Reliance Industries Limited Annual Report 2014

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FY2014 Annual Report · Reliance Industries Limited

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ANNUAL REPORT 2013-14

GROWTH
IS

Growth is Energy l Growth is Value
Growth is Happiness l Growth is Life...

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Growth is Energy
Growth is Value
Growth is Happiness

Growth is Life...

Late Shri Dhirubhai Ambani
Founder Chairman

Strategy at Reliance is about
making prudent choices,
balancing risks and return, building
competitive advantages and
envisioning the future through the
power of innovation.

Innovation has always been a
cornerstone of our operations. It
has enabled us to make significant
technology-driven breakthroughs
that add value to existing
businesses, and create new ones.
We are partnering with leading
global institutions renowned
for excellence to strengthen our
experience and expertise.

We are helping the country meet
its growing energy demand in
a safe and responsible manner,
creating value for society through
our retail and telecom businesses,
widening our community
investments for social well-being
and elevating the quality of life.

Playing a role in creating a
happy and prosperous India is
our mandate. Because growth is
energy. Because growth is value.
Because growth is happiness.

Because Growth is Life...

Growth, in all its facets, has

been a distinguishing factor
at Reliance, ever since our

inception. Our philosophy envisions
growth as a universal concept, that
represents multiple possibilities and
touches all aspects of life.

This explains why we have put
in motion some of the most
ambitious plans, aligned to the
needs of India as it develops into
a world-force. The continuing
expansion of our key business
verticals places us at a vantage
point with reference to the
aspirations of India.

We have taken strategic decisions
in key areas that will drive our
growth and also create better
outcomes for our youthful nation.

From the manufacturing landscape
to high-growth consumer service
sectors, Reliance is making progress
possible each day.

Reliance
Foundation
Reliance Foundation (RF)
focuses on five core pillars of
rural transformation, education,
health, urban renewal and
arts, culture & heritage. RF has
a comprehensive approach
towards development with
an overall aim to create and
support meaningful and
innovative activities that
address some of India’s most
pressing developmental
challenges.

l RF BIJ (Bharat India Jodo)

programme supports small and
marginal farmers. So far, the
programme has catalysed the
formation of farmers’ institutions
in more than 400 villages and
has engaged with over 2,00,000
villagers. The programme has
improved the nutritional intake
of over 16,000 rural households
through Reliance Nutrition
Gardens.

l The Foundation’s Information
Services programme links
knowledge seekers with
knowledge providers to provide
need-based, locale-specific
information in local languages.
The programme has reached
out to over 5,000 villages.

l More than 12,800 cornea
transplants have been
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 visually impaired benefit
from this fortnightly circulation.

l Sir HN Reliance Foundation

Hospital and Research Centre is
being revamped into a 19-storey,
800,000 square feet world-class
tertiary health care facility.

l ‘Health for All’ 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 3,50,000 individuals have
enrolled under the family health
card scheme and nearly 52,600
patients (of which 72% are
women and children).

l Dhirubhai Ambani Scholarship
programme has positively
influenced the lives of more than
10,000 young scholars and their
families so far. The scholarship

programme supports the top
scoring Higher Secondary
students from financially weak
backgrounds and physically
challenged students from across
all states and union territories
of India to pursue education at
college level.

l RF was one of the first

organisations to respond to
the disaster in Uttarakhand
and to reach out to those who
were cut off post the disaster.
Through a team of doctors and
development professionals, RF
reached out to more than 100
villages. RF has also taken up
reconstruction of some of the
affected schools and building
shelters in Uttarakhand.

l RF partnered with the National
Basketball Association (NBA)
to establish a comprehensive,
school-based youth basketball
programme in India. The
programme seeks to reach one
million youth in three years.

Inside
this Report

Letter to
Shareholders

View the Annual Report online at www.ril.com/ar13-14

Growth is Energy

Growth is Value

"RIL has always prided itself in
investing and contributing to
India’s economic growth."

At RIL, world-class assets set
global benchmarks and help
meet India's growing energy
needs.

RIL has consistently created
stakeholders value through a
focus on operating sustainably
and profitably.

Growth is Happiness

Review of Operations

Management's Discussion
and Analysis

At RIL, sustainable business
transformation is achieved by
enhancing profits, empowering
people and protecting the planet.

During FY 2013-14, RIL's businesses
have delivered industry leading
performances that have set the
foundation for future growth.

Read a comprehensive
review of RIL's operations
across businesses.

Company
Overview

Statutory
Reports

02 Reliance at a Glance
03 Key Performance Indicators
04 Letter to Shareholders
08 The Board of Directors
10 Growth is Energy
12 Growth is Value
14 Growth is Happiness
16 Review of Operations
24 Awards and Recognitions
25 Company Information
26 Major Products and Brands
32 Product Flow Chart
33 Financial Highlights

34 Notice of Annual General Meeting
46 Management’s Discussion and

Analysis

88 Business Responsibility Report
100 Report on Corporate Social

Responsibility

110 Corporate Governance Report
138 Auditors’ Certificate on Corporate

Governance

146 Secretarial Audit Report
148 Directors’ Report

Financial
Statements

165

Independent Auditors’ Report on

Financial Statements

168 Balance Sheet
169 Statement of Profit and Loss
170 Cash Flow Statement
172 Significant Accounting Policies
176 Notes on Financial Statements

219

Independent Auditors’ Report on Consolidated

Financial Statements

220 Consolidated Balance Sheet
221 Consolidated Statement of Profit and Loss
222 Consolidated Cash Flow Statement
224 Significant Accounting Policies on

Consolidated Accounts

225 Notes on Consolidated Financial Statements
267 Financial Information of Subsidiary Companies

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Shareholders
Information

271 Shareholders’ Referencer
Members Feedback Form
Attendance Slip and Proxy Form

Reliance Industries Limited
Annual Report 2013-14

Reliance
at a Glance
Reliance Industries Limited
(RIL) is India’s largest private
sector company with
businesses across the energy
and materials value chain
and a strong presence in the
rapidly expanding retail and
telecommunication sectors.

RIL is the first private sector
company from India to feature in
Fortune Global 500 list of ‘World’s
Largest Corporations’ for the last
ten consecutive years. RIL ranked
107th in terms of revenues and
128th in terms of profits in 2013.
RIL's international debt is rated by
Moody’s at investment grade Baa2,
with ‘positive’ outlook and by S&P
at BBB+ with a ‘negative’ outlook,
which are one notch and two
notches above India’s sovereign
rating, respectively.

$ 67.0 billion

(` 4,01,302 crore)
Annual revenue

$ 3.7 billion

(` 21,984 crore)
Net profit

80+

Major products and brands across
energy and service sectors

Largest

Refining complex globally –
1.4 MMBPD of crude processing
at a single location

Growth is Life...

 Night view of Jamnagar Refinery

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5th

Largest producer of Paraxylene (PX)
and Polypropylene (PP), globally

9th

Largest producer of Purified
Terephthalic Acid (PTA), globally

Setting up pan India telecom
network to provide high speed
internet and digital services

8th

Largest producer of Mono
Ethylene Glycol (MEG), globally

1,691

Retail stores across India

Conventional E&P blocks –
9 domestic, 3 international; 2 CBM
blocks in India, 3 JVs in US Shale

Producer of polyester fibre and
yarn, globally

Retailer in India by revenue
(Reliance Retail)

Reliance Industries Limited

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Growth is Life...

 Night view of Jamnagar Refinery

Key Performance
Indicators

Turnover (` crore)

8.1% (year-on-year)

13-14

4,01,302

12-13

3,71,119

11-12

3,39,792

10-11

2,58,651

09-10

2,00,400

Networth (` crore)

9.5% (year-on-year)

13-14

1,97,074

12-13

1,79,995

11-12

1,66,096

10-11

1,51,540

09-10

1,37,171

Profit After Tax (` crore)
4.7% (year-on-year)

13-14

21,984

12-13

21,003

11-12

20,040

10-11

20,286

09-10

16,236

Market Capitalisation (` crore)
20.3% (year-on-year)

13-14

3,00,405

12-13

2,49,802

11-12

2,44,757

10-11

3,42,984

09-10

3,51,320

Earnings per Share* (`)
4.9% (year-on-year)

Book Value per Share (`)
9.4% (year-on-year)

13-14

68.0

12-13

64.8

11-12

61.2

10-11

62.0

09-10

49.7

Dividend per Share (`)
5.6% (year-on-year)

13-14

9.5

12-13

11-12

9.0

8.5

10-11

8.0

09-10

7.0

1 crore = 10 million

All figures for RIL Standalone

* Normalised on account of issue of bonus shares in the ratio of 1:1 in 2009-10

13-14

609.8

12-13

557.5

11-12

507.3

10-11

463.2

09-10

419.5

Debt Equity Ratio

13-14

0.45

12-13

0.40

11-12

0.41

10-11

0.44

09-10

0.46

Reliance Industries Limited
Annual Report 2013-14

Letter to
Shareholders

Growth is Life...

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Dear Fellow Shareowners,

In FY 2013-14 the
global economy
showed signs of
recovery with
growth in demand
from the developed
countries in the
second half of
the year.

Emerging markets, including
India, had to face multiple
challenges of rising current
account deficit, depreciation
of the local currency and
additional pressure due to
capital outflows.

Despite global and domestic
challenges, Reliance continued its
growth path. Reliance achieved a
record revenue of ` 4,01,302 crore
($ 67.0 billion) and net profit of
` 21,984 crore ($ 3.7 billion). We
became the first company in the
private sector to record revenues of
over ` 4,00,000 crore. Reliance also
achieved its highest ever exports
of ` 2,75,825 crore ($ 46.0 billion)
during the year, contributing
a record 69% of revenues. The
continued growth of exports is an
indicator of the growing demand
for our products and services across
the world.

Mukesh D. Ambani, Chairman and Managing Director

Reliance Industries Limited

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FY 2013-14 was another record-
setting year for RIL. Our Refining
business delivered the highest-
ever profits with a sharp recovery
in gross refining margins towards
the end of the year. Petrochemical
earnings grew significantly with
margin expansion across polymers
and downstream polyester
products.

The vertical integration across
the refining and petrochemicals
chain is a major advantage due to
assured feedstock, lower volatility
of margins and ability to take
advantage of the opportunity in
each product in the chain.

Domestic upstream production
was lower compared to the
prior year due to continuing
geological complexities. The
shale gas business in the US grew
significantly during the year and
has become a material contributor
to our earnings.

We are now India’s largest retailer
and turned profitable this year.

First

Private sector company in
India to record revenues of over
` 4,00,000 crore

110%

Capacity utilisation at the
Jamnagar refinery against
average utilisation rates of 85%
in North America, 76% in Europe
and 85% in Asia

We have also accelerated our
efforts to roll-out our state-of-the-
art 4G services across the country,
which will add an exciting new
dimension to our consumer facing
service offerings.

Refining & Marketing
Our Jamnagar refinery complex
continued to operate at over 110%
of the design capacity, processing
68.0 MMT of crude, testament to
our world-class assets and quality
of operations. Global utilisation
rates, in comparison, were 85% in
North America, 76% in Europe and
85% in Asia. This was supported
by stable middle distillate cracks,
favourable crude differentials and
currency movement. In addition
to the market dynamics, Reliance's
performance was driven by its
operational excellence and well-
executed strategies around crude
sourcing and product placement.
Continuing its emphasis on
processing the challenging and
most advantageous crudes, 64% of
the total crude processed during
the year was “advantaged”. The
ability to operate at high utilisation
levels and optimise product slate
to suit market conditions enabled
Reliance to capture opportunities in
the market.

As a part of our continuing
efforts for energy conservation,
we are working on the petcoke
gasification project which is under
rapid execution. This will provide
competitive energy costs for our
integrated refining complex at
Jamnagar and improve profitability.

Petrochemicals
Earnings from the Petrochemical
business increased by 17.5% on
the back of strong polymer and
downstream polyester margins
coupled with favourable exchange
rate movement. This was partly
offset by weak fibre margins in the
second half of the year

Demand growth in India for
petrochemical products during
FY 2013-14 was at a cyclical low
compared to the double digit
growth rates seen in the prior five
and ten year periods. Domestic
polymer demand growth was
particularly weak at 3%. Reliance
increased its polymer production
by 2% to 4.5 MMT and maintained
its leadership with a market share
of 40% in the domestic polymer
market.

Record Performance

Reliance achieved a record
revenue of ` 4,01,302 crore
($ 67.0 billion) and net profit
of ` 21,984 crore ($ 3.7 billion).

Achieved highest ever
refining earnings during
the year.

Reliance Industries Limited
Annual Report 2013-14

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Letter to Shareholders (Continued)

We are implementing
several projects both in the
manufacturing domain and
service sector to continue the
tradition of creating significant
shareholders value.

The margins in the polyester
chain were impacted by excess
capacity of PTA, slow growth in
demand for polyester fibre and
yarn and volatility in paraxylene
prices. Domestic polyester demand
growth was at 6%.

Reliance commissioned its new
PFY facility at Silvassa which is the
most automated and one of the
most environment friendly plants
globally. This is the first in the series
of expansions that have been
planned. With the economy and
consumption being at the bottom
of the down-cycle, the RIL start-ups
would be ideally placed at a time
when demand would emerge.

Exploration and
Production
In our domestic upstream business,
production from the KG-D6 block
continued to decline during
the year. The fall in production
is mainly attributed to the
geological complexity and natural
decline in the fields and higher
than envisaged water ingress.
Several activities were therefore

Superior Financial
Strength

Reliance is the only Asian
company in the oil & gas
sector to be rated two
notches above the sovereign
by S&P. Reliance is now
rated higher than some of
its global emerging market
peers demonstrating its
strength and competitive
position in the refining and
petrochemicals sectors.
The rating also underpins
Reliance’s position as
a leading large-scale,
integrated and efficient oil
refining and petrochemicals
company.

undertaken to sustain production
and enhance recovery from the
existing producing fields. During
the year, two significant discoveries
were made in the KG basin and
Cauvery basin. Development
activities in the two CBM blocks
is gathering momentum. The
new discoveries and the efforts to
enhance recovery will strengthen
India’s energy security.

Reliance continued to balance
its international portfolio by
evaluating new blocks and
assigning existing blocks. Reliance’s
Shale Gas business continued
on its growth path and has now
achieved materiality in many
respects. Our investments in the
US Shale Gas ventures have started
creating value for our shareholders.
This business achieved record
revenues and EBITDA for the year
with significant growth. Reliance's
share of net sales was at 131 BCFe
in CY 2013, a growth of 54% y-o-y
on account of about 1.6 fold
increase in number of wells put on
production from end of CY 2012.

Consumer Businesses
We are delighted that our retail
business continues to sustain its
leadership position across several
formats. It has become India’s
largest retailer by revenues. It
achieved the milestone of over 10
million square feet of retail space
during the year. It also achieved
break-even on a net profit basis
during the year. Our retail offerings
continue to delight our customers
reflected in a record number of
repeat customers and a healthy

Reliance Industries Limited

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rate of growth in the same stores.
Each format continues its plan of
aggressively expanding its footprint
as well as enhanced product and
service offerings in existing stores
to improve revenues and profits.

Our ambitious goal of making
India one of the global leaders
in the delivery of digital content
continues to gather steam.
Reliance Jio Infocomm received
Unified Licenses for all 22 service
areas across India thus becoming
the first telecom operator to
get a pan India license. Several
telecom infrastructure sharing
arrangements with multiple
operators were signed during the
year. This will help us accelerate
the roll-out of our 4G services
while preserving capital and
environment.

We have a strong balance-sheet
to support our ambitious growth
plans. Reliance is the only Asian
company in the oil & gas sector

about 1.6 fold

Increase in number of wells put on
production

131 BCFe

RIL's share of net sales
in US shale gas operations

to be rated two notches above
the sovereign by S&P. Reliance is
now rated higher than some of
its global emerging market peers
demonstrating its strength and
competitive position in the refining
and petrochemicals sectors. The
rating also underpins Reliance’s
position as a leading large-scale,
integrated and efficient oil refining
and petrochemicals company.

During the year, Reliance continued
to make significant progress on
strengthening people practices
and processes to attract and retain
world-class talent. Several measures
including new performance
management systems and flexible
work hours were put in place.

Reliance has always prided itself
in investing and contributing
to India’s economic growth. We
make a unique contribution to the
Indian economy as India’s largest
exporter, accounting for 14.7% of
the country’s exports. Reliance
has been globally and nationally
felicitated for creating sustained
long-term shareholders value.
We are implementing several
projects both in the manufacturing
domain and service sector to
continue this tradition of creating
significant shareholders value.
We are confident that our largest
capital expenditure cycle will
create significant value to all our
stakeholders.

During the year, Reliance
Foundation started several
initiatives in new geographies
in the rural transformation
and information service area.
Reliance Foundation’s role in
relief and rehabilitation efforts
in Uttarakhand was acclaimed
and earned significant respect.
Reliance Foundation continues
its work in the identified domains
of education, healthcare, rural
transformation, urban renewal and
protection of India’s arts, culture
and heritage.

I would like to thank all my
colleagues in India and around the
world for their commitment and
contribution towards Reliance’s
growth. As we strengthen our core,
we look at the future eagerly to
continue to generate shareholders
value.

I am grateful to the Board of
Directors for their support and
guidance. I would like to express
my deep gratitude to all our
stakeholders for the continued faith
reposed in Reliance.

With best wishes,
Sincerely,

Mukesh D. Ambani
Chairman & Managing Director
18th April 2014

Reliance Industries Limited
Annual Report 2013-14

The Board
of Directors

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6
Shri Mansingh L. Bhakta
Independent Director

7
Shri Mukesh D. Ambani
Chairman and Managing Director

Chairman: Finance Committee

4
Dr. Dharam Vir Kapur
Independent Director

Member: Human Resources,
Nomination and Remuneration
Committee,
Corporate Social Responsibility
and Governance Committee,
Health, Safety and Environment
Committee

5
Shri Ramniklal H. Ambani
Non-Executive Non-Independent
Director

1
Shri P. M. S. Prasad
Executive Director

Member: Health, Safety and
Environment Committee

2
Prof. Dipak C. Jain
Independent Director

3
Shri Nikhil R. Meswani
Executive Director

Member: Stakeholders
Relationship Committee,
Corporate Social Responsibility and
Governance Committee,
Finance Committee

Read the profiles of the Board of Directors on page 139

Reliance Industries Limited

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10
Shri Hital R. Meswani
Executive Director

Chairman: Health, Safety and
Environment Committee

Member: Stakeholders
Relationship Committee,
Finance Committee

12
Dr. Raghunath A. Mashelkar
Independent Director

Member: Audit Committee,
Human Resources, Nomination
and Remuneration Committee,
Corporate Social Responsibility and
Governance Committee

8
Shri Yogendra P. Trivedi
Independent Director

Chairman: Audit Committee,
Stakeholders Relationship
Committee,
Corporate Social Responsibility and
Governance Committee

Member: Human Resources,
Nomination and Remuneration
Committee

9
Shri Mahesh P. Modi
Independent Director

Member: Audit Committee

11
Prof. Ashok Misra
Independent Director

Member: Stakeholders
Relationship Committee

13
Shri Adil Zainulbhai
Independent Director

Chairman: Human Resources,
Nomination and Remuneration
Committee

Member: Audit Committee

14
Shri Pawan Kumar Kapil
Executive Director

Member: Health, Safety and
Environment Committee

Reliance Industries Limited
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Growth is Energy

Energy is key to progress. Energy is opportunity and fundamental to the quest
for a better life. RIL has invested itself with energy and passion to address
opportunities in India's economic landscape, both in the energy value chain
and the growing consumer services industry.

RIL's Diverse Business Footprint

R&M
Petcoke gasification to maximise value
addition and provide sustainable
long-term cost advantage

Petchem
Projects strengthening cost
competitiveness and expanding overall
volumes by more than 60%

Reliance Industries Limited

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 Aromatics Complex at Jamnagar

Strengthening
Energy Security
At RIL, world-class assets set
global benchmarks and help
meet India's growing energy
needs. RIL is integrated across
the energy value chain through
a unique portfolio of upstream,
refining and petrochemicals
businesses. Besides, global
scale, integration and locational
advantages enable cost
leadership. RIL's complex
refining assets are configured
to produce clean fuels and also
provide feedstock integration
to its world-scale petrochemical
plants. RIL’s investments in the
energy and materials businesses
are in brownfield sites – aimed at
strengthening its position among
the most competitive and energy
efficient producers globally.

Capex for Growth

RIL is currently making
investments in excess of
` 1,50,000 crore across its
businesses.

` 1,50,000
crore

Planned investment programme

Delivering
Consumer Value

Retail
India’s consumption story is
only beginning to unfold. With
growing young earners and their
aspiration for a better quality of
life, the consumer retail business
offers a $ 500 billion market
opportunity. Reliance Retail is a
market leader in several products
through a multi-format strategy
with over 10 million square feet
of retail space. It has achieved
leadership in the digital, lifestyle
and value formats.

Telecom
Reliance Jio is the only private
player with contiguous, pan India
spectrum in the 2,300 MHz band
across 22 telecom circles. It also
holds spectrum in the 1,800 MHz
band in 14 telecom circles.

In addition, it is on-track to
become the leading Indian
player to deliver digital content,
applications and services through
a greenfield initiative.

RIL’s energised initiatives across
businesses accelerate growth,
because growth is life.

E&P
Success in KG-D6 (MJ1) and
Cauvery basin block (CY-D5) will
augment India's energy security

Retail

Initiatives will continue to build
scale by providing consumers
with choice and delivering
continuous value

Initiatives are expected to build
scale based on technological
superiority, affordability and
providing an unparalleled range
of services that do not exist today

Reliance Industries Limited
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Growth is Value

At RIL, value is delivered through a consistent focus on quality across all
business verticals. The experience and expertise of people, application
of advanced technology and the ability to build strong relationships
across the stakeholders fraternity helps RIL foster sustainable value.

RIL – India's largest private sector company

14.7%

Of India’s exports

Of India's total market
capitalisation

Weightage in the Bombay Stock
Exchange (BSE) Sensex

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 Polypropylene Plant at Jamnagar

Consistent Value
Creation
RIL has consistently created
stakeholders value through a
focus on operating sustainably
and profitably.

10-year CAGR of key
value parameters (%)

21.7

Revenue from operations

12.8

Cash profit

15.6

Net profit

19.1

17.8

Networth

Total Assets

14.9

Market Capitalisation

Delivering
Shareholders Return
RIL is focused on enhancing
shareholders value by optimising
asset utilisation and investing in
improving cost competitiveness
and growth opportunities, while
maintaining a conservative
financial profile.

Dividend payout

Consistently increased
dividend payout in the last
22 consecutive years.

24.7% CAGR

Growth in dividend payout
since listing

India's largest
exporter

10-year CAGR of exports: 33.8%

RIL exports to

123 countries

` 70,136 crore

Total Value Added* in FY 2013-14

Value Added* Statement
in FY 2013-14 (%, ` crore)

Stakeholders

Contribution to National
Exchequer

% ` crore

31,374

Reinvested in the
Group to maintain &
develop operations

Providers of Debt

Employee Benefits

Providers of equity
Capital

27,980

3,907

3,370

2,793

Contribution to Society

712

* Value Added represents value created by
the activities of the enterprise. The value added
statement also shows total value added and its
application among the stakeholders.

One of the Largest
Contributors to
India's Exchequer

Contribution to National
Exchequer (` crore)

13-14

7,171

24,203

12-13

6,394

22,556

11-12

6,148

22,049

10-11

5,284

23,435

09-10

4,372

13,600

Direct Taxes

Indirect Taxes

` 2,75,825
crore

Exports in FY 2013-14 ( 15.3%),
68.7% of turnover

6.7%

Weightage in the National Stock
Exchange(NSE) Nifty

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Growth is Happiness

At RIL, business priorities co-exist with social commitments.
Consistent collaborations and engagement with stakeholders
ensure a religious adherence to the 4P model.

RIL's social investments

` 712 crore

CSR expenditure
by RIL in FY 2013-14

1+ million

Lives touched by Reliance
Foundation

5,500+

Villages and urban locations
touched by Reliance Foundation

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 School Children at Gadimoga

The ‘4P’ Growth Approach
RIL believes that sustainable business transformation can be achieved
only through enhancing profits, empowering people, protecting the
planet and investing in the innovation of products and processes. During
FY 2013-14, RIL undertook several initiatives, key among which are:

Profit
l Revenue (turnover) increased
by 8.1% to ` 4,01,302 crore
($ 67.0 billion)

l Cash Profit increased by 1.0%
to ` 30,795 crore ($ 5.1 billion)
l Net Profit increased by 4.7% to

` 21,984 crore ($ 3.7 billion)

l 20.3% increase in Market

Capitalisation to ` 3,00,405
crore ($ 50.1 billion)

Planet
l Planted more than 11,00,000
saplings through Reliance
Foundation

People
l A total of 1.36 million man-

hours of training was imparted
to workforce

l More than 460 Village Farmer
Associations (VFAs) are being
actively involved in the process
of bringing about a change
in the lives of nearly 40,700
farming households

l 3,552 HIV/AIDS patients were
provided free consultation,
counselling, investigation and
treatment at the ART Clinic of
Dhirubhai Ambani Hospital at
Lodhivali

l Increased recycled material

l Over 12,800 free corneal

utilisation by 9.4%

l Reduced effluent discharged

by 0.4%

l Decreased emissions of
NOx from process stacks
by 1.1%

l 24 million cubic meters of
water harvesting facility
through Reliance Foundation

CSR Expenditure
in FY 2013-14 (%)

transplants across India till date
(Reliance Drishti)

Product
l PP non-woven fabric for crop
protection against extreme
weather

l PVC-based food grain

packaging ensures high CO2
level and low oxygen level,
ensuring zero insect survival
and complete food protection

nearly 40,700

Farming households being
uplifted through 460+ VFAs

Health
Rural Development
Education
Others
Total Expenditure ` 712 crore

59
23
11
7

Reliance Industries Limited
Annual Report 2013-14

Review of Operations
Refining and
Marketing

RIL is among the top ten private players in the refining business
globally. RIL's Jamnagar Complex has become the petroleum
hub of the world and represents about 2% of global crude
processing capacity. This asset has placed both RIL, as well as
India, high on the world energy map.

Core
Strengths
& Key
Advantages

l Large scale and highly complex refinery

l 128 different grades of crude processed which is

over 40% of world-traded crude

l More than 50% of total refinery crude diet is

"advantaged"

l World-class logistics infrastructure

l Strategic location, port-based, fully-integrated

manufacturing facility

l Efficient crude sourcing

l Global reach with product storages at key

destinations

l Refinery utilisation rates consistently surpassing

global averages

l Energy efficient refiner - operating cost per barrel

among the lowest in the world

l Flexibility to alter the product slate/adapt to the

changing market dynamics

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No. 1

Largest crude processing
capacity located at one place
(Jamnagar) in the world

12.7

Nelson Complexity Index

1.4 MMBPD

Crude processed during the year

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 Fluid Catalytic Cracking Unit at Jamnagar Refinery

Operational Highlights

Read more about our R&M Operations on page 51

New crude grades
processed

Largest

Petcoke gasification
(upcoming) project to
lower energy costs

68 MMT

Crude processed at
Jamnagar refinery at
110% utilisation rate

$8.1/bbl

GRM consistently
outperforming regional
benchmarks

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Reliance Industries Limited
Annual Report 2013-14

Review of Operations
Petrochemicals

RIL is one of the leading petrochemicals producers, globally,
with state-of-the-art, world-scale petrochemical plants.
RIL has carved a niche for itself in terms of product quality
and customer service. Its product portfolio includes Polymers,
Polyester & Fibre intermediates and Chemicals & Elastomer.

Core
Strengths
& Key
Advantages

l Fully-integrated operations

l Balanced portfolio of naphtha and gas-based
crackers along with matching downstream
capacities

l Leading market share in various products

l Manufacturing operations across 11 locations in India

l Among the lowest operating costs in the industry

l Focus on high growth markets

l Capital expenditure plans to enhance production
capacity by more than 60% to service the large
growing domestic market

l Likely to be among the top five petrochemical

producers by capacity, globally, post completion of
petrochemical and fibre expansion plans

1.4 MMTPA

World's largest ethylene
cracker based on refinery
off-gases being set up

Large

Capacity additions across
polyester chain

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 Aromatics Plant at Hazira Petrochemicals Complex

Operational Highlights

Read more about our Petrochemicals Operations on page 56

Commissioned the most automated
PFY plant, globally, at Silvassa

Petrochemicals production
21.9 MMT

Consistently operating at close to
100% capacity utilisation

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Reliance Industries Limited
Annual Report 2013-14

Review of Operations
Exploration and
Production

RIL is India’s largest private sector E&P operator with robust
domestic as well as international asset portfolio. Its assets
include KG-D6, Panna-Mukta, Tapti and two CBM blocks
in addition to several domestic and international blocks.
Additionally, RIL has three joint ventures in North America in
shale gas with Pioneer Natural Resources, Chevron and Carrizo.

Core
Strengths
& Key
Advantages

l Strong off-shore capabilities in India

l Strategic partnership with BP for domestic upstream

business

l Leveraging the existing infrastructure, knowledge

and experience

l Outstanding growth pace in unconventional shale

gas business

l Balanced portfolio consisting of conventional and
unconventional, deepwater and shallow water,
onshore and off-shore, hydrocarbon resource play

KG-D6

One of the world’s
largest and most
complex deepwater
gas production
facilities

13.2
million

Acres of exploration
acreage globally

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 Control and Riser Platform at KG-D6 block

Operational Highlights

Two significant hydrocarbon
discoveries: one in KG-D6 block,
the other in Cauvery basin (CY-D5)

KG-D6 block (JV) produced 178.3
BCF of gas and 2.3 MMBBL of oil
and condensate in FY 2013-14; new
well MA-08 put to production

KG-D6 block (JV): cumulative
production of 2.32 TCF of gas and
24.9 MMBBL of oil and condensate

43% reserve accretion in US Shale Gas
Operations with proved reserves at
2.66 TCFe as at December 2013

Read more about our E&P
Operations on page 63

Reliance Industries Limited
Annual Report 2013-14

Review of Operations
Retail

RIL is fulfilling the vision of creating an inclusive growth
framework by forging enduring bonds between millions
of farmers, consumers and small retailers, supported by a
world-class supply chain. In-store initiatives, wide product
choices and value merchandising are key enablers for
robust growth.

Core
Strengths
& Key
Advantages

l Pan India store network – 20 states

l Leveraging world-class supply chain in creating
partnerships with kiranas and small shopkeepers

l Association with leading international renowned

brands

l Committed to deliver quality products and

services

l Market leaders in digital, lifestyle and value

formats

l Continuous focus on own label products

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Revenue Break-up (%)

Value format & Others
Digital
Fashion & Lifestyle
Jewellery
Brands

Revenue ` 14,496 crore

55
21
13
9
2

>3.5 million

Customers served every week

146

Cities across India

1,691

Total number of stores

11.7millionsqft

Area of retail space

Operational Highlights

Read more about our Retail Operations on page 70

Achieved y-o-y revenue growth
of 34% in line with a CAGR of 34%
over the past 3 years

Over 1.2 million registered
members for Reliance Market

Rapid expansion across formats,
net addition of 225 stores

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 Reliance Trends store in Mumbai

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Awards and Recognitions
Leadership
RIL's Chairman and Managing
Director, Shri Mukesh D.
Ambani, received the 'NDTV
25 Greatest Living Legends
of India' Award from the
Honourable President of India,
Shri Pranab Mukherjee 

CSR
l Oliver Kinross Asia Oil & Gas

Award 2013 for Corporate Social
Responsibility - Company of the
Year (RIL KG-D6)

l “Best ART (Anti-Retroviral

Therapy) Centre Award 2013”
by Gujarat State AIDS Control
Society (GSACS) on World AIDS
Day (Hazira Manufacturing
Division)

Quality
l CII Six-Sigma National Award

for 2013 in the ‘Continuous and
Bulk Organisations’ category
(Vadodara Manufacturing
Division)

Health, Safety and
Environment
l Golden Peacock National
Award for Occupational
Health & Safety 2012-13 in the
petrochemical sector (Nagothane
Manufacturing Division)

l “International Safety Award 2014”
with distinction for Health and
Safety Management System
performance for 2013 (Jamnagar
SEZ Refinery)

Technology & Innovation
l 3rd National Award, 2013, for
Technology Innovation in
Petrochemical & Downstream
Plastic Processing Innovation
award from Ministry of Chemicals
& Fertilizers, Government of India
(Reliance Technology Group)

Retail
l Asian Human Capital Award

2013 - Special Commendation
Prize for Work Smart - A Business
Excellence and Workforce
Enablement Programme
(Reliance Retail Academy)

l Star Retailer Award 'Consumer

Durables Retailer of the Year 2013'
(Reliance Digital)

Sustainability
l CII-ITC Sustainability

Awards 2013 - India’s Most
Sustainable Companies (Hazira
Manufacturing Division)
l Golden Peacock Award for

Sustainability 2013 (Nagothane
Manufacturing Division)

Key Awards

Company Information

Board of Directors

Board Committees

Chairman and Managing Director
Mukesh D. Ambani
Executive Directors
Nikhil R. Meswani
Hital R. Meswani
P. M. S. Prasad
Pawan Kumar Kapil

Chief Financial Officer
Alok Agarwal

Auditors
Chaturvedi & Shah
Deloitte Haskins & Sells LLP
Rajendra & Co.

1w.e.f. 20.12.2013

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

Corporate Social
Responsibility and
Governance Committee
Yogendra P. Trivedi
(Chairman)
Nikhil R. Meswani

Audit Committee
Yogendra P. Trivedi
(Chairman)
Mahesh P. Modi
Dr. Raghunath A. Mashelkar
Adil Zainulbhai1
Stakeholders Relationship Dr. Dharam Vir Kapur
Committee
Yogendra P. Trivedi
(Chairman)

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 Nikhil R. Meswani
Adil Zainulbhai1
Hital R. Meswani
Prof. Ashok Misra
Human Resources,
Nomination and
Remuneration Committee Hital R. Meswani
Adil Zainulbhai
(Chairman)
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Dr. Raghunath A. Mashelkar

Dr. Raghunath A. Mashelkar
Finance Committee
Mukesh D. Ambani
(Chairman)
Nikhil R. Meswani
Hital R. Meswani
Health, Safety and
Environment Committee

Group Company
Secretary and Chief
Compliance Officer
K. Sethuraman

(Chairman)
Dr. Dharam Vir Kapur
P. M. S. Prasad
Pawan Kumar Kapil

Solicitors & Advocates
Kanga & Co.

1 w.e.f. 20.12.2013

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

Major Plant Locations

Dahej
P. O. Dahej,
Taluka: Vagra, Dist.
Bharuch - 392130,
Gujarat, India
Gadimoga
Tallarevu Mandal,
East Godavari District,
Gadimoga – 533 463,
Andhra Pradesh, India

Hazira
Village Mora, P.O. Bhatha,
Surat-Hazira Road,
Surat - 394 510,
Gujarat, India
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 - 402125,
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

Registered Office

Registrars & Transfer Agents

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

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

40th Annual General Meeting on Wednesday , June 18, 2014 at 11:00 a.m. at Birla Matushri Sabhagar, 19, New Marine Lines, Mumbai 400 020.

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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

Reon

Polyvinyl Chloride (PVC)

Relpipe

Poly-Olefin HDPE and PPR pipes

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.

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Business/
Brand

Product

Petrochemicals - Polymers

Relflex™
Elastomers

Synthetic Rubbers

Polybutadiene Rubber (PBR)

Styrene Butadiene Rubber (SBR)

Relflex™ Cisamer
PBR

Relflex™
Stylamer SBR

Chemicals

Relab

Brand

End Uses

Tyres, Footwear soles & heels, belts, hoses etc.

Automotive Tyres, Tyre treads, Cycle Tyres, Conveyor &
V-Belts, Sports Goods, Dock Fenders, HIPS etc.

Tyres, Footwear, Conveyor belts, Hoses, Mechanical
rubber goods etc.

Linear Alkyl Benzene (LAB)

Detergents

Petrochemicals - Polyester & Fibre Intermediates

Paraxylene (PX)

Purified Terephthalic Acid (PTA)

Mono Ethylene Glycol (MEG)

Raw material for PTA

Raw material for polyester

Recron®

Polyester Staple Fibres, Polyester
Filament Yarns, Speciality Polyesters

Apparel, Home textiles, Technical textiles & Non-
wovens

Recron® IDY

Polyester high-tenacity industrial yarns

Recron® SHT

Polyester Super High Tenacity Fibres

Recron® Fancyy

Innovative Polyester Filament yarns

Stretch yarns for comfortable fit
and freedom of movement

Cotton Look, Cotton Feel Yarns

Recron®
Stretch

Recron®
Cotluk

Recron®
Dyefast

Conveyor belts, ropes, geo-grids, seat-belts, lashings,
slings, industrial fabrics etc.

Hi-Strength, Low-shrinkage Sewing threads for apparel,
home and industrial applications

Value-added fine quality fashion fabrics with unique
weave patterns, textures and hand-feel.

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®
Superblack

Dope dyed black
with high consistency in shade

Recron®
Superdye

Bright, brilliant colours
and soft feel, low pill

Apparel, automotive, non-woven & interlining

Woven & knitted apparel, furnishing & home textile

Recron®
Kooltex

Recron®
Fibrefill

Moisture management yarns

Active sports and high performance wear

Hollow fibres with high bounce and
resilience

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

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Annual Report 2013-14

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Business/
Brand

Product

Brand

End Uses

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Petrochemicals - Polyester & Fibre Intermediates

Recron® 3D
Conjugate

Virgin superwhite fibres with a unique
spiral structure

Secondary Reinforcement Products

Sleep and comfort products, Furniture, Toys & Beddings

industry

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

Quality Certified Sleep Products

Pillows, cushions, blankets & quilts

Polyester Tow & Staple Fibre with
unique low pill properties

Anti microbial fibres & yarns

High-end worsted suitings, upholstery fabrics & socks

Active sportswear,
furnishings & garments used in healthcare industry

Intimate apparel, socks, home

Bi-component filament yarns

Super soft and ultra comfortable fabrics

Hi-bulk fibres for soft-feel & warmth

Sweaters, pullovers, cardigans, shawls & jackets

Recron®
3S

Recron®
Certified

Recron®
Low Pill

Recron®
FeelFresh

Recron®
Micrelle

Recron®
Recrobulk

Recron®
Green

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

Apparel & home textiles

Recron®
Spunlace

Recron®
RecoSilk

Recron®
FR

Recron®
Duratarp

Recron®
Safeband

Speciality polyester fibres

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

Speciality Polyester Filament Yarns

R e c o s i l k

Ideal for dress materials, velvet, sarees, embroidery
threads with a silken shimmer and in swathes of colour.

Flame retardant Fibres & Yarns

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

Structurally modified polyester fibre
with antimicrobial and antifungal
properties

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

Tarpaulin, Tents & Awnings

Crepe, Rolled Bandages & Surgical Dressings

Relpet®

Polyethylene Terephthalate (PET)

Packaging for bottled water, beverages, confectionary,
pharmaceutical, agro-chemical and food products

Textiles

Vimal

Suitings, Shirtings, Readymade
Garments

Fabrics, suits, jackets, shirts & trousers

Vimal Gifting

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

Ready-to-stitch,
Take away fabric

Fabrics

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Business/
Brand

Product

Retail

Brand

End Uses

Reliance Retail

Organised retail

Food & Grocery
Specialty Store

Mini Hypermarket

Hypermarket

Wholesale Store

Electronics Specialty Store

Digital Technology Specialty Store

Exclusive Apple Store

Digital Service Center

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,
merchandise

entertainment,

gaming

for

Solutions
the emerging entertainment and
technology needs of Smart phones, ultra books, HD
speakers, music players, smart TVs.

Range of Apple products like IPod and IMac

Services (Guidance, Installation, Maintenance & Repair)
for Digital products

Jewellery Specialty Store

Fine jewellery

Apparel Specialty

Footwear Specialty Store

Furniture, Furnishing &
Homeware Specialty Store

Automotive Services &
Products Specialty Store

Men, ladies, children clothing and accessories

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

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

Italian Luxury Men’s Clothing

Apparel, Accessories and Footwear for Men

Italian luxury sportswear brand

Apparel, Accessories and Footwear for Men

Luxury Footwear

Accessories and Footwear for Women

British Shirt Authority

Apparel and Accessories for Men

American icon that has redefined &
shaped classic American style for nearly
two centuries

Apparel and Accessories for Men

Iconic Italian Lifestyle Brand

Apparel, Accessories and Footwear

Reliance Industries Limited
Annual Report 2013-14

Major Products and Brands (Continued)

Business/
Brand

Retail

Product

Brand

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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

Distinctive Fashion footwear &
Accessories

Fashion forward Footwear &
Accessories Brand

Apparel, Accessories and Footwear

Accessories and Footwear for Men and Women

The finest toy shop in the world

Toys

Optical Specialty Store

Spectacles, Sunglasses, Contact Lenses

International Apparel, Accessories & Home
Products Store

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

Affordable Fashion Footwear Specialty
Store

Mens, ladies, kids and sports footwear, handbags and
accessories

Iconic Japanese Sports Performance
brand

Quiksilver is a premium youth lifestyle
and culture clothing brand representing
action sports

Roxy is a global lifestyle brand, offering
products for every aspect of an active
girl’s life, the key ingredient of the
products being the inimitable Roxy
spirit. “Daring, confident, naturally
beautiful, fun, alive”

Founded by Ken Block and Damon Way
in 1993, DC is a leader in performance
skateboarding shoes and renowned action
sports and stands as a global brand whose
product line has expanded to include
men’s, women’s and kids’ skateboarding
and lifestyle shoes, apparel, snowboards,
snowboard boots, outerwear, and
accessories.

GAS is an Italian clothing brand
offering quality products for
intelligent, aware consumers, with an
international, cosmopolitan attitude.

Men, Ladies Sports footwear, clothing & accessories

Apparel, Accessories, Footwear, Skateboards &
Surfboards

Apparel, Accessories, Swimwear, Footwear for girls

Apparel, Accessories, Footwear, Skateboards

Apparel, Accessories, Footwear for men & women

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Business/
Brand

Retail

Product

Brand

End Uses

Global apparel brands by blending
surf, sport, urban and street into a
contemporary fashion brand with a
broad and credible appeal

Apparel, Accessories, Footwear for Men and Women

Umbro makes football tail oring

Men’s sports Footwear, Apparel and Accessories

The #1 most recognized home brand
with a powerful heritage

Alternative lifestyle fashion brand that
celebrates the classic American tattoo
as an art form

Known for the classic trench coat and
its iconic reputation

Home Furnishings

Apparel, Accessories, Footwear for Men and Women

Fun & Flirty American Lifestyle Brand

Apparel, Accessories, Footwear for Girls

Transportation fuels

Retail distribution of fuels

Fleet Management Services

Highway Hospitality Services

Auto LPG

Transport fleet

Highway food plaza

Auto fuel outlet

GAPCO

Petroleum Retail

Retail distribution of fuels

Lubricants

Jio

Lubricants

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Financial Highlights

Revenue From Operations

$ Mn
66,979

2013-14
06-07
4,01,302 3,71,119 3,39,792 2,58,651 2,00,400 1,46,328 1,39,269 1,18,354

12-13

11-12

10-11

09-10

08-09

07-08

` in crore

05-06 04-05
89,124 73,164

Total Income

68,470

4,10,238 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

Earnings Before Depreciation,
Finance Cost and Tax Expenses
(EBDIT)
Depreciation and
Amortisation
Exceptional Items

Profit For the Year

Equity Dividend %*

Dividend Payout

Equity Share Capital

Equity Share Suspense
Account
Equity Share Warrants

6,645

39,813

38,785

39,811

41,178

33,041

25,374

28,935

20,525

14,982 14,261

1,467

8,789

9,465

11,394

13,608

10,497

5,195

4,847

4,815

3,401

3,724

(370)

4,733

3,669

21,984

21,003

20,040

20,286

16,236

15,309

19,458

11,943

9,069

7,572

130

110

100

2,793

2,643

2,531

2,385

2,084

1,897

1,631

1,440

1,393

1,045

3,232

3,229

3,271

3,273

3,270

1,574

1,454

1,393

1,682

466

539

Reserves and Surplus

32,353

1,93,842 1,76,766 1,62,825 1,48,267 1,33,901 1,24,730

78,313

62,514

48,411 39,010

Net Worth

Gross Fixed Assets

Net Fixed Assets

Total Assets

32,892

1,97,074 1,79,995 1,66,096 1,51,540 1,37,171 1,26,373

81,449

63,967

49,804 40,403

44,109

2,64,281 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

25,223

1,51,122 1,28,864 1,21,477 1,55,526 1,65,399 1,69,387

84,889

71,189

62,675 35,082

61,351

3,67,583 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

Market Capitalisation

50,139

3,00,405 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

Number of Employees

Contribution to National
Exchequer

23,853

23,519

23,166

22,661

23,365

24,679

25,487

24,696

12,540 12,113

5,236

31,374 28,950

28,197

28,719

17,972

11,574

13,696

15,344

15,950 13,972

Key Indicators

Earnings Per Share - (`)
[excluding Exceptional item]*
Turnover Per Share - (`)

Book Value Per Share - (`)

Debt : Equity Ratio

EBDIT / Gross Turnover %

Net Profit Margin %

RONW % **

ROCE % **

$
1.1

2013-14
68.0

12-13
64.8

11-12
61.2

10-11
62.0

09-10
49.7

08-09
49.7

07-08
105.3

06-07 05-06
65.1
82.2

04-05
54.2

20.7

10.2

9.9

5.5

12.9

11.5

1,241.7

1,149.5

1,037.8

790.5

612.9

464.9

958.1

814.2

639.6

525.0

609.8

557.5

507.3

463.2

419.5

401.5

560.3

440.0

357.4

289.9

0.45:1

0.40:1

0.41:1

0.44:1

0.46:1

0.63:1

0.45:1

0.44:1

0.46:1

9.9

5.5

12.9

11.5

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

16.8

10.1

10.2

23.5

22.7

20.5

19.5

10.3

21.9

21.3

In this Annual Report $ denotes US$
1US $ = ` 59.915 (Exchange rate as on 31.03.2014)
* Adjusted for issue of Bonus Shares in 2009-10 in the ratio of 1:1
** Adjusted for CWIP and revaluation

Reliance Industries Limited
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Notice

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Notice is hereby given that the fortieth Annual General
Meeting of the members of Reliance Industries Limited will
be held on Wednesday, June 18, 2014 at 11.00 a.m. at Birla
Matushri Sabhagar, 19, New Marine Lines, Mumbai 400 020,
to transact the following businesses:

Ordinary Business
1. To consider and adopt:

(a) the audited financial statement of the Company
for the financial year ended March 31, 2014, the
reports of the Board of Directors and Auditors
thereon; and

(b) the audited consolidated financial statement of
the Company for the financial year ended March
31, 2014.

2. To declare a dividend on equity shares.

3. To appoint a Director in place of Shri Nikhil R. Meswani
(DIN: 00001620), who retires by rotation at this Annual
General Meeting and being eligible has offered himself
for re-appointment.

4. To appoint Auditors and 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:

THAT M/s. Chaturvedi &

“RESOLVED
Shah,
Chartered Accountants (Registration No. 101720W),
Deloitte Haskins & Sells LLP, Chartered Accountants
(Registration No. 117366W / W – 100018) 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 till
the conclusion of the next Annual General Meeting of
the Company at such remuneration as shall be fixed by
the Board of Directors of the Company.”

Special Business
5. To appoint Smt. Nita M. Ambani (DIN: 03115198) as a
Director to fill up the vacancy of the retiring director
Shri Ramniklal H. Ambani (DIN: 00004785), who
retires at this Annual General Meeting 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 Smt. Nita M. Ambani (DIN: 03115198),
in respect of whom the Company has received a

notice in writing under Section 160 of the Companies
Act, 2013 from a member proposing her candidature
for the office of Director, be and is hereby appointed
as a Director of the Company, liable to retire by
rotation in the vacancy of Shri Ramniklal H. Ambani
(DIN: 00004785), who retires at this Annual General
Meeting.”

6. To appoint Shri Adil Zainulbhai (DIN: 06646490) as an
Independent Director and in this regard to consider and
if thought fit, to pass, with or without modification(s),
the following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of
Sections 149, 152 read with Schedule IV and all other
applicable provisions of the Companies Act, 2013
and the Companies (Appointment and Qualification
of Directors) Rules, 2014 (including any statutory
modification(s) or re-enactment thereof for the time
being in force) and Clause 49 of the Listing Agreement,
Shri Adil Zainulbhai (DIN: 06646490), who was appointed
as an Additional Director pursuant to the provisions
of Section 161(1) of the Companies Act, 2013 and the
Articles of Association of the Company and who holds
office up to the date of this Annual General Meeting
and in respect of whom the Company has received a
notice in writing under Section 160 of the Companies
Act, 2013 from a member proposing his candidature
for the office of Director, be and is hereby appointed
as an Independent Director of the Company to hold
office for 5 (five) consecutive years for a term up to
March 31, 2019.”

7. To appoint Shri Yogendra P. Trivedi (DIN: 00001879)
as an Independent Director and in this regard to
consider and if thought fit, to pass, with or without
modification(s),
resolution as an
following
the
Ordinary Resolution:

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notice in writing under Section 160 of the Companies
Act, 2013 from a member proposing his candidature for
the office of Director, be and is hereby appointed as an
Independent Director of the Company to hold office for 3
(three) consecutive years for a term up to the conclusion of
the 43rd Annual General Meeting of the Company in
the calendar year 2017.”

8. To appoint Prof. Ashok Misra (DIN: 00006051) as an
Independent Director and in this regard to consider and
if thought fit, to pass, with or without modification(s),
the following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Sections
149, 152 read with Schedule IV and all other applicable
provisions of the Companies Act, 2013 and the
Companies (Appointment and Qualification of Directors)
Rules, 2014 (including any statutory modification(s) or
re-enactment thereof for the time being in force) and
Clause 49 of the Listing Agreement, Prof. Ashok Misra
(DIN: 00006051), who was appointed as a Director
liable to retire by rotation and whose term expires at
this Annual General Meeting and in respect of whom
the Company has received a notice in writing under
Section 160 of the Companies Act, 2013 from a member
proposing his candidature for the office of Director, be
and is hereby appointed as an Independent Director of
the Company to hold office for 3 (three) consecutive
years for a term up to the conclusion of the 43rd Annual
General Meeting of the Company in the calendar
year 2017.”

9. To re-appoint Shri Mukesh D. Ambani (DIN: 00001695)
as Managing Director and in this regard to consider and
if thought fit, to pass, with or without modification(s),
the following resolution as an Ordinary Resolution:

this Meeting, with liberty to the Board of Directors
(hereinafter referred to as “the Board” which term
shall be deemed to include the Human Resources,
Nomination and Remuneration Committee of the
Board) to alter and vary the terms and conditions of the
said re-appointment and / or remuneration as it may
deem fit and as may be acceptable to Shri Mukesh D.
Ambani, subject to the same not exceeding the limits
specified under Schedule V to the Companies Act,
2013 or any statutory modification(s) or re-enactment
thereof;

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

10. To re-appoint Shri P.M.S. Prasad (DIN: 00012144) as a
Whole-time Director designated as Executive Director
and in this regard to consider and if thought fit, to
pass, with or without modification(s), the following
resolution as an Ordinary Resolution:

“RESOLVED THAT in accordance with the provisions of
Sections 196, 197 and 203 read with Schedule V and all
other applicable provisions of the Companies Act, 2013
and the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 (including any
statutory modification(s) or re-enactment thereof,
for the time being in force), approval of the Company
be and is hereby accorded to the re-appointment of
Shri P.M.S. Prasad (DIN: 00012144) as a Whole-time
Director, designated as Executive Director of the
Company, for a period of 5 (five) years with effect from
August 21, 2014 on the terms and conditions including
remuneration as set out in the Statement annexed to the
Notice convening this Meeting, with liberty to the Board
of Directors (hereinafter referred to as “the Board” which
term shall be deemed to include the Human Resources,
Nomination and Remuneration Committee of the Board)
to alter and vary the terms and conditions of the said
re-appointment and / or remuneration as it may deem
fit and as may be acceptable to Shri P.M.S. Prasad,
subject to the same not exceeding the limits specified
under Schedule V to the Companies Act, 2013 or any
statutory modification(s) or re-enactment thereof;

RESOLVED FURTHER THAT the Board be and is hereby
authorised to do all acts and take all such steps as may

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be necessary, proper or expedient to give effect to this
resolution.”

11. To approve

the payment of

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:

remuneration

“RESOLVED THAT in supersession of the resolutions
previously passed by the shareholders in this regard and
pursuant to the provisions of Sections 197, 198 and all
other applicable provisions of the Companies Act, 2013
and the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 (including any
statutory modification(s) or re-enactment thereof for
the time being in force), the non-executive directors of
the Company (i.e. directors other than the Managing
Director and / or the Whole-time Directors) be
paid, remuneration, in addition to the sitting fee for
attending the meetings of the Board of Directors or
Committees thereof, as the Board of Directors may from
time to time determine, not exceeding in aggregate
one percent of the net profits of the Company for each
financial year, as computed in the manner laid down
in Section 198 of the Companies Act, 2013, or any
statutory modification(s) or re-enactment thereof;

RESOLVED FURTHER THAT the Board of Directors
of the Company (including the Human Resources,
Nomination and Remuneration Committee) be and is
hereby authorised to do all acts and take all such steps
as may be necessary, proper or expedient to give effect
to this resolution.”

12. To approve the payment of remuneration to executive
directors and in this regard to consider and if thought
fit, to pass, with or without modification(s), the
following resolution as an Ordinary Resolution:

“RESOLVED THAT in supersession of the resolutions
previously passed by the shareholders in this regard and
pursuant to the provisions of Sections 197, 198 and all
other applicable provisions of the Companies Act, 2013
and the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 (including any
statutory modification(s) or re-enactment thereof,
for the time being in force), the executive directors
of the Company (i.e. the Managing Director and the
Whole-time Directors) be paid, remuneration by
way of salary, perquisites and allowances, incentive /
bonus / performance linked incentive, remuneration
based on net profits, etc. as per their respective terms

of appointment, as the Board of Directors may from
time to time determine, not exceeding in aggregate
one percent of the net profits of the Company for each
financial year, as computed in the manner laid down
in Section 198 of the Companies Act, 2013 or any
statutory modification(s) or re-enactment thereof;

13. To approve the remuneration of the Cost Auditors for
the financial year ending March 31, 2015 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 pursuant to the provisions of
Section 148 and all other applicable provisions of
the Companies Act, 2013 and the Companies (Audit
and Auditors) Rules, 2014 (including any statutory
modification(s) or re-enactment thereof,
for the
time being in force), the Cost Auditors appointed by
the Board of Directors of the Company, to conduct
the audit of the cost records of the Company for the
financial year ending March 31, 2015, be paid the
remuneration as set out in the Statement annexed to
the Notice convening this Meeting;

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

14. To approve offer or

invitation to subscribe to
Non-Convertible Debentures on private placement 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 42, 71 and all other applicable provisions of
the Companies Act, 2013 read with the Companies
(Prospectus and Allotment of Securities) Rules,
2014
(including any statutory modification(s) or
re-enactment thereof, for the time being in force) and
subject to the provisions of the Articles of Association
of the Company, approval of the members be and is
hereby accorded to authorize the Board of Directors of
the Company to offer or invite subscriptions for secured

Notice (Continued)

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/ unsecured redeemable non-convertible debentures,
in one or more series / tranches, aggregating up to
`10,000 crore (Rupees ten thousand crore), on private
placement, on such terms and conditions as the Board
of Directors of the Company may, from time to time,
determine and consider proper and most beneficial to
the Company including as to when the said Debentures
be issued, the consideration for the issue, utilization of
the issue proceeds and all matters connected with or
incidental thereto;

regulations

15. To adopt new Articles of Association of the Company
containing
the
Companies Act, 2013 and in this regard to consider and
if thought fit, to pass, with or without modification(s),
the following resolution as a Special Resolution:

in conformity with

read with Companies

“RESOLVED THAT pursuant to the provisions of Section
14 and all other applicable provisions of the Companies
Act, 2013
(Incorporation)
Rules, 2014 (including any statutory modification(s)
or re-enactment thereof, for the time being in force),
the draft regulations contained in the Articles of
Association submitted to this meeting be and are
hereby approved and adopted in substitution, and to
the entire exclusion, of the regulations contained in the
existing Articles of Association of the Company;

By Order of the Board of Directors

K. Sethuraman
Group Company Secretary and
Chief Compliance Officer

May 12, 2014

Registered Office:
3rd Floor, Maker Chambers IV,
222 Nariman Point,
Mumbai 400 021, India
CIN: L17110MH1973PLC019786
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.

A person can act as a proxy on behalf of members
not exceeding fifty and holding in the aggregate
not more than ten percent of the total share capital
of the Company carrying voting rights. A member
holding more than ten percent of the total share
capital of the Company carrying voting rights may
appoint a single person as proxy and such person
shall not act as a proxy for any other person or
shareholder.

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

4. A Statement pursuant to Section 102(1) of the
Companies Act, 2013, relating to the Special Business
to be transacted at the Meeting is annexed hereto.

5. Members are requested to bring their attendance slip
along with their copy of Annual Report to the Meeting.

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

7. Relevant documents referred to in the accompanying
Notice and the Statement are open for inspection by
the members at the Registered Office of the Company
on all working days, except Saturdays, during business
hours up to the date of the Meeting.

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(a) The Company has notified closure of Register of
Members and Share Transfer Books from Tuesday,
May 20, 2014 to Friday, May 23, 2014 (both days
inclusive) for determining the names of members
eligible for dividend on Equity Shares, if declared
at the Meeting.

Rules, 2012, the Company has uploaded the details
of unpaid and unclaimed amounts lying with the
Company as on June 06, 2013 (date of last Annual
General Meeting) on the website of the Company
(www.ril.com), as also on the website of the Ministry of
Corporate Affairs.

(b) The dividend on Equity Shares, if declared at the
Meeting, will be credited / dispatched between
June 19, 2014 and June 25, 2014 to those members
whose names shall appear on the Company’s
Register of Members on May 19, 2014; 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.

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

10. Members holding shares

in electronic form are
requested to intimate immediately any change in
their address or bank mandates to their Depository
Participants with whom they are maintaining their
demat accounts. Members holding shares in physical
form are requested to advise any change in their
address or bank mandates
immediately to the
Company / Karvy.

11. Pursuant to the provisions of Section 205A(5) and
205C of the Companies Act, 1956, the Company has
transferred the unpaid or unclaimed dividends for the
financial years 1995-96 to 2005-06 and interim dividend
for the financial year 2006-07, from time to time on due
dates, 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)

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

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

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

15. Non-Resident Indian Members are requested to inform

Karvy, immediately of:

(a) Change in their residential status on return to India

for permanent settlement.

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

16. Members are advised to refer to the Shareholders’

Referencer provided in the Annual Report.

17. Members are requested to fill in and send the Feedback

Form provided in the Annual Report.

18. Members who have not registered their e-mail
addresses so far are requested to register their
e-mail address for receiving all communication
including Annual Report, Notices, Circulars, etc.
from the Company electronically.

Notice (Continued)

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STATEMENT PURSUANT TO SECTION 102(1)
OF THE COMPANIES ACT, 2013 (“the Act”)

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

Item No. 5

Shri Ramniklal H. Ambani retires at the ensuing Annual
General Meeting in terms of his appointment.

As per the provisions of Section 152(6)(e) of the Act, at the
Annual General Meeting at which a director retires, the
Company may fill up the vacancy by appointing the retiring
director or some other person thereto.

As per the provisions of Section 149(1) of the Act and
amended Clause 49 of the Listing Agreement, the Company
should have atleast one woman director.

Keeping in view the above legal requirements and in
deference to Company’s shareholders’ wishes, the Board
of Directors have proposed that Smt. Nita M. Ambani be
appointed as a Director of the Company.

Consequently,
is proposed to appoint Smt. Nita
M. Ambani to fill up the vacancy which would arise
consequent to the retirement of Shri Ramniklal H. Ambani
at the ensuing Annual General Meeting.

Shri Ramniklal H. Ambani has been a Director of the
Company since January 11, 1977. He held the position
of
joint Managing Director from March 1, 1979 to
February 28, 1994. Your Directors place on record the
valuable guidance, support and advice extended by
Shri Ramniklal H. Ambani during his tenure as Director.

The Company has received a notice in writing from a
member alongwith the deposit of requisite amount under
Section 160 of the Act proposing the candidature of
Smt. Nita M. Ambani for the office of Director of
the Company.

Smt. Nita M. Ambani is not disqualified from being
appointed as a Director in terms of Section 164 of the Act
and has given her consent to act as a Director. She holds
33,98,146 equity shares in the Company.

Brief resume of Smt. Nita M. Ambani

Smt. Nita M. Ambani, a Commerce Graduate from
Bombay University and Diploma holder in Early Childhood

led the

inspired and

Education and one who has studied Interior Design and
has a wealth of experience in it as well as Architecture,
has
implementation of many
path-breaking initiatives spanning education, health, rural
transformation, environmental protection and sports. Smt.
Ambani exemplified her commitment to people’s welfare
by leading the rescue and rehabilitation efforts in the 2001
Gujarat earthquake. In the aftermath of the Uttarakhand
calamity in 2013 she led Operation Mission Rahat to
provide immediate relief to the affected and strengthen the
infrastructure there including reconstructing three schools.
She was at the forefront of the ecological development of
RIL’s Jamnagar refinery site by implementing a greening
plan covering 3.2 million trees over 2000 acres, which
led to the annual rainfall in this area nearly doubling. She
designed and developed a world-class township for 5500
families in Jamnagar, setting new standards in quality of
life. For Reliance Retail, Smt. Ambani has made significant
contribution by conceptualizing and guiding its corporate
identity development across all formats.

Smt. Ambani is the Founder & Chairperson of Reliance
Foundation that focuses on five core areas – Rural
Transformation, Education, Health, Urban Renewal, and
Arts, Culture and Heritage. The Reliance Foundation BIJ
(Bharat-India Jodo), which aims to bridge the gap between
rural India and urban India by catalyzing sustainable
growth in the rural areas, has reached out to about 40,700
households in 460 villages, across 11 states. Smt. Ambani
provides leadership to 13 schools that educate over 15,000
students. She is the Founder & Chairperson of Dhirubhai
Ambani International School and in a short span of 11 years,
the school has emerged as a centre of excellence. In 2013,
Education World ranked it as India’s No. 1 International
School and consecutively for two years in 2012 and 2013,
Hindustan Times ranked it as the No. 1 School in Mumbai.

Smt. Ambani is the President of Sir HN Reliance Foundation
Hospital and Research Centre, the modernization of which
has just been completed. This 19–storeyed hospital has
state-of-the-art infrastructure facilities, as well as advanced
technologies and information systems, and its vision is to
provide ‘Affordable International Healthcare for All’. Based
on the environmentally sustainable strategies and practices
followed in the design, construction and operation of
this hospital, it will be one of the largest green hospital
buildings in India. The Reliance Foundation Drishti led by

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Smt. Ambani launched in 2012 a registered international
Braille newspaper in Hindi and it has now circulation in
19 countries. The Reliance Foundation Drishti is the largest
corporate driven cornea transplant drive in India and
since its launch in 2004 it has completed over 12,800
cornea transplants.

Smt. Ambani is the inspiring architect of the Mumbai
Indians, which won the Champions League in 2013 and 2011
and the IPL in 2013. She is also the guiding spirit behind
the Mumbai Indians’ “Education For All” initiative which has
impacted more than 27,000 children from underprivileged
background. Over the years, Smt. Ambani has received many
awards and honours. In 2011, Business Today magazine
placed Smt. Ambani as the Most Powerful Woman in the
Indian Business. In 2013, Sri Chandrasekharendra Saraswathi
Viswa Mahavidyalaya (SCSVMV University), Kanchipuram
conferred on her the Honourary Doctoral Degree (D. Litt) in
recognition of her contributions to the social sector.

Smt. Ambani is a Director of EIH Limited.

Smt. Nita M. Ambani may be deemed to be concerned or
interested, financially or otherwise, to the extent of the
aforesaid shareholding in respect of her appointment as
a Director. Shri Mukesh D. Ambani who is her relative and
the Managing Director of the Company and their other
relatives, to the extent of their shareholding interest in the
Company, may be deemed to be concerned or interested in
the appointment of Smt. Nita M. Ambani.

Save and except the above, none of the other Directors / Key
Managerial Personnel of the Company / their relatives are, in
any way, concerned or interested, financially or otherwise,
in the resolution set out at Item No.5 of the Notice.

The Board commends the Ordinary Resolution set out at
Item No.5 of the Notice for approval by the shareholders.

Item No. 6

The Board of Directors of the Company appointed, pursuant
to the provisions of Section 161(1) of the Act and the
Articles of Association of the Company, Shri Adil Zainulbhai
as an Additional Director of the Company with effect from
December 20, 2013.

The Company has received a notice in writing from a
member alongwith the deposit of requisite amount under
Section 160 of the Act proposing the candidature of
Shri Adil Zainulbhai for the office of Director of the Company.

Shri Adil Zainulbhai is not disqualified from being appointed
as a Director in terms of Section 164 of the Act and has given
his consent to act as a Director.

Section 149 of the Act inter alia stipulates the criteria of
independence should a company propose to appoint an
independent director on its Board. As per the said Section
149, an independent director can hold office for a term up
to 5 (five) consecutive years on the Board of a company and
he shall not be included in the total number of directors for
retirement by rotation.

The Company has received a declaration from Shri Adil
Zainulbhai that he meets with the criteria of independence
as prescribed both under sub-section (6) of Section 149
of the Act and under Clause 49 of the Listing Agreement.
Shri Adil Zainulbhai possesses appropriate skills, experience
and knowledge, inter alia, in the field of finance.

In the opinion of the Board, Shri Adil Zainulbhai fulfills the
conditions for his appointment as an Independent Director
as specified in the Act and the Listing Agreement. Shri Adil
Zainulbhai is independent of the management.

Brief resume of Shri Adil Zainulbhai, nature of his expertise in
specific functional areas and names of companies in which
he holds directorships and memberships / chairmanships of
Board Committees, shareholding and relationships between
directors inter-se as stipulated under Clause 49 of the
Listing Agreement with the Stock Exchanges, are provided
in the Corporate Governance Report forming part of the
Annual Report.

Keeping in view his vast expertise and knowledge, it will be
in the interest of the Company that Shri Adil Zainulbhai is
appointed as an Independent Director.

Copy of the draft letter for appointment of Shri Adil
Zainulbhai as an Independent Director setting out the terms
and conditions is available for inspection by members at the
Registered Office of the Company.

In terms of the provisions of Section 161(1) of the Act,
Shri Adil Zainulbhai would hold office up to the date of
the ensuing Annual General Meeting.

This Statement may also be regarded as a disclosure
under Clause 49 of the Listing Agreement with the
Stock Exchanges.

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Save and except Shri Adil Zainulbhai and his relatives, to the
extent of their shareholding interest, if any, in the Company,
none of the other Directors / Key Managerial Personnel of
the Company / their relatives are, in any way, concerned or
interested, financially or otherwise, in the resolution set out
at Item No. 6 of the Notice.

The Board commends the Ordinary Resolution set out at
Item No. 6 of the Notice for approval by the shareholders.

Item Nos. 7 and 8

Shri Yogendra P. Trivedi and Prof. Ashok Misra are
Independent Directors of the Company and have held the
positions as such for more than 5 (five) years.

The Securities and Exchange Board of
(SEBI)
has amended Clause 49 of the Listing Agreement
inter alia stipulating the conditions for the appointment
of independent directors by a listed company.

India

It is proposed to appoint Shri Yogendra P. Trivedi and
Prof. Ashok Misra as Independent Directors under Section
149 of the Act and Clause 49 of the Listing Agreement to
hold office for 3 (three) consecutive years for a term up to
the conclusion of the 43rd Annual General Meeting of the
Company in the calendar year 2017.

in which they hold
areas and names of companies
directorships and memberships / chairmanships of Board
Committees, shareholding and relationships between
directors inter-se as stipulated under Clause 49 of the
Listing Agreement with the Stock Exchanges, are provided
in the Corporate Governance Report forming part of the
Annual Report.

Copy of the draft letters for respective appointments
of Shri Yogendra P. Trivedi and Prof. Ashok Misra as
Independent Directors setting out the terms and conditions
are available for inspection by members at the Registered
Office of the Company.

This Statement may also be regarded as a disclosure
under Clause 49 of the Listing Agreement with the
Stock Exchanges.

Shri Yogendra P. Trivedi and Prof. Ashok Misra are interested
in the resolutions set out respectively at Item Nos. 7 and 8
of the Notice with regard to their respective appointments.

The relatives of Shri Yogendra P. Trivedi and Prof. Ashok
Misra may be deemed to be interested in the resolutions set
out respectively at Item Nos. 7 and 8 of the Notice, to the
extent of their shareholding interest, if any, in the Company.

Shri Yogendra P. Trivedi and Prof. Ashok Misra are not
disqualified from being appointed as Directors in terms of
Section 164 of the Act and have given their consent to act
as Directors.

The Company has received notices in writing from members
alongwith the deposit of requisite amount under Section
160 of the Act proposing the candidatures of each of
Shri Yogendra P. Trivedi and Prof. Ashok Misra for the office
of Directors of the Company.

received declarations

The Company has also
from
Shri Yogendra P. Trivedi and Prof. Ashok Misra that they
meet with the criteria of independence as prescribed both
under sub-section (6) of Section 149 of the Act and under
Clause 49 of the Listing Agreement.

In the opinion of the Board, Shri Yogendra P. Trivedi and
Prof. Ashok Misra fulfill the conditions for appointment
as Independent Directors as specified in the Act and the
Listing Agreement. Shri Yogendra P. Trivedi and Prof. Ashok
Misra are independent of the management.

Brief resume of Shri Yogendra P. Trivedi and Prof. Ashok
Misra, nature of their expertise in specific functional

The Board commends the Ordinary Resolutions set out
at Item Nos. 7 and 8 of the Notice for approval by the
shareholders.

Item Nos. 9 and 10

The Board of Directors of the Company (the ‘Board’), at
its meeting held on April 18, 2014 has, subject to the
approval of members, re-appointed Shri Mukesh D. Ambani
as Managing Director, for a period of 5 (five) years from
the expiry of his present term, which expired on April 18,
2014, at the remuneration recommended by the Human
Resources, Nomination and Remuneration Committee (the
‘HRNR Committee’) of the Board and approved by the Board.

Further, the Board at its meeting held on April 18, 2014 has,
subject to the approval of members, re-appointed Shri P.M.S.
Prasad as Whole-time Director, designated as Executive
Director, for a period of 5 (five) years from the expiry of his

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present term, which will expire on August 20, 2014, at the
remuneration recommended by the HRNR Committee of
the Board and approved by the Board.

It is proposed to seek the members’ approval for the
re-appointment of and
to
Shri Mukesh D. Ambani as Managing Director and
Shri P.M.S. Prasad as Whole-time Director, designated as
Executive Director, in terms of the applicable provisions
of the Act.

remuneration payable

Broad particulars of the terms of re-appointment of and
remuneration payable to Shri Mukesh D. Ambani and
Shri P.M.S. Prasad are as under:

(a) Salary, Perquisites and Allowances per
annum:

` in crore

Name

Shri Mukesh D. Ambani
Shri P.M.S. Prasad

Salary

4.16
0.86

Perquisites &
Allowances
0.60
1.37

The perquisites and allowances, as aforesaid, shall
(furnished or otherwise) or
include accommodation
house rent allowance in lieu thereof; house maintenance
allowance together with reimbursement of expenses and
/ or allowances for utilisation of gas, electricity, water,
furnishing and repairs and leave travel concession for self
and family including dependents. The said perquisites
and allowances shall be evaluated, wherever applicable,
as per the provisions of Income Tax Act, 1961 or any rules
thereunder or any statutory modification(s) or re-enactment
thereof; in the absence of any such rules, perquisites and
allowances shall be evaluated at actual cost.

contribution

to provident

fund,
The Company’s
superannuation or annuity fund, to the extent these singly
or together are not taxable under the Income Tax law,
gratuity payable and encashment of leave, as per the rules
of the Company and to the extent not taxable under the
Income Tax law, shall not be included for the purpose of
computation of the overall ceiling of remuneration.

Any increment in salary and perquisites and remuneration
by way of
linked
incentive payable to Shri Mukesh D. Ambani and

incentive / bonus / performance

Shri P.M.S. Prasad, as may be determined by the Board
and / or the HRNR Committee of the Board, shall not be
included for the purpose of computation of the aforesaid
ceiling of remuneration provided that such payment shall
be within the overall ceiling of remuneration referred to
in the resolution at Item No. 12 of the Notice. It is clarified
that employees stock options granted / to be granted to
Shri P.M.S. Prasad, from time to time, shall not be
considered as perquisites and are not to be included
for the purpose of computation of the overall ceiling of
remuneration.

(b) Remuneration based on net profits:

In addition to the salary, perquisites and allowances as
set out above, Shri Mukesh D. Ambani shall be entitled
to receive remuneration based on net profits. Such
remuneration based on net profits payable to him as also
to the other Whole-time Directors of the Company will be
determined by the Board and / or the HRNR Committee of
the Board for each financial year.

The overall remuneration payable every year to the
Managing Director and the Whole-time Directors by way
of salary, perquisites and allowances, incentive / bonus
/ performance linked incentive, remuneration based on
net profits, etc. shall not exceed in aggregate one percent
of the net profits of the Company as computed in the
manner laid down in Section 198 of the Act or any statutory
modification(s) or re-enactment thereof, as referred to in
the resolution at Item No. 12 of the Notice.

lodging
incurred for travelling, board and
Expenses
including for their respective spouses and attendant(s)
during business trips, any medical assistance provided
including for their respective family members; and provision
of cars for use on the Company’s business and telephone
expenses at residence shall be reimbursed at actuals and
not considered as perquisites.

(d) General:

(i) The Managing Director and the Whole-time Director
will perform their respective duties as such with regard
to all work of the Company and they will manage and
attend to such business and carry out the orders and
directions given by the Board from time to time in
all respects and conform to and comply with all such

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directions and regulations as may from time to time be
given and made by the Board and the functions of the
Whole-time Director will be under the overall authority
of the Managing Director.

(ii) The Managing Director and the Whole-time Director
shall act in accordance with the Articles of Association
of the Company and shall abide by the provisions
contained in Section 166 of the Act with regard to
duties of directors.

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

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

Shri Mukesh D. Ambani and Shri P.M.S. Prasad satisfy all
the conditions set out in Part-I of Schedule V to the Act as
(3) of
also conditions set out under sub-section
Section 196 of the Act for being eligible for their
re-appointment. They are not disqualified from being
appointed as Directors in terms of Section 164 of the Act.

The above may be treated as a written memorandum
setting out the terms of re-appointment of Shri Mukesh D.
Ambani and Shri P.M.S. Prasad under Section 190 of the Act.

Brief resume of Shri Mukesh D. Ambani and Shri P.M.S.
Prasad, 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 amongst directors inter-se
as stipulated under Clause 49 of Listing Agreement with the
Stock Exchanges, are provided in the Corporate Governance
Report forming part of the Annual Report.

Shri Mukesh D. Ambani and Shri P.M.S. Prasad are interested
in the resolutions set out respectively at Item Nos. 9
and 10 of the Notice, which pertain to their respective
re-appointments and remuneration payable to each of
them.

The relatives of Shri Mukesh D. Ambani and Shri P.M.S.
Prasad may be deemed to be interested in the resolutions
set out respectively at Item Nos. 9 and 10 of the Notice,
to the extent of their shareholding interest, if any, in the
Company.

The Board commends the Ordinary Resolutions set
out at Item Nos. 9 and 10 of the Notice for approval by
the shareholders.

Item Nos. 11 and 12

Under the Act, directors have been entrusted with
new responsibilities to make their role more objective
and purposeful. Keeping in view the enhanced role,
responsibilities and duties of directors, it is considered
appropriate that the remuneration payable to the Directors
by the Company should be commensurate with their
increased role, responsibilities and duties.

Section 197 of the Act provides for payment of remuneration
to the directors as under:

(a) Payment of remuneration to more than one managing
director / whole-time director shall not exceed 10% of
the net profits of the Company to all such directors; and

(b) Payment of remuneration to directors who are neither
managing directors nor whole-time directors (that is
non-executive directors) shall not exceed 1% of the net
profits of the Company.

The Board of Directors of the Company have, subject to
the approval of members of the Company, proposed to
remunerate the Directors as under:

(a) The non-executive directors (i.e. directors other than
the Managing Director and the Whole-time Directors)
may be paid remuneration not exceeding in aggregate
one percent of the net profits of the Company for each
financial year, as computed in the manner laid down in
Section 198 of the Act; and

(b) The executive directors (i.e. the Managing Director and
the Whole-time Directors), may be paid remuneration
not exceeding in aggregate one percent of the net
profits of the Company for each financial year, as
computed in the manner laid down in Section 198 of
the Act.

The said remuneration to non-executive directors shall be
in addition to the sitting fee payable to them for attending
meetings of the Board and Committees thereof.

Save and except all the non-executive directors of the
Company and their relatives, to the extent of their

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shareholding interest, if any, in the Company, none of the
other Directors / Key Managerial Personnel of the Company
/ their relatives are, in any way, concerned or interested,
financially or otherwise, in the resolution set out at
Item No. 11 of the Notice.

Save and except all the executive directors of the Company
and their relatives, to the extent of their shareholding
interest, if any, in the Company, none of the other Directors
/ Key Managerial Personnel of the Company / their relatives
are,
interested, financially
or otherwise, in the resolution set out at Item No. 12 of
the Notice.

in any way, concerned or

The Board commends the Special Resolution set out at Item
No. 11 and Ordinary Resolution set out at Item No. 12 of the
Notice for approval by the shareholders.

Item No. 13

The Board, on the recommendation of the Audit Committee,
has approved the appointment and remuneration of the
Cost Auditors to conduct the audit of the cost records of the
Company for the financial year ending March 31, 2015 as
per the following details:

Sr.
No.
1

Name of the Cost
Auditor
M/s. Diwanji &
Associates
M/s. K.G. Goyal &
Associates
M/s. V.J. Talati & Co.

M/s. Kiran J. Mehta &
Co.
Shri Suresh D. Shenoy

Industry

Chemicals

Chemicals and
Petroleum
Products
Textiles and
Chemicals
Oil & Gas and
Polyester
Polyester

M/s. V. Kumar &
Associates
M/s. Bandyopadhyaya
Bhaumik & Co.
M/s. Shome & Banerjee Oil & Gas and

Chemicals

M/s. Dilip M. Malkar
& Co.

10 M/s. Shome & Banerjee

(Lead Auditor)

Chemicals
Electricity and
Chemicals
Lead Audit
Fees

Audit fees
(` in lakhs)
8.09

3.31

8.82

3.62

8.42

4.73

1.58

6.82

4.05

5.50

In accordance with the provisions of Section 148 of the Act
read with the Companies (Audit and Auditors) Rules, 2014,
the remuneration payable to the Cost Auditors has to be
ratified by the shareholders of the Company.

Accordingly, consent of the members is sought for passing
an Ordinary Resolution as set out at Item No. 13 of the
Notice for ratification of the remuneration payable to the
Cost Auditors for the financial year ending March 31, 2015.

None of the Directors / Key Managerial Personnel of the
Company / their relatives are, in any way, concerned or
interested, financially or otherwise, in the resolution set out
at Item No. 13 of the Notice.

The Board commends the Ordinary Resolution set out at
Item No. 13 of the Notice for approval by the shareholders.

Item No. 14

Rule 14 of the Companies (Prospectus and Allotment of
Securities) Rules, 2014 prescribed, inter alia, under Section
42 of the Act deals with private placement of securities by a
company. Sub-rule (2) of the said Rule 14 states that in case
of an offer or invitation to subscribe for non-convertible
debentures on private placement, the company shall obtain
previous approval of its shareholders by means of a special
resolution only once in a year for all the offers or invitations
for such debentures during the year.

In order to augment long term resources for financing,
inter alia, the ongoing capital expenditure and
for
general corporate purposes, the Company may offer or
invite subscription for secured / unsecured redeemable
non-convertible debentures, in one or more series / tranches
on private placement, issuable / redeemable at par.

Accordingly, consent of the members is sought for passing
a Special Resolution as set out at Item No. 14 of the Notice.
This resolution enables the Board of Directors of the
Company to offer or invite subscription for non-convertible
debentures, as may be required by the Company, from
time to time for a year from the conclusion of this Annual
General Meeting.

The Board commends the Special Resolution set out at Item
No. 14 of the Notice for approval by the shareholders.

Notice (Continued)44

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Item No. 15

The Articles of Association (“AoA”) of the Company as
presently in force were replaced in January 1984 from what
they were when the Company was incorporated in 1973.
The existing AoA are based on the Companies Act, 1956 and
several regulations in the existing AoA contain references
to specific sections of the Companies Act, 1956 and some
regulations in the existing AoA are no longer in conformity
with the Act.

The Act is now largely in force. On September 12, 2013,
the Ministry of Corporate Affairs (“MCA”) had notified 98
Sections for implementation. Subsequently, on March 26,
2014, MCA notified most of the remaining Sections (barring
those provisions which require sanction / confirmation
of the National Company Law Tribunal (“Tribunal”) such
as variation of rights of holders of different classes of
shares (Section 48), reduction of share capital (Section 66),
compromises, arrangements and amalgamations (Chapter
XV), prevention of oppression and mismanagement
(Chapter XVI), revival and rehabilitation of sick companies
(Chapter XIX), winding up (Chapter XX) and certain
other provisions including, inter alia, relating to Investor
Education and Protection Fund (Section 125) and valuation
by registered valuers (Section 247). However, substantive
sections of the Act which deal with the general working of
companies stand notified.

With the coming into force of the Act several regulations
of the existing AoA of the Company require alteration
or deletions in several articles. Given this position, it is
considered expedient to wholly replace the existing AoA by
a new set of Articles.

The new AoA to be substituted in place of the existing
AoA are based on Table ‘F’ of the Act which sets out the
model articles of association for a company limited by
shares. Shareholder’s attention is invited to certain salient
provisions in the new draft AoA of the Company viz:

(c) new provisions regarding application of funds from
reserve accounts when amounts in reserve accounts
are to be capitalized;

(d) new provisions relating to appointment of chief
executive officer and chief financial officer, in addition
to manager and company secretary;

(e) existing articles have been streamlined and aligned

with the Act;

(f )

the statutory provisions of the Act which permit a
company to do some acts “if so authorized by its
articles” or provisions which require a company
in a prescribed manner “unless the
to do acts
articles otherwise provide” have been specifically
included; and

(g) provisions of the existing AoA which are already part of
statute in the Act have not been reproduced in the new
draft AoA as they would only lead to duplication – their
non-inclusion makes the new AoA crisp, concise and
clear and aids ease of reading and understanding.

The proposed new draft AoA is being uploaded on the
Company’s website for perusal by the shareholders.

None of the Directors / Key Managerial Personnel of the
Company / their relatives are, in any way, concerned or
interested, financially or otherwise, in the Special Resolution
set out at Item No. 15 of the Notice.

The Board commends the Special Resolution set out at Item
No. 15 of the Notice for approval by the shareholders.

By Order of the Board of Directors

K. Sethuraman
Group Company Secretary and
Chief Compliance Officer

May 12, 2014

(a) Company’s lien now extends also to bonuses declared
from time to time in respect of shares over which
lien exists;

(b) the nominee(s) of a deceased sole member are
recognized as having title to the deceased’s interest in
the shares;

Registered Office:
3rd Floor, Maker Chambers IV,
222 Nariman Point,
Mumbai 400 021, India
CIN: L17110MH1973PLC019786
e-mail: investor_relations@ril.com

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Management’s Discussion and Analysis

FORWARD-LOOKING STATEMENT
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 began its modest recovery in FY 2013-
14 with improved demand from OECD economies in the
second half of 2013. While the trend is expected to accelerate
in the current year, the positive outlook is subdued by the
potential consequences of ‘tapering’ of some of the US
Federal Reserve’s Quantitative Easing (QE) policies which
were undertaken in the aftermath of global financial crises.
Emerging markets like India faced multiple challenges:
capital outflows, intense exchange rate pressures and
volatile current account movement. A combination of

Record Revenues

` 4,46,339
crore

($ 74.5 billion)
highest ever consolidated
revenue

inflation, fiscal

imbalances, external sector
persistent
vulnerabilities and low investments resulted in sluggish
domestic demand growth. Fiscal and monetary initiatives
taken by the Indian government and the Reserve Bank of
India (RBI) helped stabilise financial market conditions, but
the domestic macro-economic environment still remains
challenging.

Economic recovery in the US and Europe had a positive
impact on oil demand, which increased by 1.3 million
barrels per day (MMBPD) in 2013. Crude oil prices fluctuated
extensively, driven by supply concerns in Libya, South
Sudan, West Africa and Iraq. Higher US shale oil production
helped offset the impact of these disruptions with Brent
crude oil prices averaging marginally lower at $ 108.7 per
barrel in 2013.

Operating in a volatile and uncertain environment, Reliance
Industries Limited (RIL) demonstrated the resilience of its
business model. RIL’s best-in-class refining configuration
and integrated petrochemical business enabled it to deliver
robust profits in FY 2013-14. The Company achieved:

zz Highest ever Revenue of ` 4,01,302 crore ($ 67.0 billion)

and Net profit of ` 21,984 crore ($ 3.7 billion)
zz Record Exports of ` 2,75,825 crore ($ 46.0 billion)
zz Record Refining business EBIT ` 13,220 crore

($ 2.2 billion)

zz Highest ever consolidated Revenue and Net profit of
` 4,46,339 crore ($ 74.5 billion) and ` 22,493 crore
($ 3.8 billion) respectively

zz Dividend of 95%, highest ever payout of ` 3,268 crore

($ 545 million)

Operationally, downstream segments continued to deliver
superior performance with operating rates of over 100%.
RIL processed 68.0 million tonnes (MMT) of crude oil at its
Jamnagar refinery complex. The KG-D6 (JV) facility produced
2.31 million barrels (MMBL) of crude and condensate and
178.3 billion cubic feet (BCF) of natural gas. RIL’s share
of gross JV production in US Shale was 154 BCFe in 2013
reflecting a growth of 52% over previous year.

The Company featured in the Fortune Global 500 list of
the world’s largest corporations for the tenth consecutive
year and was ranked 107th in terms of revenues and 128th in
terms of profits.

HIGHLIGHTS AND KEY EVENTS
RIL delivered strong results across its refining, petrochemicals
and international E&P businesses whilst continuing to grow
and invest in its energy value chain. In addition, substantial
progress was made in consumer-facing businesses - retail
and telecom.

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Refining – Record earnings
The refining business had a record performance during
the year delivering the highest ever annual contribution
to the Company’s EBIT. RIL’s refining margins at $ 8.1/bbl
significantly outperformed regional benchmarks as the
superior configuration of its refineries enabled it to benefit
from stable middle distillate margins and widening light-
heavy crude oil differentials.

Petrochemicals – New PFY plant
commissioned
Petrochemical business EBIT margins improved to 8.9%
from 8.3% in the previous year driving a 17.5% growth in
EBIT to ` 8,612 crore, with an improvement in polymer chain
margins.

Polyester Filament Yarn (PFY) plant at Silvassa was
commissioned successfully during FY 2013-14. Three
products Partially Oriented Yarn (POY), Fully Drawn Yarn
(FDY) and Polyester Textured Yarn (PTY) are being produced
at the site and all units are now fully operational. The new
PFY plant at Silvassa is one of the most automated and
environment friendly plants globally. It is co-located with
RIL’s existing texturizing facility at Silvassa eliminating the
packaging and logistics costs. The entire production from
this facility has been successfully placed in the domestic
and international markets. With the commissioning of
this ultra-modern PFY facility, RIL’s total PFY capacity,
including the facilities at Recron (wholly owned subsidiary
in Malaysia) is now in excess of 1.5 MMTPA. The polyester

Record Earnings

` 22,493
crore

($ 3.8 billion)
highest ever consolidated
net profit

New polyester facility at Silvassa

facility is the first amongst a series of projects which will add
significantly to RIL’s petrochemical volumes and enhance
cost-competitiveness.

Oil & Gas – New discoveries and growth in
Shale
The US shale gas business is now a material contributor
to RIL’s consolidated profits. The shale business delivered
revenues of $ 819 million and EBITDA of $ 616 million in
2013 on the back of a 52% growth in volumes to 154 BCFe.
Proved reserves of shale gas increased 43% to 2.66 TCFe.

In May 2013, RIL and its partners made a significant gas and
condensate discovery (MJ-1) in the KG-D6 block of Krishna
Godavari basin, off the eastern coast of India. This discovery
is expected to add to the hydrocarbon resources in the KG-
D6 block.

In August 2013, RIL and BP also announced a new gas
condensate discovery off India’s east coast in the Cauvery
basin. The discovery, in the deepwater block CY-D5, is
situated 62 kilometres from the coast in the Cauvery Basin
and is the second gas discovery in the block.

Retail business – India’s largest retail chain
Reliance Retail has become India’s largest retailer by
revenues. FY 2013-14 revenues grew 34% to ` 14,496 crore,
while EBITDA was at ` 363 crore. The retail business also
achieved two major milestones in FY 2013-14. It crossed
10 million square feet of retail space and broke even on a
net profit basis during the year. The Company enhanced its
presence across various format sectors. Reliance Retail now
operates 1,691 stores across 146 cities.

Reliance Jio – accelerated efforts to roll-out
4G services
Reliance Jio Infocomm Ltd. (RJIL) successfully acquired the
right to use spectrum in 14 key circles across India in the
1,800 MHz band in the spectrum auction conducted by
Department of Telecommunications (DoT), Government

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of India (GoI). RJIL will use this spectrum in conjunction
with its pan India 2,300 MHz spectrum acquired earlier
to provide seamless 4G services using FDD-LTE on 1,800
MHz and TDD-LTE on 2,300 MHz through an integrated
ecosystem. Following the acquisition, RJIL holds the largest
quantum of liberalised spectrum, with the longest residual
spectrum life.

Earlier in the year, RJIL received Unified License for all 22
Service Areas across India and became the first telecom
operator in the country to get a pan India license. The
license allows RJIL to offer all telecom services including
voice telephony under a single license. The Company has
migrated from its existing ISP license, along with Broadband
Wireless Access (BWA) spectrum, to the Unified License.

the year, Reliance Jio announced

telecom
During
infrastructure
sharing arrangements with Reliance
Communications, Bharti Airtel, Bharti Infratel and Viom
Networks. These agreements are aimed at avoiding
duplication of infrastructure, whilst also helping to preserve
capital and the environment. The infrastructure tie-ups will
enable the accelerated roll-out of RJIL’s state-of-the-art 4G
services.

Credit rating upgrade
S&P upgraded RIL’s international debt rating to BBB+ with a
‘negative’ outlook, which is now two notches above India’s
sovereign rating. The upgrade confirms RIL’s strong financial
metrics and liquidity position in the sector.

FINANCIAL PERFORMANCE AND REVIEW

RIL Financial Information – Standalone and Consolidated

Particulars

Revenue from operations
PBDIT
Cash profit
Net profit
Cash and marketable securities
Fixed assets
Gross debt

Standalone

FY 2013-14

` in crore
4,01,302
39,813
30,795
21, 984
88,190
1,51,122
89,968

$ in billion
67.0
6.6
5.1
3.7
14.7
25.2
15.0

FY 2012-13
` in crore
3,71,119
38,785
30,505
21,003
82,975
1,28,864
72,427

Consolidated

FY 2013-14

` in crore
4,46,339
43,800
33,980
22,493
90,637
2,32,911
1,38,761

$ in billion
74.5
7.3
5.7
3.8
15.1
38.9
23.2

FY 2012-13
` in crore
4,08,392
40,912
32,115
20,879
84,387
1,83,439
1,07,219

RIL delivered
improvements across key parameters.

superior financial performance with

growth in revenue was contributed by 8.6% increase in
price and 0.9% higher volumes

Revenue from operations of ` 4,01,302 crore ($ 67.0
billion), increased 8.1% on a y-o-y basis. Higher prices
accounted for 7.7% growth in revenue and increase in
volumes accounted for 0.4% growth in revenue. Revenues
were positively impacted by a sharp movement in exchange
rate, with a 10.4% depreciation of the Indian rupee vis-à-vis
the US dollar. Exports were higher by 15.3% at ` 2,75,825
crore ($ 46.0 billion) as against ` 2,39,266 crore in FY 2012-
13.

zz Refining business contributes 78% of revenues (including
inter-divisional transfer) and grew by 8.4% as compared
to previous year. The growth in revenue was driven by
8.1% increase in prices and 0.3% higher volumes

zz Oil & gas business revenue declined by 26.7% as
compared to previous year largely on account of 39.7%
decline in production

Operating profit before other income and depreciation
increased marginally from ` 30,787crore to ` 30,877 crore
($ 5.2 billion) in FY 2013-14 with higher contribution from
refining and petrochemical business, partly offset by lower
contribution from the upstream business. Higher cost of
crude oil and other raw materials in rupee terms resulted
in a 7.6% increase in cost of raw materials to ` 3,29,313
crore ($ 55.0 billion). Net operating margin was lower at
7.9% compared to 8.5% in the previous year due to reduced
contribution from oil & gas business.

zz Petrochemicals business accounted for 21% of revenues
and grew by 9.5% as compared to previous year. The

Other income was higher at ` 8,936 crore ($ 1.5 billion) as
against ` 7,998 crore in the previous year, largely on account

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of higher investible surplus. Other income includes interest
income of ` 6,472 crore and investment income of ` 2,348
crore.

Interest cost was higher at ` 3,206 crore ($ 535 million) as
against ` 3,036 crore in FY 2012-13. With majority of the
Company’s borrowing in foreign currency, sharp rupee
depreciation during the year negatively impacted interest
costs. This resulted in gross interest cost being higher at
` 3,907 crore ($ 652 million) as against ` 3,421 crore in
FY 2012-13. Interest capitalised was higher at ` 701 crore
($ 117 million) as against ` 385 crore last year, on account of
the large on-going capex programme.

Depreciation (including depletion and amortisation) was
lower by 7.1% at ` 8,789 crore ($ 1.5 billion) as against
` 9,465 crore in FY 2012-13. This was primarily due to
lower depletion charges, in-line with decline in upstream oil
& gas production.

Tax expenses for the year increased to ` 5,834 crore ($ 974
million) as compared to ` 5,281 crore in the previous year.

Profit after tax for the year was at ` 21,984 crore
($ 3.7 billion) an increase of 4.7% over ` 21,003 crore in
the previous year. Growth in net profit was led by higher
operating income from the refining and petrochemical
businesses, higher other income and lower depreciation.

The basic and diluted EPS for the year was ` 68.0 per share
as compared to ` 64.8 per share in FY 2012-13 registering a
growth of 4.9%.

The Board of Directors have recommended, subject to
approval of shareholders, a dividend of 95% amounting to
` 3,268 crore ($ 545 million), including dividend distribution
tax. This shall be the highest payout ever by RIL and balances
on-going capex commitments and shareholder interests.

Return on capital employed was at 11.5% and return on
equity was at 12.9%. Return ratios improved marginally
compared to the previous year with stronger performance
in refining and petrochemical businesses.

RIL’s consolidated revenue from operations for FY 2013-
14 was ` 4,46,339 crore ($ 74.5 billion), an increase of 9.3%
on a y-o-y basis. Consolidated profit after tax was at
` 22,493 crore ($ 3.8 billion), an increase of 7.7% against
` 20,879 crore in the previous year. EPS on consolidated
basis for the year was at ` 76.5 as against ` 70.7 in the
previous year. Key contributors to incremental consolidated
revenues and profit were the US shale operations and
domestic retail business.

Key Subsidiaries

(` in crore)

Revenue from
Operation

PBDIT Profit/(Loss)
after Tax

15,665

133

6,603

(119)

4,816

3,135

14,496

363

(158)

409

182

GAPCO*

Recron Malaysia
Sdn Bhd
Reliance Holding
USA Inc. (Shale)*
Reliance Retail
Ventures Limited*

* consolidated

RIL’s consolidated fixed assets stood at ` 2,32,911 crore
($ 38.9 billion) as of 31st March, 2014. This includes fixed
assets of ` 81,789 crore of its subsidiaries mainly in Reliance
Jio Infocomm, Reliance Holding USA and Reliance Retail.

RIL’s gross debt on a consolidated basis was at ` 1,38,761
crore ($ 23.2 billion). This includes standalone gross debt of
` 89,968 crore and subsidiary debt mainly raised by Reliance
Holding USA (` 32,122 crore), Reliance Jio Infocomm
(` 14,763 crore) and Recron Malaysia (` 1,592 crore).

Consolidated cash and marketable securities were at
` 90,637 crore ($ 15.1 billion), resulting in consolidated net
debt of ` 48,124 crore ($ 8.0 billion).

LIQUIDITY AND CAPITAL RESOURCE
RIL’s cash and marketable securities as at 31st March, 2014
amounted to ` 88,190 crore ($ 14.7 billion), as compared to
` 82,975 crore at the beginning of the year. RIL’s total debt
stood at ` 89,968 crore ($ 15.0 billion) up from ` 72,427 crore
last year. RIL’s gross debt to equity ratio including long-term
and short-term debt as on 31st March, 2014 stood at 0.45,
net debt to equity ratio was 0.01, and net gearing was 0.8%.

RIL moved from a net cash position at the beginning of
the year, to a marginal net debt level during the course of
the year as it drew down on funding to part finance the
expansion of its petrochemical capacities and setting up the
new gasification plant and refinery off-gas cracker over the
next two to three years.

The Company continued to efficiently manage its short-
term resources by placing them in liquid instruments and
highly rated securities, such as bank fixed deposits, CDs,
Government securities and corporate bonds. RIL raises
capital resources in line with its strategy of extending the
average maturity of its long term debt, at a competitive cost
and tying up financing at early stages of project execution.
RIL continuously undertakes
liability management to
reduce cost of debt and to diversify its liability mix.

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RIL’s financial discipline and prudence is reflected in the
strong credit ratings ascribed by rating agencies.

In May 2013, S&P upgraded RIL’s international debt rating
to BBB+ with a ‘negative’ outlook which is two notches
India’s sovereign rating. S&P’s rating upgrade
above
took cognizance of RIL’s plans to invest significantly in
growing its businesses over the next 3 years. S&P believes
that the expansion program would further strengthen
RIL’s competitive position and profitability. The upgrade
confirms RIL’s strong financial metrics and liquidity position
in the sector.

Moody’s has rated RIL’s international debt at investment
grade Baa2, with ‘positive’ outlook which is one 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.
Similarly, RIL’s short-term debt is rated P1+ by CRISIL, the
highest credit rating assigned in this category.

Superior Financial Strength

Investment
grade

ratings from S&P and
Moody’s

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

In continuation of the fund raising programme initiated
in FY 2012-13, RIL tied up facilities of around $ 3.15 billion
equivalent to part finance the petrochemical expansions
and petcoke gasification projects through
landmark
transactions.

During FY 2013-14, RIL signed $ 500 million equivalent
facilities backed by two Export Credit Agencies (ECAs)
which included $ 300 million facility from Export Credits
Guarantee Department (ECGD), the UK ECA, and $ 200
million equivalent facility from The Compagnie Française
d’Assurance pour le Commerce Extérieur (COFACE), the
French ECA. These facilities will be drawn over the next
two to three years as the projects progress and will have
a door-to-door tenor of over 10 to 13 years. These deals
were accorded ‘Better than Sovereign’ rating by both the
ECAs. This is the first time these agencies accorded such a
rating to any corporate in their history, re-emphasising RIL’s
creditworthiness in international debt markets.

For the ECA deals, RIL has received the ‘TFR Deals of the Year’
award for 2013 from Trade and Forfaiting Review, ‘Deals of
the Year 2013’ award from Trade Finance Magazine and ‘GTR
Best Deal of 2013’ award from Global Trade Review and ‘TFX
Perfect 10 Deals of the Year’ award for 2013 from Trade and
Export Finance.

The syndicated loan deal of $ 1.75 billion equivalent
completed during the year represented the largest bank
group in Asia in the last two years. The deal enjoyed a
strong participation of 30 international banks, despite
turbulent market conditions. This unsecured syndicated
loan has a tenor in excess of five years and has one of the
longest tenors for a senior unsecured corporate loan in Asia
this year.

Additionally, loans aggregating $ 900 million were raised
through a mix of club and bilateral loans during a period
of extreme volatility in INR/USD currency with the INR
witnessing sharp depreciation. One of the loans (8.75 years
tenor) probably has the longest tenor for a senior unsecured
corporate loan in Asia in 2013.

During FY 2013-14, Reliance Holding USA Inc. (RHUSA)
through its wholly owned subsidiary tied up five year
revolving reserve based lending facility with a maximum
commitment of $ 300 million to finance the capital
expenditure. With this, the total reserve based lending
commitments of RHUSA across its subsidiaries aggregates
to a maximum of $ 1.3 billion. In addition to this, another
wholly owned subsidiary of RHUSA executed a five year
unsecured term loan facility with a maximum commitment
of $ 350 million.

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indicators from USA demonstrated positive sentiments
and the country posted strong GDP numbers across the
quarters. The EU zone, which had witnessed a recession in
2012, recovered in 2013-14. Emerging markets in contrast
struggled to sustain their high growth rates and deal with
inflationary pressures. China in particular looks to have
moved to a more moderate growth path.

Against this mildly positive economic backdrop, oil demand
grew by 1.3 MMBPD to 91.4 MMBPD. Non-OECD countries
led by China contributed to almost the entire oil demand
growth. Relatively sluggish economic activity and increasing
energy efficiency has led to a decline in absolute demand in
developed economies.

Oil supply
On the supply side, overall supply increased by 0.6 MMBPD,
led by Non-OPEC supply which grew by 1.3 MMBPD during
2013 reducing the call on OPEC.

Geo-political tension and social unrest in several major oil
exporting countries in the Middle East and Africa impacted
oil supplies. As a result, there were periods when over 3
MMBPD were removed from the market.

The US shale oil revolution has led to a surge in the North
American oil production, contributing significantly to the
OECD oil supplies. In 2013, US oil production (including
NGLs) increased by 1 MMBPD to 10.3 MMBPD, contributing
to fundamental changes in global oil trade flows. The
increased US oil production is replacing Latin American and
West African crude imports into US, resulting in increased
flows to Asia.

Oil prices
Countervailing factors impacted oil markets in 2013. The
geo-political environment continued to remain volatile
leading to supply disruptions. Despite reduced call on
OPEC, geo-political concerns on supply outlook together
with actual disruptions, kept Brent oil prices in the $ 90 to
$ 115 per barrel range that has been established over recent
years.

crude

de-bottlenecking

Some
transportation
infrastructure, including huge growth in rail facilities, partly
helped US crude prices recover versus Brent and Dubai.
However, WTI is likely to continue to trade at a discount to
global benchmarks due to infrastructure and regulatory
constraints. In FY 2013-14, Brent to WTI crude differential
narrowed to $ 8.6/bbl as compared to $ 18.1/bbl in
FY 2012-13.

Refining margins
The dominant impact on global margins and trade flows
was the increase in US product exports, mainly as a result
of higher operating rates, ramp-up of new facilities and

Superior Credit Profile

Best
Borrower

of the Year 2013
in Asia – Finance Asia

During FY 2013-14, Reliance Jio Infocomm Limited raised
financing from banks and other institutions aggregating
over ` 3,700 crore to part finance the capital expenditure.

RIL has also been awarded the ‘Best Borrower of the Year
2013 in Asia’ by Finance Asia and ‘Best Issuer of the Year
2013 in Asia’ by The Asset, two of Asia’s leading financial
publications.

97.0% of long-term debt and 62.3% of RIL’s short-term debt
were denominated in foreign currencies. The proportion of
long-term debt to total debt is 74.7%.

Business Performance
REFINING AND MARKETING
Market environment and outlook – Global
Crude oil
Oil markets broadly followed trends of recent years and
prices remained within the range established therein.

New refining capacity in the Middle East, Asia and increased
utilisation of the resurgent US industry led to a weaker
refining margin environment. However, the flexibility and
capability in the Reliance system in terms of feedstock run,
product flexibility and efficient product placement, coupled
with a weaker rupee allowed R&M to deliver a record
performance in FY 2013-14.

Global economy and oil demand
The macro-economic environment began to show signs
of recovery, led by the OECD countries. Major economic

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addition of some simple refining capacity. New capacity
also came on-stream in China and in the Middle East – with
the Jubail refinery ramping up production during the year.

On the positive side - impact of material closures in the
Atlantic region last year, high incidences of unplanned
outages and delayed commissioning of refineries, provided
some support to margins. Demand for refined products was
also higher than estimates at the beginning of the year. On
an annualised basis margins were weaker as compared to
the previous year.

The year witnessed significant divergence in regional
margins. US refineries benefitted from low energy and
cheap feedstock prices. While the narrowing of Brent-
WTI differential had a negative impact, absolute refining
margins in the US continue to be at high levels. Growth in
demand emanated largely from the Eastern hemisphere,
providing support to Asian margins, including Reliance.
European refining margins witnessed dual pressure on
account of increased import availability from the US and ME
region and weak local demand. Continued margin pressure
on European refining system could lead to further capacity
rationalisation.

RIL refining margins outperformed Singapore benchmark,
widening the premium over the benchmark to $ 2.2/bbl
during FY 2013-14. RIL benefited from its ability to run
advantaged feedstock, flexibility to upgrade low value
products and the capacity to switch production to the most
valuable product as the market evolved.

Product Cracks

1Q 2Q 3Q 4Q

-7.1 -5.8 -3.0 -1.5
9.2 14.6
14.6 12.4
15.3 17.0 17.3 17.0
16.8 17.3 17.7 17.8
-3.6 -10.7 -10.4 -8.5
6.2
6.7

6.0

5.4

FY
2013-14
-4.3
12.7
16.7
17.4
-8.3
5.9

FY
2012-13
-5.0
15.4
18.9
19.5
-5.0
7.7

8.4
5.7

7.7
1.8

7.6
3.8

9.3
4.2

8.1
3.9

9.2
6.9

16.2

6.1

8.5 11.7

10.6

23.1

Asian Cracks -
$/bbl
Naphtha
Gasoline
Jet
Gasoil
Fuel Oil
Singapore
Complex GRM
RIL GRM
Rotterdam
(Brent) GRM
USGC (WTI)
GRM

Source : Reuters

Middle distillates
Middle distillates (diesel and jet/kerosene) continued to
remain the key contributors to complex refining margins.
In 2013, middle distillate demand grew by over 450 KBD,

Port facility at Jamnagar

contributing almost 35% of global oil demand growth. In
line with seasonal patterns, gasoil cracks started low in
the first quarter but gained strength through the year as
demand picked up. Demand for gasoil remained supported
by growing industrial activity and a colder-than-expected
winter in the US. Subsidies on diesel in most of the emerging
Asian economies continue to support strong demand
growth.

Jet witnessed a low margin environment throughout the
year amid ample supplies and warmer weather in North
Asia, where kerosene is used for heating.

Indian diesel demand shrank by 1%, the first decline in over
a decade. This was partly in response to the slowdown in
industrial activity and in part due to the removal of subsidies
to the commercial sector.

Light distillates
Light ends witnessed a mixed year. Gasoline cracks remained
subdued through the major part of the year, except the US
driving season and the last quarter of the year. The cracks
averaged lower at $ 12.7/bbl during the year as compared
to $ 15.4/bbl in the previous year. Naphtha cracks held
relatively stable during the first half of the FY 2013-14 amid
an increase in naphtha demand from Asian petrochemical
sector while the overall naphtha supply swelled. Cracks
improved during the second half of the year on back of firm
petrochemical demand.

Freezing temperatures across US provided significant
support to light-ends during the winter period. Material
increase in use of propane for heating in US resulted in
higher LPG prices globally. This supported naphtha prices
as an alternate feedstock for crackers.

Fuel oil
Fuel Oil (FO) cracks were strong in the first quarter of FY
2013-14, due to restricted supply of blending components
to produce on-spec marine fuels. Cracks were also
supported by reduction in Russian exports of Straight Run
Fuel Oil due to the start of new upgrading capacities. On

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close to 1.4 MMBPD of crude, is among the largest and
most complex refining assets in the world. It is composed
of two refinery systems, one of which caters to domestic
and export demand while the other is dedicated to the
export market. The configuration of the refinery gives RIL
the technical ability to process almost all grades of crude
oil produced and meet the increasingly differentiated and
more demanding product specifications.

Sourcing the most advantageous crude
The crude and supply trading teams select a crude diet
using processes that are optimised against the tremendous
flexibility of the system, and then source the most
advantageous crudes across the globe. To date, the refinery
has processed 128 different grades of crudes in addition to
other semi-refined feedstock from simple refineries.

Flexibility to alter the products
The configuration of RIL’s assets also allows for tremendous
amount of flexibility to alter the product slate and thus adapt
to the changing market dynamics. The facilities at Jamnagar
enable RIL to produce products capable of meeting the most
stringent environmental norms, even after processing high
sulphur feedstock. This gives RIL a competitive advantage
in catering to the needs of many markets across the world.
This year Jamnagar produced seven new product grades,
catering to specific needs, helping RIL penetrate into high
value niche markets. Significant flexibility to increase the
production by a scale of 2-3 times in Jet and Alkylate and
grade switching capabilities in gasoil help RIL capture
market opportunities.

Integrated supply and trading
RIL’s integrated Supply and Trading team works with the
refinery on a real time basis to optimise the asset utilisation
and place RIL’s products most profitably across the globe.
RIL’s global footprint includes trading offices in Houston,
London, Singapore and Mumbai which gives it a global
coverage for crude supplies and market outlets. The product
trading team identifies the market shorts and collectively
places the products in the highest netback regions. Tankage

Aerial view of refinery at Jamnagar

the demand side, teakettle refineries reduced throughput
and used crude as feedstock due to poor margins, capping
further gains. However, FO cracks collapsed in the second
half of the year, on account of weak bunker demand in
Asia, higher stocks and below average Japanese power
sector demand. Cracks improved marginally in January due
to seasonal winter demand, lower inflows from west and
improved demand as feedstock from teakettle refineries
ahead of Lunar New Year. Subsequently, cracks have drifted
lower on flat bunker demand.

RIL is able to upgrade its heavy liquid products into higher
value products, and largely tends to benefit in weakness of
fuel oil as it lowers the prices of heavy crude oil.

Crude differentials
A key determinant of complex refining margins has been
the differential between light and heavy crudes. Arab
Light – Heavy crude differential widened to $ 4.2/bbl in
FY 2013-14 as compared to $ 3.6/bbl in the previous year.
Heavier crudes, particularly from Latin American sources
were also available at significantly higher differentials
during FY 2013-14 with incremental light oil supply in
North America. While new refineries that are getting built
are increasingly complex and require heavy crudes as
feedstock, crude production increase is more on the lighter
side over the next few years supporting wider Light-Heavy
differentials in the coming years.

New refinery additions and expansions in existing refineries
were partly offset by closures in the US, Europe and Japan,
leading to a net capacity addition of about 0.9 MMBPD; oil
demand growth was higher at 1.3 MMBPD, with a reversal
of the declining trend in OECD demand witnessed over the
last three years.

These refinery closures also resulted in improved average
refinery utilisation rates in North America (84.8% in 2013
compared to 84.1% in 2012). However, in Europe, utilisation
rates (76.4% compared to 79.8% in 2012) decreased due to
weak margins. Asian operating rates were at 85.4%.

Refining business and competitive position
RIL’s core business model for R&M segment is to acquire the
most advantageous crudes from across the world, process
them optimally using its complex refining assets and place
high quality products in the most profitable markets using
its supply chain/logistics infrastructure. Along with this, RIL
manages operational, financial (business) and regulatory
risks efficiently, which helps outperformance over
its
regional peers.

Scale and complexity
The scale and complexity of RIL’s assets strongly support its
business model. The Jamnagar supersite, which processes

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RIL’s HSE systems are aligned with recognised management
systems and global best practices. Most manufacturing
units have been awarded ISO 14001:2004 and OHSAS
18001:2007 certifications.

Operational excellence and continuous
improvement
RIL implements a culture of continuous improvement,
sponsored by top management and supported by
technology excellence and innovation. Centres of Excellence
(CoE) ensure that RIL adopts the latest and best industry
standards, processes, tools and applications available.
The adoption of such global standards and processes
has enabled RIL’s refinery utilisation rates to consistently
surpass global averages and maintain operating costs
per barrel which are amongst the lowest in the world. In
pursuit of achieving excellence in operations and energy
conservation, several profitability improvement and energy
conservation projects are identified and executed on an
on-going basis.

Operations and Financial performance

Financial Performance

` in crore

FY 2013-14

FY 2012-13

% change

Revenues

3,61,970

3,33,774

EBIT

EBIT (%)

13,220

12,788

3.7%

3.8%

8.4%

3.4%

Refining Margins- Global Benchmarks vs RIL

)
l
b
b
/
$
(
n
g
r
a
M
g
n
n
fi
e
R
s
s
o
r
G

30
25
20
15
10
5
–
-5

1Q
4Q
FY13 FY13 FY13 FY13 FY14 FY14 FY14 FY14

USGC
RIL
Rotterdam

Mediterranean
Singapore

Refining Performance

` 13,220
crore

highest ever Refining
segment EBIT

at the major trading hubs allows RIL to move its selling
point closer to market, helping to serve customers better,
benefit from the seasonality capturing the upside from the
resulting market structure and taking advantage of prompt
local opportunities.

World class logistics infrastructure
Jamnagar refineries are supported by world-class logistics
infrastructure, including a marine facility, giving access to
the world’s largest crude and product vessels. This allows
berthing of ships ranging from small chemical carriers
to VLCCs. On the refined product side, the ability to load
LR2 sized vessels allows RIL to optimise on the freight for
delivery to its storage locations, helping maintain cost
competitiveness at distant locations.

Asset optimisation model
In addition to installing world-class assets, RIL excels in
managing and utilising its assets most efficiently to generate
greater value for its shareholders. RIL’s asset optimisation
model is based on the principles of Safety, Operational
Excellence and Continuous Improvement.

Safety focus
RIL’s foremost priority is safe and reliable operations.
RIL extensively utilises DuPont’s safety processes and
programmes, the recognised leader in the industry. A
better safety performance, not only enhances life and
effectiveness of human and capital assets, but also improves
their availability and reduces losses due to safety incidents.

Management’s Discussion and Analysis (Continued)

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R&M segment had a record year with the highest ever
annual EBIT of ` 13,220 crore. Gross Refining Margin (GRM)
averaging $ 8.1/bbl, as against $ 9.2/bbl in FY 2012-13. EBIT
increased on account of stable middle distillate cracks,
improved light-heavy crude differentials and favourable
currency movement. Though refining margins remained
weaker compared to last year, RIL performed significantly
better than the benchmark Singapore GRM which averaged
at $ 5.9/bbl during the year. RIL refineries processed 68 MMT
of crude oil during the year, at an operating rate of 110%. It
processed 10 new crude grades during the year, taking the
total number of crudes processed to 128.

Total exports of refined products reached $ 41.1 billion
during the year compared to $ 39.3 billion for the previous
year.

Overall, effective utilisation of secondary processing
units, innovative approach to optimise logistics cost and
utilisation, production flexibility to swing to higher net-back
products and sourcing of best value feed stock enabled RIL
to sustain its performance even in a challenging margin
environment.

R&M Investment

Petcoke
Gasification

project to deliver a step
change reduction in
energy cost

Retail distribution network
GAPCO group owns and operates large storage facilities
and has a retail distribution network in Tanzania, Uganda,
Rwanda and Kenya. It has significantly improved its standing
in the East African market and has emerged as a key supplier
to the neighbouring countries. During 2013, 3.2 million Kilo
Litres (mkLs) of petroleum products were sold, up from 1.74
mkLs in 2012.

On the domestic retail side, nearly 300 retail outlets
are operational, mainly in Southern and Western India.
There have been some positive signs in the market, with
step-wise price deregulation, but resuming operations in all
geographies and scaling up of sales will be possible after
complete implementation of market determined prices for
gasoline and diesel.

Capex and growth plans
Petcoke gasification project – utilising the “bottom
of barrel”
One of RIL’s key strategies, going forward, is setting up
the petcoke 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 deliver a step change reduction in energy costs,
substituting imported LNG with Coke /Coal.

The project is based on the “E-gas technology” (owned by
CB&I) and is currently in the execution stage. Engineering
and Procurement activities are nearing completion and
construction activities are progressing rapidly. Delivery of
key units has started at the site. Construction of the petcoke
storage dome in Gasification complex is in the final stages
of completion. RIL is aiming for a phased start-up of the
gasifiers. Manpower resources and construction plans are
aligned to execute the project on schedule.

The coke gasification project is designed to run on both
coal and petcoke, giving RIL the flexibility to optimise based
on relative economics. RIL is looking for various sourcing
options for petcoke from the refiners in India, Middle East
and North America. RIL is also evaluating coal import
options from key coal exporting countries – Australia,
Indonesia and South Africa.

The gasification assets, delivered with Reliance’s project
execution capabilities, are expected to enhance its refining
profitability significantly. This project is expected to make
RIL’s energy costs competitive with the best in the industry.

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PETROCHEMICALS
RIL is one of the most integrated petrochemicals producers
globally, with operations ranging from the production of
feedstock and intermediates to end products in both the
polyester and polymer chain. This vertical integration from
refining to petrochemical end products imparts RIL with
the fundamental strength of feedstock safety, scalability,
product diversification and economies of scale.

RIL has a balanced portfolio of naphtha and gas based
crackers, along with matching downstream capacities. RIL’s
petrochemical products portfolio includes polymers (PE, PP,
PVC), fibre intermediates (PX, PTA, MEG), polyester products
(PFY, PSF, PET), elastomers and solvents.

The combination of world-scale capacity and deep
integration has a positive
impact on the Company’s
operating margins and reduces exposure to the cyclicality
of markets and raw material prices. The Company believes
that this strategy is also important in maintaining domestic
market leadership in its major product lines and is a source
of competitive advantage.

RIL constantly focuses on technology, cost improvements
and safe practices, whilst continuing to invest in high
growth opportunities.

Market Environment
Olefins and Polymers
Ethylene is the base raw material used in manufacturing
of polymers like Polyethylene (PE), Polyvinyl chloride (PVC)
and polystyrene, and chemicals like ethylene oxide and
ethylene glycols.

The development of US shale gas reserves has had a
profound impact on the global chemical industry. With
prices for ethane, the primary US ethylene feedstock,
down 60% versus its historical averages, the US is today
the second lowest cost region in the world to produce
chemicals (after the Middle East). Today, 69% of US ethylene
is produced from ethane versus 17% from propane and 6%
from naphtha. In contrast, Europe and Asia, which have
limited amounts of natural gas, developed as crude oil
based chemical producing regions. Naphtha, a derivative of
crude oil, is the primary ethylene feedstock in these regions.

Global ethylene operating rates improved marginally to
85.8% in 2013, higher than the five-year average of 85.4%.
Ethylene prices and margins increased globally, supported
by stable crude oil and naphtha prices, along with tight
supply due to regional cracker turnarounds. Asian ethylene
margins improved during the year led by firm PE demand,
despite high ethylene prices.

Global Ethylene Supply/Demand 2013

Production by Feedstock
Production : 131.7 MMT

Demand by End Use
Demand : 133.1 MMT

Naphtha

Ethane

Propane

Butane

Others

Source: IHS

47% PE

36% Ethylene Oxide

9% EDC

4% EBZ

4% Others

60%

15%

10%

Global incremental ethylene supplies are likely to be
constrained in 2014 due to project delays. The current
expectation for incremental capacities in 2014 is 37% lower
as compared to early 2013 estimates of 7.3 MMTPA. Major
project delays are largely in the North East Asian region. The
global ethylene cycle is likely to stay strong over the next
3-4 years with the next major wave of capacity addition
(US shale gas based) expected from 2017-18. This could
be further delayed due to engineering and construction
bottlenecks. Even with key pieces of equipment likely to
be built offshore, availability of skilled labour is likely to
be a limiting factor for the rate and cost at which new US
ethylene capacity comes on-line.

The global thermoplastics market in 2013 was estimated at
208 MMT. PE accounted for 39%, Polypropylene (PP) 27%
and PVC 19%, respectively, of the global thermoplastic
market. Demand for these polymers (PE, PP, PVC) grew
by 3.4% during 2013 driven by North America, China and
marginal improvement in European market. The demand
for these polymer products is likely to grow at CAGR of
approximately 4% over the next five year period.

Global Polyolefin and PVC Demand

(In MMT)

2013

2012

% Growth

PVC

Ethylene

Propylene

Source: IHS

133

129

Management’s Discussion and Analysis (Continued)56

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in steady prices during the year, and supported higher
margins of $ 221/MT against $ 171/MT in the previous year.

Polyester markets are expected to witness capacity growth
in excess of demand growth. These excess capacities are
likely to impact operating rates and profitability. Polyester
producers having presence in end products and fibre
intermediates are relatively better placed due to integrated
chain economics.

Across western economies demand improved, but it was
still marked by discretionary buying and cautious optimism.
Asia’s share in global consumption stands at 37%. China
accounts for 30% of the global capacity and 55% of the
global capacity growth of 2.8 MMT in 2013.

Recycled PET usage growth almost halved with only North
America witnessing stable growth. PET markets are likely to
witness higher capacity growth over demand, which may
result in softening of deltas. The key consuming sector –
beverages – is sensitive to discretionary spending trends
and weather, which could have an adverse impact on
consumption.

South East Asia Polyester Deltas

($/MT)
POY-PTA-MEG
PSF-PTA-MEG
PET-PTA-MEG
PX-Naphtha
PTA-PX
MEG-Naphtha
Source: Platts, ICIS

FY 2013-14
183
132
221
514
98
432

FY 2012-13
205
133
171
615
106
458

Fibre intermediates: During the year, overcapacity in the
fibre intermediate markets led to a decline in prices and
margins.

Paraxylene (PX) market was dislocated due to excess supply
and difference between contract and spot prices. As a result,
contract prices remained unsettled several times during

Polyester storage at Hazira

South East Asia Polymers Deltas

($/MT)

HDPE-Naphtha

PP-Propylene

PVC-EDC-Naphtha
Source: Platts

FY 2013-14

FY 2012-13

595

150

468

482

134

535

PP deltas improved (from $ 134/MT to $ 150/MT) during
FY 2013-14. Year-average deltas were positively impacted
as higher propylene inventories in the region and lower
downstream activity in China which kept feedstock prices
lower. In 2014, propylene supply is expected to lengthen in
Asia as new crackers in China and Taiwan start production.

HDPE deltas improved significantly during the year from
$ 482/MT to $ 595/MT. Deltas were strong due to firm
product prices with limited supply and range bound
naphtha prices. Ethylene prices were higher due to lower
supply from South East Asia on account of heavy cracker
maintenance schedule. Additionally, olefin shipments
from Middle East were limited due to port congestion and
start-up of downstream polymer units. China’s drive for
self-sufficiency continues to reshape Asia’s olefin trade and
margin environment with increased regional availability.
However, the global ethylene cycle continues to be poised
favourably with operating rates likely to remain high to
meet demand growth.

PVC deltas declined (from $ 535/MT to $ 468/MT) as there
was substantial rise in EDC prices due to higher ethylene
prices on account of higher feedstock cost and tight supply.
EDC prices and supply were also affected by lower chlorine
availability in the US market (co-product chlorine was
impacted due to weak caustic markets) amidst rising US
PVC demand. Globally, improvement in the US construction
sector is likely to enhance manufacturing activity and
demand for PVC-based products like profiles, among others.

Polyester and Fibre Intermediates
Polyester markets faced challenges during the year as
capacity growth outpaced demand growth.

Despite price declines of 6-7%, downstream polyester deltas
were stable to marginally lower than last year on account
of lower feedstock costs. Higher cotton price (up 6% y-o-y)
was also a major factor during the year, as it led to widening
of the price differential in favour of polyester.

Amongst the downstream polyester products, PET had a
relatively better year. The global overcapacity has forced a
few large producers to shut operations at some sites in USA
and Europe. Heavy rationalisation of operations resulted

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the year. The margins declined from the previous year as
naphtha prices remained firm, and acceptability of PX prices
by the strained PTA sector remained weak, amidst divergent
views about the impact of the impending new capacity
start-up. Large-scale PX capacity expansions are planned
for 2014. However many of the new capacities are based
on high cost feedstock such as heavy condensate, heavy
naphtha and mixed xylenes which would impair operations,
leaving primarily the integrated and the low cost based
operations with a competitive advantage.

High industry capacity impacted prices and margins for PTA,
which for most part of the year remained below break-even
levels, exerting severe pressure on operating economics.
PTA capacity growth is expected to continue to surpass
demand growth, albeit at a slower rate. Plant operations
not falling under the top two quartiles of cost curve would
continue to witness rationalisation, either as shut downs or
lower operating rates. Operating rates are likely to remain
low; however, margins could improve as increased supply
of PX will ease price pressure.

MEG markets were balanced with a capacity growth of 1.5
MMT against a demand growth of 1.2 MMT in 2013. Average
prices and margins remained stable and operating rates
were slightly higher at 82%. Though markets remained
balanced, it was subject to speculation and polyester buyers
resorted to holding lower stocks along with co-feedstock
PTA. Chinese port stocks increased steadily during the
year, reaching around 1 MMT at year end. This increase
pressurised margins, pulling them below the five-year
average. MEG markets are expected to maintain a stable
operating rate.

Chemicals and Elastomers
During the year, the global chemical business scenario was
mixed with high feedstock prices and low demand growth;
but with low capacity addition.

In the elastomers segment globally, the auto industry is
going through a difficult period, which is impacting PBR,
SBR and Butyl rubber consumption. With Asia’s subdued
demand and major capacity additions, margins remained
under pressure. In FY 2013-14, the Indian auto sector
contracted for the first time in the last decade, which
impacted, the primary consumer of synthetic rubbers.

Benzene: Globally, benzene markets remained tight,
supporting margins above their five-year average level.
Margins for the year averaged at $ 400/MT, around 9%
higher y-o-y. Although margins remained healthy, global
operating rates were around 66% with a production of 44
MMT during 2013. Raw material shortage in the US and
Europe and poor refinery economics impacted benzene

MEG plant at Hazira

production. The demand from styrene sector (accounting
for 50% of Benzene demand) remained firm. Asian operating
rates remained healthy, and the region was a major exporter
to other markets. Domestic consumption was almost flat as
no new major consumption unit was commissioned.

Benzene markets are likely to witness a capacity growth
of 2.5 MMTPA, mostly in Asia and US benzene demand is
expected to recover in alignment with its economic revival.
Increasing use of light feedstock (shale gas) is likely to limit
feedstock availability for benzene production, resulting in
tight supply and firm prices.

Butadiene: In 2013, butadiene global capacity was 13.4
MMT with 78% operating rate. Demand grew at 3% based on
the previous year driven by PBR, Styrene Butadiene Rubber
(SBR), ABS and SB Latex, primarily catering to automobile
industry.

SBR and PBR markets in Asia have had a poor run last year
and demand is yet to recover. Most butadiene consuming

Domestic Leadership
No. 1
producer

of synthetic rubbers in India

Management’s Discussion and Analysis (Continued)58

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plants in Asia especially China have been operating at
reduced rates leading to oversupply of butadiene in the
region. This has put pressure on butadiene prices; on a Y-o-Y
basis butadiene price have fallen by around 30% in the
region. There has been no corresponding fall in butadiene
feedstock prices; which has led to erosion in margin for
butadiene manufacturers.

Indian butadiene demand grew by 3% to 116 KTA as against
capacity of 300 KTA, making it a net exporter in the global
markets. Domestic demand growth is expected to increase
due to the start-up of new synthetic rubber plants planned
for in the near future.

Linear Alkyl Benzene (LAB): LAB is mostly consumed as
surfactant intermediate for detergents. Global LAB capacity
is around 3.8 MMTPA with 85% capacity utilisation. While the
global demand growth is at 2%, for Asia it is 5%, indicating
emergence of Asia as a key LAB consumption region. Middle
Eastern countries have a very limited domestic LAB market
whilst India being at close proximity becomes their natural
export market. This allows for low priced imports to be
available in the country.

The current Indian LAB capacity is 520 KTA while the overall
demand is of around 500 KT. LAB demand in India grew by
2.5% during the year. Additional capacity expansions in
Saudi Arabia and China as well as renewed availability of
Iranian material are expected to put pressure on domestic
LAB manufacturers.

Polybutadiene Rubber (PBR): PBR is used mainly in the
automobile sector. Global PBR consumption for FY 2013-14
remained weak due to lower off-take from the automobile
sector. There was significant capacity addition in China
during 2013, which, coupled with the slowdown in global
economy kept the operating rates of PBR plants at lower
levels (approximately 72%). Major manufacturers in China
and Korea operated at even lower rates of 50-60% due to
weak regional demand.

During FY 2013-14, automobile sales in India excluding
2-wheelers witnessed de-growth. Despite this slowdown,
PBR consumption in India increased by 8% due to strong
demand from the replacement market.

Indian Petrochemical market
Polymers: The Indian polymer market growth is closely
linked to GDP growth. The Indian per capita plastic
consumption is advancing at 1.5 times its GDP growth
making India among the world’s fastest growing polymer
markets with a five-year CAGR of 10.7% (2008-2013). Despite
strong growth over last few decades, the Indian market
industrialisation
remains under-penetrated.

Increasing

India Demand Growth
1.5x GDP
Growth

expected in per capita
plastic consumption

and stable economy is likely to propel India’s per capita
consumption of polymers.

During FY 2013-14, polymer demand in India grew by 3%.
This was driven by 5% growth in PP, 2% growth in PVC and
1% growth in PE demand. Petrochemical demand growth in
India during FY 2013-14 was low compared to last 5 and 10
year average growth rates. The lower demand growth can
be attributed to economic slowdown, deferment of capital
expenditure by the government on infrastructure, currency
volatility and liquidity crunch caused by higher interest
rates.

Overall, PP demand was moderately higher as there was
growth in some of the end-use packaging applications.
However, PP demand was negatively affected by poor
demand from cement packaging and automobile sector.
In PVC market, pipe demand was flat due to extended
monsoon and high inventory of finished goods. During
the year, India imported around 1 MMT of PVC in line
with previous year’s imports. Overall, PE demand was soft
as end-use sector consumption was affected by slower
growth in infrastructure, fertilizer sectors and roto-moulded
products. PVC domestic demand growth during 2013-18 is
expected to be at 6.7% CAGR. However, long-term growth
prospects are positive on account of the government’s
focus on infrastructure development and low per capita
consumption.

During the year, 0.7 MMTPA of polymer capacity was added
in India (mainly in PP and PVC). Total market demand for
PE, PP and PVC was 9.3 MMT in 2013, and it is estimated to

Reliance Industries Limited
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reach 13.7 MMT by 2018, a CAGR of 8%. During the same
period, around 3.5 MMTPA of total polymer capacity is likely
to be added, including RIL’s on-going capacity expansions.

Polyester: Indian all fibre textile mill consumption in 2013
was estimated at 9 MMT, 7% up over previous year. Of this,
cotton and polyester are major textile fibres consumed,
and account for almost 90% of all fibre consumed. In India,
the current share of cotton and man-made fibre demand
is around 55:45 compared to around 35:65 globally. Indian
all fibre demand is expected to reach a market size of
around 13 MMT by 2020 and 17.5 MMT by 2030. India is
ideally positioned to see an impressive stage of growth
with favourable demographics and dependent population
rate growing slower than the workforce. In line with global
trends this would pave the way for larger man-made fabric
base, benefiting the polyester industry at large.

The domestic polyester industry witnessed mixed market
sentiments during FY 2013-14, reflecting an overall
moderate and cautious growth pattern. During the year,
domestic polyester demand grew by 6% on y-o-y basis, led
by 7% growth in PFY, 6% growth in PET and 2% growth in
PSF. The first quarter of the year witnessed healthy demand
growth for all polyester variants due to seasonal upturn and
active restocking activities. However, in the second quarter
of the fiscal, the polyester demand turned cautious amidst
volatility in the feedstock prices and the Indian Rupee.

Fully Drawn Yarn (FDY) markets, however, witnessed
good growth due to import substitution and growing
applications in warp knits and embroidery segments. PET
market growth was stunted owing to the longer monsoons
and prolonged winter, while PSF growth was affected due
to the replacement by recycled fibres and filament yarns in
certain market segments.

During FY 2013-14, Indian textile and clothing exports
increased by 14% y-o-y. Textile industry-friendly policies
and schemes were announced by the GoI and several states
to encourage the sector’s value-addition and growth.

Operations and Financial Performance

Financial Performance

` in crore
Revenues
EBIT
EBIT (%)

FY 2013-14
96,465
8,612
8.9%

FY 2012-13
88,108
7,328
8.3%

% change
9.5%
17.5%

FY 2013-14 revenue from the Petrochemicals segment
increased by 9.5% y-o-y to ` 96,465 crore ($ 16.1 billion).

Global Leadership

No. 1 global

producer of polyester fibre
and yarn

Growth in revenue was led by 8.6% increase in prices and
0.9% growth in volumes. EBIT improved sharply by 17.5% in
FY 2013-14 to ` 8,612 crore.

Petrochemicals business earnings were positively impacted
by higher polymer, PET margins and rupee depreciation;
partially offset by the decline in regional deltas for PVC and
fibre intermediates.

Polymer Production

(Production in KT)

FY 2013-14

FY 2012-13

PVC

2,805

1,018

671

2,810

992

620

RIL maintained its leadership in the polymer industry with a
domestic market share of 40%. RIL’s cracker operating rate
was at 96%.

PP plant at Jamnagar

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RIL is the world’s fifth largest producer of PP. During FY
2013-14, the Company produced 2.8 MMT of PP, a capacity
utilization of 100%. RIL has a pre-eminent position in the
domestic PP market with 60% share. The major new grade
development activities undertaken in PP business include:

zz Exploring on value-added products development, such

as C-PVC pipes and fittings compounds

zz Focusing on high K-Value resins for critical insulation and

high-strength applications

zz Commercial trial lot production started for bi-axially

oriented film grade for capacitor applications

Polyester Production

zz Commercial trial run for advance catalyst-donor system
taken for PP-ICP grades at Hazira for better properties

zz Alternate additives and dosage optimisation established
for Hazira ICP grades for improved properties and cost-
saving

RIL produced total PE of over 1.0 MMT during the year and
has market shares of 18% in HDPE, 39% in LLDPE and 43%
in LDPE. With 29% market share in the overall PE market,
RIL leads the domestic PE producers market. The Company
increased market share in high-value sectors in HDPE (pipe,
roto-moulding and high flow) during the year. The Company
also maintained its share in LDPE’s high-value sectors (milk
packaging, extrusion coating and injection moulding). The
major new grade development activities undertaken in PE
business include:

zz Successfully developed HDPE base resin for PEX pipe

compound for hot water application

zz Introduced lower MI for master batch in the injection

moulding sector

zz Successfully developed grade with higher stiffness and

lower cycle time for LL roto-moulding sector

RIL’s total PVC production was at 0.67 MMT and it has a
market share of 29% in the domestic market. The major new
grade development activities undertaken in PVC business
include:

zz Successfully commercialised a new PVC grade with a
medium porosity resin to capture customers focused on
aesthetics. This grade is now well-positioned in PVC flexi
banner market

PTA Plant at Hazira

(Production in KT)

FY 2013-14

FY 2012-13

PFY

PSF

PET

671

630

347

665

612

351

Fibre Intermediates Production

(Production in KT)

FY 2013-14

FY 2012-13

PTA

MEG

1,989

2,045

675

1,995

2,087

682

Polyester production was marginally higher at 1.65 MMT for
the year.

During the year, RIL successfully commissioned its highly
automated 0.4 MMTPA world’s first ‘zero waste’ - based
PFY plant at Silvassa. It is co-located with RIL’s existing

New PFY Plant

Most
automated

and one of the most
environment friendly plants
globally

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texturizing facility at Silvassa eliminating packaging and
logistics costs. This coupled with integration with PTA will
make the Silvassa facility amongst the lowest cost PFY
producing sites globally.

Silage Bag, available in capacity of 100 to 9,000 kg, is an
ideal replacement of concrete and mud silos. It has unique
advantages like being lightweight, foldable, portable and
reusable.

This expansion further strengthens RIL’s position as the
world’s largest producer of Polyester Fibre and Yarn with
total polyester capacity of 2.8 MMTPA. RIL maintained its
domestic market leadership position with 20% share in PFY,
67% share in PSF and 41% share in PET.

RIL is the world’s 5th largest producer of PX, 9th largest
producer of PTA and 8th largest producer of MEG. RIL
retained its pre-eminent position in the domestic fibre
intermediate market with 59% share in PX, 47% share in PTA
and 37% share in MEG.

RIL’s Malaysian operations enhanced polyester market share
in Asia primarily in Korea, Indonesia and Vietnam. The drivers
were value-added products and superior customer service,
prompt deliveries and consistent quality. The operations
enhanced textiles market share in Turkey by fully leveraging
improved demand and developed new markets in Mexico.

RIL optimised logistics cost by procuring from closer
facilities, and sold MEG from its own plants to other nearby
external polyester facilities. As in-house demand increases
during the next fiscal, RIL will divert more in-house volumes
while simultaneously optimising external sources to
increase profitability.

Chemicals / Elastomers Production

(Production in KT)
Benzene
Butadiene
LAB
PBR

FY 2013-14
714
174
164
81

FY 2012-13
743
169
162
77

RIL has built capacities in chemicals, which are primarily
fed by cracker by-products. RIL is the leading producer
of benzene, butadiene, LAB, caustic, butene1, MTBE and
is the only producer of PBR and acrylonitrile in India.
These chemicals are supplied to various downstream
industries, such as pharmaceuticals, packaging, agriculture,
automobile, electronics and construction sector.

New applications and market initiatives
Polymers: The PP business has developed and pioneered
Flexible Intermediate Bulk Container (FIBC) for silage
storage. This new product application is expected to
deliver a step improvement in preparation and storage
of fodder as compared to traditional silo digging. The PP

PP nonwoven crop cover is now a proven application to
protect vegetables from frost and insects. Development
work with farmers of Rajasthan and National Horticulture
Mission (NHM) has led to growing crop cover use for many
vegetables and fruits. Apart from high yield, this crop cover
also reduces pesticides usage to a great extent, making the
product environment friendly.

RIL developed flexible pouch for milk packaging to
improve shelf life at ambient temperature up to 30 days.
The Extended Shelf Life (ESL) milk packaging will enable
packaging and storing of milk without refrigeration. RIL
developed in-house multilayer polyfilm structures with
better barrier to oxygen and 100% opacity.

RIL successfully developed ’Ultra-clear Repol SRX 100’ PP
grade for refrigerator parts, clear containers, among others.
New products are economical due to low density (lesser
weight), and provide excellent contact clarity, freedom from
breakages and good aesthetics.

Polyesters: During the year, RIL introduced many premium
apparel and non-apparel products, which were widely
accepted by customers. Some of the products are slub
yarn, which gives a linen-like look and feel, and sparkle and
shimmer yarn which adds a shining effect in evening wear.

Recron pre-coloured fibres are making ways for new
application in denim fabrics. On the industrial usage
front, Recron UVS yarn imparts an enhanced protection
against sunlight exposure and is ideal for technical uses as
geotextiles, awnings, etc.

In packaging segment, RIL has developed PET with
barrier properties for use in flavoured milk, syrups and
pharmaceutical sector and cobalt free PET as a green
packaging initiative.

Capex and growth plans
India’s PE demand in 2013 was 3.5 MMT and is projected
to grow at 6-8% annually. The market remains supply-
constrained whilst higher domestic availability and new
applications are expected to augment demand. Last year,
India imported 1.3 MMT of PE to meet rising demand.
Reliance is expanding PE capacity by 1 MMTPA at Jamnagar.
In addition, to help meet the growing needs of polyester
business, Reliance is setting up a world scale MEG plant
at Jamnagar. These state-of-the-art technology plants will
be supplied ethylene from a new cracker being built at the

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progressing as per scheduled timelines and are expected to
be commissioned in phases over the next two years. With
these expansions, RIL is expected to emerge as the third
largest producer of PTA and the second largest producer
of PX in the world. With the coordination in expansion
of feedstock and downstream polyester products, the
feedstock security and consumption markets have been
addressed, and RIL will continue to benefit from the chain
delta economics. All expansions are world scale and use
state-of-the-art technology which ensures advantageous
cost of operations alongside savings in packaging and
logistic costs. Being strategically located close to the
consumption centres, allows for easy access and benefits
the targeted markets with an economical and reliable
source of raw materials.

The surplus capacity in the intermediates business has
impacted both prices and margins in the past year. However
with the economy and consumption being at the bottom
of down-cycle, RIL start-ups would be ideally placed at a
time when demand would emerge. In addition to this the
limited exposure to externalities would sheath the impacts
allowing maximum benefits in the integrated chain.

The petrochemical capacity additions are aimed at serving
growing Indian consumption and will further strengthen
RIL’s leadership position in the domestic market.

The new SBR project (150 KTPA) and PBR project (40 KTPA)
are progressing well and are expected to commence
production in FY 2014-15. Additionally, RIL has broken
ground for its 100 KTPA butyl rubber facility in partnership
with Sibur at Jamnagar. This is a significant step towards
the Company’s commitment to service India’s growing
automotive sector by bringing in complex technologies.

OIL AND GAS EXPLORATION AND
PRODUCTION BUSINESS
Market environment and outlook
Crude oil
2013 witnessed a rebound in global oil demand, which
increased by 1.3 MMBPD, tracking the economic recovery
in the US and Europe. Supply concerns in Libya, South
Sudan, West Africa and Iraq were offset by higher US shale
oil production resulting in Brent crude oil prices averaging
marginally lower at $ 108.7/ barrel (bbl) during 2013 as
compared to $ 111.6/bbl in 2012. During the year 2013,
the US emerged as the second largest producer of crude
oil behind Russia as a consequence of higher shale oil
production. The success story of shale was driven by the
policy of free market pricing of gas, mineral rights vested
with land owners and excellent rail/pipeline infrastructure
to evacuate gas and liquids.

Petrochemical
Investment

1.4 MMTPA

refinery off-gas cracker
to be among the world’s
largest ethylene crackers

same site. The new cracker has a capacity of 1.4 MMTPA and
will use refinery off gases as feedstock. This is likely to be
among the world’s largest ethylene crackers and will reap
the benefits of economies of scale. Additionally, by virtue
of complex integration with Company’s existing refineries
at the same site, the plant will be in the top quartile in
terms of global cost competitiveness. Currently, significant
construction activity is underway at the site and long-lead
items have been ordered.

RIL is undertaking de-bottlenecking activities for PP at
Jamnagar and for PVC at Dahej.

RIL is undertaking a large expansion across the polyester
value chain, taking advantage of feedstock linkages and
domestic market growth. During the year, RIL commissioned
one of the most automated PFY facilities in the world
at Silvassa. The commissioning of this facility marks the
beginning of the mega petrochemical expansion of RIL.
Other expansions in the polyester chain include 2.3 MMTPA
of PTA 2.3 MMTPA of PX and 0.6 MMTPA of PET which are

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FPSO, KG-D6 Block

As the underlying economic fundamentals for the global
economy maintain their momentum, oil demand in 2014 is
expected to increase by 1.3 MMBPD (Source: IEA), keeping
prices range bound. Oil markets entered 2014 with the
lowest commercial oil inventories in over twenty years, for
the three major OECD markets — US, Europe and Japan.
Spare capacity is also low and largely concentrated in the
Middle East whilst incremental supply is likely to be driven
by US crude production. Oversupply of light sweet crude in
the US Gulf Coast market has pushed out US imports of Oil,
effectively disconnecting Brent prices from WTI/LLS prices.

In the US market, crude oil production growth is expected to
remain strong, primarily concentrated in the Bakken, Eagle
Ford and Permian regions. EIA forecasts the US production
to increase from 7.4 MMBPD in 2013 to 9.1 MMBPD by 2015.
WTI crude prices remain strong in view of geo-political
tensions and continuous reduction in Cushing inventories.

importance of natural gas

US natural gas
The
is expected to grow
considerably owing to abundant supply, competitive supply
costs vis-à-vis liquid fuels and environmental advantages
over other fossil fuels. Since the turn of the century, global
gas use has expanded on average by 2.7% annually – faster
than oil or nuclear energy.

to average $ 2.83/MMBTU in 2012, but the severe 2013/14
winter (the 3rd coldest winter on record) resulted in a sharp
increase in gas prices. Supported by low gas storage levels,
prices are sustaining levels of $ 4.50 to $ 5.00/MMBTU and
this is reflected in analysts’ price estimate outlook for 2014.

Supply chain
As per research estimates, global E&P capital expenditure
will grow from around $ 451 billion in 2013 to reach $ 656
billion by 2020. Out of the current capex figure, nearly $ 127
billion is earmarked for offshore development and this is
expected to touch $ 224 billion by 2020. Demand is picking
up in regions including North America (unconventional),
East Africa, Latin America, Asia and the Middle East. Of these,
Asia and the Middle East are amongst the fastest growing
regions in the world for upstream capital expenditure and
account for nearly 27% of all the upstream expenditure in
the world. Availability of rigs, particularly deepwater rigs
remained constrained, and day rates stayed firm.

The industry also suffers from manpower shortages and
currently has a high level of vacancies in key disciplines and
is confronted with an expertise gap.

Market environment - India
India’s gas demand is expected to treble over the next
decade, rising from 150 million metric standard cubic
metre per day (MMSCMD) to exceed 517 MMSCMD by 2022
(Source: PNGRB). This demand escalation would be driven
by multiple factors: environmental concerns, convenience
of use and cost advantage over other fossil fuels.

Indian LNG imports are also expected to increase three-
fold by around 2020. Currently, India imports 34% of its gas
needs at prices indexed to oil. Indian LNG prices are likely to
be indexed to oil for the foreseeable future, driven by global
benchmarks and higher costs of new projects in Australia
and East Africa.

In the US markets also, the growth in natural gas production
is likely to continue in the near term, driven by sustained
growth in rich gas or associated gas of liquid area. US
natural gas production grew by 1.2% y-o-y in 2013 reaching
a level of 66.53 BCF/D. Growing domestic production over
the past several years has displaced some pipeline imports
from Canada, while exports to Mexico have increased. EIA
projects United States to be net exporter of gas beginning
in 2018. The market has responded to this growth by adding
processing capacities and other necessary infrastructure
for gas.

According to the IEA, to meet energy security needs, India
needs upstream investment of nearly $ 176 billion from
2013 to 2035. This implies an annual investment of about
$ 8 billion.

The IHS CERA estimates (issued in April 2013) show that
nearly 91 trillion cubic feet (TCF) of gas in India’s basins can
be unlocked at $ 12+ per MMBTU. An enabling regulatory
environment and a regime for free market pricing may
facilitate enhanced
investments and a robust energy
security landscape.

Gas prices in the US market, which are quite sensitive to
weather have seen strengthening over last three years. A
warmer than normal 2011/12 winter resulted in gas prices

As part of the transition towards free market pricing, during
the year, Cabinet Committee on Economic Affairs (CCEA)
approved a new gas pricing formula for a period of five

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Indian Gas Resource Potential

F
C
T

100

8
Gas price in $/MMBTU

12 12+

91 TCF

of gas resource can be unlocked
at price of $ 12+ per MMBTU

years based on the recommendation of the Rangarajan
Committee Report on “the Production Sharing Contract
Mechanism in Petroleum Industry”. The Domestic Natural
Gas Pricing Guideline, 2014 has been notified by the
Government which will be applicable to all natural gas
produced domestically, irrespective of source.

Oil & Gas Portfolio

Oil & Gas business and competitive
position
RIL’s upstream business covers the complete chain of activity
starting from acquisition to exploration, development
and production. The Company has a balanced portfolio of
conventional and unconventional hydrocarbon resource
plays with significant presence in deep-water blocks off the
East Coast of India and US shale regions of Eagle Ford and
Marcellus.

Partnerships represent an important dimension of the E&P
business. RIL and its partners channelise expertise and
work closely together to target high quality prospects and
optimise existing and future development plans.

RIL has gained significant experience and expertise in
conventional deepwater drilling and horizontal drilling
in North America’s shale plays. A large repository of data
acquired over the last two decades of exploration and
development supports an extensive knowledge base
gathered through consistent investment in technology
and people. Leveraging this database and experience, the
Company has re-organised and restructured the upstream
business into three distinct sectors - Conventional, Coal Bed
Methane (CBM) and Shale Gas. Such an initiative ensures
that the sectoral risks and dynamics are clearly understood
and separately managed to maximise value and growth.

Country

Partners

India
India
India
India
India
India
India
India
India
Yemen
Yemen
Peru

Niko - 10 % , BP - 30%
Niko - 10 % , BP - 30%
Hardy - 10 %
BP - 30%
BP - 30%
Hardy - 10 % , BP - 30%
BP - 30%
BG - 30% ; ONGC - 40%
BG - 30% ; ONGC - 40%
Hood Energy - 30%
Hood Energy - 30%
Repsol 55%, Peru Viatnum 35%

Block
Conventional*
NEC-OSN-97/2
KG-DWN-98/3
GS-OSN-2000/1
CY-PR-DWN-2001/3
CY-DWN-2001/2
KG-DWN-2003/1
CB-ONN-2003/1
Panna Mukta
Mid and South Tapti
Block 34
Block 37
Block 39
CBM*
SP(East)-CBM-2001/1
SP(West)-CBM-2001/1
Shale
Pioneer JV
Chevron JV
Carrizo JV
Note: RIL has been awarded two offshore blocks in Myanmar in March 2014, for which the PSC is yet to be signed.
* Conventional and CBM acreage converted into acres using 1sq. km. = 247.1053 acres

Pioneer – 46.4%, Newpek – 8.6%
Chevron – 60%
Carrizo – 40%

USA
USA
USA

India
India

-
-

RIL Stake JV Acreage (in acres)

60%
60%
90%
70%
70%
60%
70%
30%
30%
70%
70%
10%

100%
100%

45%
40%
60%

10,23,016
5,62,906
1,48,263
12,10,816
26,32,907
8,12,482
1,17,622
2,98,256
3,63,492
17,33,691
17,03,544
18,41,182

1,22,317
1,23,552

1,90,530
2,49,004
48,648

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Expanding resource base through successful
exploration initiatives
RIL along with JV partners made two significant hydrocarbon
discoveries in FY 2013-14, i.e. Discovery (D-55) in well MJ1
drilled in the block KG-D6 situated in the Krishna Godavari
basin and Discovery (D-56) in exploration block CY-D5
situated in the Cauvery basin.

Discovery D-55 – Discovery in development area of
block KG-D6 (D1-D3 field): The KG-D6-MJ1 well was drilled
in a water depth of 1,024 metres, and to a total depth of
4,509 metres, to explore the prospects of a Mesozoic Synrift
Clastic reservoir, lying over 2,000 metres below the already
producing reservoirs in the D1-D3 gas fields. Formation
evaluation indicates a gross gas and condensate column in
the well of about 155 metres in the Mesozoic reservoirs. In
drill stem testing, the well flowed at 30.6 million standard
cubic feet per day (MMSCFD) and 2,121 Barrels of Oil per
Day (BOPD). The discovery, named ‘D-55’, has been notified
to the GoI.

Discovery D-56 – Discovery in block CY-D5: As part of the
minimum work program in this block, exploratory well CY-
III-D5-S1 which was drilled in a water depth of 1,743 metres,
to a total depth of 5,731 metres, with the primary objective
of exploring Mesozoic-aged reservoirs has resulted in gas
condensate discovery. The formation evaluation indicated a
gross gas and condensate column in the well of about 143
metres in the Mesozoic-aged reservoirs.

In drill stem testing, the well flowed at 35.2 MMSCFD and
413 BOPD. The discovery, named ‘D-56’, has been notified
to the GoI. This is the second discovery in the block which
will enable scope for integration of all discoveries for early
monetisation.

Portfolio management
During the year, as part of on-going portfolio management,
RIL has relinquished 4 exploration blocks including KG-
DWN-2004/4, MN-DWN-2004/1, MN-DWN-2004/2 and KG-
DWN-2005/2.

On-shore Terminal at Gadimoga

Progress towards next wave of development projects
KG-D6
R-Cluster Development: Management Committee approval
for the Field Development Plan (FDP) has been received.
This is part of the next wave of projects in KG-D6 with
ultimate recoverable reserves of around 1.2-1.4 TCF. The
expected gas production rate will be in the range of 12
MMSCMD, significantly increasing utilisation of existing
KG-D6 facilities. As part of the development activity, the
Concept and FEED have been completed and the sourcing,
contracting for the long lead items for the projects have also
been initiated.

Appraisal of MJ1 discovery
As part of the appraisal program, the first appraisal well
was successfully drilled. It has encountered approximately
130 meters of hydrocarbon column. For effective reservoir
characterisation, a high end seismic activity was completed.
Based on current understanding, this discovery is a material
one and all efforts are being made to accelerate the
commerciality assessment of this significant discovery for
expeditious monetisation.

Satellite / Other Satellite discoveries
Since the approval of Optimized Field Development Plan
(OFDP) for 4 Satellite discoveries, the JV, based on drilling
of development well and D1-D3 field performance has re-
calibrated the reservoir models.

With respect to the Other Satellite discoveries (D29,
D30 & D31), the Declaration of Commerciality (DOC) is
pending with Management Committee for review awaiting
resolution on Drill Stem Testing (DST) issue. The JV has
already submitted a proposal to do DST in the wells and is
hopeful of an early resolution of the issue.

Meanwhile,
JV has undertaken Concept updation,
Geotechnical, Geophysical & Geohazard Surveys and Front
End Engineering Design (FEED).

With
these
the purpose of efficiently developing
Discoveries an integrated scheme of development is being
conceptualised.

NEC-25
The DOC and Integrated Block Development Plan (IBDP)
are pending for review and approval, respectively with
DGH, awaiting the resolution of DST. RIL has submitted its
proposal for carrying out DST to DGH.

CBM
Development activities have commenced in RIL’s two
CBM blocks (Sohagpur East and West) with first gas being
targeted in mid of FY 2015-16. All requisite approvals
required for the development stage are already in place.

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Financial and production performance

Financial Performance

` in crore
Revenues
EBIT
EBIT (%)

FY 2013-14
6,068
1,626
26.8%

FY 2012-13
8,280
2,887
34.9%

% change
(26.7%)
(43.7%)

Overall, oil and gas revenues for the current year were lower
by 26.7% at ` 6,068 crore, compared to the previous year.
This was largely on account of lower production and lower
liquid price realisation, partly offset by a higher exchange
rate realisation.

Earnings before
Interest and Tax (EBIT) declined by
43.7 % to ` 1,626 crore, compared to the previous year due
to lower production, partly offset with correspondingly
lower depletion charges.

The KG-D6 block

KG-D6: JV Production

KG-D6
Oil (MMBBL)
Gas (BCF)
Condensate (MMBBL)

FY 2013-14

FY 2012-13

2.0
178.3
0.3

2.9
336.0
0.4

The block produced 178.3 BCF of natural gas and 2.3 MMBBL
of crude oil and condensate in FY 2013-14, a 47% and a
30% reduction for natural gas and crude oil/condensate,
respectively. Production volumes for the year were lower
on account of geological complexity, natural decline in the
fields and higher than envisaged water ingress. This decline
is partially offset by additional gas production from the new
development well MA-08.

Rig at KG-D6 Block

As a part of the CBM development programme, RIL is drilling
more than 200 wells and setting up two Gas Gathering
Stations and 8 Water Gathering Stations in Phase-I. The
land acquisition is at an advanced stage – more than 50%
of Phase-1 scope has been completed. Currently 3 rigs are
in operation with drilling and completion activities having
commenced from November 2013. RIL has drilled 90 surface
and 72 production holes and 51 hydro fracturing jobs have
been completed. Concept and FEED for Surface Facilities is
completed and Detailed Engineering is underway.

Shahdol – Phulpur gas pipeline project
Petroleum And Natural Gas Regulatory Board (PNGRB) has
issued the Grant of Authorisation in June 2013 to Reliance
Gas Pipeline Limited, a subsidiary of RIL, for a natural gas
pipeline from Shahdol in Madhya Pradesh to Phulpur in
Uttar Pradesh (hook-up point with GAIL’s HVJ pipeline) to
transport gas from RIL’s CBM blocks.

Land acquisition has been completed for all critical
installations and obtaining of Right of Use (ROU) for laying
the pipeline is under way. Basic engineering (FEED) is
completed and detailed engineering is in progress. Ordering
for long lead items has been completed and awarding of
construction contract is in the final stages.

Measures taken for sustaining production from
existing fields
initiatives to sustain production
As part of multiple
and enhance recovery from the D1-D3 and MA fields,
RIL successfully drilled and completed a development
well MA-08 in MA field and commenced production from
January 2014. This has resulted in additional gas production
of approximately 2.2 MMSCMD.

Other enhanced gas recovery projects underway include:
i) water shut off jobs and side track activities in the existing
shut in wells, and ii) Engineering and construction activities
for booster compression – target completion in 2015.

Panna-Mukta JV
The Panna-Mukta JV carried out significant drilling activities
during the current year, drilling six wells in the PL area
and six infill wells in the PJ and PG areas. These activities
yielded additional volume that helped in partially arresting
production decline.

As part of the Mukta field development, the Joint
venture submitted and received approval for Mukta “B”
development from the Management Committee. The
estimated recoverable reserves from Mukta “B” area is
approximately 3.56 MMBBL of oil and 9.16 BCF of gas during
the Production Sharing Contract (PSC) period. First oil from
this development is expected in FY 2015-16.

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PMT block

PMT: JV Production

Panna- Mukta
Oil (MMBBL)
Gas (BCF)
Tapti
Gas (BCF)
Condensate (MMBBL)

FY 2013-14 FY 2012-13

7.4
65.4

27.3
0.3

8.2
71.2

43.9
0.5

The Panna Mukta field delivered 7.4 MMBBL of crude oil and
65.4 BCF of natural gas in FY 2013-14; 9% and 8% reductions
in crude oil and natural gas respectively. The decrease
in the production volumes for the year was due to a
17-day shutdown for field maintenance activities including
commissioning of new SPM system coupled with natural
decline. The Tapti field delivered 0.3 MMBBL of condensate
and 27.3 BCF of natural gas in FY 2013-14; 48% and 38%
declines in condensate and natural gas respectively. The
decrease was due to the under-performance of new wells,
as well as the natural decline in reserves.

During the year, the Tapti field witnessed lower production
from the existing wells due to natural decline. Also, the
results of the new infill wells drilled were not encouraging.
Consequent to this, JV re-assessed the reserve estimates
independent consultant and revised the
through an
ultimate recoverable reserves. The JV is preparing for
abandonment of this field in consultation with GoI.

International business
In line with its strategy of portfolio balancing by expanding
its international asset base and investing in regimes having
attractive internationally competitive terms, RIL participated
in the Myanmar bid round.

RIL was selected for two offshore blocks (M17 and M18)
located in offshore Myanmar in water depths up to 3,000 ft
and together encompassing an area of 27,600 sq. km.

During the year RIL and PDVSA, Venezuela signed a joint
study agreement for Ayacucho Block 8 in the Orinoco Oil
Belt to jointly evaluate the development plan for Ayacucho
block. RIL is also actively considering other opportunities
in East and West Africa, Iraq and other locations. RIL has
concluded an assignment of its working interest (30%) in
Block 108 in Peru to Pluspetrol and Woodside.

North American Shale Gas – Operations
Background
The successful shale gas revolution in North America has
changed the global energy landscape. Industry continues to

discover new plays and operators continue to find economic
ways of exploiting this resource. The US market is business
friendly and actionable with an abundance of financing
options that make it possible for leaner and smaller players
to gain a position of importance in the market.

RIL has leveraged its cost leadership experience in its shale
joint ventures and with its truly global outlook has quickly
become a sustainable and a major shale gas player. Reliance
has, till date, invested $ 7.0 billion in its joint ventures with
Pioneer Natural Resources, Carrizo and Chevron.

Operations and financial performance

Financial Performance

$ in million
Revenues
EBIT
EBIT (%)

CY 2013
819
295
36.0%

CY 2012
545
180
33.0%

% change
50.3%
63.9%

Reliance continued to register growth in its shale gas
business with revenues and EBIT increasing 50.3% and
63.9% respectively. Reliance share of net sales averaged at
359 MMCFeD, from 622 producing wells. Aggregate sales
volume at 131 BCFe, compared to 85 BCFe in 2012. EBITDA
of $ 616 million in 2013, up 46% y-o-y, provides a solid base
to the business, which is now reaching material levels of
production, revenue and EBITDA.

Reliance was successful in its portfolio high-grading efforts
and the strategy of liquid focused development was
successfully implemented by reducing activity in dry gas
area and focusing development in liquid rich area of Pioneer

US Shale Investment
$ 7 billion

invested in its joint ventures
with Pioneer Natural
Resources, Carrizo and
Chevron

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JV. The overall capex during the year was $ 1.4 billion, lower
by 35% over the previous year on account of reduced carry
obligations and moderated development pace at Marcellus.

Several initiatives were taken up to ensure sustainable
growth of the business by increasing resource recovery,
reducing costs and higher productivity. New development
concepts such as down spaced wells, drilling in upper
Eagle Ford and upper Marcellus were pursued. These
will positively impact reserve accretion as well. Cost and
recovery optimisation initiatives like multi well-pad drilling
and longer laterals were successfully pursued.

In CY 2013, the RIL-Shale Gas Operations (RIL-SGO) posted a
43% reserve accretion with year-end proved reserves at 2.66
TCFe. These Proved reserves are about 30% of total resource
base underscoring
significant development upside.
Reserves were positively impacted by benefits of additional
well locations in Pioneer and Carrizo joint ventures marking
development upside.

During 2013, the joint ventures drilled 252 wells and put
237 wells on production taking the cumulative number of
producing wells to 622 at the end of the year as compared to
385 producing wells at the end of 2012. Reliance witnessed
an improvement in efficiencies and cost reductions in
development activities for 2013 over the previous year. The
focus was on leveraging knowledge on acreage sweet spots
and preserving optionality on dry gas acreage.

Shale Gas Production

2011

r
a
e
Y

2012

2013

101

154

40
Billion Cubic Feet (BCFe)

120 160 200

52 % Growth

in production from the previous year

The RIL-SGO share of gross JV production was 154 BCFe
in 2013 reflecting a growth of about 52% over 2012
production.

Pioneer Upstream JV
in pursuing high
JV has been notably successful
value growth. Producing well count increased from 246 at
year-end 2012 to 371 at year-end 2013, which was a major

factor in the growth in production volumes. The JV produced
207 BCFe of products through the year (gross) and achieved
an exit rate of 662 MMCFeD. The share of liquids increased to
64% in 2013 reflecting growth in activity in oil-rich acreage.
On-going development thrust on infill drilling, down spaced
and upper Eagle Ford development provided for additional
potential locations leading to growth in proved reserves by
34% at year-end 2013.

Chevron Upstream JV
The JV saw production growing over 100% from previous
year at 91 BCFe and achieved an exit rate of 328 MMCFeD.
The JV witnessed impressive growth in proved reserves
going up 79% from year-end 2012 to year-end 2013. JV is
pursuing paced development in view of the challenging
pricing environment while retaining optionality on acreages
through low cost lease renewals.

Carrizo Upstream JV
In view of a challenging price differential environment,
Carrizo JV deferred bringing some wells online as per
original schedule which led to curtailment in production. In
spite of this, the JV production of 40 BCFe reflected a 78%
increase over the previous year and the JV achieved an exit
rate of 138 MMCFeD at the end of 2013. Carrizo JV focused
on portfolio optimisation through the sale of suboptimal
acreage in Sullivan County in the fourth quarter of CY 2013.
While year-end 2013 reserves were largely unchanged,
Carrizo added potential well locations due to Upper
Marcellus development plan down spacing.

Update on domestic gas pricing,
arbitration and other legal issues

Domestic Gas Pricing
The Contractor was entitled to a revised gas price from
1st April 2014. The government notified “The Domestic
Gas Pricing Guidelines, 2014” on 10th January 2014. The
notification required the Government to intimate quarterly
prices on the basis of the approved formula. In view of
the Model Code of Conduct which is in place for the
Parliamentary Elections, the Government approached the
Election Commission for permission prior to notifying the
applicable process for quarter 1st April to 30th June 2014.
The Election Commission has advised after taking into
account all relevant facts that the intimation of the price
of gas sales for the quarter be deferred. In view of the
Election Commission recommendation, the MoPNG has
directed the Contractor to continue to charge the earlier
prices even after 1st April 2014. Accordingly, the Contractor
is selling gas to its customers at the price of $ 4.2/ MMBTU,
on a provisional basis. The Contractor is entitled under the

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PSC to receive market prices for all gas produced and sold
from the block. The restriction on charging the revised gas
price is not in line with the PSC and the Contractor reserves
its rights and remedies to claim the revised gas price from
1st April 2014.

KG-D6 Arbitration and other legal issues
RIL has commenced an arbitration against the Government’s
decision to disallow recovery of costs incurred by the
Contractor in the development of facilities constructed for
production of gas from the D1 and D3 fields in the block
KG-D6. RIL approached the Supreme Court for appointment
of a third arbitrator following the failure on the part of
the arbitrators appointed by the Contractor and the
Government to appoint a third arbitrator. Consequently, the
third arbitrator has been appointed by the Supreme Court.

Public Interest Litigations (PIL) were filed by Gurudas
Dasgupta and an NGO called Common Cause before the
Supreme Court. The PILs primarily seek quashing of the
decisions of the Government to revise the gas price and
action against the Contractor for failure to relinquish area
and for hoarding gas. As both the PILs raised substantially
the same claims, the Supreme Court tagged both the
petitions to be heard together. These PIL are currently being
heard by the Supreme Court.

issues

(including

in London

PMT Arbitration
Arbitration Hearing
from
took place
19th November to 27th November 2013 and a number
of
Interpretation of Cost recovery
provisions, interpretation of provision related to calculation
of Investment Multiple and profit sharing, Powers and
functions of Management Committee and method of
determining the amount of royalty) were heard and
award has been reserved. A final hearing has been fixed
for 15th June to 3rd July 2015. Further RIL/BG’s SLP before
the Supreme Court (challenging Delhi High Court’s order
admitting GoI’s petition for setting aside a partial final award
handed down by PMT arbitration tribunal) has been heard
by the Supreme Court and the judgment has been reserved.

Major Subsidiaries
RETAIL BUSINESS
Market environment
India’s economy has been plagued by persistent slowdown
since 2012. Combination of domestic and global factors
are responsible for the downturn. Spiralling inflation and
rising interest rates over the past few years have subdued
both investment and consumption in the economy. Global

downturn also cast its shadow, making consumers cautious
in their spending behaviour.

Discretionary spending among urban consumers was also
impacted by escalating food prices. Growth in private final
consumption expenditure (PFCE) of 2.5% in 3Q of FY 2013-
14 (2Q FY 2013-14: 3%) was the second lowest growth
observed in the last 37 quarters. (Source: Central Statistics
Office – 3rd Quarter GDP Estimates, February 28, 2014).
The result is a bleak domestic scenario in which consumer
confidence and business optimism have remained below
expectations.

India’s Retail industry, estimated at over $ 500 billion in
2012 (Source: Deloitte – Indian Retail Market Opening More
Doors, January 2013), has evolved considerably in the last
few years. However, organised retail is still in its infancy
stage with 12 million kirana shops strengthening the
sector’s backbone.

While modern retail is resilient to economic cycles owing
to its fundamental growth drivers, improvements in the
overall consumer sentiment will drive industry growth in
the foreseeable future. Organised retail will help accelerate
India’s economic growth and job creation.

During the year, developments on the policy front provided
an opportunity for global retailers to make investments and
participate in the sector’s growth story.

Outlook
A two trillion dollar economy catering to a billion-plus
population, more than half of which is below the age of 30.
Such a scenario, a rarity in the world’s demographic profile,
represents the foundation for India’s retail sector growth.

India’s organised retail is witnessing a new surge of
optimism and is projected to touch a 20% share of the total
retail market by 2020 vis-à-vis 8% now. (Source: Deloitte –
Indian Retail Market Opening More Doors, January 2013).

Retail business and competitive position
Operating strategy
Reliance Retail is India’s largest retailer by revenues. Reliance
Retail has been instrumental in serving the country’s
growing consumption base by operating multiple retail
formats that offer best choices in products and services,
superior value proposition and world class shopping
environment.

into

insight

Deep
India’s economic, cultural and
consumption diversity drives Reliance Retail’s vision in the
retail universe. The operating model is based on customer

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centricity, while leveraging common centres of excellence
in technology, business processes and supply chain.

Leadership: Reliance Retail has consistently taken a
long-term view on
India’s enormous consumption
requirements and potential. Reliance Retail’s vision is about
inclusive growth for both organised and unorganised
retail. It continues to reinforce leadership in focus sectors
and
its efforts enable economies of scale and best
practices. Reliance Retail is at the forefront of evolving new
consumption opportunities.

Speed: A core element of Reliance Retail’s strategy is to
be able to anticipate and respond quickly to evolving
in
customer/market trends and requirements. Speed
decision-making, effective resource development, format
and product development are essential for sustained
profitable retail growth. The speed-to-market approach
is driven by leveraging state-of-the-art retail technology
and operating functional expertise, which provides rapid
deployment and replication.

training

provides

comprehensive

Consumer Focus: At Reliance Retail, customer-centricity
forms the basis of its operating model. Reliance Retail’s
and
Academy
development to its associates. Reliance Retail’s Customer
Loyalty programme is a critical tool to ensure constant
understanding and serving the needs of its existing and new
customers. In addition, it has many important consumer
touch-points, such as customer service call centres, mystery
shoppers, decentralised buying and merchandising, along
with extensive data analytics to understand purchasing
patterns. Consumer focus is also at the centre of its format
technology
innovations, product development and
enhancements.

Productivity and Efficiency: Reliance Retail has built
world-class infrastructure supporting business systems and
supply chains. Its highly trained people and robust processes
ensure consistent execution. These developments enable to
leverage resources to a great extent and drive productivity.
Managing a diverse portfolio of formats, geographies and
products is greatly simplified with an evolved infrastructure
of processes and systems.

Reliance Retail has continuously invested in strengthening
its technology platforms that enables it in making better
decision, achieve operational efficiency and offer superior
customer service.

Operations and financial performance
Retail business grew by 34% to reach revenue of ` 14,496
crore as against ` 10,800 crore registered in the previous
financial year.

Reliance Mart, Jamnagar

It continued to grow profitably, achieving profits before
depreciation, finance cost and tax expense (PBDIT) of ` 363
crore. The format sectors collectively witnessed a three-year
CAGR of 34% in revenues.

initiatives

improvement

taken under

Efficiency
the
leadership of best retail management talent, with an
unwavering focus on providing superior customer shopping
experience has helped attain robust growth across almost
all format sectors during the year. The retail business
witnessed strong same store sales growth up to 23% across
format sectors over last year.

Reliance Retail has established market leadership in all
of the focus sectors of Digital, Lifestyle and Value sectors.
During the year, a total of 225 stores were added, covering
an area of 2.7 million square feet.

As on 31st March 2014, Reliance Retail operated 1,691 stores,
covering an area of 11.7 million square feet across 146
cities. There was continued focus on best-in-class systems,
processes and infrastructure to enable growth. The scale
and speed of profitable expansion is a result of the back-end
infrastructure and continuous improvement.

The performance of various format sectors during the year
is detailed below:

Store Count and Additions

Format Sector

Store
Additions
FY 2013-14
(42)#
Value and Others
85
Fashion & Lifestyle
145
Digital
34
Brands
3
Jewellery
225
TOTAL STORE
# includes impact due to closure of Delight (Non-vegetarian
food format)

Store Count
As on 31st March,
2014
718
533
284
102
54
1,691

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Revenue Mix (%)

FY 2013-14

Value Format & Other
Digital
Fashion & Lifestyle
Jewellery
Brands

55
21
13
9
2

Value formats and others
Food and Grocery remains the largest category in the
consumption basket and is estimated at around 60%
of consumer spending. (Source: Deloitte – Indian Retail
Market Opening More Doors, January 2013) Value Formats
have been primarily focused on this key element of
consumption basket and the format strength has been to
offer a comprehensive range of fresh products. The business
continued to consolidate its position as India’s largest
grocery retailer during the year.

Value Formats have been focusing on own label products
that stand true to the tag-line of ‘Trusted Quality, Reliance
Price’. Several new products and categories were added to
the strong own label portfolio. During the year, the business
recorded a participation of up to 23% from own label
brands in key categories such as staples and dairy. With a
broad selection of own label products, complemented by

Reliance Market store in Mumbai

well-known brands, value formats optimally meet the
diverse needs of Indian consumers.

Grocery retail is a business that thrives on getting a
right business model, which blends standardisation and
specialisation with equal measure. The best-in-class retail
chains have always looked for opportunities and ways
to ‘localise their offerings, while maintaining a global
perspective’.

India’s retail market being dominated by the
With
kirana stores, the cash-and-carry model is looking at the
opportunity to serve this under-served segment.

Reliance Market has established leadership in Wholesale
Cash & Carry segment in the country with 32 operational
stores and enjoys patronage of more than 1.2 million
registered members.

life

infused new

into business
‘Reliance Market’, has
transactions of Kirana, HORECA,
institutions, etc by
empowering and boosting their entrepreneurial potential.
At the same time, it has generated sustained social value by
increasing employment opportunities for large population
strata. This is encapsulated in its promise to customers –
‘Aapka Market, Aapka Fayda’.

Reliance Market has been
leveraging the synergies
across the retail business portfolio to help bring the right
merchandise on the shelves in each location. Reliance
Market’s strong own brand portfolio has further helped
to bring relevant offerings to its shelves. Such a scenario
has led to a large assortment of core and complementary
products, which further differentiates Reliance Market from
competitors.

Pricing is yet another distinctive feature of Reliance Market.
Its leadership position is secured by key product ranges
being available at the lowest wholesale prices. In the pricing
process, Reliance Market has also practiced the concept of
ladder pricing which allows small shop owners to save more
by buying more of their requirements.

Fashion and lifestyle
The apparel market (approximately ` 2.3 lakh crore market
size) accounts for 8% of India’s consumption expenditure.
(Source: Deloitte – Indian Retail Market Opening More
Doors, January 2013) It is expected to quadruple over the
next decade, while the footwear industry is estimated to be
about approximately ` 0.3 lakh crore (Source: Technopak
Report – Fashion Retail Scenario in India: Trends and Market
Dynamics, Jan 2014), growing 15% annually (Source:
Assocham Report). The industry has been relatively more

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Reliance Trends store in Mumbai

organised, with modern trade accounting for 30% market
share (Source: Assocham Report).

apparel design, sampling, sales and marketing. These
interventions have enabled Reliance Trends to drive product
innovations, reinforce quality control and significantly
reduce lead times in unveiling latest designs from around
the world.

Reliance Trends
launched the BisouBisou collection,
which includes fashionable casual and party wear for the
contemporary Indian woman, in its stores during the year.
BisouBisou, an international brand by an award-winning
designer, will be retailed exclusively by Reliance Trends
stores.

The business launched high-impact, marketing innovations
in print and outdoor media and was associated as the
‘Preferred Partner’ at the Lakmé Fashion Week 2013.

Reliance Trends, the apparel and accessories specialty
format, established a strong fashion identity for itself
during the year, while continuing to be true to its brand
communication ‘Sirf Dikhne Mein Mehenga’.

Reliance Footprint, the specialty footwear format of the
retail business, firmly established itself as the largest
multi-brand format in its segment with continued store
additions.

With the constant endeavour to improve the fashion
quotient of the format for its consumers, Reliance Trends
continues to work with empanelled international designers.
Such an approach ensures that trend-forward designs
are available to its customers through the extensive
range of own labels, apart from other national and
international brands.

Reliance Trends now has a deep and wide assortment of
own brand labels in the women’s western wear and kids
wear segments with these launches:

zz Intribe – This fast fashion own label offers men’s wear
and women’s wear and will have a new range every
30 days, representing in-trend styles from ramps in India
and around the world

zz Rio – Western wear for women including Casual, Evening

and Party wear for teens and young women

zz Fusion – Contemporary ethno-western wear for stylish

young women

During the year, Footprint signed an exclusive franchise
agreement with Payless ShoeSource to build and operate
Payless ShoeSource stores in the country. Payless is the
largest specialty family footwear retailer in the Western
hemisphere. The Payless stores in India will offer a wide
variety of fashionable, comfortable, high-quality and
affordable footwear and accessories to Indian consumers
across segments.

Footprint expanded the distribution of Asics into specialty
footwear stores, key department stores and on-line stores
during the year to make the brand more accessible to
consumers. The business also continued to partner with
other leading brands bringing more choices for consumers.

The successful partnership with Marks & Spencer (M&S)
continued to grow from strength to strength through the
launch of new stores during the year.

zz Fig – Complete wardrobe solution for the modern Indian

Reliance Footprint store

woman

zz Avaasa – Versatile ethnic wear for Indian women

Own label brands contributed to about 61% of the Trends
business.

To support its range of labels, Reliance Trends has, over the
years, made significant and meaningful interventions in the
apparel value chain at every stage of the manufacturing
process - from fibre selection and sourcing through to

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an extensive range of spectacles, progressive lenses and
trendiest range of sunglasses. Vision Express is India’s largest
chain of Company operated stores and continues to grow.

(CDIT) products

Digital
Reliance Digital, the consumer durables and information
technology
format, has
established itself as a complete destination store that offers
comprehensive assortment of top brands, a large selection
of innovative products, attractive pricing and best-in-class
service.

retailing

To help consumers better understand and experience the
comprehensive technological solutions that the format
offers, Reliance Digital launched several experience zones
in its stores. These zones give consumers a first-hand
experience of the digital ecosystem on display, helping
them make better informed purchase decisions and ensure
optimum utilisation of the solution post sales.

Built around the central theme of providing cutting-edge
technology solutions, the Digital Express format offers a
wide range of products and helps customers connect with
their world from anywhere at any time.

The business also launched a new format Digital Express
Mini, which represents an exciting opportunity to extend
the success of Digital Express. The format focuses on mobility
and communication products. The format operates in a
much smaller space, which creates tremendous flexibility
and scale opportunities.

The business continues to strengthen ResQ, the service
arm of 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 the entire
range of CDIT products and other value-added services. The

Reliance Brands store

During the year the business opened 10 stores, including the
largest flagship store in Bandra, Mumbai, and an expanded
flagship store at South Extension, Delhi. These stores provide
customers with a truly international shopping experience
- showcasing M&S’s most extensive range of exceptional
quality, confident styles across clothing and beauty to date.

With aggressive expansion plans
in place targeting
80 operational stores by 2016 including expanding in
tier 2 cities, the business is on track to become largest
international market outside the UK for M&S.

In line with its strategy to capitalise on growth of the lingerie
and beauty market in India, the business opened the world’s
first Marks & Spencer Lingerie & Beauty department apart
from other ranges of exceptional quality, stylish products.

Vision Express, the optical retail chain under partnership
with Grand Vision, Europe’s largest optical retail chain
with over 4600 stores in over 40 countries completed 5
years of successful partnership with the Company. Vision
Express serves eye care needs of the customers by offering

Reliance Digital

Largest
digital

retail chain in India

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business will continue to grow geographically in terms of
its offerings.

Reliance Digital continued to refine the ReConnect range
of the own-label brand. It included new products and
categories to suit all budgets and requirements. During the
year, the most notable achievement has been the launch
of ReConnect LED televisions in collaboration with Harman
Kardon. ReConnect contributed up to 18% penetration for
several CDIT product families representing steady increase
in the own label penetration.

Digital format sector continued its rapid expansion during
the year. It added over 140 stores to its tally of 139 stores at
the beginning of the year.

Brands
During the year, Reliance Brands through its joint venture
with Iconix USA, Iconix Lifestyle India, made available three
well-known international brands viz; London Fog, Umbro
and Cannon for discerning Indian consumers.

The business added Quiksilver (www.quiksilver.in) to its
e-commerce portfolio, supplementing the earlier launch of
Stevemadden (www.stevemadden.in)

Hamleys, the experiential toys retailing format, added 5
stores to its portfolio during the year. It is now the largest
franchised operation of the London-based iconic retailer.

Widening its store network of brands already in its portfolio,
Reliance Brands opened the first stores for Dune and Stuart
Weitzman during the year.

Jewellery
During the year, jewellery demand remained sluggish
owing to weak macro environment, sticky inflation and poor
consumer sentiment. Unfavourable regulatory landscape
also led to volatility in gold prices. Regulatory changes
severely curtailed gold imports, resulting in scarcity and
spiralling cost of imported gold. The inevitable outcome
was higher gold prices and weak consumer demand.

Reliance Digital Express store

Growth plans
Format developments
Offerings in the portfolio were consistently re-evaluated
and as a result some key developments were witnessed:

In line with emerging scenarios, the business withdrew
its offering of TimeOut in the books and music category.

The books and music industry is undergoing consistent
evolution catalysed by technology and the way
consumers perceive these categories in a technology-
driven era.

Reliance Retail recognised the growing
influence
of electronic information media on this category.
Therefore, Reliance Retail realigned its offerings in
this segment and discontinued the books and music
format.

b) Another key development at Reliance Retail during the
year was the discontinuation of the non-vegetarian
food offering, ‘Delight’, echoing consumer sentiments.

Reliance Retail is in a unique position to capitalise on the
growing opportunity in India. Continued expansion is the
way ahead. The roadmap is clear -- it will be achieved by
growing in existing markets and foraying into unexplored
markets. The objective is simple, ‘Elevating Lives and
Rekindling Aspirations’, for all Indians.

Reliance Jewels was focused on consolidating operations of
its portfolio of over 50 stores. The objective was to improve
its performance against various operational parameters and
build a robust growth platform. Several new product lines
were introduced during the year.

The business is poised to launch multi-channel shopping in
the coming year. The potential of e-commerce combined
with the network of physical store locations will offer
tremendous choice and convenience at a great value to the
consumer.

Relaxation of control on gold imports and reduction in
import duty shall be the key growth catalysts in the coming
period.

Digital sector would be one of the growth verticals for the
coming year. Expansion of Digital Express Mini format to
newer geographies that represents potential for mobility
devices would be a priority for the Company. To augment
this growth, ResQ would expand its presence and enable

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more and more consumers to experience and benefit from
the interplay of communication and technology.

Reliance Market would remain a priority for network
expansion as it continues to empower the kiranas and helps
the farmers and small manufacturers to benefit from the
modern distribution system.

RELIANCE JIO INFOCOMM
Operating environment
From less than 5 million mobile users in 2001, India has
grown to more than 893 million mobile users as of January
2014 (Source: TRAI) achieving more than 72% teledensity.
However, the growth in broadband connections has not
been commensurate with the enormous growth of India’s
telecommunication industry. India has only around 14.5
million broadband (Source: TRAI) connections, excluding
internet access by wireless phone subscribers, which is very
low compared to other European and Asian countries.

Spectrum acquisition and infrastructure tie
ups
RIL’s subsidiary, Reliance Jio Infocomm Limited(RJIL) 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, in the recently concluded spectrum auctions,
RJIL successfully acquired 1800 MHz spectrum across 14
key circles to strengthen in-building coverage in LTE. 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
In
October 2013, RJIL received Unified License for all 22 service
areas across India and became the first telecom operator
in the country to get pan India Unified License. The license
allows RJIL to offer all telecom services including voice
telephony under a single license. RJIL has migrated its
existing ISP license along with BWA spectrum to the Unified
License to provide all services allowedunder the license.

interfaces and entertainment.

RJIL was allotted Mobile Switching Centre Code (MSC),
Mobile Country Code (MCC) and Mobile Network Code
(MNC) for mobile access services across all 22 circles by the
Department of Telecommunications (DoT) providing it with
about 22 million mobile phone numbers across India.

In line with the Government’s policy decision of delinking
spectrum allocation from the licenses and offering access
spectrum based on auction process, the GoI has been

conducting spectrum auctions for the access spectrum
from time to time. In the recently concluded spectrum
auction, RJIL successfully acquired the right to use spectrum
in the 1800 MHz band in 14 key circles across India at a total
cost of ` 11,054 crore. This spectrum has been acquired
in all metro and Category A circles and all key Category B
and C circles over a contiguous block of 5 MHz. With this
acquisition, RJIL will be the holder of the largest quantum
of liberalised spectrum (spectrum in any band can be used
for delivering any services deploying any technology). With
the longest residual spectrum life, RJIL plans to use this
1800 MHz spectrum, in conjunction with its pan India 2,300
MHz spectrum to address the expected surge in demand for
digital services as well as to enhance in-building coverage.
RJIL plans to provide seamless 4G services using FDD-LTE on
1800 MHz and TDD-LTE on 2300 MHz through an integrated
ecosystem.

Reliance Jio Infocomm Pte. Limited, Singapore, a subsidiary
of RJIL, was granted a Facility Based Operator (FBO) license
in Singapore which will allow it to buy, operate and sell
undersea and/or terrestrial fibre connectivity, set up its
internet point of presence, offer internet transit and peering
services as well as data and voice roaming services in
Singapore.

RJIL has adopted a partnership based model for telecom
infrastructure for 4G wireless and fibre based high speed
broadband services.

In line with this strategic intent, RJIL and its wholly owned
subsidiaries have finalised the following partnerships for
infrastructure sharing:

zz Agreement with Bharti to utilise a dedicated fibre pair
on Bharti’s i2i submarine cable between India and
Singapore.

zz A construction, maintenance and supply contract for “Bay
of Bengal Gateway” cable system to provide connectivity
between South East Asia, South Asia and the Middle East
among RJIL, Telekom Malaysia Berhad (TM) (Malaysia),
Vodafone Group (UK), Omantel (Oman), Etisalaat (UAE)
and Dialog Axiata (Sri Lanka)

zz Agreements with Reliance Communications and its
affiliates for sharing of their inter-city fibre network,
intra-city fibre network, and tower infrastructure

zz Agreement with Bharti Infratel to share their tower

infrastructure

zz Agreement with Viom Networks to share their tower

infrastructure

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ecosystem across the globe. RJIL has been actively involved
in developing the ecosystem for LTE phones in India,
working with renowned OEMs, ODMs and chipset vendors
on end-to-end device design and engineering. RJIL is
ensuring the tight integration of these devices with Jio’s
network infrastructure, platforms and applications portfolio.

Product experience pilots underway
RJIL is currently conducting extensive field tests in Navi
Mumbai, Jamnagar and other locations on integration of
devices with its network, platform and services, to provide
seamless experience to customers. RJIL has finalised or is in
the process of finalising agreements with OEMs and ODMs for
LTE devices and is working with its partners on certification,
validation and quality assurance. RJIL is committed on
innovation, design and providing technologically advanced
devices at affordable prices.

RJIL has exhibited some of the devices developed, at the
Techfest event at IIT Mumbai campus and MWC, Barcelona.
Visitors were able to experience benefit of high speed
wireless connectivity for hand held devices (smart phones
and tablets) over a blend of LTE and Wi-Fi networks. Jio
conducted trials of some consumer ‘beta’ testing experience
so as to improve the commercial product through the
feedback received from users.

RJIL launched free Wi-Fi hot spots in 8 locations at
Ahmedabad and 9 locations at Baroda and Surat. High speed
internet trials have been provided to over 55,000 unique
devices since the launch. Users are provided 72 hours of free
usage which can be extended through reactivation. Users
are served by on-ground teams deployed in each of these
locations and central call centres to facilitate connectivity
to Jio Wi-Fi.

Reliance Jio - Field testing

Technology framework
LTE
LTE (Long Term Evolution) has globally emerged as the
technology of choice to deploy next generation mobile
networks. Operators across the world are deploying mobile
networks using LTE to meet the explosive demand for
mobile data services. Almost 44% of world’s next generation
LTE networks are deployed in the LTE-FDD 1800 MHz band.

RJIL plans to use 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 wire-line, to offer
comprehensive broadband solutions to consumers, small
businesses, enterprises, government and other entities.

VoLTE
RJIL is looking to provide advanced 4G voice calling using
VoLTE (Voice over LTE) as a technology to offer high quality
voice calls over its 4G network. At Mobile World Congress
2014
in Barcelona, RJIL showcased LTE-TDD
interoperability use case with Chinese giant China Mobile.

(MWC)

RJIL is deploying an enhanced packet core network to
create futuristic high capacity infrastructure to handle huge
demand for data and voice. In addition to high speed data,
the 4G network will provide voice services from and to non-
RJIL networks.

High speed broadband over Fibre (FTTx)
In addition to 4G wireless services, RJIL is rolling-out high
speed internet services via FTTx in over 900 cities/towns.
The high speed fibre connectivity will enable RJIL to provide
a wide gamut of digital services across various sectors.

service providers,

RJIL has finalised key agreements with its technology
partners,
infrastructure providers,
application partners, device manufacturers and other
strategic partners for the project. It aims to create a digital
ecosystem 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 the 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.

The LTE ecosystem is gaining traction worldwide as more
devices are being launched to strengthen the device

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RELIANCE HARYANA SEZ LTD
Reliance Haryana SEZ Ltd (RHSL), is a JV between RIL’s wholly
owned subsidiary, Reliance Ventures Limited (RVL), and
Government of Haryana through Haryana State Industrial &
Investment corporation Ltd (HSIIDC) for developing SEZs /
Model Economic Township project and other infrastructure
facilities in Haryana. Infrastructure Leasing and Financial
Services Limited (IL&FS) became a strategic partner in the
MET project in January 2011.

In view of the economic scenario the development of
SEZs became unviable and in January 2012, RHSL offered
to return 1383.68 acres of land acquired from HSIIDC for
setting up SEZs. HSIIDC is in the process of taking back said
land from RHSL and exit the JV.

RHSL has commenced development of the phase I of the
Model Economic Township and units of Panasonic and
Denso are already operational. Land consolidation is in
the process and it is expected that over the next one year
the Company will be applying for the development of
approximately 1000 acres of land.

RHSL has engaged itself in various CSR activities in the field
of health care by providing mobile health services to 18
villages, free eye and dental camps, women empowerment
and training, technical education and skills development
and creation of village infrastructure in the project area.

ENTERPRISE RISK MANAGEMENT
RIL actively stimulates entrepreneurship throughout the
organisation and encourage its people to identify and
seize opportunities. The current economic environment
in combination with significant growth ambitions of the
Reliance Group carries with it an evolving set of risks. RIL
recognises that these risks need to be managed to protect its
customers, employees, shareholders and other stakeholders
to achieve its business objectives and enable sustainable
growth. Risk and opportunity management is therefore a
key element of the overall RIL strategy. This section provides
an overview of the key strategic risks, the RIL risk & control
framework, and its approach to risk management.

Creating Value through Risk Management
RIL operates in diverse industries and global markets and
therefore requires a balanced approach to risk management.
An integrated system of risk management and internal
controls framework which is tailored to the specific RIL
segments and businesses is deployed taking into account
various factors such as the size and nature of the inherent
risks and the regulatory environment of the individual
business segment or operating company. This framework

to allow RIL
undergoes continuous
management to optimise its management of risk exposures
while taking advantage of business opportunities.

improvements

RIL’s View on Risk
Risk Appetite
RIL’s risk appetite is linked to its strategic approach and is
based on the stance it has taken across five areas:

zz Strategic: RIL manages strategic risk in the pursuit of
profitable growth in both mature and emerging markets.
Given the volatile markets and economic climate in
which it operates, the adaptability of its people, its
service offering and its infrastructure are key

zz Operations: To strive to minimize all people and safety
risks and take a balanced approach to other operations
risks, taking into account the risk and reward profile of
key business decisions

zz Financial: To maintain a prudent financing strategy,
even when undertaking major investment and therefore
taking controlled risks in this area

zz Reporting: RIL believes that accurate and reliable
information provides a competitive advantage and is
key to effective management of its business. It therefore
accepts minimal risk in relation to reporting risks

zz Compliance: To comply with laws and regulation is
fundamental to maintaining its license to operate in the
various industries that it operates in

Risk Factors
RIL’s focus is on those risks that threaten the achievement of
business objectives of the Group over the short to medium
term. An overview of these risks is provided hereafter,
including the actions taken to mitigate these risks and any
related opportunities:

Strategic Risks
Prices and Markets
RIL’s financial performance is subject to the fluctuating prices
of crude oil & gas and downstream petroleum products.
Prices of oil & gas products are affected by supply and
demand, both globally and regionally. Factors that influence
the supply and demand include operational issues, natural
disasters, political instability, economic conditions etc. For
example lower prices will mean lower revenues for RIL’s
upstream production and as a result the long term projects
may become less profitable. Additionally, this may also have
the impact on reserves booking. Prolonged unfavourable
conditions could also result in, cancellation of projects

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or impairment of assets. Since RIL operates an integrated
hydrocarbon business some of these risks can be offset by
gains in other parts of the Group. In addition, RIL proactively
hedges these exposures.

Competitive Forces
While RIL seeks to compete on the basis of product
differentiation, it operates in commodity-type markets. It is
therefore important to manage its costs to ensure it has an
edge in pricing over its competitors.

Surplus refining capacity in India, augmentation of refining
capacities by PSUs and the additions of new refining
capacity in Asia, notably in China and the Middle East will
increase competition in the region potentially impacting
GRM in its Refining and Marketing business. As a risk
mitigating strategy, RIL continues to diversify its product
portfolio and also develop new export markets. It is also
investing in projects to strengthen cost competitiveness.

Brand and Reputational risks
RIL is one of the leading brands in the country, hence its
brand and reputation is an important asset. The Group has
defined the Code of Conduct and Operating Model that
govern how all employees in RIL and its Group companies
operate. Compliance with these codes of conduct,
organisational policies and other regulatory compliance
to protect
and governance
Reliance’s reputation.

requirements are key

Political instability, acts of terrorism, government
policies
Social or civil unrest, within India or internationally can
have an impact on the Group’s operations. Potential
developments that may impact its business operations
include government pricing policy of petroleum products,
piracy on high seas, any changes to Indo-US economic
policy, acts of terrorism or civil unrest that may have an
impact on safe operation of its facilities and transportation
of its products.

Political unrest and tensions in the Middle East, North
Africa can cause short term fluctuations in crude oil prices
and crude availability. To mitigate the risks resulting from
non-availability of crude and feedstocks, the Company
has a diversified crude sourcing strategy from multiple
geographies (Asia, Middle East, West Africa, Latin / South
America and North Africa) under both short term and long
term arrangements.

Operations Risks
Changing Technology and Obsolescence Risk
The changing technologies and the natural ageing of
existing facilities pose the risk of production plants
becoming obsolete and uneconomic. Aged plants are
prone to unplanned shutdowns and increased maintenance
and operating costs. Deployment of new technologies and
on-going maintenance processes are key to enhancing the
reliability of operations and reduction in operating costs
while improving the safety of operating conditions while
extending the useful life of assets.

Evolving HSSE risks
The RIL Group is exposed to a wide spectrum of health,
safety, security and environmental risks (HSSE), given the
diversity and complexity of the industries RIL operates in.
The exploration and production of oil & gas, transport of
the hydrocarbons and their further refining and processing
is regulated by various HSSE related regulations across the
geographies where RIL operates. A major HSSE incident,
such as fire, oil spill, security breach can result in loss of
life, environmental degradation and overall disruption in
business activities. RIL follows an HSE Policy that “Safety of
persons overrides all production targets”, which incentivises
all employees to strive for excellence in safety management
for the benefit of its employees, customers and the
communities in which they live. RIL has set itself the goal
of ‘zero injuries and accidents‘. The Group conducts HSSE
audits to get assurance on HSSE managements frameworks
protocols and regulatory compliances.

Financial Risks
Treasury Risks
Treasury risks
include, amongst others, exposure to
movements in interest rates and foreign exchange rates.
The Group is exposed to fluctuating dollar and euro prices.
While a majority of the Company’s purchases and sales are
denominated in US dollars, the Company is exposed to
currency risk where the realisation of sales proceeds is in
local currencies.

The Group seeks to maintain a financial framework to ensure
that it is able to maintain an appropriate level of liquidity
and financial capacity. This framework constrains the level of
capital at risk for the purposes of position taken in financial
instruments. RIL uses debt instruments like commercial
paper and bonds to raise capital. The main Treasury risks
include interest rate risks and foreign exchange risk.

Interest Rate Risks
RIL borrows funds in the domestic and international markets
to meet long-term and short-term funding requirements. It

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is subject to risks arising from interest rate fluctuations both
LIBOR and Rupee based interest rates since majority of RIL’s
borrowing are floating rate debt.

Foreign Exchange Risks
RIL has majority of operations in the markets which are
priced in directly or indirectly in US dollars. As a result the
functional currency for most of the RIL Businesses is dollar
with a reporting currency in INR. The major currency to
which RIL is exposed is US Dollar. Consequently RIL is
exposed to varying levels of foreign exchange risk when it
enters into transactions which are not denominated in INR,
when foreign currency monetary assets and liabilities are
translated at the reporting date and as a result of holding
net investment in operations which are non-INR.

Commodity Related Risks
Commodity risk management is an important component
of RIL’s supply and distribution function. The Company is
exposed to risks arising from:

zz Timing risk resulting from mismatch between pricing in
of crude and feedstocks and pricing out of petroleum
products

zz Absence of liquidity in the market and ability to hedge

known exposures

zz Basis risk resulting from differences between the pricing
basis for the physical purchases / sales and the pricing
basis of the underlying hedging instruments used to
hedge the financial exposures created from the physical
trades

The Company has put in place Treasury and Commodity
risk management policies which provide the framework for
decision making with respect to currency exposures and
commodity trading positions.

Reporting Risks
Estimation of provisions and reserves
The estimation of proved oil & gas reserves involves
judgements and determinations based on
subjective
available geological, technical, contractual and economic
information. These estimates may change depending on
availability of new information from production and drilling
activities, or changes in economic factors like change in
pricing of crude oil, projection of foreign exchange rates,
natural decline in the field and unexpected geological
complexity etc. The published provisions and reserves may
also be subject to correction due to errors in application of
published rules and change in guidance. Any downward
adjustment would indicate lower production volumes in
the upstream business.

Compliance Risks
The evolution of the regulatory environment across the
globe has resulted into increased regulatory scrutiny that
raises minimum standards required at Reliance. This signifies
the alignment of corporate performance objectives, whilst
ensuring compliance with regulatory requirements. RIL
recognises that regulatory requirements can be both a
threat and a source of competitive advantage and therefore
it will:

zz Strive to understand the changing regulatory standards
so as to strengthen its decision making processes and
integrate these in its business strategy of each of the
industries in which it operates

zz Drive business performance through the convergence
of risk, compliance processes and control mechanisms
to ensure continued operational efficiency and
effectiveness

zz Exploit significant opportunities arising out of changing
regulatory landscape to realign business processes and
strategies

How RIL Manages Risk
Reliance’s Board of Directors is responsible for the direction
and oversight of the Group, its governance principles as
well as the establishment of a system of internal control
to mitigate material business risks. The Reliance Executive
Committee is responsible for the design and operation
of the Reliance System of Internal Control which includes
Risk Management and Internal Control frameworks and for
reviewing its effectiveness.

The System of Internal Control is designed to manage
the risks that may prevent RIL from achieving its business
objectives and to provide reasonable assurance that all
material misstatements, frauds or violations of laws and
regulations will be prevented. The RIL system of internal
control which includes:

a) Governance Structures and Policies

Establishing and communicating a common vision,
mission, values and strategies by top management
(strategy setting)

Establishing
performance
appropriate
management systems and processes to drive the
achievement of Group objectives (performance
management)

Establishing expected and acceptable behaviours
while pursuing the achievement of business
objectives through a code of conduct (tone from
the top)

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Delegation of authorities which establishes
levels of autonomy at the various levels in the
organisation

b) Risk Management and Internal Control

Policies and procedures which codify requirements
with respect to the management of risks and
opportunities

Risk management processes which manage the
key business risks of the Group and each Business
segment

Operational controls embedded within
the
business processes to enable the achievement of
business objectives

Information systems which support the decision
making processes at all levels of the organisation

Independent Internal and External Assurance

d) Board and Business Oversight mechanisms

Governance Structures and Policies
The setting of clear and effective business objectives for
the Group is a key aspect of the system of internal control.
RIL’s Group strategic framework sets out its Group strategy,
financial framework and how it manages risk. RIL has clearly
defined its vision, mission and core values. Its Group strategy
focuses on safety and centres on playing to its competitive
strengths. Senior leadership plays a critical role in ensuring
conformance with RIL’s stated business principles and
core values.

Risk Management and Internal Control
RIL has introduced several improvements to Integrated
Enterprise Risk Management, Internal Controls Management
and Assurance Frameworks and processes to drive a common
integrated view of risks, optimal risk mitigation responses
and efficient management of internal control and internal
audit activities. This integration is enabled by all three being
fully aligned across Group wide Risk Management, Internal
Control and Internal Audit methodologies and processes
supported by a common SAP GRC platform. The RIL Group
has adopted the following key risk mitigation and internal
control design principles and strategies:

zz Risk management and Internal Control frameworks
are designed and
implemented to manage rather
than completely eliminate the risk of failure to achieve
business objectives

zz Maximising the Embedding of Controls in systems
and business process designs (configured automated
checks and balances, configured delegations, as well as

automated monitoring with alerts and shut outs where
necessary) to reduce the resource burden of controls.

zz Dual Ownership for Risk Management – Business
segments have primary accountability for business risks
but Corporate Functions (Finance, HR, IT) operate and
support Business segments in ensuring an effective
control framework. The Business and Functional CEOs
are the key owners of the control framework for their
respective Business or Function.

zz A “Three-Not-Out” risk mitigation model is applied in
each high exposure area with multiple checks (initiate,
validate, approve) and hardware
for
enhanced process safety.

redundancy

zz In-line and off-line audits of significant risk areas and
controls deployed through systems, processes and
other operational activities. These assurance activities
are designed to provide reasonable but not absolute
assurance against material misstatement or loss.

zz Where a significant risk materialises into a significant
business incident, these are to be managed through the
Groups Business Continuity, Emergency Response and
Crisis Management Processes.

These elements increasingly provide the “foundations”
of the Reliance Risk Management and Internal Control
Frameworks.

RIL’s Risk Management Approach

1) System &
Process
embedded

2) Dual

ownership

Risk
Areas

3) “Three-not-out”

protection
applied

4) In-line and
off-line
audits

Independent Internal and External
Assurance
Effective Risk Management and Internal Audit functions
are key elements of the RIL governance framework. Risk
management ownership is fully embedded in the Business
whilst the Risk Management function aligns, supports and
facilitates the risk management processes of the Group. The
Internal Audit Function provides assurance to the Board

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and Senior Management in the various Businesses and
Functions that the system of internal control deployed is
appropriately designed to manage the key business risks
and is operating effectively.

Internal Controls and
Governance, Risk Management,
Internal Audit are aligned at Group level to enable full
alignment and integration of integrated methodologies,
processes and systems. The
Internal Audit and Risk
Management functions report directly to the Chairman and
Managing Director with direct access to the Chairman of the
Audit Committee. The role of Internal Audit, its mission and
goals, are set out in the Company’s Internal Audit Charter,
which has been approved by the Audit Committee and
Executive Committee.

Board and Business Oversight Mechanisms
(Business Risk and Assurance Committees)
During 2013, Business Risk and Assurance Committees
(BRACs) were established to provide the necessary formal
structures to implement the Group’s Risk Management
policies and to facilitate the risk management process for
the respective Businesses and Functions. The BRACs provide
a platform to:

zz Integrate multidisciplinary

views on

the

key

organisational risks

zz Prioritise the most relevant risks to the Business or

Function

zz Align risk management, internal control and assurance
activities across the Three Lines of Defence: Business and
Functions, Controlling and Compliance Functions and
Internal Audit

The BRAC for each Business or Function integrates the senior
leadership representation of the business, Risk management
and Internal Audit Functions around a common agenda
internal
covering governance, risk management and
audit matters. The Committee meet on quarterly basis to
review and assess the effectiveness of the respective risk
management and
internal control frameworks. BRACs
provide an integrated view of risk to the Audit Committee
and Executive Committee on a quarterly basis.

INNOVATION, RESEARCH &
DEVELOPMENT
Innovation
for organisational
sustainability, but also vital for long-term value creation.
Innovation can happen as one all-encompassing stroke
or in small incremental steps, both of which can take the
business to the next level.

is not only

important

RIL believes in pushing boundaries to achieve business
innovation. Innovation can mean elevation in the level
of technology being used, greater diversity or resilience
in the business model being pursued or application of
higher intelligence and deeper insight in the processes
being followed in resource utilisation. RIL has shaped an
organisational culture that fosters innovation at every
single step.

The drive for innovation is led by the Reliance Innovation
Council comprising Nobel laureates, global strategists
and iconic thought leaders. The Council meets annually
to give direction to RIL’s innovation agenda. The Reliance
Innovation Leadership Centre
(RIL-C) manages the
innovation ecosystem with the aim of making innovation,
a way of life at RIL. The ecosystem approach defines
innovation in the realm of people, processes, systems,
technology, new businesses and structures. RIL-C identifies
innovation opportunities across the organisation and
designs, develops and deploys innovation programmes.
For example, the ‘Beyonders’ programme aims at grooming
innovation
leaders an
leaders by giving potential
opportunity to innovate, as well as training on systematic
methods of innovation.

The Leading Expert Access Programme (LEAP) ‘democratises
inspiration’ by providing a platform for interaction with
luminaries and accomplished leaders from diverse areas.
Powered by creative energies of thousands of its people, RIL
will surely succeed in creating new exponential value, with
the ultimate aim of reinventing the way people live their lives.

Research & Technology and Innovation are two key focus
areas to enhance RIL’s value creation, identifying new
platforms for its sustainable growth. ’Reliance Technology
Group’ (RTG), RIL’s centre for research and technology
activities, focuses on (i) new products, processes and catalyst
development to support existing business, and create
breakthrough technologies for new businesses, and (ii)
advanced troubleshooting, support to capital projects, and
profit and reliability improvements in manufacturing plants.

To accelerate research efforts at RIL, a new Research Centre
has been recently commissioned at the Reliance Corporate
Park (RCP) in Navi Mumbai. The facility will be the central
hub of research and new technologies. It is a world-class
facility providing state-of-the-art equipment for hundreds
of RIL’s scientists and engineers. In R&D, RIL has broken
new ground to develop game-changing products and
technologies to add value to existing businesses, and create
new business opportunities.

In Refining, RTG continues to pursue research in coking,
hydro processing, fluidised catalytic cracking (FCC), crude

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processing, molecule-based process optimisation and value
addition from low-value refinery streams.

In Petrochemicals, RTG is providing technology support to
olefin crackers, polymers, fibre intermediates, linear alkyl
benzene (LAB) and polyester. The focus areas include:

a) Efficient asset utilisation

b) Development of specialty product grades/materials/

catalysts

c) Value addition to by-product streams and

d) Leveraging opportunities at the chemicals/oil interface

Several projects in the following areas have been completed
or are on-going across the refining and petrochemicals
businesses:

zz Product development and improvements

zz Process development and improvements

zz Energy efficiency

zz Enhancing product value to customer

zz Application development

zz Catalyst development

zz Additive development

zz Automation technology

For more detail refer the Technology Absorption section in
the Directors Report.

RTG also provides advanced technical support through
computational fluid dynamics and multiple advanced
simulation tools. The modelling and simulation group
is engaged in resolving several important refinery and
petrochemicals reliability issues, leveraging computational
fluid dynamics and other simulation tools.

India’s agro residue potential is being recognised only
recently. RIL’s bio-based chemicals/fuels strategy aims
to
large quantum of agro-residue
availability as a feedstock, and help improve the country’s
energy security.

leverage

India’s

Several technologies have been developed
the following:

including

1. Technologies to convert the agri-residue into fuel and

chemicals

2. Developing Jatropha-based biodiesel

3. Project with CSIR on indigenous ’polymer electrolyte
membrane’ (PEM) fuel cell technology development

Collaborative research projects with IIP Dehradun, IIT
Mumbai, PDPU Ahmedabad, Delhi University, Himachal
Pradesh Horticultural University, IICT-Hyderabad, Shah-

Schulman Centre for Surface Science and Nano Technology,
DDU-Nadiad and IIT Kharagpur are being undertaken. An
industry programme with Tulsa University is also underway.

Clean Development Mechanism (CDM)
RIL has built
to develop Clean
in-house capacity
Development Mechanism (CDM) projects and obtain CDMs
registration and issuance in the form of Certified Emission
Reductions (CERs) from the United Nations Framework
Convention on Climate Change (UNFCCC).

RIL is continuously working towards the development
and
implementation of climate change mitigation
projects, primarily through energy efficiency and use
of cleaner fuels. This year, RIL has taken up various
initiatives to deploy renewable energy like rooftop solar
photovoltaic projects, biogas generation project and
wind resource assessment to explore possibility of wind
turbines installation.

SMART TRANSFORMATION AT RELIANCE
Reliance is working to deliver a large scale, multi-year
business transformation program called STAR (Smart
Transformation At Reliance). 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”.

Coverage of STAR
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, Research and Development and Security.

Development during the year
Progress has been made to integrate process models with
the system solution landscape to ensure integrated process
change management. 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 950, inclusive of
RIL employees and external consultants have been working

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on this initiative during FY 2013-14 to make it successful.
Thus far, significant progress has been made in the following
areas:

Process
1. Completed basic and detailed design,

including
business blueprinting for 265 end-to-end business
processes.

2. Detailed designing and integration of all key end-to-

end improved business processes.

3. The first SAP systems implementation, which fully
integrates processes, has been successfully delivered
for the Exploration & Production business.

Data
4. The design and implementation of a robust data
architecture and data to support integrated business
processes.

People
5. RIL has taken strong steps

forward

its HR
in
its STAR Business
transformation, a key part of
Transformation programme. Under the banner of R-HR
Transformation, the programme is steeped in a desire
to drive both a culture change in Reliance, as well to
embrace new business processes used and advocated
by the world’s top multi-national companies. The
objective of this transformation is to achieve Reliance’s
vision of being:

“A modern, progressive people environment, where
purpose-driven talent are attracted and motivated by a
consistent meritocratic HR framework and where high
quality leaders capable of realising RIL business goals,
are identified, encouraged, and rewarded.”

Focus for next year
The focus for FY 2014-15 will be to continue with the delivery
momentum and begin full deployment of transformed
business processes for the Refining and Marketing and
Petrochemical businesses, including all support functions,
and Wave 2 scope of the HR Transformation scope which
will focus on talent management processes. When fully
deployed, all of these transformation projects will create a
foundation to support and enable us to propel and be ready
for the next phase of growth.

HUMAN RESOURCE DEVELOPMENT
Human resource accounting
RIL firmly believes that growth of core and fringe
stakeholders’ will foster its growth opportunities. RIL aims

to develop the potential of every individual associated with
the Company as a part of its business goal.

As on 31st March, 2014, 23,853 employees are on RIL’s payroll.
The current workforce breakdown structure has a good mix
of employees at all levels.

Respecting the experienced and mentoring the young
talent has been the bedrock for RIL’s successful growth.
RIL’s employees’ age bracket represents a healthy mix of
experienced and willing-to-experience employees.

Human resource transformation
Human resources are the principal drivers of change.
They push the levers that take futuristic businesses to the
next level of excellence and achievement. RIL focuses on
providing individual development and growth in a work
culture that enables cross-pollination of ideas, ensures
high performance and remains empowering. At RIL lot of
focus has been given to HR Transformation activities to
revamp the HR organisation structure and processes. The
new human resource management systems and processes
are designed to enhance organisational effectiveness and
employee alignment. The result is that the Company is able
to work towards market leadership in all the businesses that
it operates.

During 2013-14, focus has been on transforming five areas
of Organisational Hierarchy, Performance Management,
Differentiated Rewards, Delegation of Authority, and
HR Model.

Any transformation journey needs a significant change
management effort. RIL’s focus has been to ensure
the absorption of change through proper modes of
communication, such as town-hall discussions, emails,
webinars, and webcasts, among others. Focused efforts
are being taken to promote ‘Acceptance’ and ‘Adoption’ as
a part of facilitating change management. The consistent
measurement of change management has enhanced
effectiveness of change management efforts. As a part of
change management, a Human Resources portal has been
launched for all employees to provide them information
regarding all HR transformation initiatives.

Significant efforts have gone into developing a strong
leadership potential across RIL locations by imparting
leadership qualities in employees through highly focussed
training programmes. A lot of impetus has been given to
e-learning which also simplifies the learning process and
puts employees on an accelerated learning path.

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Talent pipeline
RIL hires best-fit talents to meet the present and future
talent requirements. Over the last year, the Company has
hired 2,914 employees in different roles.

The Reliance Accelerated Leadership Programme (RALP),
institutionalised three years ago, continues to be a
centrepiece of RIL’s future leadership pipeline. Two batches
of RALPs have been already hired, and this year, the focus
was on ensuring their assimilation into the organisation.

During the current fiscal, RIL hired 57 management
graduates and 751 graduate engineers from India’s leading
institutes as a part of RIL’s campus recruitment initiative. The
numbers are likely to increase in the future with RIL’s foray
into new-age businesses.

Learning and development
RIL strives to keep its employees updated with the latest
cutting edge developments in their fields of work and
promote them to take up new challenges outside their
familiar domains. Cross-functional learning and developing
managerial capabilities is the crux of RIL’s learning agenda.
The 70:20:10 principle has been adopted across all training
initiatives. RIL has focussed on giving leaders three broad
categories of experiences, 70% through the challenging
work on hand, 20% through interaction with people and
10% from training activities. This combination has helped
RIL’s employees in getting to learn things as they grow in
their career through their day-to-day activities.

RIL’s imparted a total of thirteen lakhs sixty thousand man-
hours of trainings to its employees from both internal as
well as external subject matter experts till 31st March, 2014.
RIL also ensures that all its contract workforce is well trained
on Health, Safety and Environment before commencing any
work.

The Learning and development team focused on developing
and imparting training to implement elements of Employee
Value proposition that was created last year.

(Procurement and Contract),

The academies of Information Technology, FC&A (Finance,
Compliance and Accounts), GMS (Group Manufacturing
Services), P&C
Institute
of Leadership and HR were strengthened by inducing
new talent. Their effectiveness was measured to ensure
improvement. New academies for E&P, Petrochemicals,
Refining and Security are focus areas for launch.

The broad categories of training include:

zz Behavioural
zz Functional / Domain
zz Business related

RIL partnered leading institutions and professional bodies
worldwide, including Harvard Business School, Bersin,
Corporate Executive Board, among others in pursuit of
knowledge building and develop world-class experience
and expertise.

Diversity
RIL ensures diversity in workforce by promoting employees
to maintain their identity, while adhering to the Company’s
values and behaviour. Concentrated effort on gender and
age diversity has been initiated through workshops and
training programs.

RIL’s total workforce strength as on 31st March, 2014 is 23,853
including 1149 female employees. RIL employs people from
23 nationalities.

A concentrated effort on gender and age diversity has been
initiated through workshops and training programmes.

A concerted effort to empower women was made through
the following initiatives:

zz Policy for prevention of sexual harassment was rolled out

zz Internal complaints committees, as per legal guidelines,

were set up at major locations

zz Diversity and inclusion council was set up

Human rights
It is RIL’s firm belief that respect for human rights represents
the foundation for good corporate governance. RIL’s units
maintain 100% compliance with local and national laws
regarding ethics and human rights. RIL also strives to
comply with all global standards and norms. RIL adheres
to the principles of United Nation’s Universal Declaration of
Human Rights. Every employee is exposed to these topics
through organised training programmes.

Quality
RIL continued its journey towards achieving excellence by
instilling employees with a high regard for quality. More
employees are being trained on Six-Sigma as a part of this
overarching initiative.

This year has seen 19,428 man hours of training being
provided to employees on Six-Sigma. During the year, 78 six-
sigma projects have been executed, leading to annualised
savings of ` 83.1 crore.

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AWARDS AND RECOGNITIONS
Some of the major awards and recognitions conferred on
RIL are:

Leadership
RIL’s Chairman and Managing Director, Shri Mukesh D.
Ambani, received the “NDTV 25 Greatest Living Legends
of India Award”, presented by the Honourable President of
India on 14th December, 2013

CSR
zz Oliver Kinross’s Asia Oil & Gas Award 2013 for Corporate
Social Responsibility - Company of the Year (RIL KG-D6)

zz “Best ART (Anti-Retroviral Therapy) Centre Award 2013”
by Gujarat State AIDS Control Society (GSACS) on World
AIDS Day (Hazira Manufacturing Division)

zz Award for leadership excellence in corporate social
welfare/CSR by “The Greatest Corporate Leaders of India”
initiative (Hazira Manufacturing Division)

zz ‘Best corporate social responsibility practices’ and ‘Best
use of CSR practices in manufacturing’ awards (Hazira
Manufacturing Division)

Quality
zz Par Excellence, Excellence and Gold Awards in Quality
Circle by Quality Circle Forum of India (QCFI) (Dahej
Manufacturing Division)

zz IMC Ramkrishna Bajaj National Quality Award 2013

(Jamnagar Manufacturing Division)

zz QualTech Prize 2013 under Manufacturing Category

(Hazira Manufacturing Division)

zz Quality Impact Story board - ASQ (American Society
for Quality) International Team Excellence Awards, ITEA
2013 (Hazira Manufacturing Division)

zz Platinum awards for three projects at the lean six sigma
convention 2013 by Concept Business Excellence Pvt.
Ltd. (Hazira Manufacturing Division)

zz Gold Trophy at State level Quality Circle Convention
2013 by Quality Circle Forum of India (Patalganga
Manufacturing Division)

zz CII Six-Sigma National Award

the
‘Continuous and Bulk Organisations’ category (Vadodara
Manufacturing Division)

for 2013

zz Platinum Award’

in the 2nd Annual Convention of
Concept Business Excellence Pvt Ltd (CBEPL) (Dahej
Manufacturing Division)

Leadership

25 Greatest
Living Legends

of India Award by NDTV
presented to RIL CMD by the
Honourable President
of India

zz Quality Circle ‘Challengers’ won the highest award
‘Excellence Award’ in the International Convention on
Quality Control Circles (ICQCC’13) (Dahej Manufacturing
Division)

zz 4 Gold awards in first annual Quality Circle Convention

(ACCQC 2013) (Dahej Manufacturing Division)

Projects
zz Best Project of the Year - Small category at the Project
Management National Conference, India 2013 (Hazira
Manufacturing Division)

Health, safety and environment
zz Golden Peacock Environment Management Award 2013

(Hazira Manufacturing Division)

zz ‘Most Innovative Environmental Project Award 2013‘
organised by CII, Confederation of Indian Industry for the
project on ’Reduction in Carbon Di-Oxide (CO2) emission
by productive utilisation of recovered CO2 (Hazira
Manufacturing Division)’

zz 12th Annual Greentech Safety Award 2013 gold category
for the petrochemical sector (Nagothane Manufacturing
Division)

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zz Greentech Safety Gold Award 2013

for

safety

performance (Silvassa Manufacturing Division)

zz Golden Peacock National Award for Occupational Health
& Safety 2012-13 in the petrochemical sector (Nagothane
Manufacturing Division)

zz Gold Award in the petrochemical sector in ‘14th Annual
(Nagothane

Greentech Environment Award 2013’
Manufacturing Division)

zz “International Safety Award 2014” with distinction for
Health and Safety Management System performance for
the year 2013 (Jamnagar SEZ refinery)

zz SHRM HR AWARDS 2013 in the ‘Organisational Awards’
category for ‘Employer with Best Employee Health and
Wellness Initiatives’

zz Greentech Environment Award 2014 – Gold Award
level of commitment to environment

for highest
management (Dahej Manufacturing Division)

Energy and water conservation / efficiency
zz Excellent Energy Efficient Unit Award at the CII National

Energy Summit (Hazira Manufacturing Division)

Technology, patents, R&D and innovation
zz Best Practices - Improvements in Manufacturing in the
25th Qimpro Convention 2013 (Runners up) (Patalganga
Manufacturing Division)

zz Petrofed Innovator Award of the year 2012 (Reliance

Technology Group)

zz I.C.C. Award for Excellence in Chemical Plant Design
and Engineering for the year 2012 (Reliance Technology
Group)

zz 3rd National award, 2013 for Technology Innovation
in Petrochemical & Downstream Plastic Processing
Innovation award from Ministry of Chemicals & Fertilizers,
Government of India (Reliance Technology Group)

Retail
zz Asian Human Capital Award 2013

- Special
Commendation Prize for Work Smart - A Business
Excellence and Workforce Enablement Programme
(Reliance Retail Academy)

zz Star Retailer Award - Consumer Durables Retailer of the

year 2013 (Reliance Digital)

zz Excellent Energy Efficiency Unit Award 2013 at CII Energy

Summit (Nagothane Manufacturing Division)

zz India Fashion Forum 2014 - Images Most Admired
Fashion Retail Destination Of The Year (Reliance Trends)

zz Excellence in Energy Conservation and Management
under category Petrochemical sector by Maharashtra
Energy Development Agency
(Patalganga
Manufacturing Division)

(MEDA)

zz International Green Apple Award 2013 by The Green
Organisation, UK for optimisation of Gas turbines
(Jamnagar Manufacturing Division – SEZ refinery)

zz “Best energy efficient unit 2013” by CII (Jamnagar DTA

refinery)

zz Outstanding performance

in energy conservation
award by Southern Gujarat Chamber of Commerce and
Industries (SGCCI) (Hazira Manufacturing Division)

zz Images Retail Awards 2013 - Images Most Admired

Retailer of the year (Reliance Trends)

zz Reliance Trends ranked amongst top 10 “Brands to look

out for in 2014”. (Reliance Trends)

zz Great Place To Work in Retail Industry 2013 (Marks and

Spencer Reliance India)

Sustainability
zz CII-ITC Sustainability Awards 2013

India’s Most
Sustainable Companies (Hazira Manufacturing Division)

zz Golden Peacock Award

for Sustainability 2013.

(Nagothane Manufacturing Division)

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Business Responsibility Report

Section A: General Information about the
Company

1. Corporate Identity Number (CIN) of the Company:

L17110MH1973PLC019786

2. Name of the Company: Reliance Industries Limited

3. Registered address: 3rd Floor, Maker Chambers IV,

222, Nariman Point, Mumbai 400 021, India

4. Website: www.ril.com

5. E-mail id: sustainability.report@ril.com

6. Financial Year reported: 2013-14

7. Sector(s) that the Company is engaged in

(industrial activity code-wise):

Exploration and Production of Oil and Gas, Refining,
Petrochemicals
and fibre
intermediates) and Textiles

(Polymers, Polyester

Industrial
Group

Description

061

062

131

139

192

201

203

Extraction of crude petroleum

Extraction of natural gas

Spinning, weaving and finishing of textile

Manufacture of other textiles
Manufacture of refined petroleum
products
Manufacture of basic chemicals, fertilizers
and nitrogen compounds, plastic 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 that the Company
manufactures/provides (as in balance sheet):

z Transportation Fuels

z Polymers

z Polyester Fibre

9. Total number of locations where business activity

is undertaken by the Company:

z Number of International Locations (Provide
details of major 5): RIL has business activity
undertaken in over 16 international locations. The
major ones are USA, Malaysia, Kenya, Uganda,
Rwanda and Tanzania.

z Number of National Locations: RIL has business
activity carried out in over 50 domestic locations.
The manufacturing divisions are at Allahabad,
Barabanki, Dahej, Hazira, Hoshiarpur, Jamnagar,
Nagothane, Nagpur, Naroda, Patalganga, Silvassa
and Vadodara. The Exploration and Production
(E&P) units are at KG-D6 – Gadimoga and Panna-
Mukta-Tapti. Besides, there are CBM Blocks and
various regional marketing offices.

10. Markets served by the Company – Local/State/
National/International: In addition to serving Indian
markets, RIL exported to 123 countries worldwide
during FY 2013-14.

Section B: Financial Details of the Company

1. Paid up capital (INR): 3,232 crore

2. Total turnover (INR): 4,01,302 crore

3. Total profit after taxes (INR): 21,984 crore

4. Total spending on Corporate Social Responsibility
(CSR) as percentage of profit after tax (%): 3.24%

5. List of activities in which the CSR expenditures

have been incurred:

The major areas in which the above expenditure
has been incurred includes education, healthcare,
rural development, heritage
livelihood support,
conservation, environment and safety initiatives for the
community.

CSR Expenditure

3.24 %

of profit after tax
Spent on Corporate Social
Responsibility

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Section C: Other Details

1. Subsidiary Company/ Companies

The number of RIL’s subsidiary Companies as on
31st March, 2014 was 103.

2. Participation of Subsidiary Company/Companies in

the BR Initiatives of the parent company

its

subsidiary

companies

RIL encourages
to
participate in its group-wide Business Responsibility
initiatives on several topics. All subsidiaries
(BR)
are aligned to the activities under the aegis of
Reliance Foundation. RIL’s subsidiaries like Reliance
Retail Limited and Reliance Trading Limited have
taken part in initiatives across several areas during
FY 2013-14. The areas are farm engagement activities,
training and skill development of youth, community
connect activities and promotion of education, etc.

3. Participation and percentage of participation of
other entity/entities (e.g. suppliers, distributors,
etc.) that the Company does business with, in the
BR initiatives of the Company

RIL collaborates with all relevant stakeholders as part
of the BR initiatives of the company. This includes
suppliers, distributors, local communities, government
and other entities in the value chain. Considering the
spread of RIL’s value chain, at present the number of
entities who directly participate in the BR initiatives
would be less than 30%.

Section D: BR Information
1. Details of Director/Directors responsible for BR

b) Details of the BR Head

Particulars

DIN Number
(if applicable)

Name

Designation
Telephone Number

Details

00001879

Shri Yogendra P. Trivedi

Independent Director
022 - 2363 3600

E-mail id

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 marginalised

P5– Businesses should respect and promote human rights

P6– Businesses should respect, protect, and make efforts to
restore the environment

Details of the Director/Directors responsible for
implementation of the BR policy/policies

P7– Businesses, when engaged in influencing public and
regulatory policy, should do so in a responsible manner

P8– Businesses should support
equitable development

inclusive growth and

P9– Businesses should engage with, and provide value to
their customers and consumers in a responsible manner

K. D. Ambani Vidyamandir, Jamnagar

Social

Responsibility

The Corporate
and
Governance (CSR&G) Committee of the Board of
Directors is responsible for implementation of BR
policies. The following are the members of the
CSR&G Committee:

z DIN Number: 00001879
Name: Shri Yogendra P. Trivedi (Chairman)
Designation: Independent Director

z DIN Number: 00001620
Name: Shri Nikhil R. Meswani
Designation: Executive Director

z DIN Number: 00001982
Name: Dr. Dharam Vir Kapur
Designation: Independent Director

z DIN Number: 00074119
Name: Dr. Raghunath A. Mashelkar
Designation: Independent Director

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Questions

Do you have policy/policies for....
Has the policy being formulated in consultation with
relevant stakeholders?
Does the policy conform to any national /international
standards? If yes, specify? (The policies are based on NVG-
guidelines in addition to conformance to the spirit of
international standards like ISO 9000, ISO 14000, OHSAS
18000, UNGC guidelines and ILO principles)
Has the policy being approved by the Board?
If yes, has it been signed by MD/owner/CEO/appropriate
Board Director?
Does the Company have a specified committee of the
Board/ Director/Official to oversee the implementation of
the policy?
Indicate the link for the policy to be viewed online?

Has the policy been formally communicated to all relevant
internal and external stakeholders?

Does the Company have in-house structure to implement
the policy/policies?

Does the Company have a grievance redressal mechanism
related to the policy/policies to address stakeholders’
grievances related to policy/policies?

Has the Company carried out independent audit/evaluation
of the working of this policy by an internal or external
agency?

Y
Y

Y1
Y

Y
Y

http://www.ril.com/html/aboutus/sustainability_report.html

The BR policies have been communicated to RIL’s key internal
stakeholders. The policies are communicated through this
report and the link provided above. RIL will also explore
other formal channels to communicate with other relevant
stakeholders.
Yes. The Corporate Social Responsibility and Governance
(CSR&G) Committee of the Board of Directors is responsible
for implementation of policies.
Yes. Any grievances or feedback related to the policies can be
sent to sustainability.report@ril.com. The CSR&G Committee
of the Board of Directors undertakes the responsibility of
addressing stakeholder concerns related to BR policies.
The BR policy manual has been evaluated internally. Policies
pertaining to health, safety and environment have also been
audited by external agencies, viz. DNV, LRQA and BVQi.

1The policy is embedded in the Environment policy, Business communication policy and CSR policy.

3. Governance related to BR

Notes

z Frequency of the Board of Directors,

Committee of the Board or CEO to assess the
BR performance of the Company

The CSR&G Committee annually assesses the BR
performance of the Company.

z BR and Sustainability Reports published,
frequency and link of published reports

Initiative’s

RIL publishes its Sustainability Report annually
based on Global Reporting
latest
reporting guidelines. RIL has been publishing GRI
A+ application2 level check reports since 2005-06.
The last published Sustainability Report for FY
2012-13 and all previous reports are available at
http://www.ril.com/html/aboutus/sustainability_report.html

2Declaring an Application Level results in a clear communication
about which elements of the GRI Reporting Framework have been
applied in the preparation of a report. The reporting levels C, B and
A reflects an increasing application or coverage of the GRI Reporting
Framework while the ‘+’ sign signifies that the report is externally
assured.

Section E: Principle-wise performance

Principle 1 - Ethics, Transparency and
Accountability

Businesses should conduct and govern themselves with
Ethics, Transparency and Accountability

Conducting business on the pillars of ethics and
transparency fosters trust of stakeholders. RIL, believes
that image and reputation are vital in adding value to the
organisation.

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1. Coverage of policy relating to ethics, bribery

and corruption (e.g. Joint Ventures, Suppliers,
Contractors, NGOs etc.)

RIL’s policy on bribery and anti-corruption covers all
individuals working with it, and its subsidiaries at all
levels and grades. This mechanism includes directors,
senior executives, officers, employees
(whether
permanent, fixed-term or temporary) and third parties
including 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. Stakeholder complaints received in the past
financial year and percentage of complaints
satisfactorily resolved by the management

As specified in the Corporate Governance Report,
3,322
investor complaints were received during
FY 2013-14. Only one complaint was outstanding, as on
31st March, 2014. In addition to this 3,164 customer
complaints were
received out of which 3,126
were successfully resolved as on 31st March 2014.
Subsequently most of these complaints have been
resolved.

As part of the business responsibility policy manual, a
policy on stakeholders’ grievance redressal has been
instituted. This makes provision for all the stakeholders
to freely share their concerns and grievances with RIL
through a structured mechanism.

Principle 2 – Product Lifecycle Sustainability

Businesses should provide safe goods and services that
contribute to sustainability throughout their life cycle

Creating sustainable products is a part of RIL’s endeavour
towards responsible product stewardship. RIL aims to make
its products more safe and environment friendly.

1. List three products or services whose design has
incorporated social or environmental concerns,
risks and/or opportunities

It is RIL’s constant endeavour to make products that
have a positive impact on the environment and cater to
consumer needs. Some such products created during
FY 2013-14 are listed below:

PP non-woven fabric

This is utilised as a crop cover for protection
against extreme cold weather. It prevents the crop
leaves from freezing and allows sunlight to pass,
thus resulting in normal photosynthesis. The cover
also acts as a protection from pests and insects.

It eradicates the use of chemical pesticides,
maintaining the natural quality of soil.

During FY 2013-14 RIL has undertaken this
initiative for watermelon, chilly, chappan tinda
and coriander crops.

Effect of frost

Field covered with PPNW Crop Cover

Crop protected from frost

Double Wall Corrugated Polyethylene Pipes

This is utilised in sewage systems for conveyance of
municipal sewage and wastewater. The traditional
pipes, generally used in the sewage system, are
made of concrete and possess major risks. These
risks include breaks and leaks due to its brittle
nature, corrosion and increased number of joints.
It results in groundwater contamination, and in
some cases contamination of potable water. DWC
PE pipes have a number of technical advantages

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over traditional piping systems. These pipes are
stronger and hence reduce occurrence of leakages.

PVC-based food grain packaging

PVC food grain storage structures are airtight
(hermetic) and unsupported rectangular structures
made of lightweight UV-resistant PVC sheets. Due
to excellent gas tightness of the structure, it can
maintain low oxygen and high carbon dioxide level
within the packaging. This ensures zero survival of
insects, which in turn, protects food grains.

2. Procedures in place for sustainable sourcing

(including transportation) and percentage of
inputs sourced sustainably

is to establish

The Company’s motto
long term
relationship with its vendors and include them in its
growth story. In addition to techno-commercial aspects,
RIL’s procedures with regard to finalising vendors
emphasises on environmental practices, existing
certifications, safe working conditions, prevention of
child labour and general housekeeping. RIL engages
with its vendors periodically and also offers technical
assistance whenever required. The selection procedure
of RIL’s transport vendors (Trucks 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 optimisation to ensure fuel efficiency and reduce
the environmental impact due to transportation.

PTA product bulk dispatch at Hazira
At RIL’s Hazira operations, bulk dispatching of PTA
product has been implemented. Dispatch levels have
increased to 70-75% of PTA. The higher dispatch
volume in the tanks (32MT/truck when compared to
jumbo bags - 16.5MT/truck) has resulted in emission
reduction due to decreased number of trips.

Green Polymer Packaging Bags
Green polymer (fully recyclable) packaging is used in
the packaging of polyester and polymer products. A
weight reduction of 3.5%-12% was achieved without
compromising on mechanical properties of packaging
materials. The process has lowered the number of trucks
required for transportation of the product thereby
reducing fuel consumption and hence emissions.

3. Steps taken to procure goods and services from

local and small producers, including communities
and capability building activities undertaken for
local and small vendors

In order to ensure a positive impact of sourcing of
raw materials and other resources as well as product
distribution, RIL supports, encourages and develops
local vendors. E.g., the Company developed a local
vendor for the supply of a critical chemical. Various
local villagers
contracts have been entered with
around RIL’s plants in vehicle hiring, material handling,
housekeeping, waste handling and horticulture. These
contracts have led to entrepreneurship development
around the manufacturing sites and have created
employment for the populace.

Through financial assistance and encouragement, RIL
supports many small suppliers, predominantly civil
contractors and transport suppliers. Some of these
partners have been serving to RIL for the past two
generations.

4. Mechanism to recycle products and waste and the
percentage of recycling of products and waste
(separately as <5%, 5-10%, >10%)
RIL has taken various
initiatives towards waste
management and continuously monitors it with a view
to ensure reduction in waste generation. RIL has taken
various measures such as converting waste to organic
manure and bio gas generation.

RIL ensures responsible disposal of waste generated by
partnering with various agencies to encourage end-of-
life recycling and reuse. At Hoshiarpur and Barabanki
recycled polyester fibre is being produced through
post-consumer PET bottle recycling.

Total recycled material at
Manufacturing Divisions
(tonnes)

13-14

12-13

69,147

63,219

9.4 % Increase

in recycled material utilisation

The industrial waste generated at Naroda plant is
‘bio-manure’ by the vermi-
converted
composting method, thereby reducing the load of waste
disposal on the environment.

into useful

The Jamnagar refinery has reduced its load on the
environment by tapping and desalinating sea water
instead of using fresh water resources. The waste
water generated is treated and used for green belt
development thereby ensuring zero effluent discharge.

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its
RIL has recycled treated waste water across
manufacturing divisions which amount to more than
50% of its fresh water withdrawal.

Recycling of used PET blend fabrics by bio route
Polyester is not easily amenable to microbial attack and
hence polyester fabric waste poses a huge disposal
problem. Separation of polyester from its blends
and dye will aid in recycling of the polyester. There
including
are some chemical recycling processes
hydrolysis, methanolysis and glycolysis that are being
adopted to digest the polyester portion of the blends.
Work is underway by RIL’s R&D group on exploring the
possibility of recycling used PET via a biological route
in an environmentally friendly manner using enzymes
from microbes.

Principle 3 Employee Well-being

Businesses should promote the well-being of all
employees

RIL believes in its people power propelling its progressive
growth. Their knowledge, experience and passion to
perform are fundamental to building the organisation
further. Hence RIL provides its employees with
opportunities that encourage them to excel. RIL ensures a
work environment that promotes well-being.

Employee training at Jamnagar

1. Total number of employees

The total number of employees is 23,853 as on
31st March, 2014.

2. Number of permanent women employees

The total number of permanent women employees is
1,149 as on 31st March 2014.

3. Number of permanent employees with disabilities

The total number of permanent employees with
disabilities is 99 as on 31st March 2014.

Workforce Breakdown (%)

2013-14

Leader
Manager
Executive
Trainees
Apprentices
Non Supervisors

6
36
23
2
2
31

4. Employee associations recognised by the

management

RIL has various unions and associations of employees
at various sites which encourage the employees to
participate freely in constructive dialogue with the
management.

5. Percentage of permanent employees that are
members of recognised employee association

100% of non-supervisory permanent
Almost
employees at manufacturing locations are members of
trade unions / employee associations.

6. 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

There were no cases of child labour/ forced labour/
involuntary labour and discriminatory employment
during the year. As for protection against sexual
harassment, RIL has formed an internal complaints
committee to which employees can write their
complaints. Also the Company has sexual harassment
policy in which it formalised a free and fair enquiry
process with clear timeline.

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7. Percentage of under mentioned employees that
were given safety & skill up-gradation training in
the last year

Permanent Employees
Permanent Women Employees
Employees with Disabilities
Casual/Temporary/Contractual Employees
It is RIL’s constant endeavour to keep its employees
abreast with the latest technical knowledge. During FY
2013-14, a total of 1.36 million manhours* of training
was imparted by RIL to its workforce.

Training (million manhours*)

13-14

12-13

1.36

1.30

4.6 % Increase

in manhours of training
imparted

* On the Job trainings provided to trainees are not included.

62.05% of RIL’s permanent workforce and 49.5% of the
permanent women employees received safety and skill
upgradation trainings through classroom as well as
web-based training programmes. Out of 99 permanent
employees with disabilities, 41.4% received safety
and skill upgradation trainings. All of RIL’s contractual
employees receive mandatory safety training before
entering the premises and receive on the job training
through the contractor and the Company.

Principle 4 – Stakeholder Engagement

Businesses should respect the interests of, and be
responsive towards all stakeholders, especially those
who are disadvantaged, vulnerable and marginalised

Stakeholders play an important role in determining RIL’s
growth story. Stakeholder engagement, at RIL, aims to
provide transparency in communications and continual
improvement. It’s a dialogue that defines the RIL approach
of understanding stakeholder needs, and developing
action plans to fulfil them.

1. Mapping of internal and external stakeholders

RIL’s major stakeholders have been mapped and the
key categories are as below:

i) Government and regulatory authorities
ii) Employees
iii) Customers
iv) Local community
v)
vi) Suppliers
vii) Trade unions
viii) NGOs

Investors and shareholders

RIL engages with its identified stakeholders on an
on-going basis through a constructive consultation
process. There is a structured stakeholder engagement
specific engagement
programme which entails
mechanisms
stakeholder group. The
Company follows a system of timely feedback and
response through
informal channels
formal and
of communication to ensure that the stakeholder
information remains current and updated.

for each

Identification of the disadvantaged, vulnerable &
marginalised stakeholders
Through
the
disadvantaged and marginalised stakeholders are
identified.

engagement,

stakeholder

RIL’s

Employees at a training session, Jamnagar

3. Special initiatives taken by the company to

engage with the disadvantaged, vulnerable and
marginalised stakeholders

A large number of RIL’s livelihood support programmes
are women centric and have helped them become
income
self-reliant and gain a steady source of
through a range of different vocations. The Company is
continuously improving the access to quality education
for children by 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

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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. ‘Mumbai Indians’ supported
projects for 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.

For its trucker community RIL conducts AIDS awareness
programs on a large scale including skits and role plays.
‘Hamrahi’, a clinic operating in Allahabad continues
to provide voluntary testing and counselling for HIV/
AIDS primarily for truckers and nearby residents. Under
the “Chirudeepam” initiative and “Project Hope”, the
employees at E&P sites and the Reliance Ladies Club (an
association of spouses of RIL managerial employees) at
Hazira support children affected by AIDS and supply
them with nutritive kits every month, in conformance
with the WHO standard.

For specific details, please refer to Report on Corporate
Social Responsibility.

Principle 5 – Human Rights

Businesses should respect and protect human rights

RIL’s culture demonstrates integrity and respect for human
rights. RIL developed policies and mechanisms to ensure
human rights are an entitlement to all. It is guaranteed
in day-to-day operations and in the way RIL conducts its
business. RIL publicly reports its progress against the ten
principles by UNGC, one of them being human rights.

1. Coverage of the company’s policy on human rights
to the company and its extension to Group/Joint
Ventures/Suppliers/Contractors/NGOs/Others

its

towards

instituted a

commitment

RIL has
‘Human Rights Policy’ that
demonstrates
the
preservation of human rights across the value chain.
The Company believes that a sustainable organisation
rests on a foundation of ethics and respect for human
rights. RIL promotes awareness of the importance of
respecting human rights within its value chain and
discourage instances of abuse.

2. Stakeholder complaints received in the past
financial year and percentage of complaints
satisfactorily resolved by the management

There were no reported complaints during FY 2013-14.

Principle 6 – Environmental Management

Businesses should respect, protect and make efforts to
restore the environment

RIL believes in safeguarding the environment, while
executing its operations. To this effect, it takes every effort
towards environmental conservation. RIL ensures to do
business with a minimal environmental impact that aims
at rational use of natural resources and reduced waste and
emissions.

Eco Pond at Dahej

Some of the initiatives adopted to improve and reduce
environmental footprint at RIL’s manufacturing location
during FY 2013-14 include:

z An IT-enabled process for tracking and monitoring
statutory

of environmental performance and
compliance is implemented across major sites.

z Organisation level Greenhouse Gas Accounting and
reporting standard and Audit protocol development.

1. Coverage of the policy related to Principle 6 and its

extension to the Group/Joint Ventures/Suppliers/
Contractors/NGOs/others

Environmental conservation is core to RIL’s business
RIL’s Health, Safety and Environmental
strategy.
policy is a comprehensive document which identifies
environmental preservation and pollution prevention
as its responsibility. The policy addresses the issues not
only related to the RIL manufacturing units but of the
Group companies, JV partners, suppliers, contractors,
communities, and other stakeholders as well. Safety
of personnel is of prime importance and given the top
most priority.

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.

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2. Company’s strategies/initiatives to address global
environmental issues such as climate change,
global warming, etc.

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.

improve
RIL undertakes continuous activities to
energy efficiency and thereby reduce Green House Gas
(GHG) emissions. It has a separate Clean Development
Mechanism (CDM) cell to focus on climate change
mitigation projects. As a responsible corporate, RIL
monitors and develops measures to reduce emissions
at all locations. RIL adheres to all legal requirements and
norms of energy conservation and other environmental
conservation standards exercised by the Government
of India and other countries where RIL has a presence.
Through its sustainability report, RIL reports on direct
and indirect emissions and measures undertaken for
GHG emission reduction.

Total NOx emissions at
Manufacturing
Divisions (‘000 Tonnes)

13-14

12-13

28.47

28.78

1.09 % Reduction

in NOx emissions

Identification and assessment of potential
environmental risks

At RIL, risk assessment is a continuous activity across
all operations. RIL has systems in place that ensure
continued monitoring. A standard process includes
identification of environmental aspects in RIL’s activities
and further addressing them with a structured
framework to mitigate the associated environmental
impacts. All the manufacturing Divisions are certified
by
ISO-14001 environment management system
and integrated with quality and safety management
systems (ISO 9001 and OHSAS 18001). In addition, all
these sites have also been covered under the British
Safety Council UK’s environment five star audit. The

periodic audits conducted as part of these management
systems help RIL identify potential risks at its locations.

The measures highlighted
in the environmental
assessments are addressed in a timely manner and
monitored accordingly. Mitigation measures and
environmental parameters are internalised at all stages
of project design, execution, construction, operation
and maintenance.

4. Company’s initiatives towards Clean Development

Mechanism
The Company continues to work towards development
and implementation of climate change mitigation
projects, mainly through energy efficiency and use of
cleaner fuels. RIL has 8 CDM projects registered with
the United Nations Framework Convention on Climate
Change (UNFCCC). The Company has built in-house
capacity to develop CDM projects and obtain the
registration and issuance of the same in the form of
Certified Emission Reductions (CERs) from the UNFCCC.

5. Company’s initiatives on – clean technology,
energy efficiency, renewable energy, etc.
initiatives for
This year, RIL has adopted various
deployment on clean technology, energy efficiency
and renewable energy. Some of these initiatives are
listed below:

Clean Technology

Maintaining H2S liberation from desalted brine in
regulated concentration
The Jamnagar refinery has established a simple
scheme of flushing H2S generated in the Effluent
is under
Treatment Plant (ETP). This process
implementation within the DTA Refinery at
Jamnagar.

b) Energy Efficiency

Catalytic HTL process for conversion of biomass to
oil
Development of a catalytic process for the
conversion of biomass to bio crude oil has been
initiated. In this process harvested biomass is
subjected to catalytic hydrothermal liquefaction
to achieve energy efficiency in the process.

c) Renewable

Aggregation of surplus waste agri-residue as
biomass for conversion to biofuels /biochemicals

RIL is focusing on in-house research and external
technology for converting abundantly available
cellulosic biomass in India to fuels & chemicals. For
example, isoprene production through a biological
issues and
route will address environmental

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harness the inherent energy stored in renewable
feedstock. This would also stop the current
practice of agri-residues being burnt which leads
to a lot of smoke and pollution.

6. Reporting on the emissions/waste generated by

the company as per the permissible limits given by
CPCB/SPCB

The emissions / waste generated by the company is
not only within but in many cases significantly lower
than the permissible limits given by the State or
Central pollution control boards. In RIL’s environmental
management system, environmental compliance is an
indispensable aspect. RIL’s 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

No pending or unresolved show cause/ legal notices
from CPCB/SPCB, as on end of FY 2013-14.

Principle 7 – Public Advocacy

Businesses, when engaged in influencing public and
regulatory policy, should do so in a responsible manner

RIL’s collaboration with industrial bodies and academia
demonstrates its approach towards addressing
sustainability challenges. RIL aims to create an
environment that encourages supportive decisions made
in a responsible way. The associations formed are in
consultation with the Board, and contain representation
from the Board in certain memberships.

1. Representation in any trade and chamber or

association

RIL has its representation in several business and
industrial associations’ such as The World Economic
Forum, The American Chemistry Council
(ACC),
Indian Chemical Council (ICC), The Chemicals and
Petroleum Manufacturers Association (CPMA), Gulf
(GPCA),
Petrochemicals & Chemicals Association
European
(EPCA),
Association
American Fuel & Petrochemical Manufacturers (AFPM)
Association of Oil and Gas Operators in India (AOGO),
Federation of Indian Chambers of Commerce and
Industry (FICCI), Confederation of Indian Industry (CII),
Associated Chambers of Commerce and Industry of
India (ASSOCHAM) and Association Of Synthetic Fibre
Industry (ASFI).

Petrochemicals

2. Advocated/lobbied through above associations for
the advancement or improvement of public good
RIL as a responsible producer of petrochemicals is
collaborating with ICPE (Indian Centre for Plastic &
the Environment) on a voluntary basis and provides
technical and financial support to help developing
newer technologies for plastics waste management,
establishment of pilot projects for plastics waste
management in cooperation with municipal authorities
and civil society.

Principle 8 – Inclusive Growth

Businesses should support inclusive growth and
equitable development

RIL believes in creating opportunities for the people
around its operations to enable a sustainable future and
ensure inclusive growth. Its community development
activities focus on areas that foster development and well-
being of communities. RIL’s CSR initiatives are aligned to
aspects, such as education, healthcare, skill enhancement,
infrastructure development, promoting sportsmanship,
women empowerment, among others.

1. Specified programs/initiatives/projects by the
Company in pursuit of the policy related to
Principle 8

RIL’s CSR policy demonstrates
its efforts towards
social and economic development. RIL’s community
development initiatives focus on education, healthcare,
skill
infrastructure development,
promoting sportsmanship, women empowerment,
among others.

enhancement,

Following are some of the initiatives RIL has undertaken
during FY 2013-14:

Ensuring well-being of local communities
Building capabilities for employment generation
Empowering women
Creating access to health care
Conserving environment

2. Modes through which programs/projects
undertaken (through in-house team/own
foundation/external NGO/government structures/
any other organisation)

Reliance Foundation – A comprehensive
approach towards community development

implements a number of

initiatives

its community
Reliance

through

RIL
development
Foundation (RF).

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RF has a comprehensive approach towards community
development with focus on five pillars of Rural
Transformation, Education, Health, Urban Renewal and
Arts, Culture and Heritage. Through various initiatives
under these core areas, the Foundation strives to
bring a synergetic approach towards community
development.

For specific details about RF, please refer to the Report
on Corporate Social Responsibility under the following
heads:

Reliance Foundation BIJ- Bharat India Jodo

Information services
Health Programmes
Reliance Foundation Drishti
The Dhirubhai Ambani Scholarship Programme
Sports for Development
Arts, Culture & Heritage
Disaster Response
Environmental Sustainability

is an
strategy

Impact assessments for initiatives
important aspect of
Needs assessment
RIL’s operational
for Corporate Social
Responsibility (CSR) initiatives. Before initiation of a
CSR activity, the potential areas of intervention and
target groups are identified by using various tools.
Information on communities
is captured through
baseline data collection, primary and secondary
resources. The need assessment process sets a
background and gives critical information on the
said context. The areas and strategies for action are
worked out based on the information elicited. The RF
BIJ programme management system is ISO 9001:2008
compliant since May 2013.

After initiation of the CSR activities, RIL has constituted
mechanisms to collect relevant information about the
beneficiaries so that the progress and changes could be
measured over a period of time. 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.

4. Company’s direct contribution to community

development projects

During FY 2013-14, RIL spent ` 711.72 crore on
community development initiatives. CSR expenditure
is on various projects pertaining
incurred by RIL
livelihood support, rural
to education, healthcare,

development, heritage conservation, environment,
safety etc.

5. Steps undertaken to ensure that community

development initiatives are successfully adopted
by the community

RIL ensures its presence is established right from the
commencement of the initiatives. RIL collaborates
with communities from need identification stage to
project implementation. The Company involves the
community in decision-making process, right from the
problem identification stage till 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 prioritised needs
of the communities, implemented with the active
participation of the communities and progress is jointly
evaluated with the community representatives.

Principle 9 – Value for Customers

Businesses should engage with, and provide value to
their customers and consumers responsibly

Understanding customer needs is a key step in RIL’s
endeavour towards developing an efficient product
stewardship programme. RIL ensures utmost care is taken
towards customer safety. Putting customers first has always
been its approach of conducting business.

1. Percentage of customer complaints/consumer

cases pending as on the end of financial year

RIL conducts regular Customer Relation Meets (CRM)
to educate and apprise customers about all aspects
of its products and takes their feedback in addition to
understanding their concerns.

The Company has a separate framework to deal with
customer complaints. As on 31st March 2014, 1.2%
of customer complaints were pending which were
subsequently resolved.

2. Product information and product labelling

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. RIL follows the Globally
Harmonised System for classification of chemicals and
preparation of Material Safety Data Sheets. Besides, RIL
shares information with its customers on safe handling
and use of products during distribution.

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3. 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

Nil

4. Consumer survey/ consumer satisfaction trends

carried out by the Company

Customer satisfaction is RIL’s goal, which drives RIL to
ensure its products deliver results that continually meet
customer requirements. To understand customers
better, RIL follows several modes of engagement.
audits,
These engagements
customer surveys, call centres, direct feedback taken

customer

include

by visiting managers/plant personnel and factory
visits organised for customers. These modes help RIL
to understand customer requirements, satisfaction
levels and customer behaviour. RIL also conducts one-
to-one meetings with customers to enable efficient
communication and resolve specific needs. In addition,
RIL conducts web-based customer satisfaction surveys.

RIL has also conducted third-party Mystery Customer
Audits, Customer Satisfaction Index and Call Centre
evaluation studies for this purpose. This has helped
RIL to ensure periodic fulfilment of service delivery
promise, conformance to internal norms and standards,
identification of process
improvement areas and
understand customer attitude and behaviour stage to
ascertain that needs are met at all stages.

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Report on Corporate Social Responsibility

RIL understands the changing business paradigm and the
need to collaborate with its stakeholders to ensure long-
term sustainable growth. The Company has identified
issues material to the business, prioritised through effective
stakeholder engagement and have taken effective steps to
address it.

Health, Safety and Environment (HSE)

Health
Driven by the philosophy of ‘One Reliance. Healthy
Reliance!’ RIL strives to achieve excellence in improving its
employees’ occupational and personal health. The aim is
to ensure a healthy and productive work environment by
minimising health hazards and providing model facilities. To
further the cause, RIL has set up world-class occupational
and family welfare centres and follows international HSE
best practices at all manufacturing, E&P locations and major
office complexes.

In addition to emergency medical services, the Occupational
Health Centres (OHC) offer preventive, promotive and
curative health services to employees. All centres are
equipped with state-of-the-art diagnostic and therapeutic
equipment. These are managed by qualified occupational
health specialists. Additionally, training sessions are
regularly held for medical staff to enhance their skill and
knowledge.

The Company’s medical and occupational health
department focuses extensively on the prevention and
management of lifestyle diseases, such as hypertension
and diabetes, communicable diseases like tuberculosis and
HIV/AIDS. Structured monthly health awareness sessions,
daily health tips programme and personal counselling
are conducted across locations. These activities are also
extended to employee’s
family members staying at
Company townships.

‘Health Awards’ were introduced as a new initiative on the
wellness front across all locations this year. This initiative
will have a long-term benefit in creating a culture of healthy
living among employees and their family members.

To overcome emerging mental health issues, RIL undertook
an ambitious Project ‘WISH’ (Work life Improvement for
Safety and Health) to focus on emotional health as a part
of Resilience Management. A group of employees who
have been trained by the Company act as missionaries
to enhance awareness regarding emotional health and
psychological well-being.

RIL employees undergo periodic medical examinations
(PME). The medical check-up facility is also extended to

contract employees at manufacturing sites. The results
are maintained online and analysed to provide targeted
interventions at individual and group levels. Employees
are subjected to health risk assessments and appropriate
measures are taken to prevent any medical complications.

Under RIL’s Health Management System (HMS), PME reports
are generated and documented. Based on an individual’s
fitness levels and susceptibility to diseases, employees are
mapped into Red, Yellow and Green categories.

Key quality indicators are developed for evaluation of
individual’s health status and its effectiveness of application
strategies.

RIL started the ‘Change Agents for Safety Health and
Environment’ (CASHe) programme a decade ago. Over
the years, the CASHe programme has evolved into a
movement encompassing the entire enterprise with
thousands of improvement projects. The programme has
been instrumental in creating a culture of implementing
health, safety and environment projects on a priority basis.
This programme has helped to improve the Company’s
performance on the occupational health and safety front. It
has been recognised in various international forums like the
International Occupational Health Congresses held in Italy,
South Africa and Mexico.

During the year, RIL has also implemented a unique
programme called ‘Task Based Health Risk Assessment’
(TBHRA).

CASHe
CASHe has been

recognised in various
international forums like the
International Occupational
Health Congresses held
in Italy, South Africa and
Mexico

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A very unique and significant initiative, ‘REFERS’ (Reliance
Employee & Family Emergency Response Services) offers
24x7 assistance in case of any medical, accident, fire and
security exigencies.

RIL’s Community Medical Centres established near most
of its manufacturing divisions, provide comprehensive
healthcare services to local villagers.

A joint initiative of RIL and National Association of Blind,
Project Drishti, has undertaken over 12,800 free corneal
graft surgeries till date across the country.

RIL’s initiative to combat TB and HIV/AIDS is a unique public-
private partnership programme between the Government,
NGOs and the Company. It creates awareness and provides
care, support and
free-of-cost
treatment) to the poor.

(including

treatment

The Hazira Manufacturing Division’s HIV/AIDS Centre is
one of the largest Anti-Retroviral Treatment Centre (ART
Centre) in India. It is a fully functional 32-bed hospital for
HIV/AIDS patients. ART Centre facilities are replicated as per
the successful Hazira model in Jamnagar, Patalganga and
Lodhivali.

Accreditation
zz National Accreditation Board for Hospitals (NABH)

certification at Jamnagar township hospital

zz National Accreditation Board for Laboratories (NABL)

certified laboratories at all manufacturing sites

Safety

RIL is unwavering in its goal of zero injuries and incidents.
It continues the pursuit in this direction, building a safety
culture involving all stakeholders. RIL has devoted its efforts
in providing a safer work environment for employees
and contractors while protecting and adding value to its
operating communities.

RIL is in the process of making further inroads in embedding
safety for upcoming projects. The focus is on establishing
world-class standards in project’s addressing process and
construction safety. It has partnered with a world-renowned
external agency for assistance in enhancing a safety culture
and best-in-class practices.

While establishing safety standards
in steady state
operations, the Company continues its efforts to augment
the safety culture within the organisation. To take the
organisation to a higher level, RIL has been focusing on FELT
leadership programmes. This helps to empower individuals
to contribute and intervene where it makes a difference. HSE

CPP at Jamnagar Refinery (DTA)

assurance systems and processes are continually assessed
to ensure their robustness as aligned to designed intent.

RIL emphasises on
integrating emerging businesses
such as Coal Bed Methane and Reliance Jio to build
a ’One Reliance‘ HSE Management System across the
organisation. The Company is working towards leveraging
a standardised policy, practices and processes to manage
risks commensurate to each area/business. It also provides
an assurance framework through a multi-layered auditing
process.

(L&D) Academy has

RIL firmly believes in a culture of continual learning and
development of its people. To achieve this, HSE Learning
& Development
standardised,
developed and imparted, structured learning programmes
to a cross-section of employees. RIL considers that
personnel competency is a key area to ensure safe and
efficient operations. Therefore, the HSE L&D Academy has
been focusing on implementing a robust Competency
Management System.

Safety Initiatives for Community
RIL Hoshiarpur ensured the participation of its employees
and local public in a workshop for traffic awareness
conducted by the district administration. In the city, some
specific areas are coping with heavy vehicular traffic
resulting into chaos, accidents and traffic bottlenecks.
Hence, proper infrastructure was built and safety gadgets
were installed.

Truck/tanker drivers are trained for ‘Defensive Driving
Techniques’ at DSTC (Drivers Safety Training Centre), Hazira.
As part of its safety initiative, RIL established a 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 and
emergency responses. More than 243,000 drivers have
been trained through this initiative since its inception in
2005. During FY 2013-14, more than 23,000 drivers have
been trained.

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During the year under review, several initiatives were taken
at manufacturing sites to improve the environmental
performance and reduce the environmental footprint.
Some of them are:

zz Installation of continuous ambient air quality monitoring

stations at refinery and petrochemical sites

zz At Dahej Manufacturing Division, on-line effluent
monitors were installed at discharge point, for vital
parameters like pH and TOC

zz A pilot scale study is in progress for recycling of treated
ACN plant effluent as make-up water for cooling towers
at Vadodara Manufacturing Division

zz At Nagothane manufacturing division, storm water
channels were improved to prevent escape of wastewater
from the complex

initiate

The Company believes awareness and knowledge is the
key to excellence. To spread environmental awareness
and
for
improvement, the ‘World Environment Day’, ‘Earth Day’,
‘World Water Day’, ’International Day for the Preservation of
Ozone Layer’, among others are celebrated.

focused environmental action plan

RIL believes that its environmental performance is the direct
result of its team of talented professionals as well as the
company’s commitment to continuous improvement.

Effluent Discharged at
Manufacturing Divisions
(000 m3)

13-14

12-13

21,141.31

21,227.12

0.4 % Reduction

in treated effluent discharge

Saving of potable water in Petcoke project at
Allahabad Manufacturing Division
zz For civil construction job, water consumption was
pegged at 10 KL per day approximately. Arrangements
were made to utilise treated effluent water instead
of potable water. A 10 KL tank with transfer pump
was
installed and connected with a pipeline of
treated effluent

EMS

ISO14001

Environmental Management
Systems certification for all
manufacturing sites

its

Environment
RIL,
journey towards environmental excellence,
in
continues to achieve new milestones. Its efforts are directed
to achieve environmental performance beyond compliance
through adoption of global best practices.

‘Integrated
sites
Major manufacturing
Management System’ combining environment, quality,
occupational health and safety management system, duly
certified by accredited agencies. All manufacturing sites
are certified for ISO 14001 Environmental Management
System. For reducing the adverse environmental impact
of its operations, the Company focuses on some key areas
including energy and water conservation, minimising
air and GHG emissions including flaring, reducing the
generation of waste and protection of biodiversity across
the locations.

level to

New projects are carefully scrutinised at the drawing-
board
incorporate necessary environmental
considerations and standards. The Company conducts
an environmental
impact assessment study through
nationally reputed organisations prior to planning a
major project or expanding an existing facility. As part
of the study, RIL considers the potential effects on local
biodiversity and takes steps to address them. Requisite
environmental approvals are ensured from State/Central
Government well in advance before proceeding with
execution of suggested improvements. Compliance to
statutory approvals is ensured by creating necessary
facilities, appropriate monitoring and operational
control procedures.

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corporate junior (intermediate) colleges of their choice.
A total of 178 meritorious students were selected for the
academic year 2013-14 and received support of ` 1 crore.

With this year’s admissions, the total number of students
supported under the scheme reached 1,326. Since 2010-
11, RIL has been providing financial aid to the deserving
candidates (among Protsaham recipients) for pursuing their
higher studies in engineering and medical streams.

Mumbai Indians ‘Education for All’ Initiative
Smt. Nita M. Ambani – an educationist – who pioneered
the concept of ‘Education for All’ programme believes
in the cause to uplift a child through equal education
opportunities.

In the past four years, this programme has been able to
impact the lives of over 27,000 underprivileged children.
Apart from monetary support, it has built awareness
amongst various groups so that the movement can expand
and impact more children.

Dhirubhai Ambani International School
Dhirubhai Ambani International School (DAIS), Mumbai,
a K-12 school established in 2003, prepares students for
the ICSE, the IGCSE and the IB Diploma Examinations. The
school is also a member of the Cambridge International
Primary Programme.

The school’s mission is to provide a learning environment
that encourages children to bring out the best
in
themselves.
It supports their all-round development
through discovering the joy of learning, awakening and
illuminating their intellect in multi-dimensional ways and
instilling values in them.

In a decade, the school has achieved the highest standards
of excellence on all performance parameters. It has evolved
as one of the most admired schools in India and in the
world. In 2013, Education World ranked DAIS as the No. 1
International School in India across all categories. The rank

Student at school in Gadimoga

zz There is a saving of 10 KL of potable water per day, which

amounts to nearly 300 KL per month

Post project completion, this water has been used for floor
cleaning purposes in petcoke handling area as a substitute
for fresh water.

Environment protection and awareness drives

Green Cover in surrounding villages
As part of the week-long celebrations of the World
Environment Day (WED), a massive plantation programme
was organised by RIL at Gopalapuram village, Gadimoga
Panchayat on 7th June 2013. Around 50 community
members participated in the programme. They assured
to safeguard the plants. Senior RIL officials participated in
the programme and created awareness among the village
community on the importance of green-cover and about
’Think. Eat. Save‘, (World Environment Day) theme for 2013.

Awareness sessions on environment
The HSE Department of RIL conducted an awareness
programme on the occasion of World Environment Day for
the engineering students at Sri Aditya Engineering College,
Kakinada. More than 100 engineering students participated
in the program.

Please refer the Management’s Discussion & Analysis section
for Awards & Recognition, pertaining to Health, Safety &
Environment.

Social Responsibility

Education
RIL has instituted the ’UAA-ICT Dhirubhai Ambani Lifetime
Achievement Award’,
jointly with the UDCT Alumni
Association (UAA) and the Institute of Chemical Technology
(ICT), Mumbai for innovative and outstanding contribution
in chemical sciences. It continues to recognise scientists
from India and worldwide through this award. The award,
fourth in the series, was conferred on Professor George
Stephanopoulos (Arthur D. Little Professor of Chemical
Engineering, Massachusetts Institute of Technology, USA)
in recognition of his seminal and innovative contributions
in chemical engineering this year. The felicitation ceremony,
held on 13th November, 2013 in ICT, was presided over by
Shri N. R. Meswani, Executive Director.

Reliance Dhirubhai Ambani Protsaham Scheme
A flagship CSR initiative in its own right, Reliance Dhirubhai
Ambani Protsaham Scheme, financially supports poor and
meritorious students (Class X pass-outs) from the East
Godavari district. Recipient students get admissions in

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was given on seven key parameters - Academic Reputation,
Individual Attention to Students, Co-curricular Education,
Competence of Faculty and Leadership/Management
Quality, Parental
Involvement, Teacher Welfare and
Development. The Hindustan Times – C Fore Top Schools
Survey has ranked DAIS the No. 1 School in Mumbai for
2012 and 2013.

The students of the school have consistently achieved
outstanding results across all three curricula – the ICSE, the
IGCSE and IB Diploma. The ninth batch, the Class of 2013,
earned an average of 39.6 points (out of the maximum
possible score of 45). Generally an average of 30-32 points
is considered to be excellent for any good IB World School.
From the Class of 2013, 11 students gained 44 points and 4
students obtained the perfect score of 45 points. This score
was achieved by only 108 children worldwide.

The IB Diploma graduates from the class of 2013 have
gained admissions to 20 of the world’s top 30 universities.
Many universities have offered scholarships to these
students. Some of the graduates have also joined India’s
leading colleges.

In 2013, 85.3% of IGCSE grades achieved were A* and A
grades. Each year, students have topped in the world and
India in several subjects. In 2013, of the 16 IGCSE world
toppers in India, 6 are from DAIS. In 2013, DAIS’s average
ICSE score was 93.82% - 26 out of 28 students have scored
more than 90% and the ICSE topper scored 97%.

co-curricular

accomplishments

Students’
and
extracurricular activities continue to be splendid. They
won prizes at state, national and international levels
in several sports. Some of them are table tennis, chess,
football, squash, athletics, judo, cricket and swimming. They
have also won prizes at the Indian Robot Olympiad, IRIS
National Science Fair, Commonwealth Essay competition
and Education First’s English Proficiency Survey. They also
received the prestigious Hindustan Times scholarships. The
Annual DAIMUN (Dhirubhai Ambani International School
Model United Nations) Conference 2013 deliberated on the
topic of ‘Foreign Intervention’. Over the years, DAIS’s student
exchange programmes have expanded to more schools
worldwide. Currently, DAIS has exchange programmes with
schools in seven countries - France, Spain, Germany, Italy,
UK, USA and the Czech Republic.

village near Matheran) and Kumbharghar (near Patalganga)
- these NGOs help
in constructing roads, educating
children and creating employment avenues through
skill development initiatives. As a Global Member Round
Square, this year, the school hosted the Round Square
International service project at Kumbhargar. Children from
8 countries participated in building a school and low-cost
housing facilities by using green architecture. The students
conducted a School Fete and raised substantial funds to
support the various service projects undertaken by them.

The Dhirubhai Ambani International School Akanksha
Centre supports the education of children from slum areas.
The first batch of students from this Centre has passed the
Class 10 board examinations in 2013.

The school celebrated its Annual Week on the theme ‘Katha
Sagar’. Children enacted a series of plays celebrating India’s
rich legacy of art and culture.

Girls’ Education Initiative
RIL Jamnagar supported the Government of Gujarat’s drive
to promote girls’ education. Approximately 1,600 school kits
were distributed in the villages to encourage enrollment of
girls in schools. More than 1,500 kits are distributed in 42
villages of Jamnagar and Lalpur talukas every year since
2006. This has resulted in a remarkable rise in enrollment of
girls in the first standard.

Girls’ Primary School at Moti Khavdi

Construction of girls’ primary school at the Moti Khavdi
village in the vicinity of Jamnagar Complex was undertaken
during the year at the behest of villagers. A two-story
building with the necessary facilities has been constructed.
The school building is earthquake resistant, and has the
provision for vertical extension.

As part of their engagement with many social causes, the
children work with several NGOs - Advitya, Muktangan,
Pratham and Aseema. They support the educational needs
of children from underprivileged sections. Through outreach
programmes for remote rural villages - Hassachipatti (a

Furniture and computers were provided to Moti Khavdi
Boys’ Primary School. Ten computers were donated to the
primary school at Kanalus village.

In Ranchi and other places of Jharkhand, school benches
were provided to various schools according to requirements.

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Financial assistance to Bhil Community in Tripura and
Assam for educational needs of underprivileged children
was given.

Sanskar Shibir
Sanskar shibir is a regular activity of CSR team of Nagothane
Manufacturing Division. Sanskar Shibir
is a concept
of enjoyable learning for school students. It is also a
demonstration of interactive teaching method for school
teachers. Sanskar, synonymous with excellence in education
equips its pupil with all the requisite skills to be tomorrow’s
leaders with a critical and global outlook.

Objective of the project is to motivate school children for
improved life skills and also encourage the high moral
values and cultural values towards the right ways of
leading life.

Community Healthcare

Health Care initiatives
To inculcate the awareness of public health and sanitation
among villagers, scientific disposal of waste and a total
sanitation drive in association with Sulabh International is
regularly carried out at Moti Khavdi, Meghpar, Padana and
Nani Khavdi villages. A daily door-to-door collection of
garbage, sweeping of village roads and disposal of waste
collected at designated places outside village continued
during the year.

The Community Medical Centre at Moti Khavdi with an
average of 400 OPD patients per day caters to the village

Primary Health Centre
22,250
patients treated

at Gadimoga and
Bhairavapalem Panchayats,
during the year

and floating population mainly consisting of migrant labour
staying in nearby villages. The Centre provides free-of-cost,
round-the-clock comprehensive health services to about 45
villages/hamlets. The intervention impacts health and hygiene
needs of 1.5 million people. It also extends emergency life-
saving services to accident victims on the Jamnagar-Dwarka
highway. The Centre provides ARV treatment for AIDS patients
free-of-cost since October 2007. This is the first centre of its
kind by a private sector company in this region.

Doctors and nurses from the Centre visit 6 neighbouring
villages twice a week. Free check-up and treatments are
done and free medicines are provided to around 150 to 180
patients per trip.

Audio-visual shows, poster exhibition, Sunday clinic for HIV/
AIDS awareness, pulse polio vaccination, multi-diagnostic
camps and blood donation camps are carried out regularly.

Primary Health Centre Operations
A total of 22,250 patients (male 9,844, female 12,406) from
Gadimoga and Bhairavapalem Panchayats were treated
during the year at static clinic Gadimoga and satellite clinic
Bhairavapalem.

One male doctor, one lady doctor and two pharmacists
are available between 9 AM to 5.30 PM on all working days
at the Gadimoga Static Clinic. The doctors extend their
services to the Bhairavapalem village community twice a
week - on Tuesdays and Fridays.

the Satellite
The Static Clinic at Gadimoga and
Clinic at Bhairavapalem are
functioning since 2005
and 2006 respectively, to cater the health needs of
fishermen community with a budget outlay of about
` 0.24 crore annually.

Dhirubhai Ambani Hospital
During the year, the Dhirubhai Ambani Hospital at Lodhivali,
Maharashtra engaged significantly to improve the quality
of life in surrounding communities. Medical diagnostic
camps were arranged in nearby areas for providing medical
consultation, diagnosis and medicines to the needy. During
FY 2013-14, 13 medical camps were conducted.

In addition, during the year, the following initiatives
were taken for providing healthcare facilities to the local
communities:

zz Medical care was provided to 54 road accident trauma

patients free-of-cost or at highly subsidised rates

zz Medical care was provided to residents of surrounding
villages. 1014 patients were treated during FY 2013-14

zz Free or highly subsidised medical care was provided to
76 patients belonging to economically weaker section of
the society

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zz An Orthopedic camp for Osteoporosis patients was
conducted at Dhirubhai Ambani Hospital at Lodhivali,
where 70 persons were attended

3,552 HIV/AIDs patients were provided free consultation,
counselling, investigation and treatment till 31st March 2014
at the ART Clinic of Dhirubhai Ambani Hospital at Lodhivali.

is revamping

Sir HN Reliance Foundation Hospital and Research
Centre
‘Sir HN Reliance
Reliance Foundation
Foundation Hospital and Research Centre’ and creating
world-class tertiary care hospital. Designed by Perkins and
Will, an internationally renowned architectural firm, this 19–
storeyed, 800,000 square feet, new hospital has state-of-the-
art infrastructure facilities, as well as advanced technologies
and information systems, which are benchmarked with the
best in the world.

The multi-speciality, tertiary care hospital shall offer the
latest of clinical technology across core specialties, as well
as imaging and diagnostics. The hospital aims to bring
about a paradigm shift in the way health care is delivered in
India, in step with the latest global practices, and to emerge
as a world class health facility.

Preserving and honouring the heritage of the original
hospital has been a key priority for the Reliance Foundation
and, the new hospital has been designed and built in
harmony with the original architecture which has long been
a local landmark.

The new hospital building is built with fire and earthquake
resistant material and design. It has the highest space
allocated per bed area, with adequate space for visiting
families. With rainwater harvesting, reuse and recycling of
water and energy efficiency, this will be the largest green
hospital in Mumbai.

In addition to world-class technology and resources, the
hospital aspires to redefine the model of patient care. It
aims to reset the paradigm of healthcare in India by being a
truly “Patient & Family Centric” facility offering consistently
safe and high quality care.

The hospital has an excellent team of doctors across
all specialties, with experience in leading hospitals not
only from all over India but also from across the world.
This hospital is built as a unique centre of healing and
care in the heart of Mumbai with the vision of providing
‘Affordable International Healthcare for all’. The hospital
is at advanced stage of completion and expected to
commence operations shortly.

Promoting Sports and Sportsmen
Promoting sports in India, RIL has instituted the ‘IMG
Reliance Scholarship for India’ programme. During the
year 11 scholarships were awarded to 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
from the fields of tennis, basketball and football, underwent
rigorous physical and mental training. They were given
best-in-class sport education and exposed to high quality
competition. Recipients of these scholarships brought
several laurels to the community.

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 game’s
commercial rights in India.

IMG Reliance operates the Aircel Chennai Open, India and
South Asia’s only ATP World Tour event. The tournament is
one of the world’s longest running ATP 250 events having
completed 19 years. 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 the Lakme Fashion Week. The aim of the show
is to highlight textile traditions and heritage that might
be little known and undiscovered. It will help to connect
emerging Indian textile designers to the mainstream and
modern fashion business, thereby creating a new creative
channel for their engagement and growth.

IMG Reliance

11 scholarships

awarded to aspiring Indian
sportspersons for training
at The IMG Academies,
Florida, under ‘‘IMG Reliance
Scholarship for India”

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Community Development
CSR expenditure

CSR expenditure:

(` in crore)

FY 2013-14

FY 2012-13

FY 2011-12

FY 2010-11

Education
Health
Rural Development
Environment (Greening activities)
Others
TOTAL

80.76
416.69
165.72
0.52
48.03
711.72

66.71
140.72
73.10
1.20
69.27
351.00

75.06
91.03
21.69
2.15
61.34
251.27

91.01
46.99
28.35
0.76
34.23
201.34

Reliance Rural Development Trust (RRDT)
The RRDT, a unique Corporate NGO, set up in FY 2001-02 for
implementing the Gokul Gram Yojana of the Government of
Gujarat completed the prestigious assignment successfully.
The RRDT also completed construction of 33 anganwadi
buildings during the year at a cost of ` 0.73 crore. It has
been a matter of great honour for RRDT to have been
chosen to carry out the government mission to face-lift the
rural scene of Gujarat. Cumulatively, from November 2001
till the closure date of Gokul Gram Yojana scheme, i.e. 20th
September, 2013, the RRDT created 7,902 village facilities in
around 5,894 villages of Gujarat, across 25 districts and 218
talukas. The facilities constructed includes 1,603 cement
concrete roads, 3,804 anganwadi buildings, 158 drinking
water facilities, 741 panchayat office buildings, 1,507
community halls, 39 check-dams and 50 other facilities
of village-needs. The RRDT has been the most gratifying
experience in the CSR work of RIL, Jamnagar.

RRDT

3,804
anganwadi

buildings constructed

Community Development Initiatives
RIL constructed a comprehensive water supply infrastructure
at a cost of ` 8 crore and handed over to the Rural Water
Supply Department for providing drinking water to nearby
villages at Gadimoga. Though the infrastructure has been
taken over by the Government, RIL continues to extend
technical help in smooth functioning of the facility for
urgent purchase of spare parts, rectification of leakages,
and so on.

Disaster Response and Relief - Cyclone Lehar
Response Operations
RIL KG-D6 actively participated in preparatory help for
cyclone Lehar relief operations. All arrangements were made
to accommodate the evacuated public from Bhairavapalem
and Theerdalamundi villages at Community Hall and
PHC facilities at Gadimoga constructed by RIL. RIL made
arrangements for availability of DG set for uninterrupted
power supply, mobilised water storage facilities, medicines,
sanitary requirements, such as buckets, drinking water
mugs, water jugs, chairs, tables, and provided other
necessary requirements.

RIL also arranged for immediate purchase of four petrol
operated saws for local roads and buildings. This was done
to help in the speedy removal of fallen trees obstructing
traffic.

RIL deployed its chopper on 22nd November, 2013 for
making a few sorties near the Kothapalam Lighthouse area
and 10 nautical mile radius in an effort to identify and rescue
20 fishermen stranded in three fishing boats.

Livelihood Support
A one-day training programme was organised on 21st May
2013 for local womenfolk on post harvesting and marketing
practices of fish products. 39 women from Gadimoga,
Laxmipathipuram and Chinavalasala villages were trained

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in making fish and prawn pickle. Technical support was
provided by the Central Institute of Fisheries Technology,
Visakhapatnam.

Employment of Local People
About 250 community members from Gadimoga and
Bhairavapalem habitations are being engaged in various
maintenance works in the KG-D6 plant. The individuals work
in skilled, semi-skilled and unskilled categories.

Reliance Foundation

Comprehensive approach towards development
Reliance Foundation has a comprehensive approach
towards sustainable development with focus on five pillars
of Rural Transformation, Education, Health, Urban Renewal
and Arts, Culture and Heritage. Through various initiatives
under these core areas, RF strives to bring a synergetic
approach towards development.

The Foundation’s activities have covered over 5,500 villages
and various urban locations across all Indian states and
union territories. More than one million lives have been
touched by the RF initiatives during this year.

A brief narrative of the different initiatives of the Foundation
is given below.

Reliance Foundation BIJ- Bharat India Jodo
With the aim of bridging the rural-urban divide, the rural
transformation initiative RF BIJ supports marginal farmers
by ensuring livelihoods and supporting them in their
journey out of poverty. While the programme aims at de
risking farming and making the community self-sufficient,
it also aims at contributing towards conservation of nature
and promoting sustainable farming practices. Launched
in 2010, the RF BIJ programme has come a long way and
has its presence in 19 agro ecological zones spread over 11
states in the country.

Working on the three core pillars of direct action,
participatory approach and sustainable development,
RF BIJ reaches out to the most deserving communities
characterised by low rainfall, rainfed agriculture, large
tracts of cultivable wastelands and high poverty index.
Today more than 460 Village Farmer Associations (VFAs) are
being actively involved in the process of bringing about a
change in the lives of nearly 40,700 farming households
through its initiatives. Close to 15,600 hectares of land have
been redeveloped under the Dharti farm initiative this year
taking the cumulative land development since inception of
the programme to over 31,000 hectares. Another significant
intervention under the RF BIJ initiative, Reliance Nutrition
Garden has positively influenced the nutritional intake

of nearly 12,100 rural households this year (16,292 since
inception). Through its institution building processes, RF is
trying to ensure empowerment at an individual household
as well as community level so as to make the intervention
inclusive as well as sustainable.

Information services
Information, knowledge sharing and technology have a
significant role to play in the development process. RF
Information Services (RF IS) addresses this crucial area and
brings relevant, timely and accurate information to the end
users in rural areas making use of different platforms like
mobile phones and television. Through the RF IS initiatives
and platforms, benefits of high end technology have been
delivered to those who need them the most at the most
pertinent time. Revealing the significance of fast, accurate
and timely information, RF IS platforms were used by the
marine police of Andhra Pradesh in nine coastal districts
during Phailin, Helen and Leher cyclones. RF IS has reached
out to over 3600 villages in 7 states and one union territory
through its multiple mediums during this year (5068 villages
since inception of the programme). Close to 11,59,700
successful calls were made to deliver key messages to the
beneficiaries this year taking the total tally of successful calls
made by the programme since inception to 1.26 million. The
programme is a perfect example of how to use information
and knowledge to empower the community to maximise
their potential.

Health Programmes
The ‘Health for all’ initiative focuses on the provision of good
quality primary care through its mobile and static medical
units and caters to the needs of the lower income group
families in the area. It also aims at establishing an effective
referral system to streamline the flow of patients to the
higher centres of care. More than 350,000 individuals have
enrolled for the services and nearly 52,600 patients have
benefitted from the services within one and half years of
initiating the programme. Similar mobile medical units are
operating in Uttarakhand and Madhya Pradesh. More than
14,300 patients from nearly 150 villages in Madhya Pradesh
and Uttarakhand have benefitted from the services of the
mobile medical units in this year.

Reliance Foundation Drishti
The Drishti programme aims at improving the lives of visually
impaired. Implemented in association with the National
Association for the Blind, the programme has transformed
the lives of 1200 cataract affected individuals through
successful corneal transplants this year (12,839 cataract
surgeries since inception). Other initiatives like the Braille
newspaper and calendar and campaigns to promote eye
donation are also integral aspects of the Drishti programme.

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The Dhirubhai Ambani Scholarship Scheme
Good education, without doubt, is one of the main
cornerstones for building a successful and prosperous
society. The merit cum means scholarship by RF ensures that
students get an opportunity to follow their dreams without
worrying about the financial implications of pursuing higher
education. The scholarship programme supports the top
scoring Higher Secondary students from financially weak
backgrounds and physically challenged students from across
all states and union territories of India to pursue education at
college level. A total of 393 scholarships have been awarded
this year of which nearly 50% were awarded to girls and
111 to students from physically challenged category. The
programme has positively influenced the lives of more than
10,000 young scholars and their families so far. RF organised
the Dhirubhai Ambani scholarship award ceremony at
Mumbai to award the scholarships to selected students in
January 2014.

Sports for Development
Recognizing the value of sports towards education,
fitness and well being of students, RF launched the
Jr. NBA programme in partnership with the National
Basketball Association (NBA). A comprehensive, school
based youth basketball programme in India, it is working
towards promoting health, fitness and an active lifestyle
through basketball and teaches the values of the game
such as teamwork, sacrifice, discipline, dedication and
sportsmanship. Launched in the cities of Mumbai and Kochi,
it has already reached 228 schools, 260 coaches and nearly
140,000 students. The programme aims at reaching one
million youth in three years. It will also train 2,000 coaches
and physical education instructors across India to sustain
this effort over a longer period.

RF is also implementing a programme in 30 villages
of Agar, Madhya Pradesh with the aim of empowering
children and communities through the medium of sports.
The programme is working towards creating an enabling
environment for
improved educational status, gender
inclusiveness and improved health outcomes through the
active participation of children, parents, larger community
and the local governance system.

Arts, Culture & Heritage
Reliance Foundation focuses on preserving the rich heritage,
arts and culture of India for its future generations and has
made conscious efforts to contribute towards preserving
the same. RF continued to support specific programmes to
promote Indian art.

Disaster Response
Reliance Foundation has a capacity to respond to disasters
in a timely manner and engage directly with the affected

communities using its experience of working closely with the
communities. When Uttarakhand was affected by massive
floods in June 2013, RF was one of the first organisations
to lend a supporting hand. RF relief efforts reached the
unreached that were cut off post the disaster. RF supported
the rescue and relief operations by ensuring supply of relief
material and prompt medical support. RF deployed a team
of 20 doctors and 50 development professionals to reach
out to more than 100 villages in Uttarakhand in the period
following the disaster. RF constructed 50 family shelters,
distributed more than 5,500 relief kits and conducted
medical camps that benefitted more than 8000 patients
in the months following the calamity. RF is committed to
continue the efforts in Uttarakhand and has deployed two
full time teams to streamline its efforts at Rudraprayag and
Uttarkashi. RF is also committed to reconstruct some of the
affected schools and houses in Uttarakhand.

School children at Uttarakhand

The use of Reliance Foundation Information Services
platforms to deliver key alerts and messages to the public
during the cyclone attacks in Andhra Pradesh is another
instance where RF was of timely help and assistance in the
times of need.

Environmental Sustainability
RF is working towards environmental sustainability through
its various initiatives. The foundation is promoting soil
and water conservation measures through its work in
the rural transformation space. 24 million cubic meters of
water harvesting facility has been created so far and the
intervention has helped to conserve 1,19,000 tonnes of soil.

More than 11,00,000 saplings have been planted on
individual and common lands to promote biodiversity.

Towards tapping natural resources of energy, RF has been
promoting the use of biogas plants and solar lamps. Close
to 750 biogas plants have been constructed this year. RF
distributed 1,500 solar lamps in Uttarakhand and partnered
with Shri Hriday Narain Dhawan Charitable Trust for
supporting the installation of 6000 solar street lights in the
district of Unnao, Uttar Pradesh.

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Corporate Governance Report

“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

In accordance with Clause 49 of the Listing Agreement
with BSE Limited (BSE) and the National Stock Exchange of
India Limited (NSE) 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 follows:

At Reliance Industries Limited (RIL), Corporate Governance
is all about maintaining a valuable relationship and trust
with all stakeholders. At RIL, we consider stakeholders
as partners in our success, and we remain committed
to maximising stakeholder value, be
it shareholders,
employees, suppliers, customers, investors, communities
or policy makers. This approach to value creation emanates
from our belief that sound governance system, based on
relationship and trust, is integral to creating enduring
value for all. 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.

Statement on Company’s philosophy on Code
of Governance
Corporate governance encompasses a set of systems and
practices to ensure that the Company’s affairs are being
managed
in a manner which ensures accountability,
transparency and fairness in all transactions in the widest
sense. The objective is to meet stakeholders’ aspirations
and societal expectations. Good governance practices
stem from the dynamic culture and positive mindset of
the organisation. At RIL, 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. Additionally, our customers have
benefited from high quality products delivered at extremely
competitive prices.

The essence of Corporate Governance lies in promoting
and maintaining integrity, transparency and accountability
in the management’s higher echelons. The demands of
corporate governance require professionals to raise their
competence and capability levels to meet the expectations

in managing the enterprise and its resources effectively
with the highest standards of ethics. It has thus become
crucial to foster and sustain a culture that integrates all
components of good governance by carefully balancing the
complex inter-relationship among the Board of Directors,
Audit Committee, Finance, Compliance and Assurance
teams, Auditors and the senior management. At RIL, 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 integral to India’s social development.
Details of several such initiatives are available in the Report
on Corporate Social Responsibility.

At RIL, we believe that as we move closer towards our
aspirations of being a global corporation, our corporate
governance standards must be globally benchmarked.
Therefore, we have institutionalised the right building
blocks for future growth. The building blocks will ensure
that we achieve our ambition in a prudent and sustainable
manner. RIL not only adheres to the prescribed corporate
governance practices as per Clause 49 of the Listing
Agreement with the Stock Exchanges in India (Listing
Agreement), but is also committed to sound corporate
governance principles and practices. It constantly strives to
adopt emerging best practices being followed worldwide. It
is our endeavour to achieve higher standards and provide
oversight and guidance to the management in strategy
implementation, risk management and fulfilment of stated
goals and objectives.

Over the years, we have strengthened governance practices.
These practices define the way business is conducted and
value is generated. Stakeholders’ interests are taken into
account, before making any business decision. RIL has the
distinction of consistently rewarding its shareholders over
36 eventful years from its first IPO. Since then, RIL has moved
from one big idea to another and these milestones continue
to fuel our relentless pursuit of ever-higher goals.

We have grown by a Compounded Annual Growth Rate
(CAGR) of Revenues 27.3%, EBITDA 27.1% and Net Profit
28.1%. The financial markets have endorsed our sterling
performance and the market capitalisation has increased
by CAGR of 33.2% 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 consistent unmatched shareholder returns since
listing. The result of our initiative is our ever widening reach

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and recall. Our shareholder base has grown from 52,000
after the IPO to a consolidated present base of around
3 million.

For decades, RIL is growing in step with India’s industrial
and economic development. The Company has helped
transform the Indian economy with big-ticket projects
and world-class execution. The quest to help elevate
India’s quality of life continues unabated. It emanates from
a fundamental article of faith: ‘What is good for India is
good for Reliance’.

We believe, Corporate Governance is not just a destination,
but a journey to constantly improve sustainable value
creation. It is an upward-moving target that we collectively
strive towards achieving. Our multiple initiatives towards
maintaining the highest standards of governance are
detailed in the following pages.

Appropriate Governance Structure with defined
roles and responsibilities

The Company has put in place an internal governance
structure with defined roles and responsibilities of every
constituent of the system. The Company’s shareholders
appoint the Board of Directors, which in turn governs
the Company. The Board has established six Committees
to discharge its responsibilities in an effective manner.
RIL’s Company Secretary acts as the Secretary to all six
Committees. The Chairman and Managing Director
(CMD) provides overall direction and guidance to the
Board. Concurrently, the CMD is responsible for overall
implementation. In the operations and functioning of the
Company, the CMD is assisted by four Executive Directors
and a core group of senior level executives.

Board Leadership

A majority of the Board, 8 out of 14, are Independent
Directors. At RIL, it is our belief that an enlightened Board
consciously creates a culture of leadership to provide
a long-term vision and policy approach 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 elevating the Company’s value
creation. The Company has defined guidelines and an
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 the Company’s strategic
direction, management policies and their effectiveness.
The agenda for the 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, possible risks and risk
mitigation measures, 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 Company’s future growth.

Ethics Policies

At RIL, we strive to conduct our business and strengthen
our relationships in a manner that is dignified, distinctive
and responsible. We adhere to ethical standards to ensure
integrity, transparency, independence and accountability in
dealing with all stakeholders. Therefore, we have adopted
various codes and policies to carry out our duties in an
ethical manner. Some of these codes and policies are:

zz Code for Board of Directors and Board Committees

zz Code of Business Conduct and Ethics for Directors /

Management Personnel

zz Code of Conduct for Prohibition of Insider Trading

zz Code of Ethics and Business Policies

zz Policy document on Values and Commitments

zz Manual on Corporate Governance

zz Health, Safety and Environment (HSE) Policy

zz Code of Financial Reporting, Disclosure & Transparency

zz Business Responsibility Policy Manual

Audits and internal checks and balances

M/s. Deloitte Haskins & Sells LLP, 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 PrimeGlobal, an association of Independent
Accounting Firms, audit the accounts of the Company.
The Company has an Internal Audit Cell besides external
firms acting as independent 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. RIL has instituted a

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legal compliance programme in conformity with the best
international standards, supported by a robust online
system that covers the Company’s manufacturing units as
well as its subsidiaries. The purview of this system includes
various 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 extensive use of
integrity of
technology. This ensures robustness and
financial reporting, internal controls, allows optimal use
and protection of assets, facilitates accurate and timely
compilation of financial statements and management
laws,
reports and ensures compliance with statutory
regulations and company policies.

Management Initiatives for Controls and
Compliance

the management

A sub-set of Business transformation initiative undertaken
by
support higher growth,
institutionalisation of best processes and new structures for
governance, is dedicated for risk management, controls and
compliances across the organisation.

RIL applies a common and systematic approach to risk
management, controls and compliances in an integrated
manner. The Company 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 its internal
control framework.

The framework has been documented to provide a
comprehensive view of:

zz the process
zz key control points
zz 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

the highest standards of corporate
RIL maintains
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 implemented global governance norms include the
following:

zz The Company has a designated Lead Independent

Director with a defined role.

zz All securities related filings with Stock Exchanges and
SEBI are reviewed every quarter by the Company’s
(previously
Stakeholders Relationship Committee
Shareholders’/
Investors’ Grievance Committee) of
Directors.

zz The Company has

independent Board Committees
for matters related to corporate governance and
stakeholders’
interface and nomination of Board
members.

zz The Company’s

internal audit

is conducted by

independent auditors.

zz The Company also undergoes secretarial audit conducted
by an independent company secretary who is in whole-
time practice. Quarterly secretarial audit reports are
placed before the Board and the annual secretarial audit
report placed before the Board, is included in the Annual
Report.

Business and Functional Risk and Assurance
Committees (BRACs)

To have a better assessment of the business and functional
risks and to monitor risk mitigation effectiveness based
on risk evaluation, the concept of BRACs was introduced
comprising senior management personnel in the said
committee.

Proactive Review of Governance practices and
standards

its governance practices and
RIL proactively reviews
standards
inter alia considering best practices and
regulatory developments. During the year under review,
the following significant developments took place on the
governance front:

zz Constitution of ‘Corporate Social Responsibility and
Governance Committee’: Considering the work being
done by the Company on social front, the Company’s
Board has constituted a ‘Corporate Social Responsibility
and Governance Committee’ (CSR&G Committee). CSR&G
Committee
is primarily responsible for formulating
and monitoring the implementation of the framework
of corporate social responsibility policy, other policies
under Business Responsibility Policy Manual and to look
into sustainability matters and matters related to overall
governance.

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zz Human Resources, Nomination and Remuneration
Committee: To rationalise all employees’ related issues,
while adhering to the requirements of the Companies
Act, 2013 / Clause 49 of the Listing Agreement,
Securities and Exchange Board of India (Employee
Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999, as amended from time to
time, the Board of the Company has constituted ’Human
Resources, Nomination and Remuneration Committee‘
(HRNR Committee). The terms of reference of the
‘Remuneration Committee’ was conferred on the HRNR
Committee; consequently, the Remuneration Committee
was dissolved.

zz Audit Committee: The Audit Committee’s strength was
increased to four members by nominating one more
Independent Director in the Committee.

zz Stakeholders Relationship Committee: The Board
has constituted Stakeholders Relationship Committee
in accordance with the provisions of the Companies
Act, 2013 and Clause 49 of the Listing Agreement. The
terms of reference of Shareholders’ / Investors’ Grievance
(SIG) Committee was conferred on the Stakeholders
Relationship Committee and consequently, the SIG
Committee was dissolved.

Corporate Social Responsibility (CSR)

With the belief in the philosophy of responsible corporate
citizenship and sustainable growth, RIL considers social
institution building as one of its main purposes. Increasing
its commitment, RIL built a comprehensive community
development programme to support initiatives in the field
of health, safety, education, infrastructure development,
environment, relief and assistance in the event of a
natural disaster, livelihood support, promoting sports and
sportsmen and contributions to other social development
organisations through collaborations with several NGOs.
Besides this, RIL aims at developing techno-economically
viable and environment-friendly products and services for
the benefit of millions of its consumers while ensuring high
safety and environment protection standards.

RIL’s sustainability reporting journey

RIL commenced annual reporting on its triple-bottom-
line performance from the Financial Year 2004-05. All its
sustainability reports are externally assured and Global
level checked.
Reporting
The maiden report received ‘in-accordance’ status from
GRI and all subsequent reports are ‘GRI G3 Checked A+’

(GRI) application

Initiative

Association

Sustainability

International Petroleum

application level reports. From Financial Year 2006-07,
in addition to referring GRI G3 Sustainability Reporting
Guidelines, RIL refers to the American Petroleum Institute
Industry Environmental
/ the
Reporting
Conservation
Guidelines and the United Nations Global Compact
Principles. RIL has also aligned its sustainability activities
with the focus areas of the World Business Council for
Sustainable Development. From the Financial Year 2011-12,
Reliance adopted the newly published GRI G3.1 guidelines
and is additionally referring to GRI G3.1 – Oil & Gas Sector
Supplement. RIL has aligned its sustainability report with
the National Voluntary Guidelines on Social, Environmental
and Economic Responsibilities of Business framed by the
Government of India. In line with RIL’s endeavour to be the
pioneers in sustainability reporting, RIL is also coming up
with its maiden report based on the latest G4 guidelines
published by GRI.

Working towards People, Planet, Profit & Product

RIL works towards attaining a sustained financial bottom
line along with enhancing the natural human capital and
product development. It is committed to reduce its negative
impacts and enhance its positive impacts on the society as
well as the natural environment.

In addition to making a positive economic contribution to
the nation and society at large, it has focused its energies on
identifying specific impact areas. It endeavours to alleviate
the underprivileged and marginalized sections of the
society and has an active engagement with them to ensure
their holistic development.

RIL supports life cycle assessment studies being done by
Indian Centre for Plastics in the Environment (ICPE) and also
works with the Bureau of Indian Standards for formulating
standards and guidelines.

It has also imbibed the concept of resource conservation
into its operations. It strives to achieve highest levels of
efficiencies by implementing best available technologies.

Social, Environmental and Economic
Responsibilities

RIL is committed to create value for the nation and
enhance the quality of life across the entire socio-economic
spectrum. RIL believes that Corporate Social Responsibility
extends beyond the ambit of business and should focus on
a broad portfolio of assets - human, physical, environmental

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and social. RIL gives utmost importance to conservation
of the natural capital at its operations. RIL is committed to
responsible stewardship of the natural resources to conduct
its operations in a sustainable manner. 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 (NVG) 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).

Shareholders communications

recognises

information

importance of

(www.ril.com) has

two-way
the
The Board
communication with shareholders and giving a balanced
report of results and progress and responding to questions
and issues raised in a timely and consistent manner. RIL’s
for
corporate website
institutional and retail shareholders alike. Shareholders
seeking information related to their shareholding may
contact the Company directly or through any of the
Investor service centres of the Company’s Registrars and
Transfer Agents spread over 82 cities across India, details of
which are available on the Company’s website. RIL ensures
that complaints and suggestions of its shareholders are
responded to in a timely manner. A comprehensive and
informative shareholders’ referencer is appended to this
annual report.

between the management and regulatory authorities for
governance matters.

Observance of the Secretarial Standards issued by
the Institute of Company Secretaries of India

The Institute of Company Secretaries of India (ICSI), one of
India’s premier professional bodies, 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, as of now, are recommendatory
in nature, the Company substantially adheres to these
standards voluntarily.

Board of Directors
Board composition and category of Directors

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

Ramniklal H. Ambani

Role of the Company Secretary in overall
governance process

Non-Executive Non-
Independent Director

effective decision-making

The Company Secretary plays a key role in ensuring that
regularly
the Board procedures are
followed and
that all
reviewed. The Company Secretary ensures
relevant
information, details and documents are
made available to the Directors and senior management
for
the meetings.
is primarily responsible to
The Company Secretary
assist and advise the Board in the conduct of affairs
compliance with
of
applicable
Secretarial
Standards, to provide guidance to directors and to
interfaces
convening of meetings. He
facilitate

the Company,
statutory

to
requirements

ensure

and

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
Adil Zainulbhai

No Director is, inter se, 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.

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Selection of Independent Directors

independent standing

Considering the requirement of skill sets on the Board,
eminent people having an
in
their respective field/profession, and who can effectively
contribute to the Company’s business and policy decisions
are considered by the Human Resources, Nomination and
Remuneration Committee, for appointment, as Independent
Directors on the Board. The Committee, inter alia, considers
qualification, positive attributes, area of expertise and
number of Directorships and Memberships held in various
committees of other companies by such persons. The Board
considers the Committee’s recommendation, and takes
appropriate decision.

Every Independent Director, at the first meeting of the
Board in which he participates as a Director and thereafter
at the first meeting of the Board in every financial year, gives
a declaration that he meets the criteria of independence as
provided under law.

Lead Independent Director

The Company’s Board of Directors has designated
Shri Mansingh L. Bhakta as the Lead Independent Director.
The Lead Independent Director’s role is as follows:

zz To preside over all meetings of Independent Directors

zz To ensure there is an adequate and timely flow of

information to Independent Directors

zz To liaise between the Chairman and Managing Director,

the Management and the Independent Directors

zz 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

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

Meetings of Independent Directors

The Company’s Independent Directors meet at least once
in every financial year without the presence of Executive
Directors or management personnel. Such meetings are
conducted informally to enable Independent Directors to
discuss matters pertaining to the Company’s affairs and
put forth their views to the Lead Independent Director.
The Lead Independent Director takes appropriate steps to
present Independent Directors’ views to the Chairman and
Managing Director.

Code of Business Conduct and Ethics for
Directors/ Management Personnel

The Code of Business Conduct and Ethics for Directors/
Management Personnel (‘the Code’), as adopted by the
Board, is a comprehensive Code applicable to 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 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 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 Directors
and Management Personnel, and its compliance is affirmed
by them annually.

A declaration signed by the Company’s Chairman and
Managing Director is published in this Report.

Directors’ Profile

A brief resume of Directors, nature of their expertise in
specific functional areas and company names in which
they hold Directorships, Memberships/ Chairmanships of
Board Committees, and shareholding in the Company are
provided in this Annual Report.

Board Meetings, Board Committee Meetings
and Procedures
Institutionalised decision-making process

The Board of Directors is the apex body constituted
by shareholders for overseeing the Company’s overall
functioning. The Board provides and evaluates the
Company’s strategic direction, management policies and
their effectiveness, and ensures that shareholders’ long-
term interests are being served.

The Board has constituted six Board Committees, namely
Audit Committee, Human Resources, Nomination and
Remuneration Committee, Corporate Social Responsibility
and Governance Committee, Finance Committee, Health,
Safety and Environment Committee and Stakeholders
is authorised to
Relationship Committee. The Board

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constitute additional functional Committees, from time to
time, depending on business needs.

zz Fatal or serious accidents, dangerous occurrences, and

any material effluent or pollution problems

The Company’s
for Board/Board
internal guidelines
Committee meetings facilitate the decision making process
at its meetings in an informed and efficient manner. The
following sub-sections deal with the practice of these
guidelines at RIL.

Scheduling and selection of agenda items for
Board meetings

Minimum five pre-scheduled Board meetings are held
annually. Additional Board meetings are convened by
giving appropriate notice to address the Company’s specific
needs. In case of business exigencies or urgency of matters,
resolutions are passed by circulation.

The meetings are usually held at the Company’s office at
Maker Chambers IV, 222 Nariman Point, Mumbai 400 021.

The Company’s various business heads / service heads
are advised to schedule their work plans well in advance,
particularly with regard to matters requiring discussion/
approval/decision at Board/Board Committee meetings.
Such matters are communicated by them to the Company
Secretary in advance so that they are included in the agenda
for Board/Board Committee meetings.

The Board is given presentations covering Finance, Sales,
Marketing, the Company’s major business segments and
their operations, overview of business operations of major
subsidiary companies, global business environment, the
Company’s business areas, including business opportunities
and strategy and risk management practices before taking
on record the Company’s quarterly/annual financial results.

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

zz 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.

zz Details of any joint venture or collaboration agreement

zz Transactions that involve substantial payment towards

goodwill, brand equity or intellectual property

zz Significant

labour problems and

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

zz Sale of material nature of investments, subsidiaries,

assets, which is not in normal course of business.

zz Quarterly details of foreign exchange exposures, and
steps taken by management to limit risks of adverse
exchange rate movement, if material

zz Non-compliance of any regulatory, statutory or listing
requirements, and shareholders’ service, such as dividend
non-payment, share transfer delay (if any), among others

zz Appointment, remuneration and resignation of Directors

zz Formation/reconstitution of Board Committees

zz Terms of reference of Board Committees

zz Minutes of Board meetings of unlisted subsidiary

companies

The items / matters required to be placed before the Board,
inter alia, include:

zz Declaration of Independent Directors at the time of

appointment/annually

zz Annual operating plans of businesses and budgets

zz Disclosure of Directors’ interest and their shareholding

including capital budgets and any updates

zz Quarterly results of the Company and its operating

divisions or business segments

zz Company’s

annual

Financial

Results,

Financial

Statements, Auditors’ Report and Board’s Report

zz Minutes of meetings of the Audit Committee and other

Committees of the Board.

zz Show cause, demand, prosecution notices and penalty

notices, which are materially important

zz Appointment or removal of the Key Managerial Personnel

(KMP) and officers one level below KMP.

zz Appointment of

Internal Auditors and Secretarial

Auditors.

zz Quarterly / Annual Secretarial Audit reports submitted

by Secretarial Auditors

zz Dividend declaration

zz Quarterly summary of all long-term borrowings made,
bank guarantees issued and loans and investments made

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zz Significant changes in accounting policies and internal

controls

zz Takeover of a company or acquisition of a controlling or

substantial stake in another company

zz Statement of significant transactions, related party
transactions and arrangements entered by unlisted
subsidiary companies

Recording minutes of proceedings at Board and
Committee meetings

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

zz Issue of securities including debentures

Post meeting follow-up mechanism

zz Appointment of and fixing of remuneration of the

Auditors as recommended by the Audit Committee

zz Internal Audit findings and External Audit Reports

(through the Audit Committee)

zz Proposals

for major

investments, mergers,

amalgamations and reconstructions

zz Status of business risk exposures, its management and

related action plans

zz Making of loans and investment of surplus funds

zz Borrowing of monies, giving guarantees or providing

security in respect of loans

zz Buyback of securities by the Company

zz Diversify the business of the Company

zz Brief on statutory developments, changes in government
policies, among others with impact thereof, Directors’
responsibilities arising out of any such developments

zz Compliance Certificate certifying compliance with all

laws as applicable to the Company

zz Reconciliation of Share Capital Audit Report under SEBI

(Depositories and Participants) Regulations, 1996

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

Compliance

The Company Secretary, while preparing the agenda,
notes on agenda, minutes of the meeting(s), is responsible
for and is required to ensure adherence to all applicable
laws and regulations, including the Companies Act, 1956/
Companies Act, 2013 read with rules issued thereunder, as
applicable and the Secretarial Standards recommended by
the Institute of Company Secretaries of India.

Number of Board meetings held with dates

Six Board meetings were held during the year, as against the
minimum requirement of four meetings.

zz Brief on information disseminated to the press

The details of Board meetings are given below:

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

Board material distributed in advance

The agenda and notes on agenda are circulated to Directors
in advance, and 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,
it 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.

Date

Board Strength

No. of Directors
Present

April 16, 2013

July 19, 2013

October 14, 2013

December 20, 2013

January 17, 2014

March 3, 2014

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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

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

Adil Zainulbhai*

Attendance at meetings
during 2013-14

No. of Other
Directorship(s)1

Board Meetings

Last AGM

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

Yes

N.A.

Nil

1 (as Chairman)

2 (including 1 as Chairman)

Nil

1 (as Chairman)

4 (including 3 as Chairman)

Nil

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 of the Listing Agreement, Memberships/Chairmanships of only Audit Committees and Shareholders’/Investors’ Grievance Committees in

all public limited companies (excluding Reliance Industries Limited) have been considered.

*Appointed as Director, w.e.f. December 20, 2013. 3 meetings were held during his tenure.

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

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

Composition of Board 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

4. Adil Zainulbhai1

Independent Director

Corporate Social Responsibility and
Governance Committee**

1. Yogendra P. Trivedi

Independent Director
(Chairman of the Committee)

2. Nikhil R. Meswani
Executive Director

3. Dr. Dharam Vir Kapur
Independent Director

4. Dr. Raghunath A. Mashelkar

Independent Director

Health, Safety and Environment
Committee

1. Hital R. Meswani
Executive Director
(Chairman of the Committee)

2. Dr. Dharam Vir Kapur
Independent Director

3. P.M.S. Prasad

Executive Director

4. Pawan Kumar Kapil
Executive Director

Human Resources, Nomination and
Remuneration Committee*

1. Adil Zainulbhai

Independent Director
(Chairman of the Committee)

2. Yogendra P. Trivedi

Independent Director

3. Dr. Dharam Vir Kapur
Independent Director

4. Dr. Raghunath A. Mashelkar

Independent Director

Stakeholders Relationship
Committee***

1. Yogendra P. Trivedi

Independent Director
(Chairman of the Committee)

2. Nikhil R. Meswani
Executive Director

3. Hital R. Meswani
Executive Director

4. Prof. Ashok Misra

Independent 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

* Constituted on December 20, 2013. The terms of reference of the ‘Remuneration Committee’ and ‘Employee Stock Compensation Committee’ (ESC Committee) was
conferred on ‘Human Resources, Nomination and Remuneration Committee’ (HRNR Committee); consequently, the ‘Remuneration Committee’ and the ‘ESC Committee’
were dissolved.

**Constituted on January 17, 2014; the terms of reference of ‘Corporate Governance and Stakeholders’ Interface Committee’ (CGSI Committee) was conferred on the
Corporate Social Responsibility and Governance Committee; consequently, the ‘CGSI Committee’ was dissolved.

***Constituted on April 18, 2014. The terms of reference of the ‘Shareholders’ / Investors’ Grievance Committee’ (SIG Committee) was conferred on ‘Stakeholders
Relationship Committee’; consequently, the ‘SIG Committee’ was dissolved.

1 Appointed as a member, w.e.f. December 20, 2013

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

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Meetings of Board Committees held during the year and Directors’ attendance:

Board Committee

Audit
Committee

Remuneration
Committee2

Shareholders’/
Investors’
Grievance
Committee1

Human
Resources
Nomination and
Remuneration
Committee3

Corporate
Governance
and
Stakeholders’
Interface
Committee4

Employees
Stock
Compensation
Committee5

Health,
Safety and
Environment
Committee

Finance
Committee

Meetings held

Directors’ Attendance

Mukesh D. Ambani

Nikhil R. Meswani

Hital R. Meswani

P.M.S. Prasad

Pawan Kumar Kapil

Mansingh L. Bhakta

Yogendra P. Trivedi

Dr. Dharam Vir Kapur

Mahesh P. Modi

Prof. Ashok Misra

Prof. Dipak C. Jain

Dr. Raghunath A.
Mashelkar

Adil Zainulbhai

NA – Not a member of the Committee

*Appointed as a member, w.e.f. December 20, 2013. One meeting was held during his tenure.

1 The terms of reference of this Committee was conferred on the ‘Stakeholders Relationship Committee’ constituted by the Board on April 18, 2014; consequently, the
‘Shareholders’ / Investors’ Grievance Committee’ was dissolved w.e.f. April 18, 2014.

2 The terms of reference of this Committee was conferred on the ‘Human Resources, Nomination and Remuneration Committee’; consequently, this Committee was
dissolved w.e.f. December 20, 2013.

3 This Committee was constituted on December 20, 2013.

4 The terms of reference of this Committee was conferred on the ‘Corporate Social Responsibility and Governance Committee’; consequently, this committee was
dissolved, w.e.f. January 17, 2014.

5 The terms of reference of this Committee was conferred on the ‘Human Resources, Nomination and Remuneration Committee’; consequently, this Committee was
dissolved, w.e.f. December 20, 2013.

No meeting of the Corporate Social Responsibility and Governance Committee was held during FY 2013-14 after its constitution on January 17, 2014.

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Procedure at Committee Meetings

The Company’s guidelines relating to Board meetings are
applicable to Committee meetings as far as practicable.
Each Committee has the authority to engage outside
experts, advisors and counsels to the extent it considers
appropriate to assist in its function. Minutes of proceedings
of Committee meetings are circulated to the Directors and
placed before Board meetings for noting.

zz Reviewing with the management, annual financial
statements and auditors
thereon before
submission to the Board for approval, with particular
reference to:

report

zz 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.

Terms of Reference and other details of
Board Committees

Audit Committee

Composition of the Committee

Yogendra P. Trivedi
(Chairman of the Committee)
Mahesh P. Modi
Dr. Raghunath A. Mashelkar
Adil Zainulbhai

Independent Director

Independent Director
Independent Director
Independent Director

The Committee’s composition meets with requirements of
Section 177 of the Companies Act, 2013 and Clause 49 of
the Listing Agreement. Members of the Audit Committee
possess financial / accounting expertise / exposure.

Powers of the Audit Committee

zz To investigate any activity within its terms of reference

zz To seek information from any employee

zz To obtain outside legal or other professional advice

zz To secure attendance of outsiders with relevant expertise,

if it considers necessary

Changes,
practices and reasons for the same

if any,

in accounting policies and

zz Major accounting entries

based on the exercise of
management

involving estimates
judgment by the

Significant adjustments made
statements arising out of audit findings

in financial

Compliance with
requirements relating to financial statements

listing and other

legal

Disclosure of related party transactions

Qualifications in draft audit report

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

zz 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 utilised 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

zz Reviewing and monitoring the auditors independence
and performance and effectiveness of audit process

Role of the Audit Committee inter alia, includes the
following:

zz Approval or any subsequent modification of transactions

of the Company with related parties

zz Oversight of the Company’s financial reporting process
and the disclosure of its financial information to ensure
that the financial statement is correct, sufficient and
credible

zz Recommending

the appointment,
the Board,
reappointment and, if required, the replacement or
removal of statutory auditors, including cost auditors,
and fixation of audit fees and other terms of appointment

zz Approving payment to statutory auditors, including cost

auditors for any other services rendered by them

zz Scrutiny of inter-corporate loans and investments

zz Valuation of undertakings or assets of the Company,

wherever it is necessary

zz Evaluation of

internal financial controls and risk

management systems

zz Reviewing with the management, the performance of
statutory auditors, including cost auditors and internal
auditors, adequacy of internal control systems

zz Reviewing the adequacy of internal audit function,
if any, including the structure of the internal audit
department, staffing and seniority of the official heading

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

zz Discussion with internal auditors, any significant findings

and follow-up thereon

zz 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

zz Discussion with statutory auditors, before the audit
commences, about the nature and scope of audit as well
as post audit discussion to ascertain any area of concern

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

zz To review the functioning of the Whistle Blower

mechanism

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

zz Carrying out such other functions as may be specifically
referred to the Committee by the Company’s Board of
Directors and/or other Committees of Directors.

observations of the auditors and review of financial
statement before their submission to the Board and to
discuss any related issue with the internal and statutory
auditors and the management of the Company

General

Executives of Accounts Department, Finance Department,
Corporate Secretarial Department and Internal Audit Cell
and representatives of statutory and internal auditors
attend Audit Committee Meetings. The cost auditors 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, 2013 was
September 27, 2013 and the cost audit reports were filed by
the Lead Cost Auditor on September 21, 2013. The due date
for filing the cost audit reports for the financial year ended
March 31, 2014 is September 27, 2014.

The Chairman of the Audit Committee was present at the
last Annual General Meeting held on June 6, 2013.

Meeting Details

Four meetings of the Audit Committee were held during the
year. The details of meetings and attendance are given on
page no. 120.

Human Resources, Nomination and Remuneration
Committee

Composition of the Committee

zz Reviewing financial statements,

in particular

the
the Company’s unlisted

investments made by
subsidiaries.

zz Reviewing the following information:

Adil Zainulbhai
(Chairman of the Committee)

The Management Discussion and Analysis of
financial condition and results of operations;

Yogendra P. Trivedi

Dr. Dharam Vir Kapur

Independent Director

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

zz Management letters/letters of internal control
weaknesses issued by the statutory auditors;

Internal audit reports relating to internal control
weaknesses; and

The appointment,
terms of
remuneration of internal auditors / chief internal
auditor

removal and

zz To call for comments of the auditors about internal
control systems, the scope of audit, including the

Dr. Raghunath A. Mashelkar

Independent Director

The Committee’s constitution and terms of reference are
in compliance with provisions of the Companies Act, 2013,
Clause 49 of the Listing Agreement and Securities and
Exchange Board of India (Employee Stock Option Scheme
and Employee Stock Purchase Scheme) Guidelines, 1999, as
amended from time to time.

Terms of Reference of the Committee, inter alia, includes
the following:

zz To

identify persons who are qualified to become
in senior

Directors and who may be appointed

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management in accordance with the criteria laid down
and to recommend to the Board their appointment and/
or removal.

zz To carry out evaluation of every Director’s performance

zz To formulate the criteria for determining qualifications,
positive attributes and independence of a Director,
and recommend to the Board a policy, relating to
the remuneration for the Directors, key managerial
personnel and other employees

zz To formulate the criteria for evaluation of Independent

Directors and the Board

zz To devise a policy on Board diversity

zz To recommend/review remuneration of the Managing
Director(s) and Whole-time Director(s) based on their
performance and defined assessment criteria

zz To administer, monitor and formulate detailed terms
and conditions of the Employees’ Stock Option Scheme
including:

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

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

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

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

the right of an employee to exercise all options
vested in him at one time or 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 granting, vesting and exercising of options in
case of employees who are on long leave; and the
procedure for cashless exercise of options

zz To 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

zz To perform such other functions as may be necessary or

appropriate for the performance of its duties

Meeting Details

One meeting of the Human Resources, Nomination and
Remuneration Committee was held during the year. The
details of meeting and attendance are given on page no.
120.

The details relating to remuneration of Directors, as required
under the Clause 49 of the Listing Agreement, have been
given under a separate section, viz. ‘Directors’ Remuneration’
in this report.

Stakeholders Relationship Committee

Composition of the Committee

Yogendra P. Trivedi
(Chairman of the Committee)

Nikhil R. Meswani

Hital R. Meswani

Prof. Ashok Misra

Independent Director

Executive Director

Independent Director

The ‘Stakeholders Relationship Committee’ (SR Committee)
was constituted by the Board on April 18, 2014 consequent
to the dissolution of the ‘Shareholders’/Investors’ Grievance
Committee’ (SIG Committee).
is
primarily responsible to review all matters connected
with the Company’s transfer of securities and redressal of
shareholders’ / investors’ / security holders’ complaints.
The Committee also monitors the implementation and
compliance with the Company’s Code of Conduct for
prohibition of Insider Trading.

The SR Committee

The SR Committee’s composition and the terms of reference
meet with the requirements of Clause 49 of the Listing
Agreement and provisions of the Companies Act, 2013.

Terms of Reference of the Committee, inter alia, includes
the following:

zz Oversee and review all matters connected with the

transfer of the Company’s securities

zz Approve issue of the Company’s duplicate share /

debenture certificates

zz Monitor redressal of investors’ / shareholders’ / security

holders’ grievances

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zz Oversee the performance of the Company’s Registrars

and Transfer Agents

zz Recommend methods to upgrade the standard of

services to investors

zz Monitor implementation of the Company’s Code of

Conduct for Prohibition of Insider Trading

zz Carry out any other function as is referred by the
Board from time to time or enforced by any statutory
notification / amendment or modification as may
be applicable

Meeting Details

Four meetings of the ‘SIG Committee’ were held during the
year. The details of meetings and attendance are given on
page no. 120.

Compliance Officer

Shri K. Sethuraman, Group Company Secretary and
Chief Compliance Officer, is the Compliance Officer for
complying with requirements of Securities Laws and Listing
Agreements with 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

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

Number of
Complaints
266
2585
164

Non-Receipt of Certificates
TOTAL
As on March 31, 2014, one complaint was outstanding.

307
3322

Corporate Social Responsibility and Governance
Committee

Composition of the Committee

Yogendra P. Trivedi
(Chairman of the Committee)
Nikhil R. Meswani
Dr. Dharam Vir Kapur
Dr. Raghunath A. Mashelkar

Independent Director

Executive Director
Independent Director
Independent Director

The Corporate Social Responsibility and Governance
(CSR&G) Committee was constituted by the Board on January
17, 2014 considering requirements of the Companies Act,
2013 relating to the constitution of a Corporate Social
Responsibility Committee. The Board also empowered the
Committee to look into matters related to sustainability and
overall governance. The Committee’s prime responsibility is
to assist the Board in discharging its social responsibilities
by way of formulating and monitoring implementation of
the framework of ‘corporate social responsibility policy’,
observe practices of Corporate Governance at all levels, and
to suggest remedial measures wherever necessary.

The terms of reference of the Corporate Governance and
Stakeholders’ Interface Committee (CGSI Committee) was
conferred on this Committee, and consequently, the CGSI
Committee was dissolved, w.e.f. January 17, 2014.

The Committee’s constitution and terms of reference meet
with the requirements of the Companies Act, 2013.

Terms of Reference of the Committee, inter alia, includes
the following:

zz To formulate and recommend to the Board, a Corporate
Social Responsibility (CSR) Policy indicating activities
to be undertaken by the Company in compliance with
provisions of the Companies Act, 2013 and rules made
there under

zz To recommend the amount of expenditure to be incurred

on the CSR activities

zz To monitor the implementation of the framework of the

CSR Policy

zz To approve the Corporate Sustainability Report and
oversee the implementation of sustainability activities

zz To oversee the implementation of polices contained in
the Business Responsibility Policy Manual, to make any
changes / modifications, as may be required, from time
to time and to review and recommend the Business
Responsibility Report (BRR) to the Board for its approval

zz To observe corporate governance practices at all levels
and to suggest remedial measures wherever necessary

zz To ensure compliance with corporate governance
norms prescribed under Listing Agreements with Stock
Exchanges, the Companies Act and other statutes or any
modification or re-enactment thereof

zz To advise the Board periodically with respect to
significant developments in the law and practice of

Corporate Governance Report (Continued)124

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corporate governance, and to make recommendations
to the Board for appropriate revisions to the Company's
Corporate Governance Guidelines

zz To monitor the Company’s compliance with Corporate
laws and
Governance Guidelines and applicable
regulations, and make recommendations to the Board
on all such matters and on any corrective action to be
taken, as the Committee may deem appropriate

zz To review and assess the adequacy of the Company’s
Corporate Governance Manual, Code of Business
Conduct & Ethics for Directors and Management
Personnel, Code of Ethics and other internal policies and
guidelines, and monitor that principles described therein
are being incorporated into the Company’s culture and
business practices

zz To formulate / approve codes and / or policies for better

governance

zz To provide correct inputs to the media so as to preserve

and protect the Company’s image and standing

zz To disseminate factually correct information to investors,

institutions and the public at large

zz To establish oversight on

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

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

zz To 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 or as may be necessary or appropriate
for performance of its duties.

Health, Safety and Environment Committee

Composition of the Committee

Hital R. Meswani
(Chairman of the Committee)

Executive Director

Dr. Dharam Vir Kapur

Independent Director

P.M.S. Prasad

Pawan Kumar Kapil

Executive Director

of environmental, health and safety norms are maintained,
and the Company’s operations are in compliance with
applicable pollution and environmental laws across all
locations. The Committee fulfils its responsibilities by
reviewing the management of health, safety, environmental
and social impacts of the Company’s various projects and
operations.

Terms of Reference of the Committee, inter alia, includes
the following:

zz Monitoring and ensuring the highest standards of

environmental, health and safety norms

zz Ensuring compliance with applicable pollution and
environmental laws at the Company’s works / factories
/ locations by putting in place effective systems in this
regard and reviewing the same periodically

zz Reviewing, as the Committee deems appropriate, the
Company’s health, safety and environment related policy
and making recommendations as necessary

zz Reviewing the Company’s performance on health,
safety and environment related matters and suggesting
improvements as the Committee may deem necessary

zz Reviewing procedures and controls being followed at
the Company’s various manufacturing facilities and
plants for compliance with relevant statutory provisions

zz Reviewing regularly and making recommendations

about changes to the charter of the Committee

zz Obtaining or performing an annual evaluation of the
Committee’s performance and making appropriate
recommendations

Meeting Details

Four meetings of the Health, Safety and Environment
Committee were held during the year. The details of the
meetings and attendance are given on page no. 120.

Finance Committee

Composition of the Committee

Mukesh D. Ambani
(Chairman of the Committee)

Chairman and
Managing Director

The Health, Safety and Environment Committee is primarily
responsible to monitor and ensure the highest standards

Nikhil R. Meswani

Hital R. Meswani

Executive Director

126

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Terms of Reference of the Committee, inter alia, includes
the following:

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

zz Review the Company’s financial policies, risk assessment
and minimisation procedures, strategies and capital
structure, working capital and cash flow management,
and make such reports and recommendations to the
Board with respect thereto, as it may deem advisable

zz Review banking arrangements and cash management

zz Exercise all powers to borrow money (otherwise than
by issue of debentures) within limits approved by the
Board, and take necessary actions connected therewith,
including refinancing for optimisation of borrowing
costs

zz Give guarantees/issue

letters of comfort/providing

securities within the limits approved by the Board

zz Borrow money by way of loan and/or issue and allot
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
limits approved by the Board

Directors’ Remuneration

zz 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.

zz 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

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

zz Delegate authorities from time to time to the executives/
implement the Committee’s

authorised persons to
decisions

zz Review regularly and make recommendations about

changes to the charter of the Committee

Meeting Details

Seven meetings of the Finance Committee were held during
the year. The details of meetings and attendance are given
on page no. 120.

Remuneration policy
The Company’s remuneration policy is directed towards rewarding performance based on review of achievements
periodically. The remuneration policy is in consonance with the existing industry practice.

Remuneration paid to the Chairman and Managing Director and Whole-time Directors during 2013-14:

` in crore

Name of the
Director

Salary

Perquisites and
allowances

Retiral
benefits

Commission
payable

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

4.16
1.15
1.15
0.86
0.50

0.60
1.45
1.45
1.35
0.75

0.82
0.32
0.31
0.15
0.19

9.42
9.20
9.20
-
-

* Performance Linked Incentive for the FY 2012-13 was paid during financial year 2013-14.

Performance
Linked
Incentive*
-
-
-
3.67
1.05

Total

15.00
12.12
12.11
6.03
2.49

Stock
options
granted
Nil
Nil
Nil
Nil
Nil

The Chairman and Managing Director’s compensation has been set at ` 15 crore as against ` 38.86 crore as per shareholders’
approval, reflecting his desire to continue to set a personal example for moderation in managerial compensation levels.

Performance criteria for two Executive Directors, entitled for Performance Linked Incentive (PLI), are determined by the
Human Resources, Nomination and Remuneration Committee.

Corporate Governance Report (Continued)126

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The tenure of office of the Managing Director and Whole-
time Directors is for five 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 on net profit to
Non-Executive Directors:

Prof. Dipak C. Jain, the Company’s Independent Director has
been appointed as a Director on the Board of Reliance Retail
Ventures Limited, a subsidiary.

General Body Meetings
Annual General Meetings

` in lakh

During the preceding three years, the Company’s Annual
General Meetings were held at Birla Matushri Sabhagar, 19,
New Marine Lines, Mumbai - 400020.

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
Adil Zainulbhai
TOTAL

Sitting
Fee
1.00
1.00
4.00
3.00
2.60
2.00
1.40

2.20

1.00
18.20

Commission

Total

50.00
50.00
50.00
50.00
50.00
50.00
50.00

50.00

51.00
51.00
54.00
53.00
52.60
52.00
51.40

52.20

14.00
414.00

15.00
432.20

During the year, the Company paid ` 0.32 crore as
professional fees to M/s. Kanga & Co., a firm in which the
Company’s Director, Shri Mansingh L. Bhakta, is a partner.
There were no other pecuniary relationships or transactions
of Non-Executive Directors vis-à-vis the Company. The
Company has not granted any stock option to any of its
Non-Executive Directors.

Subsidiary Companies’ Monitoring
Framework
All subsidiary companies 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:

Financial statements, in particular investments made by
unlisted subsidiary companies, are reviewed quarterly by
the Company’s Audit Committee.

Minutes of Board meetings of unlisted subsidiary companies
are placed before the Company’s Board regularly.

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

The date and time of Annual General Meetings held during
last three years, and the special resolution(s) passed thereat,
are as follows:

Year

Date

Time

2012-13
2011-12
2010-11

June 06, 2013
June 07, 2012
June 03, 2011

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

Special
Resolution
Passed
Yes (one)*
Nil
Nil

* Special Resolution was passed for payment of commission to the Non-Executive

Directors.

Special Resolution passed through Postal Ballot

No special resolution was passed through postal ballot
during the Financial Year 2013-14. None of the businesses
proposed to be transacted in the ensuing Annual General
Meeting require passing a special resolution through
postal ballot.

Disclosure on materially significant related party
transactions, i.e. the Company’s transactions
that are of material nature, with its Promoters,
Directors and the management, their relatives
or subsidiaries, among others that may have
potential conflict with the Company’s interests at
large

None of the transactions with any of related parties were in
conflict with the Company’s interest. Attention of members
is drawn to the disclosure of transactions with related parties
set out in Note No. 31 of 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
in
of various business exigencies, such as synergy

128

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operations, sectoral specialisation and the Company’s long-
term strategy for sectoral investments, optimisation of
market share, profitability, legal requirements, liquidity and
capital resources of subsidiaries and associates.

All related party transactions are negotiated on arms length
basis, and are intended to further the Company’s interests.

Details of non-compliance by the Company,
penalties and strictures imposed on the Company
by Stock Exchanges or SEBI, or any other
statutory authority, on any matter related to
capital markets during last three years.

There has been no instance of non-compliance by the
Company on any matter related to capital markets during
last three years, and hence, no penalties or strictures have
been imposed on the Company by Stock Exchanges or SEBI
or any other statutory authority.

However, the SEBI has issued Show Cause Notices during
last three years in connection with (i) sale of shares of
erstwhile Reliance Petroleum Limited; (ii) the allotment
of the Company’s equity shares 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 Stock Exchanges in respect of shares against
warrants issued in April, 2007. The Company has submitted
its reply for the same.

Means of Communication
Quarterly results: The Company’s quarterly
results
are published in ‘Financial Express’/‘Indian Express’ and
‘Navshakti’, and are displayed on its website (www.ril.com).

News releases, presentations, among others: Official
news releases and official media releases are sent to Stock
Exchanges.

Presentations to institutional investors / analysts:
Detailed presentations are made to institutional investors
and financial analysts on the Company’s unaudited
quarterly as well as audited annual financial results. These
presentations are also uploaded on the Company’s website
(www.ril.com).

Website: The Company’s website (www.ril.com) contains
a separate dedicated section ‘Investor Relations’ where
is available. The Company’s
shareholders’
Annual Report is also available in a user-friendly and
downloadable form.

information

inter
Annual Report: The Annual Report containing,
alia, Audited Annual Accounts, Consolidated Financial
Statements, Directors’ Report, Auditors’ Report and other
important information is circulated to members and others
entitled thereto. The Management’s Discussion and Analysis
(MD&A) Report forms part of the Annual Report and is
displayed on the Company’s website (www.ril.com).

Chairman’s Communiqué: The printed copy of the
is distributed to shareholders at
Chairman’s speech
Annual General Meetings. The document is also placed on
the Company’s website (www.ril.com) and sent to Stock
Exchanges.

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

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 and
NSE are filed electronically through the CFDS portal, and
hard copies of the said disclosures and correspondence are
also filed with stock exchanges.

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, among others are filed electronically on NEAPS.

BSE Corporate Compliance & Listing Centre (the ’Listing
Centre‘): BSE’s Listing Centre is a web-based application
designed for corporates. All periodical compliance filings
like shareholding pattern, corporate governance report,
media releases, among others are also filed electronically
on the Listing Centre.

SEBI Complaints Redress System (SCORES): The investor
complaints are processed in a centralised 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 concerned
companies and online viewing by investors of actions taken
on the complaint and its current status.

Designated Exclusive email-id: The Company has
designated the following email-ids exclusively for investor
servicing:

Corporate Governance Report (Continued)128

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Financial Statements

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For queries on Annual Report: investor_relations@ril.com

For queries in respect of shares in physical mode:
rilinvestor@karvy.com

The

Survey:

Feedback

Shareholders’
Company
had sent feedback forms seeking shareholders’ views on
various matters relating to investor services and Annual
Report 2012-13. The feedback received from shareholders
was placed before the Shareholders’/Investors’ Grievance
Committee.

General Shareholder Information
Company Registration Details

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

Annual General Meeting
(Day, Date, Time and Venue)
Wednesday, June 18, 2014 at 11.00 a.m.
Birla Matushri Sabhagar, 19, New Marine Lines,
Mumbai 400 020

Financial Year
April 1 to March 31

Financial Calendar (tentative)

Results for the quarter ending
June 30, 2014- Fourth week of July, 2014
September 30, 2014 - Third week of October, 2014
December 31, 2014-Third week of January, 2015
March 31, 2015-Third week of April, 2015
Annual General Meeting-June, 2015

Date of Book Closure
Tuesday, May 20, 2014 to Friday, May 23, 2014
(both days inclusive) for payment of dividend.

Dividend Payment Date
Credit/dispatch of dividend warrants between June 19,
2014 and June 25, 2014.

Listing on Stock Exchanges
Equity Shares
BSE Limited (BSE)
Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai 400 001
Scrip Code 500325

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

Global Depository Receipts (GDRs)
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

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

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

Debt Securities
Listing
The Wholesale Debt Market (WDM) Segment of BSE
and NSE

Debenture Trustees
Axis Bank Limited
Axis House, C-2, Wadia International Centre,
Pandurang Budhkar Marg, Worli,
Mumbai 400 025

Axis Trustee Services Limited
Axis House, 2nd Floor, Wadia International Centre,
Pandurang Budhkar Marg, Worli, Mumbai 400 025

Payment of Listing Fees:

Annual listing fee for the year 2013-14 had been paid by the
Company to BSE and NSE. The listing fee for the year 2014-
15 shall be paid within the due date. Annual maintenance
and listing agency fee for the calendar year 2014 has been
paid by the Company to the Luxembourg Stock Exchange.

Payment of Depository Fees

Annual Custody/Issuer fee for the year 2014-15 will be
paid by the Company to NSDL and CDSL on receipt of the
invoices.

130

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Stock Market Price Data

Month

April 2013

May 2013

June 2013

July 2013

August 2013

September 2013

October 2013

November 2013

December 2013

January 2014

February 2014

March 2014

National Stock Exchange (NSE)

BSE Limited (BSE)

High Price
(`)

Low Price
(`)

826.60

855.00

873.00

927.90

882.85

901.00

918.00

926.55

909.00

898.25

829.80

939.80

764.15

779.20

775.30

839.00

763.90

819.10

817.70

835.25

836.75

822.20

793.10

797.15

Volume
(No.)

6 87 78 328

7 12 07 346

7 79 37 592

7 60 66 558

7 28 92 884

6 91 81 328

6 23 61 526

4 59 02 759

4 89 18 932

6 48 00 287

4 19 35 622

9 60 08 110

High Price
(`)

Low Price
(`)

826.85

854.80

873.00

927.90

882.00

900.90

915.80

925.00

908.35

898.00

829.40

939.30

765.00

780.00

776.50

800.00

765.00

819.05

818.50

836.00

836.25

823.00

794.00

798.00

Volume
(No.)

95 11 962

89 26 555

98 74 200

1 01 09 517

83 56 353

92 58 401

79 94 848

57 57 323

60 34 413

55 23 918

40 97 363

86 33 859

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

Share Price Performance in comparison to broad based indices – BSE Sensex and NSE Nifty as on March
31, 2014

BSE (% Change)
Sensex
RIL
18.85%
20.14%

NSE (% Change)

RIL
20.42%

Nifty
17.98%

24.22%

28.63%

24.00%

26.60%

-11.29% 15.12% -11.28% 14.92%

22.05% 130.58% 22.09% 121.92%

FY 2013-14

2 years

3 years

5 years

Registrars and Transfer Agents

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

List of Investor Service Centres of Karvy Computershare
Private Limited is available on the Company’s website
www.ril.com.

Share Transfer System

Share transfers are processed and share certificates duly
endorsed are returned within a period of seven days from
the date of receipt, subject to 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 / Stakeholders Relationship Committee (earlier
The
Shareholders’/Investors’ Grievance Committee).
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 Stock
Exchanges.

Corporate Governance Report (Continued)130

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Distribution of Shareholding as on March 31, 2014

Categor y
Code

Category of shareholder

Number of
shareholders

Total number of
shares

As a percentage of
(A+B+C)

(A)

(1)
(2)

(B)
(1)
(2)

(C)

(1)

(2)

Shareholding of Promoter and Promoter
1
Group
Indian
Foreign

Total Shareholding of Promoter and
Promoter Group

2
Public Shareholding
Institutions
Non-institutions
Total Public Shareholding
Shares held by Custodians and against
which Depository Receipts have been
issued
Promoter and Promoter Group

Public

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

66*
0

66*

2 102
29 41 305
29 43 407

146 39 61 977
0

146 39 61 977

96 48 88 137
69 18 95 810
165 67 83 947

11 11 55 934

29 43 474

323 19 01 858

45.30
0.00

45.30

29.85
21.41
51.26

0.00

3.44

100.00

1For definitions of “Promoter Shareholding” and “Promoter Group”, refer to Clause 40A of Listing Agreement.

2For definition of “Public Shareholding”, refer to Clause 40A of the 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.

Category-wise Shareholding

Shareholding Pattern by Size as on March 31, 2014

2013-14

Promoters
Institutions
Non-institutions
GDR Holders

45.30%
29.85%
21.41%
3.44%

Category
(Shares)

Holders

% of Total
Shares

Up to 500

28 19 890

19 08 08 484

501 – 1000

72 925

5 12 85 153

1001 - 5000

44 758

8 37 47 580

5001 - 10000

3 097

2 13 71 177

10001 - 20000

1 103

1 52 93 626

5.91

1.59

2.59

0.66

0.47

Above 20000

1 701 286 93 95 838

88.78

TOTAL

29 43 474 323 19 01 858

100.00

132

Reliance Industries Limited
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Build up of Equity Share Capital

Particulars

Subscribers to Memorandum
Shareholders of Reliance Textile Industries Limited
(Merged with the Company)
Conversion of Loan

Rights Issue – I

Bonus Issue – I

Debenture Series I Conversion

Consolidation of Fractional Coupon Shares

Conversion of Loan

Rights Issue II

Debenture Series II Conversion

Debenture Series I Conversion Phase II
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company)
Rights Issue II NRI

Debenture Series III Conversion

Rights Issue II
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) II
Bonus Issue- II
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) III
Debenture Series IV Conversion
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) IV
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) V
Debenture Series I Conversion

Debenture Series II Conversion
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) VI
Consolidation of Fractional Coupon Shares

Debenture Series E Conversion

Debenture Series III Conversion

Debenture Series IV Conversion
Shareholders of Sidhpur Mills Co Limited
(Merged with the Company) VII
Consolidation of Fractional Coupon Shares

Allotment Date

October 19, 1975

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

April 12, 1982

June 15, 1982

August 31, 1982

September 9, 1982

December 29, 1982

No. of Shares

1 100

59 50 000

9 40 000

6 47 832

45 23 359

8 40 575

24 673

2 43 200

1 40 800

23 80 518

8 42 529

27 168

81 059

774

19 20 000

1 942

September 30, 1983

1 11 39 564

September 30, 1983

April 5, 1984

June 20, 1984

October 1, 1984

December 31, 1984

January 31, 1985

April 30, 1985

July 5, 1985

December 17, 1985

December 31, 1985

371

64 00 000

617

97 66 783

2 16 571

45 005

53 33 333

52 835

42 871

106

610

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Particulars

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

Warrant Conversion (Debenture Series F)

Euro Issue GDR II

Loan Conversion

Warrant Conversion (Debenture Series J)

Private Placement of Shares

Conversion of Reliance Petrochemicals Limited Debentures
Shareholders of Reliance Polypropylene Limited and Reliance
Polyethylene Limited (Merged with the Company)
Warrants Conversion

Conversion of 3.5% ECB Due 1999 I

Conversion of 3.5% ECB Due 1999 II

Conversion of 3.5% ECB Due 1999 III

Conversion of 3.5% ECB Due 1999 IV

Conversion of 3.5% ECB Due 1999 V

Conversion of 3.5% ECB Due 1999 VI

Bonus Issue III

Conversion of 3.5% ECB Due 1999 VII

Allotment Date

No. of Shares

November 15, 1986

April 1, 1987

August 1, 1987

February 4, 1988

June 2, 1988

October 31, 1988

November 29, 1990

May 22, 1991

October 10, 1991

40 284

169

6 60 30 100

3 15 71 695

29 35 380

322

June 3, 1992

1 84 00 000

December 4, 1992

July 7, 1993

August 26, 1993

February 23, 1994

March 1, 1994

August 3, 1994

October 21, 1994

December 22, 1994

March 16, 1995

March 10, 1995

May 24, 1997

July 11, 1997

July 22, 1997

September 13, 1997

October 22, 1997

November 4, 1997

December 20, 1997

December 4, 1997

4060

7 49 42 763

3 16 667

3 64 60 000

1 03 16 092

2 55 32 000

18 38 950

87 40 000

2 45 45 450

75 472

9 95 75 915

74 80 000

544

13 31 042

6 05 068

18 64 766

18 15 755

1 03 475

46 60 90 452

15 68 499

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Particulars

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

Allotment Date

No. of Shares

September 27, 1999

7 624

January 12, 2000

12 00 00 000

October 23, 2002

34 26 20 509

October 13, 2007

6 01 40 560

October 3, 2008

Various dates in 2008-09

12 00 00 000

1 49 632

September 30, 2009

6 92 52 623

November 28,2009

1 62 67 93 078

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, 2014

Various dates in 2009-10

Various dates in 2010-11

Various dates in 2011-12

February 22, 2013

Various dates in 2013-14

5 30 426

29 99 648

13 48 763

1 86 891

32 38 476

-28 69 495

-4 62 46 280

323 19 01 858

Corporate Benefits to Investors

Dividend Declared for the last 10 Years

Bonus issues of fully paid-up Equity Shares

Financial
Year

2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10

2010-11
2011-12
2012-13

Dividend Declaration

June 24, 2004
August 03, 2005
June 27, 2006
March 10, 2007
June 12, 2008
October 07, 2009
June 18, 2010
(post bonus issue 1:1)

June 03, 2011
June 07, 2012
June 06, 2013

Dividend
per Share*

5.25
7.5
10
11
13
13
7

8
8.5
9

* Share of paid-up value of `10 per share.
Note: Dividend of ` 9.50 per share, recommended by Directors on April 18, 2014,
is subject to declaration by shareholders at the ensuing Annual General Meeting.

Financial Year

1980-81

1983-84

1997-98

2009-10

Ratio

3:5

6:10

1:1

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 shareholders except specified

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shareholders, in Reliance Industries Limited, as on the
record date fixed for the purpose.

Accordingly, 122,31,30,422 equity shares each of REVL,
RNRL, RCVL and RCoVL were allotted on January 27, 2006.

Dematerialisation of Shares

Mode of Holding

NSDL

CDSL

Physical

TOTAL

% age

95.77

1.93

2.30

100.00

97.70% of Company’s paid-up Equity Share Capital has
been dematerialised up to March 31, 2014 (97.58% up to
March 31, 2013). Trading in Equity Shares of the Company is
permitted only in dematerialised form.

Liquidity

The Company’s Equity Shares are among the most liquid
and actively traded shares on the Indian Stock Exchanges.
RIL shares consistently rank among the top few frequently
traded shares, both in terms of the number of shares traded,
as well as value. The highest trading activity is witnessed on
the BSE and NSE.

Relevant data for the average daily turnover for the financial
year 2013-14 is given below:

BSE

NSE

Total

Shares (nos.)

3 74 816

31 71 280

35 46 096

Value (in ` crore)

31.78

269.49

301.27

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

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

GDRs: Outstanding GDRs as on March 31, 2014 represent
11,11,55,934 equity shares constituting 3.44% of Company’s
paid-up Equity Share Capital. 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 favour of the
investors upon surrender of GDRs can either be held by
investors concerned in their name or sold off in the Indian
secondary markets for cash. To the extent of shares so sold
in Indian markets, GDRs can be reissued under the available
head room.

RIL GDR Programme - Important Information

RIL GDRs are listed at the Luxembourg Stock Exchange.
GDRs are traded on the 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.

Employee Stock Options

The information on Options granted by the Company during
the financial year 2013-14 and other particulars with regard
to Employees’ Stock Options are set out under Annexure I to
the Directors’ Report

Plant Locations
Refining & Marketing
Jamnagar
Village Meghpar/Padana, Taluka Lalpur
Jamnagar - 361 280, Gujarat, India

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

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

Barabanki Manufacturing Division
Dewa Road, P.O. Somaiya Nagar
Barabanki - 225 123, Uttar Pradesh, India

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Dahej Manufacturing Division
P. O. Dahej- 392 130
Taluka: Vagra, Dist.: Bharuch, Gujarat, India

Hazira Manufacturing Division

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

Hoshiarpur Manufacturing Division

Dharamshala Road, V.P.O. Chohal
Dist.: Hoshiarpur - 146 024, Punjab, India

Nagothane Manufacturing Division

P. O. Petrochemicals Township
Nagothane - 402 125, Roha Taluka,
Dist.: Raigad, Maharashtra, India

Nagpur Manufacturing Division,

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

Patalganga Manufacturing Division

B-1 to B-5 & A3, MIDC Industrial Area, P.O. Rasayani,
Patalganga – 410 220, Dist.: Raigad
Maharashtra, India

Silvassa Manufacturing Division

342, Kharadpada, P.O. Naroli – 396235
Union Territory of Dadra and Nagar Haveli, India

Vadodara Manufacturing Division

P. O. Petrochemicals, Vadodara - 391 346, Gujarat, India

Oil & Gas
Gadimoga

Tallarevu Mandal
East Godavari District Gadimoga – 533 463,
Andhra Pradesh, 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 and CB-ONN-2003/1

CBM Blocks

Address for Correspondence
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.

Any query on the 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

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

review,

the year under

the Company has
During
credited ` 9.17 crore to the Investor Education and
Protection Fund (IEPF) pursuant to Section 205C of the
Companies Act, 1956 read with the Investor Education
(Awareness and Protection of
and Protection Fund
Investors) Rules, 2001.

The cumulative amount transferred to IEPF up to March 31,
2014 is `108.44 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 06, 2013 (date of last Annual General Meeting)
on the Company’s website (www.ril.com) and on the
website of the Ministry of Corporate Affairs.

SP (West) – CBM – 2001/1, SP (East) – CBM – 2001/1

Equity Shares in the Suspense Account

Textiles
Naroda Manufacturing Division

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

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:

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Particulars

Aggregate Number of shareholders and the outstanding shares in the
suspense account lying as on April 1, 2013

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

Number of shareholders and aggregate number of shares transferred
to the Unclaimed Suspense Account during the year

Demat

Physical

Number of
Shareholders

Number
of equity
shares

Number of
Shareholders
(phase wise
transfers)

Number
of equity
shares

1,308

1,63,137 62,99,258

1,591

1,01,792

1,359

44,145

Aggregate Number of shareholders and the outstanding shares in the
suspense account lying as on March 31, 2014

1,308

1,62,905 62,41,611

The voting rights on the shares in the suspense accounts as on March 31, 2014 shall remain frozen till the rightful owners of
such shares claim the shares.

Compliance Certificate of the Auditors

Certificate from the Company’s Auditors, M/s. Chaturvedi
& Shah, M/s. Deloitte Haskins & Sells LLP and M/s. Rajendra
& Co., confirming compliance with conditions of Corporate
Governance as stipulated under Clause 49 of the Listing
Agreement, is attached to the Directors’ Report forming
part of the Annual Report.

This Certificate has also been forwarded to the Stock
Exchanges where the shares of the Company are listed.

Adoption of Mandatory and Non- Mandatory
Requirements of Clause 49
The Company has complied with all mandatory requirements
of the Clause 49 of the Listing Agreement. The Company has
adopted following non-mandatory requirements of Clause
49 of the Listing Agreement:

Remuneration Committee

The Company has constituted
‘Human Resources,
Nomination and Remuneration Committee’ meeting the
requirements of Clause 49 of the Listing Agreement and the
Companies Act, 2013.

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 necessary
documents/brochures, reports and internal policies to
enable them to familiarise 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.

pronouncements

judicial

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.

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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 of the Listing Agreement. 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. The annual certificate given by the
Chairman and Managing Director and the Chief Financial
Officer is published in this Report.

Certificate on Compliance with Code of Conduct
I hereby confirm that the Company has obtained from all
the members of the Board and Management Personnel,
affirmation that they have complied with the Code of
Business Conduct and Ethics for Directors/Management
Personnel for the financial year 2013-14.

(Mukesh D. Ambani)

Chairman and Managing Director

Mumbai
April 18, 2014

CEO / CFO Certificate under Clause 49 (V)
To,
The Board of Directors
Reliance Industries Limited

1. We have reviewed financial statements and the cash
flow statement of Reliance Industries Limited for the
year ended 31st March, 2014 and to the best of our
knowledge and belief:
these statements do not contain any materially
untrue statement or omit any material fact or contain
statements that might be misleading;

(i)

(ii) these statements together present a true and fair view
of the Company’s affairs and are in compliance with
existing accounting standards, applicable laws and
regulations.

2. There are, to the best of our knowledge and belief,
no transactions entered into by the Company during
the year which are fraudulent, illegal or violate the
Company’s Code of Conduct.
responsibility

for establishing and
maintaining internal controls for financial reporting
and we have evaluated the effectiveness of Company’s
internal control systems pertaining to financial reporting.

3. We accept

We have not come across any reportable deficiencies in
the design or operation of such internal controls.
4. We have indicated to the Auditors and the Audit

Committee:

(i)

that there are no significant changes in internal control
over financial reporting during the year;

(ii) that there are no significant changes in accounting

policies during the year; and

(iii) that there are no instances of significant fraud of

which we have become aware.

(Alok Agarwal)

Chief Financial Officer

Mumbai
April 18, 2014

(Mukesh D. Ambani)

Chairman and Managing Director

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 2014, 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 LLP

For Rajendra & Co.

Chartered Accountants

(Registration No. 101720W)

(Registration No. 117366W/W-100018)

(Registration No. 108355W)

(D. Chaturvedi)
Partner

(A.B. Jani)
Partner

(A.R. Shah)
Partner

Membership No.: 5611

Membership No.: 46488

Membership No.: 47166

Mumbai
April 18, 2014

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Directors’ Profile
Shri Mukesh D. Ambani (DIN 00001695) 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 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 steering Reliance’s development
of infrastructure facilities and implementation of a pan-
India organized retail network spanning multiple formats
and supply chain infrastructure. Today, Reliance Retail is the
largest retail player in the Country.

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.

zz 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.

zz In 2010, named among the most powerful people in the
world by Forbes magazine in its list of “68 people who
matter most.”

zz In 2010, awarded the Indian Merchant’s Chamber (IMC)

‘Juran Quality Medal 2009’.

zz 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.

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. He is the Chairman of Board
of Governors, Pandit Deendayal Petroleum University,
Gandhinagar.

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

(MDG) Advocacy Group

Shri Mukesh D. Ambani is a member of the Indo-US CEOs
Forum, Chair of The British Asian Trust’s India Advisory
Council, International Advisory Council of The Brookings,
McKinsey & Company, Global Advisory Council of Bank of
America, Member of The Business Council and Asia Business
Council, and London School of Economics’ India Advisory
Group.

Shri Mukesh D. Ambani is the Chairman and Director of
Reliance Jio Infocomm Limited and Reliance Retail Ventures
Limited and a Director of Reliance Foundation and Reliance
Europe Limited.

At RIL, he is Chairman of the Finance Committee.

He is Promoter of the Company and holds 36,15,846 shares
of the Company in his name as on March 31, 2014.

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:

zz In 2013, he was conferred ‘Entrepreneur of the Decade’

by All India Management Association.

Shri Nikhil R. Meswani (DIN 00001620) 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.

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He is primarily responsible for Petrochemicals Division and
has contributed largely to Reliance to become a global
leader
in Petrochemicals. Earlier, he handled refinery
business between 1997 and 2005. He was also responsible
In
for
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”.

IPCL with Reliance businesses.

integration of

He was the President of Association of Synthetic Fibre
Industry and was also the youngest Chairman of Asian
Chemical Fibre Industries Federation. He is also a member
of managing committee of Federation of Indian Export
Organisations set up by Ministry of Commerce.

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 member of the Corporate Social Responsibility and
Governance Committee, the Finance Committee and the
Stakeholders Relationship Committee of the Company.

He is a Director of Reliance Commercial Dealers Limited and
Chairman of its Audit Committee.

He holds 4,18,374 shares of the Company in his name as on
March 31, 2014.

Shri Hital R. Meswani (DIN 00001623) 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 member of the Finance Committee and Stakeholders
Relationship Committee and Chairman of the Health, Safety
and Environment Committee of the Company.

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 has been instrumental in the execution of several mega
projects of the group including the Hazira Petrochemicals
complex and the world’s largest Refinery complex at
Jamnagar.

He has been awarded an Honorary Fellowship by IChemE
(Institution of Chemical Engineers – the International
Professional body for Chemical, Biochemical and Process
Engineers) in recognition of his contribution to the process
industries.

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

He was also recently conferred the Honorary CEPM-PMA
Fellowship Award for Project Management Excellence.

He holds 3,51,886 shares of the Company in his name as on
March 31, 2014.

Shri P.M.S. Prasad (DIN 00012144) is a Whole-time Director
designated as Executive Director of the Company since
August 21, 2009.

He has been with the Company for about 33 years. Over
the years, he has held various senior 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 has been conferred the Energy
Executive of the Year 2008 award by Petroleum Economist
in recognition of his leadership.

He is on the Board of Governors of the University of
Petroleum & Energy Studies, India.

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

He is a Director of Reliance Commercial Dealers Limited and
is a member of its Audit Committee.

He holds 1,36,666 shares of the Company in his name as on
March 31, 2014.

Shri Pawan Kumar Kapil (DIN 02460200) has been
appointed as a Whole-time Director designated as Executive
Director of the Company with effect from May 16, 2010.

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

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

He started his career in 1966 with the Indian Oil Corporation.
In the initial years he worked in various capacities in
Operations, Technical Services and start-up/ commissioning
of various Refinery Process Units/ facilities in Barauni and
Gujarat Refineries. Being a person with a strong penchant
for analytical work and high technology skills, he was
chosen to head the Central Technical Services Department
at the Corporate Office of Indian Oil Corporation. Here he
did extensive work in ‘expansion of the existing refineries’,
‘energy optimisation’, ‘debottlenecking studies’ and ‘long
range planning’.

Then he moved to Mathura Refinery as the head of Refinery
Operations. From Mathura he was picked up to become
the Director (Technical) of Oil Coordination Committee
(OCC) - the ‘Think Tank’ of the Ministry of Petroleum, the
Government of India. He has travelled extensively and has
been to USA, Russia, the Middle East, 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.

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

He holds 5,000 shares of the Company in his name as on
March 31, 2014.

Shri Mansingh L. Bhakta (DIN 00001963) is senior partner
of Messers Kanga & Company, a leading firm of Advocates
and Solicitors in Mumbai. He has been in practice for over 59
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 the Indian Merchant’s Chamber, Mumbai
and JCB India Limited. He is the Lead Independent Director
of the Company. He is a member of the Audit Committees
of JCB India Limited. During his long legal career, he has
served as an Independent Director of a large number of
leading corporates including Larsen & Toubro Limited, SKF
(India) Limited, Kirloskar Oil Engines Limited, Arvind Limited
and Bennett Coleman & Company 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

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year was the sixth consecutive year in which he has been so
nominated.

He holds 3,30,000 shares of the Company in his name as on
March 31, 2014.

Shri Yogendra P. Trivedi (DIN 00001879) is practicing
as senior advocate in Supreme Court. He was a member
of the Rajya Sabha till April 2, 2014. He holds important
positions in various fields’ viz. economics, profession,
politics, commercial, education, medical field, sports and
social service. He has received various Awards and medals
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 Private 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 and Emami
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, Royal Bombay Yatch Club. He is
also the Chairman of the Audit Committee, the Corporate
Social Responsibility and Governance Committee and
the Stakeholders Relationship Committee and Member
of the Human Resources, Nomination and Remuneration
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 (HonorisCausa)
by Fakir Mohan University, Balasore, Odisha.

He holds 27,984 shares of the Company in his name as on
March 31, 2014.

Dr. Dharam Vir Kapur (DIN 00001982) 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 fast growing systems oriented National
Thermal Power Corporation (NTPC) of which he was the
founder Chairman-cum-Managing Director (CMD). As CMD,
NTPC, Dr. Kapur was described as a Model Manager by the
Board of Executive Directors of World Bank.

As Secretary to the Government of India in the Ministries
of Power, Heavy Industry and Chemicals & Petrochemicals
during 1980-86, he made significant contributions
with introduction of new management practices and
liberalization initiatives including authorship of “Broad
Banding” and “Minimum economic sizes” in industrial
licensing. He was also associated with a number of National
Institutions as Member, the Atomic Energy Commission;
Member, Advisory Committee of the Cabinet for Science
and Technology; Chairman, Board of Governors, IIT Bombay
(1983-94); Member, Board of Governors, IIM Lucknow and
Chairman, National Productivity Council.

In recognition of his “services and significant contributions
in the field of Technology, Management and Industrial
Development”, Jawaharlal Nehru Technological University,
Hyderabad, conferred on him the degree of D.Sc. He is
recipient of “India Power, Life Time Achievement Award”
presented by 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”. Project Management
Associates, India adopted Dr. D.V. Kapur as Mentor during
its 20th International Conference in December 2013. Dr.
Kapur is also recipient of “Meritorious Services Award” for
“exemplary services to Indian Energy Sector” presented by
India Energy Forum.

He is the Chairman (Emeritus) of Jacobs H&G (P) Limited.
He is also a Director on the Boards of Honda Siel Power
Products Limited, DLF Limited and other private limited
companies. Earlier he was a Director on the Boards of Tata
Chemicals Limited, Larsen & Toubro Limited, Ashok Leyland
Limited and also Chairman of GKN Driveline Limited.
He is a member of the Human Resources, Nomination
and Remuneration Committee, the Corporate Social
Responsibility and Governance Committee and the Health,
Safety and Environment Committee of the Company. He

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is Chairman Audit Committee, Shareholders’/Investors’
Relations Committee and Remuneration Committee of
Honda Siel Power Products Limited.

He is also a member Audit Committee and Chairman,
Committees on Corporate Governance and Shareholders’/
Investor Relations of DLF Limited.

He holds 13,544 shares of the Company in his name as on
March 31, 2014.

Shri Mahesh Prasad Modi (DIN 00001604), M.Sc (Econ.)
(London), Fellow, Economic Development
Institute of
the World Bank, held high positions in the Government
of India as Chairman of Telecom Commission & Secretary,
Telecommunications Department & Director General,
Telecommunications; Secretary, the Ministry of Coal; Special
Secretary (Insurance), Economic Affairs Department; and
Joint Secretary, the Ministry of Petroleum, Chemicals
and Fertilizers. He has served as Director on the Board
of Directors of many public sector and private sector
companies,
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.

(Founder Director),

including: GAIL

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

He holds 2,924 shares of the Company in his name as on
March 31, 2014.

Prof. Ashok Misra (DIN 00006051) 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
Improving Directors’ Effectiveness
Programme’ at the Kellogg School of Management,
Northwestern University.

‘Strategies

for

He was the Director at the Indian Institute of Technology,
Bombay from 2000 to 2008, where he made significant
contribution taking the Institute to greater heights. During
his tenure the IIT Bombay was transformed into a leading
Research & Development Institute, while at the same time
maintaining its reputation as a leader in quality engineering
education. Prior to this he was at IIT Delhi from 1977-
2000 and at Monsanto Chemical Co. from 1974-1977. He

Intellectual Ventures.
is currently the Chairman-India,
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 Jubilant Agri and Consumer
Products Limited. He is a member of Audit Committee and
Compensation Committee of Jubilant Industries Limited. 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 Stakeholders
Relationship 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 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, 2014.

in
Prof. Dipak C. Jain (DIN 00228513) has a M.S.
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 a Chaired
Professor of Marketing at INSEAD, a leading business school
with three campuses at Fontainebleau (Paris), France,
Singapore and Abu Dhabi. He has served as the Dean
of INSEAD from 2011-13. He has more than 30 years of
experience in management education. He has published
several articles in international journals on marketing and
allied subjects.

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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 HT Global Education, John Deere &
Company, United States of America, Global Logistic
Properties, Singapore and Northern Trust Bank, United
States of America. He is a Director of Reliance Retail Ventures
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, 2014.

Dr. Raghunath A. Mashelkar, (DIN 00074119) National
Research Professor, is presently also the President of
Global Research Alliance, a network of publicly funded
R&D Institutes from Asia-Pacific, Europe and USA with over
60,000 scientists.

Dr. Mashelkar served as the Director General of Council of
Scientific and Industrial Research (CSIR), with thirty-eight
laboratories and about 20,000 employees for over eleven
years. He was also the President of Indian National Science
Academy and President of Institution of Chemical Engineers
(UK).

Dr. Mashelkar is on the Board of Directors of several other
reputed companies such as Tata Motors Limited, IKP
Knowledge Park, Thermax Limited, Piramal Enterprises
Limited, and KPIT Cummins Infosystems Limited and several
other private limited companies. He is also a Director of
Reliance Gene Medix Limited (company
incorporated
outside India). He is a member of the Scientific Advisory
Board of the Microsoft.

He is a member of the Audit Committee, the Human
Resources, Nomination and Remuneration Committee
and the Corporate Social Responsibility and Governance
Committee of the Company.

He is Chairman of the Safety, Health and Environment
Committee of Tata Motors Limited. He is a member of the

Audit Committees of Tata Motors Limited and Piramal
Enterprises Limited (formerly Piramal Healthcare Limited).
He is a member of the Remuneration Committee of KPIT
Cummins Infosystems Ltd.

Dr. Mashelkar is only the third Indian engineer to have
been elected (1998) as Fellow of Royal Society (FRS),
London in the twentieth century. He was elected Foreign
Associate of National Academy of Science (USA) in 2005,
Associate Foreign Member, American Academy of Arts &
Sciences (2011); Foreign Fellow of US National Academy of
Engineering (2003); Fellow of Royal Academy of Engineering,
U.K. (1996), Foreign Fellow of Australian Technological
Science and Engineering Academy (2008) and Fellow of
World Academy of Art & Science, USA (2000).

In August 1997, Business India named Dr. Mashelkar as
being among the 50 path-breakers in the post- Independent
India. In 1998, Dr. Mashelkar won the JRD Tata Corporate
Leadership Award, the first scientist to win it. In June, 1999,
Business India did a cover story on Dr. Mashelkar as “CEO OF
CSIR Inc.”, a dream that he himself had articulated, when he
took over as DG, CSIR in July 1995. On November 16, 2005,
he received the Business Week (USA) award of ‘Stars of Asia’
at the hands of George Bush (Sr.), the former President of
USA. He was the first Asian Scientist to receive it.

Deeply connected with the innovation movement in India,
Dr. Mashelkar is currently the Chairman of India’s National
Innovation Council,
Innovation Foundation, Reliance
Thermax
Innovation
Foundation.

Innovation Council and Marico

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

The President of India honoured Dr. Mashelkar with
Padmashri (1991), with Padmabhushan (2000) and with
Padma Vibhushan (2014), which are three of the highest
civilian honours in recognition of his contribution to nation
building.

When Dr. Mashelkar took over as the Director General of
CSIR, he enunciated “CSIR 2001: Vision & Strategy”. This was a
bold attempt to draw out a corporate like R&D and business
plan for a publicly funded R&D institution. This initiative
has transformed CSIR into a user focused, performance
driven and accountable organization. This process of
transformation has been recently heralded as one of the
ten most significant achievements of Indian Science and
Technology in the twentieth century.

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Dr. Mashelkar has been propagating a culture of innovation
and balanced
intellectual property rights regime for
over a decade. It was through his sustained and visionary
campaign that growing awareness of Intellectual Property
Rights (IPR) has dawned on Indian academics, researches
and corporates. He spearheaded the successful challenge
to the US patent on the use of turmeric for wound healing
and also the patent on Basmati rice. These landmark cases
have set up new paradigms in the protection of India’s
traditional knowledge base, besides leading to the setting
up of India’s first Traditional Knowledge Digital Library. In
turn, at an international level, this has led to the initiation of
the change of the International Patent Classification System
to give traditional knowledge its rightful place. As Chairman
of the Standing Committee on Information Technology
of World Intellectual Property Organization (WIPO), as a
member of the International Intellectual Property Rights
Commission of UK Government and as Vice Chairman on
Commission in Intellectual Property Rights, Innovation and
Public Health (CIPIH) set up by World Health Organization
(WHO), he brought new perspectives on the issue of IPR and
the developing World concerns.

In the post-liberalized India, Dr. Mashelkar has played a
critical role in shaping India’s S&T policies. He was a member
of the Scientific Advisory Council to the Prime Minister and
also of the Scientific Advisory Committee to the Cabinet set
up by successive governments. He has chaired twelve high
powered committees set up to look into diverse issues of
higher education, national auto fuel policy, overhauling the
Indian drug regulatory system, dealing with the menace
of spurious drugs, reforming Indian agriculture research
system, etc. He has been a much sought after consultant for
restructuring the publicly funded R&D institutions around
the World; his contributions in South Africa, Indonesia and
Croatia have been particularly notable.

Dr. Mashelkar has won over 50 awards and medals, which
include S.S. Bhatnagar Prize (1982), Pandit Jawaharlal Nehru
Technology Award (1991), G.D. Birla Scientific Research
Award (1993), Material Scientist of Year Award (2000), IMC
Juran Quality Medal (2002), HRD Excellence Award (2002),
Lal Bahadur Shastri National Award for Excellence in Public
Administration and Management Sciences (2002), World
Federation of Engineering Organizations (WFEO) Medal
of Engineering Excellence by WFEO, Paris (2003), Lifetime
Achievement Award by Indian Science Congress (2004),
the Science medal by the Academy of Science for the
Developing World (2005), Ashutosh Mookherjee Memorial
Award by Indian Science Congress (2005), etc.

He does not hold any shares of the Company in his name as
on March 31, 2014.

Shri Adil Zainulbhai (DIN 06646490) is currently Senior
Advisor to McKinsey. He retired as Chairman of McKinsey,
India after 34 years at McKinsey. He spent the last 10 years
in India. Prior to returning to India, he led the Washington
office of McKinsey and founded the Minneapolis office.

Over the last 10 years in India, Shri Adil has worked directly
with the CEOs and promoters of some of the major
companies in India and globally – private companies, MNCs
and PSUs. He has been focusing on 3 areas:

zz Helping Indian companies meet their growth aspirations
and become successful globally and developing their
senior leadership.

zz Helping Public Sector Undertakings (PSUs) become

more efficient and effective.

zz Helping MNCs enter India and build profitable, large and

innovative businesses.

Shri Adil has also been working with several parts of the
government and led efforts around urbanization, inclusive
growth and energy.

Shri Adil has co-edited the book, ‘Reimagining India’ which
featured 60 authors including prominent businessmen,
academicians, economists, authors and journalists. The
book has been #1 in non-fiction in India on its release and
#2 on Amazon’s International Business List in the US.

Shri Adil grew up in Bombay and graduated in Mechanical
Engineering from the Indian Institute of Technology. He also
has an M.B.A. from Harvard Business School.

Shri Adil is very active in community and social causes. He
is a Board member of the American India Foundation, Saifee
Hospital, Board of Trustees at Saifee Burhani Upliftment Trust
(redeveloping Bhendi Bazaar in Mumbai), Advisory Board
of the Indian Institute of Technology Bombay, Wockhardt
Foundation, HMRI (Health Management Research Institute),
Harvard Business School Alumni Association of India and on
the Global Advisory Board of the Booth School of Business
at University of Chicago.

Shri Adil Zainulbhai is also Chairman of the Human
Resources, Nomination and Remuneration Committee and
Member of the Audit Committee of the Company.

He does not hold any shares of the Company in his name as
on March 31, 2014.

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Secretarial Audit Report

The Board of Directors
Reliance Industries Limited
3rd Floor, Maker Chambers IV
222 Nariman Point
Mumbai 400 021

I have conducted the secretarial audit of the compliance
of applicable statutory provisions and the adherence to
good corporate practices by Reliance Industries Limited
(“the Company”). The secretarial audit was conducted in a
manner that provided me a reasonable basis for evaluating
the corporate conducts / statutory compliances and
expressing my opinion thereon.

Based on my verification of the Company’s books, papers,
minute books, forms and returns filed and other records
maintained by the Company and also the information
provided by the Company,
its officers, agents and
authorised representatives during the conduct of secretarial
audit, I hereby report that in my opinion, the Company has,
during the audit period covering the financial year ended
on March 31, 2014 complied with the statutory provisions
listed hereunder and also that the Company has proper
Board-processes and compliance-mechanism in place to
the extent and in the manner reported hereinafter.

I have examined the books, papers, minute books,
forms and returns filed and other records maintained
by the Company for the financial year ended on March
31, 2014 according to the provisions of -

The Companies Act, 1956 and the Rules made
under that Act and 98 sections of Companies
Act, 2013 notified vide Ministry of Corporate
Affairs Gazette Notification No. S.O. 2754(E) dated
September 12, 2013;

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’):

The Securities and Exchange Board of India
(Substantial Acquisition of Shares and
Takeovers) Regulations, 2011;

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

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

The 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.

I further report that the Company has, in my opinion,
complied with the provisions of the Companies
Act, 1956 and the Rules made under that Act and 98
sections of Companies Act, 2013 notified vide Ministry
of Corporate Affairs Gazette Notification No. S.O.
2754(E) dated September 12, 2013 (“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 meetings

of Directors;

(f ) the meetings of Directors and Committees of
including passing of resolutions by

Directors
circulation;

(g) the 39th Annual General Meeting held on June

06, 2013;

(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;

the Board of Directors

/
(j) constitution of
appointment,
Committee(s)
retirement and
re-appointment of Directors
including the Managing Director and Whole-time
Directors;

Directors,

The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 1992;

(k) payment of remuneration to Directors including

the Managing Director and Whole-time Directors;

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(l) appointment and remuneration of Auditors and

Cost Auditors;

(m) 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

(r)

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

(s) giving guarantees in connection with loans taken

(t)

by subsidiaries;
form of balance sheet as prescribed under Part I,
form of statement of profit and loss as prescribed
under Part
for
preparation of the same as prescribed in Schedule
VI to the Act;

II and General

Instructions

(u) allotment of equity shares of the Company
pursuant to Employees Stock Option Scheme;

(v) Directors’ report;
(w) contracts, common seal, registered office and

publication of name of the Company; and

(x) generally, all other applicable provisions of the Act

and the Rules made under the Act.

I further report that:
(a) 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;

(b) the Directors have complied with the disclosure
requirements in respect of their eligibility of
appointment,
independent and
compliance with the Code of Business Conduct &
Ethics for Directors and Management Personnel;
(c) the Company has obtained all necessary approvals

their being

under the various provisions of the Act; and

(d) 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.

4. The Company has complied with the provisions of the
Securities Contracts (Regulation) Act, 1956 and the

Rules made under that 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
records of
dematerialised securities with all securities issued by
the Company.

reconciliation of

6. 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 BSE Limited and 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;

(b) 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
said Regulations;

(c)

(d) 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; and

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

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 18, 2014

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Dear Members,

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Your Directors are pleased to present the 40th Annual Report and the Company’s audited accounts for the financial year
ended March 31, 2014.

Financial Results
The Company’s financial performance, for the year ended March 31, 2014 is summarised below:

Profit before Tax
Less: Current Tax

Deferred Tax
Profit for the year
Add: Balance in Profit and 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

2013-14

2012-13

` crore
27,818
5,812
22
21,984
8,610
-
30,594

$ million*

4,643
970
4
3,669
1,853
-
5,522

` crore
26,284
5,244
37
21,003
7,609
1,116
29,728

18,000

3,004

18,000

-
2,793
475
9,326

-
466
79
1,973

43
2,628
447
8,610

$ million*
4,842
966
7
3,869
1,668
206
5,743

3,316

8
484
82
1,853

* 1 $ = ` 59.915 Exchange Rate as on March 31, 2014 (1 $ = ` 54.285 as on March 31, 2013)

Results of Operations

zz Net Profit

increased by 4.7% to ` 21,984 crore

Operating in a volatile and uncertain environment, the
Company demonstrated the resilience of its business
model. The Company’s best-in-class refining configuration
and integrated petrochemical business enabled it to deliver
robust profits in the financial year 2013-14. The highlights of
the Company’s performance are as under:

zz Revenue from operations increased by 8.1% to ` 401,302

crore ($ 67.0 billion)

zz Exports

increased by 15.3%

to ` 275,825 crore

($ 46.0 billion)

zz PBDIT increased by 2.7% at ` 39,813 crore ($ 6.6 billion)

zz Profit Before Tax increased by 5.8% at ` 27,818 crore

($ 4.6 billion)

zz Cash Profit
($ 5.1 billion)

increased by 1.0% to ` 30,795 crore

($ 3.7 billion)

zz Gross Refining Margin was $ 8.1 / bbl for the year ended

March 31, 2014

The consolidated revenue from operations of the Company
for the year ended March 31, 2014 was ` 446,339 crore
($ 74.5 billion), an increase of 9.3% 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 ` 31,374 crore ($ 5.2 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 tenth consecutive
year and was ranked 107th in terms of revenues and 128th in
terms of profits.

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Dividend
Your Directors have recommended a dividend of ` 9.50
per equity share (last year ` 9.00 per equity share) for
the financial year ended March 31, 2014, amounting to
` 3,268 crore (inclusive of tax of ` 475 crore), one of the
highest payout by any private sector domestic company.
The dividend payout is subject to approval of members at the
ensuing Annual General Meeting.

The dividend will be paid to members whose names appear
in the Register of Members as on May 19, 2014; 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 India
Ratings & Research (a Fitch Group Company). Moody’s has
reaffirmed investment grade rating for international debt,
as Baa2 ‘positive outlook’ (local currency issuer rating),
which is one notch higher than the country’s sovereign
rating. During the year, S&P upgraded the Company’s
international debt rating to BBB+ ‘negative outlook’, which
is now two notches above India’s sovereign rating. Strong
credit ratings by leading international agencies reflect the
Company’s financial discipline and prudence.

Employees’ Stock Option Scheme
The Human Resources, Nomination and Remuneration
Committee of the Board of Directors of the Company, inter
alia, administers and monitors the Employees’ Stock Option
Scheme of the Company in accordance with the Securities
and Exchange Board of India (Employee Stock Option
Scheme and Employee Stock Purchase Scheme) Guidelines,
1999 (‘the SEBI Guidelines’).

The applicable disclosures as stipulated under the SEBI
Guidelines as on March 31, 2014 (cumulative position) with
regard to the Employees’ Stock Option Scheme 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.

The developments at our major subsidiaries are as below:

Shale Gas Business

The US shale gas business is now a material contributor
to RIL’s consolidated profits. The shale business delivered
revenues of $ 819 million and EBITDA of $ 616 million in 2013
on the back of a 52% growth in volumes to 154 BCFe. Proved
reserves of shale gas increased 43% to 2.66 TCFe.

Retail Business

Reliance Retail has become India’s largest retailer by revenues.
Financial Year (FY) 2013-14 Revenues grew 34% to ` 14,496
crore, while EBITDA was at ` 363 crore. The retail business
also achieved two major milestones in FY 2013-14. It crossed
10 million square feet of retail space and broke even on a
net profit basis during the year. The Company enhanced its
presence across various format sectors. Reliance Retail now
operates 1,691 stores across 146 cities.

Reliance Jio Infocomm

Reliance Jio Infocomm Limited (RJIL) successfully acquired
the right to use spectrum in 14 key circles across India in
the 1,800 MHz band in the spectrum auction conducted by
Department of Telecommunications (DoT), Government of
India (GoI). RJIL will use this spectrum in conjunction with
its pan India 2,300 MHz spectrum acquired earlier to provide
seamless 4G services using FDD-LTE on 1,800 MHz and
TDD-LTE on 2,300 MHz through an integrated ecosystem.
Following the acquisition, RJIL holds the largest quantum of
liberalised spectrum, with the longest residual spectrum life.

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Corporate Social Responsibility and
Governance Committee
During the year, your directors have constituted the
Corporate Social Responsibility and Governance Committee
(CSR&G Committee) comprising Shri Yogendra P. Trivedi as
the Chairman and Shri Nikhil R. Meswani, Dr. Dharam Vir
Kapur and Dr. Raghunath A. Mashelkar as other members.

the Company, Shri Adil Zainulbhai was appointed as an
Additional Director designated as an Independent Director
w.e.f. December 20, 2013 and he shall hold office up to the
date of the ensuing Annual General Meeting. The Company
has received requisite notice in writing from a member
proposing Shri Adil Zainulbhai for appointment as an
Independent Director.

The said Committee has been entrusted with the
responsibility of formulating and recommending to the
Board, a Corporate Social Responsibility Policy (CSR Policy)
indicating the activities to be undertaken by the Company,
monitoring the implementation of the framework of the
CSR Policy and recommending the amount to be spent on
CSR activities.

Consolidated Financial Statement
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 Interests in Joint Ventures, the
audited consolidated financial statement is provided in the
Annual Report.

Subsidiaries
Details of major subsidiaries of the Company and their
business operations during
review
are covered
the Management’s Discussion and
Analysis Report.

the year under

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 provide a copy of separate
annual accounts in respect of each of its subsidiary to any
shareholder of the Company who asks for it and the said
annual accounts will also be kept open for inspection at the
Registered Office of the Company and that of the respective
subsidiary companies.

Directors
Pursuant to the provisions of Section 161(1) of the
Companies Act, 2013 and the Articles of Association of

In terms of the Articles of Association of the Company,
Shri Ramniklal H. Ambani, Shri Nikhil R. Meswani,
Shri Yogendra P. Trivedi and Prof. Ashok Misra, Directors
retire at the ensuing Annual General Meeting. The Company
has received requisite notices in writing from members
proposing Shri Yogendra P. Trivedi and Prof. Ashok Misra for
appointment as Independent Directors.

The Company has received declarations from all the
Independent Directors of the Company confirming that
they meet with the criteria of independence as prescribed
both under sub-section (6) of Section 149 of the Companies
Act, 2013 and under Clause 49 of the Listing Agreement
with the Stock Exchanges.

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:

ii)

iii)

in the preparation of the annual accounts for the year
ended March 31, 2014, the applicable accounting
standards read with requirements set out under
Schedule VI to the Companies Act, 1956, have
been followed and there are no material departures
from the same;

the Directors have selected such accounting policies
and applied them consistently and made judgments
and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the
Company as at March 31, 2014 and of the profit of the
Company for the year ended on that date;

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.

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Auditors and Auditors’ Report

M/s. Chaturvedi & Shah, Chartered Accountants,
Deloitte Haskins & Sells LLP, Chartered Accountants and
M/s. Rajendra & Co., Chartered Accountants, Statutory
Auditors of the Company, hold office till the conclusion 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 141(3)(g) of the
Companies Act, 2013 and that they are not disqualified for
re-appointment.

The Notes on Financial Statements referred to in the
Auditors’ Report are self-explanatory and do not call for any
further comments.

Cost Auditors

The Company has appointed the following cost auditors for
conducting the audit of cost records of the Company for the
financial year 2013-14:

(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. Kiran J. Mehta & Co., Cost Accountants,
M/s. Bandyopadhyaya Bhaumik & Co., Cost Accountants,
M/s. Shome & Banerjee, Cost Accountants and
M/s. Dilip M. Malkar & Co., Cost Accountants;

(iii) For the Polyester Business - Shri Suresh D. Shenoy,
Cost Accountant and 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, were nominated
as the Company’s Lead Cost Auditor.

Secretarial Audit Report
As a measure of good corporate governance practice,
the Board of Directors of the Company appointed
Dr. K.R. Chandratre, Practising Company Secretary, to
conduct the Secretarial Audit. The Secretarial Audit Report
for the financial year ended March 31, 2014, is provided in
the Annual Report.

Investment

The Secretarial Audit Report confirms that the Company
has complied with all the applicable provisions of the
Companies Act, 1956, the 98 sections of the Companies
Act, 2013 notified vide Ministry of Corporate Affairs
Gazette Notification No. S.O. 2754(E) dated September
12, 2013, the Securities Contracts (Regulation) Act,
1956, Depositories Act, 1996, the Foreign Exchange
Management Act, 1999 to the extent applicable to
Overseas Direct
(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, 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 the members of the Company. Any member interested
in obtaining such particulars may write to the Company
Secretary of the Company.

Energy Conservation, Technology Absorption
and Foreign Exchange Earnings and Outgo
The particulars relating to energy conservation, technology
absorption, foreign exchange earnings and outgo, as
required to be disclosed under Section 217(1)(e) of the

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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 seven years have been
transferred by the Company, from to time to time on due
dates, to the Investor Education and Protection Fund.

Pursuant to the provisions of Investor Education and
information regarding
Protection Fund (Uploading of
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 06, 2013 (date of last Annual General Meeting)
on the Company’s website (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 the Report on corporate governance.

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 (BRR) as part of the Annual Report
describing the initiatives taken by the companies from
Environmental, Social and Governance perspective.
Pursuant to the above, the Stock Exchanges included in
the Listing Agreement a suggested framework of a BRR.
Accordingly, the BRR is attached which 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 Company’s
executives, staff and workers.

For and on behalf of the Board of Directors

Mukesh D. Ambani
Chairman and Managing Director

April 18, 2014

Annexure I

Disclosures required under the SEBI (Employee
Stock Option Scheme and Employee Stock
Purchase Scheme) Guidelines, 1999

(a) Options granted - 5,98,02,083; (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 ` 1,146 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; 8,000 options granted at an exercise price of
` 715 per option; 60,866 options granted at an exercise price of
` 860 per option and 11,000 options granted at an exercise
price of ` 880 per option. The above exercise prices
exclude all applicable taxes, as may be levied in this regard;
(c) Options vested - 3,61,53,770; (d) Options exercised - 84,53,836;
(e) The total number of shares arising as a result of exercise
of options – 84,53,836; (f ) Options lapsed – 2,33,71,841;
(g) Variation in terms of options – Nil; (h) Money realised
by exercise of options – ` 567,89,37,690; (i) Total number of
options in force [(a) – (d) – (f )] – 2,79,76,406; (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

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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) Basic and 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’ - ` 68.05.

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

to work

RIL continues
towards development and
implementation of climate change mitigation projects,
mainly through energy efficiency and use of cleaner fuels.
This year, the Company has taken up various initiatives
for deployment of renewable energy like rooftop solar
photovoltaic projects, biogas generation project and
carrying out wind resource assessment for exploring
possibility of installation of wind turbines.

A dedicated Energy Cell is focusing on energy management
and close monitoring of energy consumption pattern.
Periodic energy audits are conducted to improve energy
performance and benchmark with other refineries.

The energy consumption of all Manufacturing sites are
monitored constantly and corrective steps are immediately
taken to utilise the energy in the most optimal manner.

Major energy conservation measures carried out during the
FY 2013-14 are listed below:

Dahej Manufacturing Division

zz Evaporator Bypass in High Density Poly Ethylene II Plant

leading to steam savings

zz Stoppage of Ammonia Compressor via optimisation

leading to power savings

zz Usage of Hexane stream from distillation column bottom

products to preheater in Hexane recovery section

zz Steam saving by tube leak attending in surface condenser

plant in Ethane Propane Recovery Unit

Hazira Manufacturing Division

zz Power Import through Grid-Synchronisation based on

Power Import cost in CPP&U Plant

Hoshiarpur Manufacturing Division

zz Installing new Diesel Rotary UPS in Diesel Generation

Plant

zz Fuel change over from liquid fuel to pet coke by installing

new pet coke based Thermic Fluid Heater

Jamnagar Manufacturing Division (DTA)

zz Use of chiller-2 as first stage chilling for propane instead
of chiller-3 in Marine Tank farm to improve efficiency

zz Medium Pressure steam generation by pre-heating
Boiler feed water in isomar train 1(271 unit) heater stack
improving efficiency from 86% to 92%

zz Internal Ceramic coating for heater in Parex train to

reduce Radiation loss

zz High pressure steam reduction in reboiler of stripper

through process modification

Jamnagar Manufacturing Division (SEZ)

zz Operating 2 Aux boiler instead of 3 to maximise efficient

steam generation from Waste heat recovery boiler

zz Crude Column Overhead vapor heat recovery in Crude

Distillation unit to reduce steam consumption

zz Medium Pressure Steam generation from Light Coker
Naphtha Oil Product circuit in Vacuum hydrotreater units

zz Conversion of second generation electrolysers to energy

zz Internal ceramic coating

in Crude Distillation unit

efficient electrolysers in Chlor Alkali Plant

furnaces to reduce radiation losses

zz Centrate Water Heat Recovery Scheme in Poly Vinyl

zz Velocity steam reduction in Coker heater

Chloride Plant

zz Application of energy efficient insulation wrap on VHP
steam line from Captive Power Plant to Ethane Propane
Recovery Unit leading to steam savings

zz Use of Low Pressure Steam in Deisohexaniser Reboiler in

place of Medium Pressure steam

zz Medium Pressure steam recovery from flashing hot

condensate in Tail Gas Treating Unit

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zz Medium Pressure steam reduction in column reboiler of

zz Increase the size of LP steam control valve

Coker unit

Nagothane Manufacturing Division

zz Uprate of Gas Turbine Generating resulting to improved

heat rate and higher efficiency

zz Installing smaller air compressor for avoiding 4000 Nm3/

hr air venting from existing bigger compressor

zz Steam turbine overhauling

zz Antisurge control system for gas cracker and compressor

Patalganga Manufacturing Division

zz Reducing steam consumption in Column by installing

condensate Pot in place of steam trap

zz Steam savings by Heat Recovery from Ethylene Di

Chloride furnace stack

zz Application of energy efficient insulation wrap in VHP

steam header of Gas Cracker Unit

Hazira Manufacturing Division

zz Cracker compressor to be uprated in Cracker

zz Conversion of existing DH column to aseotropic type in

PTA plants

zz Reduced steam consumption by operating oxidation

reactor of Pure Terepthalic Acid at lower pressure

zz Installation of three new exchangers in quench water
circuit to recover heat from GHU stream in Cracker plant

zz Reduced energy losses by Air PreHeater cleaning of
Linear Alkyl Benzene Back End and Front End heaters

zz Reduction in radiation heat losses from old SHHP header
by applying high efficiency insulation in Cracker plant

zz Use of Pure Terepthlalic Acid LP steam instead of MP

steam in low temperature columns

Jamnagar Manufacturing Division (DTA)

zz Vacuum Distillation Unit off gas recovery in DTA Crude

Vadodara Manufacturing Division

Distillation Unit

zz Improvement of Ethylene Di Chloride

furnace

performance by adding two coils

Jamnagar Manufacturing Division (SEZ)

zz Feed charge pump Impeller change of Diesel Hydro

zz Replacement of Waste Heat Boiler De-mineralised water

Desulphurisation 1

bank

b) Additional investments / proposals being
implemented for reduction of consumption of
energy

Dahej Manufacturing Division

zz Installation of hydraulic Turbine in Ethane Propane

Recovery Unit

zz Feed charge pump Impeller change of Diesel Hydro

Desulphurisation 2

zz Routing total Hot Heavy Coker Gas Oil to Vacuum

Hydrotreater Unit

Nagothane Manufacturing Division

zz Provision of fluid coupling in Boiler Feed Water feed

pumps

zz Ethylene to Vinyl Chloride Monomer directly from

Naroda Manufacturing Division

ethylene tower in Gas Cracker Unit

zz Replacement of old Electric Motors with Energy Efficient

zz IP steam supply to Vinyl Chloride Monomer Plant from CPP
for stopping MP to IP letdown in Vinyl Chloride Monomer

zz Revamp of condensate stripper in Gas Cracker Plant

zz Increased steam generation and condensate recovery in

Mono Ethylene Glycol Plant

Motors

Vadodara Manufacturing Division

zz Installation of new footprint turbine for Cycle Gas
Compressor and Propylene compressor for Cracker plant

zz Power generation from SHP Steam let-down by 4.3 MW

in Naphtha Cracker Plant

Directors’ Report (Continued)154

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155

Impact of measures of (a) and (b) given above for reduction of energy consumption and consequent impact

c)
on the cost of production of goods

Sr.
No.

Manufacturing Division Energy conservation initiatives taken

Energy savings
(Gcal/hr)

Financial savings
(` crore per
annum)

Energy conservation measures taken

Dahej Manufacturing
Division

Conversion of second generation electrolysers to
energy efficient electrolysers in Chlor Alkali Plant

Centrate Water Heat Recovery Scheme in Poly Vinyl
Chloride Plant

Application of energy efficient insulation wrap
on VHP steam line from CPP 2 to Ethane Propane
Recovery Unit leading to steam savings

Evaporator Bypass in High Density Poly Ethylene II
Plant leading to steam savings

Stoppage of Ammonia Compressor via optimisation
leading to power savings

Usage of Hexane stream from distillation column
bottom products to preheater in Hexane recovery
section

Steam saving by tube leak attending in surface
condenser plant in Ethane Propane Recovery Unit

Hazira Manufacturing
Division

Power Import through Grid-Synchronisation based
on Power Import cost in CPP&U

Hoshiarpur
Manufacturing Division

Installing new Diesel Rotary UPS
Generating plant

in Diesel

Fuel change over from liquid fuel to pet coke by
installing new pet coke based Thermic Fluid Heater

Jamnagar
Manufacturing Division
(DTA)

Use of chiller-2 as first stage chilling for propane
instead of chiller-3 in Marine Tank farm to improve
efficiency

Medium Pressure steam generation by pre-heating
Boiler feed water in isomar train 1(271 unit) heater
stack improving efficiency from 86% to 92%

Internal Ceramic coating for heater in Parex train to
reduce Radiation loss

High pressure steam reduction in stripper through
process through modification

16.0

0.6

1.12

1.87

0.24

0.75

5.70

5.98

3.00

0.99

0.41

2.8

Jamnagar
Manufacturing Division
(SEZ)

Operating 2 Aux boiler instead of 3 to maximise
efficient steam generation
from Waste heat
recovery boiler

10.00

148.5

2.3

4.6

7.7

1.0

3.1

23.6

24.7

6.0

12.0

4.0

1.5

13.4

48.0

156

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Manufacturing Division Energy conservation initiatives taken

Sr.
No.

Energy savings
(Gcal/hr)

Financial savings
(` crore per
annum)

Crude Column Overhead vapor heat recovery in
Crude Distillation unit to reduce steam consumption

Medium Pressure Steam generation from Light
Coker Naphtha Oil Product circuit
in Vacuum
hydrotreater units

Internal ceramic coating in Crude Distillation unit
furnaces to reduce radiation losses

Velocity steam reduction in Coker heater

Use of Low Pressure Steam in Deisohexaniser
Reboiler in place of Medium Pressure steam

Medium Pressure steam recovery from flashing hot
condensate in Tail Gas Treating Unit

Medium Pressure steam reduction
reboiler of Coker unit

in column

Nagothane
Manufacturing Division

Uprate of Gas Turbine Generator

Patalganga
Manufacturing Division

Installing smaller air compressor for avoiding 4000
Nm3/hr air venting from existing bigger compressor

Steam turbine overhauling

Antisurge control system for gas cracker and
compressor

Reduced energy losses by Air PreHeater cleaning
of Linear Alkyl Benzene Back End and Front End
heaters

steam

consumption by operating
Reduced
oxidation reactor of Pure Terepthalic Acid at lower
pressure

Use of Pure Terepthlalic Acid LP steam instead of MP
steam in low temperature columns

Vadodara
Manufacturing Division

Improvement of Ethylene Di Chloride furnace
performance by adding two coils

Replacement of Waste Heat Boiler De mineralised
water bank

11.72

4.80

2.06

1.27

0.43

0.40

0.60

1.60

0.94

2.50

6.49

4.80

2.10

0.61

0.38

1.54

47.4

18.5

6.5

5.1

1.6

2.4

5.7

1.9

5.6

3.7

13.9

9.7

2.7

1.4

5.5

Directors’ Report (Continued)156

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Financial Statements

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Shareholders’ Referencer

157

Manufacturing Division Energy conservation initiatives identified

Sr
No.

Potential
Energy savings
(Gcal/hr)

Potential
Financial saving
(` crore per
annum)

b) Additional investments / proposals being implemented

Dahej Manufacturing
Division

Installation of hydraulic Turbine in Ethane Propane
Recovery Unit

Ethylene to Vinyl Chloride Monomer directly from
ethylene tower in Gas Cracker Unit

IP steam supply to Vinyl Chloride Monomer Plant
from CPP for stopping MP to IP let down in Vinyl
Chloride Monomer

Revamp of condensate stripper in Gas Cracker Plant

Increased steam generation and condensate
recovery in Mono Ethylene Glycol Plant

Increase the size of LP steam control valve

Reducing steam consumption
installing condensate Pot in place of steam trap

in Column by

Steam savings by Heat Recovery from Ethylene Di
Chloride furnace stack

Application of energy efficient insulation wrap in
VHP steam header of Gas Cracker Unit

Cracker compressor to be uprated in Cracker

Conversion of existing DH column to azeotropic
type in PTA plants

Installation of three new exchangers in quench
water circuit to recover heat from GHU stream in
Cracker plant

Reduction in radiation heat losses from old SHHP
header by applying high efficiency insulation in
Cracker plant

Vacuum Distillation Unit off gas recovery in DTA
Crude Distillation Unit

Feed charge pump Impeller change of Diesel Hydro
Desulphurisation 1

Feed charge pump Impeller change of Diesel Hydro
Desulphurisation 2

Hazira Manufacturing
Division

Jamnagar
Manufacturing Division
(DTA)

Jamnagar
Manufacturing Division
(SEZ)

0.54

1.60

4.89

1.78

1.46

0.49

0.35

1.34

0.81

12.88

14.48

0.97

0.54

2.67

7.96

2.4

6.7

20.2

7.3

6.0

2.0

1.4

5.5

3.4

49.7

19.0

3.7

2.1

5.4

16.1

158

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Sr
No.

Manufacturing Division Energy conservation initiatives identified

Potential
Energy savings
(Gcal/hr)

Potential
Financial saving
(` crore per
annum)

Routing total Hot Heavy Coker Gas Oil to Vacuum
Hydrotreater Unit

Nagothane
Manufacturing Division

Provision of fluid coupling in Boiler Feed Water feed
pumps

Naroda Manufacturing
Division

Replacement of old Electric Motors with Energy
Efficient Motors

Vadodara
Manufacturing Division

Installation of new footprint turbine for Cycle Gas
Compressor and Propylene compressor for Cracker
plant

Power generation from SHP Steam let-down by 4.3
MW in Naphtha Cracker Plant

2.16

0.42

0.18

4.24

2.95

4.4

1.5

1.2

15.3

10.6

(d) Total energy consumption and energy consumption per unit of production as per
Form ‘A’ attached hereto

B. Technology Absorption

‘Reliance Technology Group’ (RTG), RIL’s centre for
research and technology activities, focuses on (i) new
products, processes and catalyst development to support
existing business, and create breakthrough technologies for
new businesses, and (ii) advanced troubleshooting, support
to capital projects, and profit and reliability improvements
in manufacturing plants.

In the Refining area, RTG continues to pursue research in
the areas of coking, hydro processing, fluidized catalytic
cracking (FCC), and crude processing, molecule-based
process optimisation & value addition from low value
refinery streams.

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

(e) Efforts made in technology absorption - as per
Form B given below

Form B

Research and Development (R&D)

1. Specific areas in which the research and development

(R&D) is being carried out by the Company

zz Coking research facilities to carry out research projects
for upgrading refinery residue streams into value-added
products

zz Development of a new coking additive to increase liquid

product yields

zz A new process for total acid number (TAN) reduction in

crude and kerosene products

zz Addition of facilities

like desalter pilot plant and
extractive distillation pilot unit to boost crude processing
research capability

zz New analytical techniques for rapid crude characterisation
and molecule-based modeling and optimisation of intra-
refinery streams and processes

zz Carbon dioxide (CO2) capture from refinery flue gases

and its utilisation to make value added chemicals

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zz Development of catalyst and processes for gasification of

zz Discovery of novel class of superacid catalyst

petroleum coke/biomass at low temperature

zz In fluid catalytic cracking (FCC), a new process technology
for generating very high olefin yields from lower-value
feedstock

zz High

stability catalyst additive
petrochemicals co-production in FCC

for maximizing

zz Extraction of relatively hydrogen-rich stream from a low-

quality refinery stream

zz The use of feed properties and operating conditions to

optimize petroleum coke quality

zz Separation of olefins from coker gas oil for linear alkyl

benzene (LAB) production

zz Determination of crude corrosion potential and requisite

mitigation

zz Removal of heat stable salts and sodium from refinery

streams

zz Hydroisomerisation catalyst for diesel production and
low pressure, ultra-low sulphur diesel hydrotreating
catalyst

zz Technology development to process low-cost, heavy

crudes

zz Computational fluid dynamics studies

for trouble

shooting plant operations

zz In house research and external technology for converting
abundantly available cellulosic biomass in India to fuels
and chemicals

zz Development of high yielding, waste land based non-
edible crops for large scale cultivation for production of
biofuels/chemicals

zz Hydroprocessing kinetic model development including
deactivation kinetics and mechanistic model with
catalyst parameters

zz Impact Copolymer

(ICP) grades of gas phase
Polypropylene (PP) through in house catalyst technology

zz Biaxially Oriented Polypropylene (BOPP) grades of gas
phase PP through in-house catalyst donor technology

zz Development of non-HF process for LAB production

zz Synthesis and characterisation of noble metal nano-
particles and their deposition on commercial catalysts

zz Lab-scale development of superabsorbent polymers

zz Lab-scale development of microbial

for effluent

treatment in purified terephthalic acid (PTA) plant

zz New product development from ultrahigh molecular

weight polyethylene

zz Value addition of sulphur from refineries

zz Identification of novel materials for catalytic applications

zz Catalyst development for removal of unsaturates from

hydrocarbon streams

zz Novel catalyst system for 1,3-butadiene

zz Naphtha reforming catalyst development

zz Identification of environment friendly process for PTA

manufacture

zz Development of catalyst and process for styrene

zz Development of process for chlorinated polyvinylchloride

zz Development of barrier polyethylene terephthalate
(PET) resin for packaging oxygen sensitive foods and
beverages

zz Cobalt free PET resin commercialised on continuous PET

plants

zz PET resin with high Tg and high impact strength

zz Catalyst for polyester productivity enhancement and

colour improvement

zz Development of UV blocking PET resin for packaging

applications

zz Development of PET resin for thin walled injection

moulding applications

zz Development of extrusion blow mouldable grade of PET

having high melt strength

zz Development of UV resistant fiber

zz Asbestos fibre replacement with polyester fibres

zz Homo grades of gas phase PP through

in-house

zz Development of fiber for filtration application

monoester catalyst technology

zz High melt flow ICP grades of gas phase PP through

advanced catalyst system

zz Development of fiber for paper application

zz Indigenous development of catalyst for heavy metal

catalyst replacement

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zz Development of bi-shrinkage yarns for improved fabric

zz Development of high performance morphological

feel

catalyst system for slurry phase PP

zz Polyester recycling initiatives for diverse end uses &
Polyester waste recycling to improve carbon foot print

2. Benefits derived as a result of the above R&D

zz Potential benefit of ` 20 crore/annum by processing

higher amount of paraffinic crudes

zz Potential benefit of ` 30 crore/annum by replacing FCC

catalyst with new advanced catalyst

zz Improved high activity catalyst system for solution phase

zz Lower silver content catalyst for ethylene oxidation

zz Alternate routes for 1,3-butadiene production

zz Value addition of sulphur from refineries

zz Process for significant coke reduction during thermal

zz Potential benefit of ` 15 crore/annum from a new process
technology for generating very high olefin yields from
lower-value feedstock in FCC unit

cracking of hydrocarbons

zz Specialty product development

zz Potential benefit of around ` 6.71 crore/annum through

zz Development of adsorbent for separation of p-Xylene

research in polyester

from C8 aromatic streams

zz In-house technologies for polypropylene production

zz Manufacture of PDEB catalyst

zz Improved quality product with new catalyst systems

zz Alternate additives / catalyst for making specialty resins

3. Future plan of action

zz Process modifications for productivity enhancement in

zz Creation of hydroprocessing and advanced separation

related facilities and process development

PET continuous plants

zz Bottle to bottle Polyester recycling initiatives for use of

zz Process for widening of crude window through total acid

recycled PET

number reduction and other methods

zz Development of fine denier hollow fiber for light weight

zz Building MCC ( Multizone Catalytic Cracking) demo plant
for production of light olefins mainly Propylene and
ethylene from low value refinery streams

fabric

zz Increase in fiberfill products bulk

zz High-throughput facilities for catalyst development and

zz Development of fibre for filling applications

new product evaluation

zz Computational fluid dynamics

studies of plant

equipment for reliability improvement

zz Development of fine Sewing thread application

zz Development of fibre for Hygiene application

zz Molecular characterisation of crude and refinery streams

zz Development of self-crimped yarn

zz Stream-wise value addition to low value refinery streams

zz Import substitution of Spin finish for flat yarn and

zz Improved catalyst system for producing ICP and BOPP

partially oriented yarn

zz Development of next generation PP catalyst systems for

zz New generation technology Plant under construction for

specialty products

specialty filaments

zz Development of multiphasic PP

for automotive

zz Development of new FDY technology with lower energy

applications

consumption

Directors’ Report (Continued)160

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161

4. Expenditure on R & D

zz Capacity augmentation of PP plants at Jamnagar & Hazira

a) Capital

b) Revenue

c) Total

` crore

810.23

407.82

1218.05

zz Flexible intermediate bulk container (FIBC) loading

machines installation in Polyolefin plants

zz Installation of Sea-Bulk loading facility in PP plant at

Jamnagar

zz Metallocene grade production

Total R & D expenditure is 0.31 % of Revenue from
Operations.

Technology absorption, adoption and innovation

1. Efforts,

in brief, made
absorption, adoption and innovation

towards

technology

zz New catalytic cracking technology for high light olefin

yields from low value hydrocarbon streams

zz Purification of normal olefins from coker gas oil for LAB

production

zz Improvement and innovation for in-house catalysts with
higher efficiency (activity, and throughput) for producing
polypropylene

zz High flow PP grades for melt blown applications

zz Ultra-Pure PP homo-polymer grade for capacitance film
applications with incumbent catalyst and donor system

zz Commercial production of Ter-polymer based heat seal
BOPP/cast PP film grade using diether catalyst first time
in Spheripol technology plant

zz Conversion of existing LDPE line at Vadodara to produce
value added products like 18% EVA copolymers to
enhance contribution to business

zz HDPE extruder up gradation at Dahej for pipe grade

quality improvement

zz Productivity increase through new designed spinneret in

zz In-house production of 1-butene catalyst

Polyester

zz Selection and pilot plant studies for improved catalysts

for transalkylation

zz Further development of spunlace fibre for wipes and wet

wipes applications

zz Development of reactor models in various refinery/

zz Development of super low boiling shrinkage yarn

petrochemicals plants

zz Development of specialty yarn for long pile applications

zz Comparative evaluation and benchmarking of various

as well as for sparkling effect

technologies

zz Improvement and innovation in in-house developed
catalyst system for higher efficiency in terms of activity
and plant throughput for producing PP

zz Chemical Composition Distribution (CCD) of Polyolefins

using CRYSTAF-TREF is established

2. Benefits derived as a result of the above efforts

zz Potential value of around ` 31 Crores/Annum from

Polyester technology projects

zz Higher productivity of catalyst system and improved

production rate for PP

zz Expansion of RIL polymer product portfolio

3. Information regarding Imported Technology

Product

Technology import from Year of import

High Purity Iso-Butene (HPIB) Project at Jamnagar CB&I (Lummus)

Paraxylene (PX) Project at Jamnagar SEZ

Isobutylene Isoprene Rubber (IIR)

Lummus

Sibur, Russia

2013-14

2012-13

ROGC (Refinery Off-gas Cracker) for production
of Ethylene & Propylene

Technip, France

2012-13

Status implementation /
absorption

Engineering in progress

Plant Under Construction

Plant under design and
construction

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Product

Technology import from Year of import

Mono Ethylene Glycol (MEG)

DOW Process
Technologies, USA

Linear Low Density Polyethylene Project at
Jamnagar

Univation Technologies
LLC, USA

2012-13

Low Density Polyethylene Project at Jamnagar

LyondellBasell, Germany

2012-13

Air Separation Unit for Oxygen production

Linde - Germany

2012-13

Petcoke Gasification for Syngas

P66 – USA

2012-13

Acid Gas Recovery for cleaning Syngas

Linde - Germany

2012-13

Status implementation /
absorption

Plant under design and
construction

Partially oriented yarn/Fully drawn yarn (POY/
FDY)

Invista/Chemtex/
Barmag/TMT

2011-13

Plant Commissioned

Polyethylene Terephthalate (PET)

Invista/Chemtex / Buhler 2011-13

Under pre-
commissioning

Styrene butadiene rubber (SBR) Project at Hazira

Polimeri, Europa, Italy

2011-12

Plant under construction

Poly butadiene rubber (PBR) – III Project at Hazira JSR Corporation, Japan

2011-12

Plant under start up

Purified Terephthalic Acid (PTA 5 and PTA 6 at
Dahej)

INVISTA Performance
Technologies, UK

Recycled PET

OHL Engineering
GMBH PET Recycling
Technologies, Germany

2010-11 (PTA 5)

Plant under construction

2011-12 (PTA 6)

2010-11

Successfully
and implemented

absorbed

Butene-1 Project at Hazira

Axens

2009-10

Plant commissioned

C. Foreign Exchange Earnings And Outgo

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 ` 2,61,118 crore (US$ 43,581 million).

2. Total Foreign exchange earned and used

a. Total Foreign Exchange Earned

Total savings in Foreign Exchange through products manufactured by the Company and deemed exports
(US$ 18,576 million)
SUBTOTAL (a+b)

Total Foreign Exchange used

` crore

261,366

111,299

372,665

322,894

Directors’ Report (Continued)
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Form ‘A’
Form for disclosure of particulars with respect to conservation of energy

Part ‘A’
Power & Fuel Consumption

1 Electricity

Purchased Units (Lacs)
Total Cost (` in Crore) #
Rate/Unit (`) #
Generation through captive power facilities

Through Steam Turbine/Generator

Units (Lacs)

KWH per unit of fuel
Total Cost (` in Crore)
Cost/Unit (`)

Own Generation

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 crore)
Average rate per Ltr. (`)

3 Diesel Oil

Quantity (K. Ltrs)
Total Cost (` in crore)
Average rate per Ltr. (`)

4 Others

(a) Gas

Quantity (1000 M3)
Total Cost (` in crore)
Average rate per 1000M3 (`)

Current Year

Previous Year

10,392.24

5,055.13

525.52

5.06

255.92

5.06

53,170.68

53,679.73

6.31

4,686.18

4,057.95

8.81

7.56

112.82

3.71

12.49

376.40

3.88

11.08

45,695.89

50,761.34

5.35

7.16

5.53

6.33

15.72

23.81

52,272.28

36,304.06

212.01

40.56

150.27

41.39

4,021.20

5,266.93

24.55

61.05

25.37

48.17

26,10,081.06

19,11,848.90

7,568.61

5,050.61

28,997.60

26,417.39

164

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(b) Coal / Husk / Wood Fire

Quantity (MT)
Total Cost (` in crore)
Average rate per MT (`)

Internal Fuels consumed

5 Gas

Quantity (1000 M3)

6 GT fuels

Quantity (K.Ltrs)

# Excluding Demand Charges

B. Consumption per unit of Production

Current Year

Previous Year

35,802.95

35,188.69

13.87

12.18

3,873.71

3,460.65

44,83,297.65

58,11,841.76

9,56,912.10

5,68,883.09

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)

4,407

4,469

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)

784

367

313

606

421

407

534

290

577

244

197

666

2,473

510

737

362

299

624

428

418

523

294

544

237

206

645

2621

493

For and on behalf of the Board of Directors

Mukesh D. Ambani
Chairman and Managing Director

April 18, 2014

354

137

505

140

229

373

-52

446

481

270

482

-23

Directors’ Report (Continued)164

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Financial Statements

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Shareholders' Referencer

165

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, 2014, 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
The Company’s 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 Standards notified under the Companies Act,
1956 (the Act) read with the General Circular 15/2013 dated
13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013 and
in accordance with the accounting principles generally
accepted in India. 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
misstatement.
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, but not for the purpose of expressing
an opinion on the effectiveness of the Company’s internal
control. 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

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, 2014;
In the case of the Statement of Profit and Loss, of the
profit of the Company for the year ended on that date;
and
In the case of the Cash Flow Statement, of the cash flows
of the Company for the year ended on that date.

(b)

(c)

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 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 Accounting Standards notified under
the Act read with the General Circular 15/2013
dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the
Companies Act, 2013

e. On the basis of the written representations
received from the directors as on March 31, 2014,
taken on record by the Board of Directors, none of
the directors is disqualified as on March 31, 2014,
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 LLP
Chartered Accountants
(Registration No. 117366W/ W-100018)

For Rajendra & Co.
Chartered Accountants
(Registration No. 108355W)

D. Chaturvedi
Partner
Membership No.: 5611

A. B. Jani
Partner
Membership No.: 46488

A. R. Shah
Partner
Membership No.:47166

Mumbai

Date : April 18, 2014

166

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Financial Statements

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167

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

In respect of its fixed assets:

The Company has maintained proper records
showing full particulars including quantitative
details and situation of fixed assets on the basis
of available information.

b) As explained to us, all the fixed assets have been
physically verified by the management in a
phased periodical manner, which in our opinion
is reasonable, having regard to the size of the
Company and nature of its assets. No material
discrepancies were noticed on such physical
verification.

In our opinion, the Company has not disposed off
a substantial part of its fixed assets during the year
and the going concern status of the Company is
not affected.

In respect of its inventories:

The inventories have been physically verified
during the year by the management. In our
opinion, the frequency of verification is reasonable.

In our opinion and according to the information
and explanations given to us, the procedures of
physical verification of inventories followed by
the management are reasonable and adequate in
relation to the size of the Company and the nature
of its business.

The Company has maintained proper records
of inventories. As explained to us, there were
no material discrepancies noticed on physical
verification of inventories as compared to the book
records.

In respect of the loans, secured or unsecured, granted
or taken by the Company to / from companies, firms or
other parties covered in the register maintained under
Section 301 of the Companies Act, 1956:

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
` 20,955 crore and the year-end balance is
` 18,941 crore (including interest free loan of
` 13,454 crore).

In our opinion and according to the information
and explanations given to us, the rate of interest
and other terms and conditions of the loans given
by the Company, are not prima facie prejudicial to
the interest of the Company.

The principal amounts are repayable over a period
of three to five years, while the interest is payable
annually, both at the discretion of the Company.

In respect of the said loans and interest thereon,
there are no overdue amounts.

The Company has not taken any loan during
the year from companies, firms or other parties
covered in the Register maintained under Section
301 of the Companies Act, 1956. Consequently,
the requirements of Clauses (iii) (f ) and (iii) (g) of
paragraph 4 of the Order are not applicable.

In our opinion and according to the information
and explanations given to us, there is an adequate
internal control system commensurate with the size
of the Company and the nature of its business for the
purchases of inventory and fixed assets and for the sale
of goods and services. During the course of our audit,
we have not observed any continuing failure to correct
major weaknesses in such internal control system.

In respect of the contracts or arrangements referred to
in Section 301 of the Companies Act, 1956:

(a)

(b)

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.

8. We have broadly reviewed the cost records maintained
by the Company pursuant to the Companies (Cost
Accounting Records) Rules, 2011 prescribed by the
Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima
facie the prescribed cost records have been maintained.
We have, however, not made a detailed examination of
the cost records with a view to determine whether they
are accurate or complete.

In respect of statutory dues:

According to the records of the Company,
undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund,

166

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Shareholders' Referencer

167

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

Employees’ State Insurance, Income-Tax, Sales
Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess, and other material 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, 2014 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, 2014 to be credited
to Investor Education and Protection Fund of
` 12 crore, which are held in abeyance due to
pending legal cases, have not been considered.

b) Details of dues of Sale Tax, Custom Duty and Excise
Duty which have not been deposited as on March
31, 2014 on account of disputes are given below:

Sr.
No

Name of the
Statute

Nature of the
Dues

Period to which the
amount relates

Forum where dispute is
pending

Amount
(` in
crore)

1. Central Excise
Act, 1944

Excise Duty and
Service Tax

17 Various years from
1990-91 to 2012-13

Commissioner of
Central Excise (Appeals)

132 Various years from
1991-92 to 2012-13

Central Excise & Service
Tax Appellate Tribunal

1 1982-83 to 1985-86 Supreme Court

2. Central Sales Tax
Act, 1956 and
Sales Tax Acts
of various states

Sales Tax/ VAT
and Entry Tax

60 Various years from
1991-92 to 2009-10

Joint/Deputy
Commissioner/
Commissioner (Appeals)

488 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

TOTAL

Custom Duty

2007-08

Central Excise & Service
Tax Appellate Tribunal

844

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 LLP
Chartered Accountants
(Registration No. 117366W/ W-100018)

For Rajendra & Co.
Chartered Accountants
(Registration No. 108355W)

D. Chaturvedi
Partner
Membership No.: 5611

A. B. Jani
Partner
Membership No.: 46488

A. R. Shah
Partner
Membership No.:47166

Mumbai

Date : April 18, 2014

168

Reliance Industries Limited
Annual Report 2013-14

Reliance Industries Limited
Balance Sheet as at 31st March, 2014

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Statutory Reports

Financial Statements

Shareholders' Referencer

169

Note

As at
31st March, 2014

As at
31st March, 2013

(` in crore)

EQUITY AND LIABILITIES
Shareholders’ Funds
Share Capital
Reserves and Surplus

Share Application Money Pending Allotment
Non-Current Liabilities
Long Term Borrowings
Deferred Tax Liability (net)

Current Liabilities
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions

TOTAL

ASSETS

Non-Current Assets
Fixed Assets
Tangible Assets
Intangible Assets
Capital Work-in-Progress
Intangible Assets under Development
Non-Current Investments
Long Term Loans and Advances

Current Assets
Current Investments
Inventories
Trade Receivables
Cash and Bank Balances
Short Term Loans and Advances
Other Current Assets

1
2

3
4

5
6
7
8

9
9
9
9
10
11

12
13
14
15
16
17

TOTAL

Significant Accounting Policies
Notes on Financial Statements

1 to 37

3,232
1,93,842

3,229
1,76,766

62,711
12,215

22,770
57,862
10,767
4,167

80,424
28,982
32,673
9,043
52,692
28,436

33,370
42,932
10,664
36,624
11,277
466

1,97,074
17

74,926

1,79,995
25

55,205

43,012
12,193

11,511
45,787
21,640
4,348

95,566
3,67,583

83,286
3,18,511

82,962
26,786
13,525
5,591
24,143
21,528

2,32,250

1,74,535

28,366
42,729
11,880
49,547
10,974
480

1,35,333
3,67,583

1,43,976
3,18,511

As per our Report of even date

For and on behalf of the Board

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells LLP
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. B. Jani
Partner

A.R. Shah
Partner

Mumbai
Date : April 18, 2014

Alok Agarwal
Chief Financial Officer

K. Sethuraman
Company Secretary

- Chairman & Managing Director

Executive Directors

Directors

M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai

168

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Financial Statements

271-284
Shareholders' Referencer

169

Reliance Industries Limited
Statement of Profit and Loss for the year ended 31st March, 2014

Note

2013-14

(` in crore)

2012-13

INCOME :

Revenue from Operations

Sale of Products

Income from Services

Less: Excise Duty / Service Tax Recovered

Net 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

1 to 37

4,01,200

102

4,01,302

11,185

3,71,021

3,71,119

10,822

3,90,117

8,936

3,99,053

3,29,313

524

412

3,370

3,206

8,789

25,621

3,71,235

27,818

5,812

21,984

68.05

3,60,297

7,998

3,68,295

3,06,127

502

(3,317)

3,354

3,036

9,465

22,844

3,42,011

26,284

5,244

21,003

64.82

As per our Report of even date

For and on behalf of the Board

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells LLP
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. B. Jani
Partner

A.R. Shah
Partner

Mumbai
Date : April 18, 2014

Alok Agarwal
Chief Financial Officer

K. Sethuraman
Company Secretary

- Chairman & Managing Director

Executive Directors

Directors

M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai

170

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165-270

271-284

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Statutory Reports

Financial Statements

Shareholders' Referencer

171

Reliance Industries Limited
Cash Flow Statement for the year 20 13-14

CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit before tax as per Statement of Profit and Loss

27,818

26,284

2013-14

(` in crore)

2012-13

Adjusted for:

Net Prior Year Adjustments

Write off of investment

Loss on Sale / Discard of Assets (net)

Depreciation and Amortisation Expense

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

CASH FLOW FROM INVESTING ACTIVITIES:

Purchase of Fixed Assets

Sale of Fixed Assets

Purchase of Investments

Sale / Redemption of Investments

Movement in Loans and Advances

Investment in fixed deposits

Interest Income

Dividend Income

Net Cash (used in) Investing Activities

9,465

1,039

(1,658)

(77)

(6,245)

3,036

5,594

(6,086)

6,274

8,789

2,739

(2,348)

(91)

(6,472)

3,206

413

(203)

14,305

5,892

33,710

14,515

48,225

(6,065)

42,160

(32,456)

(7,78,343)

7,47,111

(3,911)

(3,400)

6,838

(64,013)

5,597

31,881

5,782

37,663

(3)

(4,665)

32,995

(15,944)

(4,79,071)

4,81,203

(7,546)

6,451

(14,797)

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Shareholders' Referencer

Cash Flow Statement for the year 2013-14 (Continued)

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 Generated from / (used in) Financing Activities

Net (Decrease)/ Increase in Cash and Cash Equivalents

Opening Balance of Cash and Cash Equivalents

Add: On Amalgamation ` NIL (Previous Year
` 16,96,263) (Refer Note No. 33)

Closing Balance of Cash and Cash Equivalents
(Refer Note No. 15)

2013-14

183

20,500

(19,672)

11,648

(3,093)

(4,053)

5,530

(16,323)

49,547

33,224

171

(` in crore)

2012-13

(3,087)

10,262

(10,306)

1,274

(2,924)

(3,505)

(8,249)

9,949

39,598

49,547

As per our Report of even date

For and on behalf of the Board

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells LLP
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. B. Jani
Partner

A.R. Shah
Partner

Mumbai
Date : April 18, 2014

Alok Agarwal
Chief Financial Officer

K. Sethuraman
Company Secretary

- Chairman & Managing Director

Executive Directors

Directors

M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai

172

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Statutory Reports

Financial Statements

Shareholders' Referencer

173

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared to comply with Accounting Principles Generally accepted in India
(Indian GAAP), the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 and the
relevant provisions of the Companies Act, 1956.
The financial statements are prepared on accrual basis under the historical cost convention, except for certain fixed
assets which are carried at revalued amounts. The financial statements are presented in Indian rupees rounded off to
the nearest rupees in crore.

B. USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions
to be made that affect the reported amount of assets and liabilities, disclosure of contingent 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. FIXED ASSETS

Tangible Assets
Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added
on revaluation, less accumulated depreciation and impairment loss, if any. The cost of tangible assets comprises its
purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for
its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations
attributable to the assets.
Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future
benefits from the existing asset beyond its previously assessed standard of performance.
Projects under which assets are not ready for their intended use are shown as Capital Work-in-Progress.

Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation/depletion
and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to
bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the intangible assets.

D. LEASES

a) Operating Leases: Rentals are expensed on a straight line basis 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 Statement of Profit and Loss.

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 asset 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 period 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. DEPRECIATION, AMORTISATION AND DEPLETION

Tangible Assets
Depreciation on fixed assets is provided to the extent of depreciable amount on the Written Down Value (WDV) Method
except in case of assets pertaining to Refining segment and SEZ units / developer where depreciation is provided on
Straight Line Method (SLM). Depreciation is provided at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956 except in respect of the following assets, where rates higher than those prescribed in Schedule
XIV are used;

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Significant Accounting Policies

Particular

Depreciation

Fixed bed catalyst (useful life:2 years or more)

Over its useful life as technically assessed

Fixed bed catalyst (useful life: up to 2 years)

100% depreciated in the year of addition

Assets acquired from 1st April, 2001 under finance lease

Over the period of lease term

Premium on leasehold land

Over the period of lease term

In respect of additions or extensions forming an integral part of existing assets and insurance spares, including
incremental cost arising on account of translation of foreign currency liabilities for acquisition of fixed assets,
depreciation is provided as aforesaid over the residual life of the respective assets. In respect of amounts added on
revaluation, depreciation is provided as aforesaid over the residual lives of the assets as certified by the valuers’.

Intangible Assets
These are amortised as under:

Particular

Amortisation / Depletion

Technical Know-how

Over the useful life of the underlying assets

Computer software

Over a period of 5 years

Development Rights

Depleted in proportion of oil and gas production achieved vis-a-vis the proved reserves
(net of reserves to be retained to cover abandonment costs as per the production
sharing contract and the Government of India’s share in the reserves, where applicable)
considering the estimated future expenditure on developing the reserves as per technical
evaluation

Others

Over the period of agreement of right to use, provided that in case of jetty, the aggregate
amount amortised to date is not less than the aggregate rebate availed by the Company.

IMPAIRMENT

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is
charged to the Statement of Profit and Loss 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.

G. FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the
transaction or that approximates the actual rate at the date of the transaction.

b. Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items
which are covered by forward exchange contracts, the difference between the year end rate and rate on the date
of the contract is recognised as exchange difference and the premium paid on forward contracts is recognised
over the life of the contract.

Non-monetary foreign currency items are carried at cost.

In respect of branches, which are integral foreign operations, all transactions are translated at rates prevailing on
the date of transaction or that approximates the actual rate at the date of transaction. Branch monetary assets and
liabilities are restated at the year end rates.

Any income or expense on account of exchange difference either on settlement or on translation is recognised
in the Statement of Profit and Loss, except in case of long term liabilities, where they relate to acquisition of fixed
assets, in which case they are adjusted to the carrying cost of such assets.

INVESTMENTS

Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Long-term investments
are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other
than temporary.

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INVENTORIES

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Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any,
except in case of by-products which are valued at net realisable value. 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.

J. REVENUE RECOGNITION

Revenue is recognised only when risks and rewards incidental to ownership are transferred to the customer, it can
be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of
goods, services, service tax, excise duty and sales during trial run period, adjusted for discounts (net), and gain/loss on
corresponding hedge contracts.

Dividend income is recognised when the right to receive payment is established.

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest
rate applicable.

EXCISE DUTY / SERVICE TAX

Excise duty / Service tax is accounted on the basis of both, payments made in respect of goods cleared / services
provided and provisions made for goods lying in bonded warehouses.

K. EMPLOYEE BENEFITS

Short term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered
by employees are recognised as an expense during the period when the employees render the services. These benefits
include performance incentive and compensated absences.

Post-employment benefits

Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions
to a separate entity The Company makes specified monthly contributions towards Provident Fund, Superannuation
Fund and Pension Scheme. The Company’s contribution is recognised as an expense in the Statement of Profit and Loss
during the period in which the employee renders the related service.

Defined benefit plans

The liability in respect of defined benefit plans and other post-employment benefits is calculated using the Projected
Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees’
services.

Actuarial gains and losses in respect of post-employment and other long term benefits are charged to the Statement of
Profit and Loss.

Employee Separation Costs

Compensation to employees who have opted for retirement under the voluntary retirement scheme of the Company is
charged to the Statement of Profit and Loss in the year of exercise of option by the employee.

L. BORROWING COSTS

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded
as an adjustment to the interest cost. 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 the Statement of Profit and Loss in the
period in which they are incurred.

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Significant Accounting Policies

M. RESEARCH AND DEVELOPMENT EXPENSES

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs
of products are charged to the Statement of Profit and Loss unless a product’s technological feasibility has been
established, in which case such expenditure is capitalised.

N. 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 Statement of Profit and Loss 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.

INCOME TAXES

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to
the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences
between taxable income and accounting income for the period and reversal of timing differences of earlier years/
period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future
income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are
recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same.

Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively
enacted by the Balance Sheet date.

P. PREMIUM ON REDEMPTION OF BONDS / DEBENTURES

Premium on redemption of bonds/debentures, net of tax impact, are adjusted against the Securities Premium Reserve.

Q. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision is recognised in the accounts when there is a present obligation as a result of past event(s) and it is probable
that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are
not discounted to their present value and are determined based on the best estimate required to settle the obligation
at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best
estimates.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are neither recognised nor disclosed in the financial statements.

R. ACCOUNTING FOR OIL AND GAS ACTIVITY

The Company has adopted Full Cost Method of accounting for its’ Oil and Gas activities and all costs incurred are
accumulated considering the country as a cost centre. Costs incurred on acquisition of interest in oil and gas blocks and
on exploration and evaluation are accounted for as capital work-in-progress. Upon a reserve being either ‘proved’ or
deemed to be ‘dry’, the costs accumulated in capital work-in-progress are capitalised to intangible assets. Development
costs incurred thereafter in respect of ‘proved’ reserves are capitalised to the said intangible asset. All costs relating to
production are charged to the Statement of Profit and Loss.

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 a line-by-line basis with similar items
in the Company’s financial statements, according to the participating interest of the Company.

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Notes on Financial Statements for the Year ended 31st March, 2014

The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.

SHARE CAPITAL

Authorised Share Capital:

500,00,00,000

Equity Shares of ` 10 each

(500,00,00,000)
100,00,00,000

(100,00,00,000)

Preference Shares of ` 10 each

Issued, Subscribed and Paid up:

323,19,01,858

Equity Shares of ` 10 each fully paid up

(322,86,63,382)

Less: Calls in arrears - by others
[` 3,113 (Previous Year ` 3,653)]

As at
31st March, 2014

(` in crore)
As at
31st March, 2013

5,000

1,000

6,000

5,000

1,000

6,000

3,232

3,229

3,232
3,232

3,229
3,229

TOTAL

1.1

1.2

1.3

1.4

1.5

162,67,93,078
(162,67,93,078)
6,92,52,623
(6,92,52,623)
45,04,27,345
(45,04,27,345)

17,18,83,624
(17,18,83,624)
4,62,46,280
(4,62,46,280)

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 Scheme of amalgamation with Reliance
Petroleum Limited 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, 2014
No. of Shares % held
8.15
26,35,20,679

As at
31st March, 2013
No. of Shares % held
7.98
25,77,59,467

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, 2014
No. of Shares
322,86,63,382
32,38,476
-
323,19,01,858

As at
31st March, 2013
No. of Shares
327,10,59,340
1,86,891
4,25,82,849
322,86,63,382

1.8 The Company has reserved issuance of 13,05,05,114 (Previous year 13,37,43,590) Equity Shares of ` 10 each for offering
to eligible employees of the Company and its subsidiaries under Employees Stock Option Scheme (ESOS). During the
year, the Company has granted 60,866 (Previous Year NIL) options to the eligible employees at a price of ` 860 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 Human Resources, Nomination and Remuneration
Committee from the date of grant based on specified criteria.

1.9 Share application money pending allotment represents application money received on account of Employees Stock

Option Scheme.

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Notes on Financial Statements for the Year ended 31st March, 2014

2. RESERVES AND SURPLUS

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 buy back of Equity Shares

Less: Calls in arrears - by others
[` 1,93,288 (Previous Year ` 2,21,548)]

Debentures Redemption Reserve
As per last Balance Sheet

Revaluation Reserve
As per last Balance Sheet
Less: Transferred to Profit and Loss Account (Refer Note No. 9.7)

General Reserve*
As per last Balance Sheet
Add: Transferred from Profit and Loss Account
Less: Transferred to Profit and Loss Account (Refer Note No. 9.7)

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 ` 9.5/- (Previous year ` 9.0/-)]
Tax on dividend**

TOTAL

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

291

48
-
-

47,645
205
47,850
-
47,850
-

1,055
1,055

1,18,000
18,000
790

8,610
-
21,984
30,594

18,000
-
2,793

475

4
1
43

50,677
12
50,689
3,044
47,645
-

47,850

1,117

47,645

1,117

3,127
2,072

1,055

1,00,000
18,000
-

1,35,210

1,18,000

7,609
1,116
21,003
29,728

18,000
43
2,628

447

9,326
1,93,842

8,610
1,76,766

Cumulative amount withdrawn on account of Depreciation on Revaluation is ` 3,353 crore (Previous Year ` 2,563
crore).

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Notes on Financial Statements for the Year ended 31st March, 2014

** 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 ` NIL (Previous Year
` 17 crore).

3. LONG TERM BORROWINGS

Secured

Non Convertible Debentures

Long Term Maturities of Finance Lease Obligations
(Refer Note No. 9.10 and 31)

Unsecured

Bonds

Term Loans- from banks

Deferred payment liabilities

TOTAL

As at
31st March, 2014

(` in crore)

As at
31st March, 2013

Non
Current

Current

Non
Current

Current

1,434

122

1,556

9,941

51,211

61,155

62,711

434

459

4,025

4,028

4,487

1,842

147

4,182

1,989

4,204

9,066

31,951

13,697

41,023

43,012

13,700

17,904

3.1 Non Convertible Debentures referred above to the extent of:

` 370 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.
` 917 crore are secured by way of first mortgage / charge on all the properties situated at Hazira Complex and at
Patalganga 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
TOTAL

2020-21
-
500
-
-
-
500

Non current
2017-18
133
-
-
-
-
133

2018-19
134
-
-
370
-
504

2016-17
133
-
-
-
-
133

2015-16
133
-
-
-
31
164

(` in crore)
Current

2014-15
133
-
250
-
51
434

TOTAL
533
500
-
370
31
1,434

3.3 Finance Lease Obligations are secured against leased assets.

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Notes on Financial Statements for the Year ended 31st March, 2014

3.4 Maturity profile and Rate of interest of Bonds are as set out below :

(` in crore)

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%
TOTAL

2096-97
-
-
-
-
-
-
-
-
-
74
-
-
74

2046-47
-
-
-
-
-
-
-
-
-
-
-
57
57

2027-28
-
-
-
-
-
-
30
-
-
-
-
-
30

Maturity Profile
2026-27
-
-
-
-
-
-
-
203
132
-
-
-
335

2018-19
-
-
-
228
-
1,019
-
-
-
-
-
-
1,247

2016-17
-
300
971
-
779
-
-
-
-
-
391
-
2,441

2015-16
964
-
-
-
-
-
-
-
-
-
-
-
964

TOTAL
964
300
971
228
779
1,019
30
203
132
74
391
57
5,148

3.5 Bonds include, 5.875% Senior Perpetual Notes (the "Notes") of ` 4,793 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.

3.6 Maturity Profile of Unsecured Term Loans are as set out below :

Term Loans- from banks

4. DEFERRED TAX LIABILITY (Net)

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

From Others
Rupee Loans

Unsecured
Other Loans and Advances
From Banks
Foreign Currency Loans - Buyers/Packing Credit
Rupee Loans

TOTAL

Maturity Profile

6-11 years
9,602

2-5 years
41,609

TOTAL
51,211

(` in crore)

1 year
4,025

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

12,376

161
12,215

12,293

100
12,193

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

600
7,389

406
27

7,989

1,199

433

13,582
-

10,978
100

13,582
22,770

11,078
11,511

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Notes on Financial Statements for the Year ended 31st March, 2014

5.1 Working Capital Loans from Banks referred above to the extent of:

(a) ` 3,906 crore are secured by hypothecation of present and future stock of raw materials, stock-in-process, finished
goods, stores and spares (not relating to plant and machinery), book debts, outstanding monies, receivables,
claims, bills, materials in transit, etc. save and except receivables of Oil and Gas Division.

(b) ` 3,105 crore are secured by way of lien on fixed deposits and ` 978 crore are secured by lien on Government

Securities.

5.2 Working Capital Loan from Others of ` 1,199 crore are secured by lien on Government Securities.

6. TRADE PAYABLES

Micro, Small and Medium Enterprises
Others
TOTAL

As at
31st March, 2014
108
57,754
57,862

(` in crore)

As at
31st March, 2013
66
45,721
45,787

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
Current maturities of Finance Lease Obligations
(Refer Note No. 3 and 9.10)
Interest accrued but not due on borrowings
Unclaimed Dividends #
Application money received and due for refund #
Unpaid matured debentures and interest accrued thereon #
Other Payables *
TOTAL

As at
31st March, 2014

As at
31st March, 2013

-
-
-
-
-
-
-

(` in crore)

As at
31st March, 2014
4,462
25

As at
31st March, 2013
17,882
22

4,487
194
175
1
1
5,909
10,767

17,904
340
152
1
1
3,242
21,640

These figures do not include any amounts, due and outstanding, to be credited to Investor Education and Protection
Fund except ` 12 crore (Previous Year ` 10 crore) which is held in abeyance due to legal cases pending.

Includes statutory dues, security deposit, creditors for capital expenditure and advance from customers.

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

As at
31st March, 2014
190
2,793
475
60
649
4,167

(` in crore)

As at
31st March, 2013
126
2,643
449
44
1,086
4,348

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Notes on Financial Statements for the Year ended 31st March, 2014

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, 2013 of ` 336 crore as per the estimated pattern of despatches.
During the year, ` 336 crore was utilised for clearance of goods. Provision recognised under this class for the year
is ` 300 crore which is outstanding as on 31st March, 2014. Actual outflow is expected in the next financial year.
The Company had recognised customs duty liability on goods imported of ` 747 crore as at 31st March, 2013.
During the year, further provision of ` 38 crore was made and sum of ` 439 crore was reversed on fulfilment of
export obligation. Closing balance on this account as at 31st March, 2014 is ` 346 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

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

Gross Block

Depreciation / Amortisation

As at
01-04 2013

Additions /
Adjustment

Deductions/
Adjustments

As at
31-03-2014

As at
01-04-2013

For the
Year#

Deductions/
Adjustments

As at
31-03-2014

(` in crore)

Net Block
As at
31-03-2014

As at
31-03-2013

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

-
196
668
4,481
107
571
14
73
-
-
6,110

-
-
-
6,110

-
127
4,294
-
4,421
10,531
8,251

36
1
13
1,024
5
4
7
30
-
-
1,120

-
-
-
1,120

-
-
-
-
-
1,120
590

1,586
1,504
9,171
1,41,030
3,693
7,117
529
420
387
46
1,65,483

318
10
328
1,65,811

3,403
608
43,564
9,179
56,754
2,22,565
2,13,154

296
-
3,084
69,834
1,728
1,856
352
200
268
27
77,645

204
10
214
77,859

53
-
280
7,609
163
322
29
54
13
3
8,526

20
-
20
8,546

1,910
426
22,267
944
25,547
1,03,406
91,770

181
38
1,951
55
2,225
10,771
12,140

9
-
3
977
2
1
5
21
-
-
1,018

-
-
-
1,018

-
-
-
-
-
1,018
504

340
-
3,361
76,466
1,889
2,177
376
233
281
30
85,153

224
10
234
85,387

2,091
464
24,218
999
27,772
1,13,159
1,03,406

1,246
1,504
5,810
64,564
1,804
4,940
153
187
106
16
80,330

94
-
94
80,424

1,312
144
19,346
8,180
28,982
1,09,406
1,09,748
32,673

9,043

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

13,525

5,591

$
*
#

Includes Office Equipments
Other than internally generated
Depreciation for the year includes depreciation of ` 137 crore (Previous Year ` NIL) capitalised during the year.

9.1 Leasehold Land includes ` 203 crore (Previous Year ` 203 crore) in respect of which lease-deeds are pending execution.
9.2 Buildings include :

i)
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.

182

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183

Notes on Financial Statements for the Year ended 31st March, 2014

iii)

` 93 crore (Previous Year ` 93 crore) in shares of Companies / Societies with right to hold and use certain area of
Buildings.

9.3

Intangible Assets - Others include :

ii)

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 ` 8,367 crore) in preference shares of subsidiaries and lease premium paid with right
to hold and use Land and Buildings.

9.4 Capital Work-in-Progress and Intangible Assets under development include :

ii)

` 4,204 crore (Previous Year ` 2,795 crore) on account of project development expenditure.
` 10,951 crore (Previous Year ` 4,685 crore) on account of cost of construction materials at site.

9.5 Project Development Expenditure

(in respect of Projects up to 31st March, 2014, included under Capital work-in-progress and Intangible Assets under
development)

Opening Balance
Add:

Transferred from Profit and Loss Account
(Refer Note no. 25)
Interest Capitalised (Refer Note no. 23)

Project Development Expenses Capitalised during the year

Less:
Closing Balance

2013-14
2,795

(` in crore)

2012-13
2,320

715
701

98
385

1,416
4,211
7
4,204

483
2,803
8
2,795

9.6 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.

9.7 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
` 1,845 crore (Previous Year ` 2,072 crore) and an equivalent amount has been withdrawn from Revaluation Reserve/
General Reserve.

9.8 Additions in Plant and Machinery, Capital Work-in-Progress, Intangible Assets - Development Rights and Intangible
Assets under development includes ` 8,678 crore (net loss) [Previous Year ` 5,070 crore (net loss)] on account of exchange
difference during the year.

9.9 Additions for the previous 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 been
included in depreciation for the previous year.

9.10 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, 2014 are as follows:

Within one year
Later than one year and not later than five years
Later than five years
TOTAL

(` in crore)

Total Minimum Lease
Payments outstanding
As at 31st March

Future interest on
Outstanding Lease
Payments

Present value of Mini-
mum Lease Payments
As at 31st March

2014
37
146
-
183

2013
37
147
36
220

2013-14
12
24
-
36

2012-13
15
35
1
51

2014
25
122
-
147

2013
22
112
35
169

182

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183

Notes on Financial Statements for the Year ended 31st March, 2014

ii) General Description of Lease terms:

Assets are taken on lease over a period of 5 to 10 years.

iii)

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, 2014 amount to ` 2 crore (Previous
Year ` 2 crore).

Within one year ` 44,00,000 (Previous Year ` 44,00,000)

Later than one year and not later than five years

TOTAL

10. NON-CURRENT INVESTMENTS

(Long Term Investments)
(Valued at Cost less other than temporary diminution in value, if any)

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
(52,00,000)

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 ` 40,40,000)]

In Preference Shares of Associate Company -

Unquoted, fully paid up

2013-14

(` in crore)

2012-13

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

50,00,00,000
(50,00,00,000)

9% Non-Cumulative Redeemable Preference
Shares of Reliance Gas Transportation
Infrastructure Limited of ` 10 each

2,000

Total Trade Investments (A)

Other Investments

In Equity Shares of Associate Company -

Quoted, fully paid up

2,000

2,079

68,60,064
(68,60,064)

Reliance Industrial Infrastructure Limited
of ` 10 each

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Notes on Financial Statements for the Year ended 31st March, 2014

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)]

In Equity Shares of Subsidiary Companies -

Unquoted, fully paid up

22,69,44,90,000
(4,79,76,90,000)
2,00,000
(2,00,000)
14,75,04,400
(14,75,04,400)
42,450
(42,450)
20,20,200
(20,20,200)
26,91,150
(26,91,150)
-
(65,50,001)
12,50,000
(50,000)
5,66,70,00,000
(5,66,70,00,000)
50,000
(50,000)

Reliance Jio Infocomm Limited
of `10 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 Strategic Investments Limited
of ` 10 each
Reliance Ventures Limited of ` 10 each

RIL (Australia) Pty Ltd of Aus $ 1 each

Reliance Energy Generation and Distribution
Limited of ` 10 each (Previous Year ` 5,00,000)]
Reliance Retail Ventures Limited of ` 10 each

Reliance Gas Pipelines Limited of ` 10 each
[` 5,01,256 (Previous Year ` 5,01,256)]

In Preference Shares of Subsidiary Companies -

Unquoted, fully paid up

8,04,83,61,211
(5,92,70,31,111)
4,02,800
(4,02,800)

63,436
(63,436)

-
(2,64,70,00,000)

Reliance Global Business B.V.
‘A’ Class 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
9% Cumulative Redeemable Preference Shares of
Reliance Jio Infocomm Limited of ` 10 each

In Debentures of Subsidiary Companies - Unquoted, Fully paid up

2,79,90,000
(2,79,90,000)

0% Unsecured Convertible Debentures
of Reliance Industrial Investments and
Holdings Limited of ` 100 each

As at
31st March, 2014

As at
31st March, 2013

22,695

4,798

148

2,351

5,667

30,910

572

113

5,667

13,037

30,926

13,053

382

113

2,647

770

3,227

280

184

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Notes on Financial Statements for the Year ended 31st March, 2014

8,83,143
(8,83,143)

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 )
[` 1,37,420 (Previous Year ` 1,69,920)]

In Government Securities-Quoted

8.33% GOI 2026
8.12% GOI 2020
7.16% GOI 2023

In Fixed Maturity Plan - Quoted fully paid up

25,90,00,000
(2,50,00,000)
6,00,00,000
(2,50,00,000)
63,10,00,000
(19,00,00,000)
-
(3,00,00,000)
15,50,00,000
(40,00,00,000)
22,80,00,000
(17,00,00,000)
14,00,00,000
(-)
80,00,00,000
(35,20,00,000)
6,00,00,000
(1,50,00,000)
83,50,00,000
(86,50,00,000)
28,80,00,000
(7,00,00,000)
10,50,00,000
(34,50,00,000)
40,00,00,000
(29,50,00,000)
19,50,00,000
(12,50,00,000)
12,00,00,000
(6,50,00,000)
2,50,00,000
(-)
30,00,00,000
(45,00,00,000)

Axis Fixed Maturity Plan -
(Series 34/47/49/52/55/59/60) - Growth
Baroda Pioneer Fixed Maturity Plan -
(Series C/M/N) - Growth
Birla Sun Life Fixed Term Plan - (Series GA/GB/GF/
JR/JX/KA/KE/KJ/KM/KO/KP/KR/KT) - Growth
BNP Paribas Fixed Term Fund - (Series 24A) -
Growth
DSP BlackRock Fixed Term Plan -
(Series 36/37/88/ 89/91/93/150/152) - Growth
DWS Fixed Maturity Plan -
(Series 26/28/30/45/49/ 52/53/47) - Growth
DWS Fixed Maturity Plan - Close ended debt fund -
(Series 54/57/63) - Growth
HDFC Fixed Maturity Plan -
(Series 23/28/29) - Growth
HSBC Fixed Term Plan -
(Series 90/105) - Growth
ICICI Fixed Maturity Plan -
(Series 65/66/67/71/72/73) - Growth
IDFC Fixed Maturity Plan - (Series 11/14/21/51/60/
64/66/70/72/75/79/84/86) - Growth
JP Morgan India Fixed Maturity Plan -
(Series 12/13/16/18/30/33) - Growth
Kotak Fixed Maturity Plan - (Series 97/98/99/101/
102/103/132/133/141/142/145/146/147/149) - Growth
L&T Fixed Maturity Plan –
(Series X/VII/IX) – (Plan B/H/J/M/Q/S/T) - Growth
LIC Nomura Mutual Fund Fixed Maturity Plan -
(Series 56/58/64/72/76/77/79) - Growth
Principal PNB Fixed Maturity Plan -
(Series B10) - Growth
Reliance Fixed Horizon Fund - (Series 2/5/9/27/33) -
(Plan - XXII/XXIII/XXV/XXVI) - Growth

As at
31st March, 2014

As at
31st March, 2013

442

722

650
-
-

5,357

650

190

400

170

352

865

345

295

125

450

-
3,111
2,246

259

631

155

228

140

800

835

288

105

400

195

120

300

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Shareholders' Referencer

187

Notes on Financial Statements for the Year ended 31st March, 2014

3,50,00,000
(12,00,00,000)
57,50,00,000
(38,00,00,000)
7,00,00,000
(-)
8,80,00,000
(10,00,00,000)
17,00,00,000
(25,00,00,000)
13,50,00,000
(14,00,00,000)

Religare Fixed Maturity Plan -
(Series XVII/XVIII) - (Plan A/B/D/F/H) - Growth
SBI Debt Fund -
(Series A - 1/2/3/5/10/11/14/15/25) - Growth
SBI Debt Fund - Double Indexation Benefit -
(Series A-14) - Growth
Sundaram Fixed Term Plan -
(Series DC/DF/DH/EU/EX/FD/FI) Growth
Tata Fixed Maturity Plan - (Series 42/46) -
(Scheme B/C/G/H/K/M/N/Q/T) - Growth
UTI Fixed Term Income Fund - (Series XIII-III/
XIV-VIII/XVII-VII/XVII-XIV/XVIII-I/XVII-IV) - Growth

In Debentures or Bonds - Unquoted

Tata Sons Limited

3,000
(-)

In Debentures or Bonds - Quoted

6,350
(-)
650
(-)
20
(-)
42,81,393
(-)
700
(-)
32,550
(-)
3,500
(-)
550
(-)
49,44,752
(-)
42,62,612
(-)
9,49,946
(-)

LIC Housing Finance Limited

Tata Steel Limited

Power Grid Corporation of India Limited

Power Finance Corporation Limited

Rural Electrification Corporation Limited

Housing Development Finance Corporation
Limited
Infrastructure Development Finance Company
Limited
National Bank for Agriculture and Rural
Development
National Highways Authority of India

Indian Railway Finance Corporation Limited

National Thermal Power Company Limited

As at
31st March, 2014

As at
31st March, 2013

575

170

135

300

635

1,385

3,293

350

494

426

120

380

100

250

140

5,674

4,412

300

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

6,864
50,613

52,692

17,911

18,039

34,781

-
22,064

24,143

5,078

5,329

19,065

186

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187

Notes on Financial Statements for the Year ended 31st March, 2014

11. LONG TERM LOANS AND ADVANCES

(Unsecured and Considered Good)

Capital Advances #
Deposits with Related parties (Refer Note No. 31)
Loans and Advances to Related Parties (Refer Note No. 31)
Advance Income Tax (Net of Provision)
Other Loans and Advances*
TOTAL

(` in crore)

As at
31st March, 2014
4,407
1,499
21,740
728
62
28,436

As at
31st March, 2013
1,208
1,463
18,314
475
68
21,528

Includes ` 5 crore (Previous Year ` NIL) to Reliance Utilities and Power Private Limited and ` 2 crore (Previous Year
` 2 crore) to Reliance Industrial Infrastructure Limited which are related parties.

Includes Loans to Employees.

11.1 Loans and Advances in the nature of Loans given to Subsidiaries and Associates:

Loans and Advances in the nature of Loans

Name of the Company

Sr
No.

As at
31st March, 2014

As at
31st March, 2013

Maximum
Balance
during
the year

1. Reliance Industrial Investments

Subsidiary

18,941

20,555

17,306

and Holdings Limited*
2. Reliance Ventures Limited
3. Reliance Strategic Investments

Limited

Subsidiary
Subsidiary

4. Reliance Retail Limited
5. Reliance Exploration & Production

Subsidiary
Subsidiary

DMCC

6. Reliance Brands Limited
7. Reliance Corporate IT Park Limited
8. Reliance Gas Pipelines Limited
9. Reliance Jio Infocomm Limited
10. Gujarat Chemical Port Terminal

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate

Company Limited
TOTAL

4,351
1,158

1,737
78

32
1,290
33
400
6

14
471

1,737
78

-
945
33
-
6

22,225

-
-

920
71

11
-
-
-
6

18,314

(` in crore)

Maximum
Balance
during
Previous
year
19,135

1,767
2,421

1,181
72

11
-
-
-
6

Excluding Debentures of ` 722 crore (Previous Year ` 722 crore)

(a) Loans and Advances shown above, fall under the category of ‘Long Term Loans and Advances’ in nature of
Loans and are re-payable within 3 to 5 years except Short Term Loans and Advances to Reliance Ventures
Limited and Reliance Strategic Investments Limited.

(b) All the above loans and advances are interest bearing except for an amount of ` 13,454 crore given to Reliance

(c)

(i)

Industrial Investments and Holdings Limited and ` 33 crore paid to Reliance Gas Pipelines Limited.
Loans to employees as per Company’s policy are not considered.

Investment by the loanee in the shares of the Company

*None of the loanees and loanees of subsidiary companies have, per se, made investments in shares of the
Company. These investments represent shares of the Company allotted as a result of amalgamation of erstwhile
Reliance Petroleum Limited (amalgamated 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.

188

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Notes on Financial Statements for the Year ended 31st March, 2014

(ii)

(iii)

(iv)

Sr No. Name of the Company

*Reliance Aromatics and Petrochemicals Limited

*Reliance Energy and Project Development Limited

(` in crore)

No. of Shares
held in RIL

Amount of
Loan Given

2,98,89,898

20,58,000

303

Reliance Commercial Land & Infrastructure Limited
Reliance Global Business B.V.
Reliance Gas Corporation Limited
Reliance Universal Enterprises Limited
Indiawin Sports Private Limited
Reliance Corporate Services Limited
Reliance Industries Investment and Holding Limited
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
Reliance Jio Electronics Private Limited
Reliance Aromatics and Petrochemicals Limited
Reliance Energy and Project Development Limited
Reliance Chemicals Limited
Reliance Polyolefins Limited
Reliance Retail Finance Limited
Reliance Retail Insurance Broking Limited
Reliance World Trade Private Limited

Investment by Reliance Industrial Investments and Holdings Limited in subsidiaries
In Equity Shares :
Sr No. Name of the Company
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
In Preference Shares :
Sr No. Name of the Company
1
2
3
4
5
Investment by Reliance Exploration & Production DMCC in Subsidiaries
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
1
2
3
4
5
6

Reliance Review Cinema Limited
Reliance Trading Limited
Delight Proteins Limited
Reliance Financial Distribution and Advisory Services Limited
Reliance-GrandOptical Private Limited
Achman Commercial Private Limited

Reliance Industries Investment and Holding Limited
Reliance Jio Infocomm Limited
Reliance Exploration & Production DMCC
Reliance Corporate Services Limited
Mark Project Services Private Limited

Gulf Africa Petroleum Corporation
Central Park Enterprises DMCC

No. of Shares
4,30,10,000
18,00,000
50,000
64,25,000
26,50,000
10,000
50,000
50,000
5,000
50,000
1,65,60,000
8,83,86,308
88,92,000
1,76,200
25,500
10,09,300
10,09,280
10,10,600
10,10,000
20,20,000
40,00,000
1,000

No. of Shares
31,93,100
12,50,00,000
14,51,846
50,000
1200

No. of Shares
16,720
367

No. of Shares
50,000
10,50,000
50,000
50,.000
50,000
50,000

188

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Notes on Financial Statements for the Year ended 31st March, 2014

Reliance F & B Services Limited
Reliance Petro Marketing Limited
Reliance Food Processing Solutions Limited
Reliance Dairy Foods Limited
Reliance Clothing India Private Limited
Reliance Agri Ventures Private Limited

Sr No. Name of the Company
7
8
9
10
11
12
In Preference Shares :
Sr No. Name of the Company
1
2
3
4
5
6
7
8
9
Investment by Reliance Ventures Limited in Subsidiaries in Equity Shares:
Sr No. Name of the Company
1

Reliance Petro Marketing Limited
Achman Commercial Private Limited
Delight Proteins Limited
Reliance Dairy Foods Limited
Reliance F & B Services Limited
Reliance Food Processing Solutions Limited
Reliance Financial Distribution and Advisory Services Limited
Reliance Agri Ventures Private Limited
Reliance Review Cinema Limited

Reliance Haryana SEZ Limited

Reliance Global Commercial Limited
Reliance Universal Commercial Limited

Investment by Reliance Strategic Investments Limited in Subsidiaries in Equity
Shares:
Sr No. Name of the Company
1
2
Investment by Reliance Corporate IT Park Limited in Subsidiaries
In Equity Shares:
Sr No. Name of the Company
1
2
3
4
In Preference Shares :
Sr No. Name of the Company
1

Reliance Corporate Center Limited
Reliance Infrastructure Management Services Limited
Reliance People Serve Limited
Strategic Manpower Solutions Limited

Reliance People Serve Limited

(v)

(vi)

(vii)

11.2 (i) Assets given on finance lease on or after 1st April, 2001

No. of Shares
50,000
50,000
50,000
50,000
50,000
50,000

No. of Shares
39,95,800
8,000
64,000
2,00,000
8,000
2,76,000
70,000
2,820
2,000

No. of Shares
46,250

No. of Shares
25,500
25,000

No. of Shares
50,000
50,000
50,000
50,000

No. of Shares
8,000

(` in crore)

Particulars

Gross Investment

Less: Unearned Finance Income

Present Value of Minimum
Lease Rental

Total

Not later than one
year

Later than one year
and not later than
five years

Later than five
years

2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13

(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.

190

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271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

191

Notes on Financial Statements for the Year ended 31st March, 2014

12. CURRENT INVESTMENTS

(Carried at lower of cost and quoted / fair value, including current portion of long term investment)

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

Investment in Government Securities - Quoted

1.44% IIGS 2023
7.28% GOI 2019
7.59% GOI 2016
8.12% GOI 2020
8.20% GOI 2025
8.33% GOI 2026
8.83% GOI 2023
8.97% GOI 2030
9.47% GSEC 2024
9.48% GSEC 2024

Collateral Borrowing and Lending Obligation - Unquoted

Investment in Debentures or Bonds - Quoted, Fully Paid up

-
(300)
3,050
(38,200)
-
(6,500)
-
(15,095)
-
(42,63,562)
-
(5,150)
-
(7,250)
-
(49,44,752)
100
(42,74,393)
20
(40)
-
(595)
-
(650)
-
(1,320)

Export Import Bank of India

Housing Development Finance Corporation Limited

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

Tata Steel Limited

Tata Power Company Limited

256
509
5
72
-
-
301
-
100
75

303

-
-
5
-
278
102
-
149
-
-

1,318
355

534
-

3,828

647

149

521

515

726

494

688

133

Investment in Debentures or Bonds - Unquoted, Fully Paid up

Tata Sons Limited

-
(3,000)

316

7,853

300

190

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Company Overview

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Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

191

Notes on Financial Statements for the Year ended 31st March, 2014

As at
31st March, 2014

As at
31st March, 2013

Investment in Fixed Maturity Plan - Quoted, Fully Paid up
Axis Fixed Term Plan -
(Series 21/22/34) - Growth
Baroda Pioneer Fixed Maturity Plan -
(Series A/C/E/G/J) - Growth

2,50,00,000
(5,00,00,000)
9,80,00,000
(2,50,00,000)

-
(2,50,00,000)

Birla Sun Life Fixed Term Plan -
(Series FP) - Dividend

1,89,00,00,000
(67,00,00,000)

26,00,00,000
(1,50,00,000)

Birla Sun Life Fixed Term Plan - (Series ES/EV/EY/FC/FD/
FM/FO/GA/GB/GF/GT/GV/HD/HI/HK/HL/HM/HQ/HS/
HV/HY/IA/JA/JE/JG/JI/JL/JN/JO/JQ/JT/JU/JY/JZ/KC/KD/
KF/KG/KH/KI/KK/KN/KQ) - Growth
Birla Sunlife Interval Income Fund -
(Annual Plan V/VIII/IX/X) - Growth

13,50,00,000
(5,00,00,000)

BNP Paribas Fixed Term Fund -
(Series 24A/25A/26A/26C/29B) - Growth

1,67,00,00,000
(53,00,00,000)

47,50,00,000
(29,80,00,000)

-
(3,00,00,000)

DSP BlackRock Fixed Maturity Plan - (Series 37/38/43/
44/88/89/90/91/93/94/95/103/104/105/107/108/109/
110/113/117/130/144/146/149/151/153/155) - Growth
DWS Fixed Maturity Plan - (Series 6/7/9/10/26/27/28/
29/30/32/34/36/42/43/46/48/50) - Growth

DWS Fixed Maturity Plan - (Series 18) - Dividend

7,50,00,000
(-)

DWS Fixed Maturity Plan - Close ended debt fund -
(Series 51/55/62) - Growth

5,00,00,000
(-)

-
(5,00,00,000)

2,13,70,00,000
(62,70,00,000)

13,50,00,000
(4,50,00,000)

DWS Interval Fund Annual Plan - Growth

HDFC Annual Interval Fund - (Series 1) - Growth

HDFC Fixed Maturity Plan - (Series 366D/369D/370D/
371D/372D/384D/390D/391D/392D/398D/399D/400D/
526D/566D) - Growth
HSBC Fixed Term Plan -
(Series 86/90/94/96/101-104) - Growth

19,99,03,904
(5,98,46,064)

ICICI Prudential Fixed Maturity Annual Interval Plan -
(Series VI/VII) - (Plan C/D/F/I) - Cumulative

1,75,00,00,000
(88,00,00,000)

92,40,00,000
(-)

ICICI Prudential Fixed Maturity Plan -
(Series 62/63/65/66/67/68/69/70/71) - (Plan A/B/C/D/E/
F/G/H/I/J/K/M) - Cumulative
ICICI Prudential Fixed Maturity Plan - (Series 72/73) -
(Plan A/B/C/D/G/H/I/K/M/P/R/T) - Growth

-
(9,96,19,002)

ICICI Prudential Long Term Plan - Premium Plus -
Dividend

2,00,00,000
(-)

IDBI Fixed Maturity Plan -
(Series III) - Dividend

-
(2,50,00,000)

IDBI Fixed Maturity Plan -
(Series III) - Growth

1,890

260

135

1,670

475

2,137

135

208

1,750

924

670

530

298

627

880

100

192

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271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

193

Notes on Financial Statements for the Year ended 31st March, 2014

As at
31st March, 2014

As at
31st March, 2013

85,50,00,000
(34,70,00,000)

-
(9,60,00,000)

IDFC Fixed Maturity Plan -
(Series 7/8/11/12/13/14/24/25/27/31/32/33/34/49/50/
54/59/65/67/69/74/85/78/81/85) - Growth
IDFC Fixed Maturity Plan -
(Series 74/78/79) - Dividend

11,07,54,164
(12,00,00,000)

IDFC Yearly Interval Fund -
(Series I/II/III) - Growth

-
(3,50,00,000)

Indiabulls Fixed Maturity Plan - Growth

2,50,00,000
(-)

JM Fixed Maturity Plan -
(Series FXXIV) - (Plan C)- Growth

50,00,00,000
(21,50,00,000)
1,14,00,00,000
(36,00,00,000)

33,70,00,000
(4,00,00,000)
31,00,00,000
(14,50,00,000)
68,00,038
(-)
4,95,01,683
(-)
68,00,00,000
(11,00,00,000)
24,78,28,132
(-)
15,50,00,000
(24,80,00,000)
19,50,00,000
(-)
62,00,00,000
(45,50,00,000)
-
(14,00,00,000)
1,10,00,00,000
(7,50,00,000)
31,00,00,000
(6,50,00,000)
96,90,00,000
(13,50,00,000)
8,50,00,000
(-)
3,04,93,690
(5,49,80,083)
1,33,50,00,000
(22,50,00,000)

JP Morgan India Fixed Maturity Plan -
(Series 6/12/13/16/17/18/21/31/32) - Growth
Kotak Fixed Maturity Plan - (Series 76/80/82/97/98/99/
100/101/102/104/105/106/107/110/111/112/114/116/
118/119/136/137/138/139/143/144/152) - Growth
L & T Fixed Maturity Plan -
(Series VII/VIII/IX/X) - (Plan A/D/G/I/J/L) - Growth
LIC Nomura Fixed Maturity Plan - (Series 52/53/54/55/
56/58/60/61/62/63/66/68/73/75) - Growth
LIC Nomura Interval Fund -
(Series 1) - Growth
Reliance Annual Interval Fund -
(Series 1) - Growth
Reliance Fixed Horizon Fund -
(Series XXII/XXIII/XXVI/XXV/XXIV) - Growth
Reliance Yearly Interval Fund -
(Series 3/6/8) - Growth
Religare Fixed Maturity Plan - (Series XIII/XIV/XVII/XVIII/
XXII) - (Plan A/B/C/D/E/F) - Growth
Religare Invesco Fixed Maturity Plan -
(Series XIX/XXI/XXII) - (Plan A/C/E/F/G) - Growth
SBI Debt Fund -
(Series 1/2/12/13/14/15/23/24/25/28/29) - Growth
SBI Debt Fund -
(Series 5/7) - Dividend
SBI Debt Fund - (Series 9/12/13/16/18/32/33/34/36/37/
38/39/41/47/48/49/51/52/53/54) - Growth
Sundaram Fixed Term Plan - (Series CQ/DC/DF/DG/DH/
DO/DQ/DR/EW/EY/FB/FF/FJ) - Growth
Tata Fixed Maturity Plan - (Series 39/40/42/43/44/45/46)
- (Scheme A/B/C/D/E/G/H/I/L/O/P) - Growth
UTI Fixed Term Income Fund -
(Series XVII-I/XVII-V) - Growth
UTI Fixed Income Interval Fund - Annual Interval Plan
(Series - II/III/IV) - Growth
UTI Fixed Term Income Fund - (Series XIII-III/XIV-V/
XIV-VI/XIV-VII/XIV-VIII/XV-I/XV-II/XVI-IV/XVI-VII/XVII-X/
XVII-XVI/XVI-I/XV-III/XVII-II/XV-IV/XV-V/XV-VI/XV-VII/
XV-X/XVII-XX/XVIII-III/XVIII-IV/XVII-XIII) - Growth

855

113

500

1,140

337

310

680

250

155

195

620

1,100

310

969

1,335

347

120

215

360

145

110

248

455

140

135

225

192

Reliance Industries Limited

Annual Report 2013-14

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02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

193

Notes on Financial Statements for the Year ended 31st March, 2014

-
(13,00,00,000)

UTI Fixed Term Income Fund -
(Series - XII-IV/XIII) - Dividend

Investment in Mutual Fund - Unquoted

As at
31st March, 2014

As at
31st March, 2013

130

18,941

6,493

2,27,889
(-)
7,59,94,772
(11,08,67,422)
29,22,23,922
(1,31,48,48,855)
22,34,01,784
(5,56,20,512)
-
(2,31,91,812)
-
(4,59,45,325)
4,95,70,718
(-)
-
(5,96,310)
7,22,79,657
(11,14,37,619)
-
(48,23,954)
-
(11,66,82,484)
3,61,86,149
(-)
-
(1,04,54,867)
-
(4,66,90,013)
2,40,93,515
(-)
-
(14,48,86,484)
-
(12,93,69,261)
-
(60,38,424)
1,84,06,566
(-)
11,79,24,798
(5,81,04,402)
3,25,53,638
(-)
29,63,61,644
(19,73,54,869)

Axis Banking Debt Fund - Growth

Axis Short Term Fund - Growth

Birla Sunlife Dynamic Bond Fund - Retail - Growth

549

Birla Sunlife Short Term Fund - Growth

1,000

Canara Robeco Short Term Fund - Regular Growth

Canara Robeco Short Term Institutional Growth Fund

DSP Black Rock Banking & PSU Debt Fund - Regular
Plan - Growth
DSP Black Rock Liquidity Fund - Institutional Plan
Growth
DSP Black Rock Short Term Fund - Growth

DSP Black Rock Strategic Bond Fund -Institutional Plan
- Growth
DWS GILT Fund - Regular Plan - Growth

DWS InstaCashPlus Fund Super Institutional Plan
Annual Bonus
DWS InstaCashPlus Fund Super Institutional Plan Bonus

DWS Money Plus Fund - Regular Plan (Principle Units)
- Bonus
DWS Mutual Fund ICP-Bonus

DWS Premier Bond Fund - Premium Plus Plan - Growth

DWS Short Maturity Fund - Premium Plus Growth

DWS Treasury Fund - Cash - Regular Plan - Bonus

DWS Treasury Fund - Investment - Regular Plan - Bonus

DWS Treasury Fund - Investment - Regular Plan -
Growth
Franklin India Savings Plus Fund - Growth

HDFC Short Term Opportunities Fund - Growth

147

600

236

159

400

135

2,418

225

100

210

625

150

147

240

194

Reliance Industries Limited
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165-270

271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

195

Notes on Financial Statements for the Year ended 31st March, 2014

As at
31st March, 2014

As at
31st March, 2013

50,00,000
(-)
11,23,62,581
(14,69,19,109)
-
(22,67,48,577)
-
(86,58,009)
21,41,12,926
(25,68,76,110)
-
(22,68,83,560)
-
(16,70,54,915)
3,61,78,141
(-)
4,06,37,366
(-)
11,08,46,926
(-)
3,98,32,730
(-)
2,41,47,124
(-)
-
(3,46,29,245)
-
(31,83,61,805)
-
(14,42,759)
-
(10,86,67,777)
16,20,52,229
-
-
(4,39,26,695)
10,88,83,711
-
12,63,13,875
(-)
-
(2,33,10,265)
-
(42,82,45,478)
29,82,16,282
(9,99,03,094)
-
(1,75,479)

HDFC Debt Fund for Cancer Cure - 50% Regular Option
- Dividend Donation
HDFC Floating Rate Income Fund - Long Term Plan -
Growth
HDFC High Interest Fund - Short Term Plan - Growth

HDFC Liquid Fund - Growth

250

HDFC Medium Term Opportunities Fund - Growth

278

HDFC Short Term Plan - Growth

HSBC Income Fund Short Term Institutional Plus
Growth
ICICI Prudential Banking and PSU Debt Fund - Growth

ICICI Prudential Blended Plan A - Dividend

ICICI Prudential Blended Plan B - Growth

ICICI Prudential Equity Arbitrage Fund - Dividend

ICICI Prudential Gilt Fund Treasury Plan - Quarterly
Dividend Reinvestment
ICICI Prudential Gilt Treasury Plan - Regular Growth

ICICI Prudential Institutional Short Term Plan -
Cumulative
ICICI Prudential Liquid - Regular Plan - Growth

ICICI Prudential Short Term Plan - Regular Growth

200

ICICI Prudential Ultra Short Term - Direct Plan - Growth

200

IDBI Short Term Bond Fund - Growth

IDFC Super Saver Income Fund - Short Term-Direct
Plan-Growth
IDFC Arbitrage Fund - Direct Plan - Dividend

IDFC - Super Saver Income Fund - Medium Term Growth

IDFC - Super Saver Income Fund - Short Term - Growth

IDFC Banking Debt Fund - Regular Plan - Growth

IDFC Cash Fund - Growth - (Regular Plan)

275

160

319

300

500

305

485

180

100

725

250

625

100

194

Reliance Industries Limited

Annual Report 2013-14

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02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

195

Notes on Financial Statements for the Year ended 31st March, 2014

As at
31st March, 2014

As at
31st March, 2013

21,48,65,792
(-)
-
(23,42,26,669)
8,15,59,748
(-)
2,50,000
(-)
-
(10,38,13,700)
61,49,62,892
(46,01,17,659)
-
(11,10,88,159)
4,50,68,027
(-)
19,71,60,883
(-)
1,36,85,132
(-)
13,40,05,771
(8,84,33,460)
10,68,70,464
(-)
-
(7,51,00,293)
16,54,740
(-)
7,21,37,997
(-)
10,75,21,101
(-)
10,76,394
(1,17,585)
-
(4,70,53,586)
1,62,107
(-)
-
(12,02,16,390)
-
(13,27,54,784)
10,68,81,070
(-)
17,98,180
(18,67,562)
-
(52,63,28,065)
-
(1,90,032)

IDFC Money Manager Fund- Investment Plan-Growth-
Direct Plan
IDFC Super Saver Income Fund -Medium Term - Plan
B - Growth
IDFC Super Saver Income Fund Short Term Plan -
Growth-(Regular Plan)
Indiabulls Short Term Fund - Direct Plan - Growth
Option
J P Morgan India Short term Income Fund - Growth

J P Morgan India Treasury Fund - Bonus

JM High Liquidity Fund - Bonus

JM Money Manager Fund - Super Plan - Bonus

JM Money Manager Fund - Super Plus Plan - Bonus

JM Money Manager Fund Super Plan - Growth

Kotak Bond Short Term Plan - Growth

Kotak Equity Arbitrage Fund - Dividend

L & T - Short Term Opportunities Fund - Growth

L&T Cash Bonus Liquid Fund

L&T Floating Rate Fund - Growth

L&T Triple Ace Bond Fund - Bonus

LIC Nomura MF Liquid Fund - Growth

Morgan Stanley Short Term Bond Fund - Institutional
Plus - Growth
Principal Bank CD Fund - Growth

Reliance Income Fund - Growth Plan - Bonus

Religare Active Income Fund - Growth

Religare Invesco Arbitrage - Bonus

Religare Invesco Short Term Fund - Growth

SBI Dynamic Bond Fund - Growth

SBI Premier Liquid Fund - Growth

400

200

629

199

304

115

169

133

250

115

295

285

125

700

109

185

131

175

285

725

196

Reliance Industries Limited
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02-33

34-164

165-270

271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

197

Notes on Financial Statements for the Year ended 31st March, 2014

As at
31st March, 2014

As at
31st March, 2013

36,08,46,691
(18,37,26,275)
6,20,51,677
(4,32,75,524)
17,81,54,863
(-)
17,58,87,636
(-)
-
(3,02,49,315)
9,57,31,798
(-)
-
(9,21,73,180)
-
(1,94,65,573)
36,10,159
(37,23,783)
-
(1,90,537)
35,25,25,179
(30,35,68,335)
-
(20,30,859)

SBI Short Term Debt Fund - Growth

Sundaram Flexible Fund Short - Term Plan - Growth

Sundaram Flexible Fund Short Term Plan - Bonus

Sundaram Money Fund Direct Plan - Bonus

Sundaram Monthly Income Plan Bonus

487

121

175

272

Sundaram Select Debt Short Term Asset Plan - Bonus

100

Tata Income Fund Plan A - Appreciation - Bonus

Tata Short Term Bond Fund Plan A - Growth

UTI Floating Rate Fund - Growth

UTI Money Market Fund - Growth

UTI Short Term Income Fund - Institutional Plan -
Growth
UTI Treasury Advantage Fund - Institutional Plan

Investments in Treasury Bills - Quoted

Investments in Commercial Paper - Unquoted

Housing Development Finance Corporation Limited

Investment in Certificate of Deposits - Unquoted
Andhra Bank
Canara Bank
Central Bank of India
Indian Bank
Oriental Bank of Commerce
State Bank of Patiala
UCO Bank
Union Bank of India

Total Current Investments

Aggregate amount of quoted investments

Market Value of quoted investments

Aggregate amount of unquoted investments

235

700

400

250

10,626

13,186

369

-
-
-
-
-
-
-
-

1,430
33,370

20,590

21,655

12,780

-
28,366

14,880

15,460

13,486

715

518

9
44
187
287
263
71
478
91

196

Reliance Industries Limited

Annual Report 2013-14

Growth is Life...

02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

197

Notes on Financial Statements for the Year ended 31st March, 2014

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)

Outstanding for a period exceeding six months
Others
TOTAL

15. CASH AND BANK BALANCES

Cash and cash equivalents:

Cash on hand
Bank Balances:

In current accounts*
In deposit **

Sub-total

Other bank balances

In deposit #

Sub-total
TOTAL

As at
31st March, 2014
7,309
16,145
6,546
10,071
2,789
72
42,932

As at
31st March, 2014
65
10,599
10,664

(` in crore)

As at
31st March, 2013
7,882
13,820
6,361
10,819
3,794
53
42,729

(` in crore)

As at
31st March, 2013
41
11,839
11,880

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

996
32,207
33,224

3,400
3,400
36,624

740
48,792
49,547

-
-
49,547

Includes unclaimed dividend of ` 175 crore (Previous Year ` 152 crore).
Includes deposits of ` 1 crore (Previous Year ` 13,173 crore) with maturity of more than 12 months.
Deposits of ` 3,400 crore (Previous Year ` NIL) are given as lien against Short Term Borrowings.

15.1 Cash and cash equivalents includes deposits maintained by the Company with banks, which can be withdrawn by the

Company at any point of time without prior notice or penalty on the principal.

16. SHORT TERM LOANS AND ADVANCES

(Unsecured and Considered Good)

Loans and Advances to Related Parties
(Refer Note No. 31)
Balance with Customs, Central Excise Authorities
Deposits
Others#
TOTAL

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

4,366

2,727
681
3,503
11,277

3,674

2,549
399
4,352
10,974

Includes primarily Interest Receivable on Fixed Deposits with Banks, Advance to sundry creditors.

198

Reliance Industries Limited
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02-33

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165-270

271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

199

Notes on Financial Statements for the Year ended 31st March, 2014

17. OTHER CURRENT ASSETS

Interest accrued on Investment
TOTAL

18. SALE OF PRODUCTS

Particulars of Sale of products

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

Other non operating income *

TOTAL

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

466
466

2013-14

2,97,746

96,383

6,055

1,016

4,01,200

2013-14

480
480

(` in crore)

2012-13

2,73,790

88,108

8,173

950

3,71,021

(` in crore)

2012-13

892

460

4,893

6,472

6,245

1,234

424

2,348

8,936

1,658

7,998

(` in crore)

442

1,025

5,005

1,716

632

* Other non operating income includes income from finance lease of ` 6,85,777 (Previous Year ` 1 crore).

20. COST OF MATERIALS CONSUMED

(` in crore)

2013-14
% of Consumption

(` in crore)

2012-13
% of Consumption

Imported

Indigenous

TOTAL

2,95,338

33,975

3,29,313

89.68

10.32

100.00

2,77,824

28,303

3,06,127

20.1 Particulars of Materials Consumed

Particulars

Crude Oil

Others

TOTAL

2013-14

2,98,950

30,363

3,29,313

90.75

9.25

100.00

(` in crore)

2012-13

2,79,316

26,811

3,06,127

198

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199

Notes on Financial Statements for the Year ended 31st March, 2014

21. CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-PROCESS AND STOCK-IN-TRADE

Inventories (at close)

Finished Goods / Stock-in-Trade

Stock-in-Process

Inventories (at commencement)

Finished Goods / Stock-in-Trade

Stock-in-Process

Less: Capitalised during the year

Add: On Amalgamation (Refer Note No. 33)

TOTAL

22. EMPLOYEE BENEFITS EXPENSE

Particulars

Salaries and wages

Contribution to provident and other funds

Staff welfare expenses

TOTAL

10,143

6,546

10,872

6,361

17,233

132

2013-14

(` in crore)

2012-13

10,872

6,361

16,689

17,233

7,998

5,274

13,272

-
644

17,101

412

2013-14

2,877

233

260

3,370

13,916

(3,317)

(` in crore)

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 :

Particulars

Employer’s Contribution to Provident Fund

Employer’s Contribution to Superannuation Fund

Employer’s Contribution to Pension Scheme

2013-14

2012-13

100

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 Compensated
Absences is recognised in the same manner as gratuity.

200

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201

Notes on Financial Statements for the Year ended 31st March, 2014

Reconciliation of opening and closing balances of Defined Benefit Obligation

Defined Benefit obligation at beginning of the year

On Amalgamation (Refer Note No. 33)

Current Service Cost

Interest Cost

Actuarial (gain) / loss

Benefits paid

Defined Benefit obligation at year end

(` in crore)

Gratuity
(Funded)

Compensated Absences
(Unfunded)

2013-14

2012-13

2013-14

2012-13

500

(16)

(35)

521

436

(29)

500

128

(18)

189

137

(53)

128

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

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

(` in crore)

Gratuity
(Funded)

2013-14

2012-13

503

(35)

521

394

(29)

503

Gratuity
(Funded)
As at 31st March

Compensated Absences
(Unfunded)
As at 31st March

(` in crore)

2014

521

2013

503

500

(3)

2014

189

2013

128

(` in crore)

Gratuity
(Funded)

Compensated Absences
(Unfunded)

2013-14

2012-13

2013-14

2012-13

(39)

(19)

(34)

200

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201

Notes on Financial Statements for the Year ended 31st March, 2014

Investment Details :

GOI Securities

Public Securities
State Government Securities
Insurance Policies
Others (including bank balances)

VI) Actuarial assumptions

Mortality Table

Discount rate (per annum)
Expected rate of return on plan assets (per annum)
Rate of escalation in salary (per annum)

As at

31st March, 2014
% Invested

` in crore

As at
31st March, 2013

` in crore

% Invested

21
8
464
4
521

4.64

4.08
1.52
89.0
0.76
100.00

23
8
442
1
503

5.70

4.60
1.68
87.84
0.18
100.00

Gratuity
(Funded)

Compensated Absences
(Unfunded)

2013-14
2006-08
(Ultimate)
8%
8%
6%

2012-13
1994-96
(Ultimate)
8%
8%
6%

2013-14
2006-08
(Ultimate)
8%
-
6%

2012-13
1994-96
(Ultimate)
8%
-
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.

VII) Amounts recognised in current year and previous four years

(` in crore)

Particular
Gratuity
Defined benefit obligation
Fair value of plan assets
(Surplus) / Deficit in the plan
Actuarial (gain) / loss on plan obligation
Actuarial gain / (loss) on plan assets

2014
521
521
-
(16)
3

As at 31st March

2013
500
503
(3)
26
10

2012
436
394
42
17
2

2011
383
327
56
40
2

2010
301
269
32
28
6

VIII) The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2013-14.

22.2 The Company had announced Voluntary Separation Scheme (VSS) for the employees of Silvassa manufacturing division
during the year. A sum of ` 31 crore (Previous Year ` NIL) 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
* Interest Expenses are net of Interest Capitalised of ` 701 crore (Previous Year ` 385 crore) (Refer Note No.9.5)

3,206

2013-14
1,867
14
1,325

(` in crore)
2012-13
2,152
16
868

3,036

202

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203

Notes on Financial Statements for the Year ended 31st March, 2014

24. DEPRECIATION AND AMORTISATION EXPENSE

Depreciation and Amortisation (Refer Note No. 9)

Less: Transferred from revaluation reserve
(Refer Note No. 9.7)
Less: Transferred from general reserve
(Refer Note No. 9.7)
TOTAL

25. 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 (Previous Year ` 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

2013-14

10,634

1,055

790

8,789

2013-14

16,584

6,782

4,446
10,153
1,288

23
786
(111)
(2)
1

5,119
939
724

787
316
74
647
108
237
131
18
57
595

(` in crore)

2012-13

11,537

2,072

9,465

(` in crore)

2012-13

13,223

6,672

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

Less: Transferred to Project Development Expenditure
TOTAL

2,970
715
25,621

3,047
98
22,844

Excise Duty shown under expenditure represents the aggregate of excise duty borne by the Company and difference
between excise duty on opening and closing stock of finished goods.

Includes write off of Investments of ` 25 crore (Previous Year ` NIL).

202

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203

Notes on Financial Statements for the Year ended 31st March, 2014

25.1 Value of Stores, Chemicals and Packing Materials Consumed :

Imported

Indigenous

TOTAL

25.2 Payment to Auditors as :

(a) Auditor:

Statutory Audit Fees

Tax Audit Fees

(b) Certification and Consultation Fees

(c)

Cost Audit Fees

TOTAL

26. VALUE OF IMPORTS ON CIF BASIS IN RESPECT OF

Raw Materials and Stock-in-Trade

Stores, Chemicals and Packing Materials

Capital goods

27. EXPENDITURE IN FOREIGN CURRENCY :

Oil and Gas Activity

Repairs to Machinery
(Includes ` 4 crore for SEZ units)
Repairs to Building ` 8,45,220 (Previous Year
` 8,41,593)
Employee Benefits Expense
(Includes ` 22,76,702 for SEZ units)
Sales Promotion Expenses
(Includes ` 1 crore for SEZ units)
Brokerage and Commission
(Includes ` 4 crore for SEZ units)
Ocean Freight (Includes ` 558 crore for SEZ units)
Warehousing and Distribution Expenses
(Includes ` 1,255 crore for SEZ units)
Insurance (Includes ` 17,64,247 for SEZ units)
Rent

Rates & Taxes
Other Repairs (Includes ` 8 crore for SEZ units)

2013-14
% of
Consumption
41.46

58.54

100.00

` in crore

1,843

2,603

4,446

2012-13
% of
Consumption
45.41

54.59

100.00

` in crore

1,725

2,074

3,799

2013-14

3,02,630

3,719

4,218

2013-14

3,308

220

1,234

1,598

(` in crore)

2012-13

(` in crore)

2012-13

2,81,719

3,260

2,204

(` in crore)
2012-13

1,565

1,328

1,487

204

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205

Notes on Financial Statements for the Year ended 31st March, 2014

Travelling Expenses (Includes ` 35,87,730 for SEZ units)
Professional Fees
(Includes ` 27 crore for SEZ units)
Charity and Donations

Labour Processing, Production Royalty and Hire Charges
(Includes ` 17,08,131 for SEZ units)
Bank Charges (Includes ` 8 crore for SEZ units)
General Expenses
(Includes ` 55 crore for SEZ units)
Interest Expenses
(Includes ` 373 crore for SEZ units)

28. EARNINGS IN FOREIGN EXCHANGE

FOB value of exports [Excluding captive transfers to
Special Economic Zone of ` 16,861 crore (Previous Year
` 21,480 crore)]
Interest

Others

2013-14

144

153

(` in crore)
2012-13

179

114

1,380

1,501

2013-14
2,61,118

243

(` in crore)

2012-13
2,27,883

207

29. REMITTANCE IN FOREIGN CURRENCY ON ACCOUNT OF DIVIDEND

The Company has paid dividend in respect of shares held by Non-Residents on repatriation basis. This inter-alia includes
portfolio investment and direct investment, where the amount is also credited to Non-Resident External Account (NRE
A/c). The exact amount of dividend remitted in foreign currency cannot be ascertained. The total amount remittable in
this respect is given herein below:

2013-14 (Final Dividend)

2012-13 (Final Dividend)

Number of Non Resident Shareholders

Number of Equity Shares held by them

(i)

(ii)

Amount of Dividend Paid (Gross) ( ` in Crore)

Tax Deducted at Source

(iii) Year to which dividend relates

30. EARNINGS PER SHARE (EPS)

Net Profit after tax as per Statement of Profit
and Loss attributable to Equity Shareholders
(` in crore)

ii) Weighted Average number of equity shares
used as denominator for calculating EPS

iii)

iv)

Basic and Diluted Earnings per share (`)

Face Value per equity share (`)

37,150

58,20,62,860

524

2012-13

2013-14

21,984

40,266

57,01,32,298

485

2011-12

2012-13

21,003

3,23,06,12,815

3,23,99,64,480

68.05

10.00

64.82

10.00

204

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205

Notes on Financial Statements for the Year ended 31st March, 2014

31. 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:

Name of the Related Party

Relationship

Sr.
No.
1
2
3
4
5

7
8

14
15

9
10
11
12
13

Reliance Industrial Investments and Holdings Limited
Reliance Ventures Limited
Reliance Strategic Investments Limited
Reliance Industries (Middle East) DMCC
Reliance Retail Limited
(Erstwhile, amalgamated with Reliance Fresh Limited w.e.f. 01.04.2012)
Reliance Retail Limited
(Formerly known as Reliance Fresh Limited)
Reliance Haryana SEZ Limited
Retail Concepts and Services (India) Limited
(amalgamated with Reliance Financial Distribution and Advisory Services Limited
w.e.f. 01.04.2012)
Reliance Retail Insurance Broking Limited
Reliance Dairy Foods Limited
Reliance Exploration & Production DMCC
Reliance Retail Finance Limited
RESQ Limited
(amalgamated with Erstwhile Reliance Fresh Limited w.e.f. 01.04.2012)
Reliance Retail Ventures Limited #
Reliancedigital Retail Limited
(amalgamated with Erstwhile Reliance Trends Limited w.e.f. 01.04.2012)
Reliance Financial Distribution and Advisory Services Limited
16
17
RIL (Australia) Pty Ltd
18 Gapco Kenya Limited
19 Gapco Rwanda Limited
20 Gapco Tanzania Limited
21 Gapco Uganda Limited
22 Gapoil (Zanzibar) Limited
23 Gulf Africa Petroleum Corporation
Transenergy Kenya Limited
24
Recron (Malaysia) Sdn Bhd
25
Reliance Payment Solutions Limited
26
Reliance Brands Limited
27
Reliance Footprint Limited
28
(amalgamated with Erstwhile Reliance Trends Limited w.e.f. 01.04.2012)
Reliance Trading Limited ##
Reliance Lifestyle Holdings Limited
Reliance Universal Ventures Limited
(amalgamated with Reliance Industrial Investments and Holdings
Limited w.e.f. 01.10.2013)

29
30
31

32 Delight Proteins Limited
33

Reliance Autozone Limited
(amalgamated with Erstwhile Reliance Fresh Limited w.e.f. 01.04.2012)
Reliance F&B Services Limited

# Formerly knows as Reliance Commercial Associates Limited
## Formerly knows as Reliance Trends Limited

Subsidiary Companies

206

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Notes on Financial Statements for the Year ended 31st March, 2014

Name of the Related Party

Relationship

Sr.
No.
35

37
38

40
41

Reliance Gems and Jewels Limited
(amalgamated with Erstwhile Reliance Trends Limited w.e.f. 01.04.2012)
Reliance Integrated Agri Solutions Limited
(amalgamated with Reliance Financial Distribution and Advisory Services Limited
w.e.f. 01.04.2012)
Strategic Manpower Solutions Limited
Reliance Agri Products Distribution Limited
(amalgamated with Reliance Financial Distribution and Advisory Services Limited
w.e.f. 01.04.2012)
Reliance Digital Media Limited
(amalgamated with Erstwhile Reliance Fresh Limited w.e.f. 01.04.2012)
Reliance Food Processing Solutions Limited
Reliance Home Store Limited
(amalgamated with Reliance Financial Distribution and Advisory Services Limited
w.e.f. 01.04.2012)
Reliance Leisures Limited
(amalgamated with Erstwhile Reliance Trends Limited w.e.f. 01.04.2012)
Reliance Loyalty & Analytics Limited
(amalgamated with Reliance Financial Distribution and Advisory Services Limited
w.e.f. 01.04.2012)
Reliance Retail Securities and Broking Company Limited
(amalgamated with Reliance Financial Distribution and Advisory Services Limited
w.e.f. 01.04.2012)
Reliance Supply Chain Solutions Limited
(amalgamated with Reliance Financial Distribution and Advisory Services Limited
w.e.f. 01.04.2012)
Reliance Trade Services Centre Limited
(amalgamated with Reliance Financial Distribution and Advisory Services Limited
w.e.f. 01.04.2012)
47
Reliance Vantage Retail Limited
48 Wave Land Developers Limited
49
50
51
52
53
54
55
56
57
58
59
60

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
(amalgamated with Reliance Financial Distribution and Advisory Services Limited
w.e.f. 01.04.2012)
Reliance Polymers (India) Limited
(amalgamated with Reliance Industrial Investments and Holdings
Limited w.e.f. 01.10.2013)
Reliance Polyolefins Limited

Subsidiary Companies

206

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207

Notes on Financial Statements for the Year ended 31st March, 2014

Name of the Related Party

Relationship

Sr.
No.
63
64
65
66
67
68

69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85

Reliance Aromatics and Petrochemicals Limited
Reliance Energy and Project Development Limited
Reliance Chemicals Limited
Reliance Universal Enterprises Limited
Reliance Review Cinema Limited
Reliance Replay Gaming Limited
(amalgamated with Erstwhile Reliance Fresh Limited w.e.f. 01.04.2012)
Reliance Nutritious Food Products Limited*
RIL USA Inc.
Reliance Commercial Land & Infrastructure Limited
Reliance Corporate IT Park Limited
Reliance Eminent Trading & Commercial Private Limited
Reliance Progressive Traders Private Limited
Reliance Prolific Traders Private Limited
Reliance Universal Traders Private Limited
Reliance Prolific Commercial Private Limited
Reliance Comtrade Private Limited
Reliance Ambit Trade Private Limited
Reliance Petro Marketing Limited
LPG Infrastructure (India) Limited
Reliance Corporate Centre Limited
Reliance Convention and Exhibition Centre Limited
Central Park Enterprises DMCC
Reliance International B. V.
(Liquidated w.e.f. 18.03.2014)
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

86
87
88
89
90
91
92
93
94
95
96 Mark Project Services Private Limited
97
98
99
100 Reliance Industries Investment and Holding Limited
101 Reliance Office Solutions Private Limited

Reliance Energy Generation and Distribution Limited
Reliance Marcellus II LLC
Reliance Security Solutions Limited

(amalgamated with Reliance Financial Distribution and Advisory Services Limited
w.e.f. 01.04.2012)

102 Reliance Style Fashion India Private Limited
103 GenNext Innovation Ventures Limited

* Formerly known as Two Sisters Foods India Limited

Subsidiary Companies

208

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209

Notes on Financial Statements for the Year ended 31st March, 2014

Name of the Related Party

Sr.
No.
104 Reliance Home Products Limited

(amalgamated with Reliance Financial Distribution and Advisory Services Limited
w.e.f. 01.04.2012)

105 Infotel Telecom Limited
106 Reliance Styles India Limited
107 Rancore Technologies Private Limited
108 Omni Symmetry LLC

(amalgamated with Reliance Jio Infocomm USA Inc w.e.f. 31.03.2014)

109 Reliance Sibur Elastomers Private Limited
110 Surela Investment and Trading Private Limited
111 Model Economic Township Limited
112 Delta Corp East Africa Limited
113 Delta Square Limited

(Desubsidiarized w.e.f. 20.08.2013)

114 Kaizen Capital LLP
115 Affinity Names Inc
116 Reliance USA Gas Marketing LLC
117 Reliance Aerospace Technologies Limited
118 Reliance Gas Pipelines Limited
119 Achman Commercial Private Limited
120 Reliance Jio Infocomm Pte Limited
121 Reliance do Brasil Industria e Comercio de Produtos Texteis, Quimicos,

Relationship

Subsidiary Companies

Petroquimicos e Derivados Ltda.
122 Reliance Jio Electronics Private Limited
123 Reliance Jio Infocomm USA Inc
124 Reliance Jio Infocomm UK Limited
125 Reliance Clothing India Private Limited
126 Reliance Agri Ventures Private Limited
127 Reliance World Trade Private Limited
128 Reliance Marcellus Holding LLC
129 Reliance Industrial Infrastructure Limited
130 Reliance Europe Limited
131 Reliance LNG Limited
132 Indian Vaccines Corporation Limited
133 Gujarat Chemical Port Terminal Company Limited
134 Reliance Utilities and Power 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

Associates

Key Managerial Personnel

Enterprises over which Key
Managerial Personnel are able to
exercise significant influence

208

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Notes on Financial Statements for the Year ended 31st March, 2014

ii) Transactions during the year with related parties :

Sr.
No.

Nature of Transactions (Excluding
reimbursements)

Subsidiaries

Associates

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

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

19.

Investment written off

Balance as at 31st March, 2014
20.

Investments

21. Trade Receivables

2,063
917
22,620
8,317
7,179
11,498
-
-
3,910
7,546
28,394
26,166
1,068
842
2,575
2,319
-
-
-
-
16
6
-
-
171
21
-
-
592
760
29
41
-
-
14
16
25
-

32,402
16,986
4,620
5,977

44
43
-
-
-
-
7
2
36
27
403
336
8
9
184
167
1,466
1,325
523
408
-
-
-
-
2,885
2,845
8
-
51
56
274
258
-
-
-
-
-
-

2,085
2,085
39
30

Key
Managerial
Personnel
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
47
44
-
-
-
-
-
-
-
-
-
-
-
-
-
-

-
-
-
-

(` in crore)

Others

TOTAL

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
529
218
-
-
-
-

-
-
-
-

2,107
960
22,620
8,317
7,179
11,498
7
2
3,946
7,573
28,797
26,502
1,076
851
2,759
2,486
1,466
1,325
523
408
16
6
47
44
3,056
2,866

8
-
643
816
303
299
529
218
14
16
25
-

34,487
19,071
4,659
6,007

210

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165-270

271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

211

Notes on Financial Statements for the Year ended 31st March, 2014

Sr.
No.

Nature of Transactions (Excluding
reimbursements)

Subsidiaries

Associates

22. Capital Advance

23.

Loans & Advances

24. Deposits

25. Trade and other payables

26. Finance Lease Obligations

27. Financial Guarantees

28. Performance Guarantees

-
-
26,092
21,973
-
-
380
540
146
167
30,993
29,867
159
134

8
2
14
15
1,499
1,463
309
252
1
2
1,315
1,213
114
1

Key
Managerial
Personnel
-
-
-
-
-
-
-
-
-
-
-
-
-
-

(` in crore)

Others

TOTAL

-
-
-
-
-
-
-
-
-
-
-
-
-
-

8
2
26,106
21,988
1,499
1,463
689
792
147
169
32,308
31,080
273
135

Note :
Figures in italic represents Previous Year’s amount.

Disclosure in Respect of Material Related Party Transactions during the year :

Particulars

Purchase of Fixed Assets
Reliancedigital Retail Limited
Reliance Corporate IT Park Limited
Reliance Footprint Limited
Reliance Haryana SEZ Limited
Reliance Gas Transportation Infrastructure Limited
Reliance Industrial Infrastructure Limited
Reliance Ports and Terminals Limited
Reliance Retail Limited
(Formerly known as Reliance Fresh Limited)
Reliance Security Solutions Limited
Gujarat Chemical Port Terminal Company Limited

Purchase / Subscription of Investments
RIL (Australia) Pty Ltd
Reliance Energy Generation and Distribution Limited
Reliance Global Business B.V.
Reliance Jio Infocomm Limited
Reliance Retail Ventures Limited
(Formerly known as Reliance Commercial Associates Limited)

Sale / Transfer of Investments
Reliance Industrial Investments and Holdings Limited
Reliance Universal Ventures Limited

Relationship

2013-14

(` in crore)
2012-13

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Associate
Subsidiary

Subsidiary
Associate

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary

Subsidiary
Subsidiary

-
2,031
-
-
4
3
36
31

-
1

4
865
1
43
-
2
41
1

3
-

-
1
222
22,397
-

3
-
-
2,647
5,667

-
-

1,544
7,800

210

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Financial Statements

271-284
Shareholders' Referencer

211

Notes on Financial Statements for the Year ended 31st March, 2014

Particulars

Redemption of Investments
Reliance Exploration & Production DMCC
Reliance Global Business B.V.
Reliance Industries (Middle East) DMCC
Reliance Jio Infocomm Limited
Reliance Netherlands B.V.

Capital Advance Given
Reliance Industrial Infrastructure Limited
Reliance Utilities and Power Private Limited

6 Net Loans and Advances, Deposits Given/ (Returned)

Reliance Brands Limited
Reliance Corporate IT Park Limited
Reliance Energy Generation and Distribution Limited
Reliance Exploration & Production DMCC
Reliance Gas Pipelines Limited
Reliance Industrial Investments and Holdings Limited
Reliance Prolific Traders Private Limited
Reliance Retail Limited
Reliance Retail Limited
(Formerly known as Reliance Fresh Limited)
Reliance Strategic Investments Limited
Reliance Ventures Limited
Gujarat Chemicals Port Terminal Company Limited

Revenue from Operations
Gapco Kenya Limited
Gapco Tanzania Limited
LPG Infrastructure (India) Limited
Recron (Malaysia) Sdn Bhd
Reliance Commercial Land & Infrastructure Limited
Reliance Commercial Dealers Limited
Reliance Corporate IT Park Limited
Reliancedigital Retail Limited
Reliance Eminent Trading & Commercial Private Limited
Reliance Gems and Jewels Limited
Reliance Gas Transportation Infrastructure Limited
Reliance Industrial Investments and Holdings Limited
Reliance Jio Infocomm Limited
Reliance Petro Marketing Limited
Reliance Ports and Terminals Limited
Reliance Progressive Traders Private Limited
Reliance Prolific Traders Private Limited

Relationship

2013-14

(` in crore)
2012-13

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary

Associate
Associate

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary

Subsidiary
Subsidiary
Associate

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Subsidiary
Subsidiary
Subsidiary
Associate
Subsidiary
Subsidiary

-
32
-
7,147
-

1,673
49
431
-
1

2
5

2
-

(11)
945
(1)
7
33
1,635
-
-
817

471
14
36

9,898
1,972
458
2,685
1
12
12
-
-
-
69
948
546
156
2
-
-

11
-
-
71
-
7,684
(523)
303
-

-
-
27

6,559
2,937
392
367
-
-
2
4
2
475
86
679
408
77
6
5
1

212

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271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

213

Notes on Financial Statements for the Year ended 31st March, 2014

Particulars

Reliance Retail Limited
(Formerly known as Reliance Fresh Limited)
Reliance Trading Limited
(Formerly known as Reliance Trends Limited)
Reliance Utilities and Power Private Limited
RIL USA Inc.
Gujarat Chemical Port Terminal Company Limited

8 Other Income

Gapco Kenya Limited
Gapco Tanzania Limited
Gapco Uganda Limited
Recron (Malaysia) Sdn Bhd
Reliance Corporate IT Park Limited
Reliance Europe Limited
Reliance Exploration & Production DMCC
Reliance Holding USA Inc.
Reliance Industrial Investments and Holdings Limited
Reliance Jio Infocomm Limited
Reliance Marcellus LLC
Reliance Ports and Terminals Limited
Reliance Retail Limited
(Formerly known as Reliance Fresh Limited)
Reliance Retail Limited
Reliance Strategic Investments Limited
Reliance Utilities and Power Private Limited
RIL USA Inc.
Reliance Ventures Limited

Purchases / Material Consumed
Recron (Malaysia) Sdn Bhd
Reliance Footprint Limited
Reliance Industries (Middle East) DMCC
Reliance Industrial Infrastructure Limited
Reliance Petro Marketing Limited
Reliance Ports and Terminals Limited
Gujarat Chemical Port Terminal Company Limited

10 Electric Power, Fuel and Water

Relationship

Subsidiary

Associate
Subsidiary
Associate

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Subsidiary

Subsidiary
Subsidiary
Associate
Subsidiary
Subsidiary

Subsidiary
Subsidiary
Subsidiary
Associate
Subsidiary
Associate
Associate

2013-14

(` in crore)
2012-13

567

320
11,149
-

243
14,242
1

2
6
1
5
26
4
5
204
557
48
-
1
66

-
35
3
12
98

-
-
2,550
13
25
167
4

2
2
1
6
1
5
2
122
371
41
3
1
-

72
86
3
25
108

1
2
2,314
12
2
154
1

Reliance Utilities and Power Private Limited

Associate

1,466

1,325

11 Hire Charges

Gujarat Chemical Port Terminal Company Limited
Reliance Industrial Infrastructure Limited
Reliance Gas Transportation Infrastructure Limited
Reliance Ports and Terminals Limited

Associate
Associate
Associate
Associate

86
26
185
226

57
30
196
125

212

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Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

213

Notes on Financial Statements for the Year ended 31st March, 2014

Particulars

12 Employee Benefit Expense

Reliance F&B Services Limited
Reliance People Serve Limited
Reliance Retail Limited
(Formerly known as Reliance Fresh Limited)

13 Payment To Key Managerial Personnel

Shri. Mukesh D Ambani
Shri. Nikhil R. Meswani
Shri. Hital R. Meswani
Shri PMS Prasad
Shri P.K.Kapil

14 Sales & Distribution Expenses
Recron (Malaysia) Sdn Bhd
Reliance Commercial Land & Infrastructure Limited
Reliance Polyolefins Limited
Reliance Ports and Terminals Limited
Gujarat Chemical Port Terminal Company Limited

15 Rent

Relationship

2013-14

(` in crore)
2012-13

Subsidiary
Subsidiary
Subsidiary

Key Managerial Personnel
Key Managerial Personnel
Key Managerial Personnel
Key Managerial Personnel
Key Managerial Personnel

1
4
11

15
12
12
6
2

-
3
3

15
11
11
5
2

Subsidiary
Subsidiary
Subsidiary
Associate
Associate

171
-
-
2,869
16

-
5
16
2,835
10

Reliance Industrial Infrastructure Limited

Associate

16 Professional Fees

Indiawin Sports Private Limited
Reliance Corporate IT Park Limited
Reliance Europe Limited
Reliance Industrial Infrastructure Limited
Reliance Security Solutions Limited

17 General Expenses

Indiawin Sports Private Limited
Reliance Commercial Dealers Limited
Reliancedigital Retail Limited
Reliance Gems and Jewels Limited
Reliance Retail Limited
(Formerly known as Reliance Fresh Limited)
Reliance Trading Limited
(Formerly known as Reliance Trends Limited)

18 Donations

Dhirubhai Ambani Foundation
Hirachand Govardhandas Ambani Public Charitable Trust
Jamnaben Hirachand Ambani Foundation
HNH Trust and HNH Research Society
Reliance Foundation

Subsidiary
Subsidiary
Associate
Associate
Subsidiary

Subsidiary
Associate
Subsidiary
Subsidiary
Subsidiary

Subsidiary

Others
Others
Others
Others
Others

25
567
32
19
-

12
274
-
-
17

-
1
8
-
520

23
736
37
19
1

12
258
1
7
14

1
1
8
2
206

214

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271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

215

Notes on Financial Statements for the Year ended 31st March, 2014

Particulars

19 Finance Cost

Reliance Corporate IT Park Limited

20 Investment Written Off
RIL (Australia) Pty Ltd

Balances as at 31st March, 2014

21 Loans & Advances

Gapco Kenya Limited
Gapco Tanzania Limited
Gapco Uganda Limited
Recron (Malaysia) Sdn Bhd
Reliance Brands Limited
Reliance Corporate IT Park Limited
Reliance Energy Generation and Distribution Limited
Reliance Europe Limited
Reliance Exploration & Production DMCC
Reliance Gas Pipelines Limited
Reliance Industrial Investments and Holdings Limited
Reliance Holding USA Inc.
Reliance Retail Limited
Reliance Retail Limited
(Formerly known as Reliance Fresh Limited)
Reliance Strategic Investments Limited
Reliance Ventures Limited
Gujarat Chemical Port Terminal Company Limited

22 Deposits

Gujarat Chemical Port Terminal Company Limited
Reliance Ports and Terminals Limited
Reliance Utilities and Power Private Limited

Relationship

2013-14

(` in crore)
2012-13

Subsidiary

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary

Subsidiary
Subsidiary
Associate

Associate
Associate
Associate

2
2
1
1
-
969
3,263
8
80
33
19,443
35
-
1,745

503
14
6

99
1,050
350

2
2
1
6
11
3
3,265
8
72
-
17,642
-
928
-

-
42
6

63
1,050
350

32.1 (a) Disclosure of the Company’s Interest in Oil and Gas Joint Ventures (Jointly Controlled Assets):

Sr.
No.
1

Name of the Fields in the
Joint Ventures
Panna Mukta

Company's
% Interest
30%

(30%)

5
6

Tapti

30%

(30%)

NEC - OSN - 97/2

60%

(60%)

KG - DWN - 98/3

60%

(60%)

GS - OSN - 2000/1
KG-DWN-2003/1

90%
60%

(90%)
(60%)

Partners and their Participating Interest (PI)

BG Exploration & Production India Limited - 30% ;
Oil and Natural Gas Corporation Limited - 40%
BG Exploration & Production India Limited - 30% ;
Oil and Natural Gas Corporation Limited - 40%
Niko (NELPIO) Limited - 10% ;
BP Exploration (Alpha) Limited - 30%
Niko (NECO) Limited - 10% ;
BP Exploration (Alpha) Limited - 30%
Hardy Exploration and Production (India) Inc - 10%
Hardy Exploration and Production (India) Inc - 10% ;
BP Exploration (Alpha) Limited - 30%

214

Reliance Industries Limited

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Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

215

Notes on Financial Statements for the Year ended 31st March, 2014

Sr.
No.
7
8
9

Name of the Fields in the
Joint Ventures
CY-PR-DWN-2001/3
CY-DWN-2001/2
CB-ONN-2003/1

Company's
% Interest
70%
70%
70%

(70%)
(70%)
(70%)

Figures in bracket represent Previous Year’s (%) Interest.

(b) Disclosure of the blocks surrendered during the year:

Partners and their Participating Interest (PI)

BP Exploration (Alpha) Limited - 30%
BP Exploration (Alpha) Limited - 30%
BP Exploration (Alpha) Limited - 30%

Sr. No. Name of the Fields

% Interest

Sr. No. Name of the Fields

% Interest

1
2

KG-DWN-2004/4
MN-DWN-2004/1

70%
70%

3
4

MN-DWN-2004/2
KG-DWN-2005/2

70%
50%

32.2 (a) Net Quantities of Company's Interest (on gross basis) in proved reserves and proved developed reserves :

Oil:
Beginning of the year
Revision of estimates
Production
Closing balance for the year

Gas:
Beginning of the year
Revision of estimates
Production
Closing balance for the year

Proved Reserves
(Million MT)
2012-13

2013-14

Proved Developed
Reserves (Million MT)
2012-13
2013-14

2.46
0.47
(0.46)
2.47

3.06
-
(0.60)
2.46

1.82
0.73
(0.46)
2.09

2.42
-
(0.60)
1.82

Proved Reserves
(Million M3*)
2012-13

2013-14

Proved Developed
Reserves (Million M3*)
2012-13
2013-14

97,285
(7,195)
(3,860)
86,230

1,03,958
59
(6,732)
97,285

18,470
834
(3,860)
15,444

25,159
43
(6,732)
18,470

* 1 cubic meter (M3) = 35.315 cubic feet, 1 cubic feet = 1000 BTU and 1 MT = 7.5 bbl

(b)

In case of producing field and fields where development of drilling activities is in progress, the geological and
reservoir simulation are updated as and when new well information is available. In all cases, Reserve evaluation is
carried out at least once in a year.

(c) The Government of India, by its letters dated 2nd May 2012 and 14th November 2013 has communicated that it
proposes to disallow certain costs which the Production Sharing Contract (PSC), relating to Block KG-DWN-98/3
entitles the Company to recover. Based on legal advice received, the Company 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
referred the issue to arbitration and already communicated the same to GoI for the resolution of dispute.

33. The figures for the previous year include figures of Reliance Jamnagar Infrastructure Limited, the wholly owned
subsidiary company engaged in infrastructure development and maintenance developer of the operating Special
Economic Zone, which was 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.

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:

216

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Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

217

Notes on Financial Statements for the Year ended 31st March, 2014

The assets, liabilities, reserves, rights and obligations of erstwhile Reliance Jamnagar Infrastructure Limited 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 Reliance Jamnagar Infrastructure Limited held by the Company have
been cancelled against Share Capital of the amalgamating company and no shares have been issued in pursuance
to the scheme of amalgamation.

c) Amount added on amalgamation to profit and loss account of previous year is inclusive of profit for the period

1st April 2011 till 31st March 2012 and is net of stamp duty paid on amalgamation.

34. CONTINGENT LIABILITIES AND COMMITMENTS

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

(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)

(ii)

Guarantees to Banks and Financial Institutions against credit
facilities extended to third parties
(a)
In respect of Joint Ventures
In respect of others
(b)
Performance Guarantees
(a)
(b)

In respect of Joint Ventures
In respect of others

(iii) Outstanding guarantees furnished to Banks and Financial

Institutions including in respect of Letters of Credits
(a)
(b)

In respect of Joint Ventures
In respect of others

(i)

Liability in respect of bills discounted with Banks (Including
third party bills discounting)
(a)
(b)
(II) Commitments

In respect of Joint Ventures
In respect of others

(A)

Estimated amount of contracts remaining to be executed on capital
account and not provided for:
(a)
(b)

In respect of Joint Ventures
In respect of others

(B) Other commitments

(a) Sales tax deferral liability assigned
(b) Guarantee against future cash calls *

414
1,433

-
32,308

-
290

700
4,843

-
4,970

1,168
25,349

1,563
2,917

-
1,663

-
31,080

-
258

160
5,099

-
3,961

441
7,948

2,345
1,645

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 ` 1,207 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 is considered necessary.

216

Reliance Industries Limited

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Company Overview

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Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

217

Notes on Financial Statements for the Year ended 31st March, 2014

35. FINANCIAL AND DERIVATIVE INSTRUMENTS

a) Derivative contracts entered into by the Company and outstanding as on 31st March, 2014

(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 ` 1,03,772 crore (Previous Year ` 1,27,469 crore). Category wise break up is given below:

Sr.
No.

Particulars

Forward Contract

Currency Swap

Interest rate swap

Option

(ii) For Hedging Commodity related risks :

Category wise break up is given below :

Sr.
No.

Particulars

Forward swaps

Futures

Spreads

Option

As at 31st March, 2014
Amount
(` in Crore)
66,733

(` in crore)
As at 31st March, 2013
Amount
(` in Crore)
89,412

1,772

32,851

2,416

3,319

32,431

2,307

(in Kbbl)
As at 31st March, 2013
Crude oil
purchases

Petroleum
product sales

As at 31st March, 2014
Crude Oil
purchases

Petroleum
product
sales
16,544

6,308

35,456

21,321

7,066

86,016

36,550

7,334

3,794

44,900

16,575

5,488

50,366

23,895

In addition the Company has net margin hedges outstanding for contracts relating to petroleum product
sales of 1,05,627 kbbl (Previous Year 85,168 kbbl).

Foreign Currency exposures that are not hedged by derivative instruments as on 31st March 2014 amounting to
` 64,918 crore (Previous Year ` 71,627 crore). The unhedged exposures are naturally hedged by future foreign
currency earnings and earnings linked to foreign currency.

36. As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes

to Consolidated Financial Statements.

37. The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February 2011 and
21st February 2011 respectively read with General Circular No. 08/2014 dated 4th April 2014 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 and on behalf of the Board

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells LLP
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. B. Jani
Partner

A.R. Shah
Partner

Mumbai
Date : April 18, 2014

Alok Agarwal
Chief Financial Officer

K. Sethuraman
Company Secretary

- Chairman & Managing Director

Executive Directors

Directors

M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai

218

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Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

219

Consolidated Financial Statements & Notes

218

Reliance Industries Limited

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Shareholders' Referencer

219

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), its subsidiaries and jointly controlled
entities (collectively referred to as “the Group”), which
comprise the Consolidated Balance Sheet as at March 31,
2014, 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 the Accounting Standards
notified under the Companies Act, 1956 (the Act) (which
continue to be applicable in respect of Section 133 of
the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs). 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. 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.

4. An audit involves performing procedures to obtain audit
evidence about the amounts and the disclosures in
the consolidated financial statements. The procedures
selected depend on the auditor’s judgment, 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,
but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control. An audit
also
includes evaluating the appropriateness of the
accounting policies used and the reasonableness of the
accounting estimates made by the 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.

OPINION
5.

In our opinion and to the best of our information and
according to the explanations given to us and based on
the 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)

in the case of the Consolidated Balance Sheet, of the
state of affairs of the Group as at March 31, 2014;
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.

(b)

(c)

OTHER MATTERS
6.

Financial statements / consolidated financial statements
of certain subsidiaries which reflect total assets (net) of
` 81,533 crore as at March 31, 2014, total revenue (net)
of ` 52,452 crore and net cash flows amounting to ` 67
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 ` 48,602 crore as at March 31, 2014/
December 31, 2013, total revenues (net) of ` 19,065
crore and net cash flows amounting to ` 384 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 ` 15 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 insofar as it relates to the amounts included
in respect of 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 LLP
Chartered Accountants
(Registration No. 117366W/ W-100018)

For Rajendra & Co.
Chartered Accountants
(Registration No. 108355W)

D. Chaturvedi
Partner
Membership No.: 5611

Mumbai
Date : April 18, 2014

A. B. Jani
Partner
Membership No.: 46488

A. R. Shah
Partner
Membership No.:47166

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Reliance Industries Limited
Consolidated Balance Sheet as at 31st March, 2014

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)
Other Long Term Liabilities
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, 2014

As at
31st March, 2013

(` in crore)

1
2

3
4
5
6

7
8
9
10

11
11
11
11
12
13
14

15
16
17
18
19
20

2,940
1,95,730

2,936
1,79,094

1,98,670
17
959

1,14,041

1,82,030
25
949

83,079

70,960
11,588
-
531

18,362
49,700
23,655
4,557

1,15,156
4,28,843

96,274
3,62,357

98,715
34,772
17,191
32,761
13,979
9,025
-

2,77,774

2,06,443

28,869
54,601
9,750
50,456
10,455
1,783

1,51,069
4,28,843

1,55,914
3,62,357

1,01,019
11,925
807
290

32,792
60,860
17,058
4,446

97,256
44,161
48,646
42,848
26,867
17,996
-

34,458
55,997
9,411
37,984
9,965
3,254

1 to 36

For and on behalf of the Board

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells LLP
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. B. Jani
Partner

A.R. Shah
Partner

Mumbai
Date : April 18, 2014

Alok Agarwal
Chief Financial Officer

K. Sethuraman
Company Secretary

- Chairman & Managing Director

Executive Directors

Directors

M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai

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Reliance Industries Limited
Consolidated Statement of Profit and Loss for the year ended 31st March, 2014
(` in crore)

Note

2013-14

2012-13

INCOME
Revenue from Operations
Sale of Products
Income from Services

Less: Excise Duty / Service Tax Recovered
Net 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) transferred to Minority Interest
Profit for the year (after adjustment for Minority Interest)
Earnings per equity share of face value of ` 10 each
Basic and Diluted (in `)
Significant Accounting Policies
Notes on Financial Statements

23
24
25
26

1 to 36

4,42,581
3,758

4,46,339

11,879

4,06,427
1,965

4,08,392

11,330

4,34,460
9,001
4,43,461

3,46,491
17,091

(560)

5,572
3,836
11,201
31,067
4,14,698
28,763

5,929
286
22,548
(55)
22,493

76.55

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

As per our Report of even date

For and on behalf of the Board

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells LLP
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. B. Jani
Partner

A.R. Shah
Partner

Mumbai
Date : April 18, 2014

Alok Agarwal
Chief Financial Officer

K. Sethuraman
Company Secretary

- Chairman & Managing Director

Executive Directors

Directors

M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai

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Reliance Industries Limited
Consolidated Cash Flow Statement for the year 20 13-14

CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit before tax as per Statement of Profit and Loss

28,763

26,217

2013-14

(` in crore)

2012-13

Adjusted for:

Miscellaneous Expenditure written off

Share in Income of Associates

Net Prior Year Adjustments

Investment written off (net)

Loss on Sale / Discard of Assets (net)

Depreciation and Amortisation Expense

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

CASH FLOW FROM INVESTING ACTIVITIES:

Purchase of Fixed Assets

Sale of Fixed Assets

Purchase of Investments

Sale / Redemption of Investments

Movement in Loans and Advances

Investments in fixed deposits

Interest Income

Dividend Income

Net Cash (used in) Investing Activities

(67)

11,232

1,129

(1,768)

(131)

(5,816)

3,463

7,289

(7,525)

7,608

(90)

11,201

3,272

(2,493)

(175)

(5,907)

3,836

(1,913)

(1,396)

14,339

9,681

38,444

11,030

49,474

(6,213)

43,261

(60,087)

148

(7,65,659)

7,49,849

(426)

(3,624)

6,413

316

(73,070)

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)

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Consolidated Cash Flow Statement for the year 2013-14 (Continued)

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 Financing Activities

Net Increase / (Decrease) in Cash and Cash Equivalents

Opening Balance of Cash and Cash Equivalents

Add: Upon addition of Subsidiaries (` 12,00,000)

50,456

Closing Balance of Cash and Cash Equivalents
(Refer Note No. 18)

2013-14

183

(67)

28,215

(19,835)

13,937

(3,123)

(5,619)

13,713

(16,096)

50,456

34,360

(` in crore)

2012-13

390

(10)

(3,087)

19,182

(10,532)

2,004

(2,949)

(4,626)

(1)

408

9,676

40,780

50,456

40,731

As per our Report of even date

For and on behalf of the Board

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells LLP
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. B. Jani
Partner

A.R. Shah
Partner

Mumbai
Date : April 18, 2014

Alok Agarwal
Chief Financial Officer

K. Sethuraman
Company Secretary

- Chairman & Managing Director

Executive Directors

Directors

M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai

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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:

The financial statements of the Company and its subsidiary companies are combined on a line-by-line basis by
adding together the book values of like items of assets, liabilities, income and expenses, after fully eliminating
intra-group balances and intra-group transactions in accordance with Accounting Standard (AS) 21 - “Consolidated
Financial Statements”

Interest in Joint Ventures have been accounted by using the proportionate consolidation method as per
Accounting Standard (AS) 27 - “Financial Reporting of Interest in Joint Ventures”.

In case of foreign subsidiaries, being non-integral foreign operations, revenue items are consolidated at the
average rate prevailing during the year. All assets and liabilities are converted at rates prevailing at the end of the
year. Any exchange difference arising on consolidation is recognised in the exchange fluctuation reserve.

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.

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.

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”.

The Company accounts for its share in change in net assets of the associates, post acquisition, after eliminating
unrealised profits and losses resulting from transactions between the Company and its associates to the extent of
its share, through its Statement of Profit and Loss to the extent such change is attributable to the associates’ Profit
or Loss through its reserves for the balance, based on available information.

The difference between the cost of investment in the associates and the share of net assets at the time of
acquisition of shares in the associates is identified in the financial statements as Goodwill or Capital Reserve as the
case may be.

As far as possible, the consolidated financial statements are prepared using uniform accounting policies for like
transactions and other events in similar circumstances and are presented in the same manner as the Company’s
separate financial statements.

Investments other than in subsidiaries and associates have been accounted as per Accounting Standard (AS) 13 on “Ac-
counting for Investments”.

C. Other significant accounting policies

These are set out under “Significant Accounting Policies” as given in the Company’s separate financial statements.

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Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.

SHARE CAPITAL

Authorised Share Capital:

500,00,00,000

Equity Shares of ` 10 each

(500,00,00,000)
100,00,00,000

(100,00,00,000)

Preference Shares of ` 10 each

Issued, Subscribed and Paid up:

293,95,47,231
(293,63,08,755)

Equity Shares of ` 10 each fully paid up

Less: Calls in arrears - by others
[` 3,113 (Previous Year ` 3,653)]

TOTAL

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

5,000

1,000

6,000

5,000

1,000

6,000

2,940

2,936

2940
2,940

2,936
2,936

1.1

1.2

1.3

1.4

1,45,94,41,214
(1,45,94,41,214)

Shares were allotted as Bonus Shares in the last five years by capitalisation of Securities Premium
and Reserves.

6,92,52,419
(6,92,52,419)

Shares were allotted in the last five years pursuant to the Scheme of amalgamation with Reliance
Petroleum Limited without payments being received in cash.

45,04,27,345
(45,04,27,345)

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.

4,62,46,280
(4,62,46,280)

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, 2014

As at
31st March, 2013

No. of Shares

293,63,08,755

297,87,04,713

32,38,476

1,86,891

4,25,82,849

293,95,47,231

293,63,08,755

1.6 The Company has reserved issuance of 13,05,05,114 (Previous year 13,37,43,590) Equity Shares of ` 10 each for offering
to eligible employees of the Company and its subsidiaries under Employees Stock Option Scheme (ESOS). During the
year, the Company has granted 60,866 (Previous Year NIL) options to the eligible employees at a price of ` 860 per op-
tion 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 Human Resources, Nomination and Remuneration
Commitee from the date of grant based on specified criteria.

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.

02-33

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Statutory Reports

Financial Statements

Shareholders' Referencer

227

226

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Annual Report 2013-14

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
2. RESERVES AND SURPLUS

Growth is Life...

(` in crore)

Capital Reserve
As per last Balance Sheet
Add: On Consolidation of Subsidiaries (Net)

Less: Transferred to Profit and Loss Account (Refer Note No. 11.7)

Exchange Fluctuation Reserve
As per last Balance Sheet
Add : During the year

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 buy back of Equity Shares

Less : Calls in arrears - by others
[` 1,93,288 (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
Add : Transferred from Profit and Loss Account

Revaluation Reserve
As per last Balance Sheet
Add: On Revaluation

Less: Transferred to Profit and Loss Account
(Refer Note No. 11.7)
Add: Transferred from / (to) Minority Interest

General Reserve*

As per last Balance Sheet

Add: Transferred from Profit and Loss Account

Less: Transferred to Profit and Loss Account (Refer Note No. 11.7)

As at
31st March, 2014

As at
31st March, 2013

572
(280)
292
85

1,097
706

56
38

42,226
205
42,431
-
42,431
-

86
-
14

1,661
346
2,007
1,083

(76)

603
49
652
80

207

572

1,069
28

1,803

1,097

13
43

45,258
12
45,270
3,044
42,226
-

42,431

1,117

42,226

1,117

78
2
6

100

3,740
-
3,740
2,081

848

1,661

1,18,004

18,000

790

1,00,004

18,000

1,35,214

1,18,004

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Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

As at
31st March, 2014

As at
31st March, 2013

14,265

Share in Reserves of Associates

Revaluation Reserve

As per last Balance Sheet

Profit and Loss Account

As per last Balance Sheet

Less: Adjustment arising out of Scheme of Arrangement and Amalgamation#

1,532

(Short) Provision of Tax for earlier years (net)
(` 8,26,209)

(Short) Provision of Tax for earlier years (net) - Minority Interest
[(` 781), Previous Year (` 43,379)]

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 ` 9.5/- ; (Previous Year ` 9.0/-)]

Tax on Dividend**

Proposed Dividend on preference shares
(Minority Interest ` 9,749/- ; Previous Year ` 19,880/-)

Tax on Dividend on Preference Shares
(Minority Interest ` 1,657/- ; Previous Year ` 3,379/-)

TOTAL

22,493

35,226

18,000

2,793

475

14,574

(54)

20,879

35,389

18,000

2,628

447

13,906

1,95,730

14,265

1,79,094

Cumulative amount withdrawn on account of Depreciation on Revaluation is ` 3,353 crore (Previous Year
` 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 ` NIL (Previous Year
` 17 crore).

Net effect of the various Scheme of Arrangement and Amalgamation (‘the Scheme’) filed by the subsidiary
Companies under the sections 391 to 394 of the Companies Act, 1956 sanctioned by the Hon’ble High Court of
Judicature at Bombay.

2.1

In view of the loss for the year, the subsidiary Company Reliance Jio Infocomm Limited has not created the Debenture
Redemption Reserve for a cumulative amount of ` 352 crore (Previous Year ` 252 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.

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Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
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

Term Loans- from Others

Deferred Payment Liabilities

TOTAL

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

Non
Current

Current

Non
Current

Current

1,434

3,138

434

1,842

4,182

4,593

447

1,881

4,197

32,407

28,347

63,775

4,500

40,726

13,697

241

96,426

4,503

69,079

13,700

1,01,019

4,950

70,960

17,897

3.1 Non Convertible Debentures referred above to the extent of:

` 370 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.

` 917 crore are secured by way of first mortgage / charge on all the properties situated at Hazira Complex and at
Patalganga 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 referred above to the extent of:

` 3127 crore are secured by way of mortgage on Oil and Gas properties outside India and related assets.

` 11 crore are secured by way of hypothecation of vehicles and are repayable over a period of 2 to 5 years.

3.3 Finance Lease Obligations are secured against leased assets.

228

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271-284
Shareholders' Referencer

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
4.

DEFERRED TAX LIABILITY (Net)

229

(` in crore)

Deferred Tax Liability
Related to fixed assets
Deferred Tax Assets
Related to fixed assets
Disallowances under the Income Tax Act
Carried forward loss of subsidiaries

TOTAL

5. OTHER LONG TERM LIABILITIES

Others #

TOTAL

As at
31st March, 2014

As at
31st March, 2013

16,282

14,682

27
176
4,154

38
109
2,947

4,357
11,925

3,094
11,588

(` in crore)

As at
31st March, 2014
807

As at
31st March, 2013
-

807

# Includes Premium payable on forward contracts, Liability on revaluation of forward contracts and exchange loss.

6. LONG TERM PROVISIONS

Provisions for Annuities
Others #
TOTAL

As at
31st March, 2014
226
64
290

# Includes provision for Decommissioning and Liability for derivative transactions.

7. SHORT TERM BORROWINGS

(` in crore)

As at
31st March, 2013
231
300
531

(` in crore)

Secured
Working Capital Loans
From Banks
Foreign Currency Loans
Rupee Loans

From Others
Rupee Loans

Unsecured
A.

Other Loans and Advances
From Banks
Foreign Currency Loans *
Rupee Loans

Loans from related parties (Refer Note No. 28)

B.
TOTAL

* Includes Buyers Credit/Packing Credit

As at
31st March, 2014

As at
31st March, 2013

828
7,566

601
27

8,394

1,199

628

23,128
9

17,569
110

23,137
62
32,792

17,679
55
18,362

230

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231

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
7.1 Working Capital Loans from Banks referred above to the extent of:

(b) ` 3,281 crore are secured by way of lien on fixed deposits and ` 978 crore are secured by lien on Government

Securities.

7.2 Working Capital Loan from Others of ` 1,199 crore are secured by lien on Government Securities.

8. TRADE PAYABLES

Micro, Small and Medium Enterprises

Others

TOTAL

9. OTHER CURRENT LIABILITIES

Current maturities of long term debt

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 #

Other Payables *

TOTAL

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

109

60,751

60,860

49,634

49,700

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

4,937

17,886

4,950

612

175

11,319

17,058

17,897

690

152

4,914

23,655

Includes statutory dues, security deposit, Creditors for Capital expenditure, 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 ` 12 crore (Previous Year ` 10 crore) which is held in abeyance due to legal cases pending.

10. 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, 2014

As at
31st March, 2013

244

2,793

475

848

4,446

194

2,643

449

1,218

4,557

Includes primarily provision for Customs duty, Excise Duty on Finished Goods, Other duties and taxes.

230

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Shareholders' Referencer

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
11. FIXED ASSETS

231

(` in crore)

Description

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

Gross Block

Depreciation / Amortisation

Net Block

As at
01-04-2013

Additions/
Adjustments

Deductions/
Adjustments

As at
31-03-2014

As at
01-04-2013

For the
Year#

Deductions/
Adjustments

As at
31-03-2014

As at
31-03-2013

2,809

6,482

11,939

1,42,713

4,390

8,475

1,070

452

387

245

238

1,324

5,874

263

1,460

139

116

394

2,660

6,718

500

13,241

3,432

108

365

588

3,765

2,072

6,718

9,476

2,309

6,482

8,507

1,329

1,47,258

71,166

8,030

1,120

78,076

69,182

71,547

340

779

126

4,313

9,156

1,083

528

387

1,832

2,197

480

227

268

189

431

2,017

2,616

545

267

281

2,296

6,540

538

261

106

2,558

6,278

590

225

119

1,78,762

9,659

3,032

1,85,389

80,129

9,280

1,224

88,185

97,204

98,633

278

288

275

285

196

206

223

233

1,79,050

9,660

3,036

1,85,674

80,335

9,311

1,228

88,418

97,256

98,715

3,492

669

303

54,003

13,140

3,757

61,921

2,40,971

2,33,475

13,452

23,112

8,953

3,479

972

1,910

531

67,143

23,758

3,751

950

75,345

27,149

3,064

1,457

2,61,019

1,07,484

2,40,971

94,661

181

3,706

4,041

13,352

13,399

2,091

627

1,388

345

27,464

39,679

1,002

2,749

31,184

44,161

1,582

138

30,245

2,807

34,772

1,234

1,19,602

1,41,417

1,33,487

576

1,07,484

1,33,487

1,38,814

Capital Work-in-Progress

Intangible Assets under Development

48,646

42,848

17,191

32,761

Includes Office Equipments

Other than internally generated
Depreciation for the year includes depreciation of ` 193 crore (Previous Year ` 6 crore) capitalised during the year.

11.1 Leasehold Land includes ` 203 crore (Previous Year ` 203 crore) in respect of which lease-deeds are pending execution.

11.2 Buildings include :

ii)

iii)

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.

` 93 crore (Previous Year ` 93 crore) in shares of Companies / Societies with right to hold and use certain area of
Buildings.

232

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233

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
11.3 Intangible assets - Others include :

ii)

` 2,899 crore (Previous Year ` 2,899 crore) in shares of companies and lease premium paid with right to hold and
use Land and Buildings.

11.4 Capital Work-in-Progress and Intangible Assets under development include:

ii)

` 9,982 crore (Previous Year ` 5,849 crore) on account of project development expenditure.

` 17,346 crore (Previous Year ` 5,804 crore) on account of cost of construction materials at site.

11.5 Project Development Expenditure:

(in respect of Projects upto 31st March, 2014, 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 / Transferred during

the year

Closing Balance

736

1,712

1,758

2013-14

5,849

4,206

9,982

128

485

1,296

(` in crore)

2012-13

3,948

1,909

5,849

11.6 Gross Block includes ` 346 crore added on revaluation of Buildings, Plant & Machinery and Storage Tanks as at
31.12.2013, ` 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, based on reports issued by
international valuers.

11.7 The Gross Block of Fixed Assets includes ` 38,872 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
` 1,958 crore (Previous Year ` 2,161 crore) and an equivalent amount has been withdrawn from Revaluation Reserve/
General Reserve / Capital Reserve.

11.8 Additions in Plant and Machinery, Capital Work-in-Progress , Intangible Assets - Development Rights and Intangible
Assets under Development include ` 10,675 crore (net loss) [Previous Year ` 5,948 crore (net loss)] on account of
exchange difference during the year.

232

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Financial Statements

271-284
Shareholders' Referencer

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
12. NON-CURRENT INVESTMENTS

(Long Term Investments)
(Valued at Cost less other than temporary diminution in value, if any)

233

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

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)

62,63,125
(62,63,125)

64,29,20,000
(64,29,20,000)

52,00,000
(52,00,000)

5,000
(5,000)

-
(37,24,971)

51,54,872
(51,54,872)

6,31,42,865
(3,72,38,095)

52,49,344
(-)

46,87,500
(46,87,500)

Reliance Europe Limited of Sterling Pound 1 each

Reliance LNG Limited of ` 10 each
[` 2,14,493 ; (Previous Year ` 2,22,012)]
Reliance Commercial Trading Private Limited of ` 10 each

Reliance Commercial Dealers Limited of `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 ` 40,40,000)]
Gaurav Overseas Private Limited of ` 10 each

Deccan Cargo & Express Logistics Private Limited
of ` 100 each
EFS Midstream LLC

Algenol LLC

Aurora Algae Inc

Matrix Genetics LLC

Extramarks Education Private Limited of ` 10 each

5,000
(5,000)

-
(5,000)

5,000
(5,000)

Reliance Jio Infratel Private Limited of ` 10 each
[` 50,000 ; (Previous Year ` 50,000)]
Reliance Jio Digital Services Private Limited of ` 10 each
[` 50,000 ; (Previous Year ` 50,000)]
Reliance Jio Electronics Private Limited of ` 10 each
[` NIL ; (Previous Year ` 50,000)]
Reliance Jio Media Private Limited of ` 10 each
[` 50,000 ; (Previous Year ` 50,000)]

147

1,662

413

227

125

136

1,372

451

157

125

2,568

2,216

234

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235

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

As at
31st March, 2014

As at
31st March, 2013

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)
1,00,000
(1,00,000)

Zero Coupon Secured Optionally Convertible Redeemable
Debentures of Reliance Commercial Trading Private Limited
- Series B 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 Investment Advisers LLP [` 12,50,000 ;
(Previous Year ` 2,00,000)]

Total Investment in Associates (A)

Investments in others

In Government Securities-Unquoted

6 Years National Savings Certificate (Deposited with Sales
Tax Department and other Government Authorities)
[` 16,57,020 ; (Previous Year ` 23,49,560)]

In Government Securities-Quoted

8.33% GOI 2026
8.12% GOI 2020
7.16% GOI 2023

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)]

2,000

100

142

-
3,111
2,246
5,357

4,857

4,497

2,000

100

145

650
-
-
650

Other Investments

In Equity Shares-Quoted, fully paid up

10,59,07,273
(10,59,07,273)

EIH Limited of ` 2 each

1,433

234

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Financial Statements

271-284
Shareholders' Referencer

235

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

As at
31st March, 2014

As at
31st March, 2013

4,85,32,764
(4,85,32,764)
-
(17,50,954)
97,25,000
(97,25,000)
89,82,030
(89,82,030)
7,69,000
(7,69,000)
41,73,123
(41,73,123)
9,33,011
(9,33,011)
848639
(-)
65,43,657
(1,44,00,000)
19,48,680
(19,48,680)
91,68,704
(-)

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

Algae. Tech Limited of AU$ 0.1636 each

142

134

136

199

431

174

142

134

136

199

949

2671

3,285

In Equity Shares-Unquoted, fully paid up

85,000
(85,000)
2,53,800
(2,53,800)
-
(5,000)
34,53,378
(33,78,378)
1,000
(1,000)
1,500
(1,500)
1,800
(1,800)
400
(400)
-
(910)
-
(860)
400
(-)

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 Fresh Private Limited of ` 10 each
(` NIL ; Previous Year ` 1,00,000)
Terra Power LLC

Air Controls and Chemical Engineering Company Limited
of ` 1 each (` 1,500 ; Previous Year ` 1,500)
Reliance Research and Development Services Private
Limited of ` 10 each (` 15,000; Previous Year ` 15,000)
Teesta Retail Private Limited of ` 10 each
(` 18,125 ; Previous Year ` 18,000)
Sonali Land Private Limited of ` 10 each
[` 4,000 ; (Previous Year ` 4,000)]
Reliance First Private Limited of ` 10 each
[` NIL ; (Previous Year ` 9,114)]
Reliance Tankages Private Limited of ` 10 each
[` NIL ; (Previous Year ` 8,600)]
Eshwar Land Private Limited of ` 10 each

201

111

236

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Financial Statements

Shareholders' Referencer

237

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

In Fixed Maturity Plan - Quoted fully paid up

As at
31st March, 2014

As at
31st March, 2013

25,90,00,000
(2,50,00,000)
6,00,00,000
(2,50,00,000)
63,10,00,000
(19,00,00,000)
-
(3,00,00,000)
1,55,000,000
(40,00,00,000)
22,80,00,000
(17,00,00,000)
14,00,00,000
(-)
80,00,00,000
(35,20,00,000)
60,000,000
(1,50,00,000)
83,50,00,000
(86,50,00,000)
28,80,00,000
(7,00,00,000))
10,50,00,000
(34,50,00,000)
40,00,00,000
(29,50,00,000)
19,50,00,000
(12,50,00,000)
12,00,00,000
(6,50,00,000)
2,50,00,000
(-)
30,00,00,000
(45,00,00,000)
3,50,00,000
(12,00,00,000)
57,50,00,000
(38,00,00,000)
70,0,00,000
(-)
8,80,00,000
(10,00,00,000)
17,00,00,000
(25,00,00,000)
13,50,00,000
(14,00,00,000)

(Series 97/98/99/101/

DSP BlackRock Fixed Term Plan -
(Series 36/37/88/ 89/91/93/150/152) - Growth
DWS Fixed Maturity Plan -
(Series 26/28/30/45/49/ 52/53/47) - Growth
DWS Fixed Maturity Plan - Close ended debt fund -
(Series 54/57/63) - Growth
HDFC Fixed Maturity Plan -
(Series 23/28/29) - Growth
HSBC Fixed Term Plan -
(Series 90/105) - Growth
ICICI Fixed Maturity Plan -
(Series 65/66/67/71/72/73) - Growth
IDFC Fixed Maturity Plan - (Series 11/14/21/51/60/
64/66/70/72/75/79/84/86) - Growth
JP Morgan India Fixed Maturity Plan -
(Series 12/13/16/18/30/33) - Growth
Kotak Fixed Maturity Plan
102/103/132/133/141/142/145/146/147/149) - Growth
L&T Fixed Maturity Plan –
(Series X/VII/IX) – (Plan B/H/J/M/Q/S/T) - Growth
LIC Nomura Mutual Fund Fixed Maturity Plan - (Series
56/58/64/72/76/77/79) - Growth
Principal PNB Fixed Maturity Plan -
(Series B10) - Growth
Reliance Fixed Horizon Fund - (Series 2/5/9/27/33) - (Plan
- XXII/XXIII/XXV/XXVI) - Growth
Religare Fixed Maturity Plan -
(Series XVII/XVIII) - (Plan A/B/D/F/H) - Growth
SBI Debt Fund -
(Series A - 1/2/3/5/10/11/14/15/25) - Growth
SBI Debt Fund - Double Indexation Benefit -
(Series A-14) - Growth
Sundaram Fixed Term Plan -
(Series DC/DF/DH/EU/EX/FD/FI) Growth
Tata Fixed Maturity Plan - (Series 42/46) -
(Scheme B/C/G/H/K/M/N/Q/T) - Growth
UTI Fixed Term Income Fund - (Series XIII-III/
XIV-VIII/XVII-VII/XVII-XIV/XVIII-I/XVII-IV) - Growth

259

631

155

228

140

800

835

288

105

400

195

120

300

575

170

135

190

400

170

352

865

345

295

125

450

120

380

100

250

140

236

Reliance Industries Limited

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Company Overview

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165-270
Financial Statements

271-284
Shareholders' Referencer

237

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

As at
31st March, 2014

As at
31st March, 2013

5,674

4,412

In Debentures or Bonds - Unquoted

3,000
(-)
1,74,73,143
(44,05,550)
-
(2,000)

Tata Sons Limited

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

In Debentures or Bonds - Quoted

LIC Housing Finance Limited

Tata Steel Limited

Power Grid Corporation of India Limited

Power Finance Corporation Limited

Rural Electrification Corporation Limited

300

175

475

635

1,385

Housing Development Finance Corporation Limited

3,293

Infrastructure Development Finance Company Limited

National Bank for Agriculture and Rural Development

National Highways Authority of India

Indian Railway Finance Corporation Limited

National Thermal Power Company Limited

HDB Financial Services Limited - 9.43%
Secured Redeemable Non Convertible Debentures of
` 5,00,000 each

350

494

426

6,939

6,350
(-)
650
(-)
20
(-)
42,81,393
(-)
700
(-)
32,550
(-)
3,500
(-)
550
(-)
49,44,752
(-)
42,62,612
(-)
9,49,946
(-)
1,500
(1,500)

In Others

17,05,638
(11,53,511)
2,73,770
(3,79,028)
50,000
(50,000)

Faering Capital India Evolving Fund of ` 1,000 each

171

HDFC India Real Estate of ` 1,000 per unit

JM Financial Property Fund - I of ` 7,551.28 per unit;
(Previous Year ` 9,547.42 per unit)
MPM Bioventure IV-QP, LP, USA

200

272

115

238

Reliance Industries Limited
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271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

239

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

As at
31st March, 2014

As at
31st March, 2013

5,000
(5,000)

2,000
(2,000)
21,600
(21,600)
25,000
(25,000)

8,70,000
(-)
62,00,000
(-)

Multiples Private Equity Fund - Scheme 1
of ` 1,00,000 each, ` 69,940 paid up
(Previous Year ` 46,350 paid up)
Peninsula Realty Fund of ` 1,00,000 each

Urban Infrastructure Opportunities Fund
of ` 86,750 per unit (Previous Year ` 87,500 per unit)
LICHFL Urban Development Fund
of ` 10,000 each, ` 2,870 paid up
(Previous Year ` 2,000 paid up)
KKR India Debt Fund I of ` 1000 each

GenNext Ventures Fund - Class A Units

In ETF - Quoted, fully paid up

-
(3,99,000)

Kotak Gold Exchange Traded Fund of ` 100 each

191

683

192

549

118

Total Investments in Others (B)

Total Long Term Investments (A + B)

22,010

26,867

9,482

13,979

13. LONG-TERM LOANS AND ADVANCES

(Unsecured and Considered Good)

Capital Advances#

Deposits##

Loans and Advances to Related Parties (Refer Note No. 28)

Advance Income Tax (Net of Provision)

Other Loans and Advances*

TOTAL

As at
31st March, 2014

(` in crore)
As at
31st March, 2013

9,954

3,504

1,008

3,513

17,996

2,467

2,727

693

3,046

9,025

##
*

Includes ` 5 crore (Previous Year ` NIL) to Reliance Utilities & Power Private Limited, ` 3 crore (Previous Year
` 2 crore) to Reliance Industrial Infrastructure Limited which are related parties.
Includes ` 2,006 crore (Previous Year ` 1,971 crore) relating to Deposits with related parties (Refer Note No. 28).
Includes claims receivable from statutory authorities, loans to employees etc.

14. OTHER NON CURRENT ASSETS

Miscellaneous Expenditure (to the extent not written off or adjusted)
` 61,510 (Previous Year ` 7,61,510)

TOTAL

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

238

Reliance Industries Limited

Annual Report 2013-14

Growth is Life...

02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

239

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
15. CURRENT INVESTMENTS

(Carried at lower of cost and quoted / fair value, including current portion of long term investment)

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

Investment in Equity Shares - Quoted, Fully Paid up

74,62,500
(74,62,500)
18,88,171
(18,88,171)
13,65,000
(-)
11,34,790
(-)
1,49, 500
(-)
23,96,000
(-)
5,25,525
(-)
5,35,983
(-)
1,02,600
(-)
29,000
(-)
9,60,000
(-)
4,96,300
(-)
13,04,535
(-)
2,47,400
(-)
69,000
(-)
83,000
(-)
1,30,000
(-)

NTPC Limited

Oil and Natural Gas Corporation Limited

Coal India Limited

IndusInd Bank Limited

Infosys Limited

ITC Limited

Larsen & Toubro Limited

Mahindra & Mahindra Limited

Maruti Suzuki India Limited

State Bank of India

Sun Pharmaceuticals Industries Limited

Tata Consultancy Services Limited

United Phosphorus Limited

Tata Motors Limited

Axis Bank Limited

Hindustan Unilever Limited

Tata Steel Limited

Investment in Government Securities - Quoted

1.44% IIGS 2023
6.35% GOI 2020
7.16% GOI 2023
7.28% GOI 2019
7.59% GOI 2016
7.80% GOI 2020
(` NIL; Previous Year ` 7,91,120)

105

256
1
2
509
5
-

106

707

164

-
1
-
-
5
-

240

Reliance Industries Limited
Annual Report 2013-14

Growth is Life...

02-33

34-164

165-270

271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

241

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

As at
31st March, 2014

As at
31st March, 2013

8.12% GOI 2020
8.13% GOI 2022
8.20% GOI 2025
8.33% GOI 2026
8.53% MAHA SDL 2020
(` 30,264 ; Previous Year ` 30,264)
8.65% Karnataka SDL 2022
8.78% GUJ SDL 2021
(` 20,22,524; Previous Year ` NIL )
8.79% GOI 2021
8.83% GOI 2023
8.85% MAHA SDL 2022
(` 13,01,040 ; Previous Year ` 19,01,520)
8.88% Gujarat 2022
(` NIL ; Previous Year ` 20,13,200)
8.97% GOI 2030
9.12% Gujarat 2022
9.24% Punjab 2022
(` NIL ; Previous Year ` 4,03,620)
9.47% GSEC 2024
9.48% GSEC 2024
9.53% Madhya Pradesh 2023

Collateral Borrowing and Lending Obligation - Unquoted

Investment in Debentures or Bonds - Quoted, Fully Paid up

8
(349)
3,050
(38,307)
-
(6,500)
-
(15,095)
1
(42,63,562)
-
(5,153)
-
(7,250)
-
(49,44,752)
109
(42,74,393)
20
(120)

Export Import Bank of India

Housing Development Finance Corporation Limited

Infrastructure Development Finance Company Limited

India Infrastructure Finance Company Limited

Indian Railway Finance Corporation Limited (` 10,08,203)

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

72
-
-
-
-

4
-

2
301
-

-
-
-

100
75
2

303

-
22
278
102
-

-
-

16
-
-

149
2
-

-
-
-

1,329

355

575

3,839

647

149

521

515

726

494

688

240

Reliance Industries Limited

Annual Report 2013-14

Growth is Life...

02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

241

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

As at
31st March, 2014

As at
31st March, 2013

7,879

300

-
(595)
-
(650)
-
(1,320)
25
(-)
2,000
(-)

Rural Electrification Corporation Limited

Tata Steel Limited

Tata Power Company Limited

Nuclear Power Corporation of India Limited

Indiabulls Housing Finance Limited - 10.60% Secured
Redeemable Non Convertible Debentures of ` 10,00,000
each

Investment in Debentures or Bonds - Unquoted, Fully Paid up

Tata Sons Limited

-
(3,000)

Investment in Fixed Maturity Plan - Quoted, Fully Paid up

2,50,00,000
(5,00,00,000)
9,80,00,000
(2,50,00,000)
-
(2,50,00,000)
1,89,00,00,000
(67,00,00,000)

26,00,00,000
(1,50,00,000)
13,50,00,000
(5,00,00,000)
1,67,00,00,000
(53,00,00,000)

47,50,00,000
(29,80,00,000)
-
(3,00,00,000)
7,50,00,000
(-)
5,00,00,000
(-)
-
(5,00,00,000)
2,13,70,00,000
(62,70,00,000)

13,50,00,000
(4,50,00,000)

Axis Fixed Term Plan -
(Series 21/22/34) - Growth
Baroda Pioneer Fixed Maturity Plan -
(Series A/C/E/G/J) - Growth
Birla Sun Life Fixed Term Plan -
(Series FP) - Dividend
Birla Sun Life Fixed Term Plan - (Series ES/EV/EY/FC/FD/
FM/FO/GA/GB/GF/GT/GV/HD/HI/HK/HL/HM/HQ/HS/HV/
HY/IA/JA/JE/JG/JI/JL/JN/JO/JQ/JT/JU/JY/JZ/KC/KD/KF/
KG/KH/KI/KK/KN/KQ) - Growth
Birla Sunlife Interval Income Fund -
(Annual Plan V/VIII/IX/X) - Growth
BNP Paribas Fixed Term Fund -
(Series 24A/25A/26A/26C/29B) - Growth
DSP BlackRock Fixed Maturity Plan - (Series 37/38/43/
44/88/89/90/91/93/94/95/103/104/105/107/108/109/
110/113/117/130/144/146/149/151/153/155) - Growth
DWS Fixed Maturity Plan - (Series 6/7/9/10/26/27/28/
29/30/32/34/36/42/43/46/48/50) - Growth
DWS Fixed Maturity Plan - (Series 18) - Dividend

DWS Fixed Maturity Plan - Close ended debt fund -
(Series 51/55/62) - Growth
DWS Interval Fund Annual Plan - Growth

HDFC Annual Interval Fund - (Series 1) - Growth

HDFC Fixed Maturity Plan - (Series 366D/369D/370D/
371D/372D/384D/390D/391D/392D/398D/399D/400D/
526D/566D) - Growth
HSBC Fixed Term Plan -
(Series 86/90/94/96/101-104) - Growth

200

1,890

260

135

1,670

475

2,137

135

520

133

670

530

298

627

242

Reliance Industries Limited
Annual Report 2013-14

Growth is Life...

02-33

34-164

165-270

271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

243

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

As at
31st March, 2014

As at
31st March, 2013

19,99,03,904
(5,98,46,064)
1,75,00,00,000
(88,00,00,000)

92,40,00,000
(-)
-
(9,96,19,002)
2,00,00,000
(-)
-
(2,50,00,000)
85,50,00,000
(34,70,00,000)

-
(9,60,00,000)
11,07,54,164
(12,00,00,000)
-
(3,50,00,000)
2,50,00,000
(-)
50,00,00,000
(21,50,00,000)
1,14,00,00,000
(36,00,00,000)

ICICI Prudential Fixed Maturity Annual Interval Plan -
(Series VI/VII) - (Plan C/D/F/I) - Cumulative
ICICI Prudential Fixed Maturity Plan -
(Series 62/63/65/66/67/68/69/70/71) - (Plan A/B/C/D/E/F/
G/H/I/J/K/M) - Cumulative
ICICI Prudential Fixed Maturity Plan - (Series 72/73) -
(Plan A/B/C/D/G/H/I/K/M/P/R/T) - Growth
ICICI Prudential Long Term Plan - Premium Plus -
Dividend
IDBI Fixed Maturity Plan -
(Series III) - Dividend
IDBI Fixed Maturity Plan -
(Series III) - Growth
IDFC Fixed Maturity Plan -
(Series 7/8/11/12/13/14/24/25/27/31/32/33/34/49/50/
54/59/65/67/69/74/85/78/81/85) - Growth
IDFC Fixed Maturity Plan -
(Series 74/78/79) - Dividend
IDFC Yearly Interval Fund -
(Series I/II/III) - Growth
Indiabulls Fixed Maturity Plan - Growth

JM Fixed Maturity Plan -
(Series FXXIV) - (Plan C)- Growth
JP Morgan India Fixed Maturity Plan -
(Series 6/12/13/16/17/18/21/31/32) - Growth
Kotak Fixed Maturity Plan - (Series 76/80/82/97/98/99/
100/101/102/104/105/106/107/110/111/112/114/116/
118/119/136/137/138/139/143/144/152) - Growth
L & T Fixed Maturity Plan -
(Series VII/VIII/IX/X) - (Plan A/D/G/I/J/L) - Growth
LIC Nomura Fixed Maturity Plan - (Series 52/53/54/55/
56/58/60/61/62/63/66/68/73/75) - Growth
LIC Nomura Interval Fund -
(Series 1) - Growth
Reliance Annual Interval Fund -
(Series 1) - Growth
Reliance Fixed Horizon Fund -
(Series XXII/XXIII/XXVI/XXV/XXIV) - Growth
Reliance Yearly Interval Fund -
(Series 3/6/8) - Growth
Religare Fixed Maturity Plan - (Series XIII/XIV/XVII/XVIII/
XXII) - (Plan A/B/C/D/E/F) - Growth
Religare Invesco Fixed Maturity Plan -
(Series XIX/XXI/XXII) - (Plan A/C/E/F/G) - Growth
SBI Debt Fund -
(Series 1/2/12/13/14/15/23/24/25/28/29) - Growth
SBI Debt Fund -
(Series 5/7) - Dividend

208

1,750

924

855

113

500

1,140

337

310

680

250

155

195

620

880

100

347

120

215

360

145

110

248

455

140

242

Reliance Industries Limited

Annual Report 2013-14

Growth is Life...

02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

243

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

As at
31st March, 2014
1,100

1,10,00,00,000
(7,50,00,000)
31,00,00,000
(6,50,00,000)
96,90,00,000
(13,50,00,000)
8,50,00,000
(-)
3,04,93,690
(5,49,80,083)
1,33,50,00,000
(22,50,00,000)

-
(13,00,00,000)

SBI Debt Fund - (Series 9/12/13/16/18/32/33/34/36/37/3
8/39/41/47/48/49/51/52/53/54) - Growth
Sundaram Fixed Term Plan - (Series CQ/DC/DF/DG/DH/
DO/DQ/DR/EW/EY/FB/FF/FJ) - Growth
Tata Fixed Maturity Plan - (Series 39/40/42/43/44/45/46) -
(Scheme A/B/C/D/E/G/H/I/L/O/P) - Growth
UTI Fixed Term Income Fund -
(Series XVII-I/XVII-V) - Growth
UTI Fixed Income Interval Fund - Annual Interval Plan
(Series - II/III/IV) - Growth
UTI Fixed Term Income Fund - (Series XIII-III/XIV-V/
XIV-VI/XIV-VII/XIV-VIII/XV-I/XV-II/XVI-IV/XVI-VII/XVII-X/
XVII-XVI/XVI-I/XV-III/XVII-II/XV-IV/XV-V/XV-VI/XV-VII/XV-X/
XVII-XX/XVIII-III/XVIII-IV/XVII-XIII) - Growth
UTI Fixed Term Income Fund -
(Series - XII-IV/XIII) - Dividend

Investment in Mutual Fund - Unquoted

Axis Banking Debt Fund - Growth

Axis Short Term Fund - 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 Banking & PSU Debt Fund - Regular Plan
- Growth
DSP Black Rock Liquidity Fund - Institutional Plan Growth

DSP Black Rock Short Term Fund - Growth

DSP Black Rock Strategic Bond Fund -Institutional Plan -
Growth
DWS GILT Fund - Regular Plan - Growth

DWS InstaCashPlus Fund Super Institutional Plan Annual
Bonus
DWS InstaCashPlus Fund Super Institutional Plan Bonus

DWS Money Plus Fund - Regular Plan (Principle Units) -
Bonus
DWS Mutual Fund ICP-Bonus

310

969

1,335

549

1,000

147

600

236

As at
31st March, 2013

135

225

130

18,941

6,493

135

2,418

225

100

210

625

150

244

Reliance Industries Limited
Annual Report 2013-14

Growth is Life...

02-33

34-164

165-270

271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

245

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

As at
31st March, 2014

As at
31st March, 2013

-
(14,48,86,484)
-
(12,93,69,261)
-
(60,38,424)
1,84,06,566
(-)
11,79,24,798
(5,81,04,402)
3,25,53,638
(-)
29,63,61,644
(19,73,54,869)
50,00,000
(-)
11,23,62,581
(14,69,19,109)
-
(22,67,48,577)
-
(86,58,009)
21,41,12,926
(25,68,76,110)
-
(22,68,83,560)
-
(16,70,54,915)
3,61,78,141
(-)
4,06,37,366
(-)
11,08,46,926
(-)
3,98,32,730
(-)
2,41,47,124
(-)
-
(27,12,060)
-
(3,46,29,245)
-
(31,83,61,805)
-
(14,42,759)
-
(10,86,67,777)

DWS Premier Bond Fund - Premium Plus Plan - Growth

DWS Short Maturity Fund - Premium Plus Growth

DWS Treasury Fund - Cash - Regular Plan - Bonus

DWS Treasury Fund - Investment - Regular Plan - Bonus

DWS Treasury Fund - Investment - Regular Plan - Growth

159

Franklin India Savings Plus Fund - Growth

HDFC Short Term Opportunities Fund - Growth

HDFC Debt Fund for Cancer Cure - 50% Regular Option -
Dividend Donation
HDFC Floating Rate Income Fund - Long Term Plan -
Growth
HDFC High Interest Fund - Short Term Plan - Growth

HDFC Liquid Fund - Growth

400

250

HDFC Medium Term Opportunities Fund - Growth

278

HDFC Short Term Plan - Growth

HSBC Income Fund Short Term Institutional Plus Growth

ICICI Prudential Banking and PSU Debt Fund - Growth

ICICI Prudential Blended Plan A - Dividend

ICICI Prudential Blended Plan B - Growth

ICICI Prudential Equity Arbitrage Fund - Dividend

ICICI Prudential Gilt Fund Treasury Plan - Quarterly
Dividend Reinvestment
ICICI Prudential Liquid Fund - Growth

ICICI Prudential Gilt Treasury Plan - Regular Growth

ICICI Prudential Institutional Short Term Plan -
Cumulative
ICICI Prudential Liquid - Regular Plan - Growth

ICICI Prudential Short Term Plan - Regular Growth

200

150

147

240

300

500

305

485

180

100

725

250

244

Reliance Industries Limited

Annual Report 2013-14

Growth is Life...

02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

245

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

As at
31st March, 2014

As at
31st March, 2013

16,20,52,229
-
-
(4,39,26,695)
10,88,83,711
-
12,63,13,875
(-)
-
(2,33,10,265)
-
(42,82,45,478)
29,82,16,282
(9,99,03,094)
-
(1,75,479)
21,48,65,792
(-)
-
(23,42,26,669)
8,15,59,748
(-)
2,50,000
(-)
-
(10,38,13,700)
61,49,62,892
(46,01,17,659)
-
(11,10,88,159)
4,50,68,027
(-)
19,71,60,883
(-)
1,36,85,132
(-)
13,40,05,771
(8,84,33,460)
10,68,70,464
(-)
-
(7,51,00,293)
16,54,740
(-)
7,21,37,997
(-)
10,75,21,101
(-)
10,76,394
(1,17,585)

ICICI Prudential Ultra Short Term - Direct Plan - Growth

200

IDBI Short Term Bond Fund - Growth

IDFC Super Saver Income Fund - Short Term-Direct Plan-
Growth
IDFC Arbitrage Fund - Direct Plan - Dividend

IDFC - Super Saver Income Fund - Medium Term Growth

IDFC - Super Saver Income Fund - Short Term - Growth

IDFC Banking Debt Fund - Regular Plan - Growth

IDFC Cash Fund - Growth - (Regular Plan)

IDFC Money Manager Fund- Investment Plan-Growth-
Direct Plan
IDFC Super Saver Income Fund -Medium Term - Plan B -
Growth
IDFC Super Saver Income Fund Short Term Plan - Growth-
(Regular Plan)
Indiabulls Short Term Fund - Direct Plan - Growth Option

J P Morgan India Short term Income Fund - Growth

J P Morgan India Treasury Fund - Bonus

JM High Liquidity Fund - Bonus

JM Money Manager Fund - Super Plan - Bonus

JM Money Manager Fund - Super Plus Plan - Bonus

JM Money Manager Fund Super Plan - Growth

Kotak Bond Short Term Plan - Growth

Kotak Equity Arbitrage Fund - Dividend

L & T - Short Term Opportunities Fund - Growth

L&T Cash Bonus Liquid Fund

L&T Floating Rate Fund - Growth

L&T Triple Ace Bond Fund - Bonus

LIC Nomura MF Liquid Fund - Growth

275

160

319

400

200

629

199

304

115

169

133

250

625

100

285

125

700

109

185

246

Reliance Industries Limited
Annual Report 2013-14

Growth is Life...

02-33

34-164

165-270

271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

247

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

As at
31st March, 2014

As at
31st March, 2013

-
(4,70,53,586)
1,62,107
(-)
-
(12,02,16,390)
-
(13,27,54,784)
10,68,81,070
(-)
17,98,180
(18,67,562)
-
(52,63,28,065)
-
(1,90,032)
36,08,46,691
(18,37,26,275)
6,20,51,677
(4,32,75,524)
17,81,54,863
(-)
17,58,87,636
(-)
-
(3,02,49,315)
9,57,31,798
(-)
-
(9,21,73,180)
-
(1,94,65,573)
36,10,159
(37,23,783)
-
(1,90,537)
35,25,25,179
(30,35,68,335)
-
(20,30,859)
79,225
(49,784)
65,694
(-)
-
(2,70,06,021)
-
(8,38,534)

Morgan Stanley Short Term Bond Fund - Institutional
Plus - Growth
Principal Bank CD Fund - Growth

Reliance Income Fund - Growth Plan - Bonus

Religare Active Income Fund - Growth

Religare Invesco Arbitrage - Bonus

Religare Invesco 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 Flexible Fund Short Term Plan - Bonus

Sundaram Money Fund Direct Plan - Bonus

Sundaram Monthly Income Plan Bonus

Sundaram Select Debt Short Term Asset Plan - Bonus

Tata Income Fund Plan A - Appreciation - Bonus

Tata Short Term Bond Fund Plan A - Growth

UTI Floating Rate Fund - Growth

UTI Money Market Fund - Growth

115

295

487

121

175

272

100

715

UTI Short Term Income Fund - Institutional Plan - Growth

518

UTI Treasury Advantage Fund - Institutional Plan

Birla Sunlife Floating Rate Fund Short Term Growth

Birla Sunlife Cash Plus - Direct Plan - Growth

HDFC Liquid Fund Premium Plan - Daily Dividend

HDFC Liquid Fund - Dividend

131

175

285

725

235

700

400

250

246

Reliance Industries Limited

Annual Report 2013-14

Growth is Life...

02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

247

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

As at
31st March, 2014

As at
31st March, 2013

1,11,74,438
(28,13,853)

HDFC Liquid Fund - Growth

1,73,378
(24,599)

HDFC Cash Management Fund-Savings Plan-Direct Plan -
Dividend (` 18,44,123 ; Previous Year ` 3,00,000)

5,55,857
(6,04,758)

-
(37,41,132)

1,45,545
(1,43,956)

HDFC Cash Management Fund-Savings Plan - Dividend

ICICI Prudential Liquid Super Institutional - Dividend

ICICI Prudential Liquid Plan - Direct - Growth

61,05,501
(35,24,215)

ICICI Prudential Institutional Liquid Plan-Super
Institutional Daily Dividend

1,30,51,222
(-)

71,180
(-)

-
(9,61,89,785)

1,13,125
(-)
2,29,27,832
(-)
-
(1,90,639)
3,197
(47,494)

ICICI Prudential Blended - Plan A - Direct Plan - Growth

ICICI Pru Liquid Plan - Direct Plan - Growth

IDFC Banking Debt Fund - Regular Plan - Growth Fund

IDFC Cash Fund - Regular Plan - Growth

IDFC Banking Debt Fund - Direct Plan - Growth

JM High Liquidity Fund

SBI - Premier Liquid Fund Regular Plan - Growth

Investments in Treasury Bills - Quoted

Investments in Commercial Paper - Quoted

Housing Development Finance Corporation Limited

Investment in certificate of deposits - Unquoted

Andhra Bank

Canara Bank

Central Bank of India

Indian Bank

Oriental Bank of Commerce

State Bank of Patiala

UCO Bank

Union Bank of India

Total Current Investments

187

287

263

478

10,792

13,458

369

1,430

34,458

28,869

248

Reliance Industries Limited
Annual Report 2013-14

Growth is Life...

02-33

34-164

165-270

271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

249

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
16. INVENTORIES

Raw Materials
Raw Materials in Transit
Stock-in-Process
Stock-in-Trade
Finished Goods
Stores, Chemicals and Packing Materials
TOTAL

17. TRADE RECEIVABLES

(Unsecured and Considered Good)

Outstanding for a period exceeding six months
Others
TOTAL

18. CASH AND BANK BALANCES

Cash and cash equivalents:

Cash on hand
Bank Balances:

In current accounts*
In deposit **

Sub-total

Other bank balances

In deposit #

Sub-total
TOTAL

As at
31st March, 2014
7,573
16,145
12,012
5,347
11,947
2,973
55,997

As at
31st March, 2014
78
9,333
9,411

(` in crore)
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, 2013
60
9,690
9,750

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

1,430
32,867
34,360

3,624
3,624
37,984

1,205
49,192
50,456

-
-
50,456

Includes unclaimed dividend of ` 175 crore (Previous Year ` 152 crore).

Include deposits of ` 75 crore (Previous Year ` 13,189 crore) with maturity of more than 12 months.

Deposits of ` 3,624 crore (Previous Year ` NIL) are given as lien against Short Term Borrowings.

19. 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

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

186

3,573

696

5,510

9,965

2,809

421

7,141

10,455

Includes primarily Interest Receivable on Fixed Deposits with banks, Share Application Money, Advance to sundry
creditors and advance to employees.

248

Reliance Industries Limited

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02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

249

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
20. OTHER CURRENT ASSETS

Interest accrued on Investment

Share Application Money

Others *

TOTAL

Includes Interest Receivables.

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

Share in income of Associates

Other non operating income

TOTAL

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

535

2,572

147

3,254

510

955

318

1,783

471

1,085

4,351

138

1,685

808

2013-14

(` in crore)

2012-13

922

489

4,405

5,907

5,816

175

131

1,303

465

2,493

336

9,001

1,768

7,867

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

Less: Capitalised during the year

Add: Opening Stock of Subsidiaries acquired during the year

TOTAL

2013-14

(` in crore)

2012-13

17,341

11,537

29,306

28,878

13,153

10,535

23,688

236

28,746

(560)

23,924

(4,954)

17,294

12,012

17,341

11,537

28,878

132

250

Reliance Industries Limited
Annual Report 2013-14

Growth is Life...

02-33

34-164

165-270

271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

251

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
23. EMPLOYEE BENEFITS EXPENSE

Salaries and Wages

Contribution to Provident and Other Funds

Staff Welfare Expenses

TOTAL

24. FINANCE COSTS

Interest Expenses

Other borrowing costs

Applicable loss on foreign currency transactions and translation

TOTAL

25. DEPRECIATION AND AMORTISATION EXPENSE

Depreciation and Amortisation (Refer Note No. 11)

Less: Transferred from Revaluation Reserve
(Refer Note No. 11.7)

Less: Transferred from General Reserve (Refer Note No. 11.7)

Less: Transferred from Capital Reserve (Refer Note No. 11.7)

TOTAL

26. OTHER EXPENSES

2013-14

4,814

362

396

5,572

2013-14

2,507

1,325

3,836

2013-14

13,159

1,083

790

11,201

(` in crore)

2012-13

4,529

329

321

5,179

(` in crore)

2012-13

2,574

868

3,463

(` in crore)

2012-13

13,393

2,081

11,232

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

2013-14

(` in crore)

2012-13

4,935

10,855

1,372

922

231

(1)

4,285

7,993

1,651

837

(57)

Land development and construction expenditure

18,365

14,848

250

Reliance Industries Limited

Annual Report 2013-14

Growth is Life...

02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

251

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

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

2013-14

(` in crore)

2012-13

5,364

1,105

956

7,410

7,425

876

987

762

652

212

260

226

110

285

5,536

939

935

1,184

1,579

896

693

202

414

272

136

595

Less: Transfer to project development Expenditure (Net)

TOTAL

5,998

736

31,067

4,394

128

26,588

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.

27. EARNINGS PER SHARE (EPS)

ii)

iii)

Net Profit after tax (after adjusting Minority Interest) as per Statement
of Profit and Loss (` in crore)

(Short) provision of tax for earlier years (net) (` in crore)
(` 8,26,209)

(Short) Provision of Tax for earlier years (net) - Minority Interest
[(` 781), Previous Year (` 43,379)]

2013-14

22,493

2012-13

20,879

(54)

iv) Net profit attributable to equity shareholders (` in crore)

22,493

20,825

v) Weighted Average number of equity shares used as denominator for

2,93,82,58,188

294,76,09,853

calculating EPS

vi)

Basic and Diluted Earnings per share (`)

vii) Face Value per equity share (`)

76.55

10.00

70.65

10.00

252

Reliance Industries Limited
Annual Report 2013-14

Growth is Life...

02-33

34-164

165-270

271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

253

Relationship

Associate Companies / Joint Ventures

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
28. RELATED PARTY DISCLOSURES :
(i)

List of related parties and relationships:

Sr.
No.

Name of the Related Party

1. Reliance Industrial Infrastructure Limited

2. Reliance Europe Limited

3. Reliance LNG Limited

Indian Vaccines Corporation Limited

5. Gujarat Chemical Port Terminal Company Limited

6. Reliance Utilities and Power Private Limited

7. Reliance Ports and Terminals Limited

8. Reliance Gas Transportation Infrastructure Limited

9. Reliance Commercial Dealers Limited

10. Reliance Commercial Trading Private Limited

11. Diesel Fashion India Reliance Private Limited

12. Atri Exports Private Limited

13. Shree Salasar Bricks Private Limited

14. N.C. Trading Company Private Limited

15. KCIPI Trading Company Private Limited

16. Prakhar Commercials Private Limited

17. Pepino Farms Private Limited

18. Marugandha Land Developers Private Limited

19. Jaipur Enclave Private Limited

20. Einsten Commercials Private Limited

21. Ashwani Commercials Private Limited

22. Vishnumaya Commercials Private Limited

23. Carin Commercials Private Limited

24. Netravati Commercials Private Limited

25. Rakshita Commercials Private Limited

26. Kaniska Commercials Private Limited

27. Rocky Farms Private Limited

28. Centura Agro Private Limited

29. Fame Agro Private Limited

30. Noveltech Agro Private Limited

31. Honeywell Properties Private Limited

32. Parinita Commercials Private Limited

33. Chander Commercials Private Limited

34. Creative Agrotech Private Limited

35. Reliance-Vision Express Private Limited

252

Reliance Industries Limited

Annual Report 2013-14

Growth is Life...

02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

253

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

Sr.
No.

Name of the Related Party

36. Marks and Spencer Reliance India Private Limited

37. Reliance-GrandVision India Supply Private Limited

38. Office Depot Reliance Supply Solutions Private Limited

39. Supreme Tradelinks Private Limited

40. Reliance Paul & Shark Fashions Private Limited

41. Gaurav Overseas Private Limited

42. Reliance Innovative Building Solutions Private Limited

Relationship

43.

IMG Reliance Limited

44. EFS Midstream LLC

45. Zegna South Asia Private Limited

46. D.E. Shaw India Securities Private Limited

47.

India Gas Solutions Private Limited

48. Algenol LLC

49. Aurora Algae Inc.

50. Extramarks Education Private Limited

51. GenNext Ventures Investment Advisers LLP *

52.

Iconix Lifestyle India Private Limited

53. Brooks Brothers India Private Limited **

54. Reliance Jio Digital Services Private Limited #

55. Reliance Jio Media Private Limited

56. Reliance Jio Infratel Private Limited ##

57. Football Sports Development Private Limited

58. R P Chemicals (Malaysia) Sdn. Bhd.

59. Matrix Genetics LLC

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

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

Formerly known as GenNext Ventures LLP

*
** Formerly known as In Vogue Brand Solutions Private Limited
#
Formerly known as Reliance Jio Cloudworks Private Limited
## Formerly known as Reliance Jio Private Limited

Associate Companies / Joint Ventures

Key Managerial Personnel

Enterprises over which Key Managerial
Personnel are able to exercise
significant influence

254

Reliance Industries Limited
Annual Report 2013-14

Growth is Life...

02-33

34-164

165-270

271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

255

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
(ii) Transactions during the year with related parties :

Nature of Transactions (Excluding reimbursements)

Associates

Sr.
No.

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

Other Income

Purchases / Material Consumed

Electric Power, Fuel and Water

10. Hire Charges

11. Payment to Key Managerial Personnel

12. Sales and Distribution Expenses

13. Rent

14. Professional Fees

15. General Expenses

16. Donations

17. Finance Cost

18.

Investment written off

Balance as at 31st March, 2014
19.

Investments

20. Trade Receivables

21. Capital Advance

22.

Loans and Advances

23. Deposits

24. Unsecured Loans

Key
Managerial
Personnel
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
47
44
-
-
-
-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-
-

(` in crore)

Others

TOTAL

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
529
218
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-
-

44
48
179
210
-
1
7
2
137
(22)
435
385
17
12
1,763
167
1,466
1,325
523
423
47
44
2,885
2,845
8
1
55
56
274
275
529
218
2
5
3
-

4,671
4,264
56
33
8
2
203
101
2,006
1,971
62
55

44
48
179
210
-
1
7
2
137
(22)
435
385
17
12
1,763
167
1,466
1,325
523
423
-
-
2,885
2,845
8
1
55
56
274
275
-
-
2
5
3
-

4,671
4,264
56
33
8
2
203
101
2,006
1,971
62
55

254

Reliance Industries Limited

Annual Report 2013-14

Growth is Life...

02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

255

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

Sr.
No.

Nature of Transactions (Excluding reimbursements)

Associates

25. Trade and Other Payables

26. Finance Lease Obligations

27. Financial Guarantees

28. Performance Guarantees

Note :

Figures in italic represents Previous Year’s amount.

553
257
4
13
1,315
1,213
114
1

Key
Managerial
Personnel
-
-
-
-
-
-
-
-

(` in crore)

Others

TOTAL

-
-
-
-
-
-
-
-

553
257
4
13
1,315
1,213
114
1

Disclosure in respect of Material Related Party Transactions during the year :

Particulars

Relationship

2013-14

2012-13

Purchase of Fixed Assets
Reliance Industrial Infrastructure Limited
Reliance Ports and Terminals Limited
Reliance Gas Transporation and Infrastructure Limited
Gujarat Chemical Port Terminal Company Limited

Purchase / Subscription of Investments
Algenol LLC
Aurora Algae LLC
Matrix Genetics LLC
Extramarks Educations Private Limited

Sale / Transfer/ Redemption of Investments
Reliance Investments Holdings B. V.

Capital Advance Given
Reliance Utilities and Power Private Limited
Reliance Industrial Infrastructure Limited

Net Loans and Advances, Deposits given/ (returned)
Reliance Commercial Trading Private Limited
Reliance Commercial Dealers Limited
Gujarat Chemical Port Terminal Company Limited
Atri Exports Private Limited
Shree Salasar Bricks Private Limited
Ashwani Commericals Private Limited
Vishnumaya Commercials Private Limited
Centura Agro Private Limited
Carin Commercials Private Limited
Kaniska Commercials Private Limited

Associate
Associate
Associate
Associate

Associate

Associate
Associate

Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate

3
36
4
1

-
160
19
-

5
2

1
102
36
-
-
13
1
2
(18)
-

2
46
-
-

26
84
-
100

-
2

1
(69)
27
1
2
17
-
-
-
(1)

256

Reliance Industries Limited
Annual Report 2013-14

Growth is Life...

02-33

34-164

165-270

271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

257

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
Particulars

Relationship

2013-14

2012-13

Revenue from Operations
Reliance Ports and Terminals Limited
Reliance Gas Transportation Infrastructure Limited
Reliance Utilities and Power Private Limited
Reliance Industrial Infrastructure Limited
Reliance Commercial Dealers Limited
Gujarat Chemical Port Terminal Company Limited
Reliance Foundation

Other Income
Reliance Europe Limited
Reliance Utilities and Power Private Limited
Reliance Ports and Terminals Limited
Extramarks Education Private Limited

Purchases / Material Consumed
Reliance Ports and Terminals Limited
Reliance Industrial Infrastructure Limited
Gujarat Chemical Port Terminal Company Limited
R P Chemicals (Malaysia) Sdn. Bhd.

Electric Power, Fuel and Water
Reliance Utilities and Power Private Limited

Hire Charges
Gujarat Chemical Port Terminal Company Limited
Reliance Industrial Infrastructure Limited
Reliance Ports and Terminals Limited
Reliance Gas Transportation Infrastructure Limited

Payment To Key Managerial Personnel
Shri. Mukesh D Ambani
Shri. Nikhil R. Meswani
Shri. Hital R. Meswani
Shri PMS Prasad
Shri P.K.Kapil

Sales & Distribution Expenses
Reliance Ports and Terminals Limited
Gujarat Chemical Port Terminal Company Limited

Rent
Reliance Industrial Infrastructure Limited

Associate
Associate
Associate
Associate
Associate
Associate
Others

Associate
Associate
Associate
Associate

4
97
320
1
12
-
1

4
3
1
9

167
13
4
1,579

7
134
243
-
-
1
-

5
3
1
3

154
12
1
-

Associate

1,466

1,325

Associate
Associate
Associate
Associate

Key Managerial Personnel
Key Managerial Personnel
Key Managerial Personnel
Key Managerial Personnel
Key Managerial Personnel

86
26
226
185

15
12
12
6
2

57
30
140
196

15
11
11
5
2

Associate
Associate

2,869
16

2,835
10

Associate

256

Reliance Industries Limited

Annual Report 2013-14

Growth is Life...

02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

257

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
Particulars

Relationship

2013-14

2012-13

Professional Fees
Reliance Europe Limited
Reliance Industrial Infrastructure Limited
GenNext Ventures Investment Advisers LLP

General Expenses
Reliance Commercial Dealers Limited
Reliance Ports and Terminals Limited

Donations
Dhirubhai Ambani Foundation
Hirachand Govardhandas Ambani Public Charitable Trust
Jamnaben Hirachand Ambani Foundation
HNH Trust and HNH Research Society
Reliance Foundation

Finance Cost
Reliance Industrial Infrastructure Limited
Reliance Europe Limited

Investment written off
Deccan Cargo and Express Logistics Private Limited

Loans & Advances
Gujarat Chemical Port Terminal Company Limited
Reliance Europe Limited
Reliance Commercial Dealers Limited
Reliance Commercial Trading Private Limited

Deposits
Reliance Utilities and Power Private Limited
Reliance Ports and Terminals Limited
Rocky Farms Private Limited
Chander Commercials Private Limited
Honeywell Properties Private Limited
Parinita Commercials Private Limited
Creative Agrotech Private Limited
Ashwani Commercials Private Limited
Einsten Commercials Private Limited
Vishnumaya Commercials Private Limited
Netravati Commercials Private Limited
Fame Agro Private Limited
Centura Agro Private Limited

Associate
Associate
Associate

Associate
Associate

Others
Others
Others
Others
Others

Associate
Associate

Associate

Associate
Associate
Associate
Associate

Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate

32
19
4

274
-

-
1
8
-
520

1
1

6
8
178
11

350
1,050
29
33
50
6
15
66
43
10
6
3
10

37
19
-

258
17

1
1
8
2
206

4
1

6
8
76
10

350
1,050
29
33
50
6
15
53
43
9
6
3
8

258

Reliance Industries Limited
Annual Report 2013-14

Growth is Life...

02-33

34-164

165-270

271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

259

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
Particulars

Relationship

2013-14

2012-13

Noveltech Agro Private Limited
Rakshita Commercials Private Limited
Carin Commercials Private Limited
Prakhar Commercials Private Limited
Pepino Farms Private Limited
Kaniska Commercials Private Limited
Gaurav Overseas Private Limited
Gujarat Chemical Port Terminal Company Limited
Shree Salasar Bricks Private Limited
Atri Exports Private Limited
Jaipur Enclave Private Limited
Marugandha Land Developers Private Limited

Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate

3
6
77
48
1
22
17
99
33
19
4
5

3
6
95
48
1
22
17
63
33
19
4
5

29.

(a) Net Quantities of Company’s interest (on gross basis) in proved reserves and proved developed reserves :

Reserves in India

Reserves outside India
(North America)

Proved Reserves
(Million MT)

Proved Developed
Reserves (Million MT)

Proved Reserves
(Million MT)

Proved Developed
Reserves (Million MT)

2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13

Oil:

Beginning of the year

Revision of estimates

Production

2.46

0.47

3.06

1.82

0.73

(0.46)

(0.60)

(0.46)

Closing balance for the year

2.47

2.46

2.09

2.42

14.63

(0.60)

1.82

7.02

(1.14)

20.51

7.85

7.59

(0.81)

14.63

3.62

3.60

(1.14)

6.08

2.16

2.27

(0.81)

3.62

Reserves in India

Reserves outside India
(North America)

Proved Reserves
(Million M3*)

Proved Developed
Reserves (Million M3*)

Proved Reserves
(Million M3*)

Proved Developed
Reserves (Million M3*)

2013-14 2012-13 2013-14 2012-13 2013-14 2012-13 2013-14 2012-13

Gas:

Beginning of the year

97,285 1,03,958

18,470

25,159

33,904

12,323

10,583

Revision of estimates

(7,195)

834

17,436

22,952

9,027

5,837

6,116

Production

(3,860)

(6,732)

(3,860)

(6,732)

(2,265)

(1,371)

(2,265)

(1,371)

Closing balance for the year

86,230

97,285

15,444

18,470

49,075

33,904

17,345

10,582

* 1 cubic meter (M3) = 35.315 cubic feet, 1 cubic feet = 1000 BTU and 1 MT = 7.5 bbl

(b)

258

Reliance Industries Limited

Annual Report 2013-14

Growth is Life...

02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

259

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
30. CONTINGENT LIABILITIES AND COMMITTMENTS

(` in crore)

As at
31st March, 2014

As at
31st March, 2013

(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

(i)

Liability in respect of bills discounted with Banks (Including
third party bills discounting)

(a) In respect of joint ventures

(b) In respect of others

(II) Commitments

(A)

Estimated amount of contracts remaining to be executed on
capital account and not provided for:

(a)

(b)

In respect of Joint Ventures

In respect of others

(B) Uncalled Liability on Shares and Other Investments Partly paid

Sales tax deferral liability assigned

414

1,532

1,390

239

700

7,273

4,970

1,734

3,159

229

160

5,309

3,961

1,174

44,069

388

448

15,547

243

1,563

2,345

(III) The Income-Tax assessments of the Company have been completed up to Assessment Year 20 10-11. The disput-
ed demand outstanding up to the said Assessment Year is ` 1,207 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.

31. FINANCIAL AND DERIVATIVE INSTRUMENTS

a) Derivative contracts entered into by the Company and outstanding as on 31st March, 2014

(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, 2014 amount to ` 1,15,654 crore (Previous Year ` 1,29,553 crore).

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261

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014

Category wise break up is given below :

Sr.
No.

Particulars

Forward Contracts

Currency Swaps

Interest Rate Swaps

Option

(ii) For hedging commodity related risks :

Category wise break up is given below :

As at 31st March, 2014

(` in crore)
As at 31st March, 2013

Amount
(` in crore)
76,715

2,797

33,726

2,416

Amount
(` in crore)
89,621

4,444

33,181

2,307

Sr.
No.

Particulars

Petroleum
product
sales

As at 31st March, 2014

Crude Oil
purchases

Other
products

Petroleum
product
sales

As at 31st March, 2013

Crude oil
purchases

Other
products

Forward swaps

Futures

Spreads

Option

(in Kbbl)

16,944

6,737

35,456

21,321

7,066

86,016

36,550

(in kg)

2,225

(in Kbbl)

7,334

6,259

44,900

16,575

5,488

50,366

23,895

(in Kg)

1,101

In addition, the Company has net margin hedges outstanding for contracts relating to petroleum product
sales of 1,05,627 kbbl (Previous Year 85,168 kbbl).

Foreign Currency exposures that are not hedged by derivative instruments as on 31st March 2014 amount to
` 65,612 crore (Previous Year ` 79,912 crore). The unhedged exposures are naturally hedged by future foreign
currency earnings and earnings linked to foreign currency.

32.

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, 2014

As at
31st March, 2013

170

373

111

459

530

144

197

333

406

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261

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
33. 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, 2014 to 31st March, 2014 in respect of subsidiaries / associates
having financial year ended 31st December, 2013.

34. SEGMENT INFORMATION:

The Company has identified three reportable segments viz. Petrochemicals, Refining and Oil & Gas. Segments have
been identified and reported taking into account nature of products and services, the differing risks and returns and
the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the
accounting policy of the Company with following additional policies for segment reporting.

Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of
the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on
reasonable basis have been disclosed as “Unallocable”.

Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax
related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been
disclosed as “Unallocable”.

(i)

Primary Segment Information :

Particulars

Petrochemicals

Refining

Oil and Gas

Others

Unallocable

TOTAL

2013-14

2012-13

2013-14

2012-13

2013-14

2012-13

2013-14

2012-13

2013-14

2012-13

2013-14

2012-13

(` in crore)

Segment Revenue

External Turnover

1,01,562

94,137

3,15,574

2,90,427

10,888

11,100

18,315

Inter Segment Turnover

2,456

90,278

82,496

108

GROSS TURNOVER

1,04,018

94,177

4,05,852

3,72,923

10,902

11,208

Less: Excise duty / Service Tax
recovered

NET TURNOVER

Segment Result before
Interest and Taxes

Less: Interest Expense

Add: Interest Income

7,479

6,807

3,703

4,012

199

198

96,539

8,403

87,370

4,02,149

3,68,911

7,159

13,392

12,815

10,703

2,811

11,010

3,668

2,512

20,827

498

20,329

1,178

12,728

1,850

14,578

313

14,265

323

Profit Before Tax

8,403

7,159

13,392

12,815

2,811

3,668

1,178

323

4,46,339

4,08,392

4,46,339

4,08,392*

11,879

11,330

4,34,460

3,97,062

908

(101)

26,692

23,864

3,836

5,907

2,979

5,929

286

3,463

5,816

2,252

5,327

3,836

5,907

28,763

5,929

286

3,463

5,816

26,217

5,327

Current Tax

Deferred Tax

Profit after Tax (before
adjustment for Minority Interest)

Add: Share of (Profit) / Loss
transferred to Minority

Profit after Tax (after adjustment
for Minority Interest)

Other Information

Segment Assets

Segment Liabilities

Capital Expenditure

Depreciation and Amortisation

Non Cash Expenses other than
depreciation and Amortisation

8,403

7,159

13,392

12,815

2,811

3,668

1,178

323

(3,236)

(3,079)

22,548

20,886

(19)

(14)

(36)

(55)

(7)

8,403

7,159

13,373

12,801

2,811

3,668

1,142

330

(3,236)

(3,079)

22,493

20,879

57,596

48,889

1,19,030

1,08,419

67,318

53,067

58,372

35,091

1,26,527

1,16,891

4,28,843

3,62,357

9,843

8,690

2,262

6,929

8,134

2,058

51,283

17,572

4,404

40,998

4,219

3,748

6,102

3,778

4,434

17,954

13,739

23,634

3,881

4,028

379

2,571

5,835

454

3,796

1,227

275

3,208

806

258

75,243

69,077

11,201

57,454

32,292

11,232

*Total Gross Turnover is after elimination of inter segment turnover of ` 95,260 crore (Previous Year ` 84,494 crore).

(ii)

Inter segment pricing are at Arm’s length basis.

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263

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
(iii) As per Accounting Standard on Segment Reporting (AS-17), the Company has reported segment information on

consolidated basis including businesses conducted through its subsidiaries.

(iv) 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:

l Textile

l Retail Business

l SEZ development

l Telecom / Broadband Business

(vi) Secondary Segment Information:

Segment Revenue – External Turnover

- Within India

- Outside India

Total Revenue

Segment Assets

- Within India

- Outside India

Total Assets

Segment Liability

- Within India

- Outside India

Total Liability

Capital Expenditure

- Within India

- Outside India

Total Expenditure

2013-14

1,41,880

3,04,459

4,46,339

3,77,905

50,938

4,28,843

71,841

3,402

75,243

56,521

12,556

69,077

(` in crore)

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

262

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263

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
35. 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 Haryana SEZ Limited

Reliance Retail Limited #

Reliance Retail Insurance Broking Limited

Reliance Dairy Foods Limited

Reliance Exploration & Production DMCC *

Reliance Retail Finance Limited

Reliance Retail Ventures 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

Reliance Brands Limited

Reliance Trading Limited **

Reliance Lifestyle Holdings Limited

Delight Proteins Limited

Reliance F&B Services Limited

Strategic Manpower Solutions Limited

Reliance Food Processing Solutions Limited

Reliance Vantage Retail Limited

Wave Land Developers Limited

Reliance-GrandOptical Private Limited

Reliance Universal Commercial Limited

Reliance Petroinvestments Limited

Reliance Global Commercial Limited

Country of
Incorporation

Proportion of
ownership interest

India

U.A.E.

India

U.A.E.

India

Australia

Kenya

Rwanda

Tanzania

Uganda

Zanzibar

Mauritius

Kenya

Malaysia

India

Kenya

India

100.00%

92.50%

94.40%

100.00%

94.40%

100.00%

94.45%

94.40%

100.00%

76.00%

100.00%

94.45%

94.40%

94.45%

94.40%

100.00%

94.40%

100.00%

94.40%

100.00%

264

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Shareholders' Referencer

265

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
Name of the Subsidiaries

Country of
Incorporation

Proportion of
ownership interest

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

India

Netherlands

India

U.K.

India

Reliance Global Energy Services (Singapore) Pte. Limited

Singapore

Reliance Polyolefins Limited

Reliance Aromatics and Petrochemicals Limited

Reliance Energy and Project Development Limited

Reliance Chemicals Limited

Reliance Universal Enterprises Limited

Reliance Review Cinema Limited

Reliance Nutritious Food Products Limited^

RIL USA Inc.*

Reliance Commercial Land & Infrastructure Limited

Reliance Corporate IT Park Limited

Reliance Eminent Trading & Commercial Private Limited

Reliance Progressive Traders Private Limited

Reliance Prolific Traders Private Limited

Reliance Universal Traders Private Limited

Reliance Prolific Commercial Private Limited

Reliance Comtrade Private Limited

Reliance Ambit Trade Private Limited

Reliance Petro Marketing Limited

LPG Infrastructure (India) Limited

Reliance Corporate Centre Limited

Reliance Convention and Exhibition Centre Limited

Central Park Enterprises DMCC *

India

U.S.A

India

U.A.E

Reliance International B. V. (Liquidated as on 18th March, 2014)

Netherlands

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*

India

U.S.A

India

Mauritius

U.S.A

100.00%

72.00%

100.00%

94.40%

100.00%

94.40%

100.00%

98.90%

100.00%

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Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
Name of the Subsidiaries

Country of
Incorporation

Proportion of
ownership interest

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 Style Fashion India Private Limited

GenNext Innovation Ventures Limited

Infotel Telecom Limited

Reliance Styles India Limited

Rancore Technologies Private Limited

Reliance Sibur Elastomers Private Limited

Surela Investment and Trading Private Limited

Model Economic Township Limited

Delta Corp East Africa 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.*

Reliance Jio Electronics Private Limited

Reliance Jio Infocomm USA Inc. *

Reliance Jio Infocomm UK Limited *

Reliance Clothing India Private Limited

Reliance Marcellus Holding LLC *

Reliance Agri Ventures Private Limited

Reliance World Trade Private Limited

#
##
**
^
*

Formerly known as Reliance Fresh Limited
Formerly known as Reliance Commercial Associates Limited
Formerly known as Reliance Trends Limited
Formerly known as Two Sisters Foods India Limited
Subsidiary Company having 31st December as a reporting date.

U.S.A

India

U.S.A

India

Kenya

U.K.

U.S.A.

India

Singapore

Brazil

India

U.S.A.

U.K.

India

U.S.A.

India

100.00%

94.45%

100.00%

98.90%

94.45%

98.90%

74.90%

100.00%

92.50%

58.80%

49.98%

100.00%

94.40%

98.90%

100.00%

51.00%

98.90%

94.40%

100.00%

94.40%

100.00%

266

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Shareholders' Referencer

267

Notes on Consolidated Financial Statements
for the Year ended 31st March, 2014
36. The significant Associates / Joint Ventures considered in the consolidated financial statements are:

Name of the Associates / Joint Ventures

Country of Incorporation

Reliance Industrial Infrastructure Limited
Reliance Europe Limited #
Reliance LNG Limited
Gujarat Chemical Port Terminal Company Limited
Indian Vaccines Corporation 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 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
GenNext Ventures Investment Advisers LLP ^
Algenol LLC #
Aurora Algea Inc. #
Iconix Lifestyle India Private Limited
Brooks Brothers India Private Limited *
Reliance Jio Digital Services Private Limited**
Reliance Jio Media Private Limited
Reliance Jio Infratel Private Limited***
Matrix Genetics LLC #
Football Sports Development Private Limited
^
Formerly known as GenNext Ventures LLP
Formerly known as In Vogue Brand Solutions Private Limited
*
Formerly known as Reliance Jio Cloudworks Private Limited
**
Formerly known as Reliance Jio Private Limited
***
Associate Company having 31st December as a reporting date.
#

India
U.K.
India
India
India
India
India
India
India
India
India
India
India
India
India
U.S.A
India
India
India
India
India
India
India
U.S.A.
U.S.A.
India
India
India
India
India
U.S.A.
India

Proportion of
ownership interest
45.43%
50.00%
45.00%
41.80%
33.33%
50.00%
47.20%
47.20%
46.25%
50.00%
46.28%
50.00%
46.28%
47.23%
50.00%
49.90%
50.00%
50.00%
38.46%
46.25%
50.00%
50.00%
50.00%
42.18%
44.58%
47.23%
46.28%
50.00%
50.00%
50.00%
30.63%
50.00%

As per our Report of even date

For and on behalf of the Board

For Chaturvedi & Shah
Chartered Accountants

For Deloitte Haskins & Sells LLP
Chartered Accountants

For Rajendra & Co.
Chartered Accountants

D. Chaturvedi
Partner

A. B. Jani
Partner

A.R. Shah
Partner

Mumbai
Date : April 18, 2014

Alok Agarwal
Chief Financial Officer

K. Sethuraman
Company Secretary

- Chairman & Managing Director

Executive Directors

Directors

M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Dr. D.V. Kapur
M.P. Modi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai

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Shareholders' Referencer

Financial Information of Subsidiary Companies

Name of Subsidiary Company

Reporting
Currency

Capital

Reserves

Total Assets

Total
Liabilities

Invest
ments

Turnover/
Total
Income

Profit Before
Taxation

Provision for
Taxation

Profit After
Taxation

Proposed
Dividend

149.06

1,070.95

22,420.37

2,686.52

955.59

2.69

2,423.03

2,461.23

1,282.12

164.56

2.33

1,183.78

1,715.97

631.26

54.44

177.81

(151.11)

USD MN

28.77

(24.45)

276.95

44.81

276.95

44.81

2,911.02

471.00

8.27

66.04

18.14

(39.25)

(6.35)

10.49

2.50

8.27

55.55

15.64

(39.25)

(6.35)

4,989.54

263.79

8,657.09

426.89

12,751.95

395.85

123.78

272.07

(50.17)

5,411.11

6.12

(0.64)

Sr.
No.

Reliance Industrial Investments and
Holdings Limited

Reliance Ventures Limited

Reliance Strategic Investments
Limited

Reliance Industries (Middle East)
DMCC

Reliance Retail Limited
(Formerly Reliance Fresh Limited)

Reliance Haryana SEZ Limited

Reliance Retail Insurance Broking
Limited

Reliance Dairy Foods Limited *

Reliance Exploration & Production
DMCC

Reliance Retail Finance Limited

Reliance Retail Ventures Limited

Reliance Financial Distribution and
Advisory Services Limited *

RIL (Australia) Pty Limited

INR

AUD MN

0.05

4.00

0.25

3.90

9.61

2,707.37

(2141.91)

USD MN

438.05

(346.56)

2.02

6,000.00

99.80

(2.26)

8.63

268.23

730.91

118.26

101.82

268.23

730.91

118.26

101.82

5,997.75

0.12

36.22

6.55

1.27

24.90

(36.44)

(6.59)

0.17

0.03

0.17

0.03

14 Gapco Kenya Limited

INR

104.34

401.47

2,463.51

15 Gapco Rwanda Limited

16 Gapco Tanzania Limited

KSH MN

1,459.54

5,615.75

34,459.56

INR

FRW MN

INR

4.16

448.50

110.97

(4.03)

11.76

(434.72)

1,268.42

496.60

994.27

TZS MN

29,910.00

1,33,855.00

2,67,998

17 Gapco Uganda Limited

INR

21.61

115.93

172.74

USH MN

8,750.10

46,937.19

69,935.86

(1.54)

8.10

(415.35)

2,182.85

(63.97)

(10.35)

(6.66)

(93.14)

338.20

54.72

1.96

27.46

54.72

1.96

27.46

1,326.59

4,018.73

703.67

2,131.67

18 Gapoil (Zanzibar) Limited

19 Gulf Africa Petroleum Corporation

Transenergy Kenya Limited

Recron (Malaysia) Sdn Bhd

Reliance Payment Solutions Limited

Reliance Brands Limited

Reliance Trading Limited
(Formerly Reliance Trends Limited)

Reliance Lifestyle Holdings Limited

INR

TZS MN

INR

USD MN

INR

KSH MN

INR

RM MN

INR

1.86

500.00

135.97

22.00

8.58

120.00

213.39

113.19

8.89

80.86

1.05

0.05

2.45

0.01

101.80

18.67

1.27

0.20

1.07

535.71

0.05

9.49

9,877.23

1,38,162.37

50.28

(42.18)

(60.88)

(9.85)

(0.00)

(0.04)

(1.05)

(0.22)

(0.04)

5.50

76.88

(4.75)

(14.34)

1.88

26.30

0.93

(27.84)

(60.88)

(9.85)

(0.00)

(0.04)

(1.05)

(0.22)

(0.04)

3.62

50.58

(5.68)

5,423.44

(512.34)

100.05

(612.39)

6,494.76

88.63

32.46

56.18

17,50,609.00

23,890.00

8,748.00

15,142.00

511.17

11.12

3.18

7.94

2,06,949.60

4,501.67

1,287.12

3,214.55

0.07

19.12

(0.27)

(71.84)

(7.11)

(1.15)

(0.13)

(1.85)

6,713.47

(245.25)

3,561.05

(130.09)

(85.23)

(45.21)

0.00

(12.49)

(0.27)

(71.84)

(7.11)

(1.15)

(0.13)

(1.85)

(160.02)

(84.88)

(0.06)

(23.55)

(1.39)

(71.93)

13.18

445.37

13.18

445.37

0.51

0.06

163.11

101.82

(0.06)

(36.04)

1.09

6.61

(19.23)

83.60

156.78

0.23

0.04

0.19

94.60

(8.24)

As on 31.12.2013: 1 EUR = ` 85.1025, 1 US $ = ` 61.8050, 1 RM = ` 18.8525 , 1 KSH = ` 0.7149, 1 FRW = ` 0.0927, 1 TZS = ` 0.0371, 1 USH = ` 0.0247, 1 BRL = ` 26.3898, 1 GBP = ` 102.14;
Exchange Rate as on 31.3.2014, 1 EUR = ` 82.6850, 1 US $ = ` 59.9150, 1 Aus $ = ` 55.2975, 1 KSH = ` 0.6931, 1 SGD = ` 47.5825, 1 GBP = ` 99.7650.
* Financial Information is based on Unaudited Results.

267

` in crore

Country

India

U.A.E

India

U.A.E

India

Australia

Kenya

Rwanda

Tanzania

Uganda

Zanzibar

Mauritius

Kenya

Malaysia

India

268

Reliance Industries Limited
Annual Report 2013-14

Growth is Life...

02-33

34-164

165-270

271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

269

Financial Information of Subsidiary Companies

Sr.
No.

Name of Subsidiary Company

Reporting
Currency

Capital

Reserves

Total Assets

Total
Liabilities

Invest ments

Turnover/
Total Income

Profit Before
Taxation

Provision for
Taxation

Profit After
Taxation

Proposed
Dividend

26 Delight Proteins Limited *

Reliance F&B Services Limited *

Strategic Manpower
Limited

Solutions

Reliance Food Processing Solutions
Limited *

Reliance Vantage Retail Limited

31 Wave Land Developers Limited

INR

0.11

0.06

6.21

0.00

0.05

(26.05)

13.76

11.97

42.36

13.76

11.97

42.36

0.01

0.00

49.70

25.28

367.10

(3.85)

(0.26)

0.01

0.33

1.18

4.21

0.01

1.57

(17.61)

0.56

(43.01)

123.59

74.08

83.65

198.24

83.65

198.24

KSH MN

1,783.21

1,068.89

2,860.13

0.03

38.52

(2.14)

37.62

555.82

542.80

7.36

0.00

1.82

26.33

(11.21)

(0.26)

0.01

(17.61)

(2.14)

35.80

516.47

174.77

195.90

184.47

4.47

0.04

4.49

0.04

4.49

2.24

1.98

4.49

2.24

1.98

680.66

82.32

10.64

9.99

2.10

23.47

15..86

1.59

82.32

10.64

9.99

2.10

23.47

15.86

1.59

4.47

4.51

0.02

0.05

(0.02)

0.05

8.88

0.05

0.06

0.00

0.01

1.61

0.05

(0.01)

665.61

80.50

0.05

7.14

1.50

14.64

1.77

(0.01)

1.09

0.23

23.00

(1.49)

4.99

0.50

3.39

0.34

(0.00)

0.00

0.02

0.00

4.33

15.01

0.83

0.10

10.28

2.16

0.02

26.44

2.65

30.66

(0.00)

(0.39)

(0.00)

(0.02)

0.01

(6.04)

(0.73)

(0.00)

0.95

0.20

(0.60)

2.00

0.20

2.78

(0.00)

0.00

0.05

0.01

0.50

0.05

0.93

(0.00)

(0.39)

(0.00)

(0.02)

0.00

(6.04)

(0.73)

(0.00)

0.90

0.19

(0.60)

1.50

0.15

1.85

13.26

2,583.50

2,601.99

2,601.92

4.52

2,705.83

2,781.37

2,781.36

0.02

(0.01)

(0.00)

(0.01)

1.01

951.80

1,256.24

1,255.99

7.58

2,598.64

2,606.22

2,604.91

13.26

3,403.43

3,416.69

3,416.56

0.05

(0.05)

0.36

0.01

0.02

1.64

(0.00)

0.01

(0.03)

INR

12.16

(11.22)

1.00

0.08

0.01

(1.19)

INR

51.26

4,122.25

5,561.15

79.72

1.02

0.00

(0.00)

0.00

0.01

1.68

(0.01)

(0.00)

0.01

(0.03)

(1.19)

0.28

6.75

0.29

8.43

INR

EUR MN

INR

SGD MN

INR

GBP MN

INR

Reliance-GrandOptical
Limited

Private

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
(Singapore) Pte. Ltd.

Kanhatech Solutions Limited

Reliance Global Energy Services
Limited

Reliance Polyolefins Limited

Reliance Aromatics and
Petrochemicals Limited

Reliance Energy and Project
Development Limited

Reliance Chemicals Limited

Reliance
Limited

Universal

Enterprises

Reliance Review Cinema Limited *

Reliance Nutritious Food Products
Limited *
(Formerly Two Sisters Foods India
Limited)

Reliance Commercial Land &
Infrastructure Limited

Reliance Corporate IT Park Limited

INR

2,976.32

(112.25)

4,425..52

4.26

4,038.97

Reliance Eminent Trading &
Commercial Private Limited

INR

14.67

2,044.81

2,282.32

0.32

(6.49)

` in crore

Country

India

Kenya

India

Netherlands

India

Singapore

India

U K

India

0.86

0.18

268

Reliance Industries Limited

Annual Report 2013-14

Growth is Life...

02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

Financial Information of Subsidiary Companies

Name of Subsidiary Company

Reporting
Currency

Capital

Reserves

Total Assets

Total
Liabilities

Invest ments

Turnover/
Total Income

Profit Before
Taxation

Provision for
Taxation

Profit After
Taxation

Proposed
Dividend

13.96

1,726.21

2,310.22

0.00

3.71

(16.21)

Sr.
No.

Reliance Progressive Traders Private
Limited

Reliance Universal Traders Private
Limited

Reliance Prolific 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 *

RIL USA Inc.

62 Central Park Enterprises DMCC

Reliance Corporate Services Limited *

Reliance Corporate Centre Limited *

Reliance Convention and Exhibition
Centre Limited *

Indiawin Sports Private Limited

Reliance Holding USA, Inc.

INR

USD MN

INR

USD MN

INR

USD MN

10.12

39.26

127.18

12.87

1,430.23

2,519.95

1.66

1.48

1.93

4.05

0.05

18.54

3.00

0.62

0.10

0.06

0.05

2.65

0.31

0.05

330.60

398.83

241.39

465.63

8.16

10.98

44.31

7.17

(0.99)

(0.16)

(0.01)

(0.00)

243.07

507.12

51.52

155.90

243.07

507.12

51.52

155.90

1,465.46

237.11

0.19

0.03

120.36

0.07

0.19

0.03

120.36

0.07

111.90

(101.05)

140.55

3,239.69

30,990.57

524.18

5,014.25

0.00

111.07

27.45

746.36

120.76

Reliance Marcellus LLC

INR

1,140.61

(517.62)

13,717.19

Reliance Jio Infocomm Limited

Reliance Strategic (Mauritius) Limited *

Reliance Eagleford Midstream LLC

USD MN

184.55

INR

USD MN

INR

USD MN

23,072.00

0.00

289.25

46.80

Reliance Eagleford Upstream LLC

INR

1,411.50

USD MN

228.38

Reliance Eagleford Upstream GP LLC

INR

USD MN

0.25

0.04

(83.75)

(27.39)

0.00

2,219.43

41,910.98

0.06

323.43

1,662.43

1,661.87

52.33

(0.25)

(0.04)

(0.02)

(0.00)

268.98

268.89

13,377.88

1,411.19

2,164.53

228.33

0.19

0.03

0.19

0.03

0.12

0.02

INR

1,411.32

2,449.52

18,830.13

USD MN

228.35

396.33

(0.03)

3,046.70

0.09

371.75

3,636.38

(162.67)

4,790.94

(26.32)

0.20

775.17

8.34

775.17

8.34

0.05

1.25

621.82

100.61

0.05

3.24

1,430.17

1,433.41

1,433.38

Reliance Eagleford Upstream
Holding LP

75 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 Style Fashion India Private
Limited *

81 GenNext
Limited *

Innovation

Ventures

INR

USD MN

INR

1.01

(11.06)

15.16

0.05

(0.01)

0.05

14.04

(2.68)

0.00

(0.00)

(2.23)

0.03

0.10

0.05

252.68

479.22

26,690.61

4,318.52

220.87

706.25

114.27

0.04

11.72

(0.66)

(0.01)

(0.20)

0.79

3.61

75.96

12.29

(0.25)

(0.04)

(0.00)

(5.04)

(44.69)

(7.23)

(283.01)

(45.79)

(10.51)

(0.12)

(0.02)

199.01

32.20

(0.06)

(0.01)

(0.00)

4,013.18

1,073.80

649.33

0.02

339.68

54.96

12.68

18.09

173.74

(0.17)

(0.04)

(96.23)

(15.57)

0.06

9.57

269

` in crore

Country

India

USA

U.A.E

India

USA

India

Mauritius

USA

India

USA

India

3.87

0.01

0.00

0.25

0.65

26.39

4.27

249.57

40.38

0.02

0.01

(16.21)

(2.23)

7.85

(0.67)

(0.01)

(0.20)

0.54

2.96

49.63

8.03

(0.25)

(0.04)

(0.00)

(5.04)

(294.25)

(47.61)

(283.01)

(45.79)

(10.51)

(0.12)

(0.02)

199.01

32.20

(0.06)

(0.01)

(0.00)

1,073.80

173.74

(0.17)

(0.04)

(96.23)

(15.57)

0.04

9.56

(2.68)

(0.00)

270

Reliance Industries Limited
Annual Report 2013-14

Growth is Life...

02-33

34-164

165-270

271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders' Referencer

271

Financial Information of Subsidiary Companies

Name of Subsidiary Company

Reporting
Currency

Capital

Reserves

Total Assets

Total
Liabilities

Invest ments

Turnover/
Total Income

Profit Before
Taxation

Provision for
Taxation

Profit After
Taxation

Proposed
Dividend

Sr.
No.

Reliance Styles India Limited *

Infotel Telecom Limited

Rancore
Limited

Technologies

Private

85 Achman Commercial Private Limited *

Reliance Sibur Elastomers Private
Limited

87 Model Economic Township Limited

88 Affinity Names Inc *

Reliance Aerospace Technologies
Limited

Reliance Gas Pipelines Limited

Surela Investment and Trading
Private Limited

Delta Corp East Africa Limited

INR

USD MN

INR

0.05

6.05

0.05

0.06

118.01

0.05

1.48

0.24

0.05

52.98

(0.01)

(0.15)

(0.04)

1.07

7.43

(0.01)

(0.31)

(0.05)

(1.36)

(0.00)

(0.51)

16.26

93 Kaizen Capital LLP

INR

GBP MN

Reliance USA Gas Marketing LLC *

INR

USD MN

0.01

0.00

Reliance Jio Infocomm Pte. Ltd.

INR

133.50

Reliance do Brasil Indústria e
Comércio de Produtos Têxteis,
Químicos, Petroquímicos e
Derivados Ltda.

Reliance Jio Electronics Private
Limited

Reliance Jio Infocomm USA Inc.

INR

USD MN

Reliance Jio Infocomm UK Limited #

INR

100

Reliance Clothing India Private
Limited

101

Reliance Agri Ventures Private Limited *

102

Reliance World Trade Private Limited

103

Reliance Marcellus Holdings LLC

GBP MN

INR

USD MN

KSH MN

764.44

234.63

1,199.83

0.05

1.24

0.20

0.09

35.37

21.60

83.16

0.05

1.24

0.20

0.09

35.37

21.60

83.16

0.01

0.00

0.01

0.00

192.15

31.09

0.21

0.05

31.09

0.21

0.08

0.05

16.01

2.59

0.10

0.01

0.03

0.01

2.59

0.10

0.01

0.03

0.01

(0.43)

(0.07)

(3.72)

0.05

0.00

0.10

0.01

0.05

(0.01)

15.02

2.43

(0.10)

(0.01)

(0.02)

(0.05)

12.28

6,121.21

6,133.51

6,133.50

USD MN

INR

21.60

3.91

BRL MN

1.48

(1.41)

0.08

0.04

1,186.92

0.02

7.97

0.02

7.97

0.04

130.04

68.53

0.11

0.04

1.17

5.90

0.00

(0.00)

0.02

0.04

(1.64)

5.49

(0.00)

(0.31)

(0.05)

(1.36)

(0.00)

(0.22)

94.85

0.01

0.02

(0.00)

0.19

(0.00)

0.01

0.02

(1.64)

5.49

(0.00)

(0.31)

(0.05)

(1.36)

(0.00)

(0.40)

24.04

70.81

69.31

2.52

0.00

278.49

` in crore

Country

India

USA

India

4,018.00

1,368.43

346.81

1,021.62

1,000.00

Kenya

0.84

0.32

0.00

(0.01)

(0.00)

(0.43)

(0.07)

0.05

0.02

(0.01)

(1.36)

(0.22)

(0.10)

(0.01)

(0.00)

0.00

(0.00)

(0.01)

(0.00)

(0.43)

(0.07)

0.05

0.02

(0.01)

(1.36)

(0.22)

(0.10)

(0.01)

(0.00)

U.S.A.

Singapore

Brazil

India

U.S.A.

U.K.

India

U.S.A.

# The first accounting year of the company will be ending on 31st December 2014

270

Reliance Industries Limited

Annual Report 2013-14

Growth is Life...

02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders' Referencer

271

Shareholders’ Referencer

272

Reliance Industries Limited
Annual Report 2013-14

Growth is Life...

02-33

34-164

165-270

271-284

Company Overview

Statutory Reports

Financial Statements

Shareholders’ Referencer

273

Shareholders’ Referencer

AN OVERVIEW
zz The Company has currently around 3 million shareholders

holding Equity Shares.

zz 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 PORTAL System (NASD, USA).

zz The Company’s Equity Shares are the most actively

traded security on both BSE and NSE.

zz The Company’s Equity Shares are under compulsory

trading in demat form only.

zz 97.70% of the Company’s Equity Shares are held

in demat form.

zz Karvy Computershare

(Karvy),
Hyderabad, an ISO 9002 Certified Registrars and Transfer
Agents, is the Registrars and Transfer Agents (R&TA) of
the Company.

Limited

Private

INVESTOR SERVICE AND GRIEVANCE
HANDLING MECHANISM
zz All investor service matters are being handled by
Karvy, the largest Registrar in the country with a large
number of Investor Service Centres across the country,
who discharges investor service functions effectively,
efficiently and expeditiously.

zz The Company has appointed a firm of Chartered
Accountants as Internal Auditors to concurrently audit
the securities related transactions being handled at
Karvy.

zz The Company has prescribed service standards for the
various investor related activities. These standards are
periodically reviewed by the Company.

The service standards set by the Company for
various investor related transactions / activities
are as follows :

Particulars

Sl.
No.
(A) Registration Items
1
2
3
4
5
6

Transfers
Transmission
Transposition
Deletion of Name
Folio Consolidation
Change of Name

Service Standards
(No. of working days)

3
3
3
3
3
3

Particulars

Sl.
No.
7
8
9
10
11
12
13
14

Demat
Remat
Issue of Duplicate Certificate
Replacement of Certificate
Certificate Consolidation
Certificate Split
Change of Address
Bank Mandate / Details
Nomination by security
holders
Power of Attorney by
security holders
(B) Correspondence

7
8

Non-receipt of Annual
Reports
Non-receipt of Dividend
Warrants
Non-receipt of Interest/
Redemption Warrants
Non-receipt of Certificate
Revalidation of Dividend
Warrants
Revalidation of Redemption
Warrants
Multiple Queries
IEPF Letters

1. DEALING IN SECURITIES

Service Standards
(No. of working days)
3
3
15
3
3
3
2
2

4
3

1.1 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 Depository Participant
(DP) in the name of investor for holding and transferring
securities.

Trading Account: An account opened by the broker in the
name of the investor for buying and selling of securities.

Bank Account: A bank account opened in the name of the
investor for debiting or crediting money with respect to
transactions in the securities market.

1.2 What is Delivery Instruction Slip (DIS) and
what precautions one should observe with
respect to DIS?
To give delivery of the securities, the beneficial owner has to
fill in a form called Delivery Instruction Slip (DIS). DIS may be

272

Reliance Industries Limited

Annual Report 2013-14

Growth is Life...

02-33
Company Overview

34-164
Statutory Reports

165-270
Financial Statements

271-284
Shareholders’ Referencer

273

compared to cheque book of a bank account. The following
precautions are to be taken in respect of DIS:

zz Do not leave the terminal unattended while “signed-in”

on the trading system.

zz Ensure that DIS numbers are pre-printed and DP takes
acknowledgment for the DIS booklet issued to the
investor.

zz Protect your personal computer against viruses by

placing a firewall and an anti-virus solution.

zz Do not open email attachments from people you do not

zz Ensure that the account number [client id] is pre-

know.

stamped.

zz 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.

zz Avoid using loose slips.
zz Do not leave signed blank DIS with anyone viz., broker/

sub-broker, DPs or any other person/entity.

zz Keep the DIS book under lock and key when not in use.
zz If only one entry is made in the DIS book, strike out

remaining space to prevent misuse.

zz Personally fill in target account-id and all details in the

DIS.

zz 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.

1.3 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.

1.4 What precautions an online investor must
take?
Investor trading online must take the following precautions:

zz Default password provided by the broker must be

changed before placing the order.

zz The password should not be shared with others and

password must be changed at periodic intervals.

zz Proper understanding of the manner in which the online

trading software has to be operated.

zz Adequate training on usage of software.

1.6 What are the do’s and don’ts while dealing in
securities market?

DO’S
zz Transact only through Stock Exchanges.

zz Deal only through SEBI registered intermediaries.

zz Complete all the required formalities of opening an
account properly (Client registration, Client agreement
forms etc).

zz Ask for and sign “Know Your Client Agreement”.
zz Read and properly understand the risks associated with
investing in securities / derivatives before undertaking
transactions.

zz Assess the risk - return profile of the investment as well
as the liquidity and safety aspects before making your
investment decision.

zz Ask all relevant questions and clear your doubts with

your broker before transacting.

zz Invest based on sound reasoning after taking into
information and on

account all publicly available
fundamentals.

zz Beware of the false promises and to note that there
are no guaranteed returns on investments in the Stock
Market.

zz Give clear and unambiguous instructions to your broker/

sub-broker / DP.

zz Be vigilant in your transactions.
zz Insist on a contract note for your transaction.
zz Verify all details in the contract note, immediately on

receipt.

zz Always settle dues through the normal banking channels

with the market intermediaries.

zz Crosscheck details of your trade with details as available

zz The online trading system has facility for order and trade

on the exchange website.

confirmation after placing the orders.

1.5 What are the other safety measures an online
client must observe?
zz Avoid placing order from shared PCs / through cyber

cafés.

zz Log out after having finished trading to avoid misuse.

zz Do not click “remember me” option while signing in from

shared PCs / through cyber cafes.

zz Scrutinize minutely both the transaction and the holding

statements that you receive from your DP.

zz Keep copies of all your investment documentation.
zz Handle DIS Book issued by DP’s carefully.
zz Insist that the DIS numbers are pre-printed and your

account number (client id) be pre-stamped.

zz In case you are not transacting frequently make use of
the freezing facilities provided for your demat account.

274

zz Pay the margins required to be paid in the time

prescribed.

zz Deliver the shares in case of sale or pay the money in

case of purchase within the time prescribed.

zz Participate and vote

in general meetings either

personally or through proxy.

zz Be aware of your rights and responsibilities.

zz In case of complaints, approach the right authorities for

redressal in a timely manner.

DON’TS
zz Don’t undertake off-market transactions in securities.

zz Don’t deal with unregistered intermediaries.

zz Don’t fall prey to promises of unrealistic returns.

zz Don’t invest on the basis of hearsay and rumours; verify

before investment.

zz Don’t forget to take note of risks involved in the

investment.

be ensured that the Contract Note/Confirmation Memo
contains order number, order time, trade number, trade
time, security descriptions, bought and/or 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.

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.

zz Don’t be misled by rumours circulating in the market.

2. DIVIDEND

zz Don’t blindly

follow media reports on corporate

developments, as some of these could be misleading.

zz Don’t follow the herd or play on momentum - it could

2.1 What are the modes by which the dividend is
paid?
Dividend is paid under four modes viz:

turn against you.

zz Don’t be misled by so called hot tips.

zz Don’t try to time the market.

zz Don’t hesitate to approach the proper authorities for

redressal of your doubts / grievances.

zz Don’t leave signed blank DISs of your demat account

lying around carelessly or with anyone.

zz Do not sign blank DIS and keep them with DP or broker
to save time. Remember your carelessness can be your
peril.

zz Do not keep any signed blank transfer deeds.

COMPANY’S RECOMMENDATIONS TO THE
SHAREHOLDERS / INVESTORS

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
execution of purchase or sale of securities and it should

zz National Electronic Clearing Services (NECS)

zz National Electronic Fund Transfer (NEFT)

zz Direct Credit to shareholders’ account by bank

zz Physical dispatch of Dividend Warrant

2.2 What is payment of dividend through NECS
Facility and how does it operate?
NECS facility is a centralised version of ECS facility. The
NECS system takes advantage of the centralised accounting
system in banks. Accordingly, the account of a bank that is
submitting or receiving payment instructions is debited or
credited centrally at Mumbai. The branches participating in
NECS can, however, be located anywhere across the length
and breadth of the country.

2.3 What are the benefits of NECS (payment
through electronic facilities)?
Some of the major benefits are :

zz Investor need not make frequent visits to his bank for

depositing the physical paper instruments.

zz Prompt credit is given to the bank account of the investor

through electronic clearing.

zz Fraudulent encashment of warrants is avoided.

zz Exposure to delays / loss in postal service are avoided.

zz Issue of duplicate warrants is avoided as there can be no

loss in transit of warrants.

Shareholders’ Referencer (Continued)Reliance Industries LimitedAnnual Report 2013-14Growth is Life...275

2.4 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:

zz to the R&TA of the Company in case the shareholders

hold shares in physical form; and

zz to the concerned DP in case the shareholders hold shares

in demat form.

2.5 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.

is a nation-wide payment system

2.6 What is payment of dividend through NEFT
Facility and how does it operate?
NEFT
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.

2.7 What is payment of dividend through Direct
Credit and how does it operate?
The Company will be appointing a 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.

2.8 What should a shareholder do in case of non-
receipt of dividend?
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.

No duplicate warrants will 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.

2.9 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.

2.10 Why shares should be transferred before
the Book Closure/ Record Date fixed for dividend
payment?
The dividend on shares 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
shares, he must ensure that the shares are transferred to his
demat account before the book closure / record date.

2.11 What are the Statutory provisions governing
unpaid dividend?
As per the Companies Act, 2013, dividend which remains unpaid
or unclaimed for a period of seven years shall be transferred to
the Investor Education and Protection Fund (IEPF).

Further, all shares in respect of which unpaid or unclaimed
IEPF shall also be
dividend has been transferred to
transferred by the Company in the name of IEPF.

The shareholders whose amounts and shares have been
transferred to IEPF, shall be entitled to get refund of the
dividend and claim the transfer of shares from IEPF after
complying with the prescribed procedure under the
Companies Act, 2013.

2.12 Where can the status of unclaimed dividend
not transferred to IEPF account be verified?
The Company has uploaded the details of unpaid
and unclaimed amounts lying with the Company as

02-33 Company Overview165-270 Financial Statements34-164 Statutory Reports271-284 Shareholders’ Referencer276

on June 06, 2013 (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.

2.13 What is the status of unclaimed and unpaid dividend for different years?
The status of unclaimed and unpaid dividend of the Company is captured in Chart 1 below:

Chart 1: Status of unclaimed and unpaid dividend for different years:

Unclaimed Dividend
upto1994-95

Unclaimed Dividend for
1995-96 to 2006-07

Unclaimed Dividend for
2007-08 and thereafter

Transfer of unpaid
dividend

Transferred to General
Revenue account of the
Central Government

Claims for unpaid
dividend

Can be claimed from ROC,
Maharashtra*

Transferred to Central
Government’s Investor
Education and Protection
Fund (IEPF)

Can be claimed from IEPF

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) (i) 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 and (ii) from 1995-96 to 2006-07, from
IEPF after complying with the prescribed procedure under the Act.

Chart 2: Information in respect of unclaimed
and unpaid dividends declared for 2007-08 and
thereafter

Financial year
ended

31.03.2008
31.03.2009
31.03.2010
31.03.2011
31.03.2012
31.03.2013

Date of
declaration of
dividend
12.06.2008
07.10.2009
18.06.2010
03.06.2011
07.06.2012
06.06.2013

Last date for
claiming unpaid
dividend
11.06.2015
06.10.2016
17.06.2017
02.06.2018
06.06.2019
05.06.2020

2.14 What are the provisions relating to 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:

zz No tax is payable by shareholders on dividend. However,
the Company is required to pay dividend tax @ 15% and
surcharge @10% together with education cess @ 2% and
secondary higher education cess @ 1%;

zz 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 secondary higher education
cess @ 1%; Surcharge @ 10% is payable for income
exceeding ` 1 crore in the case of individuals also;

zz No Long Term Capital Gains (LTCG) tax is payable on sale
of shares through a recognised stock exchange, provided
Securities Transaction Tax (STT) has been paid and shares
are sold after 12 months from the date of purchase. In
any other case, lower of the following is payable as long
term capital gain tax:
a) 20% of the capital gain computed after substituting
‘cost of acquisition’ with
‘indexed cost of
acquisition’ together with education cess @ 2%
and secondary higher education cess @ 1% in
the case of ‘individuals’. Surcharge @ 10% is payable
for income exceeding ` 1 crore in the case of
individuals also.

b) 10% of

the capital gain computed before
substituting ‘cost of acquisition’ with ‘indexed cost
of acquisition’ together with education cess @ 2%
and secondary higher education cess @ 1% in
the case of ‘individuals’. Surcharge @ 10% is payable
for income exceeding ` 1 crore in the case of
individuals also.

Shareholders’ Referencer (Continued)Reliance Industries LimitedAnnual Report 2013-14Growth is Life...
277

INITIATIVES TAKEN BY THE COMPANY

Reminder letters to Investors
The Company gives an opportunity to
investors by
sending reminder letters on yearly basis for claiming their
outstanding dividend amount which is due for transfer to
Investor Education and Protection Fund.

zz Lower brokerage is charged by many brokers for trading

in dematerialised securities

zz Periodic status reports and information available on

internet

zz Ease related to change of address of investor

zz Elimination of problems related to transmission of demat

COMPANY’S RECOMMENDATIONS TO THE
SHAREHOLDERS / INVESTORS

zz Ease in portfolio monitoring

zz Ease in pledging the shares

Investors holding the shares in physical form should provide
the National Electronic Clearing Service (NECS) mandate
to the Company’s R&TA 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 Solutions (CBS) to the
Company’s R&TA in case of shares held in physical form and
to the DP in case of shares held in demat form.

3. DEMATERIALISATION/
REMATERIALISATION OF SHARES

3.1 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 retained in fungible form in a
depository by way of electronic balances.

3.2 Why dematerialise shares? Is Trading
Compulsory in 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.

3.3 What are the benefits of Dematerialisation?
zz Elimination of bad deliveries

zz Elimination of all risks associated with physical certificates

zz No stamp duty on transfers

zz Immediate transfer / trading of securities

zz Faster settlement cycle

zz Faster disbursement of non cash corporate benefits like

rights, bonus, etc.

zz SMS alert facility

3.4 What is the procedure for dematerialisation of
shares?

zz Shareholders should submit the duly filled in Demat
Request Form (DRF) along with physical certificate(s) to
the concerned DP.

zz DP intimates the relevant Depository of such requests

through the system.

zz DP submits the DRF and the Certificate(s) to the

Company’s R&TA.

zz The Company’s R&TA confirms the dematerialisation

request from Depository.

zz The Company’s R&TA, after dematerialising

the
certificate(s), updates accounts and informs concerned
depository regarding completion of dematerialisation.

zz Depository updates its accounts and informs the DP.

zz DP updates the demat account of the shareholder.

zz The entire process should be completed within 21 days.

3.5 Can shares held jointly in physical form
be dematerialised, if the sequence of names
mentioned in certificate differs from sequence of
names as per beneficiary account?
Depositories provide “Transposition cum Demat facility” to
help joint holders to dematerialise securities in different
sequence of names. For this purpose, DRF and Transposition
Form should be submitted to the DP.

3.6 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 and credits in their demat accounts. 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.

02-33 Company Overview165-270 Financial Statements34-164 Statutory Reports271-284 Shareholders’ Referencer278

3.7 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.

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.

3.8 What is rematerialisation of shares?
It is the process through which shares held in electronic
form are converted into physical form by issuance of share
certificate(s).

3.9 What is the procedure for rematerialisation of
shares?
zz Shareholders

submit

should

the duly filled
(RRF)

Form

in
the

Rematerialisation Request
concerned DP.

zz DP intimates the relevant Depository of such requests.

zz DP submits RRF to the Company’s R&TA.

zz Depository confirms rematerialisation request to the

Company’s R&TA.

zz The Company’s R&TA updates accounts and prints

certificate(s) and informs the Depository.

zz Depository updates the Beneficiary Account of the
shareholder by deleting the shares so rematerialised.

zz Share certificate(s) is despatched to the shareholder by

Company’s R&TA.

COMPANY’S RECOMMENDATIONS TO THE
SHAREHOLDERS / INVESTORS

Open Demat Account and Dematerialise your
shares
Investors should convert their physical holdings of
securities into demat holdings to reap the benefits of
dematerialisation set out under para 3.3 of this referencer.

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.

Register for SMS alert facility
Investors should register their mobile numbers with DPs
for SMS alert facility. National Securities Depository Limited

4. NOMINATION FACILITY

4.1 What is nomination facility and to whom is it
more useful?

Section 72 of the Companies Act, 2013 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.

4.2 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 SH-13 for initial registration
of nomination and Form SH-14 for cancellation and
variation of nomination as per Companies Act, 2013 to the
Company’s R&TA. The said forms may be downloaded from
the Company’s website, www.ril.com under the section
“Investor Relations”.

if shares are held

However,
in dematerialised form,
nomination has to be registered with the concerned DP
directly, as per the format prescribed by the DP.

4.3 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. An individual having capacity to contract only
can be appointed as a nominee. Minor(s) can, however, be
appointed as a nominee.

4.4 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.

4.5 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

Shareholders’ Referencer (Continued)Reliance Industries LimitedAnnual Report 2013-14Growth is Life...279

holder(s) of the shares is / are the only person(s) recognised
under law as holder(s) of the shares. Surviving joint holder(s)
may appoint a nominee.

4.6 Is nomination form required to be witnessed?

A nomination form must be witnessed.

4.7 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.

4.8 What are the rights of a nominee vis-a-vis
legal heirs of the deceased shareholder?

As per the provisions of Section 72 of the Companies Act,
2013 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.

COMPANY’S RECOMMENDATIONS TO THE
SHAREHOLDERS / INVESTORS

Submit Nomination Form

Investors should register their nominations in case of
physical shares with the Company’s R&TA 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 in
order to be effective. The Form may be downloaded from
the Company’s website www.ril.com under the section
“Investor Relations”.

5. TRANSFER / TRANSMISSION /
TRANSPOSITION / DUPLICATE CERTIFICATES
ETC.

5.1 What is the procedure for transfer of shares in
favour of transferee(s)?

about 3 working days for the Company’s R&TA to process
the transfer from the date of lodgement, although the
statutory time limit fixed for completing a transfer is 15 days
under the Listing Agreement and one month under the
Companies Act, 2013.

5.2 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.

5.3 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
should be resubmitted for effecting transfer. In case the
errors are non-rectifiable, purchaser has recourse to the
seller and/or 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.

5.4 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, the procedure for a normal transfer as mentioned
above needs to be followed.

5.5 How to get shares registered which are
received by way of gift? Does it attract stamp
duty?

Transferee(s) need to send share certificate(s) along with
share transfer deed in the prescribed Form SH-4 as per
Companies Act, 2013, duly filled in, executed and share
transfer stamps affixed, to the Company’s R&TA. It takes

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,

02-33 Company Overview165-270 Financial Statements34-164 Statutory Reports271-284 Shareholders’ Referencer280

of 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.
In case the shares held in demat form are gifted no stamp
duty is payable.

5.6 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.

5.7 What is the procedure for getting physical
shares in the name of legal heir(s), in case of
single holding and nomination is not registered,
in the event of death of sole shareholder?

If the value of shares of the company as on the date of
application is up to ` 2,00,000, the legal heir(s) should
submit the following documents along with a request letter,
transmission form, attested copy of the death certificate
of the deceased shareholder and the share certificate(s)
in original, to the Company’s R&TA for transmission of the
shares in his / their name(s):

zz No objection certificate [NOC] from all legal heir(s)
who do not object to such transmission (or) copy of
Family Settlement Deed duly notarized or attested by a
Gazetted Officer and executed by all the legal heirs of the
deceased holder.

zz Indemnity made on appropriate non judicial stamp

paper – indemnifying the R&TA/Company.

If the value of shares of the company as on the date of
application is more than ` 2,00,000, the legal heir(s) should
submit the following documents along with a request letter,
transmission form, attested copy of the death certificate
of the deceased shareholder and the share certificate(s)
in original, to the Company’s R&TA for transmission of the
shares in his / their name(s):

zz Succession certificate (or) Probate of will (or) Letter of

Administration (or) Court decree.

5.8 What is the procedure for getting demat
shares in the name of legal heir(s), in case of
single holding and nomination is not registered,
in the event of death of sole shareholder?

If the value of shares of the company as on the date of
application is up to ` 5,00,000, the legal heir(s) should
submit the following documents to the DP:

zz Notarized copy of the death certificate

zz Transmission Request Form (TRF)

zz Affidavit – to the effect of the claim of legal ownership

to the shares

zz Deed of indemnity – Indemnifying the depository and

Depository Participants (DP)

zz NOC from legal heir(s), if applicable or family settlement
deed duly executed by all legal heirs of the deceased
beneficial owner

If the value of shares of the company as on the date of
application is more than ` 5,00,000, the legal heir(s) should
additionally submit one of the following documents to the DP:

zz Surety form

zz Succession certificate
zz Probated will
zz Letter of Administration

Note:

As per SEBI Circular dated October 28, 2013, the
timeline for processing the transmission requests by the
DP for securities held in dematerialised mode shall be 7
days and by the Company/R&TA for the securities held
in physical mode shall be 21 days, after receipt of the
prescribed documents from the claimants/legal heirs.

5.9 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 names.

5.10 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

Shareholders’ Referencer (Continued)Reliance Industries LimitedAnnual Report 2013-14Growth is Life...281

of share certificate(s), quoting their folio number and details
of share certificate(s), if available.

The salient features of the Scheme in force from July 1, 1998,
are as under :

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 police station 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.

5.11 What is the procedure to get the share
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.

INITIATIVES TAKEN BY THE COMPANY

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, Company’s 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.

zz This Scheme is available to Indian national residents in
respect of any master folio having holdings up to 49
shares;

zz The holders of Equity Shares in odd lot (less than 50
shares) 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);

zz The odd lot shares offered under the Scheme are sold

through designated brokers in the BSE / NSE;

zz All costs of implementing the Scheme will be borne by

the Company.

COMPANY’S RECOMMENDATIONS TO THE
SHAREHOLDERS / INVESTORS

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.

Opt for Corporate Benefits in Electronic Form

In case of non cash corporate benefits like split of shares /
bonus shares, the holders of shares in physical form must
opt to get the shares in electronic form by providing the
details of demat account to the R&TA.

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 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.

6. UNCLAIMED SHARES

6.1 What are the Regulatory provisions and
procedure governing unclaimed shares lying in
physical form with the Company or its R&TA ?

02-33 Company Overview165-270 Financial Statements34-164 Statutory Reports271-284 Shareholders’ Referencer282

As per Clause 5A of the Listing Agreement with the Stock
Exchanges:

zz Shares issued in dematerialised form pursuant to a
public issue or any other issue, which remain unclaimed
and are lying in the escrow account, shall be credited
to unclaimed shares suspense account in demat form,
opened by the Company with one of the depository
participants, for this purpose.

zz 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 dematerialise
such shares with one of the depository participants.

6.2 What is the status of compliance by the
Company with regard to these provisions?

In terms of Clause 5A of the Listing Agreement, details
relating to unclaimed shares lying in the suspense account
at the beginning of the year, number of shareholders
who had approached the Company claiming for 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 account at the end of the year, have been
set out under Para “Equity Shares in Suspense Account” in
the Corporate Governance Report.

As per Section 124(6) of the Companies Act, 2013, all shares
in respect of which unpaid or unclaimed dividend has been
transferred to IEPF shall also be transferred by the company
in the name of IEPF. However, the shares can be claimed by
the investor after following the prescribed procedure under
the Act.

INVESTOR SERVICING AND GRIEVANCE
REDRESSAL - EXTERNAL AGENCIES

1. 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.

2. 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.

3. 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 4 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.

SEBI has issued guidance to general public about effective
ways to redress their grievances. The guidance lists down
the matters which are considered as complaints and
handled by SEBI, the matters which are not considered as
complaints, how the investor complaints’ are handled by
SEBI, the arbitration mechanism, etc.

4. Stock Exchanges

National Stock Exchange of India Limited (NSE) - NSE has
formed an Investor Grievance Cell (IGC) to redress investors’
grievances electronically. The investors have to log on to
the website of NSE i.e. www.nseindia.com and go to the link
“Investors Service”.

BSE Limited (BSE) - BSE provides an opportunity to the
investors to file their complaints electronically through its
website www.bseindia.com under the “Investor Grievances”.

5. 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

Shareholders’ Referencer (Continued)Reliance Industries LimitedAnnual Report 2013-14Growth is Life...283

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.

Permanent Account Number (PAN)

It has become mandatory to quote PAN before entering
into any transaction in the securities market. The Income
Tax Department of India has highlighted the importance of
PAN on its website: www.incometaxindia.gov.in wherein lot
of queries with respect to PAN have been replied to in the
FAQ section.

Insider Trading

In order to prohibit insider trading and protect the rights of
innocent investors, SEBI has enacted the SEBI (Prohibition
of Insider Trading) Regulations, 1992. As per Regulation 13
of the said Regulations initial and continual disclosures are
required to be made by investors as under:

Initial Disclosure

As per sub-regulation (1), any person who holds more
than 5% shares or voting rights in any listed company shall
disclose to the company in Form A, the number of shares or
voting rights held by such person, on becoming such holder,
within 2 working days of: (a) the receipt of intimation of
allotment of shares; or (b) the acquisition of shares or voting
rights, as the case may be.

Continual Disclosure

As per sub-regulation (3), any person who holds more
than 5% shares or voting rights in any listed company shall
disclose to the company in Form C, the number of shares
or voting rights held and change in shareholding or voting
rights, even if such change results in shareholding falling
below 5%, if there has been change in such holdings from
the last disclosure made under sub-regulation (1) or under
this sub-regulation; and such change exceeds 2% of total
shareholding or voting rights in the company.

Takeover Regulations
SEBI (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011 cast obligation on the investor (acquirer)
to make disclosure w.r.t. acquisition and disposal of shares.
The relevant provisions as contained in the Regulations 29
(1), (2) and (3) are given below:

Disclosure of acquisition

Any acquirer who acquires shares (including convertible
securities) or voting rights in a target company which taken
together with shares or voting rights, if any, held by him
and by persons acting in concert with him in such target
company, aggregating to five per cent or more of the shares
of such target company, should disclose their aggregate
shareholding and voting rights in such target company, to
target company and Stock Exchanges within 2 working days
of the receipt of intimation of the allotment / acquisition, as
the case may be.

Disclosure, in case of change in holding

Any person, who together with persons acting in concert
with him, holds shares or voting rights entitling them to five
per cent or more of the shares or voting rights in a target

02-33 Company Overview165-270 Financial Statements34-164 Statutory Reports271-284 Shareholders’ Referencer284

company, should disclose the number of shares or voting
rights held and change in shareholding or voting rights,
even if such change results in shareholding falling below
five per cent, if there has been change in such holdings from
the last disclosure made; and such change exceeds two per
cent of total shareholding or voting rights in such target
company, to target company and Stock Exchanges within 2
working days of such change.

E-voting

To widen the participation of shareholders in company
decisions, the Securities and Exchange Board of India 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.

Further, the Companies Act, 2013 and Clause 35B of the
Listing Agreement also requires a listed Company to
provide e-voting facility to its shareholders, in respect of all
shareholders’ resolutions, to be passed at General Meetings.

To contribute towards greener environment and to receive
all documents, notices, including Annual Reports and other
communications of the Company, investors are requested
to register their e-mail addresses with Karvy, if shares are
held in physical mode or with their DP, if the holding is in
electronic mode.

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.

SHAREHOLDERS’ GENERAL RIGHTS

zz To receive not less than 21 clear days notice of general

meetings.

zz To receive notice and forms for Postal Ballots in terms
of the provisions of the Companies Act, 2013 and the
relevant Rules issued thereunder.

zz 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.

zz To participate and vote at general meetings either
personally or through proxy (proxy can vote only in case
of a poll).

zz To receive dividends and other corporate benefits like

bonus, rights, etc. once approved.

zz To demand poll on any resolution at a general meeting
in accordance with the provisions of the Companies
Act, 2013.

zz To

inspect statutory registers and documents as

permitted under law.

zz To require the Board of Directors to call an extraordinary
general meeting in accordance with the provisions of the
Companies Act, 2013.

DUTIES / RESPONSIBILITIES OF INVESTORS

zz To remain abreast of corporate developments, company
specific information and take informed investment
decision(s).

zz To be aware of relevant statutory provisions and ensure

effective compliance therewith.

zz To deal with only SEBI registered intermediaries while

dealing in the securities.

zz Not to indulge in fraudulent and unfair trading in
securities nor to act upon any unpublished price
sensitive information.

zz To participate effectively
shareholders’ meetings.

the proceedings of

zz To contribute

the Greener Environment and
accordingly register email addresses to enable the
Company to send all documents / notices including
Annual Reports electronically.

zz To register nominations, which would help the nominees
to get the shares transmitted in their favour without any
hassles.

zz To respond to communications seeking shareholders’

approval through Postal Ballot.

zz To respond to communications of SEBI / Depository/DP /
Brokers / Sub-brokers / Other Intermediaries/ Company,
seeking investor feedback / comments

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.

Shareholders’ Referencer (Continued)Reliance Industries LimitedAnnual Report 2013-14Growth is Life...Members
Feedback Form
2013-2014

CIN: L17110MH1973PLC019786

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

Management’s Discussion
and Analysis Report

Business Responsibility
Report

Report on Corporate
Social Responsibility

Corporate Governance
Report

Directors’ Report

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
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.

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



ATTENDANCE SLIP

CIN: L17110MH1973PLC019786
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.

DP Id*

Client Id*

NAME AND ADDRESS OF THE SHAREHOLDER

Folio No.

No. of Shares

I hereby record my presence at the 40TH ANNUAL GENERAL MEETING of the Company held on Wednesday, June 18, 2014 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
[Pursuant to section 105(6) of the Companies
Act, 2013 and rule 19(3) of the Companies
(Management and Administration) Rules, 2014]

CIN: L17110MH1973PLC019786
Registered Office: 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021.

Name of the member(s):

Registered address:

e-mail Id:

Folio No/ *Client Id:

*DP Id:

I/We, being the member(s) of

shares of Reliance Industries Limited, hereby appoint:

having e-mail id

or failing him

and whose signature(s) are appended below as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the
40th Annual General Meeting of the Company, to be held on Wednesday, June 18, 2014 at 11:00 a.m. at Birla Matushri Sabhagar,
19, New Marine Lines, Mumbai 400 020 and at any adjournment thereof in respect of such resolutions as are indicated below:

** I wish my above Proxy to vote in the manner as indicated in the box below:

Resolutions

1. Consider and adopt:

a) Audited Financial Statement, Reports of the Board of Directors and Auditors

b) Audited Consolidated Financial Statement

2. Declaration of Dividend on Equity Shares

3. Re-appointment of Shri Nikhil R. Meswani who retires by rotation

4. Appointment of Auditors and fixing their remuneration

5. Appointment of Smt. Nita M. Ambani to fill up the vacancy of the retiring director Shri Ramniklal H. Ambani

For

Against

6. Appointment of Shri Adil Zainulbhai as an Independent Director

7. Appointment of Shri Yogendra P. Trivedi as an Independent Director

8. Appointment of Prof. Ashok Misra as an Independent Director

9. Re-appointment of Shri Mukesh D. Ambani as Managing Director

10. Re-appointment of Shri P.M.S. Prasad as a Whole-time Director

11. Payment of Remuneration to Non-Executive Directors

* Applicable for investors holding shares in electronic form.



P.T.O.



Resolutions

12. Payment of Remuneration to Executive Directors

13. Approval of the Remuneration of the Cost Auditors

14. Approval of offer or invitation to subscribe to Non-Convertible Debentures on private placement

15. Adoption of new Articles of Association of the Company



For

Against

Signed this..................... day of..................2014

Signature of shareholder

Affix a
15 paise
Revenue
Stamp

Signature of first proxy holder

Signature of second proxy holder

Signature of third proxy holder

Notes:

(1) This form of proxy in order to be effective should be duly completed and deposited at the Registered Office

of the Company not less than 48 hours before the commencement of the meeting.

(2) A Proxy need not be a member of the Company.

(3) A person can act as a proxy on behalf of members not exceeding fifty and holding in the aggregate not more than
10% of the total share capital of the Company carrying voting rights. A member holding more than 10% of the total
share capital of the Company carrying voting rights may appoint a single person as proxy and such person shall not
act as a proxy for any other person or shareholder.

** (4) 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.

(5) Appointing a proxy does not prevent a member from attending the meeting in person if he so wishes.

(6)

In the case of jointholders, the signature of any one holder will be sufficient, but names of all the jointholders should
be stated.

Growth is Energy
Growth is Value
Growth is Happiness

Growth is Life...

Late Shri Dhirubhai Ambani
Founder Chairman

Strategy at Reliance is about
making prudent choices,
balancing risks and return, building
competitive advantages and
envisioning the future through the
power of innovation.

Playing a role in creating a
happy and prosperous India is
our mandate. Because growth is
energy. Because growth is value.
Because growth is happiness.

Because Growth is Life...

Growth, in all its facets, has

been a distinguishing factor
at Reliance, ever since our

inception. Our philosophy envisions
growth as a universal concept, that
represents multiple possibilities and
touches all aspects of life.

We have taken strategic decisions
in key areas that will drive our
growth and also create better
outcomes for our youthful nation.

From the manufacturing landscape
to high-growth consumer service
sectors, Reliance is making progress
possible each day.

l RF BIJ (Bharat India Jodo)

Hindi newspaper in Braille. Over
3,500 visually impaired benefit
from this fortnightly circulation.

l Sir HN Reliance Foundation

Hospital and Research Centre is
being revamped into a 19-storey,
800,000 square feet world-class
tertiary health care facility.

l ‘Health for All’ initiative was

l Dhirubhai Ambani Scholarship
programme has positively
influenced the lives of more than
10,000 young scholars and their
families so far. The scholarship

l RF was one of the first

ANNUAL REPORT 2013-14

GROWTH
IS

Growth is Energy l Growth is Value
Growth is Happiness l Growth is Life...

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