-quoted
8.33% GOI 2026
Trade Investments
In Equity Shares-Unquoted, fully paid up
1,00,00,000
(1,00,00,000)
5,000
(5,000)
25
(25)
Petronet India Limited of ` 10 each
Retailers Association’s Skill Council of India of ` 10 each
[` 1,00,000 ; (Previous Year ` 1,00,000)]
The Colaba Central Co-operative Consumer’s Wholesale
and Retail Stores Limited (Sahakari Bhandar) of ` 200
each. [` 5,000 ; (Previous Year ` 5,000)]
As at
31st March, 2013
-
(` in crore)
As at
31st March, 2012
-
-
-
-
2,216
2,000
2,000
42
3
100
145
-
-
-
-
650
650
10
-
-
10
4,497
-
-
-
2,106
2,000
2,000
42
3
-
45
-
-
-
-
-
-
10
-
-
10
4,276
Reliance Industries Limited
177
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
11. NON-CURRENT INVESTMENTS
(Long Term Investments)
Other Investments
In Equity Shares-quoted, fully paid up
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
10,59,07,273
(10,59,07,273)
4,85,32,764
(4,85,32,764)
17,50,954
(9,12,919)
97,25,000
(-)
89,82,030
(-)
7,69,000
(-)
41,73,123
(-)
9,33,011
(5,40,727)
-
(8,72,011)
1,44,00,000
(1,44,00,500)
19,48,680
(14,87,160)
-
(2,28,232)
-
(2,67,751)
-
(1,80,258)
EIH Limited of ` 2 each
1,433
1,433
Himachal Futuristic Communications Limited of ` 1 each
ICICI Bank Limited of ` 10 each
NMDC Limited of ` 1 each
NTPC Limited of ` 10 each
Oil India Limited of ` 10 each
Oil and Natural Gas Corporation Limited of ` 5 each
State Bank of India of ` 10 each
HDFC Bank Limited of ` 2 each
Housing Development Finance Corporation Limited of
` 2 each
Den Networks Limited of ` 10 each
Axis Bank Limited of ` 10 each
Canara Bank of ` 10 each
Punjab National Bank of ` 10 each
57
174
142
134
42
136
199
-
949
19
-
-
-
57
79
-
-
-
-
112
39
949
13
26
12
16
3,285
2,736
In Equity Shares-Unquoted, fully paid up
85,000
(85,000)
2,53,800
(2,53,800)
5,000
(5,000)
34,53,378
(33,78,378)
1,000
(1,000)
National Stock Exchange of India Limited of ` 10 each
Shinano Retail Private Limited of `10 each
(` 25,38,000 ; previous Year ` 25,38,000)
Reliance Apparel India Private Limited of ` 10 each
(` 1,00,000 ; previous Year ` 1,00,000)
Terra Power LLC
Air Controls and Chemical Engineering Company Limited
of ` 1 each (` 1,500 ; Previous Year ` 1,500)
28
-
-
83
-
28
-
-
10
-
178
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
11. NON-CURRENT INVESTMENTS
(Long Term Investments)
1,500
(1,500)
-
(18)
1,800
(1,800)
400
(-)
910
(-)
860
(-)
Reliance Research and Development Services Private
Limited of ` 10 each (` 15,000, previous Year ` 15,000)
Parabool Enterprises BV
of Euro 100 each
Teesta Retail Private Limited of ` 10 each
(` 18,000 ; previous Year ` 18,000)
Sonali Land Private Limited of ` 10 each
[` 4,000 ; (Previous Year ` NIL)]
Reliance First Private Limited of ` 10 each
[` 9,114 ; (Previous Year ` NIL)]
Reliance Tankages Private Limited of ` 10 each
[` 8,600 ; (Previous Year ` NIL)]
In Debentures - quoted, fully paid up
1,500
(-)
HDB Financial Services Limited - 9.43%
Secured Redeemable Non Convertible Debentures of
` 5,00,000 each
In Debentures - Unquoted, fully paid up
44,05,550
(-)
2,000
(-)
-
(1,00,00,000)
D. E. Shaw India Securities Private Limited - 7.90%
Optionaly convertible Debentures of ` 100 each
Indiabulls Housing Finance Limited - 10.60%
Secured Redeemable Non Convertible Debentures of
` 10,00,000 each
Zero coupon Unsecured Optionally Fully Convertible
Debentures of Reliance K G Exploration & Production
Private Limited of ` 10 each
In Fixed Maturity Plan - quoted, fully paid up
2,50,00,000
(5,00,00,000)
2,50,00,000
(-)
19,00,00,000
(47,00,00,000)
3,00,00,000
(-)
Axis Fixed Term Plan - (Series 21/22/34) - Growth
Baroda Pioneer Fixed Maturity Plan - Series C -
Growth
Birla Sunlife Fixed Term Plan -
(Series ES/EV/EY/FC/GA/GB/GF) - Growth
BNP Paribas Fixed Term Fund - Series 24 A - Growth
40,00,00,000 DSP Blackrock Fixed Maturity Plan -
(40,50,00,000) (Series 37/38/43/88/89/91/93) - Growth
17,00,00,000 DWS Fixed Maturity Plan -
(20,30,00,000) (Series 6/7/9/10/26/28/30) - Growth
35,20,00,000
(54,70,00,000)
HDFC Fixed Maturity Plan - Growth
(Series 21/23/24)
As at
31st March, 2013
-
(` in crore)
As at
31st March, 2012
-
-
-
-
-
-
111
75
75
72
200
-
272
25
25
190
30
400
170
352
47
-
-
-
-
85
-
-
-
-
10
10
50
-
470
-
405
203
547
Reliance Industries Limited
179
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
11. NON-CURRENT INVESTMENTS
(Long Term Investments)
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
1,50,00,000
(4,50,00,000)
86,50,00,000
(71,50,00,000)
7,00,00,000
(19,20,00,000)
-
(3,50,00,000)
34,50,00,000
(15,00,00,000)
29,50,00,000
(27,00,00,000)
12,50,00,000
(-)
6,50,00,000
(3,50,00,000)
45,00,00,000
(-)
HSBC Fixed Term Plan - (Series 86/90) - Growth
ICICI Prudential Fixed Maturity Plan - Cumulative
(Series 62/63/65/66/67)
IDFC Fixed Maturity Plan - (Series 7/8/11/14/65) -
Growth
India Bulls Fixed Maturity Plan - Growth
JP Morgan Fixed Maturity Plan -
(Series 6/12/13/16/18) - Growth
Kotak Fixed Maturity Plan -
(Series 76/80/82/97/98/99/101/102/103) - Growth
L&T Fixed Maturity Plan - VII - Growth
LIC Nomura MF Fixed Maturity Plan -
(Series 52/56/58) - Growth
Reliance Fixed Horizon Fund - XXII/XXIII
(Series 5/9/33) - Growth
12,00,00,000 Religare Fixed Maturity Plan -
(17,30,00,000) (Series XIII/XIV/XVII/XVIII) - Growth
38,00,00,000
(16,00,00,000)
10,00,00,000
(4,00,00,000)
25,00,00,000
(13,50,00,000)
14,00,00,000
(-)
SBI Debt Fund - (Series 2/12/13/14/15/25) - Growth
Sundaram Fixed Term Plan -
(Series CQ/DC/DF/DH) - Growth
Tata Fixed Maturity Plan - (Series 39/40/42) - Growth
UTI Fixed Income Fund -
(Series XIII - III / XIV - VII) - Growth
15
865
70
-
345
295
125
65
450
120
380
100
250
140
45
715
192
35
150
270
-
35
-
173
160
40
134
-
4,412
3,624
In Mutual Fund - Unquoted fully paid up
-
(1,15,35,485)
-
(3,37,19,111)
DWS Insta Cash Plus Fund - Institutional - Bonus
Option of ` 10 each
DWS Insta Cash Plus Fund - Bonus Option of ` 10 each
In Public Sector Undertaking/Public Financial Institution &
Corporate Bonds - quoted, fully paid up
-
(1,287)
11.80% TISCO Perpetual bonds of ` 10,00,000 each
-
-
-
-
-
In Others
11,53,511
(7,20,000)
Faering Capital India Evolving Fund of ` 1,000 each
115
11
33
44
131
131
72
180
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
11. NON-CURRENT INVESTMENTS
(Long Term Investments)
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
3,79,028
(4,05,950)
50,000
(50,000)
5,000
(5,000)
2,000
(2,000)
21,600
(21600)
25,000
(25,000)
HDFC India Real Estate of ` 1,000 per unit
JM Financial Property Fund - I of ` 9,547.42 per unit;
(Previous Year ` 9,722.59 per unit)
MPM Bioventure IV-QP, LP, USA
Multiples Private Equity Fund - Scheme 1
of ` 1,00,000 each, ` 46,350 paid up
(Previous Year ` 25,700 paid up)
Peninsula Realty Fund of ` 1,00,000 each
Urban Infrastructure Opportunities Fund
of ` 87,500 per unit (Previous Year ` 91,500 per unit)
LICHFL Urban Development Fund
of ` 10,000 each (` 2,000 paid up)
Sundaram Mutual Fund (` NIL, previous Year ` 5,000)
In ETF - quoted, fully paid up
3,99,000
(-)
Kotak Gold Exchange traded fund of ` 100 each
Total Investments in Others (B)
Total Long Term Investments (A + B)
12. LONG-TERM LOANS AND ADVANCES
40
48
99
24
26
192
5
-
549
118
118
43
49
101
13
23
201
5
-
507
-
-
9,482
13,979
7,147
11,423
(Unsecured and Considered Good)
As at
31st March, 2013
2,467
2,733
86
693
3,046
9,025
Includes ` 2 crore (Previous Year ` NIL) to Reliance Industrial Infrastructure Limited.
Includes ` 1,977 crore (Previous Year ` 1,873 crore) relating to Deposits with related parties (Refer Note No. 28)
Includes claims receivable from statutory authorities, loans to employees etc.
Capital Advances#
Deposits##
Loans and Advances to related parties (Refer Note No. 28)
Advance Income Tax (Net of Provision)
Other Loans and Advances*
TOTAL
#
##
*
(` in crore)
As at
31st March, 2012
2,260
2,453
277
1,329
422
6,741
13. OTHER NON CURRENT ASSETS
Miscellaneous Expenditure (to the extent not written off or adjusted)
(` 7,61,510)
TOTAL
As at
31st March, 2013
-
(` in crore)
As at
31st March, 2012
1
-
1
Reliance Industries Limited
181
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
14. CURRENT INVESTMENTS
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
164
-
Investment in Equity Shares - quoted, Fully Paid up
74,62,500
(-)
18,88,171
(-)
-
(4,61,520)
NTPC Limited of ` 10 each
Oil and Natural Gas Corporation Limited of ` 5 each
Den Networks Limited of ` 10 each
Investment 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
Investment in Government Securities - quoted
7.59% GOI 2016
8.20% GOI 2025
8.33% GOI 2026
8.97% GOI 2030
6.35% GOI 2020
8.53% MAHA SDL 2020
(` 30,264 ; Previous Year ` 30,000)
8.13% GOI 2022 (Previous Year ` 48,000)
7.80% GOI 2020
(` 7,91,120; Previous Year ` 7,91,000)
8.79% GOI 2021
8.88% Gujarat 2022
(` 20,13,200; Previous Year ` NIL)
9.12% Gujarat 2022
8.85% MAHA SDL 2022
(` 19,01,520; Previous Year ` NIL)
9.24% Punjab 2022
(` 4,03,620; Previous Year ` NIL)
8.13% OIL MKT COS SB 2021
(` NIL; Previous Year ` 14,80,000)
8.65% WB 2021
(` NIL; Previous Year ` 1,00,000)
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
106
58
-
5
278
102
149
1
-
22
-
16
-
2
-
-
-
-
-
-
-
-
-
-
4
47
-
-
4
5
-
-
-
1
-
-
-
-
-
-
-
-
-
-
3
1
1
2
2
3
575
18
182
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
Investment in Debentures or Bonds - quoted, Fully Paid up
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
-
(250)
-
(1,000)
349
(1,250)
38,307
(18,387)
6,500
(10,750)
15,095
(15,095)
42,63,562
(32,62,862)
5,153
(5,550)
7,250
(3,500)
49,44,752
(49,44,752)
42,74,393
(42,76,093)
120
(920)
595
(450)
-
(550)
650
(250)
1,320
(1,370)
Axis Bank Limited
CitiFinancial Consumer Finance India Limited
EXIM Bank of India
-
-
35
Housing Development Finance Corporation Limited
3,839
Infrastructure Development Finance Company Limited
India Infrastructure Finance Company Limited
Indian Railway Finance Corporation Limited
LIC Housing Finance Limited
National Bank for Agriculture and Rural Development
National Highways Authority of India
Power Finance Corporation Limited
Power Grid Corporation of India Limited
Rural Electrification Corporation Limited
Steel Authority of India Limited
Tata Steel Limited
Tata Power Company Limited
Investment in Debentures or Bonds - Unquoted, Fully Paid up
Tata Sons Limited
3,000
(-)
Investment in Fixed Maturity Plan - quoted, Fully Paid up
5,00,00,000
(6,50,00,000)
2,50,00,000
(1,20,00,000)
12,00,00,000
(-)
Axis Fixed Term Plan - (Series 15/16/21/22) - Growth
Baroda Pioneer Fixed Maturity Plan -
(Series A/2) - Growth
Birla Sun Life Fixed Term Plan -
(Series FM/FO/FP) - Dividend
25
98
120
1,822
1,060
149
350
545
349
494
858
112
44
53
26
142
65
12
-
6,247
-
647
149
521
515
726
494
688
15
59
-
58
133
50
25
120
7,879
300
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
183
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
57,50,00,000
(61,00,00,000)
1,50,00,000
(-)
5,00,00,000
(-)
-
(10,00,00,000)
53,00,00,000
(41,00,00,000)
32,80,00,000
(14,30,00,000)
5,00,00,000
(-)
62,70,00,000
(44,00,00,000)
4,50,00,000
(-)
88,00,00,000
(39,00,00,000)
-
(5,00,00,000)
2,98,46,064
(12,04,25,008)
3,00,00,000
(-)
9,96,19,002
(-)
2,50,00,000
(-)
44,30,00,000
(15,50,00,000)
12,00,00,000
(-)
3,50,00,000
(-)
21,50,00,000
(10,50,00,000)
36,00,00,000
(23,00,00,000)
4,00,00,000
(-)
14,50,00,000
(-)
Birla Sun Life Fixed Term Plan - (Series DB/DL/DN/DO/DQ/
DS/ES/EV/EW/EY/FA/FC/FD/FM/FO/FP/HD)- Growth
Birla Sunlife Interval Income Fund -
Annual Plan 5 - Growth
BNP Paribas Fixed Term Fund Series 25A - Growth
Canara Robeco Fixed Maturity Plan -
(Series 6 / 7) - Growth
DSP Blackrock Fixed Maturity Plan -
(Series 7/10/12/16/18/37/38/39/43/44/90/94) - Growth
DWS Fixed Maturity Plan -
(Series 6/7/9/10/11/18/27/29/90/92) - Growth
HDFC Annual Interval Fund - Series 1 - Growth
HDFC Fixed Maturity Plan
(Series XVI/XVIII/XIX/XXI) - Growth
HSBC Fixed Term Series 86 - Growth
ICICI Prudential Fixed Maturity Plan
(Series 54/59//62/63/67) - Cumulative
ICICI Prudential Fixed Maturity Plan
Series 55 - Dividend
ICICI Prudential Interval Fund Annual Interval Plan - I
Institutional Cumulative
ICICI Prudential Interval Fund Series VI Annual
Interval Plan - C - Growth
ICICI Prudential Long Term Plan Premium Plus -
Annual Dividend
IDBI Fixed Maturity Plan Series - III - Growth
IDFC Fixed Maturity Plan -
(Series 7/8/12/13/52/64/65/66/78/79) - Growth
IDFC Series Interval Fund - (Series I/II) - Growth
Indiabulls Fixed Maturity Plan - Growth
JP Morgan India Fixed Maturity Plan - (Series 6/8/17) -
Growth
Kotak Fixed Maturity Plan
(Series 57/60/62/76/80/82/83/100) - Growth
L&T Fixed Maturity Plan - VII - Growth
LIC Nomura MF Fixed Maturity Plan
(Series 52/53/54/60/61) - Growth
575
15
50
-
530
328
50
627
45
880
-
32
30
100
25
443
120
35
215
360
40
145
610
-
-
100
410
143
-
440
-
390
50
130
-
-
-
155
-
-
105
230
-
-
184
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
11,00,00,000
(-)
24,80,00,000
(6,00,00,000)
14,00,00,000
(-)
53,00,00,000
(76,50,00,000)
6,50,00,000
(2,20,00,000)
13,50,00,000
(24,00,00,000)
5,49,80,083
(6,66,98,706)
13,00,00,000
(2,61,12,073)
22,50,00,000
(-)
Reliance Fixed Horizon Fund - XXIII - Series 6 - Growth
Religare Fixed Maturity Plan -
(Series VIII/IX/XIII/XIV/XVII/XVIII) - Growth
SBI Debt Fund (Series 5/7) - Dividend
SBI Debt Fund (Series 1/6/7/11/12/13/17/18/19/23/24)
- Growth
Sundaram Fixed Term Plan (Series BK/BN/CQ/DG) -
Growth
Tata Fixed Maturity Plan (Series 34/36/37/39/40) -
Growth
UTI Fixed Income Interval Fund - Annual Interval Plan
(Series - II/III) - Institutional Growth
UTI Fixed Term Income Fund Series IX / XII -
Dividend
UTI Fixed Term Income Fund Series XIV - V/VI/VII -
Growth
Investment in Mutual Fund - Unquoted
11,08,67,422
(-)
1,31,48,48,855
(41,19,71,606)
5,56,20,512
(-)
2,31,91,812
(-)
4,59,45,325
(-)
5,96,310
(-)
11,14,37,619
(-)
48,23,954
(-)
11,66,82,484
(-)
1,04,54,867
(-)
4,66,90,013
(-)
14,48,86,484
(2,48,38,796)
Axis Short Term Fund - Institutional Growth
Birla Sunlife Dynamic Bond Fund - Retail - Growth
Birla Sunlife Short Term Fund - Growth
Canara Robeco Short Term Fund - Regular Growth
Canara Robeco Short Term Institutional Growth Fund
DSP Black Rock Liquidity Fund - Institutional Plan
Growth
DSP BlackRock Short Term Fund - Growth
DSP BlackRock Strategic Bond Fund -Institutional
Plan - Growth
DWS GILT Fund - Regular Plan - Growth
DWS Insta Cash Plus Fund - Super Institutional Plan -
Bonus
DWS Money Plus Fund - Regular Plan
(Principle Units) - Bonus
DWS Premier Bond Fund - Premium Plus Plan - Growth
110
248
140
530
65
135
70
130
225
135
2,418
225
30
60
100
210
625
150
-
46
150
6,493
4,036
-
60
-
765
22
240
83
26
-
-
730
-
-
-
-
-
-
-
-
-
25
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
185
As at
31st March, 2013
12,93,69,261
(3,77,86,469)
60,38,424
(-)
19,73,54,869
(-)
14,69,19,109
(-)
22,67,48,577
(-)
86,58,009
(-)
25,68,76,110
(-)
22,68,83,560
(-)
16,70,54,915
(-)
27,12,060
(-)
3,46,29,245
(-)
42,70,29,582
(3,99,55,814)
14,42,759
(-)
4,39,26,695
(-)
2,33,10,265
(-)
42,82,45,478
(-)
9,99,03,094
(-)
1,75,479
(-)
23,42,26,669
(-)
10,38,13,700
(-)
46,01,17,659
(-)
11,10,88,159
(-)
DWS Short Maturity Fund - Premium Plus Growth
DWS Treasury Fund - Cash - Regular Plan - Bonus
HDFC Short Term Opportunities Fund - Growth
HDFC Floating Rate Income Fund - Long Term Plan
- Growth
HDFC High Interest Fund - Short Term Plan - Growth
HDFC Liquid Fund Growth
HDFC Medium Term Opportunities Fund - Growth
HDFC Short Term Plan - Growth
HSBC Income Fund Short Term Institutional Plus
Growth
ICICI Prudential Liquid fund - Growth
ICICI Prudential Gilt Treasury Plan - Growth
ICICI Prudential Institutional Short Term Plan -
Cumulative Option
ICICI Prudential Liquid - Growth
IDBI Short Term Bond Fund - Growth
IDFC - SSIF - Medium Term - Plan - Growth
IDFC - SSIF - Short Term - Plan D - Growth
IDFC Banking Debt Fund - Regular Plan - Growth
IDFC Cash Fund - Growth - (Regular Plan)
IDFC Super Saver Income Fund -Medium Term - Plan
B - Growth
J P Morgan India Short term Income Fund - Growth
J P Morgan India Treasury Fund - Direct Plan - Bonus
JM High Liquidity Fund - Bonus Option - Bonus Units
147
59
240
300
500
20
305
485
180
47
100
975
25
50
45
625
100
25
285
125
700
109
(` in crore)
As at
31st March, 2012
40
-
-
-
-
-
-
-
-
-
-
85
-
-
-
-
-
-
-
-
-
-
186
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
8,84,33,460
(-)
7,51,00,293
(-)
1,17,585
(7,37,24,677)
5,81,04,402
(-)
4,70,53,586
(-)
12,02,16,390
(-)
13,27,54,784
(-)
18,67,56,236
(-)
52,63,28,065
(-)
1,90,032
(-)
18,37,26,275
(-)
4,32,75,524
(-)
3,02,49,315
(-)
9,21,73,180
(-)
1,94,65,573
(-)
37,23,783
(-)
1,90,537
(-)
30,35,68,335
(-)
20,30,859
(-)
49,784
(-)
-
(15,00,000)
2,70,06,021
(1,27,72,028)
Kotak Bond (Short Term) - Growth
L & T - Short Term Opportunities Fund - Growth
LIC Nomura MF Liquid Fund - Growth
DWS Treasury Fund - Investment - Bonus
Morgan Stanley Short Term Bond Fund - Institutional
Plus Growth
Reliance Income Fund - Growth Plan - Bonus Option
Religare Active Income Fund - Growth
Religare Short Term Fund - Growth
SBI Dynamic Bond Fund - Growth
SBI Premier Liquid Fund - Growth
SBI Short Term Debt Fund - Growth
Sundaram Flexible Fund Short - Term Plan - Growth
Sundaram Monthly Income Plan MOD Bonus
(Principal Units)
Tata Income Fund Plan A - Appreciation Option - Bonus
TATA Short Term Bond Fund Plan A - Growth
UTI Floating Rate Fund - STP - Growth
UTI Money Market Fund - Institutional Plan - Growth
UTI Short Term Income Fund Institutional - Growth
Option
UTI Treasury Advantage Fund - Institutional Plan
Birla Sunlife Floating Rate Fund Short Term Growth
Birla Sunlife Short Term Fixed Maturity Plan -Series-1
HDFC Liquid Fund Premium Plan - Daily Dividend
As at
31st March, 2013
185
80
25
75
60
131
175
285
725
35
235
80
34
97
40
700
25
400
250
1
-
33
(` in crore)
As at
31st March, 2012
-
-
141
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2
42
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
187
As at
31st March, 2013
28,13,853
(-)
8,38,534
(-)
24,599
(-)
6,04,758
(7,94,199)
37,41,132
(-)
1,43,956
(-)
35,24,215
(26,04,607)
9,61,89,785
(-)
1,90,639
(1,41,586)
-
(4,50,000)
-
(5,00,120)
-
(9,09,761)
47,177
(39,140)
317
(-)
HDFC Liquid Fund - Growth
HDFC Liquid Fund - Dividend
HDFC Cash Management Fund-Savings Plan-Direct Plan
- Dividend (` 3,00,000; Previous Year ` NIL)
HDFC Cash Management Fund-Savings Plan -
Dividend
ICICI Prudential Liquid Super Institutional - Dividend
ICICI Prudential Liquid Plan - Direct - Growth
ICICI Prudential Institutional Liquid Plan-Super
Institutional Daily Dividend
IDFC Banking Debt Fund - Regular Plan - Growth
Fund
JM High Liquidity Fund
(Previous Year ` 25,00,000)
Kotak Fixed Maturity Plan 6M Series 9
(` NIL; Previous Year ` 25,00,000)
Reliance Fixed Horizon Fund XXI Series3 Growth
Tata Fixed Income Portfolio Fund-B2
SBI-Premier Liquid Fund - Growth
SBI - Premier Liquid Fund Super Institutional - Growth
(` 5,59,864; Previous Year ` NIL)
6
1
-
1
37
3
36
97
1
-
-
-
9
-
(` in crore)
As at
31st March, 2012
-
-
-
1
-
-
26
-
-
-
1
1
7
-
Investment in certificate of deposits with Scheduled Banks - Unquoted
Total Current Investments
15.
INVENTORIES
Raw Materials
Raw Materials in Transit
Stock-in-Process
Stock-in-Trade
Finished Goods
Stores, Chemicals and Packing Materials
TOTAL
13,458
-
28,869
1,101
15,720
27,173
As at
31st March, 2013
7,938
13,820
11,537
3,428
13,913
3,965
54,601
(` in crore)
As at
31st March, 2012
8,446
11,008
10,535
1,935
11,218
3,550
46,692
188
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
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, 2013
60
9,690
9,750
As at
31st March, 2013
1,205
59
49,192
50,456
(` in crore)
As at
31st March, 2012
50
16,889
16,939
(` in crore)
As at
31st March, 2012
1,41 2
34
39,285
40,731
#
*
Balance with Banks includes Unclaimed Dividend of ` 152 crore (Previous Year ` 129 crore)
Fixed deposits with banks include deposits of ` 13,189 crore (Previous Year ` 6,891 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*#
TOTAL
As at
31st March, 2013
8
2,809
421
7,217
10,455
(` in crore)
As at
31st March, 2012
12
1,861
378
7,503
9,754
* Netted off for Loans and Advances considered doubtful ` 70 crore (Previous Year ` 72 crore)
# Includes primarily Interest Receivable on Fixed Deposits with banks, Share Application Money, Advance to
sundry creditors and advance to employees.
19. OTHER CURRENT ASSETS
Interest accrued on Investment
Share Application Money
Others *
TOTAL
*
Includes Interest Receivables.
20. REVENUE FROM OPERATIONS
Sale of products
Income from services
Less: Excise Duty/ Service tax recovered
TOTAL
As at
31st March, 2013
510
955
318
1,783
(` in crore)
As at
31st March, 2012
261
3,143
156
3,560
2012-13
4,06,427
1,965
4,08,392
11,330
3,97,062
(` in crore)
2011-12
3,67,560
1,011
3,68,571
10,070
3,58,501
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
189
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
[` NIL (Previous Year ` 14,64,610)]
Share in income of Associates
Other non operating income
TOTAL
22. 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
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
2012-13
(` in crore)
2011-12
751
129
3,287
5,816
4,167
15
15
131
30
1,026
670
-
1,768
67
85
7,867
1,696
70
231
6,194
(` in crore)
2012-13
2011-12
13,153
10,535
28,878
23,688
10,965
9,879
20,844
-
922
489
4,405
95
36
1,303
465
-
17,341
11,537
13,153
10,535
23,688
236
23,924
(4,954)
2012-13
4,529
329
321
5,179
2012-13
2,574
21
868
3,463
20,844
(2,844)
(` in crore)
2011-12
3,378
295
282
3,955
(` in crore)
2011-12
2,187
23
683
2,893
190
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
25. DEPRECIATION AND AMORTISATION ExPENSE
Depreciation and Amortisation
Less: Transferred from revaluation reserve
(Refer Note No. 10.8)
Less: Transferred from capital reserve
TOTAL
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
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
2012-13
13,393
2,081
80
11,232
2012-13
(` in crore)
2011-12
14,827
2,356
70
12,401
(` in crore)
2011-12
3,943
4,740
1,876
115
849
255
(28)
1
4,747
824
458
11,751
104
14,848
49
7,425
6,029
749
1,216
574
557
117
306
149
22
55
51
290
4,285
7,993
1,651
86
837
(57)
50
3
5,364
1,105
956
876
987
762
652
212
260
226
24
110
-
285
4,086
Less: Transfer to Project Development Expenditure (Net)
123
TOTAL
21,847
# Excise Duty shown under expenditure represents the aggregate of excise duty borne by the Company and
4,394
128
26,588
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
` NIL (Previous Year ` 258 crore), an exceptional item.
^ An exceptional item
26.1 A sum of ` 3 crore [Previous Year ` 1 crore] is included under establishment expenses representing Net Prior Period
Items.
Reliance Industries Limited
191
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
27. EARNINGS PER SHARE (EPS)
i) Net Profit after tax (after adjusting Minority Interest) as per Statement
of Profit and Loss (` in crore)
ii) (Short) provision of tax for earlier years (net) (` in crore)
iii)
[Previous Year (` 28,34,742)]
(Short) Provision of Tax for earlier years (net) - Minority Interest
[(` 43,379); Previous Year ` NIL]
iv) Net profit attributable to equity shareholders (` in crore)
v) Net Profit before Exceptional item (` in crore)
vi) Weighted Average number of equity shares used as denominator for
calculating EPS
2012-13
20,879
(54)
2011-12
19,724
-
20,825
20,825
294,76,09,853
19,724
20,033
298,18,71,615
vii) Basic and Diluted Earnings per share (`)
viii) Basic and Diluted Earnings (before exceptional items) per share (`)
ix) Face Value per equity share (`)
70.65
70.65
10.00
66.15
67.18
10.00
28. Related Party Disclosures :
(i) List of related parties and relationships:
Relationship
Associate Companies / Joint Ventures
Name of the Related Party
Sr.
No.
1. Reliance Industrial Infrastructure Limited
2. Reliance Europe Limited
3. Reliance LNG Limited
4. Indian Vaccines Corporation Limited
5. Gujarat Chemical Port Terminal Company Limited
6. Reliance Utilities and Power Private Limited
7. Reliance Utilities Private Limited
8. Reliance Ports and Terminals Limited
9. Reliance Gas Transportation Infrastructure Limited
10. Reliance Commercial Dealers Limited
11. Reliance Commercial Trading Private Limited
12. Diesel Fashion India Reliance Private Limited
13. Atri Exports Private Limited
14. Shree Salasar Bricks Private Limited
15. N.C. Trading Company Private Limited
16. KCIPI Trading Company Private Limited
17. Prakhar Commercials Private Limited
18. Pepino Farms Private Limited
19. Marugandha Land Developers Private Limited
20. Jaipur Enclave Private Limited
21. Einsten Commercials Private Limited
22. Ashwani Commercials Private Limited
23. Vishnumaya Commercials Private Limited
24. Carin Commercials Private Limited
25. Netravati Commercials Private Limited
192
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
Name of the Related Party
Sr.
No.
26. Rakshita Commercials Private Limited
27. Kaniska Commercials Private Limited
28. Rocky Farms Private Limited
29. Centura Agro Private Limited
30. Fame Agro Private Limited
31. Noveltech Agro Private Limited
32. Honeywell Properties Private Limited
33. Parinita Commercials Private Limited
34. Chander Commercials Private Limited
35. Creative Agrotech Private Limited
36. Reliance-Vision Express Private Limited
37. Marks and Spencer Reliance India Private Limited
38. Reliance-GrandVision India Supply Private Limited
39. Office Depot Reliance Supply Solutions Private Limited
40. Supreme Tradelinks Private Limited
41. Reliance Paul & Shark Fashions Private Limited
42. Gaurav Overseas Private Limited
43. Reliance Innovative Building Solutions Private Limited
44. Deccan Cargo & Express Logistics Private Limited
45. IMG Reliance Private Limited
46. EFS Midstream LLC
47. Zegna South Asia Private Limited
48. D.E. Shaw India Securities Private Limited
49. India Gas Solutions Private Limited
50. Algenol LLC
51. Aurora Algae Inc.
52. Extramarks Education Private Limited
53. GenNext Ventures LLP
54. Iconix Lifestyle India Private Limited
55. In Vogue Brand Solutions Private Limited
56. Reliance Jio Cloudworks Private Limited
57. Reliance Jio Electronics Private Limited
58. Reliance Jio Media Private Limited
59. Reliance Jio Private Limited
60. Shri Mukesh D. Ambani
61. Shri Nikhil R. Meswani
62. Shri Hital R. Meswani
63. Shri P.M.S. Prasad
64. Shri P. K. Kapil
Relationship
Associate Companies / Joint Ventures
Key Managerial Personnel
Reliance Industries Limited
193
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
Name of the Related Party
Sr.
No.
65. Dhirubhai Ambani Foundation
66. Jamnaben Hirachand Ambani Foundation
67. Hirachand Govardhandas Ambani Public Charitable Trust
68. HNH Trust and HNH Research Society
69. Reliance Foundation
(ii) Transactions during the year with related parties :
Relationship
Enterprises over which Key Managerial
Personnel are able to exercise significant
influence
Nature of Transactions (Excluding reimbursements)
Associates
Sr.
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
Purchase of Fixed Assets
Purchase / Subscription of Investments
Sale / Transfer / Redemption of Investments
Capital Advance given
Net Loans and advances, Deposits given / (returned)
Unsecured Loans (taken) / repaid
Revenue from Operations
Other Income
Purchases / Material Consumed
10. Electric Power, Fuel and Water
11. Hire Charges
12. Employee Benefits Expense
13. Payment to Key Managerial Personnel
14. Sales and Distribution Expenses
15. Rent
Key
Managerial
Personnel
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
44
44
-
-
-
-
(` in crore)
Total
Others
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
48
248
210
1,106
1
-
2
-
(22)
221
-
(27)
385
321
12
7
167
151
1,325
1,140
423
408
-
5
44
44
2,845
2,381
1
-
48
248
210
1,106
1
-
2
-
(22)
221
-
(27)
385
321
12
7
167
151
1,325
1,140
423
408
-
5
-
-
2,845
2,381
1
-
194
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
Nature of Transactions (Excluding reimbursements)
Associates
Sr.
No.
16. Professional Fees
17. General expenses
18. Donations
19. Finance Cost
20.
Investment written off (net)
Balance as at 31st March, 2013
21.
Investments
22. Trade Receivables
23. Capital Advance
24. Loans and Advances
25. Deposits
26. Unsecured Loans
27. Trade and Other Payables
28. Finance Lease Obligations
29. Financial Guarantees
30. Performance Guarantees
Note :
Figures in italic represents Previous Year’s amount.
56
36
275
-
-
-
5
33
-
51
4,264
4,097
33
26
2
-
94
289
1,977
1,873
55
53
257
498
13
15
1,213
1,137
1
1
Key
Managerial
Personnel
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(` in crore)
Total
Others
-
-
-
-
218
210
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
56
36
275
-
218
210
5
33
-
51
4,264
4,097
33
26
2
-
94
289
1,977
1,873
55
53
257
498
13
15
1,213
1,137
1
1
Disclosure in respect of Material Related Party Transactions during the year :
1.
Purchase of Fixed Assets include Reliance Ports and Terminals Limited ` 46 crore (Previous Year ` 248 crore),
Reliance Industrial Infrastructure Limited ` 2 crore (Previous Year ` NIL).
Purchase / Subscription of Investments include EFS Midstream LLC ` NIL (Previous Year ` 474 crore), Algenol
LLC ` 26 crore (Previous Year ` 504 crore), Aurora Algae LLC ` 84 crore (Previous Year ` 117 crore), Extramarks
Education Private Limited ` 100 crore (Previous Year ` NIL), Reliance Commercial Dealers Limited ` NIL (Previous
Year ` 2 crore), Delta Corp East Africa Limited ` NIL (Previous Year ` 9 crore).
2.
Reliance Industries Limited
195
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
3.
Sale / Transfer / Redemption of investments include Reliance Investments Holdings B.V. ` 1 crore (Previous Year
` NIL).
4. Capital Advances given include Reliance Industrial Infrastructure Limited ` 2 crore (Previous Year ` NIL).
5.
Loans given during the year include Reliance Commercial Trading Private Limited ` 1 crore (Previous Year ` 4
crore), Reliance Commercial Dealers Limited ` NIL (Previous Year ` 67 crore), Gujarat Chemical Port Terminal
Company Limited ` NIL (Previous Year ` 17 crore), Delta Corp East Africa Limited ` NIL (Previous Year ` 8
crore). Loan returned during the year include Reliance Commercial Dealers Limited ` 69 crore (Previous Year
` NIL).
Deposits given include Gujarat Chemical Port Terminal Company Limited ` 27 crore (Previous Year ` NIL), Atri
Exports Private Limited ` 1 crore (Previous Year ` NIL), Shree Salasar Bricks Private Limited ` 2 crore (Previous
Year ` NIL), Ashwani Commerical Private Limited ` 17 crore (Previous Year ` NIL), Einsten Commercials Private
Limited ` NIL (Previous Year ` 1 crore), Carin Commercials Private Limited ` NIL (Previous Year ` 86 crore),
Kaniska Commercials Private Limited ` NIL (Previous Year ` 23 crore), Gaurav Overseas Private Limited ` NIL
(Previous Year ` 15 crore). Deposits return during the year include Kaniska Commercials Private Limited ` 1 crore
(Previous Year ` NIL).
6. Unsecured Loan taken during the year include Reliance Europe Limited ` NIL (Previous Year ` 27 crore).
7. Revenue from Operations includes Reliance Ports and Terminals Limited ` 7 crore (Previous Year ` 22 crore),
Reliance Gas Transportation and Infrastructure Limited ` 134 crore (Previous Year ` 153 crore), Reliance Utilities
Private Limited ` NIL (Previous Year ` 145 crore), Reliance Utilities and Power Private Limited ` 243 crore
(Previous Year NIL), Gujarat Chemical Port Terminal Company Limited ` 1 crore (Previous Year ` NIL).
8. Other Income includes Interest from Reliance Industrial Infrastructure Limited ` NIL (Previous Year ` 2 crore),
Guarantee Commission from Reliance Europe Limited ` 5 crore (Previous Year ` 5 crore), Reliance Utilities and
Power Private Limited ` 3 crore (Previous Year ` NIL), Reliance Ports and Terminals Limited ` 1 crore (Previous Year
` NIL), Extramarks Education Private Limited ` 3 crore (Previous Year ` NIL).
Purchases / Material Consumed includes Reliance Ports and Terminals Limited ` 154 crore (Previous Year ` 138
crore), Reliance Industrial Infrastructure Limited ` 12 crore (Previous Year ` 11 crore), Gujarat Chemical Port
Terminal Company Limited ` 1 crore (Previous Year ` 2 crore).
9.
10. Electric Power, Fuel and Water charges paid to Reliance Utilities and Power Private Limited ` 1,325 crore (Previous
Year ` 369 crore), Reliance Utilities Private Limited ` NIL (Previous Year ` 771 crore).
11. Hire Charges paid to Reliance Industrial Infrastructure Limited ` 30 crore (Previous Year ` 21 crore), Gujarat
Chemical Port Terminal Company Limited ` 57 crore (Previous Year ` 66 crore), Reliance Gas Transportation
Infrastructure Limited ` 196 crore (Previous Year ` 235 crore), Reliance Ports and Terminals Limited ` 140 crore
(Previous Year ` 86 crore).
12. Employee Benefits Expense include Reliance Gas Transportation Infrastructure Limited ` NIL (Previous Year ` 5
crore).
13. Payment to Key Managerial 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 ` 5 crore), Shri P.K. Kapil ` 2 crore (Previous Year ` 2 crore).
14. Sales and Distribution Expenses include Reliance Ports and Terminals Limited ` 2,835 crore (Previous Year ` 2,370
crore), Gujarat Chemical Port Terminal Company Limited ` 10 crore (Previous Year ` 11 crore).
15. Rent paid to Reliance Industrial Infrastructure Limited ` 1 crore (Previous Year ` NIL).
16. Professional Fees include Reliance Europe Limited ` 37 crore (Previous Year ` 27 crore), Reliance Industrial
Infrastructure Limited ` 19 crore (Previous Year ` 9 crore).
17. General expenses include Reliance Commercial Dealers Limited ` 258 crore (Previous Year ` NIL), Reliance Ports
and Terminals Limited ` 17 crore (Previous Year ` NIL).
18. Donations to Dhirubhai Ambani Foundation ` 1 crore (Previous Year ` 86 crore), Jamnaben Hirachand Ambani
Foundation ` 8 crore (Previous Year ` 8 crore), HNH Trust and HNH Research Society ` 2 crore (Previous Year
` 3 crore), Hirachand Govardhandas Ambani Public Charitable Trust ` 1 crore (Previous Year ` 1 crore), Reliance
Foundation ` 206 crore (Previous Year ` 112 crore).
196
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
19. Finance Cost include Reliance Industrial Infrastructure Limited ` 4 crore (Previous Year ` 8 crore), Reliance Europe
Limited ` 1 crore (Previous Year ` 1 crore), Reliance Ports and Terminals Limited ` NIL (Previous Year ` 24 crore).
Investment written off (net) includes Deccan Cargo and Express Logistics Private Limited ` NIL (Previous Year
` 51 crore).
20.
21. Loans and Advances include Reliance Europe Limited ` 8 crore (Previous Year ` 12 crore), Reliance Commercial
Dealers Limited ` 76 crore (Previous Year ` 145 crore), Reliance Commercial Trading Private Limited ` 10 crore
(Previous Year ` 9 crore), Delta Corp East Africa Limited ` NIL (Previous Year ` 65 crore), Shree Salasar Bricks
Private Limited ` NIL (Previous Year ` 31 crore), Atri Exports Private Limited ` NIL (Previous Year ` 18 crore),
Jaipur Enclave Private Limited ` NIL (Previous Year ` 4 crore), Marugandha Land Developers Private Limited
` NIL (Previous Year ` 5 crore).
22. Deposits include Reliance Utilities and Power Private Limited ` 350 crore (Previous Year ` 200 crore), Reliance
Ports and Terminals Limited ` 1,050 crore (Previous Year ` 1,050 crore), Reliance Utilities Private Limited
` NIL (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 ` 53 crore
(Previous Year ` 36 crore), Einsten Commercials Private Limited ` 43 crore (Previous Year ` 43 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 ` 95 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 ` 22 crore
(Previous Year ` 23 crore), Gaurav Overseas Private Limited ` 17 crore (Previous Year ` 17 crore) and Gujarat
Chemical Port Terminal Company Limited ` 69 crore (Previous Year ` 42 crore), Shree Salasar Bricks Private
Limited ` 33 crore (Previous Year ` NIL), Atri Exports Private Limited ` 19 crore (Previous Year ` NIL), Jaipur
Enclave Private Limited ` 4 crore (Previous Year ` NIL), Marugandha Land Developers Private Limited ` 5 crore
(Previous Year ` NIL).
23. Unsecured loans include Reliance Europe Limited ` 55 crore (Previous Year ` 53 crore).
29. CONTINGENT LIABILITIES AND COMMITTMENTS
As at
31st March, 2013
(` in crore)
As at
31st March, 2012
(I) Contingent Liabilities
(A) Claims against the company / disputed liabilities
not acknowledged as debts
(a)
(b)
In respect of joint ventures
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
-
1,734
-
3,159
-
229
160
5,309
-
1,396
-
1,159
-
123
228
5,314
Reliance Industries Limited
197
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
(C) Other Money for which the company is contingently liable
(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:
In respect of Joint Ventures
(a)
In respect of others
(b)
(B) Uncalled Liability on Shares and Other Investments Partly paid
(C) Other commitments
Sales tax deferral liability assigned
-
3,961
448
15,547
243
2,345
-
631
344
18,092
294
3,560
(
III) The Income-Tax assessments of the Company have been completed up to Assessment Year 20 10-11. The
disputed demand outstanding up to the said Assessment Year is ` 1,192 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.
30. FINANCIAL AND DERIVATIVE INSTRUMENTS
a)
Derivative contracts entered into by the Company and outstanding as on 31st March, 2013
(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,
2013 amount to ` 1,29,553 crore (Previous Year ` 88,598 crore).
Category wise break up is given below :
Particulars
As at 31st March, 2013
(` in crore)
As at 31st March, 2012
Interest Rate Swaps
Currency Swaps
Options
Forward Contracts
33,181
4,444
2,307
89,621
34,068
4,199
25,138
25,193
Sr.
No.
1
2
3
4
(ii) For hedging commodity related risks :
Category wise break up is given below :
Particulars
Sr.
No.
1
2
3
4
Forward swaps
Futures
Spreads
Options
Petroleum
product
sales
(in Kbbl)
7,334
6,259
44,900
-
As at 31st March, 2013
Other
Crude Oil
products
purchases
(in Kbbl)
16,575
5,488
50,366
23,895
(in Kg)
1,101
-
-
-
Petroleum
product
sales
(in Kbbl)
16,722
4,809
25,193
2,720
As at 31st March, 2012
Other
Crude oil
products
purchases
(in Kbbl)
18,842
5,879
81,337
8,875
(in Kg)
1,214
-
-
-
In addition, the Company has net margin hedges outstanding for contracts relating to petroleum product
sales of 85,168 kbbl (Previous Year 81,869 kbbl).
Foreign currency exposures that are not hedged by derivative instruments as on 31st March 2013 amount
to ` 79,912 crore (Previous Year ` 89,892 crore).
b)
198
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
31.
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
Non-Current Assets
Current Investments
Current Assets
(ii) Liabilities
Long Term Borrowings
Non-Current Liabilities and Provisions
Short Term Borrowings
Current Liabilities and Provisions
(iii)
Income
(iv) Expenses
(` in crore)
As at
31st March, 2013
As at
31st March, 2012
144
-
47
9
197
-
19
10
77
333
406
126
25
29
39
139
-
14
20
73
277
338
32. 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 / associates
are not material and there are no material transactions from 1st January, 2013 to 31st March, 2013 in respect of
subsidiaries / associates having financial year ended 31st December, 2012.
33. 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.
a)
b)
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”.
Reliance Industries Limited
199
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
(i) Primary Segment Information :
Petrochemicals
Particulars
Refining
Oil and Gas
Others
Unallocable
(` in crore)
Total
2012-13
2011-12
2012-13
2011-12
2012-13
2011-12
2012-13
2011-12
2012-13
2011-12
2012-13
2011-12
1
Segment Revenue
External Turnover
94,137
86,338
2,90,427
2,58,697
11,100
13,896
Inter Segment Turnover
Gross Turnover
Less: Excise duty / Service Tax
recovered
Net Turnover
2
Segment Result before Interest
and Taxes
Less: Interest Expense
Add: Interest Income
Add: Exceptional Item
40
94,177
6,807
87,370
7,159
-
-
-
124
82,496
67,835
108
278
86,462
3,72,923
3,26,532
11,208
14,174
5,388
4,012
4,496
198
59
81,074
3,68,911
3,22,036
9,060
12,815
9,847
11,010
3,668
-
-
-
-
-
-
-
-
-
-
-
-
Profit Before Tax
7,159
9,060
12,815
9,847
3,668
Current Tax
Deferred Tax
-
-
-
-
-
-
-
-
-
-
14,115
5,555
-
-
(258)
5,297
-
-
-
-
-
-
-
(101)
3,463
5,816
-
2,252
5,327
4
-
-
-
-
-
4,08,392
3,68,571
-
-
4,08,392*
3,68,571*
11,330
10,070
3,97,062
3,58,501
111
23,864
24,443
2,893
4,167
(51)
1,334
5,226
465
3,463
5,816
-
26,217
5,327
4
2,893
4,167
(309)
25,408
5,226
465
12,728
1,850
14,578
313
14,265
323
-
-
-
9,640
523
10,163
127
10,036
(130)
-
-
-
323
(130)
-
-
-
-
323
7
330
Profit after Tax (before adjustment
for Minority Interest)
Add: Share of (Profit) / Loss
transferred to Minority
Profit after Tax (after adjustment
for Minority Interest)
Other Information
3
Segment Assets
Segment Liabilities
Capital Expenditure
Depreciation and Amortisation
Non Cash Expenses other than
depreciation and Amortisation
7,159
9,060
12,815
9,847
3,668
5,297
-
-
(14)
(37)
-
-
7,159
9,060
12,801
9,810
3,668
5,297
(130)
(3,079)
(4,357)
20,886
19,717
44
-
-
(7)
7
(86)
(3,079)
(4,357)
20,879
19,724
48,889
42,432
1,08,419
1,09,523
6,929
8,134
2,058
-
7,213
2,197
2,137
-
40,998
35,040
3,778
4,434
-
2,746
4,398
-
53,067
3,748
13,739
4,028
34
43,048
3,162
15,859
5,191
258
35,091
32,347
1,16,891
99,841
3,62,357
3,27,191
2,571
5,835
454
-
1,392
3,098
439
-
3,208
6,174
806
258
-
669
236
51
57,454
32,292
11,232
34
52,981
24,569
12,401
309
*Total Gross Turnover is after elimination of inter segment turnover of ` 84,494 crore (Previous Year ` 68,760 crore).
(ii) As per Accounting Standard on Segment Reporting (AS-17), 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
200
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
(iv) Secondary Segment Information:
1.
2.
3.
4.
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
2012-13
1,42,299
2,66,093
4,08,392
3,21,946
40,411
3,62,357
53,602
3,852
57,454
21,931
10,361
32,292
(` in crore)
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
34. 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 Retail Limited
Reliance Netherlands B.V. * (Liquidated on 27th March, 2013)
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
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 Payment Solutions Limited #
Country of
Incorporation
India
Proportion of
ownership interest
100.00%
India
India
U.A.E.
India
Netherlands
India
India
India
India
India
U.A.E.
India
India
India
India
India
Australia
Kenya
Rwanda
Tanzania
Uganda
Zanzibar
Mauritius
Kenya
Malaysia
India
100.00%
100.00%
100.00%
91.01%
100.00%
92.50%
91.01%
91.01%
91.01%
91.01%
100.00%
91.01%
91.01%
94.45%
91.01%
91.01%
100.00%
76.00%
76.00%
76.00%
76.00%
76.00%
76.00%
76.00%
100.00%
100.00%
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
Reliance Industries Limited
201
Name of the Subsidiaries
Country of
Incorporation
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
Kenya
India
India
India
India
India
India
Netherlands
India
U.K.
India
Singapore
India
India
India
India
India
India
India
Reliance Brands Limited
Reliance Footprint Limited
Reliance Trends Limited
Reliance Lifestyle Holdings Limited
Reliance Universal Ventures Limited
Delight Proteins Limited
Reliance Autozone Limited
Reliance F&B Services Limited
Reliance Gems and Jewels Limited
Reliance Integrated Agri Solutions Limited
Strategic Manpower Solutions Limited
Reliance Agri Products Distribution Limited
Reliance Digital Media Limited
Reliance Food Processing Solutions Limited
Reliance Home Store Limited
Reliance Leisures Limited
Reliance Loyalty & Analytics Limited
Reliance Retail Securities and Broking Company Limited
Reliance Supply Chain Solutions Limited
Reliance Trade Services Centre Limited
Reliance Vantage Retail Limited
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
Kanhatech Solutions 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 (Liquidated on 7th February, 2013) British Virgin Island
Reliance Review Cinema Limited
Reliance Replay Gaming Limited
Two sisters Foods India 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
India
India
India
U.S.A
India
India
India
India
Proportion of
ownership interest
94.45%
91.01%
91.01%
94.45%
94.45%
91.01%
91.01%
91.01%
91.01%
91.01%
100.00%
91.01%
91.01%
91.01%
91.01%
91.01%
91.01%
91.01%
91.01%
91.01%
100.00%
100.00%
91.01%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
72.00%
100.00%
91.01%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
91.01%
91.01%
45.51%
100.00%
100.00%
100.00%
100.00%
100.00%
202
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
Name of the Subsidiaries
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
Indiawin Sports Private Limited
Reliance Holding USA Inc.*
Reliance Marcellus LLC*
Reliance Jio Infocomm 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
Reliance Home Products Limited
Infotel Telecom Limited
Reliance Styles India Limited
Rancore Technologies Private Limited
Omni Symmetry LLC *
Reliance Sibur Elastomers Private Limited
Surela Investment and Trading Private Limited
Model Economic Township Limited
Delta Corp East Africa Limited
Delta Square Limited
Kaizen Capital LLP
Affinity Names Inc. *
Reliance USA Gas Marketing LLC *
Reliance Aerospace Techonologies Limited
Reliance Gas Pipelines Limited
Achman Commercial Private Limited
Reliance Jio Infocomm Pte. Limited
Reliance do Brasil Indústria e Comércio de Produtos Têxteis,
Químicos, Petroquímicos e Derivados Ltda.*
Country of
Incorporation
India
India
India
India
India
India
India
India
India
U.A.E
Netherlands
India
India
U.S.A
U.S.A
India
Mauritius
U.S.A
U.S.A
U.S.A
U.S.A
India
India
U.S.A
India
India
India
India
India
India
India
India
India
U.S.A.
India
India
India
Kenya
Kenya
U.K.
U.S.A.
U.S.A.
India
India
India
Singapore
Brazil
## Formerly known as Infotel Broadband Services Limited
# Formerly known as Reliance Retail Travel & Forex Services Limited
** Formerly known as Reliance One Enterprises Limited
* Subsidiary Company having 31st December as a reporting date.
Proportion of
ownership interest
100.00%
100.00%
100.00%
100.00%
100.00%
91.01%
91.01%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
95.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
91.01%
94.45%
100.00%
91.01%
95.00%
94.45%
95.00%
100.00%
74.90%
100.00%
92.50%
58.80%
58.80%
49.98%
100.00%
100.00%
100.00%
100.00%
91.01%
95.00%
99.98%
Reliance Industries Limited
203
Notes on Consolidated Financial Statements for the year ended 31st March, 2013
35. The significant Associates / Joint Ventures considered in the consolidated financial statements are:
Name of the Associates / Joint Ventures
Reliance Industrial Infrastructure Limited
Reliance Europe Limited #
Reliance LNG Limited
Gujarat Chemical Port Terminal Company Limited
Reliance Commercial Dealers Limited
Reliance-Vision Express Private Limited
Reliance-Grandvision India Supply 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 & Shark Fashions Private Limited
IMG Reliance Private Limited
EFS Midstream LLC #
D. E. Shaw India Securities Private Limited **
India Gas Solutions Private Limited
Extramarks Education Private Limited
Supreme Tradelinks Private Limited
Gaurav Overseas Private Limited
Reliance Commercial Trading Private Limited
Deccan Cargo & Express Logistics Private Limited
GenNext Ventures LLP
Algenol LLC #
Aurora Algea Inc. #
Iconix Lifestyle India Private Limited
In Vogue Brand Solutions Private Limited
Reliance Jio Cloudworks Private Limited
Reliance Jio Electronics Private Limited
Reliance Jio Media Private Limited
Reliance Jio Private Limited
** Formerly known as Basis Point securities Private Limited
# Associate Company having 31st December as a reporting date.
Country of
Incorporation
India
Proportion of
ownership interest
45.43%
U.K.
India
India
India
India
India
India
India
India
India
India
India
India
U.S.A
India
India
India
India
India
India
India
India
U.S.A.
U.S.A.
India
India
India
India
India
India
50.00%
45.00%
41.80%
50.00%
45.51%
45.51%
44.60%
50.00%
44.60%
45.51%
44.60%
45.51%
50.00%
50.00%
50.00%
50.00%
38.46%
44.60%
50.00%
50.00%
30.89%
50.00%
42.18%
34.61%
45.51%
44.60%
50.00%
50.00%
50.00%
50.00%
204
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Financial Information of Subsidiary Companies
Reporting
Currency
INR
INR
INR
INR
USD MN
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
AUD MN
INR
Sr.
No.
Name of Subsidiary Company
1 Reliance Industrial Investments and
Holdings Limited
2 Reliance Ventures Limited
3 Reliance Strategic Investments Limited
4 Reliance Industries (Middle East)
DMCC
5 Reliance Retail Limited *
6 Reliance Haryana SEZ Limited
7 Reliance Fresh Limited *
8 Retail Concepts & Services (India)
Limited *
9 Reliance Retail Insurance Broking
Limited
10 Reliance Dairy Foods Limited
11 Reliance Exploration & Production
DMCC
12 Reliance Retail Finance Limited
13 RESQ Limited *
14 Reliance Commercial Associates
Limited
15 Reliancedigital Retail Limited *
16 Reliance Financial Distribution and
Advisory Services Limited *
17 RIL (Australia) Pty Limited
18 Gapco Kenya Limited
19 Gapco Rwanda Limited
20 Gapco Tanzania Limited
Capital
Reserves
Total Assets
Total
Liabilities
Invest m ents
Turnover/
Total
Income
Profit
Before
Taxation
Provision
for Taxation
Profit After
Taxation
Proposed
Dividend
` in crore
Country
149.06
647.78
19,646.17
19,646.17
2,705.38
679.49
(11.97)
0.01
(11.98)
-
India
2.69
2.33
158.22
28.77
8,315.90
0.05
1.05
0.05
4.00
2,367.48
2,427.10
2,427.10
1,122.01
1,168.14
1,187.73
1,187.73
609.30
(99.54)
(18.10)
(98.51)
(49.53)
295.82
53.79
295.82
53.79
-
-
9,164.87
9,164.87
816.83
4,991.01
4,991.01
-
120.12
104.89
1,696.76
308.53
24.69
6.53
12.31
18.98
(34.26)
(6.23)
(60.18)
(14.48)
(1,349.87)
6,268.54
6,268.54
190.94
5,255.99
(119.67)
(0.04)
0.01
0.01
-
-
(0.01)
0.81
2.46
-
-
-
(0.14)
(64.89)
-
11.50
16.52
(34.26)
(6.23)
(60.18)
(14.34)
(54.78)
(0.01)
-
-
India
India
- U.A.E
-
-
-
-
-
India
India
India
India
2.83
10.21
10.21
4.75
20.50
3.00
0.56
2.44
-
India
USD MN
423.45
(336.72)
0.05
(62.34)
2,328.76
(1,851.79)
2.02
0.05
6,000.00
99.80
(9.17)
(2.23)
214.49
593.73
107.96
101.83
26.02
214.49
593.73
107.96
101.83
26.02
8,445.40
8,445.40
1.05
0.05
(104.66)
(28.92)
984.39
29.02
984.39
29.02
37.09
6.55
93.18
(37.09)
(6.55)
0.51
0.09
0.51
0.09
230.80
1,850.09
1,850.09
KSH MN
1,459.54
3,615.22
28,980.09
28,980.09
- 1,09,299.80
INR
FRW MN
INR
3.91
448.50
103.32
1.55
177.67
303.49
15.58
15.58
1,786.91
1,786.91
839.05
839.05
TZS MN
29,910.00
87,855.00
2,42,888.00
2,42,888.00
0.01
-
-
101.75
0.00
-
513.24
18.31
3.33
0.06
32.13
0.32
0.01
2,166.38
-
-
-
-
2.96
0.00
0.00
6,977.70
72.30
8,290.13
1,738.41
(36.57)
(34.92)
(6.35)
(0.02)
(3.24)
(2.21)
(2.67)
(0.20)
(17.50)
(3.09)
20.26
317.36
(1.06)
(121.32)
62.13
(13.33)
-
-
-
-
-
(3.31)
-
-
-
10.95
171.50
(0.27)
(31.03)
31.30
(23.24)
(34.92)
(6.35)
(0.02)
(3.24)
(2.21)
0.64
(0.20)
(17.50)
(3.09)
9.31
145.86
(0.79)
(90.29)
30.83
-
India
- U.A.E
-
-
-
India
India
-
India
-
-
India
India
- Australia
-
- Kenya
-
- Rwanda
- Tanzania
5,03,236.00
17,985.00
9,060.00
8,925.00
-
518.57
17.11
5.37
11.74
- Uganda
2,53,745.27
8,370.07
2,625.77
5,744.30
-
0.07
19.10
-
-
2.70
42.31
5,586.18
3,106.02
0.02
4.93
(6.93)
(1.26)
2.25
35.24
0.01
3.00
-
-
-
-
0.01
1.93
(6.93)
(1.26)
2.25
35.24
(208.09)
(115.70)
(86.22)
(47.94)
(121.87)
(67.76)
- Zanzibar
-
- Mauritius
-
- Kenya
-
- Malaysia
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
21 Gapco Uganda Limited
INR
17.88
89.35
143.18
143.18
USH MN
8,750.10
43,722.63
70,059.41
70,059.41
22 Gapoil (Zanzibar) Limited
INR
TZS MN
23 Gulf Africa Petroleum Corporation
INR
24 Transenergy Kenya Limited
25 Recron (Malaysia) Sdn Bhd
1.73
500.00
120.99
22.00
7.66
(1.19)
7.05
7.05
(343.51)
2,044.23
2,044.23
(50.60)
300.82
300.82
(9.20)
(5.83)
54.70
1.86
29.11
54.70
1.86
29.11
KSH MN
120.00
(91.29)
INR
RM MN
4.50
2.50
1,500.79
3,521.39
3,521.39
834.47
1,957.96
1,957.96
USD MN
INR
26 Reliance Payment Solutions Limited
27 Reliance Brands Limited
28 Reliance Footprint Limited *
29 Reliance Trends Limited *
30 Reliance Lifestyle Holdings Limited
31 Reliance Universal Ventures Limited
INR
INR
INR
INR
INR
INR
2.00
(1.33)
1.75
1.75
0.06
0.04
(0.01)
-
(0.01)
-
India
80.86
1.05
1.05
0.05
0.05
(48.38)
(16.24)
(28.45)
(10.99)
288.46
223.08
809.53
54.52
288.46
223.08
809.53
54.52
(8.56)
8,400.47
8,400.47
97.11
0.01
0.01
-
-
62.71
239.84
878.55
50.46
0.02
(36.37)
(12.92)
(23.45)
(1.00)
(2.64)
(5.82)
(0.19)
(0.71)
(1.56)
-
-
(0.29)
(1.08)
(5.82)
(0.19)
-
-
-
-
-
India
India
India
India
India
As on 31.12.2012: 1 EUR = ` 72.5125, 1 US $ = ` 54.9950, 1 RM = ` 17.9850, 1 KSH = ` 0.6384, 1 FRW = ` 0.0872, 1 TZS = ` 0.0345, 1 USH = ` 0.0204, 1 BRL = ` 26.7918;
Exchange Rate as on 31.3.2013, 1 EUR = ` 69.4950, 1 US $ = ` 54.2850, 1 Aus $ = ` 56.6250, 1 KSH = ` 0.6353, 1 SGD = ` 43.7200, 1 GBP = ` 82.2275.
* Financial Information is based on Unaudited Results.
Reliance Industries Limited
205
Financial Information of Subsidiary Companies
Sr.
No.
Name of Subsidiary Company
Reporting
Currency
Capital
Reserves
Total Assets
Total
Liabilities
Invest m ents
Turnover/
Total
Income
Profit
Before
Taxation
Provision
for Taxation
Profit After
Taxation
Proposed
Dividend
` in crore
Country
32 Delight Proteins Limited
33 Reliance Autozone Limited *
34 Reliance F&B Services Limited
35 Reliance Gems and Jewels Limited *
36 Reliance Integrated Agri Solutions
Limited *
37 Strategic Manpower Solutions Limited
38 Reliance Agri Products Distribution
Limited *
39 Reliance Digital Media Limited *
40 Reliance Food Processing Solutions
Limited
41 Reliance Home Store Limited *
42 Reliance Leisures Limited *
43 Reliance Loyalty & Analytics Limited *
44 Reliance Retail Securities and
Broking Company Limited *
45 Reliance Supply Chain Solutions
Limited *
46 Reliance Trade Services Centre Limited *
47 Reliance Vantage Retail Limited
48 Wave Land Developers Limited
49 Reliance-GrandOptical Private Limited
50 Reliance Universal Commercial
Limited
51 Reliance Petroinvestments Limited
52 Reliance Global Commercial Limited
53 Reliance People Serve Limited
54 Reliance Infrastructure Management
Services Limited
55 Reliance Global Business B. V.
56 Reliance Gas Corporation Limited
57 Reliance Global Energy Services
(Singapore) Pte. Ltd.
58 Kanhatech solutions Limited
59 Reliance Global Energy Services
Limited
60 Reliance Personal Electronics Limited *
61 Reliance Polymers (India) Limited
62 Reliance Polyolefins Limited
63 Reliance Aromatics and
Petrochemicals Limited
64 Reliance Energy and Project
Development Limited
65 Reliance Chemicals Limited
66 Reliance Universal Enterprises Limited
67 Reliance Review Cinema Limited
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
0.05
0.05
0.05
1.01
0.05
0.05
0.05
0.05
0.05
0.05
1.05
0.05
0.05
1.01
0.05
0.56
148.16
KSH MN
2,332.11
0.05
0.05
8.88
0.05
0.05
0.05
412.04
59.29
0.05
6.56
1.50
INR
INR
INR
INR
INR
INR
INR
EUR MN
INR
INR
SGD MN
INR
INR
GBP MN
INR
INR
INR
INR
INR
INR
INR
INR
(14.52)
(9.81)
(3.73)
(19.04)
(0.32)
(26.05)
(0.13)
(3.48)
(118.93)
(0.09)
(27.71)
(10.51)
(1.24)
2.71
(16.76)
(40.87)
35.10
552.42
(0.02)
0.01
26.02
30.62
3.97
645.88
0.01
5.38
0.02
2.01
53.78
0.16
134.13
0.61
0.06
7.34
0.36
85.74
203.05
26.02
30.62
3.97
645.88
0.01
5.38
0.02
2.01
53.78
0.16
134.13
0.61
0.06
7.34
0.36
85.74
203.05
3,196.20
3,196.20
0.04
4.49
0.04
4.49
175.16
185.43
185.43
0.01
(2.36)
(0.01)
17.34
2.50
(0.01)
0.96
0.22
4.49
0.65
0.37
429.61
61.82
8.89
8.88
2.03
4.49
0.65
0.37
429.61
61.82
8.89
8.88
2.03
0.01
0.01
0.00
0.01
-
-
-
-
0.01
-
0.01
-
-
-
-
-
-
-
-
4.48
184.47
4.48
-
-
-
-
2.76
-
-
-
-
-
-
62.71
37.41
12.49
758.72
0.00
270.75
0.00
0.04
0.27
-
104.50
-
0.07
(3.17)
(2.88)
(1.08)
(4.08)
0.00
(3.63)
(0.01)
(0.11)
(36.97)
(0.02)
(10.31)
(0.00)
(0.04)
95.72
(0.31)
0.02
-
37.21
585.78
-
0.00
0.02
0.00
3.03
2.06
0.33
0.05
-
10.14
2.32
0.11
20.72
2.52
0.01
0.02
16.00
0.02
(0.01)
(2.46)
37.09
583.85
(0.00)
(0.00)
(0.02)
(0.00)
(0.05)
0.01
0.18
0.03
(0.00)
0.92
0.21
(0.51)
1.56
0.19
(0.01)
(0.00)
10.56
(0.00)
10.00
(0.89)
10.60
10.60
4.11
0.50
0.05
4.41
13.26
4.11
1.56
0.19
(0.92)
2,180.50
2,581.65
2,503.44
9.37
1.14
0.28
9.37
1.14
0.28
2,184.97
2,631.78
2,781.38
2,184.97
2,631.78
2,781.38
0.01
2,605.82
2,781.36
1.01
951.80
1,256.31
1,256.31
1,255.99
0.02
(0.00)
7.58
13.26
0.05
2,598.64
2,606.23
2,606.23
2,604.91
3,403.43
3,416.70
3,416.70
3,416.56
(1.01)
0.19
0.19
0.01
0.02
0.02
1.52
(0.00)
0.01
(0.16)
(1.37)
(1.17)
-
(1.85)
-
-
-
-
25.85
-
(4.03)
-
-
-
-
-
0.85
13.44
-
-
-
-
-
0.00
-
-
-
0.05
0.01
-
0.41
0.05
-
-
3.50
-
-
-
0.01
-
(1.80)
(1.71)
(1.08)
(2.23)
0.00
(3.63)
(0.01)
(0.11)
(62.82)
(0.02)
(6.28)
(0.00)
(0.04)
(0.31)
(0.01)
(2.46)
36.24
570.41
(0.00)
(0.00)
(0.02)
(0.00)
(0.05)
0.01
0.18
0.03
(0.00)
0.87
0.20
(0.51)
1.15
0.14
(0.01)
(0.00)
7.06
(0.00)
(0.00)
(0.00)
0.00
(0.16)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
Kenya
India
India
India
India
India
India
- Netherlands
-
-
India
0.79 Singapore
0.18
India
- U K
-
-
-
-
-
-
-
-
-
India
India
India
India
India
India
India
India
As on 31.12.2012: 1 EUR = ` 72.5125, 1 US $ = ` 54.9950, 1 RM = ` 17.9850, 1 KSH = ` 0.6384, 1 FRW = ` 0.0872, 1 TZS = ` 0.0345, 1 USH = ` 0.0204, 1 BRL = ` 26.7918;
Exchange Rate as on 31.3.2013, 1 EUR = ` 69.4950, 1 US $ = ` 54.2850, 1 Aus $ = ` 56.6250, 1 KSH = ` 0.6353, 1 SGD = ` 43.7200, 1 GBP = ` 82.2275.
* Financial Information is based on Unaudited Results.
206
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Financial Information of Subsidiary Companies
Sr.
No.
Name of Subsidiary Company
Reporting
Currency
Capital
Reserves
Total Assets
Total
Liabilities
Invest m ents
Turnover/
Total
Income
Profit
Before
Taxation
Provision
for Taxation
Profit After
Taxation
Proposed
Dividend
` in crore
Country
68 Reliance Replay Gaming Limited *
69 Two Sisters Foods India Limited
70 Reliance Commercial Land &
Infrastructure Limited
71 Reliance Corporate IT Park Limited
72 Reliance Eminent Trading &
commercial Private Limited
73 Reliance Progressive Traders Private
Limited
74 Reliance Universal Traders Private
Limited
75 Reliance Prolific Traders Private
Limited
INR
INR
INR
INR
INR
INR
INR
INR
0.05
10.00
46.90
(1.13)
(10.03)
0.10
3.19
0.10
3.19
-
-
1,945.41
5,294.93
5,294.93
70.89
0.20
0.07
5.38
2,976.32
(119.00)
3,282.26
3,282.26
14.67
2,051.30
2,256.20
2,256.20
-
-
2,290.69
0.12
(0.48)
(4.08)
4.43
5.49
(5.47)
13.96
1,742.42
2,216.54
2,216.54
0.00
1.51
(10.66)
10.12
41.49
97.08
97.08
12.87
1,422.38
2,383.26
2,383.26
-
(1.74)
0.00
(2.31)
76 Reliance Prolific Commercial Private
INR
1.66
331.27
364.87
364.87
-
-
-
-
-
0.02
0.00
0.15
0.07
0.00
-
-
-
-
216.62
404.76
29,609.36
5,384.01
-
-
87.17
0.00
-
-
-
-
-
-
0.00
0.00
0.02
(0.06)
0.14
0.07
2.90
(71.66)
(13.03)
(0.22)
(0.04)
(0.00)
(0.00)
(0.00)
(0.04)
(0.01)
(5.40)
Limited
77 Reliance Comtrade Private Limited
78 Reliance Ambit Trade Private Limited
79 Reliance Petro Marketing Limited
80 LPG Infrastructure (India) Limited
81 RIL USA Inc.
82 Central Park Enterprises DMCC
INR
INR
INR
INR
INR
USD MN
INR
USD MN
83 Reliance Corporate Services Limited
84 Reliance Corporate Centre Limited
85 Reliance Convention and Exhibition
Centre Limited
86 Reliance International B.V.
INR
INR
INR
INR
87
Indiawin Sports Private Limited
88 Reliance Holding USA, Inc. *
EUR MN
INR
INR
USD MN
1.48
1.93
4.11
0.05
16.50
3.00
0.55
0.10
0.06
0.05
0.05
0.14
0.02
2.65
0.27
0.05
241.41
465.83
106.47
8.02
(4.73)
(0.86)
(0.66)
(0.12)
(0.01)
(0.00)
(0.00)
0.69
0.10
243.12
490.80
156.29
134.18
243.12
490.80
156.29
134.18
3,609.82
3,609.82
656.39
656.39
0.22
0.04
89.68
0.07
0.22
0.04
89.68
0.07
111.90
111.90
0.92
0.13
0.92
0.13
(96.01)
133.64
133.64
6.50
184.56
3,144.56
25,844.85
25,844.85
571.79
4,699.49
4,699.49
89 Reliance Marcellus LLC *
INR
1,014.93
(208.76)
8,466.81
8,466.81
USD MN
184.55
(37.96)
1,539.56
1,539.56
7,822.20
(16.88)
18,760.74
18,760.74
8.11
90 Reliance Jio Infocomm Limited
91 Reliance Strategic (Mauritius) Limited
INR
INR
USD MN
92 Reliance Eagleford Midstream LLC *
INR
USD MN
93 Reliance Eagleford Upstream LLC *
INR
94 Reliance Eagleford Upstream GP
LLC *
USD MN
INR
USD MN
0.33
0.06
257.38
46.80
1,255.92
228.37
0.16
0.03
(0.27)
(0.05)
0.11
0.02
0.11
0.02
-
-
110.65
1,371.96
1,371.96
1,371.80
20.12
249.47
249.47
249.44
11,903.78
11,903.78
1,255.70
2,164.52
2,164.52
228.33
0.11
0.02
0.11
0.02
(0.16)
(0.03)
(0.01)
(0.00)
95 Reliance Eagleford Upstream
INR
1,255.81
1,224.13
14,518.13
14,518.13
Holding LP *
96 Mark Project Services Private Limited
97 Reliance Energy Generation and
Distribution Limited
USD MN
228.35
222.59
2,639.90
2,639.90
INR
INR
0.05
0.05
(0.46)
0.00
0.00
371.80
3,636.37
3,636.37
690.68
125.59
-
-
0.11
0.02
-
-
-
-
1.70
0.31
(134.30)
(24.42)
230.65
(153.99)
41.94
0.05
-
-
-
-
-
-
-
-
2,611.66
474.89
-
0.02
(28.00)
(5.75)
( 0.11 )
( 0.02 )
138.92
25.26
(0.10)
(0.02)
(0.00)
(0.00)
754.59
137.21
(0.14)
(0.11)
-
-
-
0.99
-
-
-
-
0.01
-
0.07
0.02
2.45
(26.07)
(4.74)
-
-
-
-
-
(0.00)
(0.00)
-
162.62
29.57
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.48)
(4.08)
4.43
4.50
(5.47)
(10.66)
(1.74)
(2.31)
0.01
(0.06)
0.07
0.05
0.45
-
-
India
India
-
India
-
-
-
-
-
-
-
-
-
-
India
India
India
India
India
India
India
India
India
India
(45.59)
- U S A
(8.29)
(0.22)
(0.04)
(0.00)
(0.00)
(0.00)
(0.04)
(0.01)
(5.40)
(296.92)
(53.99)
(153.99)
(28.00)
(5.75)
(0.11 )
(0.02 )
138.92
25.26
(0.10)
(0.02)
(0.00)
(0.00)
754.59
137.21
(0.14)
(0.11)
-
- U.A.E
-
-
-
-
India
India
India
- Netherlands
-
-
India
- USA
-
- USA
-
-
India
- Mauritius
- USA
-
- USA
-
-
-
USA
- USA
-
-
India
-
India
As on 31.12.2012: 1 EUR = ` 72.5125, 1 US $ = ` 54.9950, 1 RM = ` 17.9850, 1 KSH = ` 0.6384, 1 FRW = ` 0.0872, 1 TZS = ` 0.0345, 1 USH = ` 0.0204, 1 BRL = ` 26.7918;
Exchange Rate as on 31.3.2013, 1 EUR = ` 69.4950, 1 US $ = ` 54.2850, 1 Aus $ = ` 56.6250, 1 KSH = ` 0.6353, 1 SGD = ` 43.7200, 1 GBP = ` 82.2275.
* Financial Information is based on Unaudited Results.
Financial Information of Subsidiary Companies
Reliance Industries Limited
207
Sr.
No.
Name of Subsidiary Company
98 Reliance Marcellus II LLC *
99 Reliance Security Solutions Limited
100 Reliance Industries Investment and
Holding Limited
101 Reliance Office Solutions Private
Limited *
Reporting
Currency
INR
USD MN
INR
INR
INR
553.30
100.61
0.05
3.26
5.12
Capital
Reserves
Total Assets
Total
Liabilities
Invest m ents
(59.06)
3,968.88
3,968.88
(10.74)
721.68
721.68
0.15
7.80
7.80
-
-
-
1,430.19
1,433.48
1,433.48
1,433.38
Turnover/
Total
Income
Profit
Before
Taxation
148.60
(52.85)
27.02
13.32
13.84
(9.61)
0.28
11.72
1.17
6.78
6.78
3.14
3.72
2.53
102 Reliance Style Fashion India Private
INR
1.01
(8.38)
13.76
13.76
Limited
103 GenNext Innovation Ventures Limited
104 Reliance Home Products Limited *
105 Reliance Styles India Limited
106
Infotel Telecom Limited
107 Rancore Technologies Private Limited
108 Omni Symmetry LLC *
109 Achman Commercial Private Limited
110 Reliance Sibur Elastomers Private
Limited
111 Model Economic Township Limited
112 Affinity Names Inc *
113 Reliance Aerospace Technologies
Limited
114
Reliance Gas Pipelines Limited
115 Surela Investment and Trading Private
Limited
116
Delta Corp East Africa Limited
INR
INR
INR
INR
INR
INR
USD MN
INR
INR
INR
INR
USD MN
INR
INR
INR
INR
0.05
0.05
0.05
6.05
0.05
3.57
0.65
0.05
118.01
0.05
1.21
0.22
0.05
0.05
0.05
(0.01)
(26.61)
(0.01)
(0.16)
(0.06)
-
-
(1.28)
1.94
(0.00)
-
-
(0.01)
(0.00)
(0.10)
0.05
9.13
0.04
5.93
0.05
9.13
0.04
5.93
68.77
68.77
3.57
0.65
6.77
3.57
0.65
6.77
0.05
1.21
0.22
0.05
0.20
22.04
0.05
1.21
0.22
0.05
0.20
22.04
120.07
120.07
96.89
183.50
37.17
243.85
243.85
KSH MN
2,888.38
585.10
3,838.32
3,838.32
117
Delta Square Limited
118
Kaizen Capital LLP
INR
KSH MN
INR
GBP MN
119
Reliance USA Gas Marketing LLC *
INR
USD MN
120
Reliance Jio Infocomm Pte. Ltd. #
INR
USD MN
INR
121 Reliance do Brasil Indústria e
Comércio de Produtos Têxteis,
Químicos, Petroquímicos e Derivados
Ltda.
0.01
0.10
-
-
0.01
0.00
0.11
0.02
3.97
5.69
89.53
-
-
(0.01)
(0.00)
-
-
(3.86)
7.27
7.27
114.51
114.51
6.74
0.82
0.00
0.00
0.11
0.02
0.19
6.74
0.82
0.00
0.00
0.11
0.02
0.19
BRL MN
1.48
(1.44)
0.07
0.07
10.44
(4.32)
-
25.21
-
0.07
2.19
-
-
0.24
3.54
(0.00)
(6.13)
(0.00)
0.01
0.04
(2.86)
(0.52)
(1.27)
2.77
0.00
(0.00)
-
-
-
-
0.15
148.03
2,330.11
16.13
-
-
(0.00)
(0.00)
(0.07)
39.03
614.29
9.56
253.88
150.46
37.91
4.61
-
-
-
-
5.26
0.64
(0.01)
(0.00)
-
-
-
-
-
-
0.49
-
-
-
-
-
-
-
-
0.00
2.49
-
-
-
-
-
-
-
-
-
-
-
-
Provision
for Taxation
Profit After
Taxation
Proposed
Dividend
` in crore
Country
-
-
0.14
0.03
-
-
-
5.42
-
0.09
0.03
-
-
-
0.83
-
-
-
-
-
0.00
10.20
160.47
3.12
49.12
-
-
-
-
-
-
(52.85)
- USA
(9.61)
0.14
11.69
-
-
-
India
India
2.53
-
India
(4.32)
-
India
(0.00)
(11.55)
(0.00)
(0.08)
0.01
(2.86)
(0.52)
(1.27)
1.94
(0.00)
-
-
(0.00)
(0.00)
(0.07)
28.83
453.82
6.44
101.34
5.26
0.64
(0.01)
(0.00)
-
-
-
-
-
-
-
India
India
India
India
India
- USA
-
-
-
India
India
India
- USA
-
-
India
-
-
India
India
- Kenya
-
- Kenya
-
- U.K.
-
- U.S.A.
-
- Singapore
-
0.56
(0.03)
0.00
(0.03)
- Brazil
0.21
(0.01)
0.00
(0.01)
-
# The first accounting year of the company will be ending on 31st December 2013 / 31st March 2014
As on 31.12.2012: 1 EUR = ` 72.5125, 1 US $ = ` 54.9950, 1 RM = ` 17.9850, 1 KSH = ` 0.6384, 1 FRW = ` 0.0872, 1 TZS = ` 0.0345, 1 USH = ` 0.0204, 1 BRL = ` 26.7918;
Exchange Rate as on 31.3.2013, 1 EUR = ` 69.4950, 1 US $ = ` 54.2850, 1 Aus $ = ` 56.6250, 1 KSH = ` 0.6353, 1 SGD = ` 43.7200, 1 GBP = ` 82.2275.
* Financial Information is based on Unaudited Results.
208
Fulfilling India’s Aspirations. With Innovation and Enterprise.
Shareholders’ Referencer
AT A GLANCE
Presently, the Company has around 3.2 million
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.
97.58% of the Company’s Equity Shares are held in
demat form.
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.
I N V E S T O R S E RV I C E A N D G R I E VA N C E
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.
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.
Register NECS Mandate and furnish correct bank
account particulars with Company/Depository
Participant (DP)
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.
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
Reliance Industries Limited
209
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.
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
Opt for Corporate Benefits in Electronic Form
Dealing in Securities
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.
Register for SMS alert facility
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.
Register e-mail address
To support the ‘Green Initiative’ in the Corporate
Governance taken by the Ministry of Corporate Affairs,
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.
What is the Process of trading in Securities?
The normal course of trading in the Indian market context
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is briefed below:
Step 1.
Step 2.
Step 3.
Investor / trader decides to trade.
Places order with a broker to buy / sell the
required quantity of respective securities.
Best priced order matches based on price-time
priority.
Step 4. Order execution is electronically communicated
Step 5.
to the broker’s terminal.
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.
Pay-in of funds and securities before T+2 day.
Pay-out of funds and securities on T+2 day.
Step 7.
Step 8.
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.
What is Delivery Instruction Slip (DIS) and what
precautions one needs to observe with respect to DIS?
To give delivery of the securities, 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:
Ensure and insist with DP to issue DIS book.
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.
Avoid using loose slips.
Do not leave signed blank DIS with anyone viz.,
broker/sub-broker, DPs or any other person/entity.
Keep the DIS book under lock and key when not in
use.
If only one entry is made in the DIS book, strike out
remaining space to prevent misuse.
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:
Default password provided by the broker is changed
before placing of order.
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.
Adequate training on usage of software.
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?
Avoid placing order from shared PCs / through cyber
cafés.
Log out after having finished trading to avoid misuse.
Ensure that one does not click on “remember me”
option while signing in from non-regular location.
Do not leave the terminal unattended while one is
“signed-in” to the trading system.
Protect your personal computer against viruses by
placing a firewall and an anti-virus solution.
Do not open email attachments from people you do
not know.
DIVIDEND
Payment of Dividend
Dividend is paid under three modes viz:
(a) National Electronic Clearing Services (NECS)
(b) National Electronic Fund Transfer (NEFT)
(c) Physical dispatch of Dividend Warrant
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.
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211
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 91 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 :
a.
b.
c.
d.
Investor need not make frequent visits to his bank
for depositing the physical paper instruments.
Prompt credit to the bank account of the investor
through electronic clearing.
Fraudulent encashment of warrants is avoided.
Exposure to delays / loss in postal service avoided.
e. As there can be no loss in transit of warrants, issue
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 60,225 branches of 122
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 investors opt out of NECS Facility?
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.
Course of Action in case of Non-receipt of Dividend,
Revalidation of Dividend Warrant, etc.
What should a shareholder do in case of non-receipt
of dividend?
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Fulfilling India’s Aspirations. With Innovation and Enterprise.
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:
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
with one of the depository participants, for this
purpose.
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) and Clause 5A (II) 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 suspense accounts at the
beginning 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 suspense accounts during the
year and the aggregate number of shareholders along with
number of unclaimed shares lying in the suspense accounts
at the end of the year, 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.
Where can the status of unclaimed dividend be verified?
The Company has uploaded the details of unpaid and
unclaimed amounts lying with the Company as on June 07,
2012 (date of last Annual General Meeting) on the website
of the Company (www.ril.com), as also on the Ministry of
Corporate Affairs website which can be accessed by the
shareholders.
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
213
Chart 1: Status of unclaimed and unpaid dividend for different years:
Dividend upto 1994-95
Transfer of unpaid
dividend
Claims for unpaid
dividend
Transferred to General
Revenue account of the
Central Government
Can be claimed from ROC,
Maharashtra*
Dividend for
1995-96 to 2004-05
Transferred to Central
Government’s Investor Education
and Protection Fund (IEPF)
Cannot be claimed
Dividend for
2005-06 and thereafter
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 2005-06 and thereafter
Financial year ended
RIL
Date of declaration of
dividend
27.06.2006
10.03.2007
12.06.2008
07.10.2009
18.06.2010
03.06.2011
07.06.2012
31.03.2006
31.03.2007 (Interim)
31.03.2008
31.03.2009
31.03.2010
31.03.2011
31.03.2012
DEMATERIALISATION / REMATERIALISATION
OF SHARES
Last date for claiming
unpaid dividend
26.06.2013
08.03.2014
11.06.2015
06.10.2016
17.06.2017
02.06.2018
06.06.2019
What is Dematerialisation of shares?
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.
Erstwhile IPCL (Merged with RIL)
Date of declaration of
dividend
25.05.2006
10.03.2007
Last date for claiming
unpaid dividend
24.05.2013
08.03.2014
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
Ease in pledging the shares
Benefits of Demat
Elimination of bad deliveries
Elimination of all risks associated with physical
certificates
No stamp duty on transfers
Immediate transfer / trading of securities
How to dematerialise shares?
The procedure for dematerialising shares is as under :
Open Beneficiary Account with a DP registered with
SEBI.
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
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Fulfilling India’s Aspirations. With Innovation and Enterprise.
concerned certificate(s) and the Company records,
along with the share certificate(s).
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.
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 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).
What is the procedure for rematerialisation of shares?
Shareholders should submit duly filled in
Rematerialisation Request Form (RRF) to the
concerned DP.
DP intimates the relevant Depository of such
requests.
DP submits RRF to the Company’s R&TA.
Depository confirms rematerialisation request to the
Company’s R&TA.
The Company’s R&TA updates accounts and prints
certificate(s) and informs the Depository.
Depository updates the Beneficiary Account of the
shareholder by deleting the shares so rematerialised.
Share certificate(s) is despatched to the shareholder.
NOMINATION FACILITY
What is nomination facility and to whom is it 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). Minor(s) 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
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.
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215
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 or to the DP as may be
applicable by reporting death of the nominator along with
the attested copy of the death certificate.
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 15 days 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 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
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Fulfilling India’s Aspirations. With Innovation and Enterprise.
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 electronic holdings
these documents have to be submitted to the concerned DP.
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). In case of
electronic holdings these documents have to be submitted
to the concerned DP.
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 of address such as attested copies of
Ration Card / PAN Card / Passport / Latest Electricity or
Telephone Bill / Lease Agreement, Aadhaar Card, 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,
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
Particulars
Sl.
No.
Folio Consolidation
Change of Name
Transfers
1
Transmission
2
3
Transposition
4 Deletion of Name
5
6
7 Demat
Remat
8
9
Issue of Duplicate Certificate
10 Replacement of Certificate
11 Certificate Consolidation
12 Certificate Split
(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
1 Allotment / call money
2 Others
Service Standards
(No. of working
days)
4
4
4
3
3
3
3
3
35
3
3
3
Service Standards
(No. of working
days)
2
4
4
2
4
2
Reliance Industries Limited
217
Particulars
Sl.
No.
Requests
Service Standards
(No. of working
days)
1
2
3
Change of Address
Revalidation of Dividend
Warrants
Revalidation of Redemption
Warrants
Bank Mandate / Details
4
5 Nomination
6
7 Multiple Queries
IEPF Letters
8
Power of Attorney
2
3
3
2
2
2
4
3
Reminder Letters to Investors
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.
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 :
This Scheme is available to Indian national residents
218
Fulfilling India’s Aspirations. With Innovation and Enterprise.
in respect of any master folio having holdings up to
49 shares;
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);
The odd lot shares offered under the Scheme are sold
through designated brokers in the BSE / NSE;
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:
No tax is payable by shareholders on dividend.
However, the Company is required to pay dividend
tax @ 15% and surcharge @10% (proposed in the
Budget 2013-14) together with education cess @ 2%
and higher education cess @ 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%; (Surcharge @ 10% proposed
in the Budget 2013-14 for income exceeding ` 1
crore in the case of individuals also.)
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)
b)
20% of the capital gain computed after
substituting ‘cost of acquisition’ with ‘indexed
cost of acquisition’ together with education
cess @ 2% and higher education cess @ 1%
in the case of ‘individuals’. (Surcharge @ 10%
proposed in the Budget 2013-14 for income
exceeding ` 1 crore in the case of individuals
also.)
10% of the capital gain computed before
substituting ‘cost of acquisition’ with ‘indexed
cost of acquisition’ together with education
cess @ 2% and higher education cess @ 1%
in the case of ‘individuals’. (Surcharge @ 10%
proposed in the Budget 2013-14 for income
exceeding ` 1 crore in the case of individuals
also.)
STT is payable as under
NIL in the case of purchaser & @ 0.001% in the
case of seller in respect of delivery based transaction
(proposed in the Budget 2013-14, w.e.f. 1st June,
2013)
@ 0.017% by the seller in respect of Sale of an option
in securities and @ 0.01% in the case of seller in
respect of sale of futures in securities (proposed in
the Budget 2013-14, w.e.f. 1st June, 2013)
@ 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.
All companies against whom complaints are pending on
SCORES, will have to take necessary steps within 7 days
of receipt of complaint through SCORES and resolve the
complaint within 30 days of receipt of complaint and also
keep the complainant duly informed of the action taken.
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”.
Reliance Industries Limited
219
this sub-regulation; and such change exceeds 2% of total
shareholding or voting rights in the company.
E-voting
To widen the participation of shareholders in company
decisions, the Securities and Exchange Board of India
(SEBI) has directed top 500 listed companies to provide
e-voting facility to their shareholders from October,
2012 onwards, in respect of those businesses which are
transacted through postal ballot.
SHAREHOLDERS’ GENERAL RIGHTS
To receive not less than 21 days notice of general
meetings unless consented for a shorter notice.
To receive notice and forms for Postal Ballots in
terms of the provisions of the Companies Act, 1956
and the concerned Rules issued thereunder.
To receive copies of Balance Sheet and Statement of
Profit and Loss 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.
To participate and vote at general meetings either
personally or through proxy (proxy can vote only in
case of a poll).
To receive dividends and other corporate benefits
like bonus, rights etc. once approved.
To demand poll on any resolution at a general meeting
in accordance with the provisions of the Companies
Act, 1956.
To inspect statutory registers and documents as
permitted under law.
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
To remain abreast of corporate developments,
company specific information and take informed
investment decision(s).
To be aware of relevant statutory provisions and
ensure effective compliance therewith.
To deal with only SEBI registered intermediaries
while dealing in the securities.
Not to indulge in fraudulent and unfair trading in
securities nor to act upon any unpublished price
sensitive information.
To participate effectively in the proceedings of
shareholders’ meetings.
To contribute to the Greener Environment and
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
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
220
Fulfilling India’s Aspirations. With Innovation and Enterprise.
accordingly register email addresses to enable the
Company to send all documents / notices including
Annual Reports electronically.
To register nominations, which would help the
nominees to get the shares transmitted in their favour
without any hassles.
To respond to communications seeking shareholders’
approval through Postal Ballot.
To respond to communications of SEBI / Depository
/ DP / Brokers / Sub-brokers / Other Intermediaries
/ Company, seeking investor feedback / comments.
DEALING IN SECURITIES MARkET
DO’S
Transact only through Stock Exchanges.
Deal only through SEBI registered intermediaries.
Complete all the required formalities of opening
an account properly (Client registration, Client
agreement forms etc).
Ask for and sign “Know Your Client Agreement”.
Read and properly understand the risks associated
with investing in securities / derivatives before
undertaking transactions.
Assess the risk - return profile of the investment as
well as the liquidity and safety aspects before making
your investment decision.
Ask all relevant questions and clear your doubts with
your broker before transacting.
Invest based on sound reasoning after taking into
account all publicly available information and on
fundamentals.
Beware of the false promises and to note that there
are no guaranteed returns on investments in the Stock
Market.
Give clear and unambiguous instructions to your
broker / sub-broker / DP.
Be vigilant in your transactions.
Insist on a contract note for your transaction.
Verify all details in the contract note, immediately
on receipt.
Always settle dues through the normal banking
channels with the market intermediaries.
Crosscheck details of your trade with details as
available on the exchange website.
Scrutinize minutely both the transaction and the
holding statements that you receive from your DP.
Keep copies of all your investment documentation.
Handle DIS Book issued by DP’s carefully.
Insist that the DIS numbers are pre-printed and your
account number (client id) be pre-stamped.
In case you are not transacting frequently make use
of the freezing facilities provided for your demat
account.
Pay the margins required to be paid in the time
prescribed.
Deliver the shares in case of sale or pay the money
in case of purchase within the time prescribed.
Participate and vote in general meetings either
personally or through proxy.
Be aware of your rights and responsibilities.
In case of complaints, approach the right authorities
for redressal in a timely manner.
DON’TS
Don’t undertake off-market transactions in securities.
Don’t deal with unregistered intermediaries.
Don’t fall prey to promises of unrealistic returns.
Don’t invest on the basis of hearsay and rumours;
verify before investment.
Don’t forget to take note of risks involved in the
investment.
Don’t be misled by rumours circulating in the market.
Don’t blindly follow media reports on corporate
developments, as some of these could be misleading.
Don’t follow the herd or play on momentum - it could
turn against you.
Don’t be misled by so called hot tips.
Don’t try to time the market.
Don’t hesitate to approach the proper authorities for
redressal of your doubts / grievances.
Don’t leave signed blank DISs of your demat account
lying around carelessly or with anyone.
Do not sign blank DIS and keep them with DP or
broker to save time. Remember your carelessness
can be your peril.
Do not keep any signed blank transfer deeds.
NOTE
The contents of this Referencer are for the purpose of
general information. Readers are advised to refer to
the relevant Acts / Rules / Regulations / Guidelines /
Clarifications.
Reliance Industries Limited
221
Members
Feedback Form
2012-2013
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
Quality of Financial and
non- financial information
in the Annual Report
Information on Company’s
Website
Contents
Presentation
Contents
Presentation
Contents
Presentation
Contents
Presentation
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.
222
Fulfilling India’s Aspirations. With Innovation and Enterprise.
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
DP Id*
Client Id*
Reliance Industries Limited
223
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 39tH AnnuAl GeneRAl MeetInG of the Company held on
Thursday, June 6, 2013 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 / h er………………………………...……….......................................... of …………………....................…………….....................................
as my/our proxy to vote for me/us and on my/our behalf at the 39th Annual General Meeting of the Company to be held on Thursday,
June 6, 2013 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 Mahesh P. Modi
b) Dr. Dharam Vir Kapur
c) Dr. Raghunath A. Mashelkar
d) Shri Pawan Kumar Kapil
4. Appointment of Auditors
5. Commission to Non-Executive Directors
For
Against
Signed this…………………. day of …………………………. 2013
* Applicable for investors holding shares in electronic form.
Please see the instructions overleaf
Signature
Affix a
15 paise
Revenue
Stamp
224
Fulfilling India’s Aspirations. With Innovation and Enterprise.
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.
Awards and Recognitions
RIL continues to receive recognition for industry leadership and excellence in its fields of operations. Some of the
major awards and recognitions conferred during the year include:
Health, Safety and
Environment
Technology, Patents, R&D
and Innovation
l Hazira Manufacturing
Division was awarded
the Best Prax Prize for
Innovation by QIMPRO
Corporate Social Responsibility
l Hazira Manufacturing
Division, Reliance
Community Care Centre,
received a Trophy for work
done under the National
AIDS Control Program
Phase III from Population
Foundation of India
l Nagothane Manufacturing
Division received the
National Award for
Innovative Training
Practices for security
training practices by Indian
Society for Training
& Development
l Dahej Manufacturing
Division received the
Greentech Gold Award for
HR Excellence
Sustainability
l Hazira Manufacturing
Division received the CII-ITC
Sustainability Awards 2012
and the coveted Certificate
of Commendation for
Significant Achievement
in the area of Sustainable
Development
Leadership
l Conferred the International
Refiner of the Year 2013
Award at HART Energy’s
27th World Refining &
Fuel Conference
l Hazira Manufacturing
Division won the “Mark
of Excellence Award” at
the IST Convention on
Leadership Excellence
organised by IGCL
Corporate Rankings
and Ratings
l Received the appreciation
plaque from ASSOCHAM
for its CSR activities
Quality
l Dahej & Hazira
Manufacturing Divisions
won the Three Star (highest
award) at ICQCC
l Received the IMC
Ramkrishna Bajaj National
Quality Award under the
manufacturing category
l Hazira Manufacturing
Division received the
ASQ’s International Team
Excellence Award from
American Society for Quality
Project
l Dahej Manufacturing
Division received the best
viewer’s choice award for
implementing a Six Sigma
Project from the American
Society for Quality
Division received the
Platinum Award for its Six
Sigma Project from Concept
Business Excellence
l
Jamnagar Manufacturing
Division won the QualTech
Prize for Improvement
(Manufacturing Process
Excellence) from QIMPRO
l Hazira Manufacturing
l
l Received the Management
of Health, Safety &
Environment Award from
Indian Chemical Council
l Dahej Manufacturing
Division was awarded
the Golden Peacock
Environment Management
Award
l Hazira Manufacturing
Division won the Golden
Peacock Occupational
Health & Safety Award
l Vadodara Manufacturing
Division received the CII-
Environment Best Practices
Award
l KG-D6 operations received
the International Safety
Award with distinction from
the British Safety Council
l
Jamnagar Manufacturing
Division received the Safety
Innovation Award from
Institution of Engineers,
New Delhi for the 3rd
consecutive year in a row
Energy & Water
Conservation / Efficiency
l
Jamnagar Manufacturing
Division (DTA) refinery
received the Jawaharlal
Nehru Centenary Award
from the Ministry of
Petroleum & Natural Gas
for being among the three
refineries, which have
achieved the lowest specific
energy consumption among
Indian refineries
Jamnagar Manufacturing
Division received an
Innovative Project award
from the Bureau of Energy
Efficiency, Ministry of
Power, Govt. of India
l Reliance Corporate IT Park,
Navi Mumbai was adjudged
by CII as a National Energy
Efficient Unit in India
FULFILLING INDIA’S ASPIRATIONS.
WITH INNOVATION AND ENTERPRISE.
India is on an undeniable growth trajectory, matched by few in the world, for scale and vigour. Fuelled by boundless
aspirations and the infectious energy of a young populace, the country is fast progressing towards a definitive role
in the global economic order.
Not only is it leading to an increasing share of global commerce for India as a nation, but also catalysing
consumption, resulting in the creation of a groundswell of opportunity.
Addressing the aspirations of the Indian populace, our businesses are intrinsically linked to India’s growth
trajectory. Given India’s unique demographic advantage, our businesses remain relevant to the youth of today
who will become the leaders of tomorrow.
Innovation and enterprise form the essence of this surge of opportunities and find reflection in every facet of
our operations.
We are making large investments in all our key business categories, i.e. Oil & Gas, Refining, Petrochemicals, Retail
and 4G, to reinforce the spirit of enterprise.
Across our businesses, we have demonstrated abilities to build world-scale capacities and infrastructure. We have
enhanced our business footprint from the conventional energy chain to consumer businesses and delivered value.
Our businesses are deeply aligned with the ethos of innovation. We have constantly endeavoured to operate at
the forefront of new technologies. We have invested in continuously developing new products and seeking new
applications, which are suitable for Indian markets and conditions. We have, for instance, integrated a technology
platform with our Retail business.
Over the years, we have tapped into the enormous opportunities presented by the Indian economy. The evolving
economic landscape and the aspirations of the people have driven us to aim higher, execute our plans seamlessly
and sustain the growth momentum. This has helped us touch the lives of our fellow citizens and lay the foundation
for the long-term development of our nation.
We understand these aspirations and the opportunities that lie within. This drives us towards continuous efforts
in enterprise and innovation which act as catalysts in realising these aspirations.
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ANNUAL REPORT 2012-13
FULFILLING INDIA’S
ASPIRATIONS.
WITH INNOVATION AND
ENTERPRISE.