Reliance Industries Limited
Annual Report 2016

Plain-text annual report

Annual Report 2015-16 Enhancing the quality of life. Starting up to a digital life. “Our dreams have to be bigger. Our ambitions higher. Our commitment deeper. And our efforts greater. This is my dream for Reliance and for India.” Padma Vibhushan Shri Dhirubhai H. Ambani Founder Chairman Reliance has started up a transformative force with a view to digitally empower and enrich Indians with a distinctly digital identity of their very own. Enhancing the quality of life. Starting up to a digital life. Reliance’s businesses and operations have a deep and wide impact across Indian society. Over the past five decades, Reliance has become an integral part of people’s lives, present in their midst, in every moment, keeping them connected, safe and better. Since its inception, Reliance has partnered the nation to develop and grow into its full potential and propel the India growth story forward. From the hydrocarbons sector to new-age consumer businesses, Reliance today has a firm foothold across sectors, driving the economy forward. These pioneering efforts demonstrate Reliance’s unwavering faith in the nation’s potential and purpose. Invigorating India through insightful innovations and strategic investments, Reliance with a select few, has been an architect of the country’s growth trajectory. In its inherent role as a curator of development, Reliance is nurturing India’s digital dream for a bright and brilliant future. Reliance started a transformative force with a view to digitally empower and enrich Indians with a distinctly digital identity of their very own. Reliance also continues to cater to its consumers’ diverse needs through over 150 major products and brands across energy and service sectors. Reliance is proud to have been a catalyst in India’s transformation into an attractive economy globally by directing its investments and focus in areas that will continue to define and shape the new India. Reliance is visibly enhancing the quality of life and starting up to a digital life. In doing so, Reliance is partnering the creation of a new India. Inside this Report Corporate Overview 2 Reliance at a Glance 2 / Key Performance Indicators 3 / Letter to Shareowners 4 / 8 / The Board of Directors 10 / Enhancing the Quality of Life 12 / Making Lives Better 14 / Jio - Starting up to a Digital Life 16 / Jio - Reimagining Digital Life 18 / Nurturing Digital Entrepreneurship 20 / People and Innovation 21 / Research and Technology 22 / An Integrated Approach Towards Sustainable Growth - 5P’s 24 / Strategic Framework and Outcome 26 / Review of Operations 38 / Reliance Foundation 40 / Awards and Recognition 41 / Company Information 42 / Major Products and Brands 53 / Product Flow Chart 54 / Financial Highlights Management Review 55 55 / Management’s Discussion and Analysis 132 / Report on Corporate Social Responsibility Governance 148 148 / Business Responsibility Report 170 / Corporate Governance Report 198 / Auditors’ Certificate on Corporate Governance 206 / Directors’ Report Financial Statements 256 Standalone 257 / Independent Auditors’ Report on Financial Statements 262 / Balance Sheet 263 / Profit and Loss Statement 264 / Cash Flow Statement 266 / Significant Accounting Policies 270 / Notes on Financial Statements Consolidated 314 / Independent Auditors’ Report on Consolidated Financial Statements 318 / Consolidated Balance Sheet 319 / Consolidated Profit and Loss Statement 320 / Consolidated Cash Flow Statement 322 / Significant Accounting Policies on Consolidated Accounts 323 / Notes on Consolidated Financial Statements 374 / Salient Features of Financial Statements of Subsidiary / Associates / Joint Ventures Shareholder Information 380 380 / Shareholders’ Referencer 392 / Notice of Annual General Meeting • • Attendance Slip and Proxy Form Members’ Feedback Form 2015-16 OTHER REPORTS AND INFORMATION: • Corporate sustainability related information ril.com/Sustainability/ CorporateSustainability.aspx • Quarterly results and Analyst Presentations ril.com/InvestorRelations/ FinancialReporting.aspx • Financial statements of subsidiary companies ril.com/InvestorRelations/ Downloads.aspx Scan the QR Code on your smart device to view the Annual Report online at www.ril.com/ar2015-16/index.html Letter to Shareowners / 4 Enhancing the Quality of Life / 10 Management Review / 55 Business Responsibility Report / 148 On the cover: The cover depicts Reliance’s core belief of adding value to the quality of life of all stakeholders through ensuring growth and progress, in addition to better products and services. Reliance endeavours to achieve this through consistent investments and innovations across the energy and consumer businesses. Reliance is building new business of digital services through Jio, the world’s largest start-up, which will herald a transformational ecosystem leading to a digitally-enabled life for all its consumers and stakeholders. Reliance at a Glance US$44.7 billion `2,96,091 crore Annual Revenue US$4.2 billion `27,630 crore Net Profit 2nd Largest Producer of polyester fibre/ yarn, globally 4th Largest Producer of PTA, globally 6th Largest Producer of PX, globally 6th Largest Producer of PP, globally 8th Largest Producer of MEG, globally 151 Major products and brands across energy and service sectors 1,000+ RIL’s Petroleum Retail network outlets currently operational 3,383 Retail stores currently operating across India Jio Deployed the largest amount of spectrum for 4G in India 2 RIL is India’s largest private sector company on key financial parameters. It is a significant global player in the integrated energy value chain, and has a growing presence in the retail and digital services in India. Built on strong values, RIL is steadfastly rooted in the culture of safety, integrity and commitment. RIL is dedicated to its vision of partnering India’s economic growth and social well-being. RIL strives to be a product and service leader across its industries, a great work-place and above all, to create value for its stakeholders and society. BUSINESSES AT A GLANCE* Refining and Marketing All figures in ` crore Revenue 2,34,946 EBIT 23,598 Petroleum Refining Owns and operates two of the world’s largest and most complex refineries with crude processing capacity of 1.24 MMBPD Petrochemicals Revenue 82,410 EBIT 10,221 Polymers, Polyester, Fibre intermediates, Elastomers and Chemicals Integrated petrochemicals player with Top 10 rankings in key products globally and having balanced portfolio of liquid and gas crackers Oil and Gas Revenue 7,527 EBIT 378 Exploration and Production of Oil and Gas Interests in onshore and offshore exploration and production in India and significant presence in US shale Retail Revenue 21,612 EBIT 506 Pan India footprint in Organised Retail Market leader with over 12.8 million sq. ft. of retail space and having presence in over 500 cities Digital Services Pan India spectrum 846.1 MHz Building a countrywide broadband next generation infrastructure to deliver digital content, applications and services Media and Entertainment Revenue 3,403 EBIT 182 Broadcasting and Digital Properties Interests in television, print, internet, film, mobile content and allied businesses *Read more about Consolidated Segment Information on Pg. 363 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Reliance at a Glance Key Performance Indicators Profit and Loss Metrics (Consolidated) (Profit After Tax CAGR of 27.2%)* Turnover ` crore 23.8% y-o-y Profit After Tax ` crore 17.2% y-o-y Earnings Per Share ` 17.1% y-o-y 15-16 14-15 13-14 12-13 11-12 2,96,091 3,88,494 4,46,339 4,08,392 3,68,571 15-16 14-15 13-14 12-13 11-12 27,630 23,566 22,493 20,879 19,724 15-16 14-15 13-14 12-13 11-12 93.8 80.1 76.5 70.7 66.2 Balance Sheet Metrics (Consolidated) (Networth CAGR of 30.6%)* Networth ` crore 11.5% y-o-y Debt Equity Ratio Book Value Per Share ` 11.3% y-o-y 15-16 14-15 13-14 12-13 11-12 2,43,643 2,18,482 1,98,670 1,82,030 1,69,445 15-16 14-15 13-14 12-13 11-12 0.74 0.74 0.70 0.59 0.55 15-16 14-15 13-14 12-13 11-12 826.5 742.3 675.9 619.9 568.9 Social Metrics (Standalone) R&D Expenditure ` crore 3.2% y-o-y Total Recycled Material ’000 tonnes 13.9% y-o-y HSE Expenditure ` crore 16.4% y-o-y 15-16 14-15 13-14 12-13 11-12 1,259 1,220 1,218 1,118 989 15-16 14-15 13-14 12-13 11-12 82.03 71.99 69.15 63.22 64.90 15-16 14-15 13-14 12-13 11-12 337.31 289.75 284.95 281.90 247.13 Shareholders Metrics (CAGR of 31.6% in Market Capitalisation)* Market Capitalisation ` crore 26.9% y-o-y Dividend Per Share ` 5.0% y-o-y 15-16 14-15 13-14 12-13 11-12 * CAGR since IPO i.e. 38 years 3,38,703 2,66,847 3,00,405 2,49,802 2,44,757 15-16 14-15 13-14 12-13 11-12 10.5 10.0 9.5 9.0 8.5 India’s first private sector company to feature in Fortune Global 500 list of ‘World’s Largest Corporations’, currently ranking 215th in terms of revenue and 126th in terms of profit. Reliance continues to feature in the list for the 13th consecutive year. Ranks 238th in the Financial Times’ FT Global 500 2015 list of the world’s largest companies. Ranked 121st on the Forbes Global 2000 list (2016). Continues to be the top ranked and one of the most valued Indian company. 3 148255GovernanceCorporate Overview0254256379Financial Statements55147Management Review380396Shareholder InformationLetter to Shareowners Mukesh D. Ambani Chairman and Managing Director Dear Fellow Shareowners, I am delighted to write you to report yet another year of outstanding achievements for our energy and materials businesses. Despite persisting global economic uncertainty, we have delivered the best operating and financial performance in our history. Our new projects in the hydrocarbons and digital services businesses have made significant progress. We have invested over `1,12,000 crore (US$17 billion) in FY 2015-16, the highest-ever by any corporate in Indian history. This large investment spread across all our businesses will create sustained and significant value for our stakeholders. As we near the end of our largest capital expenditure cycle, we are focused on ensuring a smooth start-up and stabilisation of the new growth platforms across our hydrocarbon and consumer businesses. Global economic activity remained muted during the year as oil prices remained soft. The oversupply situation continued as oil producing countries vied for market share. Emerging markets dependent on Chinese growth were impacted as China moves from an infrastructure and export economy to a consumption based economy. Despite these macro headwinds, India was resilient and overtook China’s growth rate to become the world’s fastest growing major economy. However, the Indian economy too faced challenges from slow agricultural growth with two consecutive poor monsoons and sharp contraction in exports due to weak global demand and lower commodity prices. Against this backdrop, Reliance recorded its highest-ever consolidated net profit of `27,630 crore (US$4.2 billion) during the year, a growth of 17.2% y-o-y. Strong operating performance from the refining and petrochemicals business led to higher operating profits (PBDIT), which increased by 14.2% on a y-o-y basis to `52,503 crore (US$7.9 billion). The benefits of low crude oil and energy prices for our downstream businesses clearly outweigh the impact of these factors on our upstream segment, reflecting in the record earnings for the year. This underscores the robustness of our integrated model and quality of assets which deliver strong operating cash flows in a challenging environment. The global oil demand is expected to grow by 1.4 million b/d in CY 2016 and probably by 1.3 million b/d in CY 2017. This is on the back of 1.8 million b/d of demand growth recorded during CY 2015. This cumulative growth of over 4 million b/d of global oil demand over three successive years bodes well for the refining industry. The demand growth for all our key products in the refining and petrochemicals business remained robust in India. Oil demand in India grew by 10.9%, the highest growth rate seen in the past 15 years. This was led by strong growth of 14.1% in gasoline, 7.5% in diesel, 8.8% in jet kerosene and 20.7% in naphtha. The petrochemical product demand too remained above long-term averages. Indian polymer market experienced growth rate of 15%, surpassing China to become the fastest growing polymer market. Polyester demand growth sustained at 5% for the year. 4 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Letter to Shareowners Reliance invested over `1,12,000 crore (US$17 billion) in FY 2015-16, the highest-ever by any corporate in Indian history in creating growth engines for the future. `23,598 crore Record EBIT of Refining and Marketing Business `27,630 crore Highest-ever consolidated net profit in FY 2015-16 Refining and Marketing Reliance’s world-class refining infrastructure at Jamnagar enabled us to deliver a very strong performance despite the turbulence in the energy sector. EBIT from refining business increased by 49.1% y-o-y to `23,598 crore. EBIT margins expanded from 4.7% in FY 2014-15 to 10% in FY 2015-16. Our gross refining margins stood at US$10.8/bbl in FY 2015-16, the highest in the last seven years and significantly outperformed the Singapore benchmark. Our refineries benefited from robust growth in global oil product demand and over supplied oil markets. Transportation fuels benefited the most, with gasoline the key growth driver. Gasoline cracks were seen at historic high levels during the year. The refining business was effectively supported by a robust risk management framework which is an integral part of the operations. Leveraging the flexibility provided by our refining assets at Jamnagar, we were able to optimise our crude and product slate to capture higher margins from light distillates. Our refineries processed new grades of crude to make use of advantaged feedstock available at significant discounts. This allowed us to capture the benefits of a widening differential between light and heavy crude oil. Staying true to our commitment to growth, we aim to achieve significant long-term energy cost reduction with the completion of the petcoke gasification project, where low value petroleum coke will be used to produce high value syngas to increase Jamnagar’s energy self-sufficiency. Furthermore, we continue to re-commission our petroleum retail network which has now expanded to over 1,000 outlets. Petrochemicals Reliance’s petrochemical division continued to deliver sustained growth. Demand for downstream products increased as lower oil prices softened end product prices. Reliance’s petrochemicals business has a wide product portfolio, superior feedstock linkages and serves high-growth end- markets including automobiles, packaging, consumer durables, agriculture and infrastructure sector in India. Favourable demand-supply dynamics were reflected in margin expansion across key product categories. Overall EBIT margin for the segment expanded by 380 bps to 12.4% for the year. We made rapid progress in the completion of the new ROGC and aromatics project. These projects upon completion will add significant volumes to our polymer business and enhance integration for the polyester chain. The new cracker will be among the lowest cost producers of ethylene in the world. We have also made substantial progress in the US ethane import project, which will lower costs and ensure long- term feedstock security, flexibility and competitiveness. In the polyester chain, we added substantial volumes in efforts to further integrate our business. We now produce 650 KTA of PET at Dahej, making it the largest bottle-grade PET resin capacity at a single location globally. To cater to the large PET capacity, we also successfully commissioned PTA facilities of a total capacity of 2.3 MMTPA in Dahej during the year. Our fully integrated polyester business model allows us to also benefit from inherent logistics and cost advantages. Reliance is confident of placing all our incremental output from the new projects in the domestic markets to meet India’s growing demand. 5 148255GovernanceCorporate Overview0254256379Financial Statements55147Management Review380396Shareholder InformationLetter to Shareowners (contd.) Pg. 26 Pg. 28 Pg. 30 Refining and Marketing World-class refining infrastructure at Jamnagar Petrochemicals Rapid progress in new ROGC and aromatics enabled to deliver an unprecedented performance. Reliance’s gross refining project. These projects will add significant volumes to RIL’s polymer business and enhance for US$1.07 billion. Exploration and Production Unlocked significant shareholder value by monetising its EFS midstream investment margins stood at US$10.8/bbl in FY 2015-16, integration for the polyester chain. RIL has also the highest in the last seven years. successfully commissioned second phase of PTA. Exploration and Production Low energy prices have created a challenging environment for upstream business of Reliance. Conserving cash while retaining optionality and preparedness for ramp-up was accorded a high priority during the year. Measures were taken in the shale gas business to optimise capital expenditure and opex through effective production management. The capital expenditure for US Shale business was cut by 25% on y-o-y basis. Reliance strategically unlocked significant shareholder value by monetising its EFS midstream investment for US$1.07 billion. On the domestic front, KG D6 production fell due to natural decline in the producing wells. During the year, Government of India issued new gas pricing policy which includes marketing and pricing freedom for production from discoveries in deep water, ultra-deep water and high pressure- high temperature areas. Both Reliance and its partner BP, are evaluating the new policy and investment plans to develop discovered resources. Consumer Businesses – Reliance Retail and Digital Services In our retail business, we have reached significant milestones over the past couple of years and continue the high growth trajectory. Reliance Retail now caters to over 3.5 million customers every week. With over `20,000 crore of revenue, it is India’s largest retailer and has sustained a growth 6 rate of 29% CAGR in the last five years. In FY 2015-16, we added 624 new stores taking our total stores to 3,245 stores, spread over 12.8 million square feet and it is currently operating 3,383 stores. “Reliance Fresh” has consistently appeared in the list of most trusted national brands. The integration of advanced infrastructure built by Jio and physical retail presence will help us create a differentiated omni-commerce model for our retail business. We are augmenting reach to customers through online-offline product assortment across trade channels. These efforts in building a seamless interface will deliver superior value proposition for our customers. As India shifts to a digitally empowered society, we anticipate a significant demand for devices to connect users to a digital ecosystem. Keeping this in mind, we have started building the largest distribution reach for devices in India. We have introduced “LYF” models of smartphones and televisions to enable user’s access to the 4G LTE experience. The next wave of growth in India will be enabled through internet and data capabilities. Our digital initiative continues to gather speed to provide anytime, anywhere access to innovative and empowering digital content, applications and services, thereby propelling India into global leadership in the digital economy. We envisage ushering in the era of “visuality”, where video will replace voice as the new communication medium. Our customer offerings are built on four key strategic dimensions, viz. widest coverage, substantially superior network quality, transformational data capacity and affordable services. We have made considerable progress on all of these fronts during the year. During the year, Reliance Jio moved towards completion of its network infrastructure as well as business services and platforms. We on-boarded over 1.5 million test users, who have been using the services extensively. This has enabled testing of the network, user applications and services and business platforms. The feedback from test users is extremely encouraging. The test programme will be progressively upgraded into commercial operations in the coming months. In order to further deepen the network coverage, Reliance Jio acquired spectrum in the 800 MHz band across 13 circles, to become the only operator with pan India LTE spectrum in both the 800 MHz and 2300 MHz bands. Reliance Jio also has spectrum in the 1800 MHz band across 18 circles. In addition, Reliance Jio has entered into an agreement for sharing of spectrum in the 800 MHz band across 21 circles (4 circles are still awaiting approval). Reliance Jio is the only telecom service Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Letter to Shareowners Pg. 32 Pg. 34 Pg. 36 Retail Caters to over 3.5 million customers every week. With over `20,000 crore of revenue, it is the largest retailer in India. Jio RJIL acquired spectrum in the 800 MHz band across 13 circles, to become the only operator Media and Entertainment One of India’s leading Media and Entertainment (M&E) players, with a presence across several with pan India LTE spectrum in both the 800 MHz businesses including television content and 2300 MHz bands. RJIL also has spectrum in production and distribution, theatrical exhibition the 1800 MHz band across 18 circles. of films and media services. provider using sub-GHz spectrum band for LTE services in the country today. The combined spectrum footprint across frequency bands provides significant network capacity and deep in-building coverage for Reliance Jio. At Reliance, we truly believe that empowering people with high quality internet access will help India progress and move towards a more knowledge based and connected society. Robust Balance Sheet RIL enjoys prime credit ratings as a result of its fiscal prudence and strong cash flows. During the year, RIL and its subsidiaries tied-up long-term foreign currency facilities of about US$6.3 billion. With its unparalleled access to global debt markets, Reliance successfully re-priced and re-financed debt instruments thereby reducing interest cost. This year we concluded the largest financing transaction globally in the telecom sector supported by K-sure. This was also the longest tenure telecom financing supported by K-sure. During the year, we became the first private sector energy company globally to issue notes backed by the EXIM Bank of the USA. Also, we are the first energy company globally to issue Formosa Bond. Our innovative financings earned us various accolades during the year, including ‘Issuer of the Year’ award for 2015 from IFR Asia and ‘Best Corporate Issuer - 2015’ from The Asset. Governance and Safety Reliance has always accorded the highest importance to health and safety in the existing plants and the projects. A fully equipped and qualified HSE (Health Safety and Environment) organisation has been provided for each location to govern, document and provide HSE assurance. The process of first and second party audits continued at all sites with feedback being provided to the Board of Directors. To have a better assessment of the business and functional risks and to monitor risk mitigation effectiveness based on risk evaluation, the concept of BRAC (Business Risk and Assurance Committee) was introduced with senior management personnel on the committee. On the governance front we have put in place a comprehensive Reliance Management System, a holistic set of management systems, organisational structures, processes and requirements to enable more evolved governance and risk assurance framework for Reliance through its three key core elements: Operating Management System (OMS), Financial Management System (FMS) and People Management System (PMS). Sustainable Growth An integral part of Reliance’s philosophy is its commitment to empower and enhance the quality of lives of millions of people. During the year, Reliance Foundation continued to provide accelerated high impact solutions to India’s multifarious development challenges. Various efforts of the Foundation have positively impacted several hundreds of thousands marginal households in areas of health, livelihoods, education and relief during natural calamities. Our sports initiatives, aimed at development of youth and reviving the sporting landscape in the country, reached out to over 2 million school-going children. During the year, Reliance contributed `652 crore towards CSR activities, accounting for 2.38% of our profit after tax. At the close, I would like to thank the entire team at Reliance for an outstanding year which is reflective of their efforts, dedication and commitment to success. I would like to place on record my sincere appreciation to the Board of Directors for their guidance. I would like to express my gratitude to all our stakeholders for their continuing faith in Reliance. With best wishes, Sincerely, Mukesh D. Ambani Chairman and Managing Director July 15, 2016 7 148255GovernanceCorporate Overview0254256379Financial Statements55147Management Review380396Shareholder InformationThe Board of Directors Shri Mukesh D. Ambani Chairman and Managing Director Chairman: Finance Committee Smt. Nita M. Ambani Non Executive, Non Independent Director Shri Nikhil R. Meswani Executive Director Member: Stakeholders’ Relationship Committee, Corporate Social Responsibility and Governance Committee, Finance Committee Shri Hital R. Meswani Executive Director Chairman: Health, Safety and Environment Committee Member: Stakeholders’ Relationship Committee, Finance Committee, Risk Management Committee Shri P. M. S. Prasad Executive Director Member: Health, Safety and Environment Committee, Risk Management Committee Shri Pawan Kumar Kapil Executive Director Member: Health, Safety and Environment Committee Read the profiles of the Board of Directors on Pg. 199 8 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.The Board of Directors Shri Mansingh L. Bhakta Independent Director Dr. Dharam Vir Kapur Independent Director Member: Human Resources, Nomination and Remuneration Committee, Corporate Social Responsibility and Governance Committee, Health, Safety and Environment Committee Prof. Ashok Misra Independent Director Member: Stakeholders’ Relationship Committee Shri Adil Zainulbhai Independent Director Chairman: Human Resources, Nomination and Remuneration Committee, Risk Management Committee Member: Audit Committee 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 Prof. Dipak C. Jain Independent Director Dr. Raghunath A. Mashelkar Independent Director Member: Audit Committee, Human Resources, Nomination and Remuneration Committee, Corporate Social Responsibility and Governance Committee Shri Raminder S. Gujral Independent Director Member: Audit Committee 9 148255GovernanceCorporate Overview0254256379Financial Statements55147Management Review380396Shareholder InformationReliance Industries Limited Enhancing the quality of life. Starting up to a digital life. Enhancing the Quality of Life Annual Report 2015-16 At Reliance our business objectives has always been aligned to the evolving needs of India. From hydrocarbons to telecom, Reliance has created a value chain that influences lives, making it better. Reliance has a unique diverse portfolio of globally competitive Energy and Materials businesses and a new age India-centric consumer business with a very high growth potential. Value Added Statement for FY 2015-16* Value Added is defined as the value created by the activities of a business and its employees. Total Value Created Stakeholders FY 2015-16 % ` in crore FY 2014-15 % ` in crore Contribution to National Exchequer 48 43,117 46 33,322 Reinvested in the Group to maintain and develop operations 38 33,888 39 28,263 Providers of Debt Employee Benefits Providers of Equity Capital Contribution to Society 5 5 3 1 4,756 4,260 3,095 652 5 5 4 1 3,429 3,686 2,944 761 Total Value Created 100 89,768 100 72,405 Central Government Tax Collection3 (` in crore) 14,59,8111 12,45,1362 RIL’s share in tax collection 3% 2.7% FY 2015-16 FY 2014-15 FY 2015-16 89,768 FY 2014-15 72,405 24% y-o-y *Standalone 1 Revised Estimate. 2 Actual. 3 Source: http://indiabudget.nic.in/ub2016-17/afs/afs1.pdf Read more about CSR initiatives on Pg. 132 10 10 10 Corporate Overview 02 54 Management Review 55 147 Governance 148 255 Financial Statements 256 379 Shareholder Information 380 398 Across its businesses, Reliance has helped foster rural prosperity, contributed to the national economy, generated employment and helped India become a global leader in the domains it operates in. For Reliance, making a positive contribution to society and fellow Indians across the socio-economic spectrum is an integral part of business. CSR Expenditure - FY 2015-16 Stakeholders % ` in crore Rural Transformation Health Education Sports for Development Others Total 17 48 33 1 1 107 314 215 9 7 100 652 HEALTH EDUCATION Reliance has an unrelenting focus on the health and wellbeing not only of its employees but also of the larger community wherein it operates. Reliance has implemented unique initiatives like the Operating Management Systems (OMS) for reducing HSSE risks in its operating activities. To Reliance, education and skill development are the cornerstones of a progressive society and it has continuously provided quality education through 6 ‘Education for All’ NGOs, 13 Reliance Foundation Schools and RIL’s Jamnagar projects have skilled thousands of workmen during their construction and operational phase. CONNECTING SOCIETY ENVIRONMENT Reliance’s more than 100 products and services developed for unique consumer experiences not only help people connect but also help improve livelihoods, create large-scale employment opportunities, reinforce India as a manufacturing power, unleash entrepreneurial energy and create significant value for Indian society. An important aspect of improving quality of life for Reliance’s communities is care and respect for the environment. Reliance has always gone beyond mandatory regulatory dictates on environmental issues and worked towards the development and implementation of climate change mitigation projects. 11 Making Lives Better Reliance has been an integral part of India’s everyday life for decades. Reliance work across multiple value chains to deliver products and services that find a presence in almost every facet of modern living, infrastructure and other utilities. Reliance has a diverse footprint and impact, and it is its endeavour to sharpen the innovation, improve its products, and continue to deliver on newer ways in which quality of life can be enhanced. For Everyone For Families For Children For Teenagers Reliance Jewels, Colors Channel, Marks and Spencer Hamleys - the finest toy shop in the world Nickelodeon - Channel for kids MTV - Music Destination and MTV themed cafe for the youth, Steve Madden - Apparel, Accessories, Footwear for Youth For Students Topper Learning - Educational content for K-12 students Reliance has something for everyone Reliance reaches out to every section of society and segment of the population. Reliance’s products and services are relevant and help make everyday life better. For Working People For Businesses For Farmers Moneycontrol - Financial News, CNBC TV18 - Business News Jio - 4G Connectivity Reliance has implemented a scheme of soil health cards and ‘Plant Clinics’ to help marginal farmers improve their yield and reduce cost. Reliance has helped farmers generate organic manure through vermi-composting. 12 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Making Lives Better Through Everyday Wake Up Mattresses, Pillows, Blankets 2nd Largest producer of polyester globally Breakfast 3,383 retail stores currently operating across India Home to Office Transportation Fuel 1.5% (approximately) of world’s transportation fuel is from RIL Jamnagar Refineries Polymers and Elastomers used in automobiles Largest responsible producer and largest recycler of plastic Lunch Break Container for carrying food Container for carrying beverage 6th largest producer of PP globally Office to Home JioPlay - watch HD TV JioBeats - streaming music JioMags and JioNews - access to the popular magazines and news Entertainment Dress up for Office 14+ million people shop every month at Reliance Retail Morning News Network18 broadcast business reaches over 550 million viewers cumulatively Updating knowledge Financial News Tea Break Pan India telecom network Dinner World’s largest refinery complex is at Jamnagar 13 148255GovernanceCorporate Overview0254256379Financial Statements55147Management Review380396Shareholder InformationReliance Industries Limited Enhancing the quality of life. Starting up to a digital life. Jio - Starting up to a Digital Life JIO NETWORK ADDRESSES NEW AGE REQUIREMENTS Network differentiators, with best-in-class customer service, will transform experience for customers Annual Report 2015-16 JAMMU & KASHMIR HIMACHAL PRADESH PUNJAB RJIL’s circle wise infrastructure and spectrum band HARYANA  U.P. (WEST) DELHI TELECOM CIRCLE NORTH- EAST RAJASTHAN U.P. (EAST) ASSAM GUJARAT MADHYA PRADESH MUMBAI MAHARASHTRA BIHAR WEST BENGAL KOLKATA ODISHA ANDHRA PRADESH eNodeB KARNATAKA 800/1800/2300 MHz Spectrum 800/2300 MHz Spectrum TAMIL NADU KERALA All-IP Network Instant call connectivity, minimal call drop, unmatched HD quality Seamless In-building coverage Ubiquitous Coverage Footprint Superior indoor coverage using macro and small cells India’s largest LTE network deployment with FDD and TDD spectrum (800/1800/2300 MHz Bands) with fibre backhaul Superior Data Experience Seamless Service Experience Rich Capacity Sufficient throughput for the highest end applications Seamless voice, video and messaging experience Sufficient capacity for every user on the network, at all times (combination of fibre and spectrum) 14 Corporate Overview 02 54 Management Review 55 147 Governance 148 255 Financial Statements 256 379 Shareholder Information 380 396 Jio - Starting up to a Digital Life LIFESTYLE APPLICATIONS (APPS) Jio provides smart applications to make life simple, beautiful and secure MyJio – One connection • Check balance and Validity • Recharge and Pay Bills • Download and Subscribe Jio Apps • Real-time balance transfer between your connections JioBeats – Stream and Download HD Music • HD Quality songs in your preferred language • • Experience 1-Touch Radio with Unlimited Skips Intelligent Recommendations based on listening pattern JioChat – Chat with a difference • Video and Audio Conferencing • Document Sharing • Regional Language Interface JioPlay – Live and Catch-up TV • Pause and Play Live TV channels on the move at HD quality • Catch up weeks TV programme anytime with Catch-up TV • Set programme reminders and record programs JioMags – There is always more to read • Vast library of premium magazines • • Life-like reading and personalized annotations Sync downloaded magazines across devices • Never miss your favourite from wide library of latest regional magazines JioDrive – Your files are one touch away • Secured data on the cloud • Access your data on the go from smartphone, tablet or PC • Simple access, easy storing, sharing and quick sync JioMoney – Digital Cash and digitizing payments • Transforming digital payments and commerce • Making payment Simple, Smart and Secure • Bringing consumers and merchants closer to each other • No more fraud risks with real- time online fund loading and usage tracking JioSecurity – Your power against threats to digital life • Award winning App Advisor that warns on risky websites, apps etc • Proactive antivirus protects you and your device 24x7 • TrackMyDevice allows you to track, click a photo, scream and format your device remotely JioOnDemand – Personalized Home Theatre • Huge ad-free HD quality content across languages and genres • Adaptive Streaming based on network speeds • Voice search and personalized recommendations • Experience international contents at your convenience JioXpressNews – Stay Updated. Stay Ahead • Get News content from various languages and sources • Read the stories even offline, save articles • Get notifications for stories that matter to you JioJoin – Your smartphone’s bridge to VoLTE • A telco-grade smartphone application that enables Jio’s latest communication services • • Experience HD Voice, Video calls, SMS on non-VoLTE devices Enjoy rich Communication features like Chat, File Share, etc. on all Smartphones • Real-time switch to video or audio on ongoing call JioNews – Newspapers on the go • Read newspapers from across the country • Clip articles, get the articles read-out • Resume reading the paper where left last 15 Jio - Reimagining Digital Life Jio is envisioned as a connected network that will change the way world looks at life. It will offer a super high-speed network and bring the best digital ecosystem within easy reach of every Indian. REIMAGINING COMMUNICATION Jio will address the communication needs of India in ways that were unimaginable until recently. The next generation network has multiple features that makes video, the new voice. People will be able to stay in touch anytime, anywhere with real-time video calls, multi-party conferencing, real-time chat, location sharing and multiple safety features. Jio plans to enable end-to- end solutions that address the entire value chain across various digital services. Jio will transform the way India interacts with the world and will help anytime, anywhere connectivity at a world-class quality level. Here are key areas in which this reimagining and transformation will happen. REIMAGINING EDUCATION Jio brings multiple possibilities to the world of education. Students can connect to high- speed internet anytime, anywhere to attend virtual classrooms, complete assignments and projects without having the need to travel. This is especially true for those in rural areas without access to many options in their vicinity. Similarly, teachers who want to reach out to more students can do so effortlessly. Other services like text-to-speech will help differently-abled students to attain higher education. REIMAGINING HEALTHCARE Jio will address the issues of unavailability of quality healthcare in many parts of India. Using Jio’s video conferencing and cloud-based drive, doctors will be able to treat patients at faraway places and access medical records remotely. Many other possibilities exist in the realm of healthcare which will enable a better quality of life for a large number of Indians. 16 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Jio - Reimagining Digital Life REIMAGINING INFOTAINMENT The world of information entertainment will be a different one with Jio. One can access news, music, full-length movies on the go, all without interruptions and buffering. There are many other possibilities like live-streaming, shared spaces and opportunities to connect with friends on chat and interest groups that will really bring all forms of information entertainment to the fingertips of consumers. Live events through real-time streaming will provide an enhanced experience for both, live and remote audiences. REIMAGINING GOVERNANCE With Jio, government officials and policy makers will be able to administer effective digital governance. They can interact with their constituents, monitor the progress of development projects and get real-time information on matters of public importance. This will usher in greater transparency and accountability. With facilities like live WebCast, they can reach out to a large number of people from a single location, making better use of their time. REIMAGINING FINANCIAL INCLUSION Jio will play a crucial role in transforming the way millions of unbanked people will access financial services. Jio’s next generation digital services platform offers enhanced security for various financial transactions. Jio’s reach will help in mass participation in bridging the financial digital divide. REIMAGINING ENTREPRENEURSHIP Jio is expected to enhance business productivity and efficiency in a big way. Managers will be able to remain in touch with their teams across remote locations and geographies. Real-time information sharing will mean better reporting and aid in swifter decision-making and course correction for businesses. JioDrive will enable safe digital storage of voluminous business data for anytime, anywhere access. For small businesses, many of their connectivity hassles will be addressed and they can use facilities like video conferencing without having to invest in expensive hardware and software. Micro entrepreneurs and farmers will benefit from direct procurement and price information. 17 148255GovernanceCorporate Overview0254256379Financial Statements55147Management Review380396Shareholder InformationNurturing Digital Entrepreneurship GENNEXT INNOVATION HUB “At GenNext Hub, RIL is catalysing a unique start-up ecosystem, which rests on the tripod of talent, technology and trust. This venture is aimed at spotting and encouraging ‘talent’, helping them harness their ‘technology’ and backing them by putting total ‘trust’ in them. Dr. Raghunath Anant Mashelkar, Chairman, GenNext Ventures, Board Member, RIL During the four-month-long programme, GenNext Hub conducts workshops and mentoring sessions for start-ups in the areas of customer development, market traction, operations, product roadmap, fund raising and pitching. It also provides expertise in IP, legal, financial compliance, HR and specific sectorial expertise. GenNext Hub is uniquely positioned as a global programme that helps start-ups think big and grow fast. GENNEXT HUB’S WINTER 2014 COHORT START-UPS GENNEXT HUB’S FALL 2015 COHORT START-UPS A passenger safety and engagement platform. axlerate.com A connected car platform. mycariq.com A virtual trial room platform. coitor.com A personalised education content curation platform. flexiguru.com A proprietary location content distribution company. fropcorn.com A predictive healthcare analytics company. 360hvpl.com A pre-testing skill assessment company. interviewmocha.com The world’s first answering engine. thelightapp.com A last mile logistics solution provider. loginextsolutions.com An adaptive entrance test preparation platform. oztern.com An event discovery and engagement social media platform. mocioun.com 18 Provides operational intelligence for wind turbines, met masts, solar plants and other Internet of Things (IoTs). algoengines.com India’s first consumer credit analytics and online management tool to help build healthy credit profile for individuals. creditseva.com Mobile app that guarantees to instantly connect patients to doctors from best hospitals over the phone in under 1 minute. curefy.in A centralised procurement solution for the hospitality industry. efficientbazaar.com The leading Peer-to-Peer (P2P) lending platform from Israel entering India. eloan.co.il Mobile and cloud based field force mobility solution to sales, service and delivery function for visualising real- time activities on the field. fieldomobify.com A new kind of fitness membership that provides access to the best gyms and fitness classes in the city. fiticket.com Enabling offline merchants to accept new age payments without the need for any additional hardware or an app and with minimal learning curve. letsbinge.com The hyper-local advertising platform that helps businesses to accelerate their sales within the locality in an easy and affordable way. pickcel.com An online sports eco-system that helps people to connect, network, schedule and engage in sports, fitness and a healthy lifestyle. playfiks.com A technology powered, intra city, point-to-point logistics company. vdeliver.in Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Nurturing Digital Entrepreneurship GenNext Hub is a Reliance-backed start-up programme powered by Microsoft Ventures, to catalyse the start-up ecosystem for a digital India. Launched in September 2014, it has completed two batches of the programme and has a total of 22 start-ups successfully graduating from the Hub. It is headquartered in Reliance Corporate Park, Navi Mumbai. COLLABORATIONS GenNext Ventures Fund (GVF) GVF is an arm’s length venture capital fund sponsored by Reliance. GVF invests in global start-ups (including India, Israel, UK and the Silicon Valley) which have the potential to build sustainable businesses, providing growth capital and scaling impetus. Value-Add beyond Capital GVF believes ‘capital is merely an enabler’ and supports building successful businesses in multiple ways, including: Test-beds/Pilots: Start-ups get test-beds/pilots with Reliance and other corporate partners of GenNext to test/prove emerging technologies in real business environment. SELECT PORTFOLIO COMPANIES GVF has selectively invested in India and US based companies that have developed cutting-edge technologies and are scalable across global markets. The founders have impeccable credentials and are passionate about creating world-class companies. Selected investments include: Videonetics A pioneering Video Computing company whose indigenously developed integrated Video Management Software (VMS) and Video Analytics (VA) solution are deployed in 70+ airports in India. The product can be used for video surveillance, automated number plate recognition, redlight violation detection and facial recognition. While its primary application is in the field of surveillance, the product also has application in segments like retail and healthcare. Domain Expertise: Leverage Reliance’s diverse industry presence and expertise to gather strategic insights that may help refine the start-up’s product, go-to-market strategy, alliances, etc. Ecorithm Ecorithm provides Energy Efficiency solutions i.e. to diagnose and optimise energy wastage in building complexes. Extensive Global Network: Start-ups get access to RIL’s global ecosystem for business insights, mentoring and guidance, international markets, new customers, new partners, etc. Cross-Portfolio Synergies: Leverage RIL’s portfolio companies for cross-industry knowledge and expertise, technology solutions, alliances and joint Go-to-Market. Value-added Support: On multiple dimensions including business planning, team-building, branding and marketing, growth strategies, global expansion, etc. Buildings account for nearly 40% of global energy consumption1 and produce a larger carbon footprint than all transportation systems combined. Ecorithm’s suite of technologies helps analyse complex, dynamic systems through physics-based pattern recognition and can be applied to building systems and various other enterprise solutions to improve operations and minimise energy use. GenNext Ventures and Ecorithm agreed to collaborate in environmental design and optimise energy efficiency in buildings in India. 1(as per United Nations Environment Programme) Fall 2015 Cohorts Start-ups 19 148255GovernanceCorporate Overview0254256379Financial Statements55147Management Review380396Shareholder Information People and Innovation Reliance’s goal is to develop its employees to have the best technical and leadership capabilities in the industry. Reliance focus on merit- based, long-term career development and are committed to maintaining a diverse workforce to ensure it attract the best talent. Reliance recruit talented people from around the world and provide them with formal training and a broad range of global experiences to develop them into the next generation of Reliance leaders. Reliance know that delivering outstanding performance requires exceptional people. As Reliance strides ahead to transform India’s digital landscape and to improve the quality of life for fellow Indians, Reliance believes its employees too are possessed with the zeal to transform India. RELIANCE INNOVATION COUNCIL The Reliance Innovation Council (RIC) sets an agenda to actively nurture innovation within Reliance in order to safeguard its standing as a unique corporate entity and one of the most innovative companies in the world. In other words, the council – which consists of global thought leaders, Nobel Laureates, and iconic personalities – provides vision to the innovation movement at Reliance. Born out of RIC’s vision, the state-of-the-art R&D centre leads technology development at Reliance. The Reliance Innovation Leadership Centre (RIL-C) was set-up to serve the innovation vision of the council. This centre implements Reliance’s innovation agenda by deploying the best and next transformational innovative practices. RIL-C leads various programmes to integrate innovation within Reliance, some of which are mentioned below. LEAP MISSION KURUKSHETRA RELIANCE INNOVATION Leading Expert Access Programme (LEAP) Innovation thrives within inspired minds. LEAP was born with the aim of providing people at Reliance access to global thought and innovation leaders through interactive sessions. From industry captains to Nobel Laureates, senior government officials to social crusaders – and even a Mount Everest summiteer – all have inspired and mesmerized the people of Reliance through LEAP. Mission Kurukshetra Mission Kurukshetra (MK) Reliance recognises that every mind is creative. Mission Kurukshetra (MK) is a step towards democratising creativity and innovation within the organisation. Through the Mission Kurukshetra platform, people can submit ideas and track their progress right up to implementation. In addition, businesses can put up specific challenges seeking novel ideas and solutions. The first MK awards held in 2015, in which 9 winners were felicitated for their contributions. OUTCOME OUTCOME 34 LEAP speakers have inspired employees at Reliance through their life stories and experiences. MK is now a treasure trove of almost 14,000 employee ideas that have a combined potential to generate hundreds of crores of value for the organisation. Reliance Innovation Award The awards were presented for the following projects: Dhirubhai Ambani Game Changer Award: Redefining the refining process CK Prahalad Innovation Leadership Award: Creating a sustainable innovation culture in Reliance. The Revolutionary Award: Demonstrating outstanding innovation capabilities as a young leader The Innovation for Impact Award is given under three categories (Business, Manufacturing and Service) to innovative solutions provided to real problems that have been successfully implemented to scale. IMPACT-INSPIRE Inculcating a culture of thinking big – about Reliance, the communities it operates in, and the whole country. 20 IMPACT-ENABLE IMPACT-IMPLEMENT Enabling a culture of collaborative and cross-functional innovation. Sustainable business growth by encouraging and rewarding innovation. Read more about Innovation, Research and Technology on Pg. 115 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.People and Innovation | Research and Technology Research and Technology It is innovation that transformed Reliance from a small textile trading firm into India’s largest private sector enterprise and a Fortune 500 company. From sparking off the equity cult in India to setting up the world’s largest grassroots refinery to now ushering in a digital revolution in India, Reliance has always demonstrated that innovation is in its DNA. Reliance’s innovations touch many facets of life in India – be it transportation, retail, or healthcare. The company’s bold ambitions for Reliance and for India push to create an innovation agenda that is even bolder, ensuring that the next wave of growth will remain innovation-led. BREAKTHROUGH R&D BIO-CRUDE AND BIO-CHEMICALS HYDROTHERMAL LIQUEFACTION RIL’s ‘Algae to bio-crude’ effort aims to develop technologies for algae cultivation to convert biomass to bio-crude and bio-chemicals. It is a process that uses high temperature and pressure conditions to convert biomass to bio-crude, imitating the way Earth made crude oil millions of years ago. PRODUCING ALGAE AND CO- PRODUCTS FOR ENERGY A collaborative project with some of the top universities and research institutions in the US to validate and demonstrate a process to produce bio-crude and other value-added products from algae. CLEAN ENERGY RIL is the sole industry partner in the New Millennium Indian Technology Leadership Initiative (NMITLI) with the Council of Scientific and Industrial Research (CSIR) on indigenous polymer electrolyte membrane (PEM) fuel cell technology development. BENZENE EXTRACTION FROM FCC LIGHT NAPHTHA RIL entered into a collaborative project with IIP (Dehradun) to co-develop a benzene extractive distillation process from FCC Light Naphtha. COMMITMENT R&D ENABLERS OUTCOME Clean fuels – RIL shall deploy substantial resources; human capital and money – in development of clean technologies including bio-fuels • `1,259 crore spent during the year • State-of-the-art laboratories and 400 plus scientists RIL has emerged as an active patent filer in India IMPACT • External collaboration and internal crowd sourcing Product and Process stewardship in existing and future business Read more about Breakthrough R&D on Pg. 116 21 148255GovernanceCorporate Overview0254256379Financial Statements55147Management Review380396Shareholder InformationAn Integrated Approach Towards Sustainable Growth - 5P’s Through sustainable measures, Reliance creates value for the nation, enhances quality of life across the entire socio economic spectrum and help spearhead India as a global leader in the domains where it operates. RIL Growth for all Integrated Reporting Framework Process 5P’s SDG – United Nations Natural Human Financial Intellectual Social and Relationship Manufactured External Environment Pg. 56-102 Strategy Pg. 24-25 Input Business Differentiators Deliverables Outcomes Planet People Pg. 107-109 Pg 109-114 Products and Processes Pg. 115-120 Transformation (STAR) Pg. 128 Business Model Enterprise Risk Management Pg. 124-127 Performance Pg. 56-102 Prosperity (Profit) Pg. 121 Peace and Partnerships Pg. 122-123 Value Creation - RIL’s business model and outcomes are aligned with integrated reporting framework of IIRC (International Integrated Reporting Council) and United Nations SDGs. GOALS/ENDEAVOURS FOR SUSTAINABILITY DEVELOPMENT Clean Energy Ensure maximum use of clean energy in all the operations - collaborate with best-available technologies licensors. Ensure benchmarking of energy consumption across all the sites with best-in-class technologies and new emerging technologies. Safety Work with Industry peers to define and upgrade standards on process safety and proactively promote safety for itself and across the industry. Committed to remain top-quartile performer in all safety matrices across all operations. Ensure implementation of best-in-class technologies for real-time monitoring of operational parameters for safe, reliable and efficient operations. Opportunity & Diversity As an equal opportunity employer, promote a culture of transparency, empowerment and meritocracy. Empower women by advancing opportunities in the Company’s activities and aspire to achieve 15% women workforce by 2030. Community Development Empowering the underprivileged, enhancing their access to better amenities and increasing the outreach of community initiatives to 20 million people by 2030 with the minimum CSR expenditure at 2% of the net profit. Supply Chain Management Committed to build and maintain a top-quartile supply chain with focus on sustainability by collaborating with suppliers, helping them build their capacity and address sustainability issues through site-level training. Product Stewardship Develop road-map for each product in its portfolio based on continuous engagement with customers to understand their current and future requirements and be pace-setter in adapting new and emerging technologies. Asset Utilisation Efficient and maximised utilisation of the assets to optimise energy consumption through operational excellence ensuring safe and reliable operations. Customer Satisfaction Aspire to be the most customer- focused company with the highest customer loyalty. Management of Environmental Impact Ensure industry-leading energy cells at each site working towards energy security with focus on reducing consumption and increased use of clean energy to progressively reduce GHG emissions intensity. Demand minimum level of HSE compliance from all stakeholders. Waste Management Ensure efficient use of solid catalysts including investment in development of bio-catalysts to replace solid catalysts. Health Committed to provide healthcare facilities to all people (on-roll employees and contract staff ) working across all sites at par with global standards using latest technologies and practices including maintaining medical history for all. Water Management Deploy world-class technologies across all sites to reduce fresh water consumption per unit of production by maximising waste water recycle and minimising external discharge. 22 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.An Integrated Approach Towards Sustainable Growth - 5P’s During FY 2015-16, RIL has undertaken numerous initiatives contributing to the overall goal of sustainable development. These include: Planet* People* Products and Processes* Prosperity* (Profit) Peace and Partnerships* in materials recycled in total GHG emissions per tonne of product • 5.4+ lakh saplings have been planted • 1.1 lakh metric tonnes of soil has been conserved • 14% • 2.4% • 12.4% • 4.7% • 2,500+ acres of greenbelt at Jamnagar Outcome • Mitigating global warming • Promoting use of eco-friendly fuels of air emissions (SOx) in water recycling • 15+ lakh training hours • 687 poor and meritorious students financially supported to pursue higher studies through different scholarship schemes • 12% • Launched Wave 4 of the R-HR Transformation journey to strengthen in the number of women employees over last five years leadership pipeline Outcome • Healthier and safer working environment • Enhanced employee engagement • Bringing inclusiveness in education • `1,259 crore R&D expenditure • 36 patents granted during the year • Consistent progress in breakthrough research • Outcome • Innovation culture • Product stewardship Invest to impact a billion Indians • `43,117 crore contribution to national exchequer • 20.7% in PAT to `27,417 crore • `652 crore CSR expenditure Outcome • Better standard of living • Strengthening infrastructure • Sustainable models of development • + 24,000 people benefited under skill-building training • Reliance Industries along with nine other companies has committed to collaborate in a number of areas to reduce their GHG footprint • Reliance joined hands with Bill and Melinda Gates Foundation, MSD in India, Tata Trust and the United States Agency for International Development, to develop Project ASMAN for improving maternal and child health outcomes Outcome • Global citizenship • Building sustainable livelihoods * Standalone 23 148255GovernanceCorporate Overview0254256379Financial Statements55147Management Review380396Shareholder InformationStrategic Framework Strategic Framework and Outcome and Outcome Strategy Value Created Shareholder Value Employee Value Reliance drives shareholder value through active portfolio management to continuously enhance the quality of its business portfolio, consistently deliver shareholder returns and maintain a focus on long- term growth potential. Dividend declared - 105% Total payout - `3,095 crore Monetised investments in Eagle Ford Midstream JV RONW (adj.) for FY 2015-16 - 16.3%, 300 bps y-o-y Market Capitalisation - by `71,856 crore Reliance creates value for its employees, by ensuring their prosperity as the organisation grows. Specifically, it creates employee value through continuous learning, structured career progression opportunities and an industry-leading employee value proposition. Launched the final wave of Reliance-Human Resource (R-HR) Transformation Nurturing and managing talent Launch of R-University Imparted >15 lakh man hours of training Read more in the People section on Pg. 112 Driving growth, value, innovation and transformation in society Reliance is pursuing its strategy to grow, by leveraging its existing know-how and asset base and investing in opportunities strategic to its existing businesses and those of the future. Reliance initially focuses on activities and investment in India to take advantage of the large domestic market, as it currently holds a leadership position in it. It builds competencies that can be rolled out on a global scale. Reliance’s business creates value for its shareholders, employees, customers and society, and each new opportunity it pursues must meet these criteria or it does not invest in it. Leadership position in existing business Revenue - US$44.7 billion Net profit - US$4.2 billion Profit Growth - 17.2% R&M: World’s largest refinery Petchem: Amongst world’s leading petrochemical producers Retail: Largest retailer in India based on Revenue and Footprint Taking RIL to a global scale Provides 1.5% approximately of world’s transportation fuel 2nd largest producer of polyester fibre and yarn in the world Investing in new businesses Investment in excess of US$35 billion in existing and new businesses Innovation 22 start-ups successfully graduated from GenNext Hub Transformation State-of-the-art pan India digital services business being rolled out by Jio, aimed at significantly lifting India’s global ranking on mobile broadband subscriptions 24 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Strategic Framework and Outcome Customer Value Societal Value Reliance drives customer value through its product innovation, application and service levels, ability to deliver a consistently high consumer experience and its overall reputation and brand promise in the markets it operates in. Society provides Reliance with a license to operate, and with this privilege comes a responsibility to create value. Reliance drives societal value through job creation, both directly and indirectly, social innovation through products and services and its respect for ecology and environment. R&M - Provides high value, clean transportation fuels 3 core CSR commitments- Scale, Impact and Sustainability In conformity with the Sustainable Development Goals (SDGs) Impact areas - rural transformation, environment, health, education, sports for development, disaster response, arts, culture and heritage Petchem - Launched “Chemistry for Smiles” and “Transforming Life into Quality Life” E&P - Field uptime of KG D6 is at par with or better than the global benchmark Retail - More than 30 million members registered to Customer Loyalty Programme Jio - Network rollout for over 15 lakh users Media - 20 million unique visitors per month on digital platforms Five Enablers Safe operations, digital technology, capital productivity, operational efficiency and ethics Reliance’s Group Strategy is founded on five enablers. These enablers are an integral part of all of its businesses. Safety Aim to achieve zero injuries and incidents in steady-state operations Use of technology R&M - Use of robots and drones to enhance safety Petchem - Digitised logistic using radio-frequency identification Retail - Harnessed online sites Capital productivity ROCE (adj.) for FY 2015-16 - 20%, 700 bps y-o-y Read more in the CSR report on Pg. 132 Read more in the BRR on Pg. 166 Superior credit profile - RIL ratings two notches above sovereign bonds rating Optimised financing cost Efficiency in operations GRM at 7-yr high - US$10.8/barrel (bbl) outperformed the Singapore benchmarks by US$3.3/bbl for FY 2015-16 Ethics Zero Tolerance - Vigil mechanism and robust governance and processes Integrity is one of Reliance’s core values 25 148255GovernanceCorporate Overview0254256379Financial Statements55147Management Review380396Shareholder Information Review of Operations Refining and Marketing Petroleum refining and marketing (R&M) is an integral part of Reliance’s drive for growth and global leadership in the core energy and materials value chain. PERFORMANCE IN FY 2015-16 RECORD EBIT `23,598 CRORE 49.1% y-o-y FY 2015-16 FY 2014-15 `23,598 crore `15,827 crore REGIONAL MARGINS (US$/BBL) USGC FY 2015-16 FY 2014-15 Rotterdam FY 2015-16 FY 2014-15 US$6.3/bbl US$5.4/bbl US$11.8/bbl US$12.4/bbl Singapore Complex FY 2015-16 FY 2014-15 RIL FY 2015-16 FY 2014-15 US$7.5/bbl US$6.3/bbl US$10.8/bbl US$8.6/bbl RIL outperformed Singapore benchmark with a premium of US$3.3/bbl 26 26 Top to Bottom: Aromatics Complex at Jamnagar • Jamnagar SEZ Refinery Facing Page, Top to Bottom: Employee at Jamnagar Refinery • Port Jetty at Jamnagar Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Review of Operations COMPETITIVE STRENGTH ACHIEVEMENTS IN FY 2015-16 • Largest single site refinery: Crude processing capacity of 1.24 MMBPD • Robust configuration: Nelson Complexity Index of 12.7 • Ability to sustain high operating rates: State-of-the-art operating and maintenance practices • Dedicated world-scale port facilities: Strong crude and product freight economics • Ability to process wide range of challenging crudes: Competitive feedstock costs • Flexibility to swing product slate: Agile and opportunistic response to volatile markets • RIL’s robust logistics set-up and proficient product placement team enables placement of large volumes of refined product globally • Integrated supply and trading team works real-time with the refinery operations to optimise asset utilisation US$10.8 bbl Refining margins outperformed Singapore benchmark with premium of US$3.3/bbl US$19.3 billion Total exports of refined products Over 1,000 Petroleum retail outlets operational currently 230 KL/month One of the highest throughputs per outlet 66 Different crude grades processed during the year Petcoke Gasification The petcoke gasification project is on track towards achieving sustainable long- term energy cost reduction Every 4.3 minutes An aircraft is fuelled by Reliance 80% y-o-y increment in RIL’s sales to airlines in terms of volume Top to Bottom: Aromatics Complex at Jamnagar • Jamnagar SEZ Refinery Facing Page, Top to Bottom: Employee at Jamnagar Refinery • Port Jetty at Jamnagar Read more about Refining and Marketing operations on Pg. 62 27 27 148255GovernanceCorporate Overview0254256379Financial Statements55147Management Review380396Shareholder Information Review of Operations Petrochemicals RIL offers an extensive range of polymers, polyesters, fibre intermediates, aromatics and elastomers providing world-class experiences to its customers across a range of applications. End-use sectors include packaging, infrastructure, agriculture, automotive, housing, and healthcare among others. PERFORMANCE IN FY 2015-16 RECORD EBIT `10,221 CRORE 23.3% y-o-y FY 2015-16 FY 2014-15 `10,221 crore `8,291 crore OVERALL PETROCHEMICAL PRODUCTION IN INDIA 24.7 MMT 12.3% y-o-y FY 2015-16 FY 2014-15 24.7 MMT 22.0 MMT 28 Top to Bottom: Petrochemical Cracker • Safety first practised Facing Page, Top to Bottom: Polyester bobbins • Latest take-up winders in the new polyester production unit Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Review of Operations COMPETITIVE STRENGTH ACHIEVEMENTS IN FY 2015-16 • World’s leading producer of petrochemicals with global scale capacities 2.3 MMTPA PTA capacity successfully commissioned • 11 manufacturing locations in India and 3 in Malaysia 4.65 MMTPA PTA capacity - global capacity share of 4% • Diversified feedstock mix, with both naphtha and gas based crackers 33% Domestic polyester market share • Vertical integration from oil and gas to refining and downstream petrochemical products 36% Domestic polymer market share • Focus on technology leadership, cost efficiencies and responsible operational practices World’s largest single location bottle grade PET resin plant at Dahej Recron Green Gold is one of the greenest fibres globally Top to Bottom: Petrochemical Cracker • Safety first practised Facing Page, Top to Bottom: Polyester bobbins • Latest take-up winders in the new polyester production unit Read more about Petrochemicals operations on Pg. 69 29 148255GovernanceCorporate Overview0254256379Financial Statements55147Management Review380396Shareholder InformationReview of Operations Oil and Gas Reliance is one of the largest exploration and production players in India. RIL’s upstream portfolio consists of onshore and offshore blocks in India as well as acreages in US Shale play. PERFORMANCE IN FY 2015-16 KG D6 JV PRODUCTION 139.1 BCF Gas 1.8 MMBBL Oil and condensates US SHALE JV PRODUCTION ~1.26 BCFe/day Gas 7% y-o-y FY 2015-16 FY 2014-15 1.26 BCFe/day 1.17 BCFe/day EBIT `378 CRORE 30 Top to Bottom: Control Riser Platform at KG D6 offshore • Floating Production Storage and Offloading at MA Field location Facing Page, Top to Bottom: Eagle Ford Drilling site • Employees working at Control Riser Platform Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Review of Operations COMPETITIVE STRENGTH ACHIEVEMENTS IN FY 2015-16 • • • • • Strong offshore capabilities in India Strategic partnership with BP in the domestic upstream business Leveraging the existing infrastructure, knowledge and experience Achieved materiality in the unconventional business 203.8 BCFe RIL’s share of production (CY 2015) in US shale operations US$1.07 billion Monetisation of RIL’s entire interest in EFS Midstream LLC for, unlocking significant value for shareholders 1,040 Shale gas producing wells at the end of CY 2015 Balanced portfolio with growth potential 124 BCFe RIL’s share of production in India 2.61 TCFe RIL’s share of proved US Shale reserves CBM Project Nearing completion Read more about Oil and Gas operations on Pg. 78 31 148255GovernanceCorporate Overview0254256379Financial Statements55147Management Review380396Shareholder Information Review of Operations Retail Reliance Retail’s nationwide network of retail outlets delivers a world-class shopping environment and unmatched customer experience powered by state-of-the-art technology and seamless supply-chain infrastructure. PERFORMANCE IN FY 2015-16 REVENUE `21,612 CRORE 22.5% y-o-y 29% CAGR FOR 5 YEARS FY 2015-16 FY 2014-15 EBIT `506 CRORE 21.3% y-o-y FY 2015-16 FY 2014-15 32 `21,612 crore `17,640 crore `506 crore `417 crore Top to Bottom: Reliance Digital, Hamley’s, Reliance Trends Facing Page: Reliance Fresh Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Review of Operations COMPETITIVE STRENGTH START-UPS AND INITIATIVES • Integrated ‘offline-online’ model to differentiate customer experience • Experience in managing multiple business models of retail, wholesale, licensing, joint ventures and emerging multi-channel commerce • Ability to manage complexity, scale, speed and diversity across retail concepts and operating environments • Best-in-class infrastructure of IT systems and supply chain enabling scale, speed and efficiency • Largest portfolio of international brands making Reliance Retail a partner of choice • Launched www.ajio.com, the curated fashion and lifestyle e-commerce platform • India ke Hunger ki Bajao - Reliance Fresh has joined hands with Akshay Patra, an NGO which serves nutritious meals to over 1.4 million children in more than 10,000 schools across 10 states of India • During the year, Reliance Retail launched ‘LYF’ its own brand of 4G LTE smartphone and 4K televisions • For pan India distribution set-up over thousand distributors were on-boarded with another 1,20,000 device outlets signed • Launch of 2 new renowned international brands - BCBG MAX Azria and Juicy Couture ACHIEVEMENTS IN FY 2015-16 3,245 Stores operated with over 12.8 million square feet of retail space across India and currently operating 3,383 stores 624 New stores added during the year 40+ Brands portfolio span across the entire spectrum of luxury, bridge to luxury, high-premium and high-street lifestyle space 30 million Registered members under customer loyalty programme Over 500 Cities and towns covered Reliance Retail 2.0 initiatives Encompassing Fashion and Lifestyle e-commerce, development of market place platforms and building of a distribution ecosystem for 4G devices are on track and are being rolled out in a phased manner Largest cash and carry player Reliance Market continues to build on its leadership position as the largest cash and carry player Read more about Retail operations on Pg. 88 33 148255GovernanceCorporate Overview0254256379Financial Statements55147Management Review380396Shareholder InformationReview of Operations Digital Services Jio promises to shape the future of India by providing end-to-end digital solutions for businesses, institutions and households and seamlessly bridging the rural-urban divide. SPECTRUM 846.1 MHz INFRASTRUCTURE 8,100 KM Cable System - Bay of Bengal Gate 2,50,000+ KM Largest fibre network ~5,00,000 SQ. FT. Integrated data centres PRESENCE 29 STATES 18,000+ towns 1,50,000+ villages 34 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Review of Operations COMPETITIVE STRENGTH ACHIEVEMENTS FOR FY 2015-16 • With proposed investment outlay of over `1,50,000 crore, • As part of the trial launch currently over 15 lakh users are Jio is the world’s largest start-up. Jio is rolling out the largest Greenfield LTE deployment in the world co-creating the Jio experience • Most sophisticated and one of the largest telecom networks in the country • First telecom operator to hold pan India Unified License, holds 846.1 MHz of liberalised spectrum across 800 MHz, 1800 MHz and 2300 MHz bands • Launched along with partners, state-of-the-art 8,100 km cable system, the Bay of Bengal Gateway (BBG). It provides direct connectivity to South East Asia and the Middle East, then onward to Europe, Africa and Far East Asia through seamless interconnection with existing cable systems • Direct physical presence across all 29 states • Customer offering is built on four key strategic dimensions - • Largest fibre network (more than 2,50,000 route km) and widest coverage of Long Term Evolution (LTE) services, superior network quality, transformational data capacity and affordable services highest amount of LTE-ready spectrum as compared with the current industry players • Next generation network which is amongst the best in the world with advanced features such as Software Defined Networking (SDN) and Network Functions Virtualisation (NFV). Ready for future evolution of technology including transition to 5G with minimal additional capital expenditure in the network • Built nearly half-a-million square feet of cloud data centres and a multi-terabit capacity international network Read more about Digital Services operations on Pg. 94 35 148255GovernanceCorporate Overview0254256379Financial Statements55147Management Review380396Shareholder InformationReview of Operations Media and Entertainment Network18 is one of India’s leading Media and Entertainment (M&E) players, with a presence across several businesses including television content production and distribution, theatrical exhibition of films and media services. PERFORMANCE IN FY 2015-16 INCOME FROM OPERATIONS `3,403 CRORE 8.8% FY 2015-16 FY 2014-15 `3,403 crore `3,127 crore EBIT `182 CRORE 27.3% FY 2015-16 FY 2014-15 36 `182 crore `143 crore Top to Bottom: Newsroom, CNBC TV18 Studio, CNBC Awaaz Studio Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Review of Operations STRATEGIC ADVANTAGES START-UPS AND INITIATIVES • Consumers engagement with a diverse content platter • New android and iOS app was launched for – for younger and more aware customers MoneyControl.com and Overdrive • Network alliance – Unique mix of national and regional • Firstpost.com was one of the first publications to go on the content Google AMP platform • • International Collaboration – Best-in-class content, diverse genres, digital content and services Innovation – Early adopter of latest technology including customer analytics • Creation of new platform – Platform agnostic approach enables wider reach • Speed and agility – Keeping viewers ahead in life • Homeshop18 continued to expand geographically by strengthening its distribution network and it reaches to more than 55 million viewers on TV • Forbes continued to engage audience with its rich content and special events and issues. Forbes India saw the highest number of subscriber copies circulated for any month in Dec 2015 COMPETITIVE STRENGTH • CNBC-TV181 and CNBC Awaaz2 maintained No.1 position ACHIEVEMENTS FOR FY 2015-16 • New additions: in their respective genres with a market share of 50% and 63%, respectively • CNN-News183 was the No. 1 General English News channel on Budget Day, with 35% market share, continued to be a dominant player in English General News reaching out to more than 33 million viewers4 • Nick5 continued to lead the Kids genre with a viewership share of 30% • Vh16 was the No.1 in the English entertainment and music genre with 24% • History TV187 continues to be amongst the top 2 players in the genre across 6 Megacities, with a viewership share of 24% • BookMyShow8, India’s largest entertainment ticketing company recorded an average of 71 million visits per month. It was sole ticketing partner for ICC T20 World Cup 2016 ETV News Odia regional news channel was launched in 2015 Colors Infinity, an English general entertainment channel was successfully launched with premium international content • Viacom18 Motion Pictures produced and released films ‘Gabbar is Back’, ‘Margarita with a Straw’, ‘Drishyam’ and ‘Manjhi’ which were well received from critics and audience alike • IBN Lokmat bagged the prestigious ‘Ramnath Goenka Excellence in Journalism Awards’ • CNBC Awaaz conducted the first of its kind technology awards ‘Tech Guru Awards’ • Colors is amongst the most widely viewed channel in its genre • Firstpost.com - India’s first and the biggest digital-only newsroom • Network18’s bouquet of more than 30 television channels • HomeShop18 has been acclaimed as the ‘Trend Setter in offers a unique mix of national and regional channels, catering to diverse genres • ‘Overdrive’, ‘Better Photography’ and ‘Better Interiors’, Network18’s Publishing division reached out to over 1 million readers on a monthly basis across platforms8 Sources 1. BARC| India/ India Urban| NCCS A 22+ male| 1st Jan-31st Mar’16, 24hrs 2. BARC|HSM| NCCS AB 22+ male 1st Jan-31st Mar’16, 24hrs 3. BARC, Cumulative Cov [Mns], NCCS 4+, 1st Jan-31st Mar’16, 24 Hrs, All Days, All India Shopping Channels’ at the 7th BCS Ratna Awards in March 2016 4. BARC, Cumulative Cov [Mns], NCCS 4+, 1st Jan-31st Mar’16, 24 Hrs, All Days, All India 5. BARC: 4-14, All India, NCCS ABC (0700-2200hrs) for weeks 41, 2015 to 13, 2016 (period for which BARC individual ratings are available) 6. BARC: TG: 15-40, NCCS AB, market: 6 mega cities; time period: all days, 0200-2559 hrs., weeks 41, 2015 to 13, 2016 7. BARC: week 12-13, 6 mega cities, NCCS AB 15 +, all India, all days, avg weekly GTVTs 8. Internal Data Analysis Read more about Media and Entertainment operations on Pg. 99 37 148255GovernanceCorporate Overview0254256379Financial Statements55147Management Review380396Shareholder InformationReliance Industries Limited Enhancing the quality of life. Starting up to a digital life. Annual Report 2015-16 Reliance Foundation Rural Transformation • Livelihoods of more than 19 lakh farmers and fisherfolks enhanced with support from Reliance. • Over 17,000 people supported to reach nutrition self-sufficiency • 6,749 Ha of land was brought under improved cultivation practices Environment • Over 5.4 lakh saplings planted • 103 lakh cubic metre of rainwater harvesting capacity created • 107 villages secured for drinking water through sustainable rainwater harvesting initiatives • Supported rehabilitation of 8 villages from tiger reserve forest Health • Over 5 lakh health consultations provided to patients through Reliance managed hospitals, mobile and static medical units and various health camps • 8,480 women screened for anaemia of which over 3,165 diagnosed and received follow up treatment for it • 12,283 children were screened for malnutrition of which 1,459 received follow-up for malnutrition • Reliance entered into a consortium to set-up Project ASMAN for improving maternal and child health outcomes Education • Provided scholarships to over 687 meritorious students to pursue higher education • Education for All initiative reached out to 85,000 children Sports for Development • Engaged with over 19 lakh youth across 18 cities who were encouraged to adopt healthy and active lifestyle by integrating basketball into their physical education curriculum • 23 children were awarded scholarships under Young Champs programme for developing football abilities Disaster Response • Over 1.46 lakh individuals across 218 villages in seven districts reached through disaster relief measures • 25 villages supported in the journey towards drought proofing Arts, Culture and Heritage • Extended support to the annual concert, “Abbaji”, organised by Ustad Zakir Hussain in the memory of his father, Ustad Allah Rakha Khan. This concert featured renowned musicians who came together to pay tribute to the legendary Guru Reliance ushers change through focus areas: rural transformation, environment, health, education, sports for development, disaster response and arts, culture and heritage. The Company’s CSR initiatives are guided by three core principles of scale, impact and sustainability leading to maximisation of societal value. All along, leveraging of technology helps create a multiplier effect for the socio economic development of the marginalised communities. Reliance’s CSR initiatives, in compliance with schedule VII of the Companies Act, 2013, are driven by a professional team of 450 experts. Over the past years, the CSR expenditure has been more than 2% of the net profit. Reliance’s approach to social development is aligned to the five broad dimensions of sustainability as under. Planet: Water harvesting and conservation, provision of clean drinking water, energy conservation, environment protection and cleanliness. People: Providing access to quality education, scholarship opportunities for pursuing higher education, promoting skills in sports, ensuring access to quality healthcare including maternal and child health services, and improving food and nutrition security. Products and Processes: Process improvements through technology and innovations for optimal outcomes. Prosperity: Promoting sustainable agricultural practices, skill building for alternative livelihoods, employment and income generation. Disaster relief to mitigate human suffering during natural calamity. Peace and Partnerships: Aligning with organisations and governments for synergistic efforts for larger impact. All these initiatives has impacted the lives of over 6 million people so far, across 14 States and 2 Union Territories, covering more than 10,500 villages. Key highlights of CSR initiatives through Reliance Foundation and manufacturing locations for FY 2015-16: 38 n o i t a m r o f s n a r T l a r u R t n e m n o r i v n E h t l a e H n o i t a c u d E t n e m p o e v e d l r o f s t r o p S e s n o p s e R r e t s a s i D e g a t i r e H e r u t l u C , s t r A d n a Reliance Industries Limited Enhancing the quality of life. Starting Up to a digital life. . Annual Report 2015-16 Awards and Recognition Smt. Nita M. Ambani named the most powerful businesswoman in Asia by Forbes Shri Mukesh D. Ambani was awarded the prestigious Othmer Gold Medal by Chemical Heritage Foundation, USA Shri Mukesh D. Ambani was elected as a Foreign Member of the prestigious US National Academy of Engineering RIL is top Indian Company and 14th on the Platts Top 250 Global Energy Company List (2015) CORPORATE SOCIAL RESPONSIBILITY QUALITY • Won the ‘Platts Global Energy Award’ in the Corporate Social Responsibility (CSR) category • Awarded the ‘Prestigious Porter Prize 2015’ for its outstanding contribution to the society • Nepal Red Cross Society appreciated the Foundation for its relief measures after the earthquake shattered thousands of lives in the country • Won the ‘Global CSR Excellence and Leadership Awards - 2016’ under the ‘Best use of Corporate Social Responsibility practices’ under the category of the Manufacturing sector during the World CSR Congress in Mumbai 40 • Won the ‘Quality Achievements Award’ under GOLD Category by ESQR (European Society for Quality Research) HEALTH SAFETY AND ENVIRONMENT • Awarded ‘Rashthra Vibhushan Gold Award’ 2015 towards Health Excellence • Won the ‘14th Annual Greentech • Won ‘Lean and Six Sigma Excellence Safety Award 2015’ Award 2015 (LSSEA 2015)’ organised by Symbiosis Centre For Management and Human Resource Development (SCMHRD) SUSTAINABILITY • Winner of ‘Golden Peacock Global Award for Sustainability’ for the year 2015 • Rated ‘Platinum in the CII Sustainable Plus’ Ratings – 2015 CAPITAL RESOURCES • • ‘Project sponsor of the Year’ - 2015 from the Asset ‘Best Syndicated Loan of The Year’ Award from the Asset as Well as Asia Pacific Loan Market Association (Aplma) for US$1.5 billion Syndicated Loan Refinancing Read more about Awards and Recognition on Pg. 129 Awards and Recognition | Company Information Company Information BOARD OF DIRECTORS Chairman and Managing Director Mukesh D. Ambani Executive Directors Nikhil R. Meswani Hital R. Meswani P. M. S. Prasad Pawan Kumar Kapil Non Executive Directors Mansingh L. Bhakta Yogendra P. Trivedi Dr. Dharam Vir Kapur Prof. Ashok Misra Prof. Dipak C. Jain Dr. Raghunath A. Mashelkar Adil Zainulbhai Nita M. Ambani Raminder S. Gujral Chief Financial Officer Alok Agarwal Group Company Secretary and Chief Compliance Officer K. Sethuraman Joint Chief Financial Officer Srikanth Venkatachari Auditors Chaturvedi & Shah Deloitte Haskins & Sells LLP Rajendra & Co Solicitors & Advocates Kanga & Co Corporate Social Responsibility and Governance Committee Yogendra P. Trivedi (Chairman) Nikhil R. Meswani Dr. Dharam Vir Kapur Dr. Raghunath A. Mashelkar Finance Committee Mukesh D. Ambani (Chairman) Nikhil R. Meswani Hital R. Meswani Health, Safety and Environment Committee Hital R. Meswani (Chairman) Dr. Dharam Vir Kapur P.M.S. Prasad Pawan Kumar Kapil BOARD COMMITTEES Audit Committee Yogendra P. Trivedi (Chairman) Dr. Raghunath A. Mashelkar Adil Zainulbhai Raminder S. Gujral Stakeholders Relationship Committee Yogendra P. Trivedi (Chairman) Nikhil R. Meswani Hital R. Meswani Prof. Ashok Misra Human Resources, Nomination and Remuneration Committee Adil Zainulbhai (Chairman) Yogendra P. Trivedi Dr. Dharam Vir Kapur Dr. Raghunath A. Mashelkar Risk Management Committee Adil Zainulbhai (Chairman) Hital R. Meswani P.M.S. Prasad Alok Agarwal Srikanth Venkatachari BANKERS Allahabad Bank Andhra Bank Bank of America Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Citibank N.A Credit Agricole Corporate and Investment Bank Corporation Bank Deutsche Bank The Hong Kong and Shanghai Banking Corporation Limited HDFC Bank Limited ICICI Bank Limited IDBI Bank Limited Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab National Bank Standard Chartered Bank State Bank of Hyderabad State Bank of India State Bank of Patiala Syndicate Bank The Royal Bank of Scotland Union Bank of India Vijaya Bank MAJOR PLANT LOCATIONS Dahej Mfg. Division P. O. Dahej, Taluka: Vagra, District Bharuch - 392 130, Gujarat, India Hazira Manufacturing Division 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 REGISTERED OFFICE 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021, India Tel: +91 22 2278 5000 e-mail: investor_relations@ril.com | Fax: +91 22 2278 5111 | Website: www.ril.com KG D6 Onshore Terminal Village Gadimoga, Tallarevu Mandal, East Godavari District – 533 463, Andhra Pradesh, India Patalganga Manufacturing Division B-1 to B-5 & A3, MIDC Industrial Area, P. O. Rasayani, Patalganga – 410 220, District Raigad, Maharashtra, India Nagothane Manufacturing Division P. O. Petrochemicals Township, Nagothane - 402 125, Roha Taluka, District Raigad, Maharashtra, India Vadodara Manufacturing Division P. O. Petrochemicals, Vadodara - 391 346, Gujarat, India REGISTRARS & TRANSFER AGENTS Karvy Computershare Private Limited, Karvy Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad 500 032, India Tel: +91 40 6716 1700 | Toll Free No.: 1800 425 8998 e-mail: rilinvestor@karvy.com Website : www.karvy.com | Fax: +91 40 6716 1680 42nd Annual General Meeting on September 1, 2016 at 11:00 a.m. at Birla Matushri Sabhagar, 19, New Marine Lines, Mumbai 400 020. 41 148255GovernanceCorporate Overview256379380396Financial StatementsShareholder InformationManagement Review025455147 Major Products and Brands Business/Brand Product / Service Brand Logo End Uses REFINING AND MARKETING REFINING Propylene Naphtha Gasoline Superior Kerosene Oil High Speed Diesel Sulphur Petroleum Coke Alkylate Feedstock for polypropylene Feedstock for petrochemicals such as ethylene, propylene & fertilisers, etc. and as fuel in power plants Transport fuel Domestic fuel Transport fuel Feedstock for fertilisers and pharmaceuticals Fuel for power plants and cement plants High Octane blend stock for gasoline PETROLEUM RETAIL GAPCO Reliance Gas Petroleum Retail Retail distribution of fuels Liquefied Petroleum Gas (LPG) Domestic, commercial and industrial fuel Reliance Petroleum Retail Transportation fuels Retail distribution of fuels Reliance Aviation Jet / Aviation Turbine Fuel Aviation fuel Auto LPG Auto LPG Auto fuel outlet Trans Connect Fleet Management Services Fleet Management Solutions A1 Plaza Highway Hospitality Services Highway food plaza R-Care Vehicle care services Vehicle service, repair and preventive maintenance Qwik Mart Convenience shopping Shopping of beverages, snacks, gifts on highways Refresh Relstar Foods Lubricants PETROCHEMICALS POLYMERS Repol Polypropylene (PP) 42 Passengers amenities/food court on highways Lubricants Woven sacks for packaging of cement, food-grain, sugar, fertiliser; leno bags for packaging of fruits & vegetables, TQ & BOPP films for packaging of textiles, films and containers for processed food, FMCG, office stationery; components for automobile and consumer durables, moulded furniture, luggage, housewares, geo-textiles & fibres for non-woven textiles and pipes. Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Business/Brand Product / Service Brand Logo End Uses POLYMERS Relene Polyethylene (HDPE, LLDPE & LDPE) Ethylene Vinyl Acetate Copolymer (EVA) Reon Polyvinyl Chloride (PVC) Relpipe Poly-Olefin HDPE and PPR pipes 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. Footwear Pipes & fittings; door & window profiles, insulation & sheathing for wire & cables, rigid bottles & containers for packaging applications, I.V. fluid & blood bags and calendered films for pharmaceutical applications. footwear, flooring, partitions, roofing, Irrigation, water supply projects, sewerage and drainage, industrial water/fluids/effluents mines, transportation, gas distribution network, telecom cable ducts and micro ducts for FTTx, plumbing & construction. fields, coal Relflex™ Elastomers Relflex™ Cisamer PBR Relflex™ Stylamer SBR CHEMICALS Relab Synthetic Rubbers Tyres, Footwear soles & heels, belts, hoses etc. Polybutadiene Rubber (PBR) Styrene Butadiene Rubber (SBR) 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 POLYESTER & FIBRE INTERMEDIATES Paraxylene (PX) Purified Terephthalic Acid (PTA) Mono Ethylene Glycol (MEG) Raw material for PTA Raw material for polyester 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 Conveyor belts, ropes, geo-grids, seat-belts, lashings, slings, industrial fabrics etc. Recron® SHT Polyester Super High Tenacity Fibres Hi-Strength, Low-shrinkage Sewing threads for apparel, home and industrial applications 43 Major Products & BrandsGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Business/Brand Product / Service Brand Logo End Uses POLYESTER & FIBRE INTERMEDIATES Recron® Fancyy Innovative Polyester Filament yarns Value-added fine quality fashion fabrics with unique weave patterns, textures and hand-feel. Recron® Stretch Stretch yarns for comfortable fit and freedom of movement Blouse material, denim, shirting, suiting, dress material, T-shirt, sportswear, swimwear, medical bandages & diapers Recron® Cotluk Cotton Look, Cotton Feel Yarns Recron® Dyefast Can dye at boiling water temperature with high colour fastness Dope dyed black with high consistency in shade Recron® Superblack Recron® Superdye Recron® Kooltex Moisture management yarns Bright, brilliant colours and soft feel, low pill Dress material, shirting, suiting, furnishing fabric, curtain & bed sheet Ladies outerwear, feather yarn for knitted cardigan, decorative fabric & home furnishing Apparel, automotive, non-woven & interlining Woven & knitted apparel, furnishing & home textile Active sports and high performance wear Recron® Fibrefill Hollow fibres with high bounce and resilience Pillows, cushions, quilts, mattresses, furniture, toys & non- wovens Recron® 3D Conjugate Recron® 3S Virgin superwhite fibres with a unique spiral structure Secondary Reinforcement Products Sleep and comfort products, Furniture, Toys & Beddings Construction industry (concrete/mortar), cement (sheet & pipe), paper industry (conventional & speciality), battery industry, wetlaid industry (wall papers, filtration, wipes & hygiene products) & Asbestos replacement Recron® Certified Quality Certified Sleep Products Pillows, cushions, blankets & quilts Recron® Low Pill Polyester Tow & Staple Fibre with unique low pill properties Anti microbial fibres & yarns Recron® FeelFresh Recron® Micrelle Bi-component filament yarns High-end worsted suitings, upholstery fabrics & socks Active sportswear, Intimate apparel, socks, home furnishings & garments used in healthcare industry Super soft and ultra comfortable fabrics Recron® Recrobulk Recron® GreenGold Recron® Spunlace Recron® RecoSilk Recron® FR Recron® Duratarp 44 Hi-bulk fibres for soft-feel & warmth Sweaters, pullovers, cardigans, shawls & jackets Eco-friendly fibres made from 100% post-consumer polyester waste Speciality polyester fibres Speciality Polyester Filament Yarns Flame retardant Fibres & Yarns Polyester Fibres with increased abrasion resistance for better water proof, tear proof and fade- proof qualities Apparel & home textiles High quality non-woven products for the healthcare & hygiene industry Ideal for dress materials, velvet, sarees, embroidery threads with a silken shimmer and in swathes of colour. Institutional textiles for hospitality, entertainment, transport, safety etc. Also used in home textiles, fill & comfort products. Tarpaulin, Tents & Awnings Annual Report 2015-16Major Products and Brands (Continued) Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Business/Brand Product / Service Brand Logo End Uses POLYESTER & FIBRE INTERMEDIATES Recron® Safeband Structurally modified polyester fibre with antimicrobial and antifungal properties Relpet® Polyethylene Terephthalate (PET) OIL AND GAS EXPLORATION AND PRODUCTION Crepe, Rolled Bandages & Surgical Dressings Packaging pharmaceutical, agro-chemical and food products for bottled water, beverages, confectionary, Crude Oil and Natural Gas Refining, power, industries fertilisers, petrochemicals and other RETAIL OWNED Reliance Retail Reliance Retail Organised retail Reliance Fresh Food & Grocery Specialty Store Reliance Smart Hypermarket Reliance Market Wholesale Store Fresh vegetables, grocery, general and convenience merchandise Grocery, clothing, merchandise Grocery, clothing, merchandise footwear, electronics and general footwear, electronics and general Reliance Digital Electronics Specialty Store Computers, mobiles, entertainment, gaming merchandise Reliance Digital Xpress Mini Specialty Store for mobility & communication Products and Services relating to mobility needs through smart phones, tablets, accessories, peripherals iStore Exclusive Apple Store Range of Apple products Reliance Resq Digital Service Center Services (Guidance, Installation, Maintenance & Repair) for Digital products Reliance Jewels Jewellery Specialty Store Fine jewellery Reliance Trends Apparel Specialty Reliance Footprint LYF Footwear Specialty Store Connectivity devices and consumer electronics Footwear for men, women and kids, sports, handbags and accessories Men, ladies, children footwear, sportswear, handbags and accessories 4G Devices i.e. Smartphones, Wifi, Dongle, etc., television 45 Major Products & BrandsGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Business/Brand Product / Service Brand Logo End Uses EXCLUSIVE BRAND PARTNERSHIP Ermenegildo Zegna Italian Luxury Men’s Clothing Apparel, Accessories and Footwear for Men Paul & Shark Italian luxury sportswear brand Apparel, Accessories and Footwear for Men Thomas Pink British Shirt Authority Apparel and Accessories for Men Brooks Brothers American icon that has redefined & shaped classic American style for nearly two centuries Apparel and Accessories for Men Diesel Iconic Italian Lifestyle Brand Apparel, Accessories and Footwear Kenneth Cole Urban fashion & Lifestyle brand that exudes metropolitan lifestyle of New York city Superdry Fashion brand that fuses design influences from Japanese graphics and vintage Americana, with the values of British Tailoring Dune Distinctive Fashion footwear & Accessories Steve Madden Fashion forward Footwear & Accessories Brand BCBG Max Azria Contemporary women’s clothing brand Apparel, Accessories and Footwear Apparel, Accessories and Footwear Accessories and Footwear for Men and Women Accessories and Footwear for Men and Women Apparel, Accessories and Footwear Juicy Couture Casual luxury lifestyle brand Apparel, Accessories and Footwear Hamleys The finest toy shop in the world Toys Vision Express Optical Specialty Store Spectacles, Sunglasses, Contact Lenses Marks & Spencer International Apparel, Accessories & Home Products Store Apparel for Women, Men and Children, Lingerie, Beauty and Home Décor Affordable Fashion Footwear Specialty Store 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” Payless Quiksilver Roxy 46 ladies, kids and sports footwear, handbags and Mens, accessories Apparel, Accessories, Footwear, Skateboards & Surfboards Apparel, Accessories, Swimwear, Footwear for girls Annual Report 2015-16Major Products and Brands (Continued) Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Business/Brand Product / Service Brand Logo End Uses EXCLUSIVE BRAND PARTNERSHIP DC GAS MUJI REISS 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. Apparel, Accessories, Footwear, Skateboards Apparel, Accessories, Footwear for men & women Iconic Japanese lifestyle brand Accessories, Home, Apparel, Travel, Beauty, Stationery Affordable luxury fashion brand Apparel,Accessories and Footwear Hunkemoller Leading European lingerie brand Lingerie, Nightwear, Swimwear, Accessories Kate Spade Accessible luxury for women Handbags, Small Leather Goods, Apparel, Footwear ICONIX Diversified portfolio of fashion and home brands Apparel, Footwear, Accessory, Home Fashion TEXTILES OWNED 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 Anti-Microbial Fabric Finish Technology V2 DEO2 LICENSED Fabrics Fabrics Fabrics, suits, jackets, shirts & trousers Georgia Gullini Suitings, Shirtings Fabrics 47 Major Products & BrandsGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Business/Brand Product / Service Brand Logo End Uses DIGITAL SERVICES Jio Connected Intelligence MyJio Gateway to Jio Apps JioPlay Instant access to TV Programmes JioOnDemand Entertainment at your fingertips JioBeats Music for you. Anytime, Anywhere JioMags There is always more to read JioXpressNews Stay Updated. Stay ahead JioChat An efficient way to stay connected JioDrive You files are one touch away JioJoin Make any phone VoLTE ready JioMoney Experience cashfree living JioSecurity Protect your phone, secure your data JioNews Your News, Your language 48 Jio is an ecosystem - of best-in-class devices, applications, networks. And the sum of its parts, is greater than the whole, a network effect by design MyJio is The One App to rule them all - everything from signing up and paying bills to topping up and managing all your account With JioPlay watch LIVE TV (including HD) on smartphones and tablets, set reminders and even Catch-Up with missed programs One-stop platform for HD content across various languages and genres with adaptive streaming anytime, anywhere Music comes alive with JioBeats. With an unmatched library and built-in intelligence to enhance music listening experience Rich library of premium magazines to provide an experience of reading a real magazine. Ability to listen to articles, highlight, underline, bookmark. Podcasts and videos to go with your articles News of the world, customised just for you. User selected preferences, such as language, publications and categories of news, drives what makes the cut A OTT app that has unique features like multi-party video conferencing, audio and video notes, large-size group (500 members), regional stickers, and interface in 10 Indian languages, doodles, and file-sharing Store online securely all your photos, videos, docs, songs organized at one place A telco-grade smartphone app JioJoin enables customers to enjoy Jio’s latest communication services like HD Voice, Video calls, SMS on non-VoLTE devices Jio Money helps consumers by digitizing everyday transactions to make smart, simple and secure payments Your power against threats to digital life. Award winning app advisor and anti-virus protects your device 24x7 proactively against risk apps and virus attacks Read newspapers with editions from all major publications available in multiple languages. You can personalize your reading by setting up your for auto-download Annual Report 2015-16Major Products and Brands (Continued) Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Business/Brand Product / Service Brand Logo End Uses MEDIA AND ENTERTAINMENT TV CHANNELS CNBC TV18 English Business News Channel English Business news CNBC Awaaz Hindi News Channel Hindi Business news CNBC Bajar Gujarati News Channel Gujarati Business news CNN IBN English General News Channel English language news and current affairs IBN 7 Hindi General News Channel Hindi language news channel News18 India English General News Channel News from India for Indian diasporas outside IBN Lokmat Marathi News Channel National and International news for Marathi viewers ETV Urdu Regional News Channel Urdu news channel ETV Rajasthan Regional News Channel Rajasthani news channel ETV Bihar Jharkhand ETV Uttar Pradesh Uttarakhand ETV Madhya Pradesh Chhattisgarh ETV News Gujarati ETV News Kannada Regional News Channel Regional news for Bihar and Jharkhand Regional News Channel Regional news for Uttar Pradesh and Uttarakhand Regional News Channel Regional news for Madhya Pradesh and Chhattisgarh Regional News Channel Gujarati news channel Regional News Channel Kannada news channel ETV News Bangla Regional News Channel Bangla news channel 49 Major Products & BrandsGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Business/Brand Product / Service Brand Logo End Uses TV CHANNELS ETV Haryana Himachal Pradesh ETVOdiya Regional News Channel Regional news for Haryana and Himachal Pradesh Regional News Channel Oriya news channel Colors Hindi general Entertainment Channel Hindi mass entertainment channel Colors Infinity English Entertainment Channel English entertainment for inclusive family viewership Rishtey Hindi general Entertainment Channel Hindi mass entertainment channel MTV India Music Channel Music destination for the youth Vh1 English Music and Lifestyle Channel English music destination for the youth Comedy Central English Entertainment Channel English entertainment for inclusive family viewership Nickelodeon Kids Channel Comedy destination for kids Sonic Kids Channel Action and adventure entertainment for kids and young adults Nickelodeon Junior Kids Channel Entertainment aimed at pre-school kids Colors Marathi Regional Entertainment Channel Marathi entertainment channel 50 Annual Report 2015-16Major Products and Brands (Continued) Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Business/Brand Product / Service Brand Logo End Uses TV CHANNELS Colors Kannada Regional Entertainment Channel Kannada entertainment channel Colors Bangla Regional Entertainment Channel Bangla entertainment channel Colors Gujarati Regional Entertainment Channel Gujarati entertainment channel Colors Odia Regional Entertainment Channel Oriya entertainment channel History TV18 Infotainment Channel Factual Entertainment channel FILMED ENTERTAINMENT Viacom18 Motion Pictures Filmed Entertainment CONTENT ASSET MONETIZATION IndiaCast Multi-platform ‘Content Asset Monetization’ entity DIGITAL CONTENT Moneycontrol Financial news and services portal Acquisition, production, syndication, marketing and distribution of full length feature films within India and distribution of Indian films in several international markets International Channel distribution, advertising sales on international Channels and content Syndication Comprehensive analysis across asset classes financial information, news and in-depth IBNLive News and entertainment portal Real-time coverage, sports updates, entertainment buzz, anchor blogs & chats and Live TV for CNN-IBN, IBN7 and IBN-Lokmat Firstpost Online news and views website Digital newsroom powered by expert writer-editors across the country and the globe News18.com Regional news website Web, mobile & tablet service with focus on news at the state & city level 51 Major Products & BrandsGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Business/Brand Product / Service Brand Logo End Uses FILMED ENTERTAINMENT In.com News and entertainment portal Content & videos of Network18 entertainment channels and websites and popular third party websites Burrp Lifestyle portal Social lifestyle portal for metropolitan Indian market DIGITAL COMMERCE HomeShop18 Retail platform Integrated virtual shopping on Internet, Television and Mobile BookmyShow Online ticket booking platform Online ticket booking for movies, plays, sporting events and shows TV | WEB | MOBILE PUBLISHING BUSINESS Forbes India Business Magazine Lifestyle magazine targeting India’s affluent and influential individuals Better Photography Photography Magazine Magazine for photography enthusiasts Better Interiors Interiors Magazine Magazine for interiors ideas and design Overdrive Auto Publication Publication for auto enthusiasts and users ALLIED BUSINESS Topper Learning Education Educational content for K-12 students T PPER L E A R N I N G G e t M o r e M a r k s Colosceum Production House Content producers specializing in TV and filmed entertainment Capital 18 Investment Investment arm of Network18 C O L O S C E U M M E D I A P R I V A T E L T D 52 Annual Report 2015-16Major Products and Brands (Continued) Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Major Products & Brands | Product Flow Chart Product Flow Chart Styrene 53 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Financial Highlights RIL Standalone ` in crore $ Mn 2015-16 14-15 13 -14 12 -13 11-12 10 -11 09 -10 08 - 09 07- 08 06 - 07 Revenue From Operations 37,920 251,241 340,814 401,302 371,119 339,792 258,651 200,400 146,328 139,269 118,354 Total Income 39,065 258,823 349,535 410,238 379,117 345,984 261,703 202,860 148,388 144,898 118,832 Earnings Before Depreciation, Finance Cost and Tax Expenses (EBDIT) 7,203 47,721 40,323 39,813 38,785 39,811 41,178 33,041 25,374 28,935 20,525 Depreciation and Amortisation 1,444 9,566 8,488 8,789 9,465 11,394 13,608 10,497 5,195 4,847 4,815 Exceptional Items Profit For the Year Equity Dividend %* Dividend Payout Equity Share Capital Equity Share Suspense Account Equity Share Warrants Reserves and Surplus Networth Gross Fixed Assets Net Fixed Assets Total Assets Market Capitalisation Number of Employees - - - - - - - -370 4,733 - 4,138 27,417 22,719 21,984 21,003 20,040 20,286 16,236 15,309 19,458 11,943 105 467 489 105 100 95 90 85 80 70 130 130 110 3,095 2,944 2,793 2,643 2,531 2,385 2,084 1,897 1,631 1,440 3,240 3,236 3,232 3,229 3,271 3,273 3,270 1,574 1,454 1,393 - - - - - - - - - - - - - - 69 - - 1,682 60 - 35,761 236,936 212,923 193,842 176,766 162,825 148,267 133,901 124,730 78,313 62,514 36,250 240,176 216,159 197,074 179,995 166,096 151,540 137,171 126,373 81,449 63,967 55,711 369,111 311,815 264,281 232,270 205,493 221,252 228,004 218,673 127,235 107,061 35,965 238,289 190,316 151,122 128,864 121,477 155,526 165,399 169,387 84,889 71,189 69,085 457,720 397,785 367,583 318,511 295,140 284,719 251,006 245,706 149,792 117,353 51,121 338,703 266,847 300,405 249,802 244,757 342,984 351,320 239,721 329,179 198,905 24,121 24,930 23,853 23,519 23,166 22,661 23,365 24,679 25,487 24,696 Contribution to National Exchequer 6,508 43,117 33,322 31,374 28,950 28,197 28,719 17,972 11,574 13,696 15,344 Key Indicators $ Mn 2015-16 14-15 13-14 12-13 11-12 10-11 09-10 08-09 07-08 06-07 Earnings Per Share - (`) [excluding Exceptional item]* Turnover Per Share - (`) Book Value Per Share - (`) Debt : Equity Ratio EBDIT / Gross Turnover % Net Profit Margin % RONW % ** ROCE % ** 1.28 84.7 70.2 68.0 64.8 61.2 62.0 49.7 49.7 105.3 82.2 11.70 11.19 19.0 10.9 16.3 20 775.30 1,053.3 1,241.7 1,149.5 1,037.8 790.5 612.9 464.9 958.1 814.2 741.20 668.0 609.8 557.5 507.3 463.2 419.5 401.5 560.3 440.0 0.45:1 0.45:1 0.45:1 0.40:1 0.41:1 0.44:1 0.46:1 0.63:1 0.45:1 0.44:1 19.0 10.9 16.3 11.8 6.7 9.9 5.5 10.5 11.7 15.9 16.5 17.3 20.8 17.3 5.7 5.9 7.8 8.1 10.5 14.0 10.1 13.4 12.9 12.8 13.4 15.5 16.4 21.6 28.8 23.5 20 12.7 11.5 11.2 11.6 13.2 13.9 20.3 20.3 20.5 In this Annual Report $ denotes US$ 1US $ = ` 66.255 (Exchange rate as on 31.03.2016) * Adjusted for issue of Bonus Shares in FY 2009-10 in the ratio of 1:1 ** Adjusted for CWIP and revaluation 54 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Management’s Discussion and Analysis Pg. No. Title What’s inside 56/ Overview Macro-economic environment - global and domestic 57/ Highlights and Key Brief overview of business performance and achievements Events 60/ Financial Performance and Review 62/ Business Performance 62/ Refining and Marketing 69/ Petrochemicals 78/ Oil and Gas (E&P) 88/ Retail 94/ Digital Services 99/ Media and Entertainment Financial parameters information (consolidated and standalone) and discussion on key Analysis and description of all major business segments of Reliance covering strategic advantages and competitive strengths. The discussion structure covers the environment the business operated in and how Reliance’s business model and operational excellence helped achieve a strong overall financial performance. In addition growth plans and strategy is elaborated for each business segment including digital services – the new growth platform Care for environment and social wellbeing of local communities is an integral part of Reliance’s operations Y e a r l y R e v e w i 103/ Liquidity and Capital Resources Insights into Reliance’s financing strategy covering resource raising, capital and risk management framework 106/ Growing Responsibly (5P’s) 107/ Planet 109/ People 115/ Products and Processes 121/ Prosperity (Profit) 122/ Peace and Partnerships 123/ Risk and Governance 124/ Enterprise Risk Management 128/ Smart Transformation at Reliance (STAR) Highlights Reliance’s approach towards sustainable and responsible growth focusing on planet, people, products and processes, prosperity and peace and partnership Provides overall perspectives on key strategic risk and governance including the strategy to mitigate risk in Volatile, Uncertain, Complex and Ambiguous (VUCA) business environment The STAR programme covers Reliance’s strategy to build competitive advantage and use technology for its benefit 129/ Awards and Recognitions Reliance’s achievements and efforts in multiple areas are recognised by various domestic and international agencies 131/Glossary i G r o w n g R e s p o n s b y i l i l S u s t a n a b e F u t u r e a n d Management’s Discussion and Analysis Petrochemical Plant at Hazira manufacturing division 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. The Company disclaims any obligation to update these forward-looking statements, except as may be required by law. 56 OVERVIEW FY 2015-16 saw oil prices continue their decline, as the over- supply situation continued in global oil markets. Organisation of Petroleum Exporting Countries (OPEC) decided not to cut production even in the face of persistent US production, as operational break-evens declined further. The slowdown in China, as the economy tries to rebalance from export/investment orientation to consumption, is having knock- on impact on the rest of the world. In particular, other emerging economies who are dependent on Chinese demand to propel their own growth are facing headwinds. In FY 2015-16, resilient urban private consumption (reflected in higher passenger vehicle sales and air traffic growth), and public expenditure were the primary drivers of growth. Global oil demand of 1.8 million barrels per day (mb/d) in Calendar Year (CY) 2015 was at a five year high as low prices and demand for light distillates continue to fuel demand growth. Gasoline demand accounted for nearly half of the global oil demand growth with double-digit demand growth in India and China. During CY 2015, Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.the US saw record auto sales (+5.7% y-o-y). Global demand for jet fuel increased 6.5% led by higher air miles travelled. Medium-term prospects for developed markets remain subdued due to low investment, unfavourable demographics, and weak productivity growth. Britain’s exit from EU may further impact outlook for developed economies. Emerging economies also remain vulnerable to further declines in commodity prices and sharp appreciation of the dollar, which could further strain corporate balance sheets in some countries. India overtook China to become the fastest growing major economy in the world. The growth recovery in the Indian economy has, however, been gradual and asymmetric. Major headwinds to the Indian economy have been in the form of slow agricultural growth due to two consecutive poor monsoons and sharp contraction in exports due to weak global demand and lower commodity prices. The Reserve Bank of India has been easing monetary policy as retail inflation has trended lower and the Central Government has adhered to the fiscal consolidation path. However, policy rate transmission has been poor due to stressed bank balance sheets amongst other reasons. The fall in oil prices was a major terms of trade boost for the Indian economy. This has resulted in a marked improvement in India’s fiscal and external balance position while boosting domestic consumption. In FY 2015-16 India oil demand grew 10.9% led by gasoline at 14.1%, diesel at 7.5%, jet kerosene at 8.8% and naphtha at 20.7%. Petrochemical demand was also robust with polymer demand growth at 15%. HIGHLIGHTS AND KEY EVENTS The benefits of low commodity and crude oil prices for RIL’s downstream business outweighed the impact of these factors on the upstream segment during FY 2015-16. The refining business delivered a standout performance with record profits underpinned by a multi-year high Gross Refining Margin (GRM) and a record crude throughput. The petrochemicals business also delivered a steady performance aided by strong polymer markets and better volumes. The retail business continued on its high growth trajectory – scaling annual sales of `21,612 crore, up 22.5% y-o-y. RIL is nearing the end of the biggest capex cycle in its history and in the history of the Indian corporate sector. Projects worth over US$35 billion will be coming to fruition in FY 2016-17. Reliance Jio Infocomm Limited (RJIL/Jio), a subsidiary of RIL is conducting extensive beta launch testing and stabilisation of its digital services network to create a world-class customer experience. REFINING AND MARKETING – ROBUST PERFORMANCE The refining business had another stellar year - achieving record profits and seven-year high GRM aided by a favourable crude price environment and superior configuration of its refineries. Crude prices were at 12-year lows on oversupply, with OPEC further increasing its production to 31.4 mb/d in CY 2015 as against 30.3 mb/d in CY 2014. The low crude price environment contributed to strong consumption trends in end products with global oil demand reaching a five-year high. RIL’s active optimisation of the crude basket helped to take advantage of the relative strength in products. Inherent flexibility in product slate combined with global reach in placement helped RIL in taking benefit from the volatility in commodity markets. This excellence in operations helped in achieving refining margins of US$10.8/barrel (bbl), which significantly outperformed the Singapore benchmark by US$3.3/bbl for the year. Currently over 1,000 Retail Outlet are operational and RIL achieved industry leading average retail throughput per outlet. Furthermore, the petcoke gasification project is on track towards achieving sustainable long-term energy cost reduction. PETROCHEMICALS – STEADY PERFORMANCE AND CAPACITY EXPANSION Petrochemicals business delivered strong earnings on the back of a strong polymer market and higher volumes. Indian polymer consumption improved significantly during the year with product margins being well above five-year averages. The demand growth rate in India surpassed that of China across all polymers for the first time. During the year, RIL added significant volumes in the polyester chain with the start-up of the 2.3 MMTPA PTA plants (Purified Terephthalic Acid) and the 650 KTA PET plant (Polyethylene Terephthalate). The PET resin plant is one of the largest bottle- grade PET resin capacity at a single location globally, making Reliance a leading PET resin producer globally. RIL’s total PTA capacity has increased to 4.65 Million Metric Tonnes per Annum (MMTPA), with a global capacity share to 4%. The integration of the new PTA plant and PET plant will provide significant logistical advantage to RIL. Even in a lower crude oil scenario, the advantage of having light-feed crackers remains significant. The Refinery Off Gas Cracker (ROGC) and ethane import project are on schedule, to be completed by the second half of FY 2016-17. Along with the aromatics chain expansion, these projects will propel RIL to be among the largest petrochemical companies in the world. OIL AND GAS EXPLORATION AND PRODUCTION - MACRO HEADWINDS IMPACT PERFORMANCE INTERNATIONAL: SHALE GAS The overall macro environment remained challenging for the shale gas business in CY 2015. Weak global demand (especially from China) and increased global supplies from both non-OPEC and OPEC producers impacted realisations adversely putting pressure on commodity prices. In response, Reliance reduced activity levels across all Joint Venture (JVs) and targeted drilling 57 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysison sweet spots. Zero drilling strategy continued for Carrizo JV. At Chevron JV by end of Q4 CY 2015, all rig operations were stopped and Pioneer JV had only five rigs operational by the end of the year (all released during Q1 CY 2016). During CY 2015, gross JV production averaged at ~1.26 Billion of Cubic Feet Equivalent (Bcfe)/day, reflecting growth of 7% y-o-y. Reliance Holding USA Inc., which mainly comprises the shale business, delivered Earnings Before Interest and Tax (EBIT) of `316 crore in CY 2015 compared to `1,949 crore in CY 2014. Operational trends remained strong though drilling and completion activities were slowed down and continuous focus was maintained on growing asset value through reduction in well cost and operating expenditures. The monetisation of RIL’s entire interest in EFS Midstream LLC enabled Reliance to unlock significant value for its shareholders in CY 2015. DOMESTIC OIL AND GAS Lower realisation for liquids and decline in natural gas production has impacted segment EBIT and revenue. Continuous well management activity is being undertaken for production sustenance and augmentation. During the year, RIL made significant steps towards completing Phase-1 development activities in the Coal Bed Methane (CBM) project. RIL also completed Shahdol–Phulpur pipeline and testing and commissioning is under progress. RETAIL BUSINESS – GAINING LEADERSHIP Reliance Retail continued its steady growth momentum with total revenue increasing by 22.5% to `21,612 crore and delivering EBIT of `506 crore. The Company expanded its store network to 3,245 stores adding 624 stores during the year with more than 1,700 stores operating under the digital retail concept. It is currently operating 3,383 stores. During the year, it also launched 4th Generation (4G) Long Term Evolution (LTE) smartphones under the ‘LYF’ brand, offering the latest in smartphone technology at affordable rates for all market segments. LYF phones already accounts for 7.1 percent of India’s smartphone market and is the fifth largest smartphone company by shipments. Reliance Retail continues to optimise its network operations across retail concepts serving the grocery category. Reliance Trends now has 271 stores and continues to consolidate its strength as a value fashion retailer. During the year it partnered with a globally renowned fashion house to augment its in-house product design capabilities, thus bridging gaps in merchandise offerings by bringing global fashion trends to the Indian market. Reliance Market continues to build on its leadership position as the largest cash and carry player, serving a partner base of over 2 million registered members. Reliance Retail 2.0 initiatives encompassing Fashion and Lifestyle e-commerce, development 58 of market place platforms and building of a distribution ecosystem for 4G devices are on track and are being rolled out in a phased manner. includes DIGITAL SERVICES – THE DIGITAL INDIA DREAM Jio is rolling out a state-of-the-art pan India digital services business. This fixed and wireless broadband connectivity services offering superior voice and data quality on an all-Internet Protocol (IP) network. In addition, Jio will offer end-to-end solutions encompassing the entire digital value chain across domains such as education, healthcare, security, communication, financial services, Government-citizen interfaces and entertainment. Jio’s key service objective is to provide anytime, anywhere access to innovative applications and high-speed internet services, thereby propelling India on to global leadership in the digital economy. Jio will bring India into the era of “visuality”, where video will replace voice as the preferred medium of communication. Jio will have one of the most comprehensive and powerful video networks in the world. Jio’s customer offering is built on four key strategic dimensions: the widest coverage of LTE services, superior network quality, transformational data capacity and affordable services. Jio’s deployment of LTE, fibre to the home (FTTH) and Wireless Fidelity (Wi-Fi) will make high-speed broadband access widely available to customers across India. This type of broadband network offers high capacity and low latency access to services at an affordable price, a first for most Indian customers. Jio will enable IP-centric and content-focused services, with the ability to offer rich, multimedia communication and digital services. Jio is in stabilisation phase of this large and complex network and is also testing it’s services end to end for ensuring highest quality of customer service and experience. Jio took significant strides this year by real-time testing its service propositions across the country. Reliance Group employees, channel partners and vendors were amongst the first to test the true LTE experience as part of the trial launch and test programme. Results have been positive with high consumption trends across data and voice. Jio now has over 15 lakh trial users. The current average monthly data and voice consumption per user is in excess of 26GB and over 355 minutes respectively with rapidly increasing trends. The substantial feedback gained from the users will be used to create a compelling service for all customers. Jio has also entered into agreements with various state and local authorities to provide Wi-Fi services. In addition, Jio is looking to partner with colleges and institutions across India to provide Wi-Fi facilities. Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.MEDIA AND ENTERTAINMENT In the Media business, Network18 Media and Investments reported consolidated revenue and EBITDA of `3,403 crore and `271 crore, respectively, for FY 2015-16. Network18 business news channels (CNBC TV18, CNBC Awaaz), general news channels (CNN-News18) and entertainment channels (Colors, Vh1, MTV, Nick) continued to be leaders in their respective genres, reaching out to over 550 million viewers. Network18 continued to witness strong growth in its digital media content. It attracted over 20 million unique visitors per month through the year. Greater Internet and mobile penetration has helped in achieving rapid growth of online media channels like Firstpost, Moneycontrol, BookMyShow, IBNLive and News18 websites in the broadcast business. Financial news channels retained their dominant leadership position in India, continuing to be the No.1 financial news channels in their genres. Viacom18, the general entertainment joint venture, launched VOOT, an exclusive digital video destination, in March, 2016. The Network18 rebranding exercise has started bearing results with Colors emerging as India’s No.1 pay channel with a viewership share of 13% in December 2015. Overall, Network18 had a strong year with greater emphasis being laid on continued long-term profitability. OTHER CORPORATE HIGHLIGHTS LIQUIDITY AND CAPITAL RESOURCES During FY 2015-16, RIL re-priced US$2.2 billion from Export Credit Agencies (ECA)-backed facilities from UK Export Finance (EDC), Compagnie (UKEF), Export Development Canada Française d’assurance pour le Commerce Extérieur (COFACE) and Euler Hermes. Additionally, US$2.67 billion of foreign currency loans were refinanced thereby resulting in interest savings over the remaining life of these loans. RIL priced a Regulation S offering of US$200 million 5% Senior Callable Notes denominated Unsecured dollar, which were to primarily in US Taiwanese listed on the life Taipei Exchange. 2035 issued insurance companies and due RIL became the first private sector energy Company globally to issue US$225 million 2.512% Notes due 2026, guaranteed by the Export-Import Bank of the United States (“Ex-Im Bank”). This was the first such issuance out of India. Its subsidiary, Jio tied up US$750 million Korea Trade Insurance Corporation (K-SURE) supported ECA financing with availability period of two years and a door-to-door tenure of 12 years, which became the largest financing deal globally in the telecom sector supported by K-SURE as well as the longest tenure telecom financing supported by K-SURE. The US$750 million K-EXIM backed financing tied up by Jio in FY 2014-15 won the “Best Telecom Deal” award from The Asset. FINANCIAL INCLUSION in-principle license for roll-out of RIL has been awarded Payments Bank in JV partnership with State Bank of India (SBI). Subsequently, the subscription and shareholders’ agreement was signed by RIL as promoter with a 70% equity contribution and SBI as JV partner with a 30% equity contribution in June, 2016. The proposed JV will enable ubiquitous banking coverage in particular payment services. Low cost distribution via technology and high volume transactions (low value) protocol are the basic tenets of this initiative. The primary objective is to create an ecosystem that covers the daily need of every strata of society and fulfil all their financial and banking needs in an affordable manner. CORPORATE SOCIAL RESPONSIBILITY During the year, Reliance contributed `652 crore towards Corporate Social Responsibility (CSR) which is 2.38% of profit after tax for the year. The Company’s CSR initiatives are guided by three core principles of Scale, Impact and Sustainability. Reliance focuses on ushering in change through the following focus areas: Rural Transformation, Environment, Health, Education, Sports for Development, Disaster Response and Art, Culture and Heritage. Gadag light for education 59 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and AnalysisFINANCIAL PERFORMANCE AND REVIEW “Reliance achieved strong results in a falling oil prices environment which benefited its downstream businesses significantly. This accomplishment came on the back of improved operational performance and prudent risk management. Growth is a key part of its strategy, and Reliance is in the final leg of the largest ever capital expenditure programme in India’s corporate history. Reliance has successfully funded this capex while maintaining investment grade credit ratings. Reliance remains focused on improving shareholder returns and maintaining an optimal capital structure.” ALOK AGARWAL SRIKANTH VENKATACHARI CONSOLIDATED AND STANDALONE FINANCIAL INFORMATION – CONSOLIDATED AND STANDALONE Particulars Revenue from Operations PBDIT Cash Profit Segment EBIT Net Profit Cash and Marketable Securities Fixed Assets Gross Debt Consolidated Standalone FY 2015-16 FY 2014-15 FY 2015-16 FY 2014-15 ` in crore US$ in billion ` in crore ` in crore US$ in billion ` in crore 2,96,091 52,503 40,737 35,770 27,630 86,033 4,19,722 1,81,079 44.7 7.9 6.1 5.4 4.2 13.0 63.3 27.3 3,88,494 45,977 36,291 28,674 23,566 84,472 3,18,523 1,60,860 2,51,241 47,721 37,465 33,942 27,417 75,436 2,38,289 1,07,130 37.9 7.2 5.7 5.1 4.1 11.4 36.0 16.2 3,40,814 40,323 31,832 25,660 22,719 78,291 1,90,316 97,617 Reliance achieved a consolidated turnover of ₹2,96,091 crore (US$44.7 billion) for the year ended 31st March, 2016, a decrease of 23.8%, as compared to ₹3,88,494 crore in the previous year. The decline in turnover reflects a sharp fall in feedstock and product prices during the year, partially offset by record crude throughput and higher petrochemicals volumes. Crude oil price (brent) averaged at US$47.4/bbl in FY 2015-16, a fall of 45% on y-o-y basis. With decrease in oil and product prices, exports from India were lower by 35.8% at ₹1,46,855 crore (US$22.2 billion) as against ₹2,28,651 crore in the previous year. Revenue from the Refining and Marketing segment decreased by 30.9% y-o-y to ₹2,34,946 crore (US$35.5 billion) including inter segment transfers, reflecting sharp fall in average crude oil prices during the year. Refining EBIT increased by 49.1% y-o-y to a record level of ₹23,598 crore (US$3.6 billion), supported by seven-year high GRM. Revenue from the Petrochemicals segment decreased by 14.9% y-o-y to ₹82,410 crore (US$12.4 billion) reflecting lower product prices resulting from sharp decline in crude and feedstock prices. This was partially offset by higher volumes mainly on account of start-up of new PTA and PET capacities during the year. Petrochemicals segment EBIT was at a record level and increased by 23.3% y-o-y to ₹10,221 crore (US$1.5 billion), supported by strong polymer deltas, favourable naphtha cracking economics and rebound in Monoethylene Glycol (MEG) and Paraxylene (PX) deltas. Revenue from the Oil and Gas segment decreased by 34.7% y-o-y to ₹7,527 crore (US$1.1 billion) including inter segment transfers, reflecting the low commodity price environment. The segment EBIT for the year declined sharply by 88.1% to ₹378 crore (US$57 million). The segment profitability was impacted by lower oil and gas price realisations and decrease in domestic upstream volume. US shale operations were impacted by low commodity prices despite marginally higher volumes. 60 Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. debt mainly raised by Reliance Holding USA (₹36,951 crore), Jio (₹33,187 crore), Recron Malaysia (₹1,295 crore), Independent Media Trust Group (₹1,101 crore), Reliance Gas Pipelines Limited (₹700 crore) and Reliance Retail (₹734 crore). Cash and marketable securities were at ₹86,033 crore (US$13.0 billion) resulting in net debt at ₹95,046 crore (US$14.3 billion). RIL’s standalone revenue from operations for FY 2015-16 was ₹2,51,241 crore (US$37.9 billion) a decrease of 26.3% on y-o-y basis. Standalone profit after tax was at ₹27,417 crore (US$4.1 billion) an increase of 20.7% against ₹22,719 crore in the previous year. EPS on standalone basis for the year was ₹84.7 as against ₹70.2 in the previous year. Reliance’s consolidated revenue from operations includes revenue from its subsidiaries mainly from Reliance Retail Ventures Limited of `21,612 crore, GAPCO `11,723 crore and Reliance Holding USA Inc. (Shale) `3,256 crore. Further in addition to standalone profit after tax, consolidated profit after tax was contributed mainly by Reliance Retail Ventures Limited of `212 crore. Indian Accounting Standard RIL and its subsidiaries, associates and joint ventures have adopted Ind AS (the converged IFRS) with effect from April 1, 2016 pursuant to notification issued by Ministry of Corporate Affairs (MCA) notifying Companies (Indian Accounting Standard) Rules 2015 alongwith the subsequent clarification and amendment by MCA. The Company has assessed the effect of transition on reported reserves and surplus as on April 1, 2015 and the significant areas impacting the financial statement are; Change in accounting policy for Oil and Gas Activity – From Full cost method to Successful Efforts Method Availing fair value as deemed cost exemption for Property, plant and Equipment Deferred tax impact of transition adjustments together with Ind AS mandate of using balance sheet approach (against profit and loss approach in the previous GAAP) Other non-significant adjustments includes; fair valuation of ESOP, present valuation of asset retirement obligations, fair value of financial assets. Besides, there will be change in presentation of financial statements with additional disclosures. Reliance Retail reported a turnover of ₹21,612 crore (US$3.3 billion) against ₹17,640 crore during the same period last year, registering a robust growth of 22.5%. Revenue Compounded Annual Growth Rate (CAGR) over the last five years has sustained at 29%. The business delivered highest ever Profit Before Depreciation, Interest and Tax (PBDIT) of ₹891 crore in FY 2015-16 as against ₹784 crore in the previous year. EBIT for the year stood at ₹506 crore, up 21.3% y-o-y. Operating profit before other income and depreciation increased by 18.4% on a y-o-y basis to ₹44,257 crore (US$6.7 billion) from ₹37,364 crore in the previous year. Strong operating performance from the refining and petrochemicals business led to higher operating profits. Other income was lower at ₹7,612 crore (US$1.15 billion) as against ₹8,495 crore in the previous year due to change in investment mix. Interest cost was higher at ₹3,608 crore (US$545 million) as against ₹3,316 crore in the previous year due to higher average debt level and average exchange rates during the year. Depreciation (including depletion and amortisation) was higher by 11.9% to ₹12,916 crore (US$1.9 billion) as compared to ₹11,547 crore in the previous year primarily on account of capitalisation of petrochemicals projects and higher depletion in shale gas business. Profit after tax including exceptional items was higher by 17.2% at ₹27,630 crore (US$4.2 billion) as against ₹23,566 crore in the corresponding period of the previous year. Basic and Diluted earnings per share (EPS) for the year was ₹93.8 as against ₹80.1 in the previous year. The Company has declared dividend of ₹10.5 per fully paid up equity share of ₹10/- each, aggregating ₹3,717 crore (US$561 million), including dividend distribution tax. Reliance’s fixed assets stood at ₹4,19,722 crore (US$63.3 billion) as on 31st March, 2016. This includes fixed assets of ₹1,81,433 crore of its subsidiaries mainly in Jio, Reliance Holding USA and Reliance Retail. Capital expenditure for the year ended 31st March, 2016 was ₹1,12,995 crore (US$17.1 billion) including exchange rate difference capitalisation. Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej and Hazira and projects in, Jio and US Shale gas. Reliance’s gross debt was at ₹1,81,079 crore (US$27.3 billion). This includes standalone gross debt of ₹1,07,130 crore and subsidiary 61 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis BUSINESS PERFORMANCE REFINING AND MARKETING (R&M) HITAL R. MESWANI C BORAR SRINIVAS TUTTAGUNTA P. RAGHAVENDRAN “Refining segment created value through achieving a record EBIT of `23,598 crore with GRM of US$10.8/bbl, the highest in last 7 years. It outperformed Singapore benchmark by US$3.3/bbl. RIL’s crude throughput for the year was at 69.6 MMT. This is a testimony to RIL’s competitive advantage of higher efficiency, unparalleled operational excellence and world-class assets at Jamnagar complex. RIL undertakes regular initiatives focusing on debottlenecking, capacity enhancement and yield improvement to enhance its competitive strengths. RIL’s refinery complex at Jamnagar is the world’s largest refinery at a single location and provides approximately 1.5% of world’s transportation fuels. In terms of capex and growth plan, during the year RIL focused on expeditious completion of construction work of petcoke gasification project to enhance energy self-sufficiency.” `23,598 crore Refining EBIT increased by 49.1% y-o-y Panoramic view of Jamnagar Refinery 62 Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.STRATEGIC ADVANTAGES AND COMPETITIVE STRENGTH Logistics and supply-chain Operational excellence Other initiatives RIL’s state-of-the-art refineries are supported by an advanced logistics infrastructure, including a marine facility, giving access to berthing of ships, ranging from small chemical carriers to Very Large Crude Carriers (VLCCs), thus allowing it to benefit from strong crude and product freight economics, along with enhanced cost competitiveness. RIL excels in managing and utilising its assets most efficiently to generate superior returns. While maintaining highest standards of safety, the Company ensures high on-stream factor with focus on improving energy efficiency and reducing operating and maintenance cost. RIL undertakes regular initiatives focusing on debottlenecking, capacity enhancement and yield improvement to enhance its competitive strengths. Examples in FY 2015-16 include: Revamp of reformer to boost production of gasoline and paraxylene Projects to improve propylene recovery Change in catalysts in Diesel Hydrotreater to increase production of Ultra Low Sulphur Diesel (ULSD) in Domestic Tariff Area (DTA) refinery Additional diesel recovery from Vacuum Distillation Unit (VDU) and Vacuum Gasoil Hydrotreater (VGOHT) in DTA refinery Refinery configuration Crude selection and sourcing Market access RIL’s refinery at Jamnagar is among the largest and most complex refining assets globally, with a design capacity for processing 1.24 million barrels of crude per day (MMBPD) and a Nelson Complexity Index of 12.7. The refinery’s superior configuration gives RIL the ability to process a wide variety of crude and meet differentiated and stringent product specifications. Additionally, RIL has significant flexibility to alter the product mix, thereby capturing opportunities arising due to the evolving market dynamics. RIL’s asset flexibility and logistics infrastructure allow optimisation of crude portfolio to tap the changing market conditions. With inherent design flexibility, RIL optimises the crude diet, sourcing the most advantageous crude globally. During FY 2015-16, new initiatives were launched to enhance the flexibility of RIL’s assets and enable them to process even heavier and higher contaminant content value additive crude. RIL entered into a long-term supply contract for Basrah Heavy crude improving overall cover for heavy crude on long-term basis. RIL’s global outreach, including trading offices at key locations like Houston, London, Singapore and Mumbai, gives it a broad coverage for crude supplies and product sinks. Tankages at major trading hubs allow RIL to move its selling point closer to consumption hubs and improve responsiveness to market needs. 63 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and AnalysisMARKET ENVIRONMENT ROBUST OIL DEMAND GROWTH ON LOW OIL PRICES Global oil demand grew by 1.8 mb/d in CY 2015, the highest in the last five years; and significantly higher than the previous year’s growth rate of 0.9 mb/d. Low oil prices and increase in demand for light distillates fuelled the oil demand growth. Oil demand grew continuously through the year, peaking at 2.3 mb/d in Q3 CY 2015, before tapering down to 1.4 mb/d in Q4 CY 2015. During CY 2015, the growth in oil demand came from both Organisation for Economic Co-operation and Development (OECD) and Non-OECD countries. Nearly 50% of the global oil demand growth came from China and India. Particularly in India, CY 2015 gasoline demand grew at a rate of around 12.5% over previous year. The US alone registered a growth of 0.3 mb/d for CY 2015. Even European demand grew by 0.25 mb/d in CY 2015, reversing the trend of demand decline seen in previous years. Chinese demand grew by 0.7 mb/d in CY 2015, which was higher than the growth of 0.4 mb/d seen in CY 2014. However, the growth was driven by light distillates rather than middle distillates, unlike in previous years. Indian demand grew by 0.25 mb/d in CY 2015. This figure is significantly higher than the previous year’s growth of 0.08 mb/d. The growth was seen in both gasoline and diesel. OIL PRICES (US$/bbl) Brent Dubai WTI 120 100 80 60 40 20 4 1 - n a J 4 1 - r a M 4 1 - y a M 4 1 - l u J 4 1 - p e S 4 1 - v o N 5 1 - n a J 5 1 - r a M 5 1 - y a M 5 1 - l u J 5 1 - p e S 5 1 - v o N 6 1 - n a J 6 1 - r a M Source : Platts Brent Average FY 2015-16 US$47.4/bbl FY 2014-15 US$85.4/bbl Asian Cracks US$/bbl Q1 Q2 Q3 Q4 FY 2015-16 FY 2014-15 7.1 -0.5 -1.2 6.1 19.8 19.3 18.7 18.8 13.5 10.9 14.1 11.7 13.7 10.8 13.8 9.6 -4.9 -9.0 -7.3 -5.8 2.9 19.2 12.5 12.0 -6.7 -1.5 14.5 15.9 15.7 -8.4 Naphtha Gasoline Jet Gasoil Fuel Oil Source: Platts 64 OVERSUPPLY IN OIL MARKET CONTINUES Global oil supply expanded by 2.7 mb/d in CY 2015, following hefty gains of 2.3 mb/d in CY 2014. In contrast with CY 2014, when non-OPEC producers made up most of the gain, in CY 2015 growth was evenly divided between OPEC and non-OPEC producers. By Q4 CY 2015, the growth in total supply had eased to 0.2 mb/d, with non-OPEC production pegged below previous year levels for the first time since September 2012. Persistent oversupply in the oil market overshadowed geo- political tensions and social unrest in several major oil exporting countries in the Middle East and Africa. Consistent increase in supply from the US accelerated the oil supply growth. It grew by 0.9 mb/d in CY 2015 contrary to expectations of decline due to lower oil prices. The supply growth was also helped by increased production in Saudi Arabia (0.6 mb/d) and Iraq (0.6 mb/d). Russian production also rose up to 11.1 mb/d in CY 2015. Brazil posted strong growth in oil production as well. An estimated 1 billion barrels of oil was added to global inventories over FY 2014-15 levels due to imbalance in demand and supply. PERSISTING OVERSUPPLY PUSHING DOWN PRICES Oil prices averaged US$47.4/bbl in FY 2015-16, compared to US$85.4/bbl in FY 2014-15. Despite record demand growth, oil prices dropped due to persistent growth in non-OPEC supplies and also increase in supplies from OPEC in a bid to capture market share. The steep fall in crude prices has led to a reduction in planned upstream investments. The decline in production of US shale oil did not materialise in FY 2015-16, due to efficiency gains and cost reduction by producers. However, decline in other high-cost E&P investments by oil majors could have long-term consequences on future crude supplies. HIGH REFINING MARGINS DRIVEN BY LIGHT DISTILLATE CRACKS Low oil prices and low energy costs resulted in strong growth in oil demand and higher margins during FY 2015-16. The demand growth was pronounced in light distillates, particularly gasoline. Lower oil prices and higher margins led to an increase in average refinery utilisation rates in key regions. LIGHT DISTILLATES Light distillates prices were strong throughout the year. Gasoline demand growth also continued throughout the year, aided by low pump prices. It contributed around 40% of global oil demand growth, with the US, China and India contributing 70% of incremental gasoline demand. The key factor contributing to the surge in gasoline demand was increase in the US demand during driving season (~3.5% higher passenger miles in CY 2015), supported by improving passenger car sales (the US hit a record sale of 17.47 million vehicles, Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.RIL CONTINUED TO OUTPERFORM REGIONAL BENCHMARKS RIL outperformed Singapore benchmark yet again, with a premium of US$3.3/bbl over the benchmark during FY 2015- 16. The R&M business posted record earnings driven primarily by strong product demand and lower energy costs. Superior configuration and asset optimisation enabled RIL to take advantage of the oversupplied crude market. Relative performance against benchmarks was underpinned by RIL’s ability to secure higher value product yields, using a wider selection of crudes and focus on operational efficiencies. Flexibility in crude processing and product slate with robust risk management helped in posting record margins. REFINING MARGINS VIS-À-VIS GLOBAL BENCHMARKS RIL was able to fully capitalise on the market conditions, through its operational excellence, higher efficiency and well-executed strategies around crude sourcing and product placement. Continuing its emphasis on processing challenging and most advantageous crudes, RIL processed 5 new crude grades this year leading to over 145 crude grades processed till date. Total 66 different crude grades were processed during the year. Over the years RIL have demonstrated its ability to process challenging crude grades with sulphur content of over 5%, Total Acid Number (TAN) of 5 (mgKOH/), viscosity of ~ 5000 cst and an American Petroleum Institute (API) gravity as low as 100. The crude sourcing strategy was driven by continuous adjustment of sourcing pattern based on relative economics. The ability to operate at high utilisation levels and switch product slate to suit market conditions enabled RIL to capture margin optimisation opportunities in the market. Overall, effective utilisation of secondary processing units, innovative approach to optimise logistics cost and utilisation, production flexibility to swing to higher net-back products and sourcing of best-value crude and feedstock enabled RIL to sustain its performance even in a challenging margin environment. Regional Margins (US$/bbl) FY 2015-16 FY 2014-15 FY 2013-14 Singapore Complex RIL GRM Rotterdam (Brent) USGC (WTI) Source: Reuters 7.5 10.8 6.3 11.8 6.3 8.6 5.4 5.9 8.1 3.9 12.4 13.3 65 Crude storage tank farm breaking the mark of 17.41 million vehicles in CY 2000). Total car sales in China grew by ~3.5% in CY 2015. While passenger car sales grew at ~ 5.8%, SUV sales registered strong growth throughout the year, at an average rate of 50% contributing to the higher gasoline demand growth. With an increasing consumer preference for gasoline powered passenger cars, the positive trends in gasoline demand is expected to continue. Shortage of blending components (reformate and alkylate) in Atlantic basin and few unplanned outages also contributed to elevated gasoline cracks. Strong petrochemical demand with improved naphtha cracking economics and blending in gasoline pool resulted in higher naphtha cracks. (both diesel and MIDDLE DISTILLATES jet/kerosene) margin Middle distillate weakened in FY 2015-16 over the previous year. Demand growth in China was lacklustre due to lower GDP growth as well as its shift towards a consumption-led economy from an industrial one. India’s diesel demand, however, was strong with growth at a four-year high of 7.5%. Higher refinery utilisation incentivised by light distillates cracks and additional supplies from new refineries resulted in an oversupplied market. The Middle Eastern refiners have stabilised over the year and are high gasoil yielding. Mild winter towards the year end also affected middle distillate consumption. FUEL OIL Fuel oil bunker demand was supported by low outright prices; however, sulphur spec change in marine fuels in Emission Control Areas (ECA) weighed on fuel oil demand. Demand from Chinese Teakettle refineries was also lower as most of these refineries were allowed to import crude oil. GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and AnalysisFY 2015-16 revenue from the R&M segment decreased by 30.9% y-o-y to `2,34,946 crore (US$35.5 billion), reflecting lower average oil prices during the year. Refining EBIT increased by 49.1% y-o-y to a record of `23,598 crore, supported by low energy prices, strong light product cracks, favourable crude differentials and stable middle distillates. RIL’s GRM for the year stood at US$10.8/ bbl, against US$8.6/bbl in the previous year. During the year, RIL processed 69.6 MMT of crude due to maximisation of on-stream factor, optimisation of crude slate and maintenance turnarounds and shutdowns. Total exports of refined products have been US$19.3 billion this year, compared to US$32.5 billion in the previous year. In the sales composition, share of domestic sales (including captive supplies) went up to 46% in current year as compared to 40% in last year in value terms. RIL’s GRM for the year stood at US$10.8/bbl – seven–year high REDEFINING CHALLENGES, DELIVERING RESULTS Enhanced safety in high risk jobs through use of full scale version of robot for catalyst unloading in inert atmosphere and use of drone in DTA Sulfur acid gas flare stack for inspection are under progress. Additionally, implementation of 3D Modelling Heater Tube Cleaning device for eliminating manual improvement and Microwave technique for Corrosion Under Insulation (CUI) inspection for elimination of removal of insulation is being installed. Naphtha splitter divided wall column is implemented to improve Fluid Catalytic Cracking (FCC) Naphtha Splitter side cut Final Boiling Point (FBP) and yield to maximise PX production with minimum energy spent. FINANCIAL AND OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE* FY 2015-16 (` in crore) 2,34,946 23,598 10.0% Revenues EBIT EBIT (%) *Consolidated basis FY 2015-16 (US$ in billion) 35.5 3.6 FY 2014-15 (` in crore) % change 3,39,890 (30.9%) 49.1% 15,827 4.7% REFINERY SALES (FY 2015-16) (in MMT) 15.4 10.9 41.3 Exports Captive Domestic (Retail/Bulk + PSU + Industrial) 10% EBIT Margin (Previous Year 4.7%) Use of drone 66 Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Over 1,000 retail outlets are operational PETROLEUM RETAIL MARKET ENVIRONMENT In October 2014, Government of India (GoI) announced deregulation of High Speed Diesel (HSD) prices leading to re- opening of fuel retailing outlets by the private sector. Post announcement of deregulation, prices of Motor Spirit (MS) and HSD are being changed in-line with international prices. This has presented an opportunity for RIL to re-enter the domestic retail market and ramp up volumes to compete with local players. Between FY 2006-07 and FY 2015-16, industry transportation fuel volumes have significantly increased from 52 MMT to 96.4 MMT. Demand for transportation fuels is expected to grow directly in relation with growth in the country’s GDP. The retail network has increased from 34,844 outlets in 2006-07 to over 55,000 outlets (as on 31st March, 2016) with majority owned by public sector units. In line with its trend of delivering superior customer experience and assured quality and quantity through state-of-the-art technology and automation, RIL continued the re-commissioning of its retail petroleum network during the year. Over 1,000 retail outlets are now operational. The encouraging customer response and growing popularity of the Reliance brand has motivated many channel partners to join Reliance in this exciting journey, thereby fuelling Reliance’s growth. LEVERAGING ROBUST IT PLATFORM Focus is on leveraging RIL’s robust IT platform and latest Jio technology to upgrade the fleet management programme and thereby provide convenience to RIL’s customers through mobile platforms and be future-ready to deliver value-added services. The coming year would see RIL increasing its retail footprint with focus and energy towards further enhancing customer experience by delivering stronger segment specific value propositions/offerings. RIL plan to launch aggressive customer acquisition programmes to quickly re gain targeted market share. OPERATING STRATEGY AND VALUE PROPOSITION Consistent and superior customer experience through technology coupled with launch of aggressive communication campaigns and Instant reward schemes helped create a market buzz and quick ramp up of volumes. RIL’s fuels undergo stringent quality checks at various stages of product movement right upto the feeding terminals and to the Retail Outlets. RIL’s real-time network at 100% of the Outlets, ensures online monitoring and centralised control system. The combination of latest technology, well-defined processes, value propositions with right channel partners and personnel ensures consistent delivery of superior customer experience. RIL’s key differentiator is the unique fleet management programme, Trans-Connect, which provides fleet management solutions aimed at revolutionising the way commercial vehicle owners operate. This provides tangible benefits to the fleet owners by reducing the working capital expenses, complete control over the fuel and non- fuel expenses of their entire fleet and smart analysis supporting better decision making. 67 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and AnalysisAVIATION TURBINE FUEL (ATF) In FY 2015-16, the demand growth for jet fuel in India was robust at 8.8%, driven by a 20% growth in domestic passenger traffic. RIL has a presence across 25 airports in India in the ATF business. RIL’s operations encompass storage, into-plane, and hospitality and operation and maintenance services. In FY 2015-16, the Company’s sales to airlines increased 80% y-o-y in terms of volume with the business fuelling an aircraft every 4.3 minutes. Additionally, RIL is expanding its operations to maintain the growth momentum. OUTLOOK For FY 2016-17, Reliance will primarily focus on two key areas: Increasing turn-in at RIL Retail outlets: Establish a pan India footprint by recommissioning the entire network of 1,400 Retail Outlets (ROs) and expand network beyond that in the FY 2016-17. Continue achieving one of the highest per pump throughputs, which is currently at 230 KL/month, amongst key competitors and enhance customer experience and value propositions/offerings. Sales to airlines increased by 80% y-o-y fuelling an aircraft every 4.3 minutes GAPCO The GAPCO Group owns and operates large storage facilities and retail distribution networks in Tanzania, Uganda and Kenya. The group has significantly improved its standing in the East African market and has emerged as a key supplier to its neighbouring countries. During CY 2015, GAPCO sold 3.7 million kilolitres (mkLs) of petroleum products, a growth of about 32% over preceding year and highest since acquisition. Gapco Kenya received the award of highest importer of petroleum product at Mombasa Port, consecutively for the third year. Gapco Tanzania also bagged its first international contract for into-plane fuelling of two international airlines at Julius Nyerere International Airport, Dar-Es-Salaam. In May 2016, Reliance Exploration and Production DMCC (REPDMCC), an indirect wholly owned subsidiary of RIL and Total, have executed agreements for the sale of the entire 76% interest held by REPDMCC in the Mauritius-incorporated GAPCO. The proposed transaction is subject to regulatory approvals and other closing conditions that are customary for similar transactions. 68 CAPEX AND GROWTH PLAN PETCOKE GASIFICATION Petcoke gasification project uses low value petroleum coke as feed and converts it into high value syngas. This syngas is used to produce hydrogen, fuel for power and steam and heater fuel. Syngas will also be used directly as a fuel to meet energy requirements. With the commissioning of gasification project, the Jamnagar site would significantly reduce its external fuel dependency, thereby increasing the self-sufficiency for most of the energy requirement. foundation to Additionally, gasification project would manufacture various other value-added chemicals like acetic acid. lay The gasification project is based on the ‘E-gas technology’ (Licensor - CB&I) and has operational flexibility to use coal and petcoke as feedstock. This will further enhance profitability by taking advantage of using lowest cost feedstock. Engineering and procurement activities are nearing completion and construction activities are in full swing to meet the project timelines. Several systems like storage dome, stacker/re claimer and the water treatment plant are completed and other systems like the rod mills, Effluent Treatment Plant (ETP), flare stack and cooling towers are nearing completion. Construction resources are being further enhanced for early commissioning of other critical systems like Air Separation Unit (ASU), Sulphur Recovery Unit (SRU) and Super Heater. RIL is looking forward to an accelerated commissioning of the project to significantly enhance the profitability of the refinery complex. CORPORATE SOCIAL RESPONSIBILITY CSR INITIATIVES AT JAMNAGAR MANUFACTURING DIVISION During FY 2015-16, hygienic potable water outlets were installed to improve access to drinking water at Jamnagar. Other focus areas included digital education and healthcare services for the underprivileged sections of the society. 30 reverse osmosis plants and 14 potable water storage tanks were constructed in local schools. 193 computers were distributed in 35 schools. The mobile eye clinic facility catered to 27,201 outpatients and provided 521 cataract surgeries free of cost. 24,965 persons provided skill development training. Impact Availability of drinking water improved in schools. Improved access to quality health care services. Student from marginalised communities get access to better education and skill development training. Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. PETROCHEMICALS NIKHIL R. MESWANI VIPUL SHAH “Global petrochemical industry faced a challenging year with volatile oil price environment. RIL achieved record EBIT of `10,221 crore (up 23.3% y-o-y) and production of 24.7 MMT for the year. Further integration across polyester chain was achieved with commissioning of PET and PTA capacity at Dahej during the year. RIL commands top decile position in the polymer business, with 36% domestic market share. Consolidating its leadership position, Reliance undertook expansion as well as development projects, commissioning of 2.3 MMTPA PTA and 650 KTA PET resin plant at Dahej and debottlenecking of PP plant was done to augment the capacity by 60 KTA. With customer centricity as a core value, this year Reliance has adopted the expression of ‘Chemistry for Smiles’ on the back of the motto - ‘Transforming Life into Quality Life’, to grow jointly with the customers and add value to the intangible emotions of life for the end-consumers. Reliance deploys world-class technologies across all sites to reduce fresh water consumption per unit of production by maximising waste water recycle and minimising external discharge.“ `10,221 crore Petrochemicals EBIT was at a record level in FY 2015-16. Petrochemicals Manufacturing Site 69 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and AnalysisSTRATEGIC ADVANTAGES AND COMPETITIVE STRENGTH Global scale Integration Leadership RIL is amongst the world's leading producer of petrochemicals with global scale capacities across polymers, polyester, fibre intermediates, elastomers and aromatics. RIL has 11 manufacturing locations in India and 3 in Malaysia. Integration between refining and downstream petrochemical products is among RIL’s key competitive advantages. The deep integration within each chain helps RIL mitigate the impact of price volatility in the global energy and chemical industry. RIL also has a diversified feedstock slate, with both naphtha and gas based crackers, which helps mitigate risk involved with feedstock sourcing and margin volatility. A relentless focus on safety and continuous improvement helps RIL in achieving industry-leading profitability across business cycles. RIL’s focus on technology leadership, cost efficiencies and responsible operational practices, while maintaining high operating discipline is key in maintaining domestic market leadership in its major product lines, and is a source of sustainable competitive advantage. MARKET ENVIRONMENT The decline in global energy prices witnessed during the second half of FY 2014-15 continued throughout FY 2015-16 leading to a steep decline in petrochemical feedstock and product prices. The magnitude of the drop in commodity petrochemical prices was felt across the petrochemical chain, impacting the cash economics of various projects including Coal to Olefins/ Methanol to Olefins (CTO/MTO) and Propane De-Hydrogenation (PDH) units coming up globally. Even though fears of global economic slowdown prevailed, softer product prices contributed to improved downstream demand. OLEFINS AND POLYMERS Ethylene and propylene are the key petrochemical raw materials used in manufacturing of polymers like Polypropylene (PP), Polyethylene (PE), Polyvinyl chloride (PVC) and chemicals like ethylene oxide and ethylene glycols. Global demand for ethylene increased by 3.6% y-o-y to 141 million tonne (MMT) in 2015. Global ethylene operating rates, which are indicative of the margin environment, improved marginally on a y-o-y basis to 89.1% in 2015, sustaining above the five-year average of 86.1%. GLOBAL ETHYLENE SUPPLY/DEMAND 2015 Production by feedstock Demand by end use Production : 142 MMT Demand : 141 MMT Global ethylene supply demand is expected to remain tight in the medium-term. However, the new capacities in US, based on low cost ethane from shale gas production, will determine market dynamics beyond 2018. Asian propylene is likely to face supply pressure in 2016 since the oversupply situation that emerged in 2015, is expected to continue into 2016. The year 2015 saw addition of around 2 MMT of new PDH capacity addition in Northeast Asia with another 2 MMT likely to become operational in 2016. Most of these units are running at sub-par levels due to increased competitiveness of naphtha crackers. Naphtha cracker operating rates were higher in 2015 with an improvement in naphtha cracking fundamentals and a healthy demand environment. Reliance sources a major part of its propylene requirement from refinery operations to produce PP, taking full advantage of refinery integration. Lower crude oil prices resulted in a flattening of the global ethylene cash cost curve as naphtha prices tracked crude during the year. This improved the cash cost economics of liquid based crackers as against crackers based on other feedstocks. Lower crude prices also impacted the competitiveness of coal-to- chemicals plants with erosion of the spread between coal and oil prices. In such a scenario, even though the advantage of US gas crackers has reduced, it still remains healthy. GLOBAL POLYOLEFIN AND PVC DEMAND (In MMT) CY 2015 CY 2014 % growth Naphtha Ethane Propane Butane Others Source: IHS 70 44% PE 36% Ethylene Oxide 9% EDC 5% EBZ 6% Others 61% 15% 10% 6% 8% PP PE PVC Ethylene Propylene Source: IHS 63 88 41 141 98 59 85 40 137 89 7% 4% 1% 3% 10% Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Global thermoplastics market in 2015 was estimated at 240 MMT. PE accounted for 37%, PP 26% and PVC 17%, of the market. Demand for the PE, PP and PVC combined grew by 4.2% during 2015 driven by Asia and the Middle East. With continuing strong consumption demand, China (7%) and India (15%) were key drivers of Asian polymer demand growth. The global demand for these polymer products is estimated to grow at a CAGR of 4.2% over 2015-20 period. PRICE AND DELTA ENVIRONMENT A. POLYMER CHAIN Average naphtha prices in Asia were lower in FY 2015- 16 tracking drop in crude oil prices. However, decrease in naphtha prices was lower than the decrease in crude oil price due to stable demand and lower operating rates of increasingly non-competitive CTO/MTO units. On a y-o-y basis, ethylene prices were down by 15% and lagged the decline in feedstock naphtha prices, which was down 41% during the same period. Ethylene supply in Asia is likely to stay tight as demand stays stable amid scrapping of some older production units and no major cracker expansion planned in the region. SOUTHEAST ASIA POLYMERS DELTAS (US$/MT) HDPE-Naphtha PP-Propylene PVC-EDC-Naphtha Source: Platts FY 2015-16 FY 2014-15 768 306 440 694 277 453 Polymer deltas remained healthy during FY 2015-16, as feedstock prices declined sharply and demand remained stable. On a y-o-y basis, PP deltas improved sharply as decline in propylene prices (with additional supply from PDH units in China) was sharper than the decline in polypropylene prices, which were supported by stable demand. PE delta also remained strong on a y-o-y basis as feedstock prices tracked falling crude oil price. Relatively higher ethylene prices compared to naphtha helped in supporting High Density Poly Ethylene (HDPE) prices, resulting in high HDPE- Naphtha deltas. PE and PP deltas were at the highest level achieved in the last 10 years. PVC delta softened on account of weak end product price with slower demand growth, coupled with relatively stronger Ethylene Dichloride (EDC) prices. B. POLYESTER CHAIN Polyester: Polyester sector experienced a challenging year amid high feedstock volatility, capacity overhang and a slowing Chinese economy. However, healthy demand for fibres and filament from western markets provided some support in an otherwise lacklustre market outlook. Polyester fibre and yarn markets strengthened at beginning of the year backed by firm prices and replenishment by downstream players. This trend weakened in line with decline of crude through the year which impacted fibre intermediates and polyester prices which was further impacted due to tight liquidity, cautious demand and high inventory. The low prices saw a partial revival in demand which helped alleviate some margin pressure and further supported by a recovery in energy prices from end of January, 2016. Chinese downstream replenishment demand, post lunar holidays, boosted polyester demand sentiments while demand for textiles and apparels in western markets remained healthy with the USA showing an improvement in CY 2015 import volumes by 7% y-o-y and specifically man- made fibre based imports grew at 9%. Polyester filament and fibre market remained balanced with a capacity growth of 2.1 MMT compared with a demand growth of 2.2 MMT. Cotton acreage declined during the crop year FY 2015-16 (Aug-Jul) following lower prices last year which resulted in lower production estimates while consumption is estimated to be stable. Consequently, cotton prices have remained mostly stable. The softening in polyester prices made cotton less competitive for blending, thereby reducing its share in the fabric basket. Global cotton acreage is unlikely to rise drastically in coming years and given limited developments in technology to improve yields, cotton production and consequently demand will witness only modest growth. Cotton will retain barely 25% share of global fibre demand by CY 2020 compared to 30% in CY 2015. Global PET demand remained healthy supported by favourable weather in major end use markets. Western economies witnessed better seasonal demand backed by economic growth leading to rise in beverage consumption. USA has levied anti-dumping duty on PET imports from China, Canada, India and Oman for a period of five years and has also issued a countervailing duty (CVD) on China and India. The net PET capacity increased by 1.4 MMT against a demand growth of 0.9 MMT on a y-o-y basis. With PET softening on back of lower crude, recycled PET lost its advantage as an alternative feedstock to virgin resin and saw reduced use by brand owners for their packaging needs. The average PET prices declined 20% y-o-y and margins declined by 14% y-o-y. Fibre Intermediates: Fibre intermediates saw fluctuating demand patterns in the earlier part of the year due to volatile energy prices which was driven by lack of clear signals from upstream. During the middle of the year some discipline amongst leading Chinese producers and shutdowns of some plants in China and South Korea based on economic considerations gave stability to the market. The later part of the year also saw some plants 71 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis going for planned outages which led to tightness in the market and provided stability to Purified Terepthalic Acid (PTA) and Paraxylene (PX) deltas. The market sentiment also firmed up towards the last quarter owing to strengthening of the crude oil prices and a pickup in downstream demand post the Chinese Lunar New Year. POLYESTER AND FIBRE INTERMEDIATES DELTAS (US$/MT) PX PTA MEG POY PSF PET FY 2015-16 365 104 440 227 196 133 FY 2014-15 354 108 384 401 214 155 Source: Platts and ICIS PX markets remained largely balanced with capacities close to 4 MMT (~8% of global base) shut in Asia owing to economic reasons and environmental issues. The PX market was also supported by a very strong gasoline market throughout the year which constrained the feedstock reformate availability for PX production. However, fluctuating crude oil till end of January, 2016 resulted in cautious demand and capped price gains and lack of Asian Contract Price (ACP) settlement for a major part of the year, due to volatile energy markets, did not help the markets also. Prices declined 35% y-o-y but deltas increased by 3% y-o-y and were still well above the breakeven level. CY 2015 witnessed net capacity growth of 2.8 MMT compared to estimated demand growth of 2.5 MMT. PTA market was slightly more balanced in this financial year as compared to the previous few years supported by production discipline and economically unviable capacites closing down especially in China. Non-functioning PTA capacity as of March, 2016 was nearly 15 MMT (~18% of global base) which is unlikely to restart soon. Combined with the producers’ resistance to further margin losses, resulted in increase in price stability and minimal decline in margins. PTA prices declined 23% y-o-y while delta fall was 4% compared to last year. CY 2015 witnessed reduced operating rates with net capacity addition of 8.4 MMT against a demand growth of 2.6 MMT. MEG markets were supported by supply shortage from plant outages and low Chinese port inventories during the first half of FY 2015-16 due to which margins during the first half remained at higher levels. However, with falling polyester and PTA prices, MEG prices and deltas declined in the second half of FY 2015-16. The Asian MEG market was also impacted by growth in Chinese imports and rising tank inventories in the second half of the year. Driven by the strong first half, MEG margins improved 14% on a y-o-y basis despite a price fall by 16%. The net global capacity addition of 2.5 MMT in CY 2015 was higher than the estimated incremental demand growth of 1 MMT. 72 C. ELASTOMERS Butadiene: During 2015, the global capacity of butadiene was at 15.3 MMTPA with a ~75% operating rate. Over 2/3rd of the application for butadiene is from PolyButadiene Rubber (PBR) and Styrene Butadiene Rubber (SBR). Dynamics of PBR and SBR in turn are driven by automobile and tyre industry. Owing to ample availability from high operating rates of naphtha cracker and lower demand from downstream market, margin for butadiene manufacturers remained under pressure. PBR AND SBR: Demand for both PBR and SBR is largely driven by auto and tyre sector. Globally consumption of both PBR and SBR for FY 2015-16 grew at a slow pace but is expected to grow at 4-6% in 2016 driven by improving auto and tyre scenario in the USA, West Europe and India. New capacity addition over last two years, coupled with the slowdown in global economy, especially China, kept the operating rates of PBR and SBR plants at lower levels (~70%) and margins suppressed. Major manufacturers in China and Korea operated plants at lower rates of 40-50% due to weak regional demand. With major natural rubber producing countries restricting exports and no new capacities coming up, operating rates are expected to improve lending support to margins. DOMESTIC SCENARIO A. POLYMER CHAIN income increasing India’s polymer market growth has been robust driven levels and by rising urbanisation, infrastructure investment, making India among the world’s fastest growing polymer markets with a five-year CAGR of 6.7% (2010-2015). India is the second largest contributor to polymer demand in Asia, with demand growth rate ahead of China. Despite strong growth over the last few decades, the domestic market remains under-penetrated compared to other Asian developing countries. Government’s initiatives like ‘Make in India’ campaign, ‘Swachh Bharat Abhiyan’ and renewed focus on infrastructure spending will further boost the market growth across sectors like capital goods, manufacturing, agriculture and infrastructure. In India, polymer demand continued to be healthy during FY 2015-16, further supported by lower absolute prices towards the end of the year. During FY 2015-16, India’s polymer demand was higher by 15%. PP demand grew by 19.6% y-o-y with a good demand across all sectors including raffia packaging, nonwoven, multifilament, automotive, hygiene applications and appliances sector. PE demand was higher by 13.6% due to firm demand from flexible packaging, moulded products and paper/woven sacks lamination packaging sector. PVC domestic demand was higher by 10.5% with higher demand from pipe and calendaring Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. sector. Overall, with improving business sentiment and a revival in domestic investment cycle, demand is likely to see similar growth in the medium-term. FINANCIAL AND OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE* B. POLYESTER CHAIN Feedstock fluctuations in the international markets and the price drop in the later part of the year led to cautious buying behaviour by the industry and additionally, severe cash crunch and longer cash cycles resulted in need-based buying. Overall polyester demand increased by 5% during the year, led by Fully Drawn Yarn (FDY) and PET but the overall growth was constrained by high volatility of prices and reduced liquidity with customers. FDY witnessed healthy growth from warp knitting segments, while PET witnessed better growth owing to delayed monsoons during the first half. Shipments during the second half were limited on account of the price volatility and lean season. Domestic cotton production increased during the seasonal year, owing to higher acreage, making India the largest producer globally which resulted in prices dropping by 2% during the year which was further accentuated by declining exports to China. However, the larger scale drop in the polyester prices has made polyester more lucrative as compared to cotton. Indian polyester in advantageous industry will be position with growth of consumer demand and strong manufacturing base enabling India to serve as regional polyester manufacturing hub. The polyester demand is expected to reach a level of around 7 MMT, at a CAGR of ~7% by the end of 2020. C. ELASTOMERS Butadiene: Indian butadiene demand grew by ~30% to 225 KT as against an installed capacity of 435 KTPA, with excess production catering to export markets. Domestic demand growth increase was primarily due to higher operating rates in downstream plants which came on- stream in FY 2014-15. PBR: India’s demand for PBR in 2015 grew marginally to 195 KT and is expected to grow at ~8% in 2017. Reliance has successfully placed the material from new PBR capacity in domestic market reducing India’s dependence on imported material. SBR: India’s demand for SBR is estimated at 255 KT and is likely to grow at 6-8% annually in the medium-term. Product from Reliance’s new SBR has been well received in the market. Indian imports have reduced and are expected to reduce further as domestic capacity operates at higher rates. FY 2015-16 (` in crore) FY 2015-16 (US$ in billion) FY 2014-15 (` in crore) % change Revenues EBIT EBIT (%) * Consolidated basis 82,410 10,221 12.4% 12.4 1.5 96,804 (14.9%) 23.3% 8,291 8.6% Reliance’s overall petrochemicals production in India during FY 2015-16 was at a record 24.7 MMT. Reliance also recorded the highest ever polymer production of 4.6 MMT in FY 2015-16. POLYMER PRODUCTION (Production in KT) FY 2015-16 FY 2014-15 PP PE PVC 2,802 1,058 721 2,685 969 649 Reliance has on overall market share of 36% in the Indian polymer market. Reliance is the world’s sixth largest producer of PP. During FY 2015-16, the Company produced 2.8 MMT of PP. Reliance has a pre-eminent position in the domestic PP market with 51% share. Reliance produced total PE of 1.1 MMT during the year and has market share of 18% in HDPE, 32% in Linear Low Density Poly Ethylene (LLDPE) and 35% in Low Density Poly Ethylene (LDPE). With 25% market share in the overall PE market, Reliance is the leading PE producer in India. Reliance’s total PVC production was at 0.7 MMT and it has 27% market share in the domestic market. Reliance placed significant volumes of PP in the international market while PE and PVC are largely sold in the domestic market. in operational performance, In the endeavour to excel debottlenecking of PP plant was done to augment the capacity by 60 KTPA. New PP catalysts were also developed in-house which helped in improving the quality and reducing the cost. Polyester bobbins at Silvassa manufacturing division 73 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis POLYESTER AND INTERMEDIATES PRODUCTION POLYESTER PRODUCTION (Production in KT) POY PSF PET FY 2015-16 771 628 797 FY 2014-15 852 621 374 During the year, RIL commissioned its 650 KTA PET (Polyethylene Terephthalate) resin plant at Dahej, Gujarat. This addition has made the Dahej PET facility one of the largest bottle-grade PET resin capacity at a single location globally and consolidating Reliance’s position as a leading PET resin producer with a global capacity of 1.13 MMTPA. RIL’s polyester production which has a steep jump in this financial year was driven mainly by the increase in PET production despite a decrease in filament yarn production due to planned turnarounds. FIBRE INTERMEDIATES PRODUCTION (Production in KT) PX PTA MEG FY 2015-16 2,329 3,365 737 FY 2014-15 2,169 2,074 635 RIL Intermediates production significantly improved compared to last year mainly due to the successful commissioning of 2.3 MMTPA PTA at Dahej during the year. With the commissioning of new PTA units, RIL strengthened its polyester chain business further. The principles of integration for feedstock with PX plant and downstream integration with polyester will provide significant logistics and cost advantage. RIL’s Malaysian operations improved performance through emphasis on premium markets. Malaysian free trade agreement with Turkey helped to position the products at premium over Asia prices. Enhanced textile operations helped to capture higher value addition within the system. In addition non-traditional markets were developed for better price realisation. PTA supplies were concentrated near production site to enhance profitability through optimal logistics cost. ELASTOMER / CHEMICALS PRODUCTION FY 2015-16 (Production in KT) 112 PBR 187 Butadiene FY 2014-15 101 172 RIL’s new elastomer capacity is positioned to satisfy more than 50% of India’s general purpose synthetic rubber demand. Grades from the newly commissioned SBR plant in India during FY 2015- 16 have been well received in the market. TRANSFORMING LIFE INTO QUALITY LIFE - ‘CHEMISTRY FOR SMILES’ The research and development at Reliance endeavours to partner with its customers in developing products and services that bring smiles on the faces of end-consumers, adds value to life. Since chemistry is the foundation of Reliance Petrochemicals, Reliance refers to journey as ‘Chemistry for Smiles’. To put this in practice, RIL has adopted the business-to-business-to-consumer (b2b2c) model to address the needs of the whole range of customers. The DNA of Food Abundance has RIL’s Polymers in it. The DNA of Sporting excellence has RIL’s Polyester in it. The DNA of Saving Lives has RIL’s PET in it. The DNA of Mobility has RIL’s Elastomers in it. Petrochemicals develops various polymer formulations for these innovative crop and fruit covers in addition to a wide range of other products, thereby, helping India become more food-sufficient. Reliance petrochemicals develops various polyester formulations for speciality fibres and yarns that help reduce drag, enabling better performance. Reliance PET also saves life, inside essential medical devices like surgical sutures, implants & intra cardiac devices, which contribute to become the building blocks of life saving medical equipment. Reliance elastomers are the foundation of the most of the cars, tractors, trucks, and two-wheeler tyres in India. Reliance petrochemicals develops different elastomer formulations for specialised grades of synthetic rubber that help everyone be mobile, active and productive. 74 Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.CREATING CUSTOMER VALUE THROUGH INCLUSIVE GROWTH Reliance has been a forerunner of inclusive growth, practices and continues its efforts towards the holistic growth of its customers and clients. Reliance has helped customers with technical know- how for better product quality and higher throughput. Reliance delivers its products and services in a manner that ensures Reliance customers look upon it as their trusted advisor and solution provider. This relationship with its customers is what differentiates Reliance from its competitors. Digitisation will position Reliance at very competitive position in terms of cost reduction, transparency, real-time analysis, advanced planning and optimisation, and cohesive customer engagement. Some of the digitisation initiatives include: 1. Adoption of Vendavo for price and margin optimisation, 2. 3. Enabled frequency identification (RFID), logistics process digitisation through Radio- Continuous environment monitoring system integrated with Gujarat Pollution Control Board (GPCB)/Central Pollution Control Board (CPCB), 4. Adoption of the Meridium Asset Performance Management (APM) system NEW PRODUCT DEVELOPMENTS Reliance has continued to add new products to its range of deliverables to the customers. Polymers 1. 2. Reliance has continued to solve civil engineering problems through geo-synthetics to stabilise terrain, which can be applied in several sectors including roads, railways and coastal and river areas. In-house development of Chlorinated Polyvinyl Chloride (CPVC) technology for value addition and to contribute to the ‘Make in India’ mission. Adding value to intangible emotions of life through a journey called ‘Chemistry for Smiles’ 3. Reliance is developing an innovative multilayer film for milk packaging where milk in a pillow pouch can be stored for 30 days without refrigeration. Polyesters: Reliance regards itself as an integral part of the “Make in India” campaign and has taken various steps in product innovation and new developments. 1. Reliance enjoys very high domestic market share in the spun sewing thread market and is now co-branding with Precot Meridian from South India, for super specialty sewing threads. More avenues of growth are being discussed with other enthusiastic producers as well. 2. Reliance has introduced varied yarns for the fashion industry like Recron® Skylark, Recron® Seawave, Recron® Blackstone, Recron® CTS, 3. Under the Recron Certified Products umbrella, RIL introduced scientifically designed T-Life cushion for seating. Reliance also focuses on reducing environmental pollution by adopting recycling methods. PET bottles are recycled into regular usable products for day-to-day lives. Under the banner of “Recron Green Gold” Reliance manufactures one of the greenest fibres in the world with the lowest carbon footprint. Additionally, 90% of the water used in the process is also recycled. Elastomers: For driving customer value, new products have been developed and are in process of getting commercialised. 1. 2. 3. 4. Cobalt based PBR Cisamer 1220 L: The elastomer is designed for niche applications that demands better physical properties, lower heat build-up, lower rolling resistance and superior abrasion resistance. Cobalt based PBR Cisamer 1220 H: The product has less gel content and is manufactured at Vadodara Manufacturing Division for high-impact polystyrene application. Neodymium Based PBR Cisamer 700: This product is manufactured for the first time in India at Hazira Manufacturing Division and is specially being targeted for low rolling resistance and procured tread rubbers with abrasion resistance. Styrene Butadiene Rubbers (SBR 1783 and SBR 1723): This product is mainly designed for usage in high performance tyres which provide improvement in wet traction/ rolling resistance. All above grades are in use or/under evaluation by customers. CAPEX AND GROWTH PLANS During the year Reliance commissioned 2.3 MMTPA PTA plant at Dahej in two phases. In addition, Reliance also commissioned 11 KTA of specialty staple fibre (Recron 3s) plant at Patalganga; targeted at the value added wall paper segment. These expansions follow the earlier expansion of PFY, PTY and PET capacities. Reliance is also expanding its technical textiles portfolio by setting up a new Industrial Yarn plant at Patalganga. PX at Jamnagar SEZ expansion is progressing as per plan with the project ready for start-up in 2H FY 2016-17. 75 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis REFINERY OFF-GAS CRACKER (ROGC): India’s PE demand growth has been robust and expected to grow by 8-10% in the medium-term. Even with new capacities being added, domestic demand would ensure that the market remains supply-constrained. Reliance is setting up new ROGC with Ethylene capacity of 1.5 MMTPA along with matching downstream PE and MEG facilities and incremental PP output at Jamnagar. The cracker will use low-cost off gases from RIL’s refinery as feedstock to produce Polyethylene and MEG. This will lead manifold increase in value. This not only provides competitive cost advantage but also gives additional feedstock flexibility to the petrochemicals business. Downstream PE capacities enhances Polymer business profitability and MEG adds to the integrated chain margin for its in-house consumption in Polyester business. Since the Cracker is located at Jamnagar which houses two large- scale refineries, the quantity of off-gases which would be fed to the ROGC makes it not only amongst the world’s largest ethylene crackers but also an integrated Refinery-Petchem model which is unique. Apart from the economies of scale, by utilising low value refinery off gases as feed, ROGC would be in the top quartile in terms of-global cost competitiveness across ethylene crackers. 1.5 MMTPA Reliance is setting up a new Refinery Off-Gas Cracker (ROGC) with ethylene capacity of 1.5 MMTPA 76 The ROGC Project and the downstream units are in advanced stages of completion with involvement of renowned EPC companies including Fluor, Bechtel, Technip, Tecnimont, Foster Wheeler, Linde, Jacobs, and Aker to name a few. The ROGC project is expected to be ready for start-up in 2H FY 2016-17. ETHANE PROJECT: As a part of providing feedstock flexibility and long-term supply security to the existing crackers, Reliance initiated a project for import of ethane from the US. This will also ensure long-term feedstock competitiveness. The project involves sourcing 1.5 MMTPA of ethane from US, shipping it to Dahej terminal and feeding its crackers in Dahej, Hazira and Nagothane. For sourcing Ethane from US, Reliance has executed storage and capacity agreements for liquefaction and export of ethane with a terminal in North America. For shipment of ethane from United States Gulf Coast to India, Reliance has ordered six state-of-the-art Very Large Ethane Carriers (VLECs), which will be the largest Ethane vessels ever built in the world. For construction supervision, Reliance has entered into agreements with one of the world’s largest and reputed shipping companies Mitsui O.S.K. Lines, Ltd (MOL). First ethane vessel delivery is expected as per schedule in 2H FY 2016- 17. MOL will also operate and manage the vessels after they are built and delivered. For unloading and storage of ethane at Dahej, Cryogenic Ethane Storage tank is being built at Dahej complex. For transporting of ethane to Hazira and Nagothane complexes, pipeline between Dahej to Nagothane with a spur line to Hazira. The crackers at Hazira, Nagothane and Dahej will also undergo required modifications to process ethane as feed in their units. The ethane project will augment feed alternatives for crackers and would provide opportunity for Reliance to take advantage in an increasingly dynamic feedstock market and operate with most optimal cost. The project would provide a cheaper source of feed to add value by multiple times from ethane to downstream polymers and chemicals. Post completion of petrochemical expansion plans, Reliance is likely to be among the top 10 global petrochemical producers by capacity and earnings potential. The expansions are world-scale and use state-of-the-art technology, which ensures advantageous cost of operations alongside savings in packing 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. Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.DIGITISATION: With focus on customer centricity and sales force enablement, RIL is on the path of digitising various processes: NextGen applications have been developed to support mobility for customers, agents and sales force E-biz Customer Relationship Management enhance customer experience (CRM) will Enablement through digitisation and automation in supply chain and manufacturing With 4G services being launched by a number of service providers in the country, there is a huge requirement of telecom duct that is being serviced by PE pipe producers and RIL being the largest PE producer in the country has a big role to play. Over 4,500 patients admitted to the Community Care Centre and Reliance AIDS Care Hospital till date. Eye check-ups carried out in which 859 villagers benefited around Hazira during FY 2015-16. Over 22,000 trees were planted across various villages. As part of its sustainable business practices, Reliance’s Industry leading energy cells ensures at each site working towards energy security with focus on reducing consumption and increased use of clean energy to progressively reduce GHG emissions intensity. Under the banner of “Recron Green Gold” Reliance manufactures one of the greenest fibres in the world with the lowest carbon footprint. Additionally, 90% of the water used in the process is also recycled. CORPORATE SOCIAL RESPONSIBILITY Impact CSR INITIATIVES The CSR initiatives carried out in the petrochemical locations are pertaining to skill development including computer education to students from marginalised sections across neighbouring villages, safe driving practices among truck drivers, healthcare and greenbelt initiatives. 22,000 truck drivers were trained on driving safety in Hazira during FY 2015-16. Improved access to quality healthcare services. Enhanced awareness about defensive driving and road safety. Enhanced employability of local youth. Eye checkup camp 77 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis OIL AND GAS EXPLORATION AND PRODUCTION P. M. S. PRASAD AJAY KHANDELWAL “Reliance has responded to major headwinds caused by the global commodity price environment through effective production management with the motto of “Keep wells flowing” and through optimisation of Capex and Opex. Field uptime of KG D6 is at par or better than global benchmarks. Reliance CBM project, country’s first large-scale unconventional project, has commenced testing the Phase 1 facilities in the first quarter of FY 2016-17. Shahdol-Phulpur Pipeline, which connects Central India to the national gas grid has also been completed and the testing and commissioning activities are in progress. The positive steps taken by the Government of India towards promoting oil and gas industry are expected to give a boost to Petroleum and Hydrocarbon Sector. In Shale gas business, Reliance successfully managed the weak commodity price environment through high-grading the development and lowering well costs and operating cost. The EFS Midstream investment, which after successfully supporting initial growth phase of Eagle Ford business, was at the right life stage for monetisation and its interest was sold to Enterprise Product Partners at US$1.07 billion. Support to the neighbouring communities through programs in the field of health, education, skill development and infrastructure development were some of the major initiatives as part of the CSR activity.” US$1.07 billion Monetised EFS Midstream Investments Control riser platform KG D6 78 Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.STRATEGIC ADVANTAGES AND COMPETITIVE STRENGTH Reliance’s upstream business encompasses the complete chain of activities from acquisition to exploration, development and production of hydrocarbons, including Shale Gas operations in the United States. Reliance has an advantageous position in offshore (deep-water) capabilities, coupled with the knowledge of operations in unconventional areas such as CBM and shale gas. Strong offshore capabilities in India Strategic partnership with BP in the domestic upstream business Leverage existing infrastructure, knowledge and experience Materiality in the unconventional business Balanced portfolio with growth potential KG D6 fields commis- sioned in 2008 were the first green-field deepwater oil & gas production facility developed in India. These fields have now completed over eight years of uninterrupted production. Reliance has drilled over hundred exploratory wells in India’s offshore basins. RIL and BP formed a transformational partnership in the oil and gas business in 2011. The partnership aims to combine BP's deep-water exploration and development capabilities with Reliance's exceptional project management and operations expertise. Reliance has over 20 years of experience in the exploration and production business. Over the years it has built a large knowledge base of different oil and gas basins across the globe. There has been significant infrastructure built up which will be leveraged upon for future development projects. With the development of the Sohagpur Blocks in Madhya Pradesh, Reliance is all set to become the biggest producer of Coal Bed Methane in India. Through its three non-operated JVs, Reliance has significant presence in the US Shale gas business. Reliance has significant presence in both Conventional and Unconventional plays. The portfolio comprises of Blocks in various stages of the Asset Life Cycle across the globe. Value generation will be done through development projects in deepwater for exploitation of discovered resources. MARKET ENVIRONMENT Increased global supplies (from non-OPEC producers, incl., US Shale producers) coupled with OPEC’s focus on market share led to sustained weakness in oil markets. Benchmark West Texas Intermediate (WTI) prices dropped to a multi-year low of US$34.6/bbl in Dec’ 15 and averaged at US$48.8/bbl in CY 2015, reflecting a fall of 40% y-o-y in CY 2015. Meanwhile, Natural Gas prices too remained volatile with a downward bias, on the back of record gas production, high storage levels and a relatively warm winter. US natural gas prices averaged 39% lower in CY 2015 to US$2.67/Million British Thermal Units (mmbtu). Asian Liquefied Natural Gas (LNG) prices were also subdued with start- up of Australian LNG projects keeping the market well supplied. The fall in oil prices has resulted in many projects getting deferred or cancelled. It is estimated that nearly US$380-US$400 billion worth of projects have been cancelled or deferred setting the stage for a price recovery in the later part of the decade. Most of these projects are in deep-water, LNG and oil sands. Low oil prices are also straining the budgets of many oil producers in Latin America, Middle East and in Europe. The Capex budgets of many upstream players have been reduced. Most of the spending cuts have happened in North America, Europe and Russia. Spending could fall further if prices continue to hover around US$30-US$40/bbl. India is amongst the fastest growing energy markets of the world. India’s gas demand is expected to increase from 51 Billion Cubic Metres (BCM) at an annual rate of 6% per annum to touch 68 BCM or about 186 Million Metric Standard Cubic Meter per Day (MMSCMD) by 2020. India’s gas demand grew by 2.6% in CY 2015. India’s current gas consumption is about 128 MMSCMD. India needs US$240 billion of investment in the upstream sector to unlock the full potential of its oil and gas blocks. (Source: Investments in upstream oil and gas likewise face challenges: the most promising of India’s remaining hydrocarbon resources are largely offshore, are technically complex to exploit and involve relatively high-cost projects. Few initiatives have been taken by Indian Government to promote the Indian oil and gas industry. International Energy Agency 2015). New gas pricing policy for production from difficult areas which includes marketing and pricing freedom. Changes in Section 3 of Central Sales Tax (CST) Act 1956, increases flexibility in the sale of gas to customers in different geographies. Policy of extension of Production Sharing Contract (PSC) for Pre- New Exploration Licensing Policy (NELP) Blocks. New Hydrocarbon Exploration Licensing Policy (HELP) based on revenue sharing model. 79 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis BUSINESS AND COMPETITIVE POSITION The Company’s oil and gas assets include KG D6, Panna-Mukta, Tapti and two Coal Bed Methane (CBM) blocks in addition to other domestic and international blocks. RIL also has three joint ventures in North American shale plays with Pioneer Natural Resources, Chevron and Carrizo. OIL AND GAS PORTFOLIO Block Conventional* KG-DWN-98/3 Panna Mukta Mid and South Tapti Other Blocks NEC-OSN-97/2 CY-DWN-2001/2 CB-ONN-2003/1 GS-OSN-2000/1 International Block 39 M17 M18 CBM* SP(East)-CBM-2001/1 SP(West)-CBM-2001/1 Shale Pioneer JV Chevron JV Carrizo JV Country Partners RIL Stake JV Acreage (in acres) India India India India India India India NIKO - 10%, BP - 30% BG - 30% ; ONGC - 40% BG - 30% ; ONGC - 40% Note 1 NIKO - 10%, BP - 30% Note 2 BP - 30% Note 3 BP - 30% Hardy - 10% Peru Myanmar Myanmar Perenco - 55%, PetroVietnam -35% UNRD 4% UNRD 4% India India USA USA USA - - Pioneer – 46.4%, Newpek – 8.6% Chevron – 60% Carrizo – 40% 60% 30% 30% 60% 70% 70% 90% 10% 96% 96% 100% 100% 45% 40% 60% 5,46,350 2,98,256 3,63,492 10,23,016 16,95,142 1,17,622 1,48,263 2,13,746 35,01,976 32,92,159 1,22,317 1,23,552 1,51,448 2,21,902 45,687 * Conventional and CBM acreage converted into acres using 1 sq. km. = 247.1053 acres Note 1: Tapti wells ceased to flow towards the end of FY 2015-16. Note 2: During the year NIKO withdrew from Joint Operating Agreement (JOA) accordingly RIL and BP assume it’s Participating Interest (PI). Assignment is underway. Note 3: RIL has relinquished Block CY-DWN-2001/2 (CYD5) in Q1 FY 2016- as the discovery D56 is techno-economically challenging for development and consequently assessed to be non-commercial. FINANCIAL AND OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE - DOMESTIC* FY 2015-16 (` in crore) FY 2015-16 (US$ in million) FY 2014-15 (` in crore) % change Revenues EBIT EBIT (%) * Consolidated basis 4,259 82 1.9% 643 12 1.9% 5,507 (22.7%) 1,250 (93.4%) 22.7% Revenues for the domestic oil and gas operations for the year were at `4,259 crore, a decline of 22.7%. This was largely on account of decline in production and lower crude oil and gas price realisation. EBIT for the year declined by 93.4% on y-o-y basis to `82 crore on account of the lower realisations and decline in production. 124 BCFe RIL’s share of production in India PRODUCTION PERFORMANCE JV Production Units of measurement FY 2015-16 FY 2014-15 KG D6 Oil Gas Condensate Panna- Mukta Oil Gas Tapti Gas Condensate MMBBL BCF MMBBL MMBBL BCF BCF MMBBL 1.5 139.1 0.3 6.9 68.7 3.3 0.1 2.0 157.6 0.3 7.2 70.7 14.3 0.2 RIL’s share of production in India during the financial year was 124 BCFe. RIL’s motto is to “Keep wells flowing”. RIL’s endeavour is to recover every cubic feet of gas or barrel of oil at marginal cost. Field up time of KG D6 is at par or better than global benchmark. 80 Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.KG D6 gas production declined by 12% for the year to 139.1 BCF. Fall in production was mainly due to natural decline in the fields coupled with sand ingress in MA wells. This was partly offset by incremental production from side tracks in well A1 ST and substitute well B7 Sub and field and well management efforts in D1-D3. Panna-Mukta field produced 6.9 MMBBL of crude, a reduction of 4% on y-o-y basis and 68.7 BCF of natural gas, a marginal reduction of 3% on y-o-y basis. JV has been able to sustain the FY 2014-15 levels of production despite various unplanned shutdowns. The major gains in production were achieved due to incremental gains from Mukta A wells, new workovers and completion of MB development and better gas compression system performance. Tapti wells ceased to flow towards the end of FY 2015-16. INTERNATIONAL BUSINESS Reliance and Myanmar Oil and Gas Enterprise (MOGE), an enterprise of the Government of Myanmar, had signed production sharing contracts for two offshore blocks (M17 and M18), last year. Reliance has carried out the environment impact assessment for the blocks. NORTH AMERICAN SHALE GAS OPERATIONS BACKGROUND The year under review was one of the most challenging years in recent history for the global oil and gas industry and for the North American Shale players, as sustained fall in benchmark prices and continued high differentials drove weak realisation and proved to be strong headwind for the industry. The industry responded well with remarkable cuts in capital spending and thrust on cost reduction by leveraging weak market conditions for services. The Company is competitively positioned within the US Shale industry given its presence in the Eagle Ford and Marcellus Shale plays, which are among the most competitive shale plays in the US. The Company effectively dealt with macro headwinds through slowdown in development activity and capex. Focus was on conserving cash and minimising development activity, without losing optionality on resources. Simultaneous focus was on improving efficiencies and costs, by leveraging weak market conditions as well as initiatives for preserving value at each of its joint ventures. its partners successfully Accordingly, Reliance along with reduced activity levels across JVs. Zero drilling strategy continued at Carrizo JV while the Chevron JV achieved gradual ramp-down to reach zero rig operations by the year-end. Pioneer JV ended the CY 2015 with 5 rig operations, compared to 6 rigs at the beginning of the year and 9-10 rig operation during CY 2014. Reliance’s aggregate investments into the business stood around US$900 MM during CY 2015, reflecting a fall of 25% y-o-y. Reliance has further reduced activity levels during 1H 2016 with Zero rigs in operation across all JVs, but is ensuring preparedness for ramp up when market conditions improve. Remarkable improvement in efficiencies and development costs was a key success area during the year for all JV partners. Helped by focused efforts on renegotiating service costs and use of advanced technology, Reliance JV’s achieved around 25% drop in well costs, compared to their average levels in CY 2014. In an important strategic move, Reliance successfully completed monetisation of its investments in the Eagle Ford Midstream JV. EFS Midstream LLC was jointly owned by Reliance and Pioneer Natural Resources. EFS provided gathering, treating and compression services and condensate stabilisation operations for the Reliance-Pioneer Upstream Joint Development in the Eagle Ford Shale. The JV had reached development maturity and transitioned from a ‘development’ mode to ‘stable operations’ mode, generating free cash flows since CY 2013. Its monetisation thus provided a significant opportunity for unlocking value for Reliance shareholders. In a joint transaction with Pioneer, Reliance sold its entire interest in EFS Midstream to an affiliate of Enterprise Product Partners L.P., for an aggregate sum of US$1,073 MM, to be paid in two tranches. Enterprise is a leading midstream operator and will continue to provide services to Reliance upstream JV. The transaction was closed effective on July 1, 2015 and the sale proceeds were used for part funding of capex and repayment of existing debt. Eagle Ford Drilling Site 81 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and AnalysisFINANCIAL AND OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE - US SHALE* Revenues EBIT EBIT (%) * Consolidated basis CY 2015 (` in crore) CY 2014 (` in crore) 3,256 316 9.7% 6,010 1,949 32.4% US$2.42/Mcfe in Q4 CY 2015 reflecting 47% y-o-y decline. For the full year CY 2015, the realised price was US$3.01/Mcfe impacting revenues, earnings and cash flows. AVERAGE REALISATION (US$/Mcfe) 47% DECLINE Y-O-Y 1 0 7 . 8 5 6 . OPERATIONAL PERFORMANCE Operationally, the business continued its strong performance during CY 2015. The shale gas business effectively managed the sharp downturn in prices through reduction in activity levels and lowering costs. Focus was on liquidating existing well inventory to bring more wells online than drilled and delivering wells at much lower well costs. The joint ventures drilled 136 wells and put 202 wells on production, taking the cumulative number of producing wells to 1,040 at the end of CY 2015. Drilling and completion activities were slowed down across JVs gradually during the year and is being further slowed in CY 2016. Reliance is committed to ensuring preparedness for ramp up across JVs, when market conditions improve. Gross JV production aggregated at ~1.26 BCFe/d for all 3 JVs and reflected a growth of 7% over the levels achieved in CY 2014. Reliance’s share of production was 203.8 BCFe in CY 2015, compared to 194.8 BCFe in CY 2014. Reliance’s share of Net Sales volume stood at 171 BCFe, compared to 168 BCFe in CY 2014. Slower pace of growth reflected the impact of conscious slowdown in development activities across JVs in view of challenging market conditions. Variable production strategy (at Carrizo JV) that curtailed production to prevent uneconomic realisation also impacted volumes during the year. Gross JV production aggregated at ~1.26 BCFe/d for all 3 JVs reflecting a growth of 7% over the levels achieved in CY 2014 FINANCIAL PERFORMANCE Financial performance of the Shale Gas business was impacted by strong macro headwinds with sharply lower price realisation driven by weak benchmark prices for natural gas (Henry Hub (HH)) and condensate (WTI) that tested multi-year lows during the year. WTI oil prices averaged 48% lower at US$48.8/bbl in CY 2015 while HH Gas prices averaged 40% lower at US$2.67/mmbtu during this period. Benchmark differentials remained high for both gas and condensates adding pressure on realisation. Reliance focused on proactive hedging to mitigate pressures while focusing simultaneously on export of Condensates that offer superior netbacks. These could offset the impact of weak prices only partially. Average unit realisation thus dropped to 82 9 6 5 . . 6 4 3 4 3 . 1 5 3 . 1 8 2 . 4 1 Y C 1 Q 4 1 Y C 2 Q 4 1 Y C 3 Q 4 1 Y C 4 Q 5 1 Y C 1 Q 5 1 Y C 2 Q 5 1 Y C 3 Q 2 4 2 . 5 1 Y C 4 Q The decline is in line with weak oil prices. The business managed it through effective production management and optimisation of capex and opex. CAPEX AND OPEX TRENDS Capex (US$MM) Unit Opex (US$/mcfe) 1.88 1.89 1.68 1.65 1.60 1.58 1.46 1.52 . 0 9 9 2 . 0 1 3 3 . 0 1 2 3 . 0 5 5 2 . 0 4 3 2 . 0 5 7 2 . 0 0 1 2 . 0 3 8 1 4 1 Y C 1 Q 4 1 Y C 2 Q 4 1 Y C 3 Q 4 1 Y C 4 Q 5 1 Y C 1 Q 5 1 Y C 2 Q 5 1 Y C 3 Q 5 1 Y C 4 Q Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Opex trends remained encouraging across JVs. Tight control over costs and improvement in efficiencies helped achieve sequential improvement in lease operating costs and overheads. Absolute opex were lower by over 4% across JVs, but could offset the impact of lower prices only to some extent. Consequently, reflecting lower realisation, business Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) dropped by over 60% y-o-y to US$299 million (excluding exceptional items) in CY 2015. At year-end CY 2015, Reliance’s share of proved reserves stood at 2.61 Trillion Cubic Feet equivalent (TCFe). Reserves could have been higher but for decelerated pace of development and certain technical and operational issues. Reliance’s Shale Gas Business continues to effectively manage current adverse macro environment through disciplined investment and by realising efficiency gains. Focus remains on preserving long-term value through innovative practices on well spacing, high impact completions and optimising recoveries by targeting new horizons and improving costs and performance with longer laterals. Pioneer JV The Eagle Ford Shale JV with Pioneer pursued various cost reduction and efficiency improvement initiatives, apart from new development initiatives aimed at improving recoveries and optimising well inventories. Outcome of various development initiatives are being studied for optimising forward development strategy. Thrust on further reducing well costs continues. Producing well count improved to 612 at the year-end, as compared to 499 well at the end of CY 2014. Gross JV production stood at 256 BCFe while Reliance share of net sales volume was at 96.5 BCFe, compared to 98.3 BCFe in CY 2014. Modest growth in production and sales volumes despite higher number producing wells were attributed to production interruptions for offset frac’ing, and natural decline of Proved Developed Property (PDP) wells. The share of liquids dropped from 68% to 65% in CY 2015, as the JV decided to reject ethane from the Natural Gas Liquid (NGL) stream to mitigate low realisation. Ethane rejection helped in recovering richer NGL barrels, in turn improving average realisation of NGL barrels apart from improving calorific value of Gas. JV achieved over 25% reduction in well costs compared to average well costs in CY 2014, through renegotiation of service contracts, improvement in efficiencies as well as success of several new initiatives focused on better completion technologies, 2-string casing design and efficient pad operations. Improved cost efficiencies helped in drilling more for less during the year and thus managing the depressed oil price environment. Chevron JV The JV demonstrated improvement in efficiencies and costs, through sustaining momentum in a low activity environment. Slow pace of improvement and long cycle time remains a key challenge at the JV. The challenging macro environment is adding further pressure in ensuring profitable development of Reliance core acreages at this Marcellus JV. Producing well count improved to 346 at the year-end, as compared to 257 wells at the end of CY 2014. Gross JV production stood at 166 BCFe, reflecting growth of over 36% y-o-y. Reliance share of Net Sales volume stood at 56.5 BCFe, compared to 44.7 BCFe in CY 2014. Remarkable reduction in operating costs and average well costs as well as some improvement in cycle time were key achievements during the year. JV achieved over 24% reduction in well costs compared to CY 2014 averages and demonstrated gradual reduction over the quarters reflecting increased execution efficiency on pads, water transportation and procurement gains. In addition, successful use of advanced technology enabled improvements in drilling and completion of wells (e.g. use of rotary steering tools for improved lateral placement and use of diverting tools for improved proppant placement). JV is pursuing zero rig development and liquidating frac inventory in view of the challenging pricing environment, while it continues to work on various operational and cost efficiency improvement initiatives to maximise well recovery and decrease well cost. Carrizo JV Reliance Marcellus JV with Carrizo pursued ‘zero development’ and ‘variable production’ strategy during the year, in view of the prevailing challenging price environment in the North East region. Initial development activities in the Northeastern Pennsylvania (NEPA) region have matured and its future growth is expected to come from infill drilling in the NEPA region and potential development of acreages in the C-counties. The JV decided to defer development activities and stay focused on optimising production from existing wells in the NEPA region. Gross JV production of 37 BCFe reflected a fall of 33% y-o-y and reflected the impact of production curtailments carried out to prevent uneconomic realisation during the year. JV managed volumes as a function of price/netback and shut-in wells to ensure minimum volumes without impacting well integrity issues. As a result, Reliance share of net sales too reflected a 32% y-o-y fall to 18.5 BCFe in CY 2015. 83 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and AnalysisCAPEX AND GROWTH PLANS KG D6 APPRAISAL OF MJ1 DISCOVERY As a part of the appraisal programme for the D-55 discovery, continuous evaluation of results of 3 wells were carried out extensively. for reservoir characterisation and conceptual engineering/Pre Front-End Engineering Design (FEED) studies has also been completed. Based on these appraisal efforts, the JV believes that the discovery is commercial and has submitted Commerciality Report to Management Committee (MC) for its review, leading to a reserves accretion of about 1 TCFe in the current fiscal. In addition, enhanced imaging RIL has reduced opex by more than 20% for same level of operations and is now focusing on optimising capex for future development DEVELOPMENT PROJECTS – R-CLUSTER Considerable work towards optimisation of design and associated costs has been carried out during the year by Reliance along with JV partners to enhance the project robustness. SATELLITE CLUSTER DEVELOPMENT During the year, based on GoI policy on testing requirement, Reliance along with JV partners has performed Drill Stem Test (DST) operations in discoveries D29 and D30. The results are in line with the expectation. In view of smaller and scattered nature of the accumulations, these discoveries are conceptualised to be developed in an integrated manner with the 4 Satellite discoveries. The JV has submitted commerciality report to MC in Q1 FY 2016-17. PRODUCTION AUGMENTATION EFFORTS IN EXISTING PRODUCING FIELDS (D1, D3 AND D26) Reliance has put its best endeavours to operate through challenging E&P environment both global and domestic. While the D1-D3 and D26 (MA) fields are experiencing natural declines, a commendable job has been done to “keep wells flowing”. Reliance strives to recover every cubic feet of gas or every barrel of oil at marginal costs. D1-D3 field continues to produce from eleven wells. To maximise the life and recovery from the field, two well intervention jobs were successfully completed, i.e., Side-track job A1 ST and Substitute well B7 Sub. In addition, one well B6 was successfully activated. Further measures through field and well management are being undertaken to extend field life and maximise recovery. In D26 field, given the sand ingress surprise in MA5H Side Track and water ingress in MA2, additional side tracks have been matured and drilling campaign has commenced in Q1 FY 2016- 17 to augment production and maximise the recovery from the field. 84 RIL is leveraging deflation in markets to maximise benefits. RIL has already reduced opex by more than 20% for same level of operation and are now focusing on optimising capex for future development. PANNA-MUKTA The Panna-Mukta field is a major contributor to the E&P revenue and profitability and has entered into the last four years of its contract period. The PSC extension policy announced by the Government will extend the contract period up to the economic life and maximise the recovery from the field. JV partners are exploring options in line with the policy. During the year, the following activities were carried out to sustain production from this field: Completed work-over of 7 wells. 6 wells were drilled and put on production as part of Mukta-B development during the year. The MA-MB line was completed in Mukta that helped resuming production from MA platform. PE-PF gas lift line was installed in the Panna field leading to revival of 2 sick wells and sustenance of production from flowing wells at PF platform. TAPTI Tapti cessation of production occurred in March, 2016. In line with the PSC, Reliance along with its partners has issued an abandonment notice to the Government in December 2013. JV partners also started allocating funds for site restoration activity. With the signing of Tapti Asset Transfer Agreement (TATA), with ONGC, as a Government nominee, Tapti JV has handed over the process facilities and the export pipelines for its Daman development project during Q1 FY 2016-17. As part of the site restoration of Tapti block, Tapti JV will commence necessary decommissioning and abandonment activities (the first of its kind in India’s E&P industry) for the balance of the facilities in FY 2016-17. OTHER NELP BLOCKS NEC 25 During the year, based on GoI policy on testing requirement, Reliance along with JV partners has performed DST operations in discovery D32 in the block. The Declaration of Commerciality (DoC) has been submitted to Management Committee in Q1 FY 2016-17. During the year Niko withdrew from PSC and JOA. Pursuant to the provision of the JOA, RIL and BP agree to assume Niko’s PI of 10% in the ratio of respective PI of BP and RIL. The process of assignment is underway. CB 10 The block was awarded under the NELP-V licensing round and is the only conventional on-land block operated by Reliance. Post Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. completion of phase-I of the exploration period, Reliance made eight oil discoveries out of 18 wells drilled in this block, and the Government has approved Reliance and its partner to enter into exploration phase-II in January, 2015. Reliance has extensive plans towards drilling to explore and augment additional resources. During the year, the Field Development Plan for seven oil discoveries was submitted and is awaiting approval. RIL CBM project is country’s first large-scale unconventional project CBM (SOHAGPUR EAST AND SOHAGPUR WEST) DEVELOPMENT PROJECT RIL has commenced test production and pre-commissioning and commissioning activities from Sohagpur (West) block. RIL CBM project is country’s first large-scale unconventional project. The execution is full of challenges due to lack of infrastructure and challenging terrain. As part of initial development, RIL plans to start test production of CBM with more than 200 wells spread over 450 sq.km. It has setup two gas gathering stations and eight water gathering stations for collection of gas and water respectively and has laid India’s largest HDPE gas gathering network. RIL CBM project is probably the largest surface footprint project in E&P sector in India. RIL through its commitment to societal values has carried out effective local community engagement and has implemented various community development programs including education, health and hygiene, livelihood support, training of local community, etc. CBM Coal Bed Methane project at Shahdol SHAHDOL-PHULPUR GAS PIPELINE PROJECT Reliance Gas Pipeline Limited, a subsidiary of Reliance, has completed the pipeline laying work for the entire 302 km Shahdol-Phulpur Pipeline from Shahdol (MP) to Phulpur (UP) and testing and commissioning activities under progress. This pipeline will help Central India in getting connected with national gas grid. 302 km Pipeline Completed the pipeline laying work for the entire 302 km Shahdol-Phulpur Pipeline from Shahdol (MP) to Phulpur (UP). This pipeline will help Central India in getting connected with national gas grid. UPDATE ON ARBITRATION AND OTHER LEGAL ISSUES DOMESTIC GAS PRICING ARBITRATION In October 2013, Cabinet Committee on Economic Affairs (CCEA) approved a new gas pricing formula for a period of five years based on the recommendation of the Rangarajan Committee Report on ‘The Production Sharing Contract Mechanism in Petroleum Industry’. The Domestic Natural Gas Pricing Guidelines, 2014 were notified by the Government on 10th January, 2014. The price under the new formula was to be applicable from 1st April, 2014, including the gas produced from block KG-DWN-98/3 (’KG D6 Block’) where the previous approved price expired on 31st March, 2014. The gas price under these guidelines was to be notified by the Government by March, 2014. There was continued delay on the part of the Government in notifying the price in accordance with the approved formula. RIL, BP and NIKO issued a Notice of Arbitration on 9th May, 2014 to the Government of India, seeking declaration that the Contractor has the right to sell gas produced from KG D6 Block at approved competitively determined, arm’s length prices, and that the Government approved the price under the ‘Domestic Natural Gas Pricing Guidelines 2014’ notified on 10th January, 2014, in terms of the Production Sharing Contract (PSC). 85 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and AnalysisOn 18th October, 2014, in supersession of its earlier notification of 10th January, 2014, the Government notified the New Domestic Natural Gas Price Guidelines 2014. In RIL’s view, the methodology used for valuation of gas under these guidelines, does not reflect true arms- length market price of gas in India as required under the PSC signed with the Government. Without prejudice to any of its rights and contentions, RIL is complying with the guidelines. RIL and Government of India have nominated their respective arbitrators and the two nominated arbitrators have not been able to agree upon a presiding arbitrator. RIL, BP and Niko have filed an application for appointment of the presiding arbitrator before the Supreme Court of India and the same is presently pending consideration. KG D6 ARBITRATION AND OTHER LEGAL ISSUES RIL sought Government’s confirmation that no action was being planned following news reports that the Government may curtail the Company’s entitlement to recover its costs on the basis of there being a shortfall in production from levels specified in the development plan. According to the Company, the PSC permits full ‘cost recovery’ of its costs of exploration, development and production from the value of petroleum produced from the KG D6 Block. RIL on behalf of all contractor constituents - namely Niko (NECO) Limited (NIKO) and BP Exploration Alpha Limited (‘BP‘) (together, the ’Claimants‘) served an arbitration notice on the Government on 23rd November, 2011 (‘Cost Recovery Arbitration‘). Both the Claimants and the Government have appointed arbitrators and on 23rd September, 2014, the Supreme Court nominated Hon’ble Michael Kirby AC CMG as the presiding third arbitrator. Claimants’ have filed their Statement of Claim and in response Government has filed its Statement of Defence. Claimants are in the process of filing their Reply and Defence to Counterclaims. Three public interest litigations have been filed before the Supreme Court of India against the Company in relation to the production sharing contract for KG D6 Block seeking substantially similar reliefs in the nature of; (i) disallowance of cost recovery under the production sharing contract for KG-D6 Block; (ii) quashing the Government’s decision to approve the certain gas price formula, and (iii) termination of production sharing contract for KG D6 Block on the basis that the Company has not achieved the committed production. In the views of both the Company and the Government, point (ii) in the public interest litigation no longer survives in view of the revised pricing guidelines issued by the Government on 18th October, 2014 and being a matter of arbitration. Petitioners have also requested the Supreme Court to stay the Cost Recovery Arbitration. The Company has submitted that the underlying issues which have been flagged by the Petitioners are already subject matter of Cost Recovery Arbitration and the Gas Price Arbitration and the same need to be heard by the arbitral tribunal. 86 PMT ARBITRATION In December 2010, the Company and BG Exploration and Production India Limited (together, the ’Claimants‘) referred a number of disputes, differences and claims arising under two Production Sharing Contracts entered into in 1994 among the Claimants, Oil and Natural Gas Corporation Limited (ONCG) and the Government (the ’PSCs‘) to arbitration. The disputes relate to, among other things, the limits of cost recovery, profit sharing and audit and accounting provisions of the PSCs. The value of the Claimants’ claims exceeds US$500 million. The Government’s defense dated 31st January, 2012 raised certain jurisdictional objections and asserted a number of substantial counterclaims, including claims for underpayment of profits and failure to complete agreed work programmes. The parties agreed by consent that the juridical seat of the arbitration would be London, England. Following an initial merits hearing in May 2012, the Tribunal passed a number of final partial awards, largely in the Claimants’ favour. The Government challenged the Tribunal’s awards/ determinations under Part I of the Indian Arbitration and Conciliation Act 1996 before the Hon’ble Delhi High Court. These challenges were ultimately dismissed after the Claimants prevailed in a Special Leave Petition (SLP) before the Hon’ble Supreme Court on 28th May 2014. The Government filed a Review Petition before the Supreme Court against this judgment, which was unsuccessful, and also filed a Curative Petition before the Supreme Court seeking reconsideration of the judgment which was also dismissed. ONGC, another constituent of Contractor under the PSCs but not a party to the arbitration (as ONGC was directed by the Government of India at the inception to be bound by any award and not to participate in the arbitration) had filed an intervention application in the disposed off Government SLP on the basis that there are certain factual and legal errors in the judgment and ONGC needs to present its position before the court however the same was also disposed off. GoI filed another application before the Supreme Court stating that certain observations made by the Court in its judgment may have far reaching implications on the Government’s rights and the same may be expunged, however, since the Court was not inclined to entertain GoI’s request, the GoI has withdrawn its application. Arbitration hearings on the merits are complete and the Tribunal has indicated that they would be publishing the award in July 2016. Once award on merits is published, Parties will be heard by the Tribunal on the Cost Recovery Limit (CRL) increase request of the Claimants (if necessary) and quantum. Given the complexity of issues involved, the hearings on CRL increase and quantum will take a few months to be heard leading to a final arbitral award on adjustments required to the Cost and Profit Petroleum due to the Parties. Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.YEMEN ARBITRATION Considering the deteriorating security situation in Yemen, consortium of Reliance Exploration and Production DMCC and Hood Energy Limited declared Force Majeure thereby suspending its obligations under the Production Sharing Agreements (“PSAs”) for the Yemen blocks 34 and 37 and subsequently terminated the PSAs on account of continued Force Majeure. Yemen Government issued demands under the Letters of Credit (“LCs”) established pursuant to the terms of the PSAs on account of alleged non-performance of PSA obligation. Reliance and Reliance Exploration and Production DMCC have obtained injunction from Hon’ble Bombay High Court for restraining bankers from honouring any demand of Yemen Government under the LCs during Force Majeure period. Reliance Exploration and Production DMCC and Hood Energy Limited have also initiated Arbitration proceedings against Yemen Government under the terms of the PSAs and the arbitration proceedings are presently underway. ONGC GAS MIGRATION CLAIM ONGC filed a Writ Petition before the Hon’ble Delhi High Court alleging that RIL, through wells located in proximity to the border of KGD6, has extracted gas from ONGC operated blocks KG DWN 98/2 (KGD5) and G4 PML. RIL and ONGC, in consultation with Director General of Hydrocarbons, appointed DeGolyer and MacNaughton (D&M) as an independent expert to ascertain whether there has been migration of gas across RIL and ONGC blocks. The Writ Petition was disposed of with a Direction to the Parties to cooperate with D&M in preparing its report and the Government to take decision (if any) on the said report. Following submission of its report by D&M, Government of India appointed a one man committee headed by Mr Justice (Retd) AP Shah to examine the D&M report and make recommendations. The proceedings of the Committee are concluded and it is expected that the Committee will in due course make its recommendations known, at which stage RIL will consider what, if any, action it requires to take. DISPUTE WITH NTPC NTPC had filed a suit for specific performance of a contract for supply of natural gas by RIL. The main issue in dispute is whether a valid, concluded and binding contract exists between the parties for supply of Natural Gas of 132 Trillion BTU annually for a period of 17 years. Cross examination of NTPC’s witness has been completed and RIL’s fact witness is to be examined by NTPC. CORPORATE SOCIAL RESPONSIBILITY CSR INITIATIVES At exploration and production sites, there was significant focus on skill development, enhancing the education infrastructure, promotion of higher education and greenbelts. Computer Aided Literacy Centres were one of the major initiatives in these sites. The Reliance’s Information Services also benefited the local farmers and fisherfolks in a big way. 800 youths and community members benefited from the Village Knowledge Centres. 3,500 students have benefited from the computer aided learning facility. Over 2 lakh trees were planted in and around the site. 223 poor and meritorious students were provided scholarship to pursue higher studies. Impact Enhanced employability of local youths. Reduction in school dropout rates. Reinforced sustainable environmental practices. Students at Gadimoga School 87 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis MAJOR BUSINESSES RETAIL BUSINESS SUBRAMANIAM V. BRIAN BADE DAMODAR MALL AKHILESH PRASAD JOHN WILCOX “Reliance Retail, the core of RIL’s consumer-facing businesses, has become an essential part of its customer’s lives through state-of-the- art stores, countless choices, competitive value proposition and superior quality. Reliance Retail is India’s largest retailer by revenues. Continuing on the growth orbit, Reliance Retail posted a record EBIT of `506 crore, expanded its reach through new store additions and launch of its exclusive e-commerce website www.ajio.com. Reliance Fresh, India’s leading neighbourhood supermarket chain, continues to be one of the ‘Most trusted service brands’ in the country and a preferred choice for its customers day to day Fresh and dairy needs and monthly purchases. This year Reliance re-launched its destination stores as Reliance SMART which offers abundance in choice and upfront big value and savings. Reliance works closely with its vendor partners in Reliance’s continuing growth story of meeting customer needs pan India. The year also marked the launch of ‘LYF’ smartphones and 4K televisions as part of the giant strides that RIL is taking to mobilise the potential of Digital India, harnessing the synergies brought by Reliance Jio and Reliance Retail.” `506 crore Retail EBIT increased by 21.3% y-o-y Reliance Smart at Jamnagar 88 Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.STRATEGIC ADVANTAGES AND COMPETITIVE STRENGTH Since its inception in 2006, Reliance Retail has grown to cater to millions of customers and thousands of farmers and vendors. Reliance Retail is the retail initiative of Reliance Industries and an epicentre of its consumer facing businesses. It has in a short time forged strong and enduring bonds with millions of consumers by providing them unlimited choice, outstanding value proposition, superior quality and unmatched experience. Multi-retail concept To serve customers across diverse shopping needs, Reliance Retail has adopted a multi-retail concept strategy thereby offering products to consumers across the country. Adaptive / Agility Partner of Choice State-of-the-art Infrastructure Multi-channel strategy Reliance Retail has emerged as the partner of choice for Internation- al brands and has established exclusive partnerships with many revered international brands. Reliance Retail has built state-of-the-art infrastructure supporting business systems and supply chain. Its highly trained people and robust processes ensure consistent execution. Reliance Retail has adopted multi-channel strategy and has integrated ‘offline-online’ model to truly differenti- ate the customer experience. Reliance Retail operates on a framework that fosters rapid adaptation to ever changing external environment whether it pertains to technology evolution, consumer experience or the way shopping habits are changing. This has helped Reliance Retail in maintaining its market leadership by anticipat- ing and responding quickly to ever evolving customer and market dynamics. MARKET ENVIRONMENT AND OUTLOOK India’s economy is the world’s 7th largest by nominal GDP and the 3rd largest by Purchasing Power Parity (PPP). India is one of the fastest growing major economies in the world with an average growth rate of more than 7% over the last decade. The growth prospects of the Indian economy are positive due to its young population, corresponding low dependency ratio, healthy savings and investment rates and increasing integration into the global economy. India has topped the World Bank’s growth outlook for the first time with the economy having grown 7.6% in FY 2015-16. India is the 5th largest retail market in the world. The market is highly fragmented, with an estimated 15 million traditional Kirana stores making up the unorganised sector and contributing to nearly 90% of the estimated US$600 billion retail market. This very structure in combination with an improving economy and growth drivers such as favourable demographics, urbanisation and shift in consumer shopping behaviour has opened a large window of opportunity for modern retail formats to grow. By 2020, the Indian retail market is expected to nearly double to US$1 trillion (Source: Retail 2020: Retrospect, Reinvent, Rewrite by BCG and RAI, 2015). Reliance Retail’s customer loyalty programme enjoys patronage of over 30 million registered members Modern retail contributes to a mere 10% of the retail market in India, but is estimated to experience steady growth (Source: Retail 2020: Retrospect, Reinvent, Rewrite by BCG and RAI, 2015). Factors such as favourable demographics, rising disposable income, exposure to international lifestyle are some of the reasons contributing to the growth. The e-commerce sector in India is expected to be in the range of US$22 billion in 2015. E-Tailing, which comprises of online retail and online marketplaces, has become the fastest-growing segment in the larger market, having grown at a compounded annual growth rate of around 56% over 2009-2014. The size of the e-Tail market is pegged at US$6 billion in 2015. (Source: e-commerce in India by PWC). OPERATING STRATEGY Reliance Retail is India’s largest retailer by revenues as well as by retail footprint. To serve customers across diverse shopping needs, Reliance Retail has adopted a multi-retail concept strategy thereby offering products to consumers based on their shopping habits. Reliance Retail operates chain of convenience stores, supermarkets, wholesale cash-and-carry and specialty stores. Some of the guiding philosophies to Reliance Retail’s operating strategy are: Customer Centricity: Reliance Retail has embraced customer service as a way of life in everything it does to operate its business. Continued focus on training has fostered a culture of customer centricity. Reliance Retail’s Customer Loyalty programme enjoys patronage of over 30 million registered members. The valuable insights generated through this critical tool help in understanding and serving the needs of customers. 89 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis FINANCIAL PERFORMANCE* FY 2015-16 (` in crore) FY 2015-16 (US$ in million) FY 2014-15 (` in crore) % change Revenues EBIT EBIT (%) * Consolidated basis 21,612 506 2.3% 3,262 76 17,640 22.5% 417 21.3% 2.4% Private Label Strategy: Reliance Retail has been continuously investing in developing a compelling range of private label products across multiple categories. Private label plays very important role in the business by bridging the category gaps in the offerings, delivering higher customer value and profitability. Building Value Chain: Reliance Retail has a far-sighted and a proactive approach in value chain management. It has constantly focused on identifying and investing in opportunities that deliver superior shared values and positive impact to all the stakeholders of the value chain. Reliance Retail in every aspect of its business has had a transformational impact whether it is through a robust food supply chain from farm to shelf or in creating a sustainable fashion value chain from fabric to fashion. Innovation: Reliance Retail has the agility to embrace global consumer trends and adapt to them to offer coherent products and service to its customers. Innovation of new products has provided it a competitive edge over its peers which can be seen from growing share of private labels in overall sales. FINANCIAL AND OPERATIONAL PERFORMANCE TURNOVER (` in crore) 29% CAGR for 5 Years 2 1 6 1 2 , 0 4 6 7 1 , 6 5 5 4 1 , 4 1 - 3 1 0 2 Y F 5 1 - 4 1 0 2 Y F 6 1 - 5 1 0 2 Y F 5 4 8 0 1 , 3 1 - 2 1 0 2 Y F 6 3 6 7 , 2 1 - 1 1 0 2 Y F Reliance Retail has maintained its focus on profitability and sustainable growth despite undertaking an accelerated store expansion 90 True 4G and True 4K The brand built on the premise of unmatched user experience offers high performance handsets and TVs that deliver a true 4G and true 4K viewing experience comparable to the best in the world. Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Reliance Retail has further consolidated its position as the market leader. Reliance Retail continued its growth momentum and achieved significant milestones in the year. Reliance Retail posted a turnover of `21,612 crore during the year ended 31st March, 2016 against `17,640 crore during the same period last year registering a strong growth of 22.5%. The business delivered record profits during the year with an EBIT of `506 crore as against `417 crore in the corresponding period of the previous year. The superlative growth has been earned due to strong operating discipline, a focus on delivering differentiated product offering and accelerated expansion into newer geographies. The relentless focus on continuous improvement and strong controls has led to maintenance of margins while undertaking extensive expansion of retail stores. Store opening continued during this period and Reliance Retail added 624 stores and attained the distinction of operating 3,245 stores with presence in over 500 cities and towns with 12.8 million sq. ft. of space giving it ubiquitous presence across the country. It is currently operating 3,383 stores. Reliance Retail serves its customers across various consumption baskets that constitute a major portion of Indian household’s monthly expenditure. Indian Consumer Durables and IT (CDIT) market is estimated to be US$33 billion in 2015 and is expected to become US$45 billion by 2019 (Source: GFK, Euromonitor, IDC). The market is expanding due to favourable factors such as rising disposable Fashion and Lifestyle e-commerce platform During the year, Reliance Retail launched www.ajio.com, the curated fashion and lifestyle e-commerce platform income, rapid urbanisation, shift towards nuclear families and low product penetration across consumer electronic categories. Reliance Retail has the distinction of operating the largest consumer electronics store chain in India. Reliance Retail operates Reliance Digital and Digital Express Mini stores, each designed to offer a differentiated value proposition, strong in- store experience and extensive, yet relevant product assortment. Reliance Digital Express Mini, a chain of smaller stores, caters to the rapidly growing market for mobility and communication products. The chain is increasingly becoming a distribution platform for a large number of national and international brands as it offers reach to over 500 cities in India, with further plans to take the retail chain to over 800 cities. ResQ, the service arm of Reliance Retail continues to expand and strengthen its capabilities. 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 consumer electronics products and other value-added services. Over the years, Reliance Retail team has built strong capabilities in developing store brands that offer superior feature, quality and price proposition vis-à-vis leading brands. ‘Reconnect’ has been launched as a national brand leveraging on a platform built for product innovation, development and sourcing of superior quality products. During the year, Reliance Retail launched its own brand of 4G LTE smartphones and 4K TVs under the ‘LYF’ brand. The brand offers “affordable luxury” and the “latest technology” to all. The brand built on the premise of unmatched user experience offers high performance handsets and TVs that deliver a true 4G and true 4K viewing experience that is comparable to the best in the world. The Indian apparel market was US$46 billion in 2013 and likely to expand exponentially to US$200 billion by 2025 (Source: Role of Indian Textile and Apparel Industry in Changing Global Supply Demand Scenario, Wazir Advisors Oct’14). India’s demographic dividend, proliferation of fashion retail chains and increasing demand for branded apparel continues to drive growth for the fashion and lifestyle category. Reliance Retail is the largest fashion apparel retailer in India and has adopted a multi-model approach in reaching out to its customers through various retail concepts that caters to customer segments from value to premium and luxury. During the year, Reliance Trends, the apparel and accessories speciality retail chain consolidated its market leadership as the largest value fashion retailer in India. Reliance Trends brings a compelling portfolio of own brands and national brands offering a wide range of inspiring fashion with strong value proposition. 91 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and AnalysisTo cater to the varying fashion trends in Indian wear across the country, Reliance Retail has established regional design centres for leveraging the traditional artisan work in those regions and make them accessible to millions of customers across the country. Reliance Footprint, the specialty family footwear chain, offers footwear and accessories through a range of own, national and international brands. Reliance Footprint won the “ABP Business Excellence” award for brand excellence in the Fashion and Lifestyle category. The chain was also awarded “Footwear Retailer” of the year by CMO Asia Retail Excellence Awards 2015. The partnership with Marks and Spencer (M&S) continued to witness robust growth across all retail parameters. M&S was awarded the “Most Admired Retailer of the Year - Employee Practice” by IMAGES Retail Awards 2015”. Reliance Retail has a portfolio of over 40 brands that span across the entire spectrum of luxury, bridge to luxury, high-premium and high-street lifestyle. During the year Reliance Brand announced an exclusive partnership with Japanese retailer Muji, which sells a wide variety of household and consumer goods and an exclusive distribution and retail licensing partnership with Kate Spade New York. Addressing the market gap in kids wear segment, Trends launched the kids wear brand Point Cove in partnership with Cherokee, a multi-billion dollar iconic American family-lifestyle brand. The initiative has paid rich dividend in terms of increased category share and higher sales productivity. During the year, Reliance Retail launched www.ajio.com, the curated fashion and lifestyle e-commerce platform. The initiative features an exclusive handpicked collection of merchandise from international fashion brands, Indian brands and own labels and is receiving rave reviews. The food and grocery industry in India is currently estimated to be US$422 billion in 2015, and is expected to touch US$711 billion by 2020 (Source: India Internet by UBS, April 2015). Modern retail has been the biggest benefactor of this. Over the last decade, modern retail has experienced high growth and a noticeable shift in Indian shoppers patronising them. Reliance Retail through Reliance Fresh, Reliance Smart and Reliance Market stores offers a compelling range of products in food and non-food categories tailored to the taste and preferences of the local communities. Reliance Retail continues to be the leading grocery retailer offering fresh fruits and vegetables, dairy, processed food, Fast Moving Consumer Goods (FMCG) and other items of daily use. 92 ”Reliance Fresh” has consistently appeared in the list of “Most Trusted Brands by Brand Equity” by Economic Times (ET). In FY 2015-16, Reliance Retail has launched “Reliance Smart”, a destination store offering a simpler and stronger value proposition to customers. During the period, Reliance Retail has focused on optimising operations to enhance productivity and improve profitability across network of stores involved in food and grocery retailing. Several own label products were launched under various grocery and general merchandise categories which continue to attract consumers due to compelling value proposition and great quality. The business recorded strong participation from private label brands in key categories such as Home and Personal Care, Staples, Dairy and Fresh Food. Reliance Market, the largest chain of wholesale cash and carry stores in India continues to deliver the benefits of modern trade to a large number of kiranas, traders and institutions as partners across the country. The business operates on the principle of ‘buy for less’ – ‘operate for less’ – ‘sell for less’ relying on higher efficiency of asset utilisation and passing on the higher value to customers. The societal value thus created by Reliance Markets helps in supporting partners to be more profitable. As a result, Reliance Market enjoys the patronage of over 2 million registered members across 37 cities. GROWTH PLANS Reliance Retail has manifested the ethos of ‘Growth is Life’ as its core philosophy. The vigour towards establishing strong leadership has been a driving force for the Company’s superior performance during the year. The core pillars of growth have been built on a framework surrounding product innovation, superior customer experience resulting in sustainable and profitable operations. The era of ‘Digital India’ is taking shape as the ecosystem around data security, device and bandwidth availability, digitisation of wallets, content availability and more continues to improve. This is paving the way for a large number of customers to get a first- hand experience of online shopping. The e-tailing segment is on a high growth curve and Reliance Retail is well prepared to participate in this growing channel. With multi-channel initiatives for grocery and apparel under its belt, Reliance Retail will extend its reach to cover the entire country much beyond the 500 towns where its physical stores are operational. The opportunity of integrating an ‘offline-online’ model would truly differentiate the customer experience. Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Reliance Retail is building the largest distribution reach for devices in India. The infrastructure encompassing on-boarding of trained sales specialists, integrated supply chain and service centres has been made fully operational at over 1,000 locations around the country as part of building a digital ecosystem in the country. The distribution channel will harness the synergies brought by Jio and Reliance Retail and unleash the potential of digital India. CORPORATE SOCIAL RESPONSIBILITY Reliance Retail has continuously adopted social improvement as a primary responsibility. It has taken the lead in creating businesses that continually generate value for every citizen of the country. Reliance Retail through its vast store network continually engages in a series of community activities bringing about a meaningful impact in the lives of people. During the year, various Community Connect Activities were carried out at store level such as cleaning of public areas, conducting health check-up and blood donation camps. Stores also conducted various Customer Connect Activities such as educational store visits for students, conducting essay writing and quiz competitions to engage with kids and families. Collectively these activities have helped build a harmonious relationship with customer and the community at large. Reliance Fresh has joined hands with Akshay Patra, an NGO that serves freshly cooked, nutritious meals to over 1.4 million children in more than 10,000 schools across 10 states of India. Reliance Fresh is the ground partner where any citizen and any of its customers can come to the stores and donate `750/- to Akshay Patra to feed one child for a full year. Apart from mobilising citizen support and channelising the donations directly to Akshay Patra, Reliance Retail has also received support from vendor partners in this cause. Reliance Retail rolled out a joint campaign with Coca Cola to create cleaner neighbourhoods. Another campaign encouraging its customers to recycle empty PET bottles of any beverage/ packaged water and reduce plastic waste was also carried out this year. Recron (RIL) participated in the drive as a recycling partner. Recycling of PET Bottles 93 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and AnalysisDIGITAL SERVICES SANJAY MASHRUWALA MATHEW OOMMEN PANKAJ PAWAR “Jio promises to shape the future of India by providing end-to-end digital solutions. Bridging the gap in the digital lives between Indians and its western counterparts, through Jio, RIL aims to introduce a paradigmatic expansion through Connected Intelligence. Pillar by pillar, RIL undertook developmental activities on this front; Jio is the first telecom operator to hold a pan India Unified License with 800MHz and 2300 MHz spectrum foot print in all the 22 telecom circles and 800 MHz, 1800 MHz and 2300MHz spectrum in 18 telecom circles. Jio is currently the only operator with sub-GHz (800 MHz) pan India LTE offering capability. With state-of-the-art all IP network comprising over 92,000 eNodeB and approximately 2,50,000 route km of fibre optic at launch, customers of Jio will have access to a large suite of digital services which will enrich their experience. Jio Money, its digital currency platform, will play a crucial role in financial inclusion. Jio will play a significant role in lifting India from its current 155th rank in mobile broadband penetration to amongst the top 10 nations in the world. With proposed investment outlay of over ₹1,50,000 crore, Jio is the world’s largest startup.” Towards Massive Rollout Jio – A Digital Revolution 94 Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.STRATEGY The four pillars of Jio strategic interventions areas follows: Coverage Data Quality Affordability Coverage refers to anytime, anywhere mobile broadband access. Currently mobile broadband coverage in India is estimated at just 15% in contrast to 75% in the US. At launch, Jio will have 70% coverage of population and will rise to 90% in the next one year. This coverage will be backed by the largest network of spectrum, tower and fiber assets, thus providing huge capacity Data consumption per consumer in India is far below the global average. Currently, the per capita data consumption is estimated to be 0.15 GB per month mainly due to supply side constraints. Jio’s network is engineered to provide capacity of over 10 GB per month for every Indian. Quality of broadband services in India is below par international standards. Jio plans to offer speeds that are multiple times faster than the current average speeds offered in the market, through investment in superior Long Term Evolution (LTE) based networks backed by world class customer service quality. Affordability is key to success of the digital revolution. Jio will make its services accessible and affordable to all consumers. It has developed its network at an extremely efficient cost base coupled with significant operating efficiencies. These efficiencies will enable it to offer services at a substantially lower cost than others. MARKET ENVIRONMENT The digital world is increasingly moving from voice and written content to video content. Video will be the new voice for most in the new evolved telecom network industry. There is a rapid increase in data consumption across global mobile networks: 60% growth in mobile data traffic between Q1 CY 2015 and Q1 CY 2016 A projected 14x increase in mobile video traffic between CY 2015 and CY 2021 A similar trend is expected in India and is already visible in the increased data consumption in recent years. India has the highest proportion of young people, who are the pre-dominant Internet users today, than any other country in the world. Increasing per capita income and rising middle class further strengthen the digital opportunity for India. All these reflect in Cisco Visual Networking Index Mobile Forecast 2015-2020, which projects mobile data traffic in India to grow 12-fold from CY 2015 to CY 2020 at a CAGR of 63%. While the potential is significant, India is a grossly underserved market in broadband and digital services. From less than 5 million mobile users in CY 2001, India has grown to more than 1,059 million mobile users as of April 2016, making India the second largest telecom customer base in the world. (Source: Telecom Regulatory Authority of India (TRAI)). However, the growth in broadband connections has not been commensurate, at 151 million broadband. Internet subscribers as of April 2016, India’s broadband penetration is among the lowest in the world (Source: TRAI). Internet speeds in India are among the slowest compared to most other countries. India was ranked 155th in mobile broadband penetration in the State of Broadband 2015 report of the Broadband Commission (ITU and UN). Lack of investment in good quality broadband infrastructure and the lag in adoption of technological advancements by the industry are main reasons for such underservice. This underserved broadband need combined with the shift towards a data centric world presents a great opportunity to create a reliable, next generation digital services ecosystem. This is an enormous opportunity for players in the digital industry wtih the potential to transform the lives of 1.3 billion people and have a multiplier effect on the gross domestic product (GDP). The large potential, in terms of underserved addressable market and dormant usage given the poor level of penetration today, provides a substantial opportunity for Jio to build India’s digital eco-system. Jio is well positioned to address this opportunity with it’s investment in network infrastructure that will give India one of the most powerful and unmatched video networks in the world. Jio’s ultimate aim is to connect Digital India and Digital Bharat till the last mile and provide the benefits of digitisation to every town and village. LINKING STRATEGY TO EXECUTION Jio is present in all of the 29 states of India with a direct physical presence in more than 18,000 urban and rural towns and over 1,50,000 villages. Jio has built the most sophisticated and one of the largest telecom networks in the country. Jio already has the largest fibre network and the highest amount of LTE-ready spectrum as compared with the current industry players. The 95 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis spectrum holding and infrastructure network strengthens the coverage and data availability. LICENSE AND SPECTRUM HOLDING Jio signed the Unified License Agreement with Government of India, Ministry of Communication and IT, Department of Telecommunication (“DoT”) license approves providing any telecom service (including voice, except Global Mobile Personal Communication by Satellite (GMPCS) Service) using any technology within the licensed areas. in October 2013. This Jio is the first telecom operator to hold a pan India Unified License. It holds 846.1 megahertz (MHz) of liberalised spectrum across 800MHz, 1800MHz and 2300MHz bands. Jio has entered into agreements with Reliance Communications Group (RCOM) for change in spectrum allotment in the 800MHz band from RCOM to Jio across 13 circles and sharing of spectrum in the 800MHz band across 21 circles (4 Circles are still awaiting regulatory approval). In addition to 2300MHz band, now Jio also has pan India spectrum in the 800MHz band. Jio is the only operator using sub-GHz spectrum band for LTE services in the country today. Jio plans to provide seamless 4G services using LTE technology in 800 MHz, 1800 MHz and 2300 MHz bands through an integrated ecosystem. This combined spectrum footprint across frequency bands provides significant network capacity and deep in- building coverage. KIRAN THOMAS JYOTINDRA THACKER JAGBIR SINGH ANISH SHAH “Jio has set up a next generation network which is amongst the best in the world. The network has advanced features such as Software Defined Networking (SDN) and Network Functions Virtualisation (NFV). It is ready for future evolution of technology including transition to 5G with minimal additional capital expenditure in the network. Jio’s key service objective is to provide anytime, anywhere access to innovative applications and high-speed internet services, thereby propelling India on to global leadership in the digital economy.” Readiness for Next Generation - Today NETWORK AND BUSINESS INFRASTRUCTURE Jio has set up a next generation network which is among the best in the world. The network has advanced features such as Software Defined Networking (SDN) and Network Functions Virtualisation (NFV). It is ready for future evolution of technology including transition to 5G with minimal additional capital expenditure in the network. Jio will have over 92,000 Evolved Node B (eNodeB) and over 1,00,000 small cells at launch, which is significantly more than what any other operator had at their launch. Fiber is the critical backbone on which a telecom service provider is able to provide high-end services to consumers. Jio has a network of over 2,50,000 route km of fibre optics cables for a full IP network. In addition to the fibre backhaul, extensive last mile fibre connectivity is being rolled out to address the fibre to the home potential. 96 Jio is also creating a multi-terabit capacity international network. Jio along with partners recently announced the launch of a new, state-of-the-art 8,100 km cable system, the Bay of Bengal Gateway (BBG). BBG provides direct connectivity to Southeast Asia and the Middle East, then onward to Europe, Africa and Far East Asia through seamless interconnection with existing cable systems. This strategically important undersea cable landing facility in Chennai, provides a high-speed, high-capacity and low latency route connecting India to the rest of the world. With respect to sales and distribution, Jio will have half-a-million activation outlets and close to a million recharge outlets at launch. This will be in addition to the digital channels that Jio is promoting for seamless activation and recharge facilities for customers. All outlets will have real-time access to the 1,072 Jio offices set up across the country. Jio has on-boarded most of these outlets and provided them merchant devices and/or solutions to cater to their business and payment requirements. Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.sold in India during Oct’15-Mar’16 have LTE capability and these are compatible with Jio networks. The next phase of growth is in Voice over LTE (VoLTE) devices, with more devices being launched. Jio has been actively involved in developing the ecosystem for India’s LTE phones, working with renowned Original Equipment Manufacturers (OEMs), Original Design Manufacturers (ODMs) and chipset vendors on end-to-end device design and engineering. With the launch of the LYF brand of devices by Reliance Retail Limited and several launches by other leading OEMs, it is expected that almost all the smartphones in the coming months will be LTE enabled, as has been observed in large markets such as China post the launch of LTE services there. Jio is ensuring the tight integration of these devices with its network infrastructure, platforms and applications portfolio to ensure seamless experience to customers. Jio’s deployment of LTE, Fiber-to-the-home (FTTH) and wireless fidelity (Wi-Fi) will make high-speed broadband access widely available to customers across India. This type of broadband access network offers high capacity, low latency services at an affordable price, a first for most Indian customers. Jio will enable IP-centric and content focused services, including VoLTE with the ability to offer rich, multimedia communication and digital services as well as high quality voice calling from and to other telecom networks and video calling as well. The Jio network is specifically designed to carry multimedia content, including music and video, thereby enabling a rich customer experience. In addition to LTE and its future versions, Jio 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. DIGITAL SERVICES LIFESTYLE APPLICATIONS (APP) Customers of Jio will have access to a large suite of digital services that will enrich their experience: MyJio – Gateway to Jio Apps JioPlay – Instant access to TV Programmes JioOnDemand – Entertainment at your fingertips JioBeats – Music for you. Anytime, Anywhere 97 Jio is present in all the 29 states of India with a direct physical presence in more than 18,000 urban and rural towns and over 1,50,000 villages. In addition to the network, Jio customers will have access to a large suite of digital services. These span across the areas of news, music, video, broadcast, communication, financial services, healthcare and education. These digital applications are being tested extensively as part of the trial launch programme. TECHNOLOGY FRAMEWORK - LTE Large-scale capacity expansion in mobile networks is required to meet the anticipated data explosion, and the trend globally has been to shift from Universal Mobile Telecommunications System (UMTS) to High Speed Packet Access (HSPA+) and now towards LTE to meet the increasing data requirements. Globally, the first LTE networks were launched in 2010 and since then there has been a rapid migration to LTE. LTE has been the fastest growing mobile technology ever. It offers superior performance at substantially lower effective cost, compared to other technologies and also has a well evolved ecosystem. Currently there are 503 commercially operational LTE networks in the world across 167 countries as per GSA (Global Mobile Suppliers Association). Jio is deploying LTE using both Time Division Duplex (LTE-TDD) and Frequency Division Duplex (LTE-FDD) technology to launch its wireless broadband services. DEVICES Globally, there are 5,614 (brands) devices announced by 455 suppliers that support LTE. Handsets with multiband, multimode support, are becoming the default offering. India is also not far behind. Close to 62 million out of 219 million smartphones currently in circulation are LTE enabled. Over 60% of smartphones GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and AnalysisJioMags – There is always more to read JioXpressNews – Stay Updated. Stay ahead JioChat – An efficient way to stay connected JioDrive – Your files are one touch away JioJoin – Make any phone VoLTE ready JioMoney – Experience cashfree living JioSecurity – Protect your phone, secure your data JioNews – Your News, Your language RECENT DEVELOPMENTS Jio has substantially completed the set up of its network across the country. It is currently being tested and optimised. Most of the business platforms have been rolled out and are being used to run operations. The organisation is in place with the required manpower hired and on-boarded. Currently, the services are being used extensively by employees, vendors, partners and associates as part of the successful trial launch, which has till date resulted in over 15 lakh customers on- boarded on the network. These test services were made available to all such users on a trial basis with a view to obtain feedback and progress towards a smooth and seamless commercial launch. The current average monthly data and voice consumption per user is in excess of 26GB and over 355 minutes respectively with rapidly increasing trends. The initial feedback is very encouraging and the quality of services are being highly appreciated by users. This test programme will be progressively upgraded into commercial operations in coming months. Jio has also undertaken extensive testing of technology, products and services being offered. The tests have been positive and have established smooth operations of all aspects of the network. Voice products, including VoLTE, work seamlessly. Jio has entered into inter-connect agreements with all the other telecom operators. Interconnection of voice calling across networks and across technologies works smoothly. Jio has been allotted Mobile Switching Centre (MSC) codes and various other network resources (such as Mobile Country Code (MCC) and Mobile Network Code (MNC), Signaling Point codes, Location routing numbers, etc.) by the DoT, which are required for provisioning of Mobile Access Services under Unified License, across all 22 circles. Jio has successfully demonstrated Lawful Intercept and Monitoring (LIM) facilities for LTE Data and Voice, Video and Messaging Services in all circles to DoT. Jio has also successfully completed Acceptance Testing of its network in all circles with DoT for Intra circle and Inter circle Mobile Number Portability. Post launch of the commercial services, Jio will play a significant role in lifting India from its current 155th rank in Internet penetration to amongst the top 10 nations in the world Lighting of lamp during employee Jio launch 98 Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.MEDIA AND ENTERTAINMENT “Network18 is driven by its zeal to provide consumers with the best-in-class media and entertainment products that set new benchmarks in creative excellence, fair journalism and audience engagement. Its business strategy is steered by its commitment to keep its viewers ahead in life. Network18 has packaged fascinating mix of TV channels and digital offerings that shall engage more deeply with viewers across genres, age groups and geographies, as they move towards a more exciting tomorrow.” RAHUL JOSHI `182 crore EBIT increased by 27.3% from FY 2014-15 A day in the life of newsroom 99 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and AnalysisSTRATEGIC ADVANTAGES AND COMPETITIVE STRENGTH Network18 Media and Investments Network18 is a media and entertainment powerhouse with its foothold in television, Internet, filmed entertainment, digital business, magazines, mobile content and allied businesses. Network18’s operating model is driven by its zeal to provide consumers with the best-in-class media and entertainment products that set new benchmarks in creative excellence, fair journalism and audience engagement. Consumer Engagement with a Diverse Content Platter International Collaboration Innovation With ground-breaking reality shows, innovative entertainment programs, and news shows Network18 has packaged facinating mix of TV channels, digital offerings and print publications for the younger and more aware customers. Network18 has forged partnerships with several leading global media players including Viacom in entertainment, CNN in English general news, CNBC in business news, A+E Networks in factual entertainment and Forbes in English magazine to provide the best-in-class media products. Network18 has been an early adopter of the latest technology with various ground breaking innovations. It also employs innovative marketing techniques, creative packaging of shows and customer data analytics to reach out to the consumer. Network Alliance Creation of New Platforms Agility Network18’s bouquet of 34 television channels offers a unique mix of national and regional channels, catering to diverse genres, digital content and commerce catering to wide range of interests and services. Its platform-agnostic approach to news and entertainment spans a holistic strategy that seeks not merely to address existing communities but in fact to create new ones. With the commitment to keep viewers ahead in life, Network18 offers the fastest news breaks, balanced opinions, enthralling entertainment and foot tapping music. People Development Network18 continuously recruits skilled professionals emphasising their develop- ment and skill enhancement for future challenges. MARKET ENVIRONMENT The year 2015 was a seminal year in many ways for the Media and Entertainment (M&E) industry. It saw a host of new services being launched and expanded, including OTT (Over the Top), Hindi and regional feeds on social media as well as significant original programming, with significant activity in the digital space. The Indian M&E industry is expected to reach `2,260 billion by 2020, from its estimated size of `1,157 billion in 2015 due to its large capacity to consume new products and businesses. (Source: KPMG in India analysis, 2016). GROWTH DRIVERS 1. Growth in socio-economic sectors 2. Growth in Regional Markets 3. Favourable policy initiatives such as: Digitising the cable distribution segment and granting industry status to the film industry. Increasing Foreign Direct Investment (FDI) limit from 74% to 100% in cable and Direct to Home (DTH) satellite platforms and from 26% to 49% in broadcasting of news channels. 100 THE INDIAN MEDIA AND ENTERTAINMENT SIZE (` Billion) . 2 2 4 5 . 9 4 7 4 . 2 7 1 4 . 4 3 8 2 . 4 3 6 2 . 1 3 4 2 . 3 5 2 1 . 4 6 2 1 . 2 8 3 1 6 9 . 8 59 . TV FILMS PRINT MUSIC 2013 2014 2015 Source: KPMG in India analysis, 2016 Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 4. Digitisation It is expected that by 2020, the ratio of digital cable subscribers to DTH subscribers will be 53:47, with 90 million digital cable subscribers and 79 million DTH subscribers. 5. 4G Rollout - The game changer 3rd Generation (3G) and 4G subscribers are likely to constitute 40% of the total wireless Internet subscriber base. Content viewing has already moved beyond television to mobile phones. This trend is going to only increase with 4G. 6. Rollout of Broadcast Audience Research Council (BARC) Television Audience Measurement India was replaced by BARC India in April, 2015. BARC India is the only government registered TV ratings service in India, which released individual viewer ratings in June 2015 and rural viewership data in October 2015. (TAM) FINANCIAL AND OPERATIONAL PERFORMANCE FINANCIAL OVERVIEW Network18 delivered a strong operating performance during FY 2015-16. The operating revenues on a consolidated basis stood at `3,403 crore, up by 8.8% from `3,127 crore in FY 2014-15. It continued to grow profitably, achieving an EBIT of `182 crore for FY 2015-16 consolidated, up by 27.3% from `143 crore in FY 2014-15. FINANCIAL PERFORMANCE Particulars FY 2015-16 (` in crore) FY 2014-15 (` in crore) % change Income from Operations 3,403 3,127 8.8% EBIT 182 143 27.3% OPERATIONAL OVERVIEW TELEVISION BUSINESS NEWS Business News constitutes CNBC TV18 and CNBC Awaaz – No.1 in English and Hindi business news genre respectively, and CNBC Bajar- first Gujarati business news channel. Highlights of the year: Launched ‘Did you know?’, ‘Gift a Prosperous Future’ conducted the first of its kind technology awards ‘Tech Guru Awards’ and the “Inside Series”. General News includes CNN News 18, IBN 7 and News 18 India. Highlights of the year: Launch of new shows-‘8 AM Express’, ‘The Morning News’, ‘In Your City’ and ‘Simply South’ in the morning primetime band, ‘Hum Toh Poochenge’, ‘Shabaash India’ and Leadership position CNBC TV18 and CNBC Awaaz are in the leadership position in their genres. ‘Khabron Mein Khaas’ and, a new crime show ‘Ishq-a violent love story’ in the evening band. Regional News includes ETV News Channels and IBN Lokmat. Highlights of the year: ETV News Odia was added. IBN Lokmat bagged the prestigious in Journalism Awards’. ‘Ramnath Goenka Excellence ENTERTAINMENT includes Colors which airs Hindi General Entertainment renowned shows like Rishtey, MTV India - the No.1 youth channel and MTV Indies-world’s largest platform for independent sub- cultures Highlights of the year: Launched FLYP@MTV, World’s 1st MTV themed café. English Entertainment has VH1- the No. 1 channel in its genre and Comedy Central - India’s 1st 24-hour English comedy channel. Highlights of the year: Colors Infinity was launched in July 2015. Kids Entertainment constitutes Nickeldeon - the No. 1 channel in the Kids category, Sonic, Nick Jr./Teen Nick and Nick HD+. Highlights for the year: On-ground events were carried out with internationally acclaimed shows such as ‘Dora the Explorer’, ‘Bubble Guppies’, ‘Go Diego Go’ which foster motor, memory, maths and language development in children. Nick HD+ was launched - 1st Kids High Definition (HD) Channel. Regional Entertainment In 2015, Network18 rebranded all its acquired ETV entertainment channels under the common umbrella brand of Colors, now operating in Kannada, Bangla, Marathi, Gujarati and Oriya, mirroring the cultural ethos and richness of the respective regions through unique content. 101 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis Factual Entertainment has History TV18. Highlights for the year: Launched one of the biggest local productions so far ‘OMG! Yeh Mera India’. Film Business includes Viacom18 Motion Pictures. Highlights for the year: Credited with shaping the new Indian film industry through differentiated and concept driven movies. DIGITAL BUSINESS Digital Content includes Moneycontrol.com - Leader in the finance category, Firstpost.com - India’s first and the biggest digital-only newsroom, IBNLive.com and Pradesh18.com. Highlights for the year: VOOT was launched in March, 2016 as Viacom18’s exclusive digital video destination. Digital Commerce includes HomeShop 18 and Bookmyshow. Highlights for the year: HomeShop18 has been acclaimed as the ‘Trend Setter in Shopping Channels’ at the 7th BCS Ratna Awards in March, 2016. Bookmyshow launched its own wallet to enhance customer experience and reach out to cash customers. PRINT/PUBLICATION BUSINESS Has a set of highly reputed publications comprising ‘Forbes India’, ‘Overdrive’, ‘Better Photography’ and ‘Better Interiors’. Highlights for the year: Launched ‘The Super 50’ and ‘The Southern Giants’ lists. GROWTH PLAN India’s M&E industry is on the brink of a new era of transformation and growth riding the digitisation of television distribution, growth of regional media and entertainment business and fast emerging new media businesses. Based on data available from BARC India, Network18 aims to realign itself to consumer preferences and improve its content delivery system. The coming year will see a slew of initiatives to strengthen existing verticals and launch new products across languages and demographics including a responsive, mobile-first design to enhance user experience and increase stickiness. INNOVATION New android and MoneyControl.com, First Post and Overdrive. iOS applications were launched for MTV India launched FLYP@MTV, the world’s 1st MTV themed cafe, in Delhi in December 2015. The cafe has several distinctive features such as exclusive menu curated by celebrity chef Ranveer Brar, Talent Record Rooms, Shower Rooms/Lockers and live performances. 102 Launched Theme Cafe FLYP@MTV, World’s 1st MTV themed cafe. Firstpost.com was one of the first publications to go on the Google Accelerated Mobile Pages (AMP) platform. Quick adaption to FacebookLive, Instant Articles and making its content available across a host of aggregator applications are some of the other innovative steps undertaken. CORPORATE SOCIAL RESPONSIBILITY At Network18, CSR is embedded in the long-term business strategy of the Company. The business priorities co-exist with social commitments to drive holistic development of people and communities. It seeks to touch and transform people’s lives by promoting healthcare and education and deepen its social engagements. CNN-News18 raised awareness through its social campaigns like #GoodSamaritans (Helping accident victims) and #GiveItUp (LPG subsidy). IBN-Lokmat also raised burning issues through high impact campaigns - “Mumbai Monsoon Campaign”, “Road Safety Campaign” and campaign on water crisis in the Marathwada region among others. Nickelodeon’s “Together for Good” campaign engaged and empowered kids to do their bit to keep their surroundings clean. Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.LIQUIDITY AND CAPITAL RESOURCES “Reliance continues to be the path breaker in accessing new markets and structures to optimise resource costs. Backed by strong cash-flows, a robust balance sheet and in some cases ECA (sovereign) wraparound, Reliance has raised capital at lower rates and longer tenures than any company in India. The Company’s financial strength is a reflection of its robust cash flows, strong relationships with Banks, Financial Institutions and ECAs and deep commitment to create value for all investors.” SRIKANTH VENKATACHARI SOUMYO DUTTA FINANCING STRATEGY RIL believes in delivering superior shareholder value. RIL has proven track record of successfully executing growth projects which have delivered substantial and sustainable shareholder returns over the years. RIL’s diversified sources of funding, its access to capital markets across the globe and strong operating cash flows enables it to maintain requisite capital structure discipline. RIL’s financing strategy ensures that capital expenditure projects are sufficiently funded in advance at all times to meet the overall objective of long-term shareholder value creation. RIL diversifies its capital structure with a mix of instrument classes and financing products across varying maturities and currencies. The financing products include Export Credit Agency (ECA) backed facilities, syndicated and bilateral loans and bonds. RIL taps domestic as well as foreign debt markets from time to time to ensure appropriate funding mix. RIL enjoys superior credit profile and strong relationship with more than 100 banks and financial institutions facilitating it to tie-up financing at competitive rates. RIL has one of the largest number of active Organisation for Economic Co-operation and Development (OECD) ECA relationships globally for any corporate. RIL’s debt portfolio is continuously monitored to explore and capture opportunities to optimise cost of servicing as well as to elongate the average maturity and manage overall associated risks. FACILITIES FROM ECA AND OTHER SYNDICATED FOREIGN CURRENCY LOANS During FY 2015-16, RIL successfully re-priced/ refinanced long- term debt facilities aggregating to US$4.87 billion resulting in substantial interest savings over the remaining life of these loans. Sr. No. 1) Nature of Facility Repriced ECA-backed facilities from Compagnie Française d’assurance pour le Commerce Extérieur (COFACE), Euler Hermes, Export Development Canada (EDC), and UK Export Finance (UKEF) US$ in billion 2.20 2) Refinanced Syndicated Loans 2.67 The first ever Formosa Bond issuance by an energy Company globally and the longest tenure issuance by a corporate out of Asia FORMOSA BOND ISSUANCE - REGULATION S OFFERING During FY 2015-16, RIL priced Regulation S offering of US$200 million 5% Senior Unsecured Callable Notes due 2035. These notes, denominated in US dollar were issued primarily to Taiwanese life insurance companies and listed on the Taipei Exchange. Such notes are commonly known as Formosa Bonds. This issuance was the first ever Formosa Bond issuance by an energy Company globally and the longest tenure Formosa Bond issuance by a corporate out of Asia. RIL is the only Indian Company to have issued Formosa Bonds. 103 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and AnalysisThe first private sector energy Company, globally, to issue notes guaranteed by the Export-Import Bank of the United States (“Ex-Im Bank”) US EXIM BANK GUARANTEED NOTES During FY 2015-16, RIL became the first private sector energy Company globally to issue notes guaranteed by the Export- Import Bank of the United States (“Exim Bank”). This is also the first ever such issuance out of India. In August 2015, RIL priced US$225 million 2.512% Exim Bank guaranteed notes due 2026. Further, in March, 2016, RIL priced US$190.7 million 2.060% Exim Bank guaranteed notes due 2026. The proceeds of these fixed rate notes replaced the Exim Bank guaranteed floating rate loan. Thus, these notes replaced a floating rate liability with a fixed rate liability. FINANCING IN SUBSIDIARIES During FY 2015-16, Jio tied up financing from its shareholders, banks and other institutions in INR as well as in foreign currencies aggregating over `31,000 crore, to part finance the capital expenditure. Out of this, funds aggregating over `28,000 crore were raised during the year. In May 2015, Jio tied up US$750 million Korea Trade Insurance Corporation (K-Sure) supported ECA financing. This facility has an availability period of two years and a door-to-door tenure of twelve years. This transaction was the largest financing transaction globally in the telecom sector supported by K-Sure as well as the longest tenure telecom financing supported by K-Sure. In addition to the foreign currency financing, Jio issued secured INR non-convertible debentures aggregating to long-term `7,500 crore comprising `4,500 crore debentures with maturity of three years and `3,000 crore debentures with average maturity of 9 years. Jio also raised INR unsecured loans of `2,000 crore with maturity of 3 years. As on date of balance sheet, Jio has outstanding long-term borrowings of `30,617 crore and short-term borrowings of `2,570 crore. Apart from tying up debt financing from multiple financial institutions, Jio successfully raised `15,000 crore from its existing equity shareholders on rights basis to further strengthen its capital structure and support ongoing capital expenditure. 104 CAPITAL RESOURCES During FY 2015-16, RIL and its subsidiaries tied up facilities across various financing products and maturities. The below table shows debt levels and related ratios for the year ended March, 2016 and March, 2015 for RIL on a consolidated basis. Particulars 31st March, 2016 31st March, 2015 Cash and marketable securities (` in crore) Gross debt (` in crore) Net debt (` in crore) Gross debt to equity ratio Net debt to equity ratio Net gearing (%) 86,033 1,81,079 95,046 0.74 0.39 26.8% 84,472 1,60,860 76,388 0.74 0.35 24.6% RIL’s consolidated net debt level has increased during the year, as it drew down on funding to finance the ongoing capital expenditure for its refining, petrochemical and telecom businesses. CREDIT RATING RIL’s financial discipline and prudence is reflected in the strong credit ratings ascribed by rating agencies. The below table depicts RIL credit ratings profile in a nutshell: Instrument Rating Agency Rating Outlook Remarks International debt S&P BBB+ Stable International debt Moody's Baa2 Stable Long-term debt CRISIL CRISIL AAA Stable Long-term debt India Rating Ind AAA Stable Two notches above India’s sovereign rating One notch above India’s sovereign rating Highest rating awarded by CRISIL Highest rating awarded by India Rating Ratings Definitions: S&P BBB+: An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. Moody’s Baa2: Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative characteristics. CRISIL AAA: Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk. Ind AAA: Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligation. Such instruments carry lowest credit risk. Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.LIQUIDITY AND TREASURY MANAGEMENT RIL has strong focus on effective management of its liquidity to ensure that all business and financial commitments are met on time through all business cycles. RIL’s sources of liquidity includes operating cash flows, cash and cash equivalents, committed fund and non-fund based lines from banks and high quality liquid investment portfolio of diversified asset classes. The working capital requirement across the group is fulfilled with active management of receivables and inventories, effective use of trade finance instruments and leveraging operating cash flows across segments. The “cash to cash cycle” is tightly monitored in order to have smooth and continuous business operations with optimal working capital structure. RIL effectively manages its cash and cash equivalents through a diversified investment portfolio which has an appropriate mix of steady accrual, tax efficient and higher duration assets with lower reinvestment risk. The portfolio consists of wide ranging fixed income instruments, viz:, Government securities, corporate bonds, top rated mutual fund investments and bank fixed deposits. A substantial portfolio is invested in top rated instruments like sovereign bonds, AAA papers and bank’s fixed deposits. The diversification across instruments and counterparties ensures that there is minimal concentration risk. The investment portfolio is monitored and operated under a robust risk management framework with a very nimble and dynamic adjustment to portfolio mix as and when necessary to ensure capital protection and appropriate risk adjusted returns. AWARDS AND ACCOLADES During FY 2015-16, RIL and its subsidiaries won the following awards for its innovative financing – 1 4 7 “ISSUER OF THE YEAR” AWARD FOR 2015 FROM IFR ASIA. 2 “BEST CORPORATE ISSUER - 2015“ FROM THE ASSET. “BEST EXPORT FINANCE BORROWER –GLOBAL” VOTED BY TRADE AND EXPORT FINANCE (TXF). “BEST ASIA PACIFIC ECA FINANCE DEAL OF THE YEAR” FROM TXF FOR JIO US$750 MILLION K-SURE BACKED FINANCING. 5 8 “BEST PETROCHEMICAL DEAL” FROM THE ASSET FOR US$550 MILLION JBIC BACKED FINANCING. “TOP 6 ECA DEALS OF THE YEAR” IN 2015 BY TRADE AND FORFAITING REVIEW (TFR) FOR JIO US$750 MILLION K-SURE BACKED FINANCING. 3 6 9 “PROJECT SPONSOR OF THE YEAR - 2015“ FROM THE ASSET. “BEST SYNDICATED LOAN OF THE YEAR” AWARD FROM THE ASSET AS WELL AS ASIA PACIFIC LOAN MARKET ASSOCIATION (APLMA) FOR US$1.5 BILLION SYNDICATED LOAN REFINANCING. “DEAL OF THE YEAR 2015” BY TRADE FINANCE MAGAZINE, A EUROMONEY PUBLICATION FOR JIO US$750 MILLION K-SURE BACKED FINANCING. 10 “BEST TELECOM DEAL” AWARD FROM THE ASSET FOR JIO US$750 MILLION K-EXIM BACKED FINANCING TIED UP IN FY 2014-15. 105 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis SUSTAINABLE GROWTH AT RELIANCE The way RIL conducts its business has evolved over the decades both at the individual and group level. Reliance has reached up to this scale on the strength of 3 enablers, which enables it to sustain its growth momentum, reinforcing Reliance’s fundamental philosophy – ‘Growth is Life’. These enablers are: A. B. C. A Strategic Framework which ensures that the business model meets the objectives of all stakeholders Focus on 5P’s which ensures an all-inclusive growth 1. Planet 2. People 3. Products and Processes Prosperity (Profit) 4. Peace and Partnerships 5. Risk and Governance 1. An Enterprise Risk Management Framework which ensures mitigation of strategic risk while seamlessly governing the execution of operations Smart Transformation at Reliance (STAR) which ensures the institutionalisation of Reliance’s DNA through continuous reinvention, for the next level of growth 2. A. STRATEGIC FRAMEWORK AT RELIANCE Reliance’s Group Strategic Framework sets out its strategy, financial framework and risk management. Group Strategic Framework establishes the goals of Reliance. It also describes the strategic intent of Reliance and the expectations and boundaries within which each of its businesses must operate. It provides guidance for each of the businesses - both established and emerging. The Group Strategic Framework ensures the business model, business strategy and operating models comprehensively address each component of Reliance’s Group Strategy and remain bound by it. It improves alignment between each of the businesses and the group. that Refer page no. 24-25 of Corporate Overview for the quick view into the strategic framework and outcome of Reliance. B. GROWING RESPONSIBLY - 5P’S (PLANET, PEOPLE, PRODUCTS AND PROCESSES, PROSPERITY (PROFIT) AND PEACE AND PARTNERSHIPS) - AN INTEGRATED APPROACH TOWARDS SUSTAINABLE GROWTH Integrated approach brings together the financial and non- financial value drivers which are essential contributors to Reliance’s success. This multifaceted approach is an attempt to report on economic, environmental and social parameters - in a manner that can help stakeholders to understand how the Group creates and sustains value over the long-term. The Company has expanded its classic 4P growth approach to include Peace and Partnerships, in line with the United Nation’s 2030 Agenda for Sustainable Development. The Sustainable Development Goals set out by the United Nations have been interwoven within the 5P’s growth model, which focus on the following: Planet People Products and Processes Prosperity (Profit) Peace and Partnerships RIL has been publishing Annual Sustainability Reports since FY 2004-05 as per the Global Reporting Initiative (GRI) guidelines. The reports were externally assured with an A+ rating indicating highest level of comprehensive disclosures. RIL is also a member of World Business Council of Sustainable Development (WBCSD) and Global Reporting Initiatives (GRI). WBCSD’s ‘Reporting matters’ has recognised RIL’s sustainability report as leading example on aspect of reliability. 106 Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 1. PLANET PAWAN KUMAR KAPIL PAR SINGH SURINDER SAINI “Reliance lives by its vision of creating value through sustainable measures and ensures that the ethos of environmental conservation are a part of its operational philosophy. Every location works towards minimising its environmental footprint and thereby creating a sustainable harmony with the ecosystem that it operates in.” Reliance continues to meet the growing energy demand, while working towards minimising the environmental footprint of its ongoing operations, as well as future projects. This year, more focused approach for sustainability initiatives is undertaken along with large awareness drives. sites have adopted CONTINUOUS IMPROVEMENT - MINIMISING ENVIRONMENTAL FOOTPRINT All manufacturing ‘Integrated Management System’ complying with Environment (ISO- 14001), Quality (ISO-9001) and Occupational Health and Safety Management System (OHSAS-18001). All newly commissioned plants are also being included under the Integrated Management System at the sites. In the Company’s drive towards achieving environmental excellence, efforts continue to establish environmental best practices at all the manufacturing sites. A dedicated ‘Environmental Compliance Review Committee’ at each manufacturing site periodically reviews compliance status and provides further guidance as necessary. This was complemented by an environmental compliance audit process conducted at each manufacturing site during the year. Initiatives footprint include: implemented to reduce the environmental plants State-of-the-art commissioned to completely recycle the effluent generated from the new plants. treatment effluent Co-processing of waste generated as fuel in cement kilns has been initiated. A recycling plant of 65 tonnes per day capacity is operational for recycling used PET bottles. A project commissioned this year to capture CO2 emission from MEG / EO production process. On-line emission analysers are being installed in most of the stacks. Similar actions have been taken to monitor and report the treated effluent quality on-line. During the year, significant efforts have resulted in improvement of the following environmental parameters at manufacturing indicated below. The parameters indicate percentage change in absolute total values compared to previous year in spite of the increase in production and commissioning of new projects. location, as Improvement in FY 2015-16 over FY 2014-15 Reduction in total GHG emissions per tonne of product by 2.4% Reduction in TPM emissions by 0.1%. Reduction of SOx emissions by 12.4% Increase in water recycling by 4.7% Increase in material recycled by 14% For more details please refer to the Sustainability Report http://www.ril.com/Sustainability/CorporateSustainability.aspx 107 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis TOTAL GHG EMISSIONS AT MANUFACTURING LOCATIONS TPM EMISSIONS AT MANUFACTURING LOCATIONS SOX EMISSIONS AT MANUFACTURING LOCATIONS WATER RECYCLED AT MANUFACTURING LOCATIONS TOTAL RECYCLED MATERIALS AT MANUFACTURING LOCATIONS (tCO2e/Tonnes) (000’ tonnes per year) (000’ tonnes per year) (000’ CuM) (000’ tonnes per year) 9 2 0 . 8 2 0 . 1 9 2 . 0 9 2 . 5 2 0 1 . 8 9 8 . . 1 9 7 7 4 0 6 , . 7 5 9 1 3 3 6 , . 3 0 2 8 . 9 9 1 7 5 1 - 4 1 0 2 Y F 6 1 - 5 1 0 2 Y F 5 1 - 4 1 0 2 Y F 6 1 - 5 1 0 2 Y F 5 1 - 4 1 0 2 Y F 6 1 - 5 1 0 2 Y F 5 1 - 4 1 0 2 Y F 6 1 - 5 1 0 2 Y F 5 1 - 4 1 0 2 Y F 6 1 - 5 1 0 2 Y F As a part of continuous improvement, various energy efficiency initiatives were undertaken during the year which include: Enhanced heat recovery by revamping of air preheaters to recover more energy from flue gases; Improved heat rate by uprating Gas Turbines; Installation of advanced technologies like Divided Wall Column (DWC); Optimum utilisation of fuel for steam and power generation using ProSteam Optimiser, an on-line power and steam optimisation tool working on advisory mode that has now been made available to all petchem and refinery sites; INCULCATING ‘CARE FOR ENVIRONMENT AMONG STAKEHOLDERS’ Reliance ensures that its commitment towards environmental protection is extended to all its stakeholders. The Company makes continuous efforts to ensure that its supplier partners adhere to and comply with the principles of: 1. Compliance with laws and regulations 2. Labour and human rights standards 3. Occupational health and safety 4. Environmental protection and conservation 5. Protection of confidentiality and intellectual property 6. Business integrity Innovative projects exchangers to utilise low pressure steam; like steam-to-steam heat Reliance’s wide energy Dashboard to enable easy access to energy performance on the fly, including equipment level performance monitoring system. At Reliance, as a culture, ‘World Environment Day’, ‘Earth Day’, ‘International Day for the Preservation of the Ozone Layer’ and ‘World Water Day’ are celebrated. At RIL’s Jamnagar location, a total of 2,581 acres of greenbelt has been developed. 108 like steps through various Reliance has been working relentlessly towards supplier supplier management evaluation, managing supplier database, segmentation, stakeholder mapping, supplier performance, supplier development and supplier collaboration. Reliance is also in a process of implementing various initiatives like green packaging/ 3R’s, supplier partnering, contract worker care, business to local community, training and skill development and supplier development among other initiatives. RIL’s sustainable sourcing procedures focus on: world class supplier base, contractor care, responsible care, development of India’s engineering talent, innovation Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. through supplier collaboration, green packaging and managing human rights across the supply chain. the development PROMOTING USE OF ECO-FRIENDLY FUELS Reliance works and towards implementation of climate change mitigation projects. This is primarily done through energy efficiency initiatives at all the manufacturing sites (as listed in the Director’s report page no. 226), where use of cleaner fuels and renewable energy has been adopted. During the year, Reliance has initiated several activities for the 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. Site Name CDM projects Jamnagar Hazira Vadodara Barabanki Khinwsar Dahej Patalganga Allahabad Reduction in steam consumption in stripper re-boiler through process optimisation Energy efficiency through steam optimisa- tion Energy efficiency through heat recovery Biomass based process steam generation Solar power generation Demand side energy conservation and reduction Demand side energy efficiency projects Improvement in energy efficiency of steam generation and power consumption CLEAN DEVELOPMENT MECHANISM (CDM) RIL has registered a number of CDM projects with the United Nations Framework Convention on Climate Change (UNFCCC) as listed below: SPILL PREVENTION RIL has robust systems to prevent operational spills. There have not been any significant spills at RIL facilities during the FY 2015-16. 2. PEOPLE “In pursuit of its ambition to create a progressive people environment, Reliance undertook a 24-months HR Transformation journey in 2014. The organisation is fast evolving to provide its employees a steep learning curve and fast paced professional and personal development avenues while maintaining the highest standards of workplace ethics and encouraging diversity and inclusion. Leveraging technology, it digitised the People Management System.” HITAL R. MESWANI ASHWANI PRASHARA At Reliance, success of the organisation is believed to be truly driven by its ‘People’. People are Reliance’s most valuable assets. Reliance is dedicated to ensure that people realise their full potential at work with dignity, equality and in a healthy environment. Reliance fosters a culture that is performance oriented, promotes reward for results and helps its people grow. Reliance’s values and behaviours have instilled a deeper sense of connect and engagement for its people. HR VISION: “A modern, progressive people environment, where purpose driven talent is attracted, engaged, motivated by a consistent meritocratic HR framework and where high quality leaders capable of realising RIL business goals are identified, encouraged and rewarded.” HR TRANSFORMATION JOURNEY RIL embarked upon the ‘R-HR’ Transformation journey in 2014 to create world class HR practices. The Company aims at continuing excellence and being an Employer of Choice. RIL wishes to inspire highly talented professionals to join and grow with the Company. R-HR Transformation was a 24-months agenda and driven through four waves of transformation. These have set a strong foundation for the Company to create greater transparency, empowerment and meritocracy for people practices. Wave 1 included setting and rolling out foundational processes for putting structured position grading, a new- age HR operating model and a renewed performance management process. Wave 2 focused on strengthening 109 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis talent management processes, driving succession planning and Career Acceleration Programme (CAP) for internal young talent. Wave 3 was focused upon building enhanced resourcing capabilities for internal and external talent and a superior candidate experience. During FY 2015-16, Reliance launched Wave 4 of the R-HR Transformation journey which drives the strategic HR TRANSFORMATION WAVES organisational capabilities around leadership development and establishing an enterprise wide learning and governance framework for employees. With the spirit of continuous excellence, RIL has now further set its goals to digitise the People Management System (PMS), leveraging latest technology interventions. Wave 3 Wave 2 Wave 1 t n e m r e w o p m E - R Careers Talent Management R-Performance R-Reward R-Grading HR Model IT Framework R-HR Transformation Journey Learning & Leadership Development Wave 4 t n e m r e w o p m E - R HUMAN RESOURCES - GOVERNANCE, INTEGRATION, RISK AND ASSURANCE At Reliance, ‘Human Resource - Governance, Integration, Risk and Assurance’ team has been formed under the stewardship of newly constituted RMS Framework. This team would enable Human Resource function to strengthen overall HR functioning and raise the bar of excellence in people policies, practices, systems, data and organisation. The team is strategically driving key people focused transformational initiatives across Reliance and is responsible for driving a mature governance and management assurance process. HEALTH AND WELLBEING Reliance focuses on achieving excellence in health and wellness initiatives which in turn enhance the health status of stakeholders. Reliance management philosophy is “One Reliance, Healthy Reliance!” Reliance has implemented an unique initiative, ‘REFERS’ (Reliance Employee and Family Emergency Response Services) which offers 24x7 assistance 110 Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. in case of any medical, accident, fire and securities exigencies for employees and their family members. In addition, emergency medical services are provided to Reliance employees and their family members 24x7 across the country through strategic tie–ups with multi-speciality hospitals. Reliance has designed a unique mobile application, ‘R-Health’, which features emergency contact numbers of all empanelled hospitals, ambulances and contact persons and emergency coordinators in each location. Additional information on medical records, health dewdrops and blood donor searches are also available on the app. RIL’s efforts in the field of health and well-being has been recognised by highly reputed agencies including the Joint International (JCI), National Accreditation Commission Board for Hospitals, and National Accreditation Board for Laboratories etc. Health and Safety at work dimension within the ‘Employee Engagement Framework’ achieved a score of 93%, which is 8% more than the Kanexa Global Standard. During the FY 2015-16, RIL invested `337.31 crore on Health, Safety and Environment initiatives. Reliance 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 state-of-the- art facilities. To achieve this, Reliance has set up world- class occupational and family welfare centres, follows international HSE best practices at all manufacturing, E&P locations and major office complexes. The Company’s medical and occupational health departments focus extensively on the prevention. Health awareness programs are the integral part of Reliance’s Wellness initiatives, specially focusing on prevention of life style diseases such as hypertension, diabetes, etc. and also work life balance and specialised programs for women’s health. Across the locations, health awareness is created through vitality fair, yoga workshop, tool box talk at shop floor, and health tips, among others. SAFETY RIL targets zero injuries and incidents. The Operating Management System (OMS) is a framework to deliver and sustain conformance to the essentials, followed by excellence, in operating activities and processes. The OMS provides a systematic and consistent approach for reducing Health, Safety, Security and Environment (HSSE) risks in operating activities. Delivering safe, compliant and reliable operations will lead to sustainable competitive advantage. In order to achieve the goal, Reliance requires improvements in all aspects of the Elements of Operating, i.e., plant, process, people and performance. The Group Essentials (GE) outlines the risk mitigation strategies, legal and regulatory compliances, RIL’s conformance with the requirements and a rigorous application of basic operations knowledge. It also creates a platform for sustainable improvement, allowing Reliance to capture additional value through efficiency and sustaining excellence in operating. Reliance conducts its operations considering safety of its employees, suppliers and vendors, as well as communities in which Reliance operates. A fully equipped and well- qualified HSE organisation is in place at all locations providing necessary governance, documentation and HSE assurance. To support its HSE organisation, Reliance is backed by a Centre of Excellence at the Corporate, which brings in subject matter expertise in various fields of HSE, apart from governance. CRISIS MANAGEMENT AND EMERGENCY RESPONSE Reliance aims to guard against potential risks which could harm people or disrupt the operations. Crisis management and Emergency response plays significant role in achieving this objective as early response can reduce the consequence. In order to strengthen the emergency response capabilities, assessment of emergency management plans and training on execution of command and control was conducted at various manufacturing sites. Regular alerts on natural 2,581 acres of Greenbelt at Jamnagar 111 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis disasters like Tsunamis are also received from Indian Tsunami Early Warning Centre (ITEWC), Hyderabad. SAFETY AUDITS In FY 2015-16, the process of first and second party audits continued at all sites. The audit schedule was published at the beginning of the year and different audits were conducted during the year such as: Process Safety Management, Workplace Safety Management including Electrical safety, Fire Safety Management, Highly Toxic Material Management, Contractor Safety Management, Environment Management and Distribution Safety Management. The audit findings were presented to the Board of Directors and actions were taken to further improve safety parameters. Employee health and safety at work dimension within the ‘employee engagement framework’ is at 93%, which is 8% higher than Kenexa global standards. NURTURING AND MANAGING TALENT Reliance has now instituted sustainable practices to identify and develop high calibre talent who will lead Reliance on its next growth path into the future. Over the last 2 years, Reliance has changed the way it looks at its internal talent development and external hiring. Wave 4, which is part of the HR Transformation journey, has helped Reliance move to an integrated learning architecture that enables the Company to focus its learning investment on developing the technical, functional and leadership capabilities needed to drive future business growth. Wave 4 aligns all Reliance’s learning to strategic priorities through a single learning entity called R-University. A key pillar of the learning strategy is the democratisation, digitisation and fostering of a learning culture across Reliance. Reliance is using e-learning, social, collaborative and other technology platforms as enablement tools. Learning opportunities are available on a cloud-based learning management system so that employees are able to access learning content anywhere, anytime. Reliance has also formed multiple partnerships, e.g., Bersin by Deloitte, Skillsoft and Corporate Executive Board to keep the learning content and approach current. To strengthen the leadership bench strength, Reliance has built an integrated transition programme for Reliance leaders along with globally renowned partners such as Duke CE. These ‘Step-up Programs’ have been launched to assure the development 112 of leaders to assume next level leadership roles. Reliance introduced a Career Acceleration Programme (CAP) in order to strengthen leadership skills amongst employees. Learning at Reliance has been provided a directional push towards a fully enabling and seamless learning experience. Focus has moved from mass training programs to customised programs and also availability of learning at the point of need of individual’s career development. Upgradation of physical learning infrastructure and virtual learning infrastructure across locations and sites will help Reliance in creating a standardised learning environment. R-University’s three-tier governance structure (Group Learning Council, R-University Council and Academy Council) and process optimisation have further integrated the learning landscape along with bringing increased transparency and business alignment to learning. The initiatives aim to place the learner at the center of the learning process. Training courses have been divided into mandatory and non-mandatory categories based on the training content and learner’s current role. There has been enhanced focus on compliance training and many of these trainings are available for all Reliance employees through e-learning modules. RIL imparted more than 15 lakh man-hours of training to its people, both through internal and external subject matter experts in FY 2015-16. A significant number of employees were trained on health, safety and environment for more than 7.5 lakh man-hours. Other than permanent employees, contract staffs were also covered through various training programs by providing more than 3.5 lakh man-hours of training. CONTINUOUS IMPROVEMENT METHODOLOGIES Reliance strives to embed a culture of Continuous Improvement (CI) activities in its DNA. As a result, different skills of the Six Sigma methodology including DMAIC, Lean, Design for Six Sigma and Innovation have been imparted to the employees. As a part of implementation of Operation Management System (OMS), new waves have been started to achieve higher levels of operational excellence and it is structured as CI-7 Step methodology for Exemplar Projects to improve different processes, based on identification of gap against Reliance’s OMS requirement. A web based portal called “Continuous Improvement Portal” (CI-Portal) has been developed where CI projects are entered and executed within the system. A total 74 projects with expected contribution gain of around `77 crore are in progress through this CI-portal. Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.  DIVERSITY AND INCLUSION Diversity and Inclusion There has been an 12% increase in number of women employees over the last 5 years (FY 2011-2016) as compared to a 5% increase in the men employees. Women in Leadership Positions RIL has 16 female professionals occupying key Leadership positions in RIL. RIL provides focused mentoring to women professionals to promote their career growth in leadership positions. Age Demographics of Employees 52 46 37 38 Senior Level Leader First Level Leader Professional Level Individual Contributor Average age of employees Employee Diversity RIL has 80 differently abled employees working with the Company which adds significance to its overall diversity objective. Reliance focuses on three aspects of diversity: gender diversity, multigenerational diversity and inclusivity. Reliance promotes equal opportunity for all its employees. The Company believes in equality irrespective of gender, sexual orientation, disability, caste, religion or age. Employee strength as on 31st March, 2016 for RIL is 24,121 which includes 1,238 female employees. RIL is one of the foremost companies to allow women professionals in shift operations. The Company’s endeavour is to make Reliance the “most admired brand” through inclusive excellence. RIL today employs people from 19 different nationalities adding to its diverse employee base. RIL has 40 foreign national employees in the leadership cadre. improve Over the years, the Company has tried to its multigenerational diversity as well. The Company demographics is moving towards younger population and average age of RIL employee stands at 41 years. R-AADYA INITIATIVE: EMPOWERING WOMEN TO EMPOWER INDIA “R-Aadya Awaken the Senses” is the flagship gender diversity initiative designed to help Reliance’s women employees navigate through their careers. The programme leadership is designed to give them opportunities through the 4 pillars of the programme which include providing mentorship and conversations, conferences and trainings and workshops (Classroom and E-learnings). R-Aadya, with about 30 women executives is making excellent progress with its active participation as well as support from mentors in the organisation. interactions, forums Under the R-Aadya mobile app, the Company has launched a feature through which women can send a distress call or emergency message to a specified contact or group in an emergency situation. The Company’s monthly magazine – ‘WOW – Reliance World of Women’ talks about the stories and accomplishments of the Company’s women employees and other initiatives. CAMPUS MARQUEE PROGRAM RIL’s annual intake of Management trainees through its Campus Marquee Programme from premier institutes is one of the highest in the country along with a strong internship process which brings a rich pool of young talent into the Company. Ultimate Pitch: The Ultimate Pitch has been launched as an annual B-School – Business Plan competition at premier institutes and the final shortlisted teams are provided mentoring towards their entrepreneurial aspirations. 113 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis The champions of Ultimate Pitch 2016 receiving the award The highlight of the Grand Finale of ultimate pitch was that all 12 Finalist teams got a chance for a unique interaction with Chairman and MD Shri. Mukesh D. Ambani. EMPLOYEE ENGAGEMENT RIL conducts a global engagement survey wherein all employees participate in complete confidentiality through an independent survey conducted by IBM Kenexa. The overall employee engagement scores have gone up substantially as a result of transformation initiatives. The Company constantly works on feedback and ensures that improvements are made both at an organisational and manager level and communicated back to its employees. Leadership support dimension is at 84% which is 9% higher than Kenexa Global standard. STAKEHOLDER ENGAGEMENT Reliance’s relationships with all its stakeholders have a direct and indirect impact on their business activities and reputation. RIL has identified eight key stakeholders (Investors and Shareholders, Employees, Customers, Suppliers, Trade unions, Government and Regulatory authorities, Local community and NGOs) with whom the Company discusses common solutions through strategic dialogues. The Company proactively engages with its 114 stakeholders in order to inform them of its business strategy and operations, shape their products and services, manage and respond to social expectations and improve the environment in which RIL conducts its business. ETHICS AND HUMAN RIGHTS All Reliance employees, suppliers and vendors are required to respect human rights of not only each other, but also of the community in which Reliance operates. Ethics and Compliance Task Force oversees and monitors implementation of ethics and compliance within Reliance. It comprises of the Reliance Group Head of HR, General Counsel, Group Controller and Group Company Secretary. All the Company’s units maintain 100% compliance with local and national laws, regarding ethics and human rights. Reliance also takes into account global standards and the Company strives to comply with all global norms on human rights, including the principles outlined in the United Nation’s Universal Declaration of Human Rights. All employees are exposed to these topics through organised training programmes. 100% of its non-supervisory permanent employees at its manufacturing locations are covered under collective bargaining agreements with trade unions which also comply with the local and national laws. Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 3. PRODUCTS AND PROCESSES Sustainable growth is an ongoing process, which requires a transformational vision as well as adaptation to rapidly- evolving products and processes. Reliance’s Innovation Council provides vision to innovation efforts at the level. Through R&D, novel products and organisation improve profitability and processes are developed to sustainability at Reliance. INNOVATION, RESEARCH AND TECHNOLOGY INNOVATION At Reliance, innovation is a way of life that allows the Company to create real, sustainable value for all its stakeholders. With this in mind, the Reliance Innovation Council (RIC), a unique corporate entity, was established in 2008. These global thought leaders and iconic personalities fold the future in and lay out an innovation agenda for the organisation. Mr. Mukesh D. Ambani, Chairman and Managing Director of Reliance, is also an RIC member. Besides being on many prestigious boards, he was recently elected a Foreign Member of the prestigious US National Academy of Engineering. Dr. Raghunath A. Mashelkar is the Chairman of the RIC, an eminent scientist and the President of Global Research Alliance. For his various contributions to India, he has been INVESTING IN RESEARCH AND TECHNOLOGY honoured with Padma Vibhushan, the second highest civilian honour bestowed in India. Prof. George M. Whitesides is a Professor at Harvard University and the world’s foremost chemist. He is also a co-founder of companies with a combined market capitalisation of over US$30 billion. Prof. Jean-Marie Lehn is a professor at the Collège de France in Paris, who was awarded the Nobel Prize in Chemistry in 1987 for his studies on the chemical basis of ‘molecular recognition’. Over the years his work has led to the definition of a new field of chemistry. Prof. Robert Grubbs is a professor at Caltech, and received the 2005 Nobel Prize in Chemistry for his work in the field of olefin metathesis. Dr. William A. Haseltine is chairman of Haseltine Global Health LLC, a virtual pharmaceutical company. He is also well-known for his pioneering work in cancer and HIV / AIDS. Prof. Gary Hamel is one of the world’s most influential business thinkers and renowned business strategy experts. The Reliance Innovation Leadership Centre (RIL-C) was set up to serve the innovation vision of the council. This centre implements Reliance’s innovation agenda by deploying the best and next transformational innovative practices. HITAL R. MESWANI AJIT SAPRE Dr. J. V. KELKAR GERARD DENAZELLE SUKETU VAKIL “RIL has transitioned from a smart buyer of technology to a fast customiser of technology and a flagship developer through largely in- house developed technology that creates significant value. R&D enables the innovation based growth agenda for Reliance. Reliance’s R&D activities are vital to achieve national development with environmentally sound growth trajectories.” R&D MISSION RIL shall develop innovative products, processes and catalysts to increase and sustain the profitability and growth of Reliance in a compliant, safe and reliable manner. To achieve this mission, RIL has transitioned from a smart buyer of technology to a fast customiser of technology and a flagship developer through largely in-house developed technology that creates significant value. R&D enables the innovation based growth agenda for Reliance. 115 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis are focused on physiology, biochemistry, molecular biology, genomics and development of technologies for algae cultivation, harvesting and processing technologies for converting biomass to bio-crude and bio-chemicals. Reliance has achieved significant technical breakthroughs in improving photosynthesis efficiency and has developed best-in-the-world gene stacking capabilities. Reliance also has expertise in metabolic engineering using lambda Red/PCR technology for gene stacking to improve the production of fuels and chemicals from microorganisms. is (HTL): HTL Hydrothermal Liquefaction a depolymerisation process that uses high temperature and pressure conditions to convert biomass to bio- crude, mimicking the way Earth made crude oil millions of years ago. Reliance has built the largest HTL demonstration unit in the world. The Company has collaborated with partners (Pacific Northwest National Laboratory via Genifuel) whose HTL technology was recognised by a very prestigious award (R&D 100 Award) in FY 2015-16. RIL has subsequently improved the HTL process using in-house proprietary homogeneous catalyst development and other engineering capabilities. Producing Algae and Co-products for Energy (PACE): RIL’s collaborative project with some of the top universities and research institutions in the US, was awarded US$9 million by the US DoE for developing and demonstrating algae for producing energy and co- products. Reliance is the sole demonstration partner for this first-of-its-kind effort wherein it will validate and demonstrate an integrated process for producing bio- crude and other value-added products from algae. Clean Energy: RIL is the sole industry partner in the New Millennium Indian Technology Leadership Initiative (NMITLI) project with the Council of Scientific and Industrial Research (CSIR) on indigenous Polymer Electrolyte Membrane (PEM) fuel cell technology development. After successful lab-scale demonstration of PEM fuel cell technology at low power, a scaled-up cell of 3 kilowatt-electric capacity has been designed. A fuel cell test bed has been built, for which the engineering was done by RIL, while stacks were built by CSIR. These components have been integrated and are now functional. The assembly is undergoing testing. b) R&D – Health, Safety and Environment (HSE) The R&D team has developed breakthrough in ionic liquid catalysts that are fifty times less expensive than competitive ionic liquid products. reusable, These catalysts are more benign, recyclable and can be made at scale. They are R&D Centre at Gagva ORGANISATIONAL STRUCTURE R&D is governed and operated by a well-defined set of teams, viz., Strategic teams, Leadership teams and Functional excellence teams. The R&D function at Reliance has two distinct themes: (i) Breakthrough R&D for potential new businesses. (ii) R&D to support near-term needs and step-out processes for existing businesses The entire R&D organisation enthusiastically embraces Reliance’s Values, Behaviours and Code of Conduct. Risk management is an integral component of the strategic framework. R&D successfully complies with and implements the Operating Management System being driven across Reliance. R&D also implements initiatives such as New Product Development and Introduction (NPDI), Stage- Gate®, etc. to formally manage innovation. FUNCTIONS OF R&D R&D includes a) Breakthrough R&D b) R&D HSE and c) R&D Product Stewardship and it is bound by R&D operating model which describes the operating principles pertaining to the R&D organisation. a) Breakthrough R&D - R&D efforts focus on: Biofuels and Biochemicals: RIL’s ‘Algae to biocrude and biochemicals’ effort aims at establishing a green platform that harnesses natural resources, such as freely available sunlight, sea water, carbon dioxide and low cost nutrients (nitrogen, phosphorus) to produce abundant quantities of biomass that can be converted to biocrude and biochemicals. Research efforts on algae 116 Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. highly effective replacements for toxic hazardous acids. Reliance is developing a breakthrough safer and environmentally friendly process for manufacturing Linear AlkylBenzenes (LAB) using these liquid catalysts. Furthermore, this platform technology will lead to many other breakthrough processes. ionic Sulphur is a refinery by-product. In its elemental form, sulphur has limited use. RIL has developed a technology that increases the efficacy of sulphur as a fertiliser. It is estimated that Indian soils are 40% deficient in sulphur and RIL‘s new sulphur fertiliser (Relfarm™) will greatly improve agriculture productivity throughout India. c) R&D – Product Stewardship a is R&D successful Reliance for commercialisation of technologies. It is the first in the world to successfully extract benzene from diolefin and gasoline products. RIL has also pioneered the use of Light Emitting Diodes (LEDs) for CPVC manufacture. steward R&D - Refining Reliance has made efforts to pursue R&D in the areas of coking, hydro processing, Fluidised Catalytic Cracking (FCC), crude processing, molecule-based process optimisation and value addition from low value refinery streams. The Company is venturing into new areas like biomass gasification, carbon dioxide capture and its utilisation, value addition and utilisation of refinery Fifty times less expensive R&D team at Reliance has developed breakthrough in ionic liquid catalysts that are fifty times less expensive than competitive ionic liquid products. by-product applications besides conventional refining areas. and nanotechnology-based sulphur Through R&D, Reliance provides advanced technical support through computational fluid dynamics and advanced simulation tools. The modelling and simulation group is engaged in resolving several important refinery and petrochemicals reliability issues. R&D - Petrochemicals Reliance provides technology support to olefin crackers, polymers, fibre intermediates, LAB and polyester. The focus areas include: 1. Efficient asset utilisation 2. Development of specialty product grades / materials / catalysts 3. Value addition to by-product streams 4. 5. Leveraging opportunities at the chemicals / oil interface Development processes of environmentally friendly R&D Retail Reliance Dairy is one of the numerous initiatives of Reliance Retail that exhibits the vision of continually generating value for every citizen of the country. The dairy initiative has taken the lead in creating a social business that is transparent, technology-driven and reaches out to millions of dairy farmers with a truly initiative currently inclusive growth model. Dairy operates across 9 states procuring milk every day directly from farmers, bringing in more efficiency and transparency in the dealings with farmers. This has created a win-win situation for both the producers and the consumers alike, where the farmers get better rates and consumers are assured of quality. R&D Jio Globally there are 3,745 (brands) devices announced by 339 manufacturers which support LTE. Handsets with multiband, multimode support, becoming the default offering. is also deploying Fiber-to-the-home (FTTH) Jio technology for wire-line broadband and Carrier-Wi-Fi technologies for broadband via public hotspots. The Company has also undertaken extensive testing of technology products and services being offered. The tests have been positive and have established smooth operations of all aspects of the network. Voice products, including Voice over LTE (VoLTE) as well as Voice over Wifi (VoWifi), work seamlessly. 117 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis resonance R&D – ENABLERS Infrastructure Reliance’s new R&D laboratory facility in Navi Mumbai is equipped with state-of-the-art equipment including X-ray diffraction, mass spectrometers, chromatographs, nuclear magnetic imaging, electron microscopes, infrared spectrometers, X-ray photoelectron spectrometers, rheometers, etc. Other Reliance R&D centres (Hazira, Vadodara, Patalganga, Jamnagar, Gagva) are also very sophisticated. These laboratory and pilot plant facilities provide capabilities for catalysis, chemistry, process engineering, modelling, simulation, material science, synthetic biology, biotechnology, polymer processing, reaction engineering, advanced analytical sciences and product application development. Collaboration Reliance actively collaborates with various international and national institutions for R&D related activities. Some of Reliance’s prominent collaborators are: University of Helsinki (Finland), Ghent University (Belgium), Monash University (Australia), KAUST (Saudi Arabia), NUS (Singapore), KIER (South Korea), Ben-Gurion University of the Negev (Israel), IIP Dehradun, IIT Mumbai, IIT Kharagpur, IIT Chennai, NCL Pune, Florida State University, University of Massachusetts Amherst, University of Delaware, Penn State University, Kansas State University, University of Alabama, Stanford University and Massachusetts Institute of Technology among others. R&D Personnel There are currently more than 400 professionals working to support RIL’s research and technology activities. RIL runs initiatives and campus recruitment drives across universities and colleges to attract fresh talent and the next generations of engineers and scientists. ` 1,259 crore R&D expenditure in FY 2015-16 Internal Crowd Sourcing R&D Social allows researchers to blog about ideas and seek feedback from an internal community akin to social networking exploiting efficient digital technology platforms. Patents Through R&D, Reliance aims to build a strong intellectual property portfolio. In FY 2015-16, a total of 36 patents were granted. An external survey of PCT applications filed by Indian organisations found that Reliance was ranked third amongst Indian applicants. Moreover, the quality of RIL’s inventions is evidenced by the enquiries it started receiving from domestic and international manufacturers for licensing its technologies. R&D EXPENDITURE Capital Revenue Total FY 2015-16 631 628 1,259 FY 2014-15 722 498 1,220 FY 2013-14 810 408 1,218 FY 2012-13 738 380 1,118 ` in crore FY 2011-12 654 335 989 Reliance R&D aims to contribute to not only the ‘Make in India’ initiatives, but also towards creating a strong culture of invent and innovate in India. Several of RIL’s projects are targeted towards inclusive growth. R&D OUTLOOK The chemical industry will stay central to global growth aspirations. However, it will be affected by several megatrends as it continues its evolution. Most important among these megatrends are climate change and energy sources. The ‘Make in India’ campaign is likely to promote opportunities in manufacturing to meet internal and global market demand and will result in an increase in energy demand. Alternatively, India’s power generation mix is seeing increased penetration of renewable energy sources. R&D activities are vital to achieve national development with environmentally sound growth trajectories. Reliance recognises this and is committed to R&D in renewable energy as well as efficient processes to support its hydrocarbons business. 118 Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.  SMART MANUFACTURING - ASSET UTILISATION, RELIABLE OPERATIONS AND EFFECTIVE USE OF TECHNOLOGY “Every day, advances in manufacturing technologies make factories smarter, safer and more environmentally sustainable. At RIL, Reliance Management System, is the key to realise the Company’s strategic goals and targets in the areas of Reliability and Enterprise Asset Management. Reliance leverages digital technology in the area of advanced analytics to create innovative solutions for value added business functions.” HITAL R. MESWANI MANOJ CHOUTHAI Business Transformation and successful implementation and sustenance of the Reliance Management System, are keys to realise the Company’s strategic goals and targets in the areas of Reliability and Enterprise Asset Management. These are targeted through continuous and strategic improvement initiatives. RIL leverages technology as well to improve Integrity, Reliability and Effectiveness by: 1. Use of robotics and drones for high risk jobs and inspection of inaccessible positions. Implement new technologies in Rotary / Inspection and corrosion monitoring: a. 2. b. c. d. real-time corrosion Critical equipment monitoring and early event detection. Model-based automated monitoring system. Develop high thickness probe using the same material of high temperature Long-Range Ultrasonic Testing (LRUT). Usage of newly developed corrosion under tool using microwave insulation monitoring technique. temperature SMART MANUFACTURING ECOSYSTEM WILL: Enable intelligent analysis of all data on a near real-time basis using models, to increase safety, improve energy efficiency, equipment reliability and overall efficiency. Enable aggregating data from various systems, assets and people to get a near real-time 360 degrees view into operations for faster and better decision-making leading to higher operational performance. Facilitate Asset Tracking (personnel, equipment and vehicle) thereby resulting in improved safety, better asset utilisation and enhanced security. NELSON COMPLEXITY INDEX RIL’s refineries at Jamnagar are amongst the largest and most complex refining assets globally, with a Nelson Complexity Index of 12.7. The refinery’s superior configuration gives RIL the ability to process a wide variety of crudes and meet stringent product specifications. 1. Ability to process difficult crudes, which are cheaper. 2. 3. Ability to produce high value added refinery product slate. Ability to make superior grade refinery fuel products, such as BS-IV and Euro-IV + grade gasoline and diesel. DEBOTTLENECKING RIL has undertaken several debottlenecking, improvement to enhance its competitive strength. capacity enhancement initiatives focusing on yield and SOLOMON INDEX RIL’s refineries have continued to remain in top quartile performance compared to global peers on all major Solomon benchmarking parameters. Key strengths as per Solomon study are energy efficiency, operational availability and utilised processing complexity. Operational availability is defined as the percentage of time, a unit or facility available to operate in its intended manner. Higher Utilised Processing Complexity (UPC) generally increases Gross Refining Margin. DIGITAL TECHNOLOGY Digital technology is a core enabler of RIL’s future growth strategy that incorporates business process digitisation, personal productivity tools, big data and analytics, robotics, social and mobility initiatives. Mobility, analytics and security will enable Reliance to develop the next generation 119 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis valued added service that the customers demand and provide them the ability to engage, interact and transact as per their convenience. Going forward, RIL looks to leverage advancement of solutions and technologies in the area of Internet of Thing (IoT), RFID (Radio Frequency Identification) and advanced analytics to create innovative solutions for value added business functions such as Vessel Tracking, Pricing Optimisation, Customer Relationship Management, Energy Management, etc. PRODUCT STEWARDSHIP Reliance works towards increasing the recycling and reuse of materials, and thereby inculcating the 3R (reduce, reuse and recycle) philosophy into the production process. It is Reliance’s constant endeavour to make products that have a positive impact on the environment and cater to consumer needs. Some of the instances of product stewardship are listed below: PRODUCT STEWARDSHIP IN REFINING The RIL’s DTA refinery at Jamnagar is producing unleaded gasoline, since its inception. A new technology has been implemented in the Jamnagar DTA Refinery to reduce benzene and sulphur from the FCC gasoline, and upgrade it to clean fuels of Euro III / Euro IV standards. This shall help to reduce environmental impact of these fuels at the end use stage. PRODUCT STEWARDSHIP IN PETROCHEMICAL Reliance works towards increasing the recycling and reuse of materials, and thereby inculcating the 3R (reduce, reuse and recycle) philosophy into the production process. Some of the instances of product stewardship are listed below: POLYMERS: 1. Promotion of Flexible Intermediate Bulk Container (FIBC) for silage storage to improve the preparation and storage of fodder as compared to traditional silo digging. Promotion of DWC pipes which can replace the traditional cement pipes which are more prone to breakage. RIL has developed an innovative multilayer film for milk packaging where milk in a pillow pouch can be stored for 30 days without refrigeration to reduce wastage of milk and result in low carbon footprint. 2. 3. POLYESTERS: 1. for lighter and thinner Specialty hygiene fibres performance wipes. Recron® Skylark for trousers with linen look and twinkling effect. Recron® Skylark for jari based fabrics which can be dyed at low temperatures. 2. 3. 120 For more information please refer Business Responsibility Report, Principle 2. PRODUCT STEWARDSHIP IN OIL AND GAS EXPLORATION AND PRODUCTION Over the last few years, the Reliance E&P production team has adopted innovative approaches to increase recovery of oil and gas reserves by keeping the wells flowing at its Indian East Coast KG basin deep water offshore operation. Some examples of innovative approaches are: 1 2 3 4 Installation of onshore booster compressors, thereby allowing oil and gas to flow easier through the subsea infrastructure pipelines Injecting surfactant facilitating well fluid to be carried up to the surface into subsea producing wells, High pressure gas injection (at depth of 600m) at sea bed to assist well fluids flowing to surface Reactivation of previously shut in wells by taking advantage of reduced arrival pressure at the onshore facility A number of these innovative approaches have been adopted for the first time at such water depth of 1100m by using remotely operated vehicles through a dedicated is worthwhile to world-class multi-support vessel. mention that Reliance has also extended these expertise to the Indian Coast Guard in locating debris of ill-fated Dornier aircraft. It PRODUCT STEWARDSHIP IN RETAIL Reliance Retail through its “Kushal Kela Vikas Abhiyaan” is helping banana growers realise higher income through provision of latest agri-inputs, progressive pre and post- harvest, trainings on plantation nutrition management and buyback programs. This initiative taken across 3 states have led to approx. 15 – 30% increasing banana yield, a 15% increase in A-Grade marketable produce and 40% reduction in rejections leading to an increase in farmers income by 20 – 30%. The agenda is to next target on Papaya crops, to improve their process of cultivation. PRODUCT STEWARDSHIP IN JIO The Company is rolling out the largest Greenfield LTE deployment in the world. It is launching a state-of-the- art pan India digital services network to provide reliable (4th generation) fast internet connectivity, high-quality communication services and rich digital services. The Company has set up a next generation network which is amongst the best in the world. The network has advanced features such as Software Defined Networking (SDN) and Network Functions Virtualisation (NFV). It is ready for future evolution of technology including transition to 5G with minimal additional capital expenditure in the network. Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 4. PROSPERITY (PROFIT) During the year, Reliance added value of `89,768 crore including payment to the national exchequer aggregating to `43,117 crore. This contribution is used for developmental activities which helps in building of a prosperous society. Additionally, large procurements made by RIL for its regular business as well as for ongoing capex projects has a huge cascading impact – creating jobs and business opportunities for entire socio-economic spectrum. DEEPAK DATTA RAVINDER BATRA B NARAYAN A. SRINAGESH “The Jamnagar projects will enhance Reliance leadership in the refining and petrochemicals business, and substantially enhance the degree of vertical integration in its operations. With these investments and a construction manpower of 1,35,000 plus, Jamnagar is now among the largest industrial construction sites in the world. These new projects are expected to improve cost competitiveness and provide sustainable long-term advantage. Reliance simultaneously execute multiple projects at multiple locations, adhering to highest international standards of HSE even as it maintains optimal costs and tight timelines. Reliance focuses on optimising procurement and contracting costs across all its businesses. Reliance believes in developing strong global supplier and vendor relationships based on shared values and a focus on ethics, quality and safety. With the completion of Gasification, Paraxylene and ROGC and associated units, Reliance’s Jamnagar will be among the highest conversion refineries globally, with no ‘bottom-of-the-barrel’ products.” “Procurement and Contracting (P&C) efforts for the on-going mega Jamnagar Projects involved orders on more than 1,500 vendors spread across 28 countries. The P&C efforts for Jamnagar Projects involved technical co-ordination with 10 Technology Licensors and 12 Engineering Contractors spread across about 30 Engineering Centres around the world. The logistics of safe movement of large volume of equipment and materials as well as Over-Dimensional and Super-Over-Dimensional Cargos (ODCs and SODCs) were managed by road, sea and air through innovative multi-modal transportation strategies. The Construction work at the Project site is being managed through mobilisation of over 11,500 Construction Equipment and Machinery.” The initiatives in digital services is expected to act as a catalyst to the start-up ecosystem of digital India, thereby empowering millions of Indians. R&D and innovation at RIL are aimed at meeting social and economic needs of India. CSR initiatives at RIL impacts a large number of people from less-privileged sections of society. For details please refer and follow through the following pages; Page 10-11 Enhancing the Quality of Life; Page 12-13 Making Lives Better; Page 14-17 Jio- Starting up and Reimagining to a digital life; Page 18-19 Nurturing Digital Entrepreneurship; Page 20-21People Innovation and Research and Technology; Page 22-23 An integrated approach towards Sustainable growth – 5P’s; Page 24-25 Strategic Framework and Outcome; Page 38- 39 Reliance Foundation; Page 60-61 Financial Performance and Review 121 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis 5. PEACE AND PARTNERSHIPS “RIL is determined to foster peaceful, just and inclusive societies, which are free from discrimination. RIL believes, there can be no sustainable development without peace and partnership. A participatory approach sets the foundation for ensuring an inclusive society. RIL’s engagements with its various stakeholder groups ensures that the nation’s development is not isolated from the general populace and the fruits of progress are distributed equitably.” P. M. S. PRASAD JAGANNATHA KUMAR RIL is determined to foster peaceful, just and inclusive societies, which are free from discrimination. Strengthened global solidarity is crucial to ensure sustainable development across the world. It is therefore imperative to ensure global partnerships and strategic tie-ups with various organisations locally and internationally to achieve the collective goal of sustainable development. PARTNERING RESPONSIBLY Reliance Industries along with nine other companies will collaborate in a number of areas to reduce their GHG footprint with combined GHG emissions from their operations. PARTNERING FOR GROWTH AT RELIANCE HYDROCARBON BUSINESS - PARTNERING FOR EXPERTISE Partnerships represent an important dimension of the E&P business. Reliance and BP entered into a transformational partnership with focus on delivering growth and adding value to India’s energy sector. The partnership commemorates a perfect blend of BP’s deep-water and development expertise with Reliance’s project management skills. In partnership with BP, Reliance plans to become a major player across the gas value chain in India. Reliance has also forged strategic partnerships with Chevron, Pioneer Natural Resources and Carrizo Oil and Gas for development of shale gas resources in the US. RIL entered into a long-term supply contract for Basrah Heavy Crude in order to improve the overall cover in the long-term. Reliance is working in close association with local Public Works Departments (PWDs) and the railways to exemplify the cost-benefit ratio. Reliance has partnered with The Indian Centre for Plastics in the Environment (ICPE) to help sustain an environment friendly image of plastics by highlighting the positive role of plastics in conserving resources and its 100% recyclability. 122 RIL and its partners, in conventional and shale business closely work together and channelise expertise to target high quality prospects and optimise existing and future development plans. RIL and Myanmar Oil and Gas Enterprise (MOGE) have signed production sharing contracts. RIL signed a MoU with Petroleos Mexicanos (PEMEX) to co- operate for assessment of potential upstream oil and gas business opportunities in Mexico and jointly evaluate value- added opportunities in international markets. RETAIL Reliance brands has a portfolio of over 40 international brands. Payless ShoeSource, which runs the largest family footwear store chain in western hemisphere was launched in India in an exclusive partnership with Reliance Retail during the year. The successful partnership with Marks and Spencer (M&S) continued to grow with strong same store sales growth, as well as roll out of new stores during the year. Reliance Fresh has joined hands with Akshay Patra, an NGO to serve nutritious meals to more than 10,000 schools across India. For more details, please refer to page no. 93. JIO As part of its broadband plans, Jio has invested in a new, state-of-the-art 8,100 km cable system, the Bay of Bengal Gateway (BBG). BBG provides direct connectivity to South East Asia and the Middle East, then onward to Europe, Africa and Far East Asia through seamless interconnection with existing cable systems. In addition to Jio, the BBG partners include: Dialog Axiata, Etisalat, Omantel, Telecom Malaysia, and Vodafone. BBG has deployed the latest submarine cable 100 gigabits per second transmission technology, utilizing wavelength add/drop branching units along the route, Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. with an initial equipped capacity of 9 terabits per second. Providing robust, reliable, low latency connectivity, BBG strengthens one of the fastest growing global internet routes. In addition, the Company has entered into agreements with RCOM for change in spectrum allotment. For more information please refer page no. 96. PARTNERING FOR PEOPLE CHANGE STAKEHOLDER ENGAGEMENT Stakeholder engagement process is well-defined at RIL for identification and selection of stakeholders (both internal and external). RIL’s materiality analysis process follows a structured approach, taking care of key concerns and priorities of all of RIL’s internal as well as external stakeholder groups. TALENT POOL The Company has initiated the Campus Marquee Progamme to build a talent pool of high caliber professionals from world renowned universities in addition to providing its employees with global exposure through multiple partnerships with world renowned universities. For more information please refer page no. 113. HEALTHCARE SERVICES Reliance joined hands with Bill and Melinda Gates Foundation, Merck Sharpe Foundation, Tata Trust and the United States Agency for International Development to form Project ASMAN, a first-of-its kind ‘Continuum of Care – Health Alliance’ in India. PARTNERING FOR INNOVATION GenNext Hub is a Reliance-backed startup programme powered by Microsoft Ventures, to catalyse the startup ecosystem for a digital India. Headquartered in Reliance Corporate Park, Navi Mumbai and launched in September 2014, it has completed two batches of the programme with a total of 22 startups successfully graduating from the Hub. PARTNERING FOR RESEARCH AND EXECUTION RIL is the sole industry partner in the New Millennium (NMITLI) Indian Technology Leadership project with the Council of Scientific and Industrial Research (CSIR). Initiative RIL has a rigorous screening process for registration of contractors and include top performing Engineering/ Supervision companies, construction companies, installation and commissioning service providers, joint ventures and consortium. For more information please refer page no. 118. C. RISK AND GOVERNANCE NIKHIL R. MESWANI LAXMIDAS V. MERCHANT HARISH SHAH “Reliance’s Enterprise Risk Management manages risk through Risk Management framework to safeguard its stakeholders and to achieve its business objective. It has robust mitigation strategy in place to ensure continuity in an environment driven by Volatile, Uncertain, Complex and Ambiguous (VUCA).” “During the year, significant progress has been made in the three pillars having concentrated effort in a) People, b) Process, Systems and Data and c) Governance. Reliance has launched leadership development and an enterprise wide learning and governance framework for employees which is part of the R-HR transformation. Reliance has completed world-scale and world-class integrated Systems. This year it went Live for Hydrocarbons business and sites. Reliance has a comprehensive Reliance Management System, a holistic set of management systems, organisational structures, processes, policies and governance framework. Reliance business transformation is in a state to cater next level of exponential growth in VUCA environment.” 123 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis ENTERPRISE RISK MANAGEMENT 1. INTRODUCTION Reliance actively stimulates entrepreneurship throughout the organisation and encourages 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. Reliance 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 Reliance strategy. This section provides an overview of the key strategic risks, the Reliance risk and control framework and its approach to risk management. 2. CREATING VALUE THROUGH RISK MANAGEMENT Reliance operates in diverse industries and global markets and therefore requires a balanced approach to risk management. The Company’s risk management framework encompasses internal control in an integrated manner and is tailored to the specific Reliance segments, businesses and functions. It takes 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 undergoes continuous improvements to allow Reliance management to optimise its management of risk exposures while taking advantage of business opportunities. 3. RELIANCE’S VIEW ON RISK 3.1 RISK APPETITE Reliance’s risk appetite is linked to its strategic approach and is based on the stance it has taken across four areas: Strategic and Commercial: Reliance 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. Safety and Operations: Reliance is committed to conduct all its activities in such a manner as to avoid harm to employees and the community. Reliance strive to deliver safe, reliable and compliant operations. Compliance and Control: Compliance with laws and regulations is fundamental to maintaining its license to operate in the various industries that it operates in. Reliance also 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. 124 Financial: Reliance manages financial risk to maintain a prudent financing strategy, even when undertaking major investment and therefore taking controlled risks in this area. 3.2 RISK FACTORS Reliance emphasises on those risks that threaten the achievement of business objectives of the Group over the short to medium-term. As part of its annual planning process, Reliance review the principal risks and uncertainties to the group. It identifies those as having a high priority for particular oversight by the board and its various committees. An overview of these risks is provided hereafter, including the actions taken to mitigate these risks and any related opportunities: STRATEGIC AND COMMERCIAL RISKS I. a. Commodity Prices and markets Reliance’s financial performance is subject to the fluctuating prices of crude oil and gas and downstream petroleum products. Prices of oil and gas products are affected by supply and demand, both globally and regionally. Factors that influence fluctuations in crude prices and crude availability include operational issues, natural disasters, political instability, economic conditions and Government pricing policy of petroleum products among others. Mitigation: Since Reliance operates an integrated hydrocarbon business, some of these risks can be offset by gains in other parts of the Group. To mitigate the risks resulting from non-availability of crude and feedstock, Reliance has a diversified crude sourcing strategy from multiple geographies (Asia, the Middle East, West Africa, Latin/ South America and North Africa) under both short-term and long-term arrangements. In addition, Reliance has put in place commodity risk management policies which provide the framework for decision making with respect to exposures from commodity trading positions. b. Major Project Execution Risk Reliance’s future growth plans depend upon successful delivery of major capital projects. Major capital projects include the Jamnagar expansion project (cracker, gasification etc.), which is designed to deliver a step change in energy costs and increase the production capacity of ethylene and other downstream products at the complex, as well as the launch of a pan India telecom infrastructure to provide 4G LTE TDD high speed wireless internet and mobile communication services. Delivery of these major projects is key to Reliance’s future financial performance. Managing the risks related to the delivery of these and other major Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. capital projects is key to enhancing Reliance’s long- term shareholder value. respect to the management of security risks affecting its people and operations. Mitigation: Project risk management is embedded in the way Reliance delivers projects. These includes a specialised project delivery function with experienced project management professionals, project risk modelling on a project-by-project basis, partnering with experienced vendors to execute complex projects and ongoing review and escalation of issues that undermine project success. II. SAFETY AND OPERATIONAL RISKS a. Evolving Health, Safety and Environmental (HSE) risks Reliance is exposed to a wide spectrum of HSE risks, given the diversity and complexity of the industries, it operates in. The exploration and production of oil and gas, transportation of the hydrocarbons and their further refining and processing is regulated by various HSE related regulations across the geographies where Reliance operates. A major HSE incident, such as fire, oil spill, security breach can result in loss of life, environmental degradation and overall disruption in business activities. b. Mitigation: Reliance 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. Reliance has set itself the goal of ‘zero injuries and incidents‘. A separate Safety and Operational Risk (S&OR) function provides oversight on HSE exposures and periodically conducts HSE audits to get assurance on the HSE management framework protocols and regulatory compliances. Physical Security and Natural Calamity risks Hostile acts such as terrorism or piracy could harm the Company’s people and disrupt its operations. Some of Reliance’s sites are also subject to natural calamities such as floods, cyclones, lighting and earthquakes. If the company does not respond, or is perceived to not respond, in an appropriate manner to either an external or internal crisis, its business and operations could be severely disrupted. Inability to restore or replace critical capacity to an agreed level within an agreed time frame would prolong the impact of any disruption and could severely affect Reliance’s business and operations. Mitigation: Reliance monitor for emerging threats and vulnerabilities to manage its physical security. The Company’s central security function provides guidance and support to a network of security heads at the various sites who advise and conduct assurance with To respond to natural calamities Reliance maintains disaster recovery, crisis and business continuity management plans to respond to a disruption or an incident. c. Cybersecurity risk of the use Reliance, information At and telecommunication technologies is increasing, resulting in greater security threats to its digital infrastructure. A breach of its digital security or disruptions to its digital infrastructure, due to intentional actions, such as cyber- attacks or human error could lead to serious impacts to its businesses. These impacts may include injury to staff, loss of control, impact on continuity or damage to assets and services, harm to the environment, the loss of sensitive data or information, legal and regulatory breaches and reputational damage. Mitigation: Reliance continues to strengthen its responses to cybersecurity threats through proactive and reactive risk mitigations. These include, proactive activities to continuously improve its cybersecurity technical safeguard, ongoing policies, standards, monitoring of new and existing threats and IT security awareness initiatives. Its reactive responses to cybersecurity threats, which include IT disaster recovery, emergency response and business continuity management capabilities to enable the reduction of the impacts of a cybersecurity event. III. COMPLIANCE AND CONTROL RISKS Regulatory compliance risks The evolution of the global regulatory environment has resulted into increased regulatory scrutiny that has raised the minimum standards to be maintained by Reliance. This signifies the alignment of corporate performance objectives, while ensuring compliance with regulatory requirements. recognises regulatory that Mitigation: Reliance times be challenging. A requirements can at comprehensive compliance management framework has been deployed which is designed to: Understand changes to regulatory standards in a timely manner to strengthen decision making processes and integrate these in the business strategy of each of the industries in which it operates; 125 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis the Drive business performance convergence of risk, compliance processes and controls mechanisms to ensure continued operational efficiency and effectiveness. through IV. FINANCIAL RISKS Treasury risks Treasury risks include, among others, exposure to movements in interest rates and foreign exchange rates. Reliance also maintains sufficient liquidity, so that it is able to meet its financial commitments on due dates and is not forced to obtain funds at higher interest rates. It has access to markets worldwide and it uses a range of products and currencies to ensure that its funding is efficient and well diversified across markets and investor types. Interest Rate risk Reliance borrows from domestic and international markets to meet its long-term and short-term funding requirements. It is subject to risks arising from fluctuations in interest rates. funds Mitigation: The interest rate risk is managed through financial instruments available to convert floating rate liabilities into fixed rate liabilities or vice versa, and is aimed at reducing the cost of borrowings. its financial statements Foreign Exchange risk in Reliance prepares Indian Rupee (INR), but most of the payables and receivables of hydrocarbon business are in US Dollars, minimising the cash flow risk on account of fluctuations in foreign exchange rates. Reliance liabilities avails (primarily in USD, EURO and JPY) to fund its capital investments. foreign currency long-term Reliance also avails short-term foreign currency liabilities to fund its working capital. Mitigation: Foreign exchange risk is tracked and managed within the risk management framework. liability Short-term mismatch is continuously monitored and hedged. foreign currency asset – The foreign exchange market is highly regulated and Reliance ensures compliance with all the regulations. 4. HOW RELIANCE MANAGES RISK Reliance manages, monitors and reports on the principal risks and uncertainties that can impact its ability to achieve its strategic objectives. The Company has established 126 the Reliance Management System (RMS) as part of its transformation agenda. RMS incorporates an integrated internal controls. framework for managing risks and The internal financial controls have been documented, embedded and digitised in the business processes. Internal controls are regularly tested for design and operating effectiveness. Reliance’s management systems, organisational structures, processes, standards, code of conduct and behaviours together form the RMS that governs how Reliance conducts its business and manage associated risks. Reliance has introduced several improvements to integrate Risk Management, Internal Control and Assurance processes based on the three lines of defence principle to drive a common integrated view of risks, optimal risk mitigation responses and efficient management of risk monitoring and assurance activities. This integration is enabled by common methodologies and processes supported by a single Group wide IT platform. Reliance’s risk management framework is designed to be a simple, consistent and clear framework for managing and reporting risks from the Group’s operations to the Board. The framework and related processes seek to avoid incidents and maximise business outcomes by allowing management to: Understand the risk environment and assess the specific risks and potential exposure for Reliance. Determine how to deal best with these risks to manage overall potential exposure. Manage the identified risks in appropriate ways. Monitor and seek assurance of the effectiveness of the management of these risks and intervene for improvement where necessary. Report up the management chain to the board on a periodic basis about how risks are being managed, monitored, assured and the improvements that are being made. GROUP RISK MANAGEMENT FRAMEWORK The Group Risk Management Framework is designed to help ensure risk management is an integral part of the way that Reliance works everywhere to enable risks to be identified, assessed and managed appropriately. The Group Risk Management Framework comprises 3 levels: Oversight and Governance - Reliance’s Board, along with executive and functional leadership have articulated an absolute commitment of the Group to effective risk management and provides oversight to identify and understand significant risks. They also put in place systems of risk management, compliance and control to mitigate Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. these risks. Dedicated Executive sub-committees review and monitor group risks throughout the year with the respective risk owners to drive a risk management culture. Reliance’s Group Risk team analyses the Group’s risk profile and maintains the Group Risk Management Framework. Its Group Audit team provides independent assurance to the Board, through its Committees, over whether the Group’s system of risk management and internal control is adequately designed and operating effectively to respond appropriately to the risks that are significant to Reliance. Business and Strategic Risk Management - Through Business Risk and Assurance Committees (BRAC), Reliance businesses and functions integrate risk into key business processes such as strategy, planning, performance management, resource and capital allocation and project appraisal. The BRAC’s do this by collating risk data, assessing risk management activities, reviewing near misses and incidents through root cause analysis followed by implementation of required improvements. (OMS) Day-to-day Risk Management - Management and staff at Reliance’s facilities, assets and functions identify and manage risk, promoting safe, compliant and reliable operations. For example, Reliance’s Group-wide Operating Management System requirements on health, safety, security, environment, social responsibility, operational reliability and related issues. These Reliance requirements, along with business needs and the applicable legal and regulatory requirements, underpin the practical plans developed to help reduce risk and deliver strong, sustainable performance. integrates Reliance s k s i R p u o r G d n a s e i r o g e t a C k s i R p u o r G k s i R p u o r G OVERSIGHT AND GOVERNANCE Audit Committee Risk Management Committee Finance Committee RIL BOARD HSE Committee CHAIRMAN Executive Team HR Nomination and Remuneration Committee Stakeholders Relationship Committee CSR and Governance Committee GADC - Group Audit and Disclosures Committee GFRC - Group Financial Risk Committee GORC - Group Operational Risk Committee GPC - Group People Committee GCC - Group Compliance Committee GCSR - Group Corporate Social Responsibility Committee Business and Strategic Risk Management Enterprise wide risk views to inform key business decisions Business Risk and Assurance Committees Day to Day Risk Management Code of Conduct Operating Management System People Management System Financial Management System Business and Functional Leaders Line and Function Self Verification - 1st Line of Defence Embedded Risk Manager Network Functional Assurance - 2nd Line of Defence G r o u p A u d i t R i s k R e p o r t i n g , M o n i t o r i n g a n d A s s u r a n c e 127 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis  SMART TRANSFORMATION AT RELIANCE (STAR) Reliance has been working to deliver a large scale, multi-year business transformation programme called STAR. The STAR programme is an integral part of Reliance’s strategy to build competitive advantage and use technology for its benefit. This programme has seen concentrated efforts on three pillars:- 1) 2) People – Create a new set of leaders who retain the best elements of what makes Reliance distinctive and take its business forward with new energy and entrepreneurship. Processes Systems and Data – Create an integrated, end-to-end digital chain real-time information and to extract full value from existing assets along with quick integration and monetisation of new lines of business and acquisitions to provide 3) Governance – To provide continuous assurance to all stakeholders. STAR Programme People Strategy Processes, Systems and Data Goals and Outcomes Governance Please refer to Strategic Framework and Outcome on page no. 24-25 PROGRESS DURING THE YEAR During the last year, Reliance worked extensively on completing transformation initiatives and made significant progress. The following are the highlights: 1. PEOPLE Reliance continued to implement some of the most contemporary practices and processes across the entire employee life cycle. The ‘R-university’ which is a single employee learning entity has been set up to take the quality of learning and development programs to the next level. It has been able to significantly deepen its leadership bench strength across businesses and functions. Decision rights have been delegated, systems have been simplified and digitally enabled. Its “One Reliance” philosophy has allowed Reliance employees to own their careers. The recent focus has been on implementing new leadership development and learning programs. In support of this, Reliance has created various Learning Academies to ensure knowledge management and access to world class training opportunities for its employees. Reliance believes that all these initiatives will help it to continue being among the leaders in the “Best Companies to Work For” and to attract world class talent. 2. PROCESSES, SYSTEMS AND DATA Reliance has now completed world-scale and world-class integrated Systems Go-Live for Hydrocarbons business and sites. It has made substantial progress to automate processes, reduce manual effort and to improve controls and transparency through an end-to-end digital chain. Reliance started with the aim of seamlessly integrating systems, enabling all of its processes. To achieve this it mapped all key processes in detail. These processes were then integrated, optimised and digital technology enabled through a series of major system implementation. 3. GOVERNANCE structures, processes in place a comprehensive Reliance Reliance has put Management System (RMS), a holistic set of management systems, organisational and requirements. It believes that RMS has substantially enabled it to become a more systematic and simpler company with extensive digitisation. The RMS shall enable a still more evolved governance and risk assurance framework for Reliance through its three key core elements: Operating Management System (OMS), Financial Management System (FMS) and People Management System (PMS). All of Reliance’s STAR actions have delivered the foundation and platform to ensure that is ready to enhance shareholder, societal, customer and employee value on a continuous basis. it FOCUS FOR NEXT YEAR The focus for FY 2016-17 will be to further build upon the foundation that Reliance has created through successful implementation of STAR Transformation projects. 128 Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. AWARDS AND RECOGNITIONS Some of the major awards and recognitions conferred during FY 2015-16 are: 1 4 2 3 1) Government of India honours RIL’s visionary founder Shri. Dhirubhai Ambani with the Padma Vibhushan 2) RIL’s Chairman and Managing Director, Shri. Mukesh D. Ambani was awarded the prestigious Othmer Gold Medal by Chemical Heritage Foundation, USA 3) Shri. Mukesh D. Ambani was elected as a Foreign Members of the prestigious US National Academy of Engineering 4) Smt. Nita M. Ambani named the most powerful businesswoman in Asia by Forbes LEADERSHIP Government of Shri Dhirubhai Ambani with Padma Vibhushan. India honours RIL’s visionary founder Chairman and MD Shri Mukesh D. Ambani elected as a Foreign Member of the prestigious US National Academy of Engineering. Chairman and MD Shri. Mukesh D. Ambani awarded the prestigious Othmer Gold Award for Entrepreneurial Leadership. Reliance Foundation Chairperson Smt. Nita M. Ambani has been named the most powerful businesswoman in Asia by Forbes. CORPORATE SOCIAL RESPONSIBILITY Won the ‘Best Corporate Social Responsibility Practices Award’ and the ‘Best use of CSR practices in Manufacturing Award’ in the Asia Best CSR Practices Awards event. Won the ‘Global CSR Excellence and Leadership Award’ 2016 under the ‘Best use of Corporate Social Responsibility Practices’ under the category of the Manufacturing sector. HIV and TB Control Centre, Hazira honoured with the ‘Best ART (Anti-Retroviral Therapy) Centre Award’. Awarded the ‘Gold Award’ for the 5th CSR Greentech Award. ‘Porter Prize 2015’ Awarded the prestigious for “its outstanding contribution to the society to meet the basic human needs, establishing blocks that allow communities to sustain quality of life and creating conditions for individuals to reach their potential”. Awarded the internationally acclaimed ‘Golden Peacock Award 2015’ for Corporate Social Responsibility. Nepal Red Cross Society appreciated the Foundation for its relief measures after the earthquake shattered thousands of lives in the country. RIL has won the ‘Platts Global Energy Award’ in the Corporate Social Responsibility (CSR) category. QUALITY AND EXCELLENCE Won ‘Par Excellence Award’ at the National Convention on 129 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis Quality Concepts, NCQC 2015, organised by Quality Circle Forum of India, QCFI. Received 6 Gold awards at the Regional Convention on Quality Concepts organised by QCFI. Won the ‘Quality Achievements Award’ under GOLD Category for outstanding efforts to improve achievements in Quality management at the convention organised by ESQR (European Society for Quality Research). Quality Circle teams received Gold award for both quality circle teams at 26th Quality Convention Centre organised by QCFI, VCCQC 2015. Quality Circle teams received Gold Award at 3rd Annual Quality Convention organised by QCFI ACCQC 2015. Won ‘Lean and Six Sigma Excellence Award’ 2015 (LSSEA 2015) organised by Symbiosis Centre for Management and Human Resource Development (SCMHRD). Awarded ‘Rama Krishna Bajaj National Quality Award (Certificate of Merit)’ for process, systems, quality and service delivery to the customers. Won the First Prize in Vardhman Quality Navigator Award (Large Business Category) at the 10th North - West QualTech Awards. HEALTH, SAFETY AND ENVIRONMENT Received ‘14th Annual Greentech Safety Award 2015’. Awarded ‘Rashthra Vibhushan Gold Award 2015’ towards Health Excellence. Awarded ‘6th Annual Greentech Environment Gold Award 2015’ in Textile Sector for Outstanding Achievement in Environment Management. Won ‘Excellent Energy Efficient Unit’ award on national level for outstanding achievement in Energy Management for the year 2014-15 by Confederation of Indian Industries (CII), Hyderabad. ‘National Energy Conservation Award’ 2015 Won in Petrochemical Sector by Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India (GoI), New Delhi. RETAIL Reliance Digital retains No.1 position as ‘CDIT Retail Brand’ in the Brand Equity Economic Time survey. Reliance Digital was awarded the ‘Retail Leadership Award 2015’ - India Retail Awards 2015. Awarded ‘Retail Professional of the Year’ (Brian Bade), Consumer Durable Retailer of the year by Franchisee India. Received ‘Golden Mikes 2015’ bronze award for the “Best Radio Commercial”. Awarded the ‘Most Admired Retailer’ of the Year - Employee Practice by IMAGES Retail Awards 2015. Great Place to Work® Institute and Retailers Association of India (RAI) have recognised Marks and Spencer India as the 6th ‘Best Company to Work for’ in retail industry this year. Marks and Spencer India employee Mr. Velu M wins the gold award for ‘Customer Service Excellence’ at the 5th Annual TRRAIN Retail Awards. ‘Green in Supply Chain and Initiative Awarded the Logistics’, Scale Awards 2015 by Confederation of Indian Industry (CII). Won the ‘Best Environment Friendly Project’ at the CSR Leadership Awards 2016. Reliance Footprint wins ‘ABP Business Excellence’ award for brand excellence in fashion and lifestyle category. Won the ‘YES Bank - Saevus Natural Capital Awards - Eco Corporate of the Year’. ‘Greentech Environment Gold Award’ 2015 in Textile Sector for outstanding achievement in Environment Management. Received ‘Gold Award’ in ‘Petrochemical’ and ‘Textile Sector’ respectively, in the 16th Annual Greentech Environment Award 2015, for outstanding achievement in Environmental Management. ENERGY AND WATER CONSERVATION / EFFICIENCY Awarded ‘I.C.C. Award for Excellence in Energy Conservation and Management’. ‘Refinery Petrofed Award’ of the Year 2014. Awarded ‘Excellent Energy Efficient Unit Award’ at the CII National Energy Efficiency Summit. 130 Awarded the ‘Footwear Retailer’ of the year by CMO Asia Retail Excellence Awards 2015. Received an award in the mid-design category in the inaugural Retail Jewellery Guild Awards 2015. SUSTAINABILITY Winner of ‘Golden Peacock Global Award for Sustainability’ for the year 2015. Corporate Excellence - Commendation for Significant Achievement, CII-ITC Sustainability Awards 2015. CII sustainable plus ratings – Platinum rating. Annual Report 2015-16Management’s Discussion and Analysis (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. GLOSSARY REFINING AND MARKETING 1 2. 1. 2. 3. 4. 5. 6. 7. 1. 2. 3. 4. 5. Liquefied Natural Gas (LNG) Natural gas which, after processing, has been liquefied to or at below its point of boiling and at or near atmospheric pressure for storage and transportation. Corrosion Under Insulation (CUI) Inspection Inspection for external corrosion of equipment and piping by water trapped under thermal insulation. OIL AND GAS EXPLORATION AND PRODUCTION Eagle Ford Formation ~89 million years old sedimentary rock formation underlying much of South Texas in the United States, rich in organic matter and all form of hydrocarbon i.e. oil, condensate and gas. Marcellus Formation Organic rich marine shale formed ~382 million years ago and found in eastern North America, yields primarily gas. Condensate Low vapour pressure hydrocarbons obtained from natural gas through condensation or extraction and refer solely to those hydrocarbons that are liquid at normal surface temperature and pressure conditions. Conventional oil Conventional oil and gas refers to petroleum, or crude oil, and raw natural gas extracted from the ground by conventional means and methods. Unconventional oil Petroleum produced or extracted using techniques other than the conventional method, as well as the types of rock from which the oil and natural gas are produced. Examples include Shale Gas, Coal Bed Methane etc. Drill Stem Test A DST is a procedure for isolating and testing the pressure, permeability and productive capacity of a geological formation during the drilling of a well. Preliminary Front End Engineering Design (Pre FEED) DIGITAL SERVICES Long Term Evolution (LTE) FEED is an engineering design approach used to control project expenses and thoroughly plan a project before a fix bid quote is submitted. A standard for wireless communication of high-speed data for mobile phones and data terminals. Internet Protocol (IP) network The principal communications protocol for internet. Network based on these protocols are often referred to as IP Network. Spectrum Airwaves which carry signal/data on a given frequency or band. Evolved Node B (eNodeB) An element of a LTE Radio Access Network. Fiber to the Home (FTTH/X) Last mile connectivity of optical fibre from a central point directly to individual buildings such as homes/businesses to provide very high-speed Internet access. 131 GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and AnalysisReport on Corporate Social Responsibility JAGANNATHA KUMAR JITENDRA KALRA SUDARSHAN SUCHI “The Company’s vision is to create value for the nation, enhance quality of life across the entire socio-economic spectrum and build an inclusive India. Reliance endeavours to create replicable and scalable models of development through an integrated approach and maximising societal value for all. “ Beneficiaries of Reliance’s initiative Reliance Group (Reliance) seeks to impact people’s lives through its Corporate Social Responsibility (CSR) initiatives. Its CSR policy is aimed at improving lives, living and livelihood for a stronger and inclusive India. Central to its philosophy is the commitment to enhance the quality of life of people from marginalised and vulnerable communities, by empowering them and catalysing change through innovative and sustainable solutions. The Company’s CSR initiatives are guided by three core principles of Scale, Impact and Sustainability. These initiatives are aimed at promoting equitable economic growth and ensuring a more sustainable, inclusive and people-centric development. Reliance has undertaken its initiatives in compliance with Schedule VII of the Companies Act, 2013. Most of these initiatives are conducted under the aegis of the Reliance Foundation, an umbrella organisation for the Company’s social sector initiatives. These initiatives happen to be in conformity with the Sustainable Development Goals (SDGs), outlined in the United Nations 2030 Agenda for Sustainable Development. Reliance focuses on ushering in change through the following focus areas: 132 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Rural Transformation (RT) – Reliance works towards bridging the developmental gap between rural ‘Bharat’ and urban ‘India’ by improving livelihoods and addressing poverty, hunger and malnutrition. The programme design is distinguished by two unique features. First, it is a holistic intervention for transformation driven by community aspiration goals and second, it has been grounded with some of the most marginal communities of India. The programme aims at improving farm and non-farm livelihoods through the promotion of sustainable agricultural practices, setting up rain-water harvesting structures and institution building. Information Services provide Furthermore, Reliance’s validated and timely information to farmers, fisherfolk and livestock owners for taking right decisions to improve income and livelihood and also avert avoidable risks. These initiatives help build capacities of communities to promote peaceful and inclusive societies and ensure long-term sustainable development. Environment (En) – Reliance focuses on promoting environmental sustainability through initiatives towards enhancing ecological balance, promoting biodiversity, conserving natural resources and promoting renewable energy. Additionally, efforts have been made to maintain the quality of soil, air and water. Reliance’s CSR policy is aimed at improving lives, living and livelihood for a stronger and inclusive India. Health (He) – Reliance provides affordable solutions for quality healthcare through improved access to healthcare services and spreading awareness. The outcomes of healthcare related initiatives include providing access to quality primary and secondary care services to the deprived population, conducting need-based health camps and providing consultation and medicine, amongst others. Efforts have been made to ensure better maternal and child healthcare services and improve delivery through innovative research programmes. Through the Drishti programme, Reliance has worked with the visually impaired. Education (Ed) – Reliance seeks to provide quality education, training and skill enhancement to improve the quality of living and livelihood. The Company focuses on promoting primary and secondary education, enabling higher education through scholarships, promoting higher education through setting up and supporting universities and skill development through vocational training. Sports for Development (SD) – Reliance focuses on using sports as a medium to encourage learning and inculcate leadership amongst the youth. The programme uses sports and activities as a tool for development to bring about positive change. Under this initiative, talented young students are groomed further to build their skills in sports. Disaster Response (DR) – Reliance works towards organising timely relief and rehabilitation of communities affected by natural calamities. Efforts are also made to build capacities of local communities to cope with disasters and develop expertise and resources to respond to it in a timely manner. Arts, Culture and Heritage (A&C) – The initiative towards protecting Indian Arts, Culture and Heritage is aimed at supporting and promoting artists and craftsmen, preserving traditional art and handicraft and documenting India’s rich heritage for the benefit of future generations. Various promotional and developmental projects and programmes have been conducted. Sir HN Reliance Foundation Hospital and Research Centre For more information please refer CSR policy http://www.ril.com/InvestorRelations/Downloads.aspx 133 Report on Corporate Social ResponsibilityGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147 THROUGH THE INITIATIVES MENTIONED ABOVE, RELIANCE HAS ACHIEVED THE FOLLOWING RESULTS IN FY 2015-16: Rural Transformation RT Environment En Health He 134 Livelihoods of more than 19 lakh farmers and fisherfolks enhanced with support from Reliance (over 20 lakh since inception). More than 97,000 individuals benefited from 2,982 interactive programmes on health, agriculture and livelihoods (over 2 lakh benefited from 6,789 interactive programmes since inception). 31 additional Village Farmers Associations were formed during FY 2015-16 and 3,000 marginal households were enrolled. (Since inception, more than 500 Village Farmers Associations, with 48,500 marginal households have been positively impacted through various sustainable agriculture initiatives). 6,749 Ha of land was brought under improved cultivation (53,934 Ha since inception). Over 17,000 people supported to reach nutrition self- sufficiency (nearly 1.5 lakh since inception). Water harvesting structures created to collect 103 lakh cubic metres of rainwater (nearly 550 lakh cubic metres since inception). Water harvesting and conservation efforts resulted in bringing 4,726 Ha under irrigation (20,590 Ha since inception). Over 5.4 lakh saplings were planted to preserve the environment (nearly 120 lakh since inception). Over 5 lakh health consultations provided to patients through Reliance managed hospitals, mobile and static medical units and various health camps (over 35 lakh since inception). 8,480 women were screened for anemia, of which 3,165 women were diagnosed and received treatment for it (over 12,000 women screened, of which 4,900 received treatment since inception). A total of 12,283 children were screened for malnutrition and 1,459 received follow-up treatment for it. 689 corneal transplants (14,728 since inception) supported under the Drishti Programme. 675 cataract surgeries were supported under eye care services. Through 27 Community Health Workers, over 1,000 pregnant women were enrolled for antenatal and postnatal care services. Over 500 patients were provided free consultation, counselling, investigation and treatment for HIV/AIDS (over 8,000 patients since inception). Annual Report 2015-16Report on Corporate Social Responsibility (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Education Ed 687 meritorious students were given scholarships to pursue higher studies (over 12,000 since inception). Quality education was provided to 85,000 students through six ‘Education for All’ NGOs (70,000 students) and 13 Reliance Foundation Schools (15,000 students). Sports for Development SD Disaster Response DR Engaged with over 19 lakh youth (over 28 lakh since inception) across 18 cities who were encouraged to adopt healthy and active lifestyle by integrating basketball into their physical education curriculum. 23 children were awarded scholarships under Young Champs programme for developing football abilities. Sports for Development initiatives in rural areas reached out to more than 3,000 children through various events. The relief activities covered seven districts and 218 villages in Gujarat, Maharashtra and Tamil Nadu. Lives of 1,46,510 individuals were impacted through disaster relief by providing various relief materials (2.8 lakh individuals since inception). Arts, Culture and Heritage A&C Extended support to the annual concert, “Abbaji”, organised by Ustad Zakir Hussain in the memory of his father, Ustad Allah Rakha Khan. This concert featured renowned musicians who came together to pay tribute to the legendary Guru. 135 Report on Corporate Social ResponsibilityGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147CSR Expenditure (in ` crore) FY 2015-16 FY 2014-15 FY 2013-14 FY 2012-13 FY 2011-12 Rural Transformation Health Education Sports for Development Others Total 107 314 215 9 7 652 127 608 18 4 4 761 166 417 80 1 48 712 74 141 67 -- 69 351 24 91 75 -- 61 251 Sustainable development is one of the key principles of Reliance’s CSR. Reliance’s initiatives are aligned towards five broad dimensions of sustainability, viz., Planet, People, Products and Processes, Prosperity and Peace and Partnerships. Following sections provide the activities in line with these five dimensions. 1 Planet RT He En Ed SD DR A&C The key activities conducted during the year include water harvesting and conservation, provision of clean drinking water to villages and trainings on sanitation, energy conservation, environment protection and cleanliness. WATER SECURITY Reliance made a modest contribution by investing in building capacities of communities to harvest and conserve water. This has been achieved by building water harvesting and conserving structures, blending modern technologies with local situations and identifying needs in partnership with the community. Reliance has initiated water security initiatives in almost each of the 500 plus villages it engages with. Over 107 villages have been made water secure for drinking water while 46 of these villages Water conservation in a check dam at Moyari, Chhindwara, Madhya Pradesh 136 are fully secure for both agricultural and drinking needs. Since inception, 550 lakh cubic meters of rainwater harvesting and storage capacities (103 lakh cubic meters this year) have been created through more than 10,000 structures including earthen dams, check dams, masonry dams, farm ponds, dugwells, etc. These structures have not only improved the access to water and enhanced the agricultural productivity but also helped in creating ecological balance. Besides this, for effective use and management of water, ‘water user groups’ have also been formed. Currently, 5,211 farmers are part of the water user groups. Among other initiatives, hand pumps, submersible pumps, pipeline distribution systems and potable water storage tanks have been installed across different locations. Safe drinking water was provided to about 58,500 people across locations. Additionally, 58 reverse osmosis plants were provided to villages in and around Kakinada and Jamnagar. Case Study Water for prosperity Reliance supported the construction of ‘Gafa Earthen Dam’ in Fuljhar village near Jasdan city of Gujarat, with a water storage capacity of 5.54 lakh cubic meters. The dam has supported two villages – Fuljhar and Sompipliya, benefiting 158 households and 221 Ha of land irrigation. Even with less rainfall this year, the dam has harvested and conserved adequate water to avoid any drought situation. The dam has also changed the cropping pattern to enable farmers to grow non-kharif crops and increase crop yield. Overall, the reservoir has brought significant change to the ecosystem as well as to the economic wellbeing of farmers. 550 lakh cubic meters of water storage capacity created since inception Annual Report 2015-16Report on Corporate Social Responsibility (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. funds from different government schemes across villages to enhance the quality of life. Over 1,200 toilets were constructed across villages to enhance the quality of life Impact of Planet Initiatives Villages serving as models of water harvesting and conservation Reduced dependence on rain Improved biodiversity Increased productivity Reinforced sustainable environmental practices Improved sanitation in rural areas 2 People RT He En Ed SD DR A&C Reliance works on various activities for the wellbeing of different sections of society. These activities include providing access to quality education, access to higher education opportunities through scholarships, promoting skills in sports, ensuring access Information Service GPS Training Programme 137 4.25 lakh metric tonnes of soil conserved ENVIRONMENT AND ENERGY Reliance is working relentlessly towards developing more friendly business solutions. sustainable and environment Through multiple initiatives, Reliance has undertaken measures for resource conservation, promotion of biodiversity and the use of cleaner energy sources. To promote biodiversity, more than 5.4 lakh (120 lakh since inception) saplings have been planted across the intervention areas during the year. In addition, 1.1 lakh metric tonnes of soil was conserved during the year (4.25 lakh metric tonnes since inception). Reliance celebrated World Environment Day across project locations to build community ownership towards conserving biodiversity. Over 120 lakh saplings have been planted since inception ‘SWACHH BHARAT’ INITIATIVES In support of the Government of India’s ‘Swachh Bharat Mission’, 400 volunteers from Jamnagar, Gujarat have pledged towards ‘clean villages’. The volunteers have organised film screenings and programmes to address issues such as clean environment, sanitation and personal hygiene; and promote zero open defecation, water harvesting and reduction in the use of plastics. In addition, over 1,200 toilets were constructed by leveraging Report on Corporate Social ResponsibilityGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147 to quality healthcare, providing maternal and child health services and improving food and nutrition security. PROMOTION OF EDUCATION DHIRUBHAI AMBANI SCHOLARSHIP PROGRAMME The Dhirubhai Ambani Scholarship (DAS) Programme aims to fulfil late Shri Dhirubhai Ambani’s vision of providing opportunities to the youth and empowering them towards becoming future leaders. Initiated in 1996, the scholarship is awarded to meritorious students of standard XII to pursue higher education. The students are selected based on financial need and the merit list is provided by the State/ CBSE Board. During the current year, 464 students including 149 specially- abled students were selected to form the 19th Batch of Dhirubhai Ambani Scholars. So far, 10,921 students have been supported under this programme, of which half are girls and one fourth are specially-abled. A considerable number of students among these pursue professional courses like medicine and engineering. RELIANCE DHIRUBHAI AMBANI PROTSAHAM SCHEME Reliance Dhirubhai Ambani Protsaham Scheme supports financially poor and meritorious students (Class X pass-outs) from the East Godavari District of Andhra Pradesh. Recipient students of this scheme are provided scholarships to attend junior colleges of their choice to pursue engineering and medical streams. A total of 140 underprivileged meritorious students were selected in the scheme for the academic year 2015-16 (1,953 since inception). In addition, 56 and 23 students in Gadimoga and Shahdol respectively, received scholarships for higher education. More than 12,000 students including 2,263 specially-abled students benefited from the scholarships since inception DHIRUBHAI AMBANI INTERNATIONAL SCHOOL A school should instil in a child a lifelong love for learning and knowledge and provide the foundation for holistic development and excellence. These aims have been the fundamental inspiration behind the creation of Dhirubhai Ambani International School (DAIS), Mumbai. The school prepares students for the ICSE, the IGCSE and the IB Diploma Examinations. It is a member of the Cambridge International Primary Programme. Over the years, the School has achieved highest standards of excellence on all performance parameters. In 2015, Education World ranked DAIS as the No. 1 International School in India for the third consecutive year, with the School being ranked No. 1 on crucial parameters of ‘academic reputation’, ‘leadership/ management quality’, ‘teacher welfare and development’ and ‘special needs 138 Counselling programme for students of Reliance Dhirubhai Ambani Protsaham scheme education’. The Times School Survey 2015, ranked DAIS the No. 1 School in Mumbai in the ‘National + International School’ category. The students have consistently achieved outstanding results across all three curricula – the ICSE, the IGCSE and the IB Diploma. The 11th batch of IB Diploma, the Class of 2015, earned an average of 40 points (out of the maximum possible score of 45), the highest that the school has ever achieved. From the Class of 2015, six students obtained the perfect score of 45 points, achieved by only 10 students in South Asia and 177 worldwide. The IB results place DAIS among the world’s top IB schools. The IB Diploma graduates from the Class of 2015 have earned admissions in 16 of the top 25 global universities like Oxford, Cambridge, Stanford, Princeton, Columbia and Brown, to name a few. Many top-tier universities have offered scholarships to the students. In 2015, 88.84% of all IGCSE grades achieved were A* and A grades. Year after year, DAIS’ students have topped the world and topped in India in several subjects. In 2015, two students topped the world in Physics and seven students topped in India in various subjects. In 2015, the School’s average ICSE score was 96.19%; all 31 students scored 92% and above and the topper scored 99.40%. During 2015, DAIS students won 378 state-level, 35 national and 20 international awards in various sporting and co-curricular activities. RELIANCE FOUNDATION SCHOOLS Besides DAIS, Reliance supports 12 more schools located in Jamnagar, Surat, Vadodara, Lodhivali, Nagothane, Nagpur and Navi Mumbai. The schools offer kindergarten to class 12 programmes affiliated to CBSE, Gujarat State Board and Maharashtra State Board. During the year, some of these schools and its students achieved several recognitions such as 100 Annual Report 2015-16Report on Corporate Social Responsibility (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.percent result in Class X and XII exams, 100 percent distinctions in Class XII science stream, a scholarship won in National Financial Literacy Assessment Test and representation and participation of students in various sports and development activities. DAIS ranked as the No. 1 school by Education World for three consecutive years EDUCATION FOR SPECIALLY-ABLED CHILDREN Reliance has set up an Early Intervention and Rehabilitation Centre in Thallarevu, Andhra Pradesh to facilitate and enhance the development process of children with speech and hearing impairment. The Centre provides special training on therapeutic needs of around 60 children; and is equipped with special education appliances. It also provides awareness programmes on disabilities and training skills for specially-abled children. JIO SCHOOLS In order to improve the teaching learning processes and quality of education, Reliance has entered into partnerships with the Department of Education, Government of Andhra Pradesh and Government of Gujarat to implement education programmes through the use of Jio technology. This programme reached out to 85 schools in Andhra Pradesh and 10 schools in Gujarat in FY 2015-16. Reliance has also extended support to the schools in tribal areas by setting up computer aided learning centres. The schools have been provided with computer systems, necessary infrastructure and digital classroom content. Over 3,500 students have been regularly using the facilities. Reliance has also helped enhance Early Intervention and Rehabilitation Centre in Thallarevu education infrastructure by providing necessary furniture at various locations across India. RELIANCE UNIVERSITY Work is in progress to set up a globally benchmarked, multi- disciplinary University in Maharashtra. It will provide an enabling environment and cutting-edge research facilities. PANDIT DEENDAYAL PETROLEUM UNIVERSITY Reliance has supported Pandit Deendayal Petroleum University to further strengthen the institution and conduct additional programmes. The University offers multiple courses including engineering, arts and management. It provides exposure and opportunities to its students through various national and exchange programmes with the best universities worldwide. PROMOTION OF SPORTS FOR DEVELOPMENT RELIANCE FOUNDATION JR. NBA The Reliance Foundation Jr. NBA programme is a comprehensive school-based youth basketball programme, which has reached over 28 lakh youth across 18 cities in India since 2013. Through this collaborative programme, Reliance is committed to ignite passion in millions of youth to explore and enjoy sports. The programme promotes health, fitness and an active lifestyle through basketball and teaches the values of the game such as teamwork, sacrifice, discipline, dedication and sportsmanship. Over 28 lakh youth reached out through school-based basketball programme since inception YOUNG CHAMPS PROGRAMME Young Champs is a unique, full scholarship based, full-time residential football and education programme that aims to provide aspiring football talents from across country the opportunity to hone their skills with world-class facilities and best-in-class training. Under this programme, 23 children were awarded scholarships to develop their football skills. More than 34,500 footballs were distributed to over 6,520 village schools/ youth clubs to promote football in rural areas. COMMUNITY ENGAGEMENT Reliance launched a programme for rural children to bring about a positive change in attitudes related to education, gender inclusivity and fitness by engaging children through fun and play sessions. More than 2,500 children across 30 villages have been engaged under this programme in Agar district of Madhya Pradesh. The children are given friendly mentoring support from trained community youth on and off the field on activities such 139 Report on Corporate Social ResponsibilityGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147as hygiene and tree plantation drives. Additionally, over 850 rural children participated in sporting activities such as inter-village tournaments for volleyball, kho-kho and kabaddi. PROMOTION OF HEALTHCARE HEALTHCARE SERVICES Reliance addresses the primary care needs of the underprivileged through different static and mobile medical units at selected locations in Maharashtra, Uttarakhand, Madhya Pradesh, Gujarat, Andhra Pradesh and Uttar Pradesh. The interventions cater to the primary and preventive healthcare needs of the rural and urban poor. Eight fully-equipped Mobile Medical Units (MMUs) and four Static Medical Units (SMUs) with state-of-the-art technology, including cloud-based software to store patient information, serve the communities. These services are provided to the disadvantaged for necessary care at no cost. More than 5 lakh consultations have been provided during the year across different locations (over 35.6 lakh since inception), treating both communicable and non-communicable diseases. Over 35.6 lakh consultations provided to patients through Reliance’s health initiatives since inception HEALTHCARE DEDICATED TOWARDS WOMEN Reliance, through its mother and child initiative, is working on women’s health in urban and rural areas with a specific focus on nutrition and anaemia, pre- and post-natal quality care and improved menstrual hygiene in adolescent girls. In the urban slums of Mumbai and Navi Mumbai, services are provided through the MMUs and SMUs and in rural areas through trained community health workers. Health awareness camps for 120 lactating mothers were organised, pregnant women and focusing on creating awareness on pre- and post-natal care, early childhood education and preventive steps to be taken against the spread of seasonal diseases. Across locations, health and awareness camps were conducted for pregnant and lactating mothers for proper maternal and child healthcare. During the year, over 1,000 pregnant women were provided with antenatal and postnatal care services. Of these, 169 high risk pregnancies were identified and referred to higher facilities for management of complications. In addition, 8,480 women were screened for anaemia, of which, 3,165 women were diagnosed and received treatment for it. Reliance also set up the ‘Adolescent Girls’ Holistic Development Programme’ which included interactive learning sessions with 140 500 girls on topics including personal hygiene, healthy diet, etc. and health screening and a vaccination camp. DHIRUBHAI AMBANI HOSPITAL The Dhirubhai Ambani Hospital at Lodhivali near Patalganga, has provided free or subsidised healthcare to 1,941 patients during FY 2015-16. The Anti-Retroviral Therapy (ART) centre of the hospital, one of the largest, has registered a total of 3,577 persons with HIV/ AIDS since inception. 220 new persons with HIV/ AIDS were registered during FY 2015-16. All these patients have been provided free consultation, counselling, investigation and treatment. 15,835 consultations were performed at the centre during the year. Since inception, this number of consultations stands at 96,144. SPECIALISED CARE FOR HIV/ AIDS AND TUBERCULOSIS The Community Care Centre and Reliance AIDS Care Hospital is a fully-functional 28-bed hospital that provides diagnostic and curative services to HIV/ AIDS patients in Hazira, Gujarat. Over 4,500 infected patients have been admitted to the hospital till date. Additionally, the Reliance HIV and Tuberculosis Control Centre has been established in collaboration with NACO to provide HIV Counselling, testing and medical treatment at Hazira. This centre provides comprehensive diagnosis and treatment of Tuberculosis under a single roof, operational through Designated Microscopic Centre (DMC) and DOTS (Direct Observation Treatment Short course) programme. This year, 251 tests were done under DMC and 48 patients availed treatment under DOTS programme. Since inception, over 3,100 patients were served through DOTS centre. Two dedicated ART centres at Hazira, Gujarat and Patalganga, Maharashtra have reached out to people affected by HIV/ AIDS through more than one lakh patient consultations since inception. The centres offer comprehensive care in the form of counselling, testing and medicines for anti-retroviral therapy. Marriage bureau was organised at Hazira HIV centre for People Living with HIV/ AIDS wherein 585 PLHIV participated from various states including Gujarat, Rajasthan, Madhya Pradesh and Maharashtra. DRISHTI: CORNEAL TRANSPLANT SURGERIES Reliance’s Drishti programme, in association with the National Association for the Blind (NAB), through a network of 59 hospitals, supports the visually impaired. This initiative has brought light into the lives of thousands of visually impaired underprivileged people through 14,728 corneal transplants undertaken so far. Reliance also conducts events to increase awareness about the importance of eye donation. During FY 2015-16, around 13,000 people participated in a week long Drishti art and essay competition. Annual Report 2015-16Report on Corporate Social Responsibility (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.COMPREHENSIVE EYE CARE Reliance has set up a number of eye care centres across various locations. Specialised eye camps were set up to cater to villagers in coastal areas suffering from ‘Fishermen’s Cataract’ due to exposure to harsh sunlight. Additionally, a dedicated state-of- the-art ophthalmology Mobile Eye Clinic Facility was launched in Jamnagar, Gujarat during the year. The clinic is equipped to perform eye check-ups, lab tests and dispense medicines. Through these initiatives, 675 patients were provided cataract surgeries as well as post surgical health check-ups. SIR HN RELIANCE FOUNDATION HOSPITAL AND RESEARCH CENTRE Located in the heart of South Mumbai, the hospital in its 91st year, has been completely rebuilt by the Reliance Foundation led by its Chairperson, Smt. Nita M. Ambani into a modern 19-storey tower, including two heritage wings. Founded in 1925, it is Mumbai’s first general hospital and enjoys a rich heritage. This 345-bedded hospital has state-of-the-art operation theatres (equipped with robotic surgery and online video conferencing, enabling live consultations with global specialists), India’s first hybrid cath-lab for emergency heart operations and state-of- the-art diagnostics facility with Asia’s first new generation CT scan. State-of-the-art facilities at Sir HN Reliance Foundation Hospital The major thrust areas are Oncology, Neuro Sciences, Cardiac Sciences, Gynaecology & Paediatrics, Orthopaedic and Urology & Nephrology. As a multispecialty hospital, the Hospital offers medical, surgical and diagnostic services across a wide spectrum of diseases and disorders. The Hospital’s charity and free OPD services have been availed by a number of patients. In addition, free and concessional treatment including major surgeries are provided to disadvantaged sections of society. The hospital runs on the principle of providing the same level of treatment for citizens either at the bottom or top of the pyramid. The hospital has adopted energy conservation, water recycling and rainwater harvesting technologies. PROMOTION OF FOOD AND NUTRITION SECURITY With an objective to establish self-sufficiency in nutrition for all rural households, Reliance helped establish small kitchen gardens (Reliance Nutrition Gardens) to supplement the nutritional intake of rural households. In the current year, 3,411 such gardens (29,998 since inception) have been developed to enhance the nutritional intake of families. Nearly 30,000 Reliance Nutrition Gardens positively influenced nutritional intake since inception RELIANCE PARTNERED TO SET UP PROJECT ASMAN Reliance joined hands with the Bill & Melinda Gates Foundation, MSD in India, Tata Trust and the United States Agency for International Development to form Project ASMAN, a first-of-its kind ‘Continuum of Care – Health Alliance’ in India. Project ASMAN is aimed at reducing infant, neonatal and maternal mortality in India by facilitating the availability of quality healthcare under the five pillars of Government of India’s Reproductive, Maternal, New-born, Child Health and Adolescent Health Programme. ASMAN seeks to create a model to bring together private players to make significant progress in attaining the goal of providing healthcare for all. Additionally, the initiative aims to steer the nation towards its sustainable development goals. OTHER PARTNERSHIPS FOR HEALTHCARE Reliance supported Indian Head Injury Foundation on its mission to foster the development of a comprehensive brain trauma care system in India that includes prevention of traumatic brain injury through awareness, effective provision of pre-hospital care, timely diagnosis and treatment, and neuro-rehabilitation of head and spine injury victims. 141 Report on Corporate Social ResponsibilityGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147With the huge number of deaths occurring due to head injuries and its associated causes, the support extended has contributed in preventive measures including awareness campaigns on road safety, distribution of communication materials, providing medical and legal aid to poor victims of such incidents, providing aids and appliances to specially-abled people, conducting first-aid and primary trauma care courses, etc. Additionally, Reliance also supported Action for Autism initiative for the wellbeing of autistic children and support to their parents. MISSION ZERO MALNOURISHMENT PROJECT Reliance has set up a public-private partnership programme to minimise malnourishment among children in Nagothane. Phase I was implemented in 22 villages, where paediatric check-ups, medication and nutritious food support was carried out for 59 malnourished children, who achieved ‘normal status’ in a period of 6 months. There is continuous follow-up with workers and teachers to start Phase II of the project. Under the project, Reliance provided paediatric doctors on a monthly basis for medical check-ups, free medical support for all kids, nutritious food support and regular follow-ups and interactions with doctors, anganwadi teachers and parents. Reliance is also working towards abating malnourishment among children in urban slums of Mumbai/ Navi Mumbai as well as in rural India across several states with a focus on community ownership. Services provided include screening, medical check- up, medication, nutritional supplements as well as functional linkages with anganwadi and nutritional rehabilitation centres. So far, 12,283 children have been screened under this initiative. In Mumbai, severely and moderately malnourished children have shown 14% and 49% improvement rates, respectively. In Shahdol, 87.5% of the 249 malnourished children have been linked to either nutritional rehabilitation centres or anganwadi centres, of which 21% have shown improvement. 3 Products and Processes Ed SD RT DR A&C He En focuses To optimise outcomes, Reliance on process improvements and reaches out through technology and innovation. Through technology, Reliance aims to create a multiplier effect for sustainable socio-economic development. The processes are aimed to bring in ownership at the grassroot level for sustainability. PROCESS TO INDUCE MULTIPLIER EFFECT Reliance spends considerable time and energy in strengthening the processes at Village Farmer Associations (VFAs). It works towards building sustainability through promoting contribution by the communities and by enabling marginalised communities to utilise appropriate government schemes. The practice of voluntary contribution as decided in the village meetings to support activities for village development is encouraged. During the year, members of VFAs contributed a sum of `7.5 crore (`14.7 crore since inception) for their Village Development Fund. In the current fiscal, a total of `10.3 crore were accessed through government schemes such as MPLAD funds and other subsidy schemes available for accessing agricultural implements like micro irrigation, drip irrigation systems and seeds, among others. SOIL HEALTH CARD Reliance has implemented a scheme of soil health cards to help marginal farmers improve their yield. Appropriate advice is given to farmers based on soil tests conducted. This helps reduce the input and cost of fertilisers used. So far, more than 6,800 soil samples were tested, of which 670 tests were undertaken during FY 2015-16. Case Study Impact of People Initiatives Healthy soil makes a wealthy farmer Reduced school drop-out rates Students from marginalised community get access to better education Increased participation in sporting activities Improved access to quality healthcare services Using the soil health card scheme, Sanjay Awachat from Maharashtra was able to harvest 24 quintals of cotton from one acre of land as compared to an average of 7-8 quintals previously. By incorporating suggestions from the Reliance team, Mr. Awachat was able to reduce his expenses by one third. Thus, while his land productivity went up by three times, the input costs reduced by one third, resulting in significant financial savings. 142 Annual Report 2015-16Report on Corporate Social Responsibility (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. TECHNOLOGY IN HEALTHCARE Reliance and the University of Chicago have entered into an innovative collaboration to use technology based education, training, competency evaluation and clinical decision support. The collaboration is aimed at improving clinical diagnosis and supporting doctors in real-time and evidence-based clinical decision-making. The programme uses cloud-based software applications to train medical professionals through virtual patients and state- of-the-art clinical reasoning tools. These tools will help reduce diagnostic errors and help in saving many more lives globally. Through this programme, Reliance aims to enhance access to quality healthcare in India. Impact of Products and Processes Related Initiatives Ownership of the processes at grassroot level Technology as a multiplier for sustainable development Innovative development solutions Increased productivity Healthy soil makes a wealthy farmer 4 Prosperity RT He En Ed SD DR A&C Various initiatives were undertaken by Reliance to ensure economic wellbeing of the population it serves. Promoting sustainable agricultural practices was the main focus area, besides building additional livelihood skills beyond farming. By practising sustainable agriculture principles and using the additional skills learnt, communities can earn additional income throughout the year. The livelihood trainings provide farmers the stability in income so that they can, in adverse effects, sustain their livelihoods in the long-run. SUSTAINABLE AGRICULTURAL PRACTICES To ensure food security for marginal farmer households, Reliance promotes sustainable agricultural practices by building capacities of communities. This year, Reliance supported improving agricultural practices in 6,749 Ha of land for ensuring food security (53,934 Ha since inception). Through this initiative, the marginal farmer households benefited through increased production and income. Case Study Sustainable agriculture for enhanced livelihood Allu Narayamma from GC Palli Village, Andhra Pradesh, had the responsibility of taking care of her household through a three-acre plot she owned. The land was full of boulders and was uncultivated, as a result it was left fallow for a long period. She required aid in converting her wasteland into productive land. Reliance, through the Yugandhar VFA, supported her by providing her trainings on sustainable agricultural practices. Through the support from the VFA, she was able to convert her wasteland into a paddy field and mango orchard. Her net income increased from `850 to `16,450 per month. She is now seen as an inspiration for other farmers within the VFA for promoting chemical-free and eco-friendly farming. RESIDUAL MOISTURE AS A SOURCE OF INCOME Residual moisture from riverbeds have been used as a source of income for farmers in Birhuli village of Shahdol district, Madhya Pradesh. The concept was developed during a village meeting and gained momentum upon a large number of farmers showing interest. Reliance provided technical support to the village and provided seeds to 65 farmers spreading across 21 acres of land. 143 Report on Corporate Social ResponsibilityGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147 Long melon, cucumber and other cucurbits have been cultivated using the residual moisture of the riverbed of ‘Son’ river in Birhuli village. AGRICULTURAL FENCING In an effort to increase output, Reliance engaged and supported small and marginal farmers through fencing their lands from the raids of wild animals. This has helped farmers convert wasteland into agriculturally productive land. In one of the clusters Jamwa Ramgarh, Rajasthan, Reliance intervened and helped build fences of up to 277 kilometres, covering a total land area of 1,818 Ha. This has resulted in changes in cropping pattern and increased agricultural productivity. VERMI-COMPOSTING Reliance has helped farmers generate organic manure through vermi-composting. This practice has helped generate valuable organic fertiliser, reduce the load of waste disposal and avoided the ill effects of using chemical fertilisers. The use of vermi compost has reduced the cost of cultivation for farmers and increased their income. INFORMATION SERVICES FOR LIVELIHOOD ENHANCEMENT Reliance identifies the needs of rural population, formulates relevant solutions and implements them with an objective to enhance rural livelihoods in agriculture, marine fisheries and other farm and non-farm based activities. Reliance has set up a knowledge base with partners including research institutions, line departments, NGOs and knowledge providers. The purpose of this partnership is to ensure relevant information is shared with farmers and fisherfolk who require and can benefit from it. The information can help ensure safety during critical times as well as provide them the edge to enhance their livelihoods. The Information Services team of Reliance has partnered with INCOIS (Indian National Centre for Ocean Information Services) and IMD (Indian Meteorological Department), the nodal agencies of MOES (Ministry of Earth Sciences), to provide critical and valuable information about potential fishing zones and weather forecasts using satellite imagery. Information on weather forecasts helps the fisherfolk decide whether or not to venture out into the sea and reduces risk to life. The potential fishing zone information helps the fisherfolk get larger hauls in lesser time leading to improved income and time saved. 40,712 unique advisories (73,290 since inception) were successfully disseminated to more than 19 lakh farmers, fisherfolk and livestock during the year (over 20 lakh since inception). 144 Technology embedded information reached out to 20 lakh farmers, fisherfolk and livestock owners since inception PLANT CLINICS: PREVENTIVE AND CURATIVE CARE FOR CROPS Reliance has been supporting farmers through ‘Plant Clinics’ to reduce costs. Through these clinics, farmers can gain technical advice on how to protect and manage their crops. More than 100 mobile clinics have been conducted across seven states through which 2,728 farmers benefited. In addition, over 10 virtual plant clinics were successfully conducted using the Jio chat app where farmers send pictures of their diseased plants and get inputs from agri experts. 2,728 Farmers benefitted from ‘Plant Clinics’ initiative CRAFT TRAINING CENTRE A Craft Training Centre has been set up in Jamnagar, Gujarat, specifically to build skills of the rural people on welding, grinding, fitting and scaffolding. There is a structured training programme Skill building activities conducted for women Annual Report 2015-16Report on Corporate Social Responsibility (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.in place, managed by experienced trainers. The classrooms are equipped with new generation training aids. During FY 2015-16, 24,965 individuals were trained in the crafts of masonry, scaffolding, electrician and plumbing trades. Reliance set up a skill development centre in Allahabad to provide free computer education to marginalised students across villages. Additionally, in Nagothane, Maharashtra, the Lakshya Skill Development Programme was set up to train the youth for pre-examinations in police, army and navy services. 24,965 individuals trained through the craft training centre SKILL DEVELOPMENT AMONG RURAL YOUTH In line with the Skill India Campaign, various initiatives have been implemented across different sites in order to equip the youth with necessary skills to ensure employability. In a pilot programme on skill building, 100 youth were trained as retail assistants of which 69 were employed. More than 1,000 students were provided functional English supplementary classes to enhance their spoken and written English. Eleven stitching centres were set up in different villages, through which over 200 women were trained. MISSION RAHAT In times of natural disasters Reliance’s dedicated team manages relief operations, right from situational assessment to relief camps, distribution of relief material and construction of mid-term shelters. Reliance has the capacity to respond to disasters in a timely manner and directly engages with affected communities. Post relief efforts, it continues to work with the communities in the areas of livelihood, health and education. Relief operations were conducted in Tamil Nadu during flash floods and for drought proofing in Beed, Maharashtra. Since inception, Reliance has supported over 2.8 lakh individuals through disaster relief measures. Reached out to 2.8 lakh individuals through disaster relief measures since inception MISSION RAHAT-TAMIL NADU When the recent northwest monsoon wreaked havoc in Tamil Nadu, Andhra Pradesh and the union territory of Puducherry; the cities of Chennai, Thiruvallur, Cuddalore, Kancheepuram, Nagapattinam and Puducherry were most impacted. Reliance reached out proactively to a number of affected villages. More than 200 volunteers from across Reliance group rapidly conducted a survey of the inundated areas, assembled relief kits – containing food for 15 days, blankets, utensils and toiletries – and supplied them to marooned residents, often amid knee-deep water. Over 85,000 individuals were supported with relief materials including utensils, groceries and drinking water, among others. Reliance also organised 13 medical camps wherein 3,471 individuals were treated. In addition, 17 livestock camps were conducted treating more than 10,000 animals. 64 Primary Health Centres (PHCs) were supported through Poly woven medical disposal bed sheet and mats, towels and bed sheets. MISSION RAHAT – DROUGHT RELIEF IN MARATHWADA Beed district of Marathwada region in Maharashtra is the worst affected district in terms of drought and is infamous for farmer suicides. Reliance’s disaster management team has supported the affected communities in 25 villages of Kaij block of the district. So far, it has reached out to over 28,000 individuals. The programme focuses on ensuring income generation through livelihood opportunities beyond farming. Reliance supported marginal communities in 12 villages for accessing the ongoing Reviving of a traditional open well 145 Report on Corporate Social ResponsibilityGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act). This has resulted in generating more than 1.2 lakh wage days for 2,126 families. The programme also focuses on supply of drinking water. 25 water collection points have been built to ensure drinking water and its efficient distribution. In addition, 4 bore wells have been dug to ensure continuity of drinking water supply to over 4,000 households. Drought proofing is another strategy that has been implemented to find sustainable solutions to severe drought. 9 Dohas have yielded 4 lakh litres of water per day to meet the drinking water needs of 2,500 households. 13 check dams have been repaired and desilted to harvest around 17 lakh litres of rainwater in the upcoming monsoon. Impact of Prosperity Initiatives Improved standard of living Increased yield through dissemination of information Reduced migration for employment Ensuring alternate livelihood options for the marginal households Rehabilitated disaster-struck families Mission Rahat health camp 146 5 Peace and Partnerships Ed SD RT DR A&C He En Partnerships with various stakeholders are critical to bring in concerted efforts to address the needs of the community. Reliance has strategically partnered with oganisations to broaden its outreach and collaborate to find solutions across various platforms. PARTNERSHIPS In addition to direct engagement, Reliance, through its Foundation has partnered with other technical institutions and government and non-government organisations, to collaborate and undertake various programmes in the identified focus areas of operation. These partnerships are aimed to bring synergy with the ongoing national programmes as well as international commitments like SDGs. Reliance has collaborated with the National Association for the Blind for the Drishti programme, Indian Meteorological Department for weather based bulletins and the CRISIL Foundation for financial literacy programme for women in slum areas. Additionally, Reliance has set up alliances with four organisations to improve the quality of maternal and child care. Some of the partnerships with state governments include partnering with the Government of Maharashtra for supporting the Maternal and Child Health Mission and providing technical support to the Government of Madhya Pradesh for support in relocation of villages of the Tigris Project. The Foundation strongly believes that the combined efforts would significantly improve the quality of intervention while reaching out to the marginalised and vulnerable population. Some of the significant partners of the Foundation include: 1. Bill & Melinda Gates Foundation 2. CRISIL Foundation 3. Goat Trust, Lucknow, Uttar Pradesh 4. Government of Andhra Pradesh 5. 6. Jan Vikas, Beed, Maharashtra Indian Council of Agricultural Research (including regional Krishi Vigyan Kendras) 7. Indian National Centre for Ocean Information Services 8. Magic Bus India Foundation 9. MSD in India 10. Ministry of Earth Sciences 11. RedR-India, Pune, Maharashtra 12. Society of Pollution and Environmental Conservation Scientists, Dehradun, Uttarakhand 13. Tata Trust Annual Report 2015-16Report on Corporate Social Responsibility (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 14. The United States Agency for International Development 15. Uma Educational Society 16. University of Chicago Furthermore, for packaging and disseminating information on agricultural practices, weather forecasts and health advisories, information disseminators 600 knowledge partners and volunteered to support the Foundation’s initiatives across different states. GOVERNMENT PARTNERING WITH RELIANCE FOR ASSESSING IMPACT OF ADVISORIES impact of advisories of A study commissioned by the Ministry of Earth Sciences, conducted by the National Council of Applied Economic Research in partnership with Reliance’s Information Services team assessed the IMD (Indian Meteorological Department) and INCOIS (Indian National Centre for Ocean Information Services). The assessment presented the benefits that various crops have had through the weather prediction information. It has estimated that four principal crops have the potential to use the weather prediction information to generate an annual economic profit of `42,000 crore (www.moes.gov.in/writereaddata/files/MoES_PhaseIII_Final. pdf ). It is noteworthy that during the assessment period, Reliance’s Information Services have significantly contributed to the circulation of weather forecasts and marine advisories to farmers and fisherfolk across seven states. the memory of his father, Ustad Allah Rakha Khan. This concert featured renowned musicians who came together to pay tribute to the legendary Guru. ART TECH 2016 VELVI ART FOR AUTISM FESTIVAL Reliance brought the popular Art for Autism festival to Mumbai, where 17 autistic children participated and learned painting and photography skills. The festival was centred on the theme, ‘Combining technology with art’. The children were trained in both, technology assisted art and traditional art forms such as acting, modelling and photography. The festival was conducted by experienced facilitators from India, USA and Australia over three days. PARTNERING TO SUPPORT THE SPECIALLY- ABLED Reliance sponsored an Artificial Limbs Mobile Workshop van in Kakinada, Andhra Pradesh to cater to the needs of the district’s specially-abled. The mobile van, equipped with all the necessary equipment and trained staff, visits remote areas in the district as per a pre-announced timetable. The staff cater to the maintenance needs of the specially-abled, who do not have access to repair facilities for their prosthetic equipment and mobility aids such as crutches. So far, 650 specially-abled people have benefited from the facility. The mobile van is also used to generate awareness on social topics such as the negative impact of child marriage. PARTNERING FOR EDUCATION INITIATIVES The Education for All (EFA) initiative was launched in 2010 to facilitate vulnerable children’s access to high-quality education. In FY 2015-16, Reliance and Mumbai Indians partnered with six NGOs, including Akanksha Foundation, Aseema Charitable Trust, Aarambh, Mumbai Mobile Creches (MMC), Meljol and Ummeed. The EFA partner NGOs worked in the areas of access to education, promotion of education for the girl child and building capacities of differently-abled children. Through these partnerships, the programme has cumulatively reached out to nearly 70,000 children since inception. PARTNERING TO SUPPORT CARE AND WELFARE OF ANIMALS Reliance supported an organisation, People for Animals, to provide care and welfare of domestic street animals and birds, besides spreading awareness on animal welfare and vegetarianism. Besides, Reliance conducted livestock camps for treating domestic animals across various locations. In this year, more than 46,500 livestock were treated through 238 camps (over 75,000 livestock through 302 camps since inception). ARTS, CULTURE AND HERITAGE Under its initiatives, Reliance supported few organisations for promotion of Indian Arts, Culture and Heritage. Recognising the value of preserving them for India’s future generations, Reliance has made conscious efforts to ensure its continuity. ABBAJI ANNUAL CONCERT 2016 In this year, Reliance continued extending support to the annual concert, “Abbaji”, organised by Ustad Zakir Hussain in Impact of Peace and Partnerships Initiatives Partnership with organisations brought synergy in social development Protection of Indian Arts, Culture and Heritage For business specific CSR initiatives including product stewardship approach Chemistry for Smiles, Clean Fuels, Kushal Kela Vikas Abhiyan etc. please refer Management’s Discussion & Analysis report. 147 Report on Corporate Social ResponsibilityGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147 Business Responsibility Report INTRODUCTION It is a privilege to present Reliance Industries Limited’s (RIL’s) fourth Business Responsibility Report for the FY 2015-16. The Company’s endeavour is to create value for the nation, enhancing the quality of life across the entire socio-economic spectrum. Besides, it also aims to help spearhead India as a global leader in the domains where it operates. The Company strives to seek greater alignment between its stakeholders to generate value in the long-term. RIL’s strategy and framework reinforce the necessity to contribute to the evolving market demands. The Company aims to develop products and services centred on driving customer satisfaction, while contributing to the overall objective of community development. The Company is committed to operate and grow its business in a socially responsible way. The core values strengthening RIL’s business actions comprise of Customer Value, Ownership Mindset, Respect, Integrity, One Team and Excellence. Principles 1 Principles 2 3 Businesses should conduct and govern themselves with Ethics, Transparency and Accountability Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle Businesses should promote the well-being of all employees 4 5 6 Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised Businesses should respect and promote human rights Businesses should respect, protect and make efforts to restore the environment 7 8 9 Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner Businesses should support inclusive growth and equitable development Businesses should engage with and provide value to their customers and consumers in a responsible manner 148 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.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 major locations include Turkey, Malaysia, China, UK, Netherlands and USA. ii) Number of national locations: RIL has carried out business activities in over 50 domestic locations. The Company’s 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/ 5. E-mail ID: sustainability.report@ril.com international: 6. Financial Year Reported: 2015-16 7. Sector(s) that the Company is engaged in (industrial activity code-wise): Refining, Petrochemicals (Polymers, Polyester and Fibre Intermediates), Exploration and Production of Oil & Gas and Textiles. Industrial Group Description 061 192 201 203 062 131 139 Extraction of crude petroleum Manufacture of refined petroleum products Manufacture of basic chemicals, fertilisers and nitrogen compounds, plastic and synthetic rubber in primary forms Manufacture of man-made fibres Extraction of natural gas Spinning, weaving and finishing of textile Manufacture of other textiles As per National Industrial Classification – The Ministry of Statistics and Programme Implementation 8. List three key products/ services that the Company manufactures/ provides (as in balance sheet): i) Transportation fuels ii) Polymers iii) Polyester fibre 9. Total number of locations where business activity is undertaken by the Company: i) Number of international locations (provide details of major five): RIL has undertaken business activity international in eight locations (on standalone basis). The In addition to serving Indian markets, RIL exported to 110 countries worldwide as on 31st March, 2016. SECTION B FINANCIAL DETAILS OF THE COMPANY 1. Paid-up capital (INR): 3,240 crore 2. Total turnover (INR): 2,51,241 crore 3. Total profit after taxes (INR): 27,417 crore 4. 5. Total spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%): 2.38% in which the Corporate Social List of activities Responsibility (CSR) expenditures have been incurred: The major areas in which the CSR expenditure has been incurred include: 1. Rural transformation 2. Environment 3. Health 4. Education 5. Sports for development 6. Disaster response 7. Arts, culture and heritage SECTION C OTHER DETAILS 1. Subsidiary company/ companies The number of RIL’s subsidiary companies as on 31st March, 2016 was 95 as per details given in Annexure A to Consolidated Financial Statements. 149 Business Responsibility Report148255GovernanceCorporate OverviewFinancial StatementsShareholder Information55147Management Review2563793803960254 2. Participation of subsidiary company/ companies in the Business Responsibility Initiatives of the parent company SECTION D BR INFORMATION (BR) Various Business Responsibility initiatives are undertaken throughout the year and RIL encourages its subsidiary companies to participate in its group-wide BR initiatives on several topics. The Company’s CSR mission is to continue growing as a responsible organisation that believes in enriching lives of those around it. All subsidiaries are well-aligned with the CSR activities under the Reliance Foundation. During FY 2015-16, RIL’s subsidiaries like Reliance Retail Limited and Reliance Trading Limited participated in various initiatives across several areas. These include farm engagement activities, training and skill development of youth, community development activities and promotion of education, among others. Reliance Retail Limited has joined hands with Akshay Patra, an NGO, which serves freshly-cooked food to over 1.4 million children in more than 10,000 schools across 10 states in India. 3. Participation and percentage of participation of other entity/ entities (e.g. suppliers and distributors, among others) that the Company does business with, the BR initiatives of the Company Stakeholders have the ability to influence the way a company is perceived. RIL engages with several stakeholders like suppliers, distributors, local communities, government and other entities in the value chain. The Company collaborates with all relevant stakeholders as part of its BR initiatives. Considering the spread of RIL’s value chain, at present, the number of entities which directly participate in the BR initiatives would be less than 30%. RIL standalone constitutes of `27,417 crore of the profit & `240,176 crore of the net worth. 1. Details of Director/ Directors responsible for BR a) Details of the Director/ Directors responsible for implementation of the BR policy/ policies The Corporate Social Responsibility and Governance (CSR&G) Committee of the Board of Directors is responsible for implementation of BR policies. The members of the CSR&G Committee include: DIN Number: 00001879 Name: Shri Yogendra P. Trivedi (Chairman) Designation: Independent Director DIN Number: 00001620 Name: Shri Nikhil R. Meswani Designation: Executive Director DIN Number: 00001982 Name: Dr. Dharam Vir Kapur Designation: Independent Director DIN Number: 00074119 Name: Dr. Raghunath A. Mashelkar Designation: Independent Director b) Details of the BR head Sl. No. Particulars Details 1 2 3 4 5 DIN Number (if applicable) 00001879 Name Designation Telephone Number E-mail ID Shri Yogendra P. Trivedi Independent Director 022 - 22842463 trivedi_yogendra@yahoo.co.in Reliance Corporate Park 150 Annual Report 2015-16Business Responsibility Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 2. Principle-wise as per National Voluntary Guidelines (NVGs) BR Policy/ Policies (Reply in Y/N) Questions Sl. No. 1 2 3 4 5 6 7 8 9 10 Do you have policy/ policies for... Has the policy been formulated in consultation with relevant stakeholders? Does the policy conform to any national/ international standards? If yes, specify. (The policies are based on NVG, 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 been approved by the Board? If yes, has it been signed by the MD/ owner/ CEO/ appropriate Board Director? Does specified the Company have a committee of the Board/ Director/ Official to oversee the implementation of the policy? Indicate the link to view the policy online. relevant Has the policy been formally communicated to all internal and external stakeholders? Does the Company have in-house structure to implement its 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? P1 P2 P3 P4 P5 P6 P7 P8 P9 Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Please refer below for linkages of these policies with BR principles and page no. 155 for web links. The policies have been communicated to RIL’s internal and external stakeholders. The BR policies are communicated through this report. Besides, the Company will also explore other formal channels to communicate with more relevant stakeholders. Yes, the CSR&G Committee of the Board of Directors is responsible for the implementation of RIL’s policies. Yes, any grievance or feedback related to the policies can be sent to sustainability.report@ril.com. CSR&G Committee of the Board of Directors is responsible for addressing stakeholder concerns related to BR policies. The BR policy is evaluated internally. Policies pertaining to health, safety and environment have been audited by external agencies, viz. DNV, LRQA and BVQI. Linkages of various Company policies with BR Principles as per NVG Principle No. 1 2 3 4 NVG Principle Reference Document Reference Section Businesses should conduct and govern themselves with Ethics, Transparency and Accountability. Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle. Businesses should promote the well-being of all employees. Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised. Sections 2, 3, 5 and 7 Customer Value Section 3 Section 6 Customer Value Code of Conduct Values and Behaviours Our Code Code of Conduct Values and Behaviours Corporate Social Responsibility Policy Section 3 Health, Safety & Environment Policy Code of Conduct Values and Behaviours Code of Conduct Our Code Please refer page no. 155 for web link Sections 3, 4, 6 and 8 Excellence Value Sections 5 and 6 Section 5 Corporate Social Responsibility Policy Section 3 151 Business Responsibility ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Principle No. 5 6 7 8 9 NVG Principle Reference Document Reference Section Businesses should respect and promote human rights. Businesses should respect, protect and make efforts to restore the environment. Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner. Businesses should support inclusive growth and equitable development. Businesses should engage with and provide value to their customers and consumers in a responsible manner. Sections 6 and 8 Code of Conduct Our Code Section 5 Corporate Social Responsibility Policy Section 3 Environment Policy Code of Conduct Please refer page no. 155 for web link Sections 5 and 6 Section 5 Please refer page no. 155 for web link Our Code Health, Safety & Environment Policy Corporate Social Responsibility Policy Section 3 Customer Value Values and Behaviours Sections 2 and 5 Our Code Section 5 Code of Conduct Corporate Social Responsibility Policy Section 3 Detailed description of NVG NVG Principle Reference Document Reference Section Section 7 Section 5 Code of Conduct Code of Conduct Section 2 Section 3 Values and Behaviours Customer Value Code of Conduct Our Code Businesses should conduct and govern themselves with Ethics, Transparency and Accountability Businesses should develop governance structures, procedures and practices that ensure ethical conduct at all levels; and promote the adoption of this principle across its value chain. Businesses should communicate transparently and ensure access to information about their decisions that impact relevant stakeholder. Businesses should not engage in practices that are abusive, corrupt or anti-competitive. Businesses should truthfully discharge their responsibility on financial and other mandatory disclosures. Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle Please refer page no. Businesses should assure safety and optimal resource use over the life cycle of 155 for web link the product – from design to disposal – and ensure that everyone connected with it- designers, producers, value chain members, customers and recyclers are aware of their responsibilities. Businesses should raise the consumers’ awareness of their rights through education, product labelling, appropriate and helpful marketing communication, full details of contents and composition and promotion of safe usage and disposal of their products and services. While designing the product, businesses should ensure that the manufacturing processes and technologies required to produce it are resource efficient and sustainable. Businesses should regularly review and improve upon the process of new technology development, deployment and commercialisation, incorporating social, ethical, and environmental considerations. Businesses should recognise and respect the rights of people who may be owners of traditional knowledge and other forms of intellectual property. Businesses should recognise that over-consumption results in unsustainable exploitation of our planet's resources and should therefore promote sustainable consumption, including recycling of resources. Please refer page no. 155 for web link Corporate Social Responsibility Policy Corporate Social Responsibility Policy Health, Safety & Environment Policy Health, Safety & Environment Policy Values and Behaviours Customer Value Code of Conduct Section 3 Section 6 Section 3 Principle No. 1 2 152 Annual Report 2015-16Business Responsibility Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.NVG Principle Reference Document Reference Section Section 4 Section 6 Section 8 Code of Conduct Code of Conduct Code of Conduct Code of Conduct Code of Conduct Businesses should promote the well-being of all employees Businesses should respect the right to freedom of association, participation, collective bargaining and provide access to appropriate grievance redressal mechanism. Businesses should provide and maintain equal opportunities at the time of recruitment as well as during the course of employment irrespective of caste, creed, gender, race, religion, disability or sexual orientation. Businesses should not use child labour, forced labour or any form of involuntary labour, paid or unpaid. Businesses should provide facilities for the well-being of all employees. Businesses should provide a workplace environment that is safe, hygienic, humane and which upholds the dignity of the employees. Business should communicate this provision to their employees and train them on a regular basis. Businesses should ensure continuous skill and competence upgradation of all employees by providing access to necessary learning opportunities, on an equal and non-discriminatory basis. They should promote employee morale and career development through enlightened human resource interventions. Businesses should create systems and practices to ensure a harassment free workplace where employees feel safe and secure in discharging their responsibilities. Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised Businesses should systematically identify their stakeholders, understand their concerns, define purpose and scope of engagement, and commit to engaging with them. Businesses should acknowledge, assume responsibility and be transparent about the impact of their policies, decisions, product & services and associated operations on the stakeholders. Businesses should give special attention to stakeholders in underdeveloped areas. Values and Behaviours Excellence Value Section 3 Section 3 Code of Conduct Code of Conduct Code of Conduct Sections 5 & 6 Sections 5 & 6 Section 4 Section 3 Corporate Social Responsibility Policy Our Code Our Code Section 5 Section 5 Principle No. 3 4 5 Businesses should resolve differences with stakeholders in a just, fair and equitable manner. Businesses should respect and promote human rights Businesses should understand the human rights content of the Constitution of India, national laws and policies and the content of International Bill of Human Rights. Businesses should appreciate that human rights are inherent, universal, indivisible and interdependent in nature. Businesses should integrate respect for human rights in management systems, in particular through assessing and managing human rights impacts of operations, and ensuring all individuals impacted by the business have access to grievance mechanisms. Businesses should recognise and respect the human rights of all relevant stakeholders and groups within and beyond the workplace, including that of communities, consumers and vulnerable and marginalised groups. Businesses should within their sphere of influence, promote the awareness and realisation of human rights across their value chain. Businesses should not be complicit with human rights abuses by a third party. Code of Conduct Section 6 Code of Conduct Our Code Sections 6 & 8 Section 5 Code of Conduct Section 6 Code of Conduct Section 6 Code of Conduct Section 6 153 Business Responsibility ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254NVG Principle Reference Document Reference Section Section 3 Section 3 Section 3 Section 3 Environment Policy Environment Policy Corporate Social Responsibility Policy Corporate Social Responsibility Policy Corporate Social Responsibility Policy Corporate Social Responsibility Policy Please refer page no. 155 for web link Businesses should respect, protect and make efforts to restore the environment Businesses should utilise natural and manmade resources in an optimal and responsible manner and ensure the sustainability of resources by reducing, reusing, recycling and managing waste. Businesses should take measures to check and prevent pollution. They should assess the environmental damage and bear the cost of pollution abatement with due regard to public interest. Businesses should ensure that benefits arising out of access and commercialisation of biological and other natural resources and associated traditional knowledge are shared equitably. Businesses should continuously seek to improve the environmental performance by adoption of cleaner production methods, promoting use of renewable energy. Businesses should develop Environment Management Systems (EMS) and contingency plans and processes that help them in preventing, mitigating and controlling environmental damages and disasters, which may be caused due to their operations or that of a member of their value chain. Businesses should report their environmental performance, including the assessment of potential environmental risks associated with their operations, to the stakeholders in a fair and transparent manner. Please refer page no. Businesses should proactively persuade and support their value chain to adopt 155 for web link this principle. Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner Businesses, while pursuing policy advocacy, must ensure that their advocacy positions are consistent with the Principles and Core Elements contained in these Guidelines. To the extent possible, businesses should utilise the trade and industry chambers and associations and other such collective platforms to undertake such policy advocacy. Businesses should support inclusive growth and equitable development Businesses should understand their impact on social and economic development and respond through appropriate actions to minimise the negative impacts. Businesses should innovate and invest in products, technologies and processes that promote the well-being of of the society. Businesses should make efforts to complement and support the development priorities at local and national levels, and assure appropriate resettlement and rehabilitation of communities who have been displaced owing to their business operations. Businesses operating in regions that are underdeveloped should be especially sensitive to local concerns. Businesses should engage with and provide value to their customers and consumers in a responsible manner Businesses, while serving the needs of their customers, should take into account the overall well-being of the customers and that of society. Corporate Social Responsibility Policy Corporate Social Responsibility Policy Please refer page no. 155 for web link Please refer page no. 155 for web link Health, Safety & Environment Policy Environment Policy Code of Conduct Code of Conduct Our Code Section 5 Section 6 Section 3 Section 5 Section 3 Values and Behaviours Customer Value Our Code Code of Conduct Section 2 Section 5 Businesses should ensure that they do not restrict the freedom of choice and free competition in any manner while designing, promoting and selling their products. Principle No. 6 7 8 9 154 Annual Report 2015-16Business Responsibility Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Principle No. NVG Principle Businesses should disclose all information truthfully and factually, through labelling and other means, including the risks to the individual, to society and to the planet from the use of the products, so that the customers can exercise their freedom to consume in a responsible manner. Wherever required, businesses should also educate their customers on the safe and responsible usage of their products and services. Businesses should promote and advertise their products in ways that do not mislead or confuse the consumers or violate any of the principles in these Guidelines. Businesses should exercise due care and caution while providing goods and services that result in over exploitation of natural resources or lead to excessive conspicuous consumption. Businesses should provide adequate grievance handling mechanisms to address customer concerns and feedback. Reference Document Values and Behaviours Customer Value Reference Section Values and Behaviours Customer Value Corporate Social Responsibility Policy Section 3 Our Code Section 5 Links 1. Environment Policy http://www.ril.com/Sustainability/HealthSafety.aspx 2. Health, Safety and Environment Policy http://www.ril.com/Sustainability/HealthSafety.aspx 3. Corporate Social Responsibility Policy http://www.ril.com/InvestorRelations/Downloads.aspx 4. Our Code http://www.ril.com/InvestorRelations/Downloads.aspx 5. Code of Conduct http://www.ril.com/InvestorRelations/Downloads.aspx 6. Values & Behaviours http://www.ril.com/InvestorRelations/Downloads.aspx 3. Governance related to BR a) Frequency with which the Board of Directors, Committee of the Board or CEO meet to assess the Company’s BR performance The CSR&G Committee & the Board of Directors annually assesses the Company’s BR performance. b) BR and Sustainability Reports published; frequency and link of published reports RIL publishes its Sustainability Report annually, based on Global Reporting Initiative’s latest reporting guidelines. The Company has been publishing the GRI A+ application1 level check reports since FY 2005-06. The Sustainability Reports published till date are available at http://www.ril.com/Sustainability/CorporateSustainability.aspx 1 Declaring 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. 1. COVERAGE OF POLICY RELATING TO ETHICS, BRIBERY AND CORRUPTION (E.G. JOINT VENTURES, SUPPLIERS, CONTRACTORS AND NGOS, AMONG OTHERS) At RIL, the Code of Conduct serves as a roadmap to all employees of the Company and subsidiaries across all levels and grades. The Company has adequate control measures in place to address the issues relating to ethics, bribery, and corruption in the context of appropriate policy. This mechanism includes directors, senior executives, officers, employees (whether permanent, fixed-term or temporary) and third parties including suppliers & business partners associated with RIL, who share the same business values. The well-defined policy lists tenets on ethical business conduct, definitions and the framework for reporting concerns. 155 Business Responsibility ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 2. STAKEHOLDER COMPLAINTS RECEIVED IN THE PAST FINANCIAL YEAR AND PERCENTAGE OF COMPLAINTS SATISFACTORILY RESOLVED BY THE MANAGEMENT. RIL received 14,730 investor complaints from its shareholders during FY 2015-16, which were promptly resolved. No complaint was outstanding, as on 31st March, 2016. Besides, 2,326 customer complaints were received of which 2,137 were successfully resolved by the year ending 31st March, 2016. Subsequently, most of these complaints have been resolved. RIL’s code of conduct has a provision for all RIL’s stakeholders to freely share their concerns and grievances with the Company through a structured mechanism. For specific details, please refer to the Directors’ Report. Principle 2 PRODUCTS LIFE CYCLE SUSTAINABILITY BUSINESSES SHOULD PROVIDE GOODS AND SERVICES THAT ARE SAFE AND CONTRIBUTE TO SUSTAINABILITY THROUGHOUT THEIR LIFE CYCLE CREATING SUSTAINABLE PRODUCTS IS A PART OF RIL’S ENDEAVOUR TOWARDS RESPONSIBLE PRODUCT STEWARDSHIP. THE COMPANY 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 As a global business leader, RIL’s constant endeavour is to address concerns towards the environment and the society and imbibe the same in its business processes. Some such products created during FY 2015-16 include: A) RELBITS: RelBitS is a proprietary product made from elemental sulphur, which is a refinery by-product. Sulphur has many applications but due to its high cost and the problems of Hydrogen Sulphide (H2S) emissions, its commercial application is confined. RIL’s efforts towards improving the addition of sulphur to bitumen has resulted in a promising solution. The Company’s product is specially designed sulphur that fixes hydrogen sulphide produced within bitumen. RelBitS has features that allow it to be mixed with bitumen during hot mix preparation, without affecting the environment. It has been tested at expert labs in India for rut resistance and fatigue at various loads. The studies have shown high rut resistivity, as well as higher fatigue resistance (@ 156 200 micron strain), compared to standard bituminous asphalt. B) ORIENTED PVC PIPES (OPVC) FOR HIGH PRESSURE WATER SUPPLY OPVC pipes have a huge scope in drinking water supply systems across the country. It has been observed that OPVC pipes consume approximately half of the energy required for Ductile Iron (DI) pipes. OPVC pipes require less energy for the extraction of raw materials, production of pipes, transportation and installation, usage and even for recycling, compared to ductile iron pipes. Due to the low energy requirement, the Company is able to save money, along with reduction in GHG emissions. Several meetings with various government bodies were initiated to emphasise on the benefits of OPVC pipes. RIL organised meetings with leading pipe processors and technology providers to establish a venture for manufacturing OPVC pipes in India. With the Company’s efforts, companies like Modi Group (Chennai) and Optiflux (Jodhpur) have also ventured into manufacturing of OPVC pipes with licensing the technology from Molecor Inc. Spain. C) SAFE AND ENVIRONMENTALLY FRIENDLY LINEAR ALKYL BENZENE (LAB) MANUFACTURE LAB is produced by alkylation of benzene with olefins in the presence of Hydrogen Fluoride (HF). Safe operation with HF has been a significant topic of discussion. There is a need for replacing the existing technology with non-HF technology. RIL has developed ionic liquid catalyst technology, which can be retrofitted to existing LAB plants with minor changes. The developed ionic liquid catalyst is non-toxic and can replace the existing HF process, thereby eliminating the safety and operating risks associated with the manufacture of LAB. The Company’s ionic liquid catalysts are also more productive than HF, providing an opportunity for capacity expansion. The ionic liquid-based process has been demonstrated at the pilot scale and a design package has been prepared to retrofit the LAB plant in Patalganga. This technology meets RIL’s aim of making its products and processes safe and eco-friendly. 2. PROCEDURES IN PLACE FOR SUSTAINABLE SOURCING (INCLUDING TRANSPORTATION) AND PERCENTAGE OF INPUTS SOURCED SUSTAINABLY Sustainable sourcing at RIL represents contribution to the five strategic pillars: Energy Management, Environment Responsibility, Product Stewardship, Occupational Health Annual Report 2015-16Business Responsibility Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. and Safety and Social Institution Building. The Company has adopted RC-14001 international environmental management system to effectively manage its activities like manufacturing, distribution and the use of chemicals in the products. To improve the protection of human health and the environment, the Company has sourced REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) compliant materials, and its requirements include that its Tier 1 suppliers also procure REACH- compliant materials. RIL ensures 100% compliance of statutory laws and regulations, and of labour laws by its contractors. Sustainable sourcing key initiatives are undertaken through the following areas:- Green packaging Supplier collaboration Development of India’s engineering talent Environment improvement Contract work care Procurement & Contract Academy Regeneration/safe disposal Community support Digitally stitched Procure to Pay cycle (P2P) For effective disposal of waste, the Company audits its processors’ operations to ensure credible disposal practices. RIL prefers vendors who undertake green initiatives and Packaging of Polyester Bobbins recycled fully continuously exercise the practise of reduce, reuse and recycle. The Company takes special care in safe handling of its materials and also does necessary investigation of entire logistics handling/ storage, from supplier factory to its gate. 3. STEPS TAKEN TO PROCURE GOODS AND SERVICES FROM LOCAL AND SMALL PRODUCERS, INCLUDING COMMUNITIES AND CAPABILITY BUILDING INITIATIVES, UNDERTAKEN FOR LOCAL AND SMALL VENDORS its local India and As a proud Indian company, RIL strives to build the industry. The competitiveness of Company’s commitment to the local suppliers gets highlighted from the fact that RIL has procured goods and services (non-crude/ non-feedstock) worth over `15,000 crore from indigenous suppliers. Through sustained investment in mega projects and operations, RIL has developed India’s chemicals and engineering supplier base. The Company ensures that it engages local villagers and small businesses around its plants in a variety of productive employment, especially through vehicle hiring, material handling, housekeeping, waste-handling and horticulture contracts. 4. MECHANISM TO RECYCLE PRODUCTS AND WASTE AND THE PERCENTAGE OF RECYCLING OF PRODUCTS AND WASTE (SEPARATELY AS <5%, 5-10%, >10%) Through process technology and operational control measures, RIL intends to minimise the generation of product or process waste. However, considering the nature of its operations, there is a certain amount of waste generation, which is inevitable. RIL makes continuous efforts to recycle products or process waste by implementing responsible management practices. Recycling and reusing of waste helps the Company in reducing its environmental impact, while simultaneously improving the material efficiency of the operations. In this direction, RIL has taken various measures such as converting waste to organic manure and biogas generation, recycling of used oil, slop oil and oily sludge, recycling of waste PET bottles and recycling of used/ waste oil and spent catalysts through authorised re-processors. RIL ensures responsible disposal of waste, generated by partnering with various agencies to encourage end-of- life recycling and reuse. The industrial waste generated is converted into useful ‘bio-manure’ by the vermi-composting method, thereby reducing the load of waste disposal. The Jamnagar refinery has reduced load on the environment by tapping and desalinating sea water instead of using fresh water resources. its 157 Business Responsibility ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254  The wastewater generated is treated and used for green- belt development, thereby ensuring zero effluent discharge. Continuous focus on waste minimisation, reuse and recycle helps the Company in reducing the consumption of virgin material. RIL has recycled treated wastewater across its manufacturing divisions. In FY 2015-16, RIL has increased the recycled materials usage by 13.95%. Case Study Increase in reuse of treated effluent in wash line and process The final treated effluent was discharged to the environment as the treated effluent was not as per the required quality for washing. A project was undertaken to enhance the reuse of final treated effluent in the process. Two modifications were made at the Effluent Treatment Plant (ETP) for proper settling of sludge and increase in retention period for biological treatment. This resulted in improved quality of the final treated effluent and hence, reuse of treated effluent could be possible in washing of scrap bottles. Moreover, treated effluent was also used for decontaminating waste barrels, empty bags and gardening purpose. For specific details, please refer to the Management’s Discussion and Analysis 5P’s Products & Processes Principle 3 EMPLOYEES’ WELL-BEING BUSINESSES SHOULD PROMOTE THE WELL-BEING OF ALL EMPLOYEES RIL BELIEVES THAT THE POWER OF ITS PEOPLE IS 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. THE COMPANY ENSURES A WORK ENVIRONMENT THAT PROMOTES WELL-BEING. 1. TOTAL NUMBER OF EMPLOYEES total number of employees The 31st March, 2016. is 24,121 as on 158 Employees at RIL EMPLOYEES CADRE WISE BREAKDOWN FY 2015 1.21 3.14 3.54 24.88 40.07 27.16 Manager Executive Non Supervisors Leader Trainees Apprentices 3.5% increase in women employees 2. NUMBER OF PERMANENT WOMEN EMPLOYEES The total number of permanent women employees is 1,238 as on 31st March, 2016. Annual Report 2015-16Business Responsibility Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 3. NUMBER OF PERMANENT EMPLOYEES WITH DISABILITIES disabilities, 41.25% received safety and skill upgradation trainings. All the employees participate in safety drills & mock fire drills. The total number of permanent employees with disabilities is 80 as on 31st March, 2016. 4. EMPLOYEE ASSOCIATIONS RECOGNISED BY THE MANAGEMENT RIL respects the rights of employees to free association and union representation. The Company has various employee unions and associations 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 ASSOCIATIONS Almost 100% of non-supervisory permanent 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 No cases of child labour, forced labour, involuntary labour, sexual harassment and discriminatory employment were reported in the last financial year. Taking a step further, RIL has formed an Internal Complaints Committee where employees can register their complaints against sexual harassment. This is supported by the Sexual Harassment Policy which ensures a free and fair enquiry process with clear timelines. 7. PERCENTAGE OF UNDER-MENTIONED EMPLOYEES THAT WERE GIVEN SAFETY AND SKILL UPGRADATION TRAINING IN THE PREVIOUS YEAR Permanent employees Permanent women employees Casual/ temporary/ contractual employees Employees with disabilities Employee training and development is an essential element of RIL’s people strategy. During FY 2015-16, RIL imparted 1.50 million man-hours of training to its workforce. Safety is of paramount importance to the Company. RIL’s contractual employees receive mandatory safety training before entering the premises and also get on-the-job training through the contractor and the Company. At RIL, 72.39% of its permanent workforce received safety and skill up-gradation trainings, while 79.53% of the women employees received trainings through classroom, as well as web-based training programmes. Out of 80 permanent employees with For specific details, please refer to the Management’s Discussion and Analysis 5P’s (People) 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 IS A DIALOGUE THAT DEFINES THE RIL APPROACH OF UNDERSTANDING STAKEHOLDER NEEDS AND DEVELOPS ACTION PLANS TO FULFIL THEM. 1. MAPPING OF INTERNAL AND EXTERNAL STAKEHOLDERS RIL has mapped its internal and external stakeholders. The key categories and their mode of engagements are shown below: Field Engineer at Nagothane Manufacturing Division 159 Business Responsibility ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 Stakeholders Medium of Engagement Government and regulatory authorities Employees Customers Local community Investors and shareholders Suppliers Trade unions NGO’s Industry bodies/ forums Meetings, newsletters, employee satisfaction survey and trainings Customer meets, customer satisfaction survey and web-based portals Visits and camps Investor meets, annual general meeting and annual report Site visits and personal/ telephonic interactions Works committee, grievance committee and union meetings Site visits and telephonic discussions RIL believes the stakeholder engagement process is necessary for achieving its sustainability goal of inclusive growth. Stakeholder engagement helps in better understanding of the perspectives on key issues and builds a strong relationship with them. The Company seeks timely feedback and response through formal and informal channels of communication to ensure that the stakeholder information remains updated. 2. IDENTIFICATION OF THE DISADVANTAGED, VULNERABLE AND MARGINALISED STAKEHOLDERS identified the marginalised and vulnerable RIL has stakeholders, through the team which engages with the like- minded government and non-government stakeholders, including universities, institutions, hospitals, research government departments and banks, among others. 3. SPECIAL INITIATIVES TAKEN BY THE COMPANY TO ENGAGE WITH THE DISADVANTAGED, VULNERABLE AND MARGINALISED STAKEHOLDERS RIL has taken the path of inclusive development to address the societal issues and engage with the disadvantaged, vulnerable and marginalised stakeholders. At RIL, there are certain criteria for selecting a project. To determine the beneficiaries, the Company undertakes a need assessment that focuses on the Scale, Impact and Sustainability of the project. The Company extends its support beyond the business activities to the marginalised and vulnerable groups. It focuses on broad issues of the community including agriculture, livestock, health, education, access to information services and more. Initiatives undertaken by Reliance Foundation to engage with the disadvantaged, vulnerable and marginalised include: 160 Providing sustainable livelihoods Health outreach programmes Education for all Craft training centres For specific details, please refer to the Report on Corporate Social Responsibility. Case Study Rehabilitation of people living with HIV AIDS (PLHIV) Over 1.4 - 1.6 million people in India are HIV positive. Gujarat, GSNP+ (Gujarat State Network of People living with HIV/ AIDS) has more than 45,000 HIV positive people registered with them. With a collaborative effort of Reliance and GSNP+, marriage bureau was organised towards a noble cause to unite two souls suffering with HIV. A total of 585 PLHIV participated in the event, and seven couples got committed on the same day. This innovative programme provided a platform for HIV AIDS patients to improve their quality of life and find a life partner. For specific details, please refer to the Management’s Discussion and Analysis 5P’s (People) 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 THE GROUP/ JOINT VENTURES/ SUPPLIERS/ CONTRACTORS/ NGOS/ OTHERS. STAKEHOLDER COMPLAINTS RECEIVED IN THE FINANCIAL YEAR RIL’s code of conduct demonstrates its commitment towards the preservation of human rights across the value chain. Annual Report 2015-16Business Responsibility Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.  RIL encourages sharing of process and product innovations within the Group and extending it to benefit the industry and key members of its value chain. 2. THE COMPANY’S STRATEGIES/ INITIATIVES TO ADDRESS GLOBAL ENVIRONMENTAL ISSUES, SUCH AS CLIMATE CHANGE, GLOBAL WARMING AND MORE At RIL, the endeavour is to identify and harness alternative and in renewable energy sources. Energy efficiency operations is one of the key focus areas at all plant locations. RIL’s manufacturing sites regularly account for Greenhouse Gas (GHG) emissions, resulting from their manufacturing operations. A dedicated group works continuously to identify and develop energy efficiency and GHG reduction projects to address climate change issues. RIL adheres to all legal requirements and norms of energy conservation and other environmental conservation standards stipulated by the Government of India and government of other countries where RIL operates. A Corporate Sustainability Report is published annually, which gives a full account of all sustainable development initiatives including the Company’s environmental, social and economic performances. IDENTIFICATION AND ASSESSMENT OF POTENTIAL ENVIRONMENTAL RISK Regular assessment of the environmental risks and mitigation strategies are undertaken by RIL. RIL has systems in place that ensure continuous monitoring of potential environmental risks involved in its operations. For new and upcoming projects, potential environmental risks are identified while preparing Environment Impact Assessment (EIA) and Risk Assessment reports. Accordingly, identified potential environmental risks are addressed at the design stage and also mitigated through the incorporation of robust environment management plan. Environmental audits are carried out regularly, which help in identifying potential risks and necessary corrective actions are taken to mitigate the same. All manufacturing divisions are certified as per the ISO-14001 environment management system and integrated with quality and safety management systems (ISO-9001 and OHSAS 18001). In addition, all these sites had been covered under the British Safety Council UK’s environment five star audit. Periodic audits conducted as part of these management systems help RIL identify potential risks at its locations. Employee training at Hazira manufacturing division The Company believes that a sustainable organisation rests on ethics and respect for human rights. RIL promotes awareness of the importance of respecting human rights within its value chain and discourages instances of abuse. There were no reported complaints during FY 2015-16. 3. For specific details, please refer to the report on Corporate Governance. Principle 6 ENVIRONMENT 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. THE COMPANY ENSURES TO DO BUSINESS WITH MINIMAL ENVIRONMENTAL IMPACT THAT AIMS AT THE RATIONAL USE OF NATURAL RESOURCES AND REDUCED WASTE AND EMISSIONS. 1. COVERAGE OF THE POLICY RELATED TO PRINCIPLE 6 AND ITS EXTENSION TO THE GROUP/ JOINT VENTURES/ SUPPLIERS/ CONTRACTORS/ NGOS/ OTHERS RIL is committed to conduct business with a strong environmental sustainable development. The Company’s ‘Environment Policy’ has stated that protection of the environment is of prime issues related to the concern. The policy addresses employees, contractors, suppliers and customers. conscience, ensuring 4. COMPANY’S INITIATIVES TOWARDS CLEAN DEVELOPMENT MECHANISM The Company’s eight projects have been registered as Clean Development Mechanism (CDM) projects under United Nations Framework Convention on Climate Change (UNFCCC). The implemented projects were primarily based on the energy efficiency and use of cleaner fuels. The Company has built in-house capacity to develop CDM 161 Business Responsibility ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 RENEWABLE ENERGY RIL’s ‘Algae to Biocrude’ effort aims at establishing to achieve sustainable and a green platform economically viable production of biocrude by large-scale cultivation of ‘producer’ algae strains with optimal inputs of sea water, low cost nutrients (N, P) and crop protection measures. Jatropha-based biodiesel: Marginal low-rainfall land is ideally suited for the Company’s globally competitive high-yielding Jatropha hybrids. Agri-residue to hydrocarbons: Agri-residue is often burnt to quickly clear fields. Technology that RIL is working on provides a better alternative by enabling efficient conversion of this waste agri-residue into products, such as kerosene. Rooftop solar photo voltaic projects are being installed across RIL manufacturing units. Case Study Environmental habitat at Dahej projects and obtain the registration and issuance of the same in the form of Certified Emission Reductions (CERs) from the UNFCCC. 5. THE COMPANY’S INITIATIVES ON – CLEAN TECHNOLOGY, ENERGY EFFICIENCY AND RENEWABLE ENERGY, AMONG OTHERS Installation of high efficiency flare tip at Dahej manufacturing location CLEAN TECHNOLOGY Collaboration with The Indian Institute of Petroleum (IIP), Dehradun for commercialising indigenous state- of-the-art technology for the recovery of benzene from gasoline pool to support clean fuel initiatives and protect the environment. Synthesis of ionic liquids for safe and eco-friendly product and process development (p-xylene oxidation, non-HF process for LAB manufacturing, purification of crude terephthalic acid, desalter brine treatment and others). Direct synthesis of dimethyl carbonate from carbon dioxide to lower GHG emission numbers. GOP flare caters to the flaring need of various plants. The fuel gas and steam consumption for operation of the flare tip amounted to an energy consumption of about 1.86 Gcal/ hr (i.e. 16,293 Gcal/annum). The flare tip was equipped with specially-designed steam spargers and pilot to reduce the steam and fuel gas required for the combustion of flared gases. It is also designed to ensure complete combustion and hence, smokeless flaring at current flaring loads. The installation has led to a reduction in steam and fuel gas consumption by about 0.384 Gcal/hr, amounting to annualised energy consumption of about 3,363 mmkcal/annum. This will consequently result in CO2 emission reduction by 773 TPA. Development of RelFarmS™, which converts by-product sulphur into a high quality fertiliser. 6. Catalytic hydrothermal liquefaction technology to convert waste plastics, such as HDPE, PP, PBR, SBR and natural rubber to crude oil equivalent, with high conversion for the management of solid waste. ENERGY EFFICIENCY Enhanced heat recovery by revamping of air preheaters to recover more energy from flue gases. Improved heat rate by uprating Gas Turbines. Installation of advanced technologies like Divided Wall Column (DWC). REPORTING ON THE EMISSIONS/ WASTE GENERATED BY THE COMPANY AS PER THE PERMISSIBLE LIMITS GIVEN BY CPCB/ SPCB Efficient control equipment and robust procedures helped the Company to meet the applicable environmental standards continuously. The emissions/ waste generated by RIL is not only within but in many cases, significantly lower than the permissible limits given by the State or Central Pollution Control Boards. All manufacturing units are ISO- 14001 compliant and a robust system is in place to monitor the environmental footprint of the units. The environmental monitoring reports are regularly submitted to CPCB/ SPCB by the Company. Environmental performance data is also reported in the Corporate Sustainability Report. 162 Annual Report 2015-16Business Responsibility Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 7. NUMBER OF SHOW CAUSE/ LEGAL NOTICES RECEIVED FROM CPCB/ SPCB, WHICH ARE PENDING (I.E. NOT RESOLVED TO SATISFACTION) AS ON THE END OF THE FINANCIAL YEAR There are no pending or unresolved show cause/ legal notices from CPCB/ SPCB in FY 2015-16. For specific details, please refer to the Management’s Discussion and Analysis 5P’s (Planet and Products & Processes) Principle 7 POLICY 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. THE COMPANY AIMS TO CREATE AN ENVIRONMENT THAT ENCOURAGES SUPPORTIVE DECISIONS MADE IN A RESPONSIBLE WAY. THE ASSOCIATIONS ARE FORMED IN CONSULTATION WITH THE BOARD AND CONTAIN REPRESENTATION FROM THE BOARD IN CERTAIN MEMBERSHIPS. 1. REPRESENTATION IN ANY TRADE AND CHAMBER/ ASSOCIATION RIL has its representation in several business and industrial associations such as The World Economic Forum, The American Chemistry Council Indian Chemical Council (ICC), The Chemicals and Petroleum Manufacturers (ACC), Recycled PET bottles at Hazira (WBCSD), Association (CPMA), Gulf Petrochemicals & Chemicals Association (GPCA), World Business Council for Sustainable Petrochemicals European Development Association (EPCA), American Fuel & Petrochemical Manufacturers (AFPM), Association of Oil and Gas Operators in 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). India (AOGO), Federation of 2. ADVOCATED/ LOBBIED THROUGH ABOVE ASSOCIATIONS FOR THE ADVANCEMENT OR IMPROVEMENT OF PUBLIC GOOD As a responsible producer of petrochemicals, RIL has collaborated with Indian Centre for Plastic in the Environment (ICPE) on a voluntary basis and provides technical and financial support helping in development of newer technologies for plastic-waste management, establishment of pilot projects for plastic-waste management, in cooperation with municipal authorities and the civil society. Producing Algae & Co-products for Energy (PACE) is a collaborative project with some of the top universities and research institutions in the US for developing and demonstrating algae, to produce energy and co-products. For specific details, please refer to the Management’s Discussion and Analysis 5P’s (Peace & Partnerships) Principle 8 INCLUSIVE GROWTH BUSINESSES SHOULD SUPPORT INCLUSIVE GROWTH AND EQUITABLE DEVELOPMENT RIL BELIEVES IN CREATING OPPORTUNITIES FOR COMMUNITIES AROUND ITS OPERATIONS TO ENABLE A SUSTAINABLE FUTURE AND ENSURE INCLUSIVE GROWTH. ITS COMMUNITY DEVELOPMENT ACTIVITIES FOCUS ON AREAS THAT FOSTER THE DEVELOPMENT AND WELL-BEING OF COMMUNITIES. RIL’S CSR INITIATIVES ARE ALIGNED TO ASPECTS SUCH AS LIVELIHOODS, EDUCATION, HEALTH, SKILL ENHANCEMENT, INFRASTRUCTURE DEVELOPMENT, PROMOTING SPORTSMANSHIP AND WOMEN EMPOWERMENT, AMONG OTHERS. 1. SPECIFIED PROGRAMMES/ INITIATIVES/ PROJECTS BY THE COMPANY IN PURSUIT OF THE POLICY RELATED TO PRINCIPLE 8 Corporate Social Responsibility (CSR) is embedded in the Company’s long-term business strategy. RIL aims to work in line with the globally and nationally agreed upon 163 Business Responsibility ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 development targets namely United Nation’s Sustainable Development Goals, which embrace a universal approach to the sustainable development agenda. RIL’s community initiatives are in conformity with these goals and are further categorised under primary focus areas, including: 1. Rural transformation 2. Environment 3. Health 4. Education 5. Sports for development 6. Disaster response 7. Arts, culture and heritage During FY 2015-16, the Company’s initiatives were focused towards achieving the following objectives: 1. Ensuring the well-being of local communities 2. Building capabilities for employment generation 3. Empowering women 4. Creating access to healthcare 5. Conserving the environment 6. Promoting education 2. MODES THROUGH WHICH PROGRAMMES/ PROJECTS UNDERTAKEN (THROUGH IN-HOUSE TEAM/ OWN FOUNDATION/ EXTERNAL NGO/ GOVERNMENT STRUCTURES/ ANY OTHER ORGANISATION) The Company follows multiple models for implementing its CSR initiatives. For all operational sites, the needs of the related stakeholders in the local communities are addressed through dedicated in-house teams, which have been set up at each plant. They directly engage with the representatives from local communities, residing near operational sites School children at Gadimoga 164 to gauge their expectations and partner with them to implement social programmes across the identified focus areas. The Company has also set up a foundation which conducts CSR initiatives in a more programmatic manner through large-scale theme-based programmes, such as Education for All. These initiatives have a huge coverage, both in terms of scale, as well as impacts, as the foundation implements programmes at both operational sites and identified areas across India. The focus is on enhancing outreach to the society’s marginalised and underprivileged sections. In addition, the Company also collaborates with like-minded partners (both government and non-government) to meet the local needs of the underprivileged sections. For specific details please refer to the Report on Corporate Social Responsibility and Annexure V to the Directors’ report. 3. IMPACT ASSESSMENTS FOR INITIATIVES RIL has set up a Monitoring & Evaluation (M&E) framework aimed at measuring the outcome and impact of initiatives in a number of ways, by measuring change in the lives of the communities that it engages with. This includes the following: 1. Community needs assessment 2. Impact assessment studies 3. Routine programme monitoring 4. Beneficiary acceptance and course correction 5. Efficient information systems The inputs from these studies are used for making informed decisions, based on the extent of outcomes and impacts. The progress on the Company’s CSR initiatives is periodically reviewed by the CSR&G Committee and the Company’s Board of Directors. RIL continuously enhances its existing systems and processes to capture the impact (social/ economic and developmental) through its various initiatives across multiple mediums. 4. COMPANY’S DIRECT CONTRIBUTION TO COMMUNITY DEVELOPMENT PROJECTS FY 2015-16, Reliance has spent `652 crore on community development initiatives. 5. STEPS UNDERTAKEN TO ENSURE THAT COMMUNITY DEVELOPMENT INITIATIVES ARE SUCCESSFULLY ADOPTED BY THE COMMUNITY Community collaboration and participation is encouraged at all the stages of RIL’s community development/ CSR Annual Report 2015-16Business Responsibility Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. initiatives. Extensive engagement with the community helps in identifying needs of the stakeholders and leads to greater sense of ownership among the people, ensuring sustained outcomes. Their capacities are built through multiple training programmes to make them self-sufficient and capable of managing the programme even in the absence of a third party. The Company continues to support initiatives to provide medical care needs (like, constructing infrastructure) necessary for villagers. Multiple interactions are held with communities through village meetings, meetings with local administration and officials from the line departments to understand the primary necessities. RIL encourages regular feedback from the beneficiaries to continuously improve facilities and specialised services in locations where there is a demand. RIL’s Sustainability strategy ensures that the robust institutions are built at the grassroots level in the form of Village Association and Common Interest Groups. Various capacity building activities directed at the leadership of the institution ensure that the ownership remains firmly with the community which makes sure that the beneficial impact of the project continues even after the project is completed. were successfully resolved. Subsequently, most of these complaints have been resolved. 2. PRODUCT INFORMATION AND PRODUCT LABELLING RIL adheres to all the compliance of product information and product labelling. The Company’s marketing communication efforts adhere to the brand standards/ guidelines with regard to visual manifestation, brand promise and relevancy and saliency of the target group. RIL adheres to all legal statutes with respect to product labelling and display of product information. The Company 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 at the time of distribution. 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 THE FINANCIAL YEAR. For specific details, please refer to the Corporate Social Responsibility Report 5P’s (Products & Processes) Nil Principle 9 CUSTOMER VALUE 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. THE COMPANY ENSURES THAT UTMOST CARE IS TAKEN TOWARDS CUSTOMER SAFETY. PUTTING CUSTOMERS FIRST HAS ALWAYS BEEN RIL’S APPROACH OF CONDUCTING BUSINESS. 1. PERCENTAGE OF CUSTOMER COMPLAINTS/ CONSUMER CASES PENDING AS ON THE END OF FINANCIAL YEAR RIL has a customer-centric approach and minimising customer complaints remains a top priority. To educate and apprise customers regarding the Company’s products, RIL conducts regular Customer Relation Meets (CRMs). In addition, feedback sessions are organised to better understand customer concerns and find ways of mitigating them. The Company has a separate framework to deal with customer complaints. For the year ending 31st March, 2016, 2,326 customer complaints were received, of which 2,137 4. CONSUMER SURVEY/ CONSUMER SATISFACTION TRENDS CARRIED OUT BY THE COMPANY Customer satisfaction is significant to RIL as it ensures the Company’s overall reputation and brand promise in the geographies it operates in. To understand its customers better, RIL follows several modes of engagement. Such modes include customer audits, customer surveys and call centres, direct feedback taken by visiting managers/ plant personnel and factory visits organised for customers. These modes help RIL understand customer requirements, satisfaction levels and customer behaviour. The Company also conducts one-to-one meetings with customers to enable efficient communication and resolve specific needs. In addition, it conducts web-based customer satisfaction surveys. RIL has also conducted third-party mystery customer audits, customer satisfaction surveys and call centre evaluation studies for this purpose. This has helped the Company to ensure periodical fulfilment of service delivery promise, conformance to internal norms and standards, identification of process improvement areas and understand customer attitude and behaviour change to ascertain that needs are met at all stages. For specific details, please refer to the Management’s Discussion and Analysis 5P’s (Products & Processes) 165 Business Responsibility ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 Linkage of the 17 SUSTAINABLE DEVELOPMENT GOALS ADOPTED AT THE UNITED NATIONS SUSTAINABLE DEVELOPMENT Summit with Business Responsibility Report, Management’s Discussion and Analysis and Corporate Social Responsibility. Management’s Discussion and Analysis Corporate Social Responsibility Sustainable Development Goals 1 No Poverty END POVERTY IN ALL ITS FORMS EVERYWHERE Business Responsibility Report NVG8 Businesses should support inclusive growth and equitable development 2 Zero Hunger NVG2 END HUNGER, ACHIEVE FOOD SECURITY AND IMPROVED NUTRITION AND PROMOTE SUSTAINABLE AGRICULTURE Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle NVG8 Businesses should support inclusive growth and equitable development Products and Processes 3 Good Health and Well-Being NVG3 ENSURE HEALTHY LIVES AND PROMOTE WELL-BEING FOR ALL AT ALL AGES Businesses should promote the well-being of all employees People Uplifting livelihoods Providing rural social security Accelerating economic development in areas of high poverty Improving the quality of life Food security Water security Nutrition security Mission zero malnourishment project Sustainable food production Sustainable agricultural practices Water conservation and rain water harvesting Efficient water management Better market value through producer companies Healthcare initiatives Medical outreach programmes Mission zero malnourishment project Healthcare for women HIV/ AIDS 4 Quality Education ENSURE INCLUSIVE AND EQUITABLE QUALITY EDUCATION AND PROMOTE LIFELONG LEARNING OPPORTUNITIES FOR ALL NVG8 Businesses should support inclusive growth and equitable development People Education for all Skill development Scholarship programmes Sports for development 5 Gender Equality ACHIEVE GENDER EQUALITY AND EMPOWER ALL WOMEN AND GIRLS NVG5 Businesses should respect and promote human rights People Empowerment of women Participation of women in village decision-making bodies 166 Annual Report 2015-16Business Responsibility Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 6 Clean Water & Sanitation ENSURE AVAILABILITY AND SUSTAINABLE MANAGEMENT OF WATER AND SANITATION FOR ALL NVG2 Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle Products and Processes Water security Swacch Bharat Micro irrigation systems Water harvesting 7 Affordable and Clean Energy ENSURE ACCESS TO AFFORDABLE, RELIABLE, SUSTAINABLE AND MODERN ENERGY FOR ALL 8 Decent Work and Economic Growth PROMOTE SUSTAINED, INCLUSIVE AND SUSTAINABLE ECONOMIC GROWTH, FULL AND PRODUCTIVE EMPLOYMENT AND DECENT WORK FOR ALL NVG2 Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle NVG6 Businesses should respect, protect and make efforts to restore the environment NVG3 Businesses should promote the well-being of all employees Planet Sustainable energy Renewable energy Biogas plants Ecological balance Promoting biodiversity and conservation of natural resources Prosperity Leveraging knowledge and institution building Skill development for youth Uplifting livelihoods Technological innovation 9 Industry, Innovation and Infrastructure BUILD RESILIENT INFRASTRUCTURE, PROMOTE SUSTAINABLE INDUSTRIALISATION AND FOSTER INNOVATION NVG6 Businesses should respect, protect and make efforts to restore the environment Prosperity Leveraging knowledge and institution building Skill development for youth Uplifting livelihoods Technological Innovation 10 Reduced Inequalities REDUCE INEQUALITY WITHIN AND AMONG COUNTRIES NVG5 Businesses should respect and promote human rights People Empowerment of women Education for all Support for the disabled 167 Business Responsibility ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review14825525637938039655147025411 Sustainable Cities and Communities MAKE CITIES AND HUMAN SETTLEMENT INCLUSIVE, SAFE, RESILIENT AND SUSTAINABLE NVG9 Businesses should engage with and provide value to their customers and consumers in a responsible manner Disaster response Protection of culture and natural heritage 12 Responsible Consumption and Production ENSURE SUSTAINABLE CONSUMPTION AND PRODUCTION PATTERNS 13 Climate Action TAKE URGENT ACTIONS TO COMBAT CLIMATE CHANGE AND ITS IMPACTS* NVG2 Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle NVG9 Businesses should engage with and provide value to their customers and consumers in a responsible manner NVG6 Businesses should respect, protect and make efforts to restore the environment * Acknowledging that the United Nations Framework Convention on Climate Change the primary international, intergovernmental forum for negotiating the global response to climate change. is 14 Life Below Water CONSERVE AND SUSTAINABLY USE THE OCEANS, SEAS AND MARINE RESOURCES FOR SUSTAINABLE DEVELOPMENT NVG6 Businesses should respect, protect and make efforts to restore the environment Planet Sustainable production Innovation Planet Climate change Tree plantation Capacity building of local communities for disaster resilience Developing expertise and resources for timely response to disasters Water security 168 Annual Report 2015-16Business Responsibility Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 15 Life On Land PROTECT, RESTORE AND PROMOTE SUSTAINABLE USE OF TERRESTRIAL ECOSYSTEMS, SUSTAINABLY MANAGE FORESTS, COMBAT DESERTIFICATION, AND HALT AND REVERSE LAND DEGRADATION AND HALT BIODIVERSITY LOSS NVG6 Businesses should respect, protect and make efforts to restore the environment Tree plantation Soil conservation 16 Peace, Justice and Strong Institutions PROMOTE PEACEFUL AND INCLUSIVE SOCIETIES FOR SUSTAINABLE DEVELOPMENT, PROVIDE ACCESS TO JUSTICE FOR ALL AND BUILD EFFECTIVE, ACCOUNTABLE AND INCLUSIVE INSTITUTIONS AT ALL LEVELS 17 Partnerships For The Goals STRENGTHEN THE MEANS OF IMPLEMENTATION AND REVITALISE THE GLOBAL PARTNERSHIP FOR SUSTAINABLE DEVELOPMENT NVG1 Businesses should conduct and govern themselves with Ethics, Transparency and Accountability NVG4 Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised NVG7 Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner NVG7 Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner Peace and Partnerships Empowerment of women Promote peaceful and inclusive societies for long-term sustainable development Peace and Partnerships Leveraging knowledge and institution building http://www.undp.org/content/dam/undp/library/corporate/brochure/SDGs_Booklet_Web_En.pdf 169 Business Responsibility ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Corporate Governance Report We believe good governance is essential to business integrity and maintaining investors’ trust. At RIL, fairness and transparency are the key drivers of the Corporate Governance process, with stakeholders’ interest being its topmost priority. Reliance has been guided by these principles even before Corporate Governance norms were codified in India. RIL constantly strives at benchmarking its Corporate Governance practices with global standards. The Shareholders’ Referencer in the Annual Report, which provides investor education to our 3 (three) million shareholders, distinguishes the Company in the era of investors’ engagement. K. SETHURAMAN SRIKANTH VENKATACHARI “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 Padma Vibhushan Shri Dhirubhai H. Ambani In accordance with the provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’), the report containing the details of Corporate Governance systems and processes at Reliance Industries Limited (RIL) is as follows: At RIL, Corporate Governance is all about maintaining a valuable relationship and trust with all stakeholders. We consider stakeholders as partners in our success, and we remain committed to maximising stakeholders’ 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 six core values of Customer Value, Ownership Mindset, Respect, Integrity, One Team and Excellence. 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. 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. 170 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, Corporate Social Responsibility and Governance Committee, Finance, Compliance and Assurance teams, Auditors and the senior management. 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 the Listing Regulations, 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 38 eventful years from its first IPO. Since then, RIL has moved from one big idea to another and these milestones continue to fuel its relentless pursuit of ever-higher goals. Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.On standalone basis, we have grown by a Compounded Annual Growth Rate (CAGR) of Revenues 24.1%, EBITDA 26.1% and Net Profit 27.2%. The financial markets have endorsed our sterling performance and the market capitalisation has increased by CAGR of 31.6% 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 and recall. Our shareholder base has grown from 52,000 after the IPO to a consolidated present base of around 2.6 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 seven Committees to discharge its responsibilities in an effective manner. RIL’s Company Secretary acts as the Secretary to all the Committees of the Board. The Chairman and Managing Director (CMD) provides overall direction and guidance to the Board. In the operations and functioning of the Company, the CMD is assisted by four Executive Directors and a core group of senior level executives. The Chairman of the Board (‘the Chairman’) is the leader of the Board. The Chairman is responsible for fostering and promoting the integrity of the Board while nurturing a culture where the Board works harmoniously for the long-term benefit of the Company and all its stakeholders. The Chairman guides the Board for effective governance structure in the Company. In doing so, the Chairman presides at the meetings of the Board and the shareholders of the Company. The Chairman takes a lead role in managing the Board and facilitating effective communication among Directors. The Chairman is responsible for matters pertaining to governance, including the organisation and composition of the Board, the organisation and conduct of Board meetings, effectiveness of the Board, Board Committees and individual Directors in fulfilling their responsibilities. The Company Secretary assists the Chairman in management of the Board’s administrative activities such as meetings, schedules, agendas, communication and documentation. The Chairman actively works with the Nomination and Remuneration Committee to plan the Board and Board committees’ composition, induction of directors to the Board, plan for director succession, participate in the Board effectiveness evaluation process and meet with individual directors to provide constructive feedback and advice. The Chairman is responsible for corporate strategy, brand equity, planning, external contacts and all management matters. BOARD LEADERSHIP A majority of the Board i.e. 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 meetings 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 Committees, a detailed analysis and review of annual strategic and operating plans, capital allocation and budgets. Additionally, the Board reviews related party transactions, possible risks and risk mitigation measures, financial reports 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/GOVERNANCE 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: Code of Conduct Code of Conduct for Prohibition of Insider Trading Health, Safety and Environment (HSE) Policy Vigil Mechanism and Whistle Blower Policy 171 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254  Policy on Materiality of Related Party Transactions and on Dealing with Related Party Transactions Corporate Social Responsibility Policy Policy for Selection of Directors and determining Directors Independence Remuneration Policy for Directors, Key Managerial Personnel and other Employees Policy for determining Material Subsidiaries Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information Policy for Preservation of Documents Policy on Determination and Disclosure of Materiality of Events and Information and Web Archival Policy AUDITS AND INTERNAL CHECKS AND BALANCES 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 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 technology. This ensures robustness and integrity of financial reporting and internal controls, allows optimal use and protection of assets, facilitates accurate and timely compilation of financial statements and management reports and ensures compliance with statutory laws, regulations and company policies. MANAGEMENT INITIATIVES FOR CONTROLS AND COMPLIANCE The Company has established the Reliance Management System (RMS) as part of its transformation agenda. RMS incorporates an integrated framework for managing risks and internal controls. The internal financial controls have been documented, embedded and digitised in the business processes. Internal controls are regularly tested for design and operating effectiveness. 172 BEST CORPORATE GOVERNANCE PRACTICES RIL maintains the highest standards of Corporate Governance. It is the Company’s constant endeavour to adopt the best Corporate Governance practices keeping in view the international codes of Corporate Governance and practices of well-known global companies. Some of the best implemented global governance norms include the following: The Company has a designated Lead Independent Director with a defined role. All securities related filings with Stock Exchanges are reviewed every quarter by the Stakeholders’ Relationship Committee. The Company has independent Board Committees for matters related to Corporate Governance and stakeholders’ interface and nomination of Board members. The Company’s independent auditors. The Company also undergoes quarterly secretarial audit conducted by an independent company secretary who is in whole-time practice. The 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. is also conducted by internal audit 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. RIL’S SUSTAINABILITY REPORTING JOURNEY its triple-bottom-line RIL commenced annual reporting on performance from the Financial Year 2004-05. All its sustainability reports are externally assured and Global Reporting Initiative (GRI) application level checked.  The maiden report received ‘in-accordance’ status from GRI and all subsequent reports are ‘GRI G3 Checked A+’ application level reports. From Financial Year 2006-07, in addition to referring GRI G3 Sustainability Reporting Guidelines, RIL refers to the American Petroleum Institute / the International Petroleum Industry Environmental Conservation Association Sustainability Reporting 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. During the year, the Company has expanded its 4P (Planet, People, Profit, Products & Processes) growth approach to 5P (Planet, Annual Report 2015-16Corporate Governance Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. People, Prosperity, Products & Processes and Peace & Partnerships), in line with the United Nation’s 2030 Agenda for Sustainable Development. RIL pioneered in adopting the GRI’s G4 Guidelines from Financial Year 2014-15. RIL has also aligned the G4 Report to the 17 Sustainable Development Goals (SDG) released at the United Nation Sustainable Development Summit in 2015 which embrace a universal approach to the sustainable development agenda. WORKING TOWARDS 5P’s PLANET, PEOPLE, PROSPERITY (PROFIT), PRODUCTS & PROCESSES, PEACE & PARTNERSHIPS RIL has expanded its classic 4P growth approach to include Peace and Partnerships, in line with the United Nation’s 2030 Agenda for Sustainable Development. The Sustainable Development Goals set out by the United Nations have been interwoven within the 5P’s growth model. 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. We believe that success of our organization is truly driven by our “People”. People are our most valuable assets. RIL is dedicated to ensure that people realize their full potential at work with dignity and equality and in a healthy environment. We want to foster a culture that is performance oriented, promotes reward for results and helps our people Grow! 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 endeavors to alleviate the underprivileged and marginalized sections of the society and has an active engagement with them to ensure their holistic development. It aims to develop innovative products and processes to sustain its growth momentum. It also invests in R&D across its businesses, to serve the current and emerging needs of growth and efficiency of its businesses, and to develop new path-breaking technologies. 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. RIL is determined to foster peaceful, just and inclusive societies, which are free from discrimination. Strengthened global solidarity is crucial to ensure sustainable development across the world. It is therefore imperative to ensure global partnerships and strategic tie- ups with various organizations locally and internationally to achieve the collective goal of sustainable development. 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 its commitment assets - human, physical, environmental 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 responsible business, the Board of the Company has adopted Business Responsibility Framework 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 Regulation 34 of the Listing Regulations, 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). to SHAREHOLDERS’ COMMUNICATIONS The Board recognises the importance of two-way 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 corporate website (www.ril.com) has information for institutional and retail shareholders alike. Shareholders seeking information related to their shareholding may contact the Company directly or through Company’s Registrars and Transfer Agents, 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 is appended to this Annual Report highlighting various securities related transactions towards knowledge sharing. informative shareholders’ referencer ROLE OF THE COMPANY SECRETARY IN OVERALL GOVERNANCE PROCESS The Company Secretary plays a key role in ensuring that the Board (including committees thereof) procedures are followed and regularly reviewed. The Company Secretary ensures that all relevant information, details and documents are made available to the Directors and senior management for effective decision-making at the meetings. The Company Secretary is primarily responsible to assist and advise the Board in the conduct of affairs of the Company, to ensure compliance with applicable statutory requirements and Secretarial Standards, to provide guidance to directors and to facilitate convening of meetings. He interfaces between the management and regulatory authorities for governance matters. 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: 173 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Category Promoter Directors Executive Directors Independent Directors Name of Directors Mukesh D. Ambani Chairman and Managing Director Nita M. Ambani Non-Executive Non-Independent Director Nikhil R. Meswani Hital R. Meswani P.M.S. Prasad Pawan Kumar Kapil Mansingh L. Bhakta Yogendra P. Trivedi Dr. Dharam Vir Kapur Prof. Ashok Misra Prof. Dipak C. Jain Dr. Raghunath A. Mashelkar Adil Zainulbhai Raminder Singh Gujral Smt. Nita M. Ambani is the spouse of Shri Mukesh D. Ambani. Shri Nikhil R. Meswani and Shri Hital R. Meswani, are brothers and not related to promoter directors. None of the other directors are related to any other director on the Board. SELECTION OF INDEPENDENT DIRECTORS Considering the requirement of skill sets on the Board, eminent people having an independent standing in their respective field/profession, and who can effectively contribute to the Company’s business and policy decisions are considered by the Human Resources, Nomination and Remuneration Committee, for appointment, as Independent Director 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 in accordance with the Company’s Policy for Selection of Directors and determining Directors’ independence. 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. FAMILIARISATION PROGRAMMES FOR 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 Committee meetings, on business and performance updates of the Company, global business environment, business strategy and risks involved. Detailed presentations on the Company’s business segments are made at the separate meetings of the Independent Directors from time to time. 174 Quarterly updates on relevant statutory changes and landmark judicial pronouncements encompassing important laws are regularly circulated to the Directors. Site visits to various plant locations are organised for the Independent Directors to enable them to understand the operations of the Company. The details of such familiarisation programmes for Independent Directors are put up on the website of the Company and can be accessed at http://www.ril.com/InvestorRelations/Downloads.aspx LEAD INDEPENDENT DIRECTOR The Company’s Board of Directors has designated Shri Mansingh L. Bhakta as the Lead Independent Director way back in October 2005. The Lead Independent Director’s role is as follows: To preside over all meetings of Independent Directors To ensure there is an adequate and timely flow of information to Independent Directors To liaise between the Chairman and Managing Director, the Management and the Independent Directors To preside over meetings of the Board and Shareholders when the Chairman and Managing Director is not present, or where he is an interested party To perform such other duties as may be delegated to the Lead Independent Director by the Board/ Independent Directors MEETINGS OF INDEPENDENT DIRECTORS The Company’s Independent Directors met three times during the financial year 2015-16 and held meetings without the presence of Executive Directors or management personnel. Such meetings were conducted 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 CONDUCT The Company has in place a comprehensive Code of Conduct (the Code) applicable to the Directors and employees. The Code is applicable to Non-Executive Directors including Independent Directors to such extent as may be applicable to them depending on their roles and responsibilities. The Code gives guidance and support needed for ethical conduct of business and compliance of law. The Code reflects the values of the Company viz. Customer Value, Ownership Mind-set, Respect, Integrity, One Team and Excellence. A copy of the Code has been put up on the Company’s website and can be accessed at http://www.ril.com/InvestorRelations/ Downloads.aspx. The Code has been circulated to Directors and Management Personnel, and its compliance is affirmed by them annually. Annual Report 2015-16Corporate Governance Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. A declaration signed by the Company’s Chairman and Managing Director is published in this Report. informed and efficient manner. The following sub-sections deal with the practice of these guidelines at RIL. SUCCESSION PLANNING The Human Resources, Nomination and Remuneration Committee believes that sound succession plans for the senior leadership are very important for creating a robust future for the Company. The Committee works along with the Human Resource team of the Company for a proper leadership succession plan. PERFORMANCE EVALUATION CRITERIA FOR DIRECTORS The Human Resources, Nomination and Remuneration Committee has devised criteria the performance of the Directors including Independent Directors. The said criteria provides certain parameters like attendance, effective participation, domain knowledge and so on, which are considered by the Committee and/or the Board while evaluating the performance of each Director. for evaluation of DIRECTORS’ PROFILE A brief resume of Directors, nature of their expertise in specific functional areas and names of companies in which they hold Directorships, Memberships/ Chairmanships of Board Committees, and shareholding in the Company are provided in this Report. BOARD MEETINGS, BOARD COMMITTEE MEETINGS AND PROCEDURES INSTITUTIONALIZED 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 seven Committees, viz. Audit Committee, Human Resources, Nomination and Remuneration Committee, Corporate Social Responsibility and Governance Committee, Stakeholders’ Relationship Committee, Health, Safety and Environment Committee, Finance Committee and Risk Management Committee. The Board is authorised to constitute additional functional Committees, from time to time, depending on business needs. The Company’s internal guidelines for Board / Committee meetings facilitate decision-making process at its meetings in an SCHEDULING AND SELECTION OF AGENDA ITEMS FOR BOARD MEETINGS Minimum five pre-scheduled Board meetings are held annually. Additional Board meetings are convened to address the Company’s specific needs. In case of business exigencies or urgency, resolutions are passed by circulation. The Board reviews compliance reports of all laws applicable to the Company, every quarter. The meetings are held at the Company’s office at Maker Chambers IV, 222 Nariman Point, Mumbai 400 021 and major plant locations as decided by the Board. 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/Committee meetings. Such matters are communicated by them to the Company Secretary in advance so that they are included in the agenda for 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. The items / matters required to be placed before the Board, inter alia, include: Annual operating plans of businesses and budgets including capital budgets and any updates Quarterly results of the Company and its operating divisions or business segments Company’s annual Financial Results, Financial Statements including Consolidated Financial Statement, Auditors’ Report and Board’s Report Minutes of meetings of the Audit Committee and other Committees of the Board Show cause, demand, prosecution notices and penalty notices, which are materially important Fatal or serious accidents, dangerous occurrences, and any material effluent or pollution problems Any material default in financial obligations to and by the Company, or substantial non-payment for goods sold by the Company Any issue, which involves possible public or product liability claims of substantial nature, including any judgment or order, which may have passed strictures on the conduct of 175 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 the Company or taken an adverse view regarding another enterprise that can have negative implications on the Company Details of any joint venture or collaboration agreement Transactions that goodwill, brand equity or intellectual property involve substantial payment towards significant development Significant labour problems and their proposed solutions. Any in Human Resources/ Industrial Relations front like requiring of wage agreements, implementation of Voluntary Retirement Scheme, and so on. Sale of investments, subsidiaries and assets which are material in nature and not in normal course of business. Quarterly details of foreign exchange exposures, and steps taken by management to limit risks of adverse exchange rate movement, if material Non-compliance of any regulatory, statutory or listing requirements, and shareholders’ service, such as non- payment of dividend, delay in, share transfer, etc. Appointment, remuneration and resignation of Directors Formation/reconstitution of Committees Terms of reference of Committees Minutes of Board meetings of unlisted subsidiary companies Declaration of appointment/annually Independent Directors at the time of Disclosure of Directors’ interest and their shareholding Appointment or removal of the Key Managerial Personnel Appointment of Internal Auditors and Secretarial Auditors Quarterly / Annual Secretarial Audit reports submitted by Secretarial Auditors Dividend declaration Quarterly summary of all long-term borrowings made, bank guarantees issued and loans and investments made Significant changes in accounting policies and internal controls Takeover of a company or acquisition of a controlling or substantial stake in another company significant Statement of related party transactions and arrangements entered by unlisted subsidiary companies transactions, Issue of securities including debentures Recommending appointment of and fixing of remuneration of the Auditors as recommended by the Audit Committee Status of business risk exposures, its management and related action plans Making of loans and investment of surplus funds Borrowing of monies, giving guarantees or providing security in respect of loans Buyback of securities by the Company Diversify the business of the Company Brief on statutory developments, changes in government policies, among others with impact thereof, Directors’ responsibilities arising out of any such developments Compliance Certificate certifying compliance with all laws as applicable to the Company Reconciliation of Share Capital Audit Report under SEBI (Depositories and Participants) Regulations, 1996 Brief on information disseminated to the press Recruitment and remuneration of senior officers just below the level of board of directors in The Chairman of the Board and Company Secretary, consultation with other concerned members of the senior management, finalise the agenda for Board meetings. 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. All Board and Committee meetings agenda papers are disseminated electronically on a real-time basis, by uploading them on a secured online application specifically designed for this purpose, thereby eliminating circulation of printed agenda papers. 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/ Committee members for their comments. The minutes are entered in the Minutes Book within 30 days from the conclusion of the meeting. Internal Audit findings and External Audit Reports (through the Audit Committee) Proposals for major investments, mergers, amalgamations and reconstructions POST MEETING FOLLOW-UP MECHANISM The guidelines for Board and Committee meetings facilitate an effective post meeting follow-up, review and reporting process for decisions taken by the Board and Committees thereof. 176 Annual Report 2015-16Corporate Governance Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Important decisions taken at 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/Committees for noting. COMPLIANCE The Company Secretary, while preparing the agenda, notes on agenda and minutes of the meeting(s), is responsible for and is required to ensure adherence to all applicable laws and regulations, including the Companies Act, 2013 read with rules issued thereunder, as applicable and Secretarial Standard-1 and Secretarial Standard-2 issued 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. The details of Board meetings are given below: Date April 17, 2015 July 24, 2015 October 16, 2015 January 19, 2016 March 10, 2016 March 25, 2016 No. of Directors Present 13 11 14 13 12 13 Board Strength 13 14 14 14 14 14 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 Mansingh L. Bhakta Yogendra P. Trivedi Dr. Dharam Vir Kapur Prof. Ashok Misra Prof. Dipak C. Jain Dr. Raghunath A. Mashelkar Adil Zainulbhai Nita M. Ambani Raminder Singh Gujral* Attendance at meetings during 2015-16 Board AGM 6 5 6 6 5 4 6 6 6 5 5 5 6 5 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes N.A. No. of Other Directorship(s) as on 31-03-2016 No. of Membership(s) / Chairmanship(s) of Board Committees in other Companies as on 31-03-2016 (1) 4 1 2 1 Nil Nil 7 5 2 3 11 7 3 1 (2) Nil 1 (as Chairman) Nil Nil Nil Nil 1 4 (including 3 as Chairman) 2 2 2 6 (including 5 as Chairman) Nil 1 (1) (2) The Directorships, held by Directors as mentioned above, do not include directorships in foreign companies. In accordance with Regulation 26 of the Listing Regulations, Memberships/Chairmanships of only Audit Committees and Stakeholders’ Relationship Committees in all public limited companies (excluding Reliance Industries Limited) have been considered. * Appointed as a Director, w.e.f. June 12, 2015. Five meetings were held since his appointment. Video/tele-conferencing facility is provided to facilitate Directors to participate in the meetings. The number of directorship, committee membership / chairmanship(s) of all Directors is within the respective limits prescribed under the Companies Act, 2013 and Listing Regulations. 177 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254BOARD COMMITTEES Details of the Board Committees and other related information are provided hereunder: COMPOSITION OF COMMITTEES OF THE COMPANY Audit Committee 1. Yogendra P. Trivedi Independent Director (Chairman of the Committee) 2. Dr. Raghunath A. Mashelkar Independent Director 3. Adil Zainulbhai Independent Director 4. Raminder Singh Gujral 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 Risk Management Committee 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 1. Adil Zainulbhai Independent Director (Chairman of the Committee) 4. Alok Agarwal Chief Financial Officer 2. Hital R. Meswani Executive Director 3. P.M.S. Prasad Executive Director 5. Srikanth Venkatachari Joint Chief Financial Officer Shri K. Sethuraman, Group Company Secretary and Chief Compliance Officer, is the Secretary of all the Committees. 178 Annual Report 2015-16Corporate Governance Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. MEETINGS OF COMMITTEES HELD DURING THE YEAR AND DIRECTORS’ ATTENDANCE Committees of the Company Audit 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 Prof. Ashok Misra Prof. Dipak C. Jain Dr. Raghunath A. Mashelkar Adil Zainulbhai Nita M. Ambani Raminder Singh Gujral* 6 NA NA NA NA NA NA 6 NA NA NA 6 6 NA 5 Human Resources Nomination and Remuneration Committee 4 NA NA NA NA NA NA 4 4 NA NA 4 4 NA NA Corporate Social Responsibility and Governance Committee Stakeholders' Relationship Committee Health, Safety and Environment Committee Finance Committee Risk Management Committee 4 NA 4 NA NA NA NA 4 4 NA NA 3 NA NA NA 4 NA 4 3 NA NA NA 4 NA 4 NA NA NA NA NA 4 NA NA 4 3 4 NA NA 4 NA NA NA NA NA NA 6 6 6 5 NA NA NA NA NA NA NA NA NA NA NA 5 NA NA 5 5 NA NA NA NA NA NA NA 5 NA NA N.A. – Not a member of the Committee * Appointed as Member of the Committee, w.e.f. July 07, 2015. Five meetings were held since his appointment. PROCEDURE AT COMMITTEE MEETINGS The Company’s guidelines relating to Board meetings are applicable to Committee meetings. 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. POWERS OF THE AUDIT COMMITTEE To investigate any activity within its terms of reference To seek information from any employee To obtain outside legal or other professional advice To secure attendance of outsiders with relevant expertise, if it considers necessary TERMS OF REFERENCE AND OTHER DETAILS OF COMMITTEES AUDIT COMMITTEE COMPOSITION OF THE COMMITTEE Yogendra P. Trivedi (Chairman of the Committee) Dr. Raghunath A. Mashelkar Adil Zainulbhai Raminder Singh Gujral Independent Director Independent Director Independent Director Independent Director TERMS OF REFERENCE OF AUDIT COMMITTEE INTER ALIA INCLUDE THE FOLLOWING 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 Recommending the appointment, remuneration and terms of appointment of statutory auditors including cost auditors of the Company Approving payment to statutory auditors, including cost auditors, for any other services rendered by them Reviewing with the management, the annual financial statements and auditors’ report thereon before submission to the Board for approval, with particular reference to: The Committee’s composition and terms of reference are in compliance with provisions of Section 177 of the Companies Act, 2013 and Regulation 18 of the Listing Regulations. Members of the Audit Committee possess requisite qualifications. Matters required to be included in the Directors’ Responsibility Statement to be included in the Board’s Report in terms of clause (c) of sub-section 3 of Section 134 of the Companies Act, 2013; 179 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254  Changes, if any, in accounting policies and practices and reasons for the same; Major accounting entries involving estimates based on the exercise of judgement by the management; Significant adjustments made in financial statements arising out of audit findings; Compliance with listing and other legal requirements relating to financial statements; Disclosure of any related party transactions; and Qualifications / modified opinions in draft audit report. Reviewing, with the management, the quarterly financial statements before submission to the Board for approval Monitoring and reviewing with the management, the statement of uses/ application of funds raised through an issue (public issue, rights issue, preferential issue, and so on), 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 Reviewing and monitoring the auditors’ independence and performance, and effectiveness of audit process Approval or any subsequent modification of transactions of the Company with related parties Scrutiny of inter-corporate loans and investments Valuation of undertakings or assets of the Company, wherever it is necessary Evaluation of management systems internal financial controls and risk Reviewing, with the management, the performance of statutory auditors and internal auditors, adequacy of internal control systems Formulating methodology for conducting the internal audit the scope, functioning, periodicity and Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit Discussion with internal auditors of any significant findings and follow-up thereon 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 180 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 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 To review the functioning of the Vigil Mechanism and Whistle Blower mechanism Approval of appointment of the CFO (i.e. the whole-time Finance Director or any other person heading the finance function) after assessing function or discharging that qualifications, experience and background, and so on of the candidate Carrying out any other function as is mentioned in the terms of reference of the Audit Committee Reviewing financial statements, in particular the investments made by the Company’s unlisted subsidiaries Reviewing mandatorily the following information The Management Discussion and Analysis of financial condition and results of operations Statement of significant related party transactions (as defined by the Audit Committee), submitted by management Management weaknesses issued by the statutory auditors letters/letters of internal control Internal audit reports relating to weaknesses; and internal control Reviewing the appointment, removal and terms of remuneration of the Chief internal auditor / internal auditor(s) GENERAL The representatives of Statutory Auditors are permanent invitees to the Audit Committee meetings. They have attended all the Audit Committee meetings held during the year. Executives from Accounts department, Finance department, Corporate Secretarial department and Internal Audit department attend the Audit Committee meetings. The Cost Auditors attend the Audit Committee meeting where cost audit report is discussed. The due date for filing the cost audit report in XBRL mode for the Financial Year ended March 31, 2015 was September 30, 2015 (as per extension given by MCA) and the cost audit report was filed by the Company on September 22, 2015. The cost audit report submitted by the Cost Auditors of the Company for Financial Year ended March 31, 2016 will be filed with Central Government on or before the due date, i.e. August 14, 2016. The Internal Auditor reports directly to the Audit Committee. Annual Report 2015-16Corporate Governance Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. The Chairman of the Audit Committee was present at the last Annual General Meeting held on June12, 2015. To review human resources policies and overall human resources of the Company MEETING DETAILS Six meetings of the Committee were held during the year, as against the minimum requirement of four meetings. The meetings were held on April 17, 2015; July 24, 2015; August 04, 2015; October 16, 2015; January 19, 2016; March 25, 2016. The details of attendance are given in this Report. HUMAN RESOURCES, NOMINATION AND REMUNERATION COMMITTEE COMPOSITION OF THE COMMITTEE Adil Zainulbhai (Chairman of the Committee) Yogendra P. Trivedi Dr. Dharam Vir Kapur Dr. Raghunath A. Mashelkar Independent Director Independent Director Independent Director Independent Director The Committee’s composition and terms of reference are in compliance with provisions of the Companies Act, 2013, Regulation 19 of the Listing Regulations and Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014, as amended from time to time. TERMS OF REFERENCE OF HUMAN RESOURCES, NOMINATION AND REMUNERATION COMMITTEE INTER ALIA INCLUDE THE FOLLOWING 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 To formulate the criteria for evaluation of Independent Directors and the Board To devise a policy on Board diversity To identify persons who are qualified to become Directors and who may be appointed in senior management in accordance with the criteria laid down and to recommend to the Board their appointment and/or removal To carry out evaluation of every Director’s performance To consider extension or continuation of term of appointment of independent directors on the basis of the report of performance evaluation of independent directors. To recommend/review remuneration of the Managing Director(s) and Whole-time Director(s) based on their performance and defined assessment criteria To administer, monitor and formulate detailed terms and conditions of the Employees’ Stock Option Scheme 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 To perform such other functions as may be necessary or appropriate for the performance of its duties MEETING DETAILS Four meetings of the Human Resources, Nomination and Remuneration Committee were held during the year. The meetings were held on April 17, 2015; July 23, 2015; October 08, 2015; January 18, 2016. The details of attendance are given in this Report. The details relating to remuneration of Directors, as required under Regulation 34 of the Listing Regulations, 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 Executive Director Independent Director The Stakeholders’ Relationship 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’s composition and terms of reference are in compliance with provisions of the Companies Act, 2013 and Regulation 20 the Listing Regulations. TERMS OF REFERENCE OF STAKEHOLDERS’ RELATIONSHIP COMMITTEE INTER ALIA INCLUDE THE FOLLOWING Oversee and review all matters connected with the transfer of the Company’s securities Approve issue of the Company’s duplicate share / debenture certificates Consider, resolve and monitor redressal of investors’ / shareholders’ / security holders’ grievances related to transfer of securities, non-receipt of Annual Report, non- receipt of declared dividend and so on. 181 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254  Oversee the performance of the Company’s Registrars and Transfer Agents Recommend methods to upgrade the standard of services to investors implementation and compliance with Monitor the Company’s Code of Conduct for Prohibition of Insider Trading Carry out any other function as is referred by the Board from time to time and / or enforced by any statutory notification / amendment or modification as may be applicable Perform such other functions as may be necessary or appropriate for the performance of its duties MEETING DETAILS Four meetings of the Committee were held during the year. The meetings were held on April 15, 2015; July 24, 2015; October 16, 2015; January 19, 2016. The details of attendance are given in this Report. COMPLIANCE OFFICER Shri K. Sethuraman, Group Company Secretary and Chief Compliance Officer, is the Compliance Officer for complying with requirements of Securities Laws. PROHIBITION OF INSIDER TRADING With a view to regulate trading in securities by the directors and designated employees, the Company has adopted a Code of Conduct for Prohibition of Insider Trading. 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 Non-Receipt of Interest/ Redemption Warrants Transfer of securities TOTAL Number of Complaints 944 13 610 6 170 14 730 As on March 31, 2016, no complaints were outstanding. All letters received from the investors are replied to and the response time for attending to investors’ correspondence during Financial Year 2015-16 is shown in the following table: Total number of correspondence received during 2015-16 Replied within 1 to 4 days of receipt Replied within 5 to 7 days of receipt Replied within 8 to 15 days of receipt Received in last week of March 2016 have been replied in April 2016 Number % 1 24 608 100.00 1 24 393 197 18 156 99.83 0.16 0.01 0.13 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 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 Board has also empowered the Committee to look into matters related to sustainability and overall governance. The Committee’s composition and terms of reference are in compliance with the provisions of the Companies Act, 2013. TERMS OF REFERENCE OF CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE COMMITTEE INTER ALIA INCLUDE THE FOLLOWING 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 thereunder To recommend the amount of expenditure to be incurred on the CSR activities To monitor the implementation of the CSR Policy of the Company from time to time To approve the Corporate Sustainability Reports and oversee the implementation of sustainability activities To oversee the implementation of policies contained in the Business Responsibility Policy Manual and to make any changes / modifications, as may be required, from time to time and to review and recommend the Business Responsibility Reports (BRR) to the Board for its approval 182 Annual Report 2015-16Corporate Governance Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.  To observe practices of Corporate Governance at all levels and to suggest remedial measures wherever necessary To ensure compliance with Corporate Governance norms prescribed under Listing Regulations, the Companies Act and other statutes or any modification or re-enactment thereof in the To advise the Board periodically with respect to significant developments law and practice of Corporate Governance and to make recommendations to the Board for appropriate revisions to the Company’s Corporate Governance Guidelines To monitor the Company’s compliance with Corporate Governance Guidelines and applicable laws and 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 To review and assess the adequacy of the Company’s Corporate Governance Manual, Code of Conduct for Directors and Senior Management, 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 To formulate / approve codes and / or policies for better governance To provide correct inputs to the media so as to preserve and protect the Company’s image and standing To disseminate factually correct information to investors, institutions and the public at large establish To corporate communication on behalf of the Company with the assistance of consultants / advisors, if necessary important oversight on To ensure institution of standardised channels of internal communications across the Company to facilitate a high level of disciplined participation 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) Dr. Dharam Vir Kapur P.M.S. Prasad Pawan Kumar Kapil Executive Director Independent Director Executive Director Executive Director The Committee is primarily responsible to monitor and ensure the highest standards 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 HEALTH, SAFETY AND ENVIRONMENT COMMITTEE INTER ALIA INCLUDE THE FOLLOWING the highest standards of Monitoring and ensuring environmental, health and safety norms 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 Reviewing, as the Committee deems appropriate, the Company’s health, safety and environment related policy and making recommendations as necessary Reviewing the Company’s performance on health, safety and environment related matters and suggesting improvements as the Committee may deem necessary Reviewing procedures and controls being followed at the Company’s various manufacturing facilities and plants for compliance with relevant statutory provisions Reviewing regularly and making recommendations about changes to the charter of the Committee Obtaining or performing an annual evaluation of the Committee’s performance and making appropriate recommendations. MEETING DETAILS Four meetings of the Corporate Social Responsibility and Governance Committee were held during the year. The meetings were held on April 16, 2015; July 23, 2015; October 08, 2015; January 18, 2016. The details of attendance are given in this Report. MEETING DETAILS Four meetings of the Health, Safety and Environment Committee were held during the year. The meetings were held on April 17, 2015; July 24, 2015; October 08, 2015; January 18, 2016. The details of attendance are given in this Report. 183 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 FINANCE COMMITTEE COMPOSITION OF THE COMMITTEE RISK MANAGEMENT COMMITTEE COMPOSITION OF THE COMMITTEE Mukesh D. Ambani (Chairman of the Committee) Nikhil R. Meswani Hital R. Meswani Chairman and Managing Director Executive Director Executive Director TERMS OF REFERENCE OF FINANCE COMMITTEE INTER ALIA INCLUDE THE FOLLOWING Adil Zainulbhai (Chairman of the Committee) Hital R. Meswani P.M.S. Prasad Alok Agarwal Srikanth Venkatachari Independent Director Executive Director Executive Director Chief Financial Officer Joint Chief Financial Officer 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 Review banking arrangements and cash management 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 Give guarantees/issue securities within the limits approved by the Board letters of comfort/providing 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 Provide corporate guarantee/performance guarantee by the Company within the limits approved by the Board Approve opening and operation of Investment Management Accounts with foreign banks and appoint them as agents, establishment of representative/sales offices in or outside India 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 Other transactions or financial issues that the Board may desire to have them reviewed by the Finance Committee Delegate authorities from time to time to the executives/ authorised persons to implement the Committee’s decisions Review regularly and make recommendations about changes to the charter of the Committee MEETING DETAILS Six meetings of the Finance Committee were held during the year. The meetings were held on April 17, 2015; May 21, 2015; July 24, 2015; September 07, 2015; October 16, 2015; January 19, 2016. The details of attendance are given in this Report. 184 The Committee’s prime responsibility is to implement and monitor the risk management plan and policy of the Company. The Committee’s composition is in compliance with provisions of Regulation 21 of Listing Regulations. TERMS OF REFERENCE OF RISK MANAGEMENT COMMITTEE INTER ALIA INCLUDE THE FOLLOWING Framing of Risk Management Plan and Policy Overseeing implementation of Risk Management Plan and Policy Monitoring of Risk Management Plan and Policy Validating the process of Risk Management Validating the procedure for Risk Minimisation Periodically reviewing and evaluating the Risk Management Policy and practices with respect to risk assessment and risk management processes from Continually obtaining management that all known and emerging risks have been identified and mitigated or managed reasonable assurance Performing such other functions as may be necessary or appropriate for the performance of its oversight function MEETING DETAILS Five meetings of the Committee were held during the year. The meetings were held on April 16, 2015; July 21, 2015; October 21, 2015; December 15, 2015; January 12, 2016. The details of attendance are given in this Report. DIRECTORS’ REMUNERATION REMUNERATION POLICY The Company’s Remuneration Policy for Directors, Key Managerial Personnel and other employees is annexed as Annexure IIIB to the Directors’ Report. Further, the Company has devised a Policy for performance evaluation of Independent Directors, Board, Committees and other individual Directors. 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. Annual Report 2015-16Corporate Governance Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. REMUNERATION OF THE CHAIRMAN AND MANAGING DIRECTOR AND WHOLE-TIME DIRECTORS DURING 2015-16 Name of the Director Salary Perquisites and allowances Retiral benefits Commission payable Performance Linked Incentive 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 0.71 0.22 0.21 0.15 0.09 9.53 11.6 11.6 - - - - - 4.87 1.60 (` in crore) Stock options granted - - - - 0.44 Total 15.00 14.42 14.41 7.23 2.94 The Chairman and Managing Director’s compensation has been set at ` 15 crore as against ` 38.75 crore as approved, 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. 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 for the financial year 2015-16: Name of the Non-Executive Director Mansingh L. Bhakta Yogendra P. Trivedi Dr. Dharam Vir Kapur Prof. Ashok Misra Prof. Dipak C. Jain Dr. Raghunath A. Mashelkar Adil Zainulbhai Nita M. Ambani Raminder Singh Gujral TOTAL Sitting Fee Commission (` In Lakh) Total 6 27 21 13 8 21 23 6 12 120 120 120 120 120 120 120 120 126 147 141 133 128 141 143 126 96.33 108.33 137 1056.33 1193.33 During the year, the Company paid ` 3.54 lakh 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. However, Prof. Dipak C. Jain and Shri Adil Zainulbhai, the Company’s Independent Directors have been appointed as Independent Directors on the Board of Reliance Retail Ventures Limited and Reliance Jio Infocomm Limited, subsidiaries of the Company. The Company monitors performance of subsidiary companies, inter alia, by the following means: Financial statements, in particular investments made by unlisted subsidiary companies, reviewing quarterly by the Company’s Audit Committee 185 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254  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 Company’s Policy for determining Material Subsidiaries is put up on the Company’s website and can be accessed at http://www.ril.com/InvestorRelations/Downloads.aspx GENERAL BODY MEETINGS ANNUAL GENERAL MEETINGS During the preceding three years, the Company’s Annual General Meetings were held at Birla Matushri Sabhagar, 19, New Marine Lines, Mumbai – 400 020. 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 Special Resolution Passed 2014- 15 June 12, 2015 11.00 a.m. 2013- 14 June 18, 2014 11.00 a.m. i.    Continuation of employment of Shri Pawan Kumar Kapil as a Whole-time Director designated as Executive Director ii.   Offer or invitation for subscription of Non-Convertible Debentures on private placement basis (enabling resolution – not implemented) i. Payment of remuneration to Non-Executive Directors not exceeding in aggregate one percent of the net profits of the Company ii.   Offer or invitation for subscription of Non-Convertible Debentures on private placement basis (enabling resolution – not implemented) iii.  Adoption of new Articles of Association of the Company 2012- 13 June 06, 2013 11.00 a.m. i.    Payment of commission to Non-Executive Directors SPECIAL RESOLUTION(S) PASSED THROUGH POSTAL BALLOT No postal ballot was conducted during the Financial Year 2015-16. There is no immediate proposal for passing any resolution through Postal Ballot. None of the businesses proposed to be transacted at the ensuing Annual General Meeting require passing a resolution through Postal Ballot. 186 DISCLOSURES 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 The Company’s major related party transactions are generally with its subsidiaries and associates. The related party transactions are entered into based on considerations of various business exigencies, such as synergy in operations, sectoral 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. indirect subsidiary) from Reliance During the year, the Company acquired 18,00,000 Ordinary Shares of Reliance Global Business B.V., Netherlands (wholly-owned Industrial Investments and Holdings Limited (wholly-owned direct subsidiary) at par value for a total consideration of Euro 18,000 equivalent to ₹ 13.50 lakh with the approval granted by the Audit Committee and Board of Directors at their respective meetings. All other contracts / arrangements / transactions entered by the Company during the financial year with related parties were in the ordinary course of business and at an arm’s length basis. During the year, the Company had not entered into any contract/ arrangement / transaction with related parties which could be considered material in accordance with the policy of the Company on materiality of related party transactions. Please refer to Note No. 31 of Standalone Financial Statements, forming part of the Annual Report. None of the transactions with any of related parties were in conflict with the Company’s interest. The Company’s Policy on Materiality of Related Party Transactions and dealing with Related Party Transactions is put up on the Company’s website and can be accessed at http://www.ril.com/InvestorRelations/Downloads.aspx DETAILS OF NON-COMPLIANCE BY THE COMPANY, PENALTIES, STRICTURES IMPOSED ON THE COMPANY BY STOCK EXCHANGE OR SEBI, OR ANY STATUTORY AUTHORITY, ON ANY MATTER RELATED TO CAPITAL MARKETS, DURING THE LAST THREE YEARS (i) SEBI had issued a Show Cause Notice in connection with the alleged non-disclosure of the diluted Earnings Per Share in the filing with Stock Exchanges in respect of warrants issued in April, 2007. The Adjudicating Officer of SEBI imposed an aggregate monetary penalty of Rs. 13 crore. The Company had challenged this order before the Hon’ble Securities Appellate Tribunal (‘SAT’). SAT has set aside the said order Annual Report 2015-16Corporate Governance Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. and remanded the matter for fresh consideration by SEBI. SEBI has initiated adjudication proceedings and has issued a Show Cause Notice dated April 05, 2016 in the matter and the Company has filed reply to the same. 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. (ii) SEBI had issued a Show Cause Notice dated November 26, 2015 to the Company alleging that, the Company had not provided the information sought by SEBI regarding categorization of the Directors of the Company as on January 07, 2000. The Company has filed its reply to the aforesaid Show Cause Notice, attended the personal hearing in the matter and provided the information to SEBI. WHISTLE BLOWER POLICY The Company promotes ethical behaviour in all its business activities and has put in place a mechanism for reporting illegal or unethical behaviour. The Company has a Vigil Mechanism and Whistle blower policy under which the employees are free to report violations of applicable laws and regulations and the Code of Conduct. The reportable matters may be disclosed to the Ethics and Compliance Task Force which operates under the supervision of the Audit Committee. Employees may also report to the Chairman of the Audit Committee. During the year under review, no employee was denied access to the Audit Committee. MEANS OF COMMUNICATION Quarterly results: The Company’s quarterly/half yearly/ annual financial results are sent to the Stock Exchanges and published in ‘Indian Express’, ‘Financial Express’ and ‘Navshakti’. Simultaneously, they are also put up on the Company’s website (www.ril.com). News releases, presentations, among others: Official news releases and official media releases are sent to Stock Exchanges and are displayed on its website (www.ril.com). Presentations to institutional investors / analysts: Detailed presentations are made to institutional investors and financial analysts on the Company’s quarterly as well as annual financial results. These presentations and Schedule of analyst or institutional investors meet are also uploaded on the Company’s website (www. ril.com) as well as sent to the Stock Exchanges. No unpublished price sensitive information is discussed in presentation made to institutional investors and financial analysts. (www.ril.com) contains Website: The Company’s website a separate dedicated section ‘Investor Relations’ where shareholders’ information is available. The Company’s Annual Report is also available in downloadable form. Annual Report: The Annual Report containing, inter alia, Audited Financial Statements, Audited Consolidated Financial Chairman’s Communiqué: The printed copy of the Chairman’s speech is distributed to shareholders at 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. 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, statement of investor complaints, 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, statement of investor complaints, 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: For queries on Annual Report: investor_relations@ril.com For queries in respect of shares in physical mode: rilinvestor@karvy.com Shareholders’ Feedback Survey: The Company had sent feedback forms seeking shareholders’ views on various matters relating to investor services and Annual Report 2014-15. The feedback received from shareholders is placed before the Stakeholders’ Relationship Committee. 187 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 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) Thursday, September 1, 2016 at 11.00 a.m. Birla Matushri Sabhagar, Near Bombay Hospital & Medical Research Centre, 19, New Marine Lines, Mumbai 400 020 OVERSEAS DEPOSITORY The Bank of New York Mellon Corporation, 101, Barclay Street, New York, NY 10286 USA. DOMESTIC CUSTODIAN ICICI Bank Limited, Empire Complex, E7/F7, 1st Floor, 414, Senapati Bapat Marg, Lower Parel, Mumbai 400 013. DEBT SECURITIES The details of listing of Non-Convertible Debentures issued by the Company are given here below. FINANCIAL YEAR April 1 to March 31 FINANCIAL CALENDAR (TENTATIVE) RESULTS FOR THE QUARTER ENDING June 30, 2016 – Third week of July, 2016 September 30, 2016 – Third week of October, 2016 December 31, 2016 – Third week of January, 2017 March 31, 2017 – Third week of April, 2017 Annual General Meeting – June, 2017 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”, C-1, Block G, Bandra-Kurla Complex, Bandra (East), Mumbai 400 051 Trading Symbol – RELIANCE EQ ISIN: INE002A01018 GLOBAL DEPOSITORY RECEIPTS (GDRs) The GDRs of the Company are listed on Luxembourg Stock Exchange, 11, Avenue de la Porte- Neuve, L – 2227, Luxembourg. on traded System Also (London Stock Exchange) and PORTAL System (NASD, USA) Trading Symbol RILYP, CUSIP 759470107. International Order Book Non- Convertible Debentures Series Listing Details PPD 177 Listed on Wholesale Debt Market Segment of NSE PPD 179 - T3 Listed on Wholesale Debt Market Segment of NSE PPP 180 – T1 Listed on Wholesale Debt Market Segment of BSE and NSE The Company has issued bonds from time to time in the international markets by way of private placement as well as bond offerings listed on stock exchanges. The Company’s bonds are listed on Singapore Stock Exchange, Taipei Exchange and Luxembourg Stock Exchange. DEBENTURE TRUSTEE 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 2016-17 has been paid by the Company to BSE and NSE. Annual maintenance and listing agency fee for the calendar year 2016 has been paid by the Company to the Luxembourg Stock Exchange. PAYMENT OF DEPOSITORY FEES Annual Custody/Issuer fee for the year 2016-17 has been paid by the Company to NSDL and CDSL. 188 Annual Report 2015-16Corporate Governance Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.STOCK MARKET PRICE DATA MONTH Month Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 National Stock Exchange (NSE) BSE Limited (BSE) High Price (`) Low Price (`) Volume (No.) High Price(`) Low Price (`) Volume (No.) 944.30 915.40 1 014.10 1 067.85 1 013.85 899.50 974.80 992.50 1 019.70 1 089.75 1 041.80 1 056.00 813.10 857.20 873.65 983.15 818.00 825.10 858.60 909.95 912.85 976.70 888.10 964.65 8 80 56 659 6 62 04 721 10 23 24 475 7 17 75 890 7 57 37 348 7 22 43 540 5 77 35 526 5 48 29 775 6 63 41 940 11 91 01 279 8 18 68 834 7 10 67 102 943.80 915.50 1 013.80 1 067.00 1 013.20 899.00 974.00 992.00 1 018.50 1 089.50 1 041.00 1 055.95 814.00 857.90 874.00 984.30 819.00 825.25 858.80 910.00 913.00 978.15 888.50 965.00 84 62 614 69 02 299 1 16 41 485 96 00 630 76 51 509 85 19 428 47 73 882 42 01 879 56 67 572 1 79 71 880 1 03 94 659 90 04 567 [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, 2016 BSE (% Change) Sensex RIL NSE (% Change) Nifty RIL FY 2015-16 26.74% -9.36% 26.54% -8.86% 2 years 3 years 5 years 12.45% 13.20% 12.30% 15.43% 35.10% 34.54% 35.23% 36.18% -0.24% 30.32% -0.37% 32.65% REGISTRARS AND TRANSFER AGENTS Karvy Computershare Private Limited Karvy Selenium Tower B, 6th Floor Plot 31-32, Gachibowli Financial District, Nanakramguda, Hyderabad – 500 032 Tel: +91-40-67161700 Toll Free No.: 1800-4258-998; Fax: +91-40-23114087 e-mail: rilinvestor@karvy.com Website: www.karvy.com SHARE TRANSFER SYSTEM Share transfers are processed and share certificates duly endorsed are delivered 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, and so on 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 quarterly Board meeting / Stakeholders’ Relationship Committee. The Company obtains from a Company Secretary in Practice half-yearly certificate to the effect that all certificates have been issued within thirty days of the date of lodgement of the transfer, sub division, consolidation and renewal as required under Regulation 40(9) of the Listing Regulations and files a copy of the said certificate with Stock Exchanges. 189 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254DISTRIBUTION OF SHAREHOLDING AS ON MARCH 31, 2016 Category 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 Group Indian Foreign Total Shareholding of Promoter and Promoter Group 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) 58* 1 46 31 01 074 0 0  58 1 46 31 01 074 2 206 1 04 91 16 260 26 40 187 63 19 09 431 26 42 393 1 68 10 25 691 0 1 0 9 62 49 556 45.15 0.00 45.15 32.38 19.50 51.88 0.00 2.97 26 42 452 3 24 03 76 321 100.00 * 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 2.97 (%) SHAREHOLDING PATTERN BY SIZE AS ON MARCH 31, 2016 19.50 32.38 45.15 Category (Shares) Holders Shares Up to 500 501-1000 1001-5000 5001-10000 25 28 494 17 16 36 964 66 590 4 69 74 998 41 705 7 86 51 110 2 895 2 01 68 184 10001-20000 1 041 1 44 83 862 % of Total Shares 5.30 1.45 2.43 0.62 0.45 Promoter Institutions Non-Institutions GDR Holders Above 20000 1 727 2 90 84 61 203 89.76 TOTAL 26 42 452 3 24 03 76 321 100.00 190 Annual Report 2015-16Corporate Governance Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.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 Conversion of Loan Rights Issue II Debenture Series II Conversion Debenture Series I Conversion Phase II Shareholders of Sidhpur Mills Co Limited (Merged with the Company) Rights Issue II NRI Debenture Series III Conversion Rights Issue II Shareholders of Sidhpur Mills Co Limited (Merged with the Company) II Bonus Issue- II Shareholders of Sidhpur Mills Co Limited (Merged with the Company) III Debenture Series IV Conversion Shareholders of Sidhpur Mills Co Limited (Merged with the Company) IV Shareholders of Sidhpur Mills Co Limited (Merged with the Company) V Debenture Series I Conversion Debenture Series II Conversion Shareholders of Sidhpur Mills Co Limited (Merged with the Company) VI Consolidation of Fractional Coupon Shares Debenture Series E Conversion Debenture Series III Conversion Debenture Series IV Conversion Shareholders of Sidhpur Mills Co Limited (Merged with the Company) VII Consolidation of Fractional Coupon Shares Shareholders of Sidhpur Mills Co Limited (Merged with the Company) VIII Shareholders of Sidhpur Mills Co Limited (Merged with the Company) IX Debenture Series G Conversion 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) Allotment Date No. of Shares 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 December 31, 1981 April 12, 1982 June 15, 1982 August 31, 1982 September 9, 1982 December 29, 1982 September 30, 1983 September 30, 1983 September 30, 1983 April 5, 1984 June 20, 1984 October 1, 1984 December 31, 1984 January 31, 1985 April 30, 1985 April 30, 1985 July 5, 1985 December 17, 1985 December 31, 1985 December 31, 1985 November 15, 1986 April 1, 1987 August 1, 1987 February 4, 1988 February 4, 1988 June 2, 1988 October 31, 1988 November 29, 1990 May 22, 1991 October 10, 1991 June 3, 1992 December 4, 1992 July 7, 1993 August 26, 1993 August 26, 1993 February 23, 1994 March 1, 1994 August 3, 1994 1 100 59 50 000 9 40 000 6 47 832 45 23 359 8 40 575 24 673 2 43 200 1 40 800 23 80 518 8 42 529 27 168 81 059 774 19 20 000 41 1 942 1 11 39 564 371 64 00 000 617 50 97 66 783 2 16 571 91 45 005 53 33 333 52 835 42 871 106 610 40 284 169 6 60 30 100 3 15 71 695 29 35 380 25 10 322 46 25 1 84 00 000 4,060 7 49 42 763 3 16 667 3 64 60 000 1 03 16 092 2 55 32 000 18 38 950 87 40 000 191 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Particulars 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 Conversion of 3.5% ECB Due 1999 VIII Conversion of Warrants Shareholders of Reliance Petroleum Limited (Merged with the Company) Shareholders of Indian Petrochemicals Corporation Limited (Merged with the Company) Exercise of Warrants ESOS – Allotment Shareholders of Reliance Petroleum Limited (Merged with the Company) Bonus Issue IV ESOS – Allotment ESOS – Allotment ESOS – Allotment ESOS – Allotment ESOS – Allotment ESOS – Allotment ESOS – Allotment Less: Shares bought back and extinguished on January 24, 2005 Less: Shares bought back and extinguished from February 08, 2012 to January 22, 2013 TOTAL EQUITY AS ON MARCH 31, 2016 Allotment Date No. of Shares October 21, 1994 December 22, 1994 March 16, 1995 2 45 45 450 75 472 9 95 75 915 March 10, 1995 May 24, 1997 July 11, 1997 July 22, 1997 September 13, 1997 October 22, 1997 November 4, 1997 December 20, 1997 December 4, 1997 September 27, 1999 January 12, 2000 October 23, 2002 October 13, 2007 October 3, 2008 Various dates in 2008-09 September 30, 2009 November 28,2009 Various dates in 2009-10 Various dates in 2010-11 Various dates in 2011-12 February 22, 2013 Various dates in 2013-14 Various dates in 2014-15 Various dates in 2015-16 74 80 000 544 13 31 042 6 05 068 18 64 766 18 15 755 1 03 475 46 60 90 452 15 68 499 7 624 12 00 00 000 34 26 20 509 6 01 40 560 12 00 00 000 1 49 632 6 92 52 623 1 62 67 93 078 5 30 426 29 99 648 13 48 763 1 86 891 32 38 476 37 86 907 46 87 556 -28 69 495 -4 62 46 280 324 03 76 321 CORPORATE BENEFITS TO INVESTORS DIVIDEND DECLARED FOR THE LAST 10 YEARS Financial Year Dividend Declaration 2005-06 2006-07 2007-08 2008-09 2009-10 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 June 18, 2014 June 12, 2015 March 10, 2016 (interim) 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 * Share of paid-up value of `10 per share. 192 BONUS ISSUES OF FULLY PAID-UP EQUITY SHARES Financial Year Ratio 1980-81 1983-84 1997-98 2009-10 3:5 6:10 1:1 1:1 Dividend per Share* 10 11 13 13 7 8 8.5 9 9.5 10 10.50 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 Annual Report 2015-16Corporate Governance Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Limited (RCoVL) in the ratio of one equity share of each of the companies for every equity share held by shareholders except specified shareholders, in Reliance Industries Limited, as on the record date fixed for the purpose. Accordingly, 122,31,30,422 equity shares each of REVL, RNRL, RCVL and RCoVL were allotted on January 27, 2006. DEMATERIALISATION OF SHARES Mode of Holding NSDL CDSL Physical TOTAL % age 96.04% 1.87% 2.09% 100.00 97.91% of Company’s paid-up Equity Share Capital has been dematerialised up to March 31, 2016 (97.81% up to March 31, 2015). 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. Relevant data for the average daily turnover for the Financial Year 2015-16 is given below: BSE NSE Total Shares (nos.) 4 24 261 37 54 199 41 78 460 Value (in ` crore) 40.54 356.80 397.34 [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, 2016 represent 9,62,49,556 equity shares constituting 2.97% 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 2015-16 and other particulars to Employees’ Stock Options are put up with on the Company’s website and can be accessed at http://www.ril.com/InvestorRelations/Downloads.aspx regard COMMODITY PRICE RISKS / FOREIGN EXCHANGE RISK AND HEDGING ACTIVITIES The Company is subject to commodity price risks due to fluctuation in prices of crude oil, gas and downstream petroleum products. The Company’s payables and receivables are in U.S. Dollars and due to fluctuations in foreign exchange prices, it is subject to foreign exchange risks. The Company has in place a robust risk management framework for identification and monitoring and mitigation of commodity price and foreign exchange risks. The risks are tracked and monitored on a regular basis and mitigation strategies are adopted in line with the risk management framework. For further details on the above risks, please refer the Enterprise Risk Management section of the Management Discussion and Analysis Report. PLANT LOCATIONS IN INDIA 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 193 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254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 DAHEJ MANUFACTURING DIVISION P. O. Dahej – 392 130, Taluka: Vagra, District 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, District Hoshiarpur – 146 024, Punjab, India JAMNAGAR Village Meghpar/Padana, Taluka Lalpur, Jamnagar – 361 280, Gujarat, India JAMNAGAR SEZ UNIT Village Meghpar/Padana, Taluka Lalpur, Jamnagar – 361 280, Gujarat, India NAGOTHANE MANUFACTURING DIVISION P. O. Petrochemicals Township, Nagothane – 402 125, Roha Taluka, District Raigad, Maharashtra, India NAGPUR MANUFACTURING DIVISION Village: Dahali, Mouda, Ramtek Road, Tehsil Mouda – 441 104, District Nagpur, Maharashtra, India PATALGANGA MANUFACTURING DIVISION B-1 to B-5 & A3, MIDC Industrial Area, P.O. Rasayani, Patalganga – 410 220, District Raigad, Maharashtra, India SILVASSA MANUFACTURING DIVISION 342, Kharadpada, P.O. Naroli – 396 235, Union Territory of Dadra and Nagar Haveli, India VADODARA MANUFACTURING DIVISION P. O. Petrochemicals, Vadodara – 391 346, Gujarat, India OIL & GAS KG D6 ONSHORE TERMINAL Village Gadimoga, Tallarevu Mandal, East Godavari District – 533 463, Andhra Pradesh, India 194 COAL BED METHANE PROJECT (CBM) Village & P. O. : Lalpur, Tehsil: Burhar, District Shahdol, Madhya Pradesh – 484 110, India TEXTILES NARODA MANUFACTURING DIVISION 103/106, Naroda Industrial Estate, Naroda, Ahmedabad – 382 330, Gujarat, India ADDRESS FOR CORRESPONDENCE FOR SHARES/DEBENTURES HELD IN PHYSICAL FORM Karvy Computershare Private Limited Karvy Selenium Tower B, 6th Floor Plot 31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad – 500 032 Tel: +91-40-67161700 Toll Free No.: 1800-4258-998; Fax: +91-40-23114087 Website: www.karvy.com; E-mail: rilinvestor@karvy.com FOR SHARES/DEBENTURES HELD IN DEMAT FORM Investors’ concerned Depository Karvy Computershare Private Limited. Participant(s) and/or ANY QUERY ON THE ANNUAL REPORT Shri Sandeep Deshmukh 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 During the year under review, the Company has credited ` 11.88 crore to the Investor Education and Protection Fund (IEPF) pursuant to Section 205C of the Companies Act, 1956 read with the Investor Education and Protection Fund (Awareness and Protection of Investors) Rules, 2001. Annual Report 2015-16Corporate Governance Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.The cumulative amount transferred to IEPF up to March 31, 2016 is ` 130.21 crore. Pursuant to 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 July 15, 2016 on the Company’s website: http://www.ril.com/InvestorRelations/ShareholdersInformation.aspx EQUITY SHARES IN THE SUSPENSE ACCOUNT In terms of Regulation 39 of the Listing Regulations, 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: Particulars Aggregate Number of shareholders and the outstanding shares in the suspense account lying as on April 1, 2015 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 Aggregate Number of shareholders and the outstanding shares in the suspense account lying as on March 31, 2016 Demat Number of equity shares Number of Shareholders 96 1 308 Number of Shareholders (phase wise transfers) 1 61 299 Physical Number of equity shares 61 38 914 0 0 0 0 1 184 91 315 0 0 96 1 308 1 60 115 60 47 599 The voting rights on the shares in the suspense account shall remain frozen till the rightful owners claim the shares. COMPLIANCE OF CORPORATE GOVERNANCE REQUIREMENTS SPECIFIED IN REGULATION 17 TO 27 AND REGULATION 46(2)(b) TO (i) OF LISTING REGULATIONS Particulars Sr. No. Regulation 1. Board of Directors 17 Compliance Status Yes / No/N.A. Yes 2. Audit Committee 3. 4. Nomination and Remuneration Committee Stakeholders’ Relationship Committee 18 19 20 Yes Yes Yes Compliance observed for the following Composition Meetings Review of compliance reports Plans for orderly succession for appointments Code of Conduct Fees / compensation to Non-Executive Directors Minimum information to be placed before the Board Compliance Certificate Risk assessment and management Performance evaluation of Independent Directors Composition Meetings Powers of the Committee Role of the Committee and review of information by the Committee Composition Role of the Committee Composition Role of the Committee 195 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 Particulars Sr. No. Regulation 5. 6. 7. 8. Risk Management Committee Vigil Mechanism Related Party Transactions Subsidiaries of the Company 9. Obligations with respect to Independent Directors 10. Obligations with respect to Directors and Senior Management 11. Other Corporate Governance requirements 21 22 23 24 25 26 27 12. Website 46(2)(b) to (i) Compliance Status Yes / No/N.A. Yes Yes Yes Yes Yes Yes Yes Yes Compliance observed for the following Composition Role of the Committee Formulation of Vigil Mechanism for Directors and employees Director access to Chairperson of Audit Committee Policy on Materiality of Related Party Transactions and dealing with Related Party Transactions Approval including omnibus approval of Audit Committee Review of Related Party Transactions There were no material Related Party Transactions There was no material subsidiary of the Company and as a result the other compliance in respect of material subsidiary were not applicable Review of financial statements of unlisted subsidiary by the Audit Committee Significant transactions and arrangements of unlisted subsidiary Maximum directorships and tenure Meetings of Independent Directors Familiarisation of Independent Directors Memberships / Chairmanships in Committees Affirmation on compliance of Code of Conduct by Directors and Senior Management Disclosure of shareholding by Non-Executive Directors Disclosures by Senior Management about potential conflicts of interest Compliance with discretionary requirements Filing of quarterly compliance report on Corporate Governance Terms and conditions for appointment of Independent Directors Composition of various Committees of the Board of Directors Code of Conduct of Board of Directors and Senior Management Personnel Details of establishment of Vigil Mechanism/ Whistle Blower policy Policy on dealing with Related Party Transactions Policy for determining material subsidiaries Details of familiarisation programmes imparted to Independent Directors COMPLIANCE CERTIFICATE OF THE AUDITORS Certificate from the Company’s Auditors, M/s. Chaturvedi & Shah, Deloitte Haskins & Sells LLP and M/s. Rajendra & Co., confirming compliance with conditions of Corporate Governance, as stipulated under Regulation 34 of the Listing Regulations, is attached to this Report. 196 ADOPTION OF MANDATORY AND NON-MANDATORY REQUIREMENTS The all mandatory requirements of Regulation 34 of the Listing Regulations. following non-mandatory The Company has adopted requirements of Regulation 27 and Regulation 34 of the Listing Regulations. complied with Company has Annual Report 2015-16Corporate Governance Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 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. REPORTING OF INTERNAL AUDITOR The Internal Auditor directly reports to the Audit Committee. 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 Conduct’ and ‘Our Code’ for the Financial Year 2015-16. Mukesh D. Ambani Chairman and Managing Director Mumbai April 22, 2016 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 Regulation 17(8) of the Listing Regulations. 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 Regulation 33(2) of the Listing Regulations. The annual certificate given by the Chairman and Managing Director and the Chief Financial Officer is published in this Report. CEO / CFO CERTIFICATE To, The Board of Directors Reliance Industries Limited 1. We have reviewed financial statement and the cash flow statement of Reliance Industries Limited for the year ended March 31, 2016 and to the best of our knowledge and belief: i. ii. these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading; 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. 3. 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 violative of the Company’s Code of Conduct. We accept 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. 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. ii. iii. that there are no significant changes in internal control over financial reporting during the year; that there are no significant changes in accounting policies during the year; and that there are no instances of significant fraud of which we have become aware. Mukesh D. Ambani Chairman and Managing Director Alok Agarwal Chief Financial Officer Srikanth Venkatachari Joint Chief Financial Officer Mumbai April 22, 2016 197 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE To the Members, Reliance Industries Limited 1. We have examined the compliance of conditions of Corporate Governance by Reliance Industries Limited (“the Company”), for the year ended on 31st March, 2016, as stipulated in: Clause 49 (excluding clause 49(VII)(E)) of the Listing Agreements of the Company with stock exchange(s) for the period from April 01, 2015 to November 30, 2015. Clause 49(VII)(E) of the Listing Agreements of the Company with the stock exchange(s) for the period from April 01, 2015 to September 01, 2015. Regulation 23(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the Listing Regulations) for the period from September 02, 2015 to March 31, 2016, and Regulations 17 to 27 (excluding regulation 23(4)) and clauses (b) to (i) of regulation 46(2) and para C, D and E of Schedule V of the Listing Regulations for the period from December 01, 2015 to March 31, 2016. 2. 3. 4. The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited to the procedures and implementation thereof, adopted by the Company for ensuring compliance with the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company. We have examined the relevant records of the Company in accordance with the Generally Accepted Auditing Standards in India, to the extent relevant, and as per the Guidance Note on Certification of Corporate Governance issued by the Institute of the Chartered Accountants of India. In our opinion and to the best of our information and according to our examination of the relevant records and the explanations given to us and 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 Listing Agreement and regulation 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C , D and E of Schedule V of the Listing Regulations for the respective periods of applicability as specified under paragraph 1 above, during the year ended March 31, 2016. 5. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the Management has conducted the affairs of the Company. For Chaturvedi & Shah Chartered Accountants For Deloitte Haskins & Sells LLP Chartered Accountants For Rajendra & Co. Chartered Accountants (Registration No. 101720W) (Registration No. 117366W / W-100018) (Registration No. 108355W) (Rajesh D. Chaturvedi) Partner (A. B. Jani) Partner (A. R. Shah) Partner Membership No. 45882 Membership No. 46488 Membership No. 47166 Mumbai, July 15, 2016 198 Annual Report 2015-16Corporate Governance Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 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 upstream into oil and gas exploration and production. He created several new world class manufacturing involving diverse technologies that have raised facilities Reliance’s petrochemicals manufacturing capacities from less than a million tonnes to about fourteen million tonnes per year. He is envisaging almost doubling these capacities to twenty seven million tonnes per annum within a short span. Shri Mukesh D. Ambani led the creation of the world’s largest grassroots petroleum refinery at Jamnagar, India, with a capacity of 6,60,000 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 5,80,000 barrels per day 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 in the world offering end to end solutions that address the entire value chain across various digital services in key domains of national interest such as Education, Healthcare, Security, Financial Services, Government- Citizen interfaces and Entertainment. Shri Mukesh D. Ambani’s achievements have been acknowledged at several national and international levels. Over the years, some of the awards and recognition bestowed on him are: Awarded Othmer Gold Medal for Entrepreneurial Leadership by The Chemical Heritage Foundation (CHF), Philadelphia, USA in May 2016 Conferred an honorary Doctor of Science by Institute of Chemical Technology (ICT), Mumbai in February 2015 In 2014, he continues to be featured in the list of the ‘Most Powerful People in the World’ by Forbes magazine NDTV honored him as one of the 25 Greatest Global Living Legends in 2013 Awarded as ‘Global Challenger’ by Boston Consulting Group in 2013 In 2013, he was conferred ‘Entrepreneur of the Decade’ by All India Management Association In 2011, he was featured in the list of TIME 100 Most Influential People in the World In 2011, ranked the 5th best performing CEO in the World by the Harvard Business Review in its ranking of the top 50 global CEOs In 2010, awarded the Dean’s Medal by University of Pennsylvania Dean of the School of Engineering and Applied Science for his leadership in the application of Engineering and Technology Shri Mukesh D. Ambani is a member of the Prime Minister’s Council on Trade and Industry, Government of India and Board of Governors of the National Council of Applied Economic Research. He is the Chairman of Board of Governors, Pandit Deendayal Petroleum University, Gandhinagar. Shri Mukesh D. Ambani is a Board member of the Interpol Foundation and a Member of The Foundation Board of World Economic Forum. 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 International Advisory Council, Global Advisory Council of Bank of America, Member of The Business Council and London School of Economics’ India Advisory Group. Shri Mukesh D. Ambani is elected as a Foreign Member of prestigious United States National Academy of Engineering. Only 9 other Indians have ever received this prestigious honour. Shri Mukesh D. Ambani is the Chairman 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 Board of Directors and Finance Committee. He is Promoter of the Company and holds 36,15,846 shares of the Company in his name as on March 31, 2016. 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. 199 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 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 for integration of IPCL with Reliance businesses. In addition, he continues to shoulder several other corporate responsibilities such as Corporate Affairs and Group’s taxation policies. He also takes keen interest in IPL cricket franchise “Mumbai Indians”, ISL & other sports initiatives of the group. 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 is a Member of the Board of Trade, Ministry of Commerce, Government of India. 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 a member of Global Advisory Board of Harvard University. 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 currently ranked fourth among Top 40 Global Power Players in chemical industry as per ICIS – leading chemical industry magazine. 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, Chairman of its Audit Committee and member of its Nomination and Remuneration Committee. He is a Director of Reliance Industrial Investments and Holdings Limited and 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 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, 2016. 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 35 years. Over the years, he has held various senior positions in the Fibres, Petrochemicals, Refining & Marketing and Exploration & Production Businesses of the Company. Shri Prasad 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. Shri Prasad is a member of the Health, Safety and Environment Committee and Risk Management Committee of the Company. He holds 4,18,374 shares of the Company in his name as on March 31, 2016. He is also a Director of Reliance Commercial Dealers Limited and Chairman of its Nomination and Remuneration Committee. 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 04, 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, Stakeholders’ Relationship Committee, Risk Management Committee and Chairman of the Health, Safety and Environment Committee of the Company. He holds 1,36,666 shares of the Company in his name as on March 31, 2016. 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. 200 Annual Report 2015-16Corporate Governance Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.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 startup/ 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 Co-ordination 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, and so on. 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 25,000 shares of the Company in his name as on March 31, 2016. 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 60 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. He is the Lead Independent Director of the Company. 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’ for six consecutive years. Recently, ‘Trans Asian Chamber of Commerce & Industry’ conferred on him the prestigious award of ‘The Pillar of Hindustaanee Society’ for the year 2014-15 in the field of ‘Ethical Law Practice’. He holds 3,30,000 shares of the Company in his name as on March 31, 2016. Shri Yogendra P. Trivedi (DIN 00001879) is practicing as senior advocate in Supreme Court of India. He was a member of the Rajya Sabha till April 02, 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 President of the Indian Merchant’s Chamber and presently is a Member of its 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. Mr. Trivedi is a Chairman / Director of Sai Service Pvt. Ltd., Supreme Industries Limited, Zodiac Clothing Company Limited, New Consolidated Construction Company Limited, Emami Limited, Federation of Indian Automobile Association and other private limited companies. He is the Chairman of Indo African Chamber of Commerce. He was the President of the Cricket Club of India. He was the past President of the Western India Automobile Association. He is also Member of the Indian Merchant’s Chamber, All India Association of Industries, W.I.A.A. Club, Yachting Association of India, B.C.A Club, Orient Club and Yacht Club. Mr. Trivedi is also the Chairman of the Audit Committee, the Corporate Social Responsibility and Governance Committee and the Stakeholders’ Relationship Committee of the Company. He is a member of the Human Resources, Nomination and Remuneration Committee of the Company. He is also a member of the Audit Committee of Zodiac Clothing Company Limited. He has been conferred Honorary Doctorate (HonorisCausa) by Fakir Mohan University, Balasore, Odisha. 201 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254He holds 27,984 shares of the Company in his name as on March 31, 2016. Energy Forum. Eminent Engineer Award 2016 has been awarded to Dr. Kapur by Engineering Council of India (ECI). Dr. Dharam Vir Kapur (DIN 00001982) was born in 1928 in Peshawar where he had his early education. He graduated with honours in Electrical Engineering in 1951 from, Jadavpur, Calcutta and has wide experience in Power, Capital Goods, Chemicals and Petrochemicals Sectors. After varying stints from 1951 to 1962, as an electrical engineer in Hirakud Dam project, Punjab State Electricity Board and Indian Railways, he served with distinction in various positions in Bharat Heavy Electricals Limited. Most remarkable achievement of his career was establishment of fast growing systems oriented National Thermal Power Corporation (NTPC) as the founder Chairman-cum-Managing Director (CMD) and was described as a ‘Model Manager’ by the Board of Executive Directors of the World Bank. Dr. Kapur has authored “The Bloom in the Desert – The Making of NTPC”, the phenomenal success story which in a large part is the result of the processes and work culture put in place by Team NTPC led by him during early years. As a technocrat Dr. Kapur also has the rare distinction of holding a diplomatic assignment as First Secretary/Counsellor in Indian Embassy in Moscow, to coordinate economic relations and wide ranging industrial collaborations between Soviet enterprises and PSUs in India. As Secretary to the Government of India in the Ministries of Power, Heavy Industry and Chemicals & Petrochemicals during 1980-86, Dr. Kapur was actively involved in establishing “Maruti” in collaboration with Suzuki of Japan to set up a state of art automobile plant. He also made significant contributions by introducing new management practices and liberalization initiatives including “Broad Banding” and “Minimum economic sizes” in industrial licensing. He was also associated with a number of National Institutions as Member, Atomic Energy Commission; Member, Advisory Committee of the Cabinet for Science and Technology; Chairman, Board of Governors, IIT Bombay (1983-94); Member, Board of Governors, IIM Lucknow and Chairman, National Productivity Council. Dr. Kapur was also member of various government committees. 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 degree of D.Sc. In March 2010 Dr. Kapur delivered ‘Dr. Triguna Sen Memorial Lecture’ and the National Council of Education, Bengal conferred its “Fellowship” on him. 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. 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 In addition to Reliance Industries Limited, Dr. Kapur is also on the Board of Honda Siel Power Products Limited, DLF Limited and other private limited companies. He has also served on the Board of Tata Chemicals Limited, L&T and Ashok Leyland. He has also been Chairman of subsidiaries of Jacobs Engineering Consultants (USA) and GKN plc (UK). He was also the founding Chairman of Reliance Power 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 is the Chairman of Audit Committee, Stakeholders Relationship Committee and Remuneration Committee of Honda Siel Power Products Limited. He is a member of Audit Committee of DLF Limited. He is also the Chairman of Corporate Governance Committee, Stakeholders Relationship Committee and Risk Management Committee of DLF Limited. He holds 13,544 shares of the Company in his name as on March 31, 2016. 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 ‘Strategies for Improving Directors’ Effectiveness Programme’ at the Kellogg School of Management, Northwestern University. He is the Chairman of the Standing Committee of the IIT Council, Chairman of the Board of Governors of IIT Roorkee, member of Board of Governors of IIT Delhi and a member of the Central Advisory Board of Education of MHRD. 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 and during his tenure it was transformed into a leading Research & Development Institute. In his currrent positions he continues to play an important role in the IIT system and Higher Education in India. Earlier he was at IIT Delhi from 1977-2000 and at Monsanto Chemical Co. from 1974-1977. He is currently the Chairman Emeritus-India, Intellectual Ventures. He is a Fellow of the National Academy of Sciences, India (President from 2006-08); 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 Founder President of IIT Alumni Centre, Bengaluru. He was former President of the Society of Polymer Science, India and the Federation of Asia Polymer Societies. He is an Independent Director on the Board of Jubilant Life Sciences Limited and Kirloskar Electric Company Limited. He is a 202 Annual Report 2015-16Corporate Governance Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.member of Audit Committee, Sustainability and CSR Committee and Stakeholders Relationship Committee of Jubilant Life Sciences Limited. 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, 2016. India and a Ph.D. Prof. Dipak C. Jain (DIN 00228513) has a M.S. in Mathematical in Statistics from Guwahati University, 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 is a Director of Sasin Graduate Institute of Business Administration of Chulalongkorn University, Bangkok (Thailand). He has more than 30 years of experience in management education. He has published several articles in international journals on marketing and allied subjects. His academic honor 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 John Deere & Company, United States of America, Global Logistic Properties, Singapore and Northern Trust Bank, United States of America. He is also a Director of Reliance Retail Ventures Limited, Reliance Jio Infocomm Limited and HT Global Education. He is a member of Audit Committee, Corporate Social Responsibility Committee and Nomination and Remuneration Committee of Reliance Retail Ventures Limited and also a member of Nomination and Remuneration Committee and Audit Committee of Reliance Jio Infocomm Limited. He does not hold any shares of the Company in his name as on March 31, 2016. 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 Industrial Research (CSIR), with thirty-eight Scientific and 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, Thermax Limited, Piramal Enterprises Limited, KPIT Technologies Limited, TAL Manufacturing Solutions Limited and several other private limited companies. He is Chairman of the Safety, Health and Environment Committee as well as Corporate Social Responsibility Committee of Tata Motors Limited. He is a member of the Audit Committee and Nomination & Remuneration Committee of Tata Motors Limited and member of Nomination & Remuneration Committee of TAL Manufacturing Solutions Limited. He is also member of Audit Committee of Piramal Enterprises Limited and Remuneration Committee of KPIT Technologies Limited. Dr. Mashelkar 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. 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. 203 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Deeply connected with the innovation movement in India, Dr. Mashelkar is currently the Chairman of India’s National Innovation Foundation, Reliance Innovation Council, Thermax Innovation Council, KPIT Technology Innovation Council and Marico Innovation Foundation. Thirty five universities have honored him with honorary include Universities of London, Salford, doctorates, which Swinburne, Pretoria, Wisconsin and Delhi. 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. 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. He does not hold any shares of the Company in his name as on March 31, 2016. Shri Adil Zainulbhai (DIN 06646490) is currently Chairman of Quality Council of India. He retired as Chairman of McKinsey, India after 34 years at McKinsey, the last 10 of which were in India. Shri Adil has co-edited the book, ‘Reimagining India’ which including prominent businessmen, featured 60 authors 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, social causes and education. He is a Board member of Saifee Hospital, Board of Trustees at Saifee Burhani Upliftment Trust (redeveloping Bhendi Bazaar in Mumbai), Wockhardt Foundation and Piramal Swasthya. He was President of Harvard Business School Alumni Association of India and is on the Global Advisory Board of the Booth School of Business at University of Chicago. Shri Adil is Chairman of Network18 Media and Investments Limited and TV18 Broadcast Limited. He is also a Director of Reliance Jio Infocomm Limited, Cipla Limited, Reliance Retail Ventures Limited, TV18 Home Shopping Network Limited and Larsen and Toubro Limited. Shri Adil is a Board Member of McKinsey Investment Office, Washington. Shri Adil is Chairman of the Human Resources, Nomination and Remuneration Committee and Risk Management Committee and member of the Audit Committee of the Company. He is Chairman of the Audit Committee, Stakeholders Relationship Committee and Corporate Social Responsibility Committee and member of Nomination and Remuneration Committee of Network18 Media and Investments Limited. He is also the Chairman of Audit Committee, Corporate Social Responsibility Committee and member of Nomination and Remuneration Committee of Reliance Jio Infocomm Limited. He is also the Chairman of Audit Committee, Corporate Social Responsibility Committee and member of Nomination and Remuneration Committee of Reliance Retail Ventures Limited. Shri Adil is Chairman of Nomination and Remuneration Committee and member of Corporate Social Responsibility Committee and Risk Management Committee of Cipla Limited. He is also a member of Audit Committee, Nomination and Remuneration Committee and Chairman of Corporate Social Responsibility Committee of TV18 Broadcast Limited. Shri Adil is member of Audit Committee and Nomination and Remuneration Committee of TV18 Home Shopping Network Limited. He is also a member of Nomination and Remuneration Committee of Larsen and Toubro Limited. He does not hold any shares of the Company in his name as on March 31, 2016. Smt. Nita M. Ambani (DIN 03115198) is a Commerce Graduate from Mumbai University and a Diploma holder in Early Childhood Education. Smt. Nita M. Ambani is the Founder and Chairperson of Reliance Foundation, which has impacted the lives of over 6 million people through initiatives in rural transformation, health, education, sports for development, disaster response, arts, culture and, heritage and urban renewal. Smt. Nita M. Ambani is committed to building India as a multi- sports nation and leads the Reliance Foundation Youth Sports (RFYS) programme, which will be launched by the Hon’ble Prime Minister Shri Narendra Modi. RFYS, a multi-city, multi-sports, school and college competition, seeks to reach out to 2 million children in 8 cities in its first year and 5 million children in 16 cities in its second year. The Reliance Foundation Young Champs programme has awarded 41 youngsters scholarships to receive world-class football coaching and school education. The grassroots programme to identify football talent has reached out to half a million children across India. The Reliance Foundation Jr. 204 Annual Report 2015-16Corporate Governance Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.NBA programme has reached out to 2.8 million children, 45% of whom are girls, covering 18 cities. These programmes have cumulatively reached out to over 3.3 million children. Under her leadership, the Reliance Foundation BIJ (Bharat- India Jodo) initiative aims to bridge the gap between rural and urban India by catalysing sustainable growth in the rural areas. She steered operation ‘Mission Rahat’ to provide relief and rehabilitation to the affected in the natural calamities in Uttarakhand in 2013, Jammu and Kashmir in 2014, and Chennai in 2015. She led the planting of 3.4 million trees over 2,500 acres at Reliance Jamnagar refinery site and developed a world-class township where over 5,500 families reside. The mango orchard with 138,000 trees is today Asia’s largest mango plantation at a single location. Smt. Nita M. Ambani provides leadership to 14 schools that educate over 15,000 students every year. She is the Founder & Chairperson of Dhirubhai Ambani International School, which in 2015 was ranked as India’s No. 1 International School for the 3rd consecutive year by Education World. The Dhirubhai Ambani Scholarship Programme has supported nearly 11,000 scholars, 20% of whom are specially-abled and almost 50% are girls. The ‘Education For All’ initiative has benefitted over 70,000 underprivileged children. Reliance Foundation plans to establish a world-class multi-disciplinary university. Smt. Nita M. Ambani is the President of Sir H. N. Reliance Foundation Hospital and Research Centre, which provides international quality, affordable healthcare and is one of India’s largest green hospitals. Reliance Foundation’s ‘Health for All’ initiative has provided primary medical care to about half a million underprivileged people. She is on the Board of Visitors of MD Anderson Cancer Centre and the Advisory Board of Massachusetts General Hospital. The Reliance Foundation Drishti has gifted vision to about 15,000 people through corneal transplants and its international Braille newspaper in Hindi is circulated in India and 14 other countries. She is the Brand Ambassador of the Swachh Bharat Abhiyaan and led the Foundation’s cleanliness drive across 12 states. Smt. Nita M. Ambani is the architect of Mumbai Indians, which won the IPL trophy in 2013 and 2015 and the Champions League T20 trophy in 2011 and 2013. She is the Founder & Chairperson of Football Sports Development Limited that launched the Indian Super League (ISL) in 2014, which has revolutionised football in India. Smt Nita M. Ambani is committed to preserving and promoting India’s art, culture and heritage. Reliance Foundation sponsored the ‘Gates of the Lord’ exhibition at the Art Institute of Chicago and partnered with The Metropolitan Museum of Art, New York, to showcase the works of Nasreen Mohamedi. Smt. Nita M. Ambani has received many awards and honours. In 2015, the All India Management Association (AIMA) presented her with the Entrepreneur of the Year award and Business Today conferred on her India’s Most Powerful Women Award. In 2016, Forbes Asia magazine ranked her amongst Asia’s 50 Most Powerful Business Women. Smt. Nita M. Ambani was recently nominated for election for Membership to the International Olympic Committee. Smt. Nita M. Ambani is a Director of EIH Limited. She is a promoter and holds 33,98,146 shares of the Company in her name as on March 31, 2016. Shri Raminder Singh Gujral is B.A. (Economic Honours), LLB, MBA (IIM Ahmedabad) and M.A. (International Finance/ Business – Fletcher School). He retired from the post of Finance Secretary (Government of India) in 2013. He has held various posts in the Central Government and has sufficient experience on functioning of CBEC and CBDT. He has held positions of Secretary (Revenue), Secretary (Expenditure) and Secretary (Ministry of Road, Transport and Highways). He also served as Chairman of National Highways Authority of India (NHAI). He was also the Director General of Foreign Trade and Chairman of Board of Governors of National Institute of Financial Management. He is also presently an Arbitrator in a couple of disputes of NHAI with Concessionaires of Road projects. In addition to Reliance Industries Limited, Shri Gujral is also a Director of Adani Power Limited. He is also a member of Audit Committee and Nomination and Remuneration Committee of Adani Power Limited. Shri Gujral is also a member of the Audit Committee of the Company. He does not hold any shares of the Company in his name as on March 31, 2016. 205 Corporate Governance ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Directors’ Report Dear Members, Your Directors are pleased to present the Forty-second Annual Report and the Company’s audited financial statement for the financial year ended March 31, 2016. FINANCIAL RESULTS The Company’s financial performance, for the year ended March 31, 2016 is summarised below: PROFIT BEFORE TAX Less: Current Tax Deferred Tax PROFIT FOR THE YEAR Add: Balance in Profit and Loss Account SUB-TOTAL LESS: APPROPRIATION Adjustment relating to Fixed Assets Transferred to General Reserve Dividend on Equity Shares Tax on dividend CLOSING BALANCE 2015-16 2014-15 ` crore US$ million* ` crore US$ million* 35,701 7,802 482 27,417 10,168 37,585 - 22,000 **3,095 ***605 11,885 5,389 1,178 73 4,138 2,108 6,246 - 3,321 467 91 2,367 29,468 6,124 625 22,719 9,326 32,045 318 18,000 2,944 615 10,168 4,715 980 100 3,635 1,973 5,608 51 2,880 471 98 2,108 * 1 US$ = ₹ 66.25 Exchange Rate as on March 31, 2016 (1 US$ = ₹ 62.50 as on March 31, 2015) ** Interim dividend *** Net of reversal of excess provision of dividend distribution tax of previous year of ₹ 17 crore RESULTS OF OPERATIONS AND THE STATE OF COMPANY’S AFFAIRS The highlights of the Company’s performance for the year ended March 31, 2016 are as under: Revenue from operations decreased by 26.3% to ₹ 2,51,241 crore (US$37.9 billion). Exports decreased by 35.8% (US$22.2 billion). to ₹ 1,46,855 crore PBDIT increased by 18.3% to ₹ 47, 721 crore (US$7.2 billion). Profit before Tax increased by 21.2% to ₹ 35,701 crore (US$5.4 billion). Cash Profit increased by 17.7% to ₹ 37,465 crore (US$5.7 billion). Net Profit (US$4.1 billion). increased by 20.7% to ₹ 27,417 crore Gross Refining Margin stood at US$10.8 / bbl for the year ended March 31, 2016. The consolidated revenue from operations of the Company for year ended March 31, 2016 was down by 23.8% to ₹ 2,96,091 crore (US$44.7 billion). The decline in turnover reflects sharp fall in feedstock and product prices during the year. Strong operating performance from the refining and petrochemicals business led to higher operating profit. Consolidated operating profit before other income and depreciation increased by 18.4% on a year-on-year basis to ₹ 44,257 crore from ₹ 37,364 crore in the previous year. Profit after Tax was higher by 17.2% at ₹ 27,630 crore as against ₹ 23,566 crore in the previous year. The FY 2015-16 has been a year of outstanding achievement for downstream hydrocarbon businesses, notwithstanding persisting global economic uncertainty. Refining and petrochemicals business delivered record operating and financial performance. Refining earnings before interest and tax increased by 49.1% year-on-year basis to record level of ₹ 23,598 crore, supported by seven year high Gross Refining Margin and record crude throughput. During the year, Jamnagar refineries processed 69.6 MMT of crude. The Company was able to capitalise on the market conditions through its operational excellence, higher efficiency and well executed strategies around crude sourcing and product placement. The Petrochemicals business delivered strong earnings on the back of strong polymer market and higher volumes. The Company is nearing the end of the biggest capex cycle in its history and in the history of the Indian corporate sector. The capital expenditure on a consolidated basis for the year ended March 31, 2016 aggregated ₹ 1,12,995 crore (US$17.1 billion) 206 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. including exchange rate difference capitalisation. The capital expenditure was principally on account of ongoing expansion projects in petrochemicals and refining business at Jamnagar, Dahej and Hazira, Infocom and US Shale gas projects. During the year, the Company added significant volumes in the polyester chain with the start-up of the 2.3 MMTPA Purified Terephthalic Acid plants (PTA) and the 650 KTA Polyethylene Terephthalate plant (PET). The PET resin plant is one of the largest bottle-grade PET resin capacity at a single location globally, making the Company a leading PET resin producer globally. The Company’s total PTA capacity has increased to 4.65 Million Metric Tonnes per Annum (MMTPA), with a global capacity share to 4%. The integration of the new PTA plant and PET plant will provide significant logistical advantage to the Company. PERFORMANCE DURING THE FIRST QUARTER ENDED JUNE 30, 2016 The Board of Directors approved the Company’s Unaudited Financial Results (Standalone and Consolidated), based on the Indian Accounting Standards (Ind-AS), for the quarter ended June 30, 2016 which are as under: STANDALONE Revenue from operations stood at ₹59,493 crore (US$8.8 billion). PBDIT stood at ₹ 12,850 crore (US$1.9 billion). Profit before Tax stood at ₹ 9,976 crore (US$1.5 billion). Cash Profit stood at ₹ 9,734 crore (US$1.4 billion). Net Profit stood at ₹ 7,548 crore (US$1.1 billion). Gross Refining Margin stood at US$11.5 / bbl. CONSOLIDATED Revenue from operations stood at ₹ 71,451 crore (US$10.6 billion). PBDIT stood at ₹ 13,589 crore (US$2.0 billion). Profit before Tax stood at ₹ 9,658 crore (US$1.4 billion). Cash Profit stood at ₹ 10,113 crore (US$1.5 billion). Net Profit stood at ₹ 7,113 crore (US$1.1 billion). The Unaudited Financial Results for the first quarter are available link: http://www.ril.com/ on the Company’s website at the InvestorRelations/FinancialReporting.aspx No material changes and commitments have occurred after the close of the year till the date of this Report, which affect the financial position of the Company. DIVIDEND The Board of Directors on March 10, 2016, declared an interim dividend of ₹10.50 (i.e. @105%) on each fully paid equity share of ₹ 10/-, which was paid to the members, whose names appeared on the Register of Members of the Company on March 18, 2016. Considering the capital requirement for ongoing business expansion, the Board of Directors do not recommend any final dividend on the equity shares and the interim dividend declared is the dividend on equity shares of the Company for the financial year ended March 31, 2016. The interim dividend declared and paid on equity shares including dividend tax thereon aggregated ₹ 3,717 crore. The dividend payout for the year under review is in accordance with the Company’s policy to pay sustainable dividend linked to long-term growth objectives of the Company to be met by internal cash accruals. MANAGEMENT’S DISCUSSION AND ANALYSIS REPORT Management’s Discussion and Analysis Report for the year under review, as stipulated under Regulation 34 read with Schedule V to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), is presented in a separate section forming part of the Annual Report. The developments in business operations/performance of major subsidiaries consolidated with the Company are as below: NORTH AMERICAN SHALE GAS The year under review was one of the most challenging years in recent history for the Global Oil and Gas industry and for the North American Shale players, as sustained fall in benchmark prices and continued high benchmark drove weak realisation and proved to be strong headwind for the industry. Financial performance of the Shale Gas business was impacted by strong macro headwinds with sharply lower price realisation driven by weak benchmark prices for Natural Gas (Henry Hub (HH)) and Condensate (WTI) that tested multi-year lows during the year. The Company focused on proactive hedging to mitigate pressures while focusing simultaneously on export of Condensates that offer superior netbacks. Opex trends remained encouraging across JVs. Tight control over costs and improvement efficiencies helped achieve sequential improvement in lease operating costs and overheads. Absolute opex were lower by over 4% across JVs, but could offset the impact of lower prices only to some extent. 207 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 Consequently, reflecting lower realisation, business Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) dropped by over 60% y-o-y to US$299 million (excluding exceptional items) in CY 2015. Shale Gas business continues to effectively manage current adverse macro environment through disciplined investment and by realising efficiency gains Operationally, the business continued its strong performance during CY 2015. The Shale Gas business effectively managed the sharp downturn in prices through reduction in activity levels and lowering costs. Focus was on liquidating existing well inventory to bring more wells online than drilled and delivering wells at much lower well costs. The Company is committed to ensuring preparedness for ramp-up across JVs, when market conditions improve. Gross JV production aggregated at ~1.26 BCFe/d for all 3 JVs and reflected a growth of 7% over the levels achieved in CY 2014. RETAIL BUSINESS Reliance Retail Limited has further consolidated its leadership position in the retail segment. Retail business continued its growth momentum and achieved significant milestones in the year. Retail business posted a turnover of ` 21,612 crore during the year ended March 31, 2016 as against ` 17,640 crore during the previous year registering a strong growth of 22.5%. The business delivered record profits during the year with an EBIT of ` 506 crore as against ` 417 crore in the previous year. The superlative growth has been attained due to strong operating discipline, focus on delivering differentiated product offering and accelerated expansion into newer geographies. Store opening continued during the year and Reliance Retail attained the distinction of currently operating 3,383 stores. DIGITAL SERVICES Reliance Jio Infocomm Limited (Jio) is rolling out a state-of- the-art pan India digital services business. Apart from fixed and wireless broadband connectivity offering superior voice and data services on an all-Internet Protocol (IP) network, Jio will also offer end-to-end solutions encompassing the entire value chain across various digital services in key domains such as education, healthcare, security, communication, financial services, government-citizen interfaces and entertainment. Jio took significant strides this year in optimising by real-time testing its service propositions across the country. RIL group employees, channel partners and vendors were amongst the first to test the true LTE experience as part of the employee launch. Results have been positive with high consumption trends across data and voice. 208 Jio is present in all of the 29 states of India with a direct physical presence in more than 18,000 urban and rural towns and over 1,50,000 villages. Jio has built the most sophisticated and one of the largest telecom networks in the country. Jio already has the largest fiber network and highest amount of LTE-ready spectrum as compared with the current industry players. Jio is the first telecom operator to hold pan India Unified License. It holds 846.1 megahertz (MHz) of liberalised spectrum across the 800MHz, 1800MHz and 2300MHz bands. Jio has entered into agreements with Reliance Communications Limited (RCOM) for change in spectrum allotment in the 800MHz band from RCOM to Jio across 13 circles and sharing of spectrum in the 800MHz band across 21 circles (4 circles are still awaiting regulatory approval). Jio plans to provide seamless 4G services using LTE technology in 800 MHz, 1800 MHz and 2300 MHz bands through an integrated ecosystem. This combined spectrum footprint across frequency bands provides significant network capacity and deep in- building coverage. Currently the services are being used extensively by employees, vendors, partners and associates as part of the successful employee launch, which has till date resulted in over 15 lakh users on-boarded on the network. These test services were made available to all such users on trial basis with a view to obtain the feedback and progress towards a smooth and seamless commercial launch. Investments Limited MEDIA AND ENTERTAINMENT Network18 Media & (Network18) delivered a strong operating performance during FY 2015- 16. The operating revenues on a consolidated basis stood at ₹ 3,403 crore, up by 8.8% from ₹ 3,127 crore in FY 2014-15. It continued to grow profitably, achieving an EBIT of ₹182 crore for FY 2015-16 consolidated, up by 27.3% from ₹ 143 crore in FY 2014-15. Network18 continued to witness strong growth in its digital media content. It attracted over 20 million unique visitors per month through the year. Greater internet and mobile penetration has helped in achieving rapid growth of online media channels like Firstpost, Moneycontrol, BookMyShow, IBNLive and News18 websites in the broadcast business. Financial news channels retained their dominant leadership position in India, continuing to be the No.1 financial news channels in their genres. One new channel in English general entertainment was launched during the year while regional channels were rebranded. Network18 rebranding exercise has started bearing results with Colors emerging as India’s No.1 pay channel with a viewership share of 13% in December 2015. Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.CREDIT RATING The Company’s financial discipline and prudence is reflected in the strong credit ratings ascribed by rating agencies as given below: Instrument International Debt International Debt Long Term Debt Long Term Debt Rating Agency S&P Moody's CRISIL India rating Rating BBB+ Baa2 CRISIL AAA Ind AAA Outlook Stable Stable Stable Stable Remarks Two notches above India’s sovereign rating One notch above India’s sovereign rating Highest rating awarded by CRISIL Highest rating awarded by India Rating CONSOLIDATED FINANCIAL STATEMENT In accordance with the Companies Act, 2013 (“the Act”) and Accounting Standard (AS) - 21 on Consolidated Financial Statement 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, JOINT VENTURES AND ASSOCIATE COMPANIES During the year under review, companies listed in Annexure I to this Report have become or ceased to be Company’s subsidiaries, joint ventures or associate companies. A statement containing the salient features of the financial statement of subsidiary/ associate/ joint venture companies is provided as Annexure A to the consolidated financial statement and therefore not repeated to avoid duplication. the The audited financial statement including the consolidated financial statement of the Company and all other documents required to be attached thereto may be accessed on the Company’s website at link: http://www.ril.com/InvestorRelations/ FinancialReporting.aspx The financial statements of each of the subsidiary may also be accessed on the Company’s website at the link: http://www.ril.com/InvestorRelations/Downloads.aspx These documents will also be available for inspection on all working days i.e. except Saturdays, Sundays and Public Holidays at the Registered Office of the Company. for determining The Company has material subsidiaries. The policy may be accessed at the link: http://www.ril.com/InvestorRelations/Downloads.aspx formulated a policy DIRECTORS’ RESPONSIBILITY STATEMENT Your Directors state that: a) b) c) in the preparation of the annual accounts for the year ended March 31, 2016, the applicable accounting standards read with requirements set out under Schedule III to the Act, 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, 2016 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 Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; d) the Directors have prepared the annual accounts on a going concern basis; e) the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and f ) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively. CORPORATE GOVERNANCE The Company is committed to maintain the highest standards of Corporate Governance and adhere to the Corporate Governance requirements set out by the Securities and Exchange Board of India (SEBI). The Company has also implemented several best Corporate Governance practices as prevalent globally. The report on Corporate Governance as stipulated under the Listing Regulations forms an integral part of this Report. The requisite 209 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254certificate from the Auditors of the Company confirming compliance with the conditions of Corporate Governance is attached to the report on Corporate Governance. BUSINESS RESPONSIBILITY REPORT As stipulated under the Listing Regulations, the Business Responsibility Report describing the initiatives taken by the Company from an environmental, social and governance perspective is attached as part of Annual Report. CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES During the year, the Company acquired 18,00,000 Ordinary Shares of Reliance Global Business B.V., Netherlands (wholly- owned indirect subsidiary) from Reliance Industrial Investments and Holdings Limited (wholly-owned direct subsidiary) at par value for a total consideration of Euro 18,000 equivalent to ₹ 13.50 lakh with the approval granted by the Audit Committee and Board of Directors on March 10, 2016 and March 25, 2016, respectively. All other contracts / arrangements / transactions entered by the Company during the financial year with related parties were in the ordinary course of business and at an arm’s length basis. During the year, the Company had not entered into any contract/ arrangement / transaction with related parties which could be considered material in accordance with the policy of the Company on materiality of related party transactions. The Policy on materiality of related party transactions and on dealing with related party transactions as approved by the Board may be accessed on the Company’s website at the link: http:// www.ril.com/InvestorRelations/Downloads.aspx There are no materially significant related party transactions that may have potential conflict with interest of the Company at large. Members may refer to Note 31 to the financial statement which sets out related party disclosures pursuant to AS - 18. CORPORATE SOCIAL RESPONSIBILITY (CSR) The Corporate Social Responsibility and Governance Committee (CSR&G Committee) has formulated and recommended to the Board, a Corporate Social Responsibility Policy (CSR Policy) indicating the activities to be undertaken by the Company, which has been approved by the Board. 210 The CSR Policy may be accessed on the Company’s website at the link: http://www.ril.com/InvestorRelations/Downloads.aspx The key philosophy of all CSR initiatives of the Company is guided by three core commitments of Scale, Impact and Sustainability. The Company has identified following focus areas for CSR engagement: Rural Transformation: Creating sustainable solutions, addressing poverty, hunger and malnutrition. livelihood Environment: Environmental sustainability, ecological balance, conservation of natural resources and promoting bio-diversity. Health: Affordable solutions improved access, awareness and health seeking behavior. for healthcare through Education and Sports: Access to quality education, training and skill enhancement, building sports & skills in young students. Disaster Response: Managing and responding to disaster. Art, Heritage and Culture: Protection and promotion of India’s art, culture and heritage. The Company would also undertake other need based initiatives in compliance with Schedule VII to the Act. During the year, the Company has spent ₹ 652 crore (around 2.34% of the average net profits of last three financial years) on CSR activities as against the statutory requirement of ₹ 558 crore i.e. 2% of the average net profits of last three financial years. The annual report on CSR activities is annexed herewith marked as Annexure II. RISK MANAGEMENT Your Company has an elaborate Group Risk Management Framework, which is designed to enable risks to be identified, assessed and mitigated appropriately. The Risk Management Committee of the Company has been entrusted with the responsibility to assist the Board in (a) Overseeing and approving the Company’s enterprise wide risk management framework; and (b) Overseeing that all the risks that the organisation faces such as financial, credit, market, liquidity, security, property, IT, legal, regulatory, reputational and other risks have been identified and assessed and there is an adequate risk management infrastructure in place, capable of addressing those risks. The Company manages, monitors and reports on the principal risks and uncertainties that can impact its ability to achieve its strategic objectives. The Company’s management systems, organisational structure, processes, standards, code of conduct and behaviors together form the Reliance Management System (RMS) that governs how the Group conducts the business of the Company and manages associated risks. Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. During the year, the Risk Management Committee reviewed the most significant risks for the Group with the respective risk owners. The Company continues to integrate 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 assurance activities. This integration is enabled by all three being fully aligned across Group wide methodologies, processes and systems. implementation of Risk Management policy More details on Risk Management indicating development including and identification of elements of risk and their mitigation are covered in Management’s Discussion and Analysis, which forms part of this Report. INTERNAL FINANCIAL CONTROLS The Company has in place adequate internal financial controls, with reference to financial statement. It has established the Reliance Management System (RMS), an integrated framework for managing risks and internal controls. The internal financial controls have been documented, digitised and embedded in the business processes. Such controls have been assessed during the year under review and were operating effectively. DIRECTORS AND KEY MANAGERIAL PERSONNEL In accordance with the provisions of the Act and the Articles of Association of the Company, Shri Nikhil R. Meswani and Shri Pawan Kumar Kapil, Directors of the Company, retire by rotation at the ensuing Annual General Meeting and being eligible have offered themselves for re-appointment. The members approved the appointment of Shri Raminder Singh Gujral as an Independent Director with effect from June 12, 2015. The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence prescribed under the Act and the Listing Regulations. The Company has devised a Policy for performance evaluation of the Board, Committees and other individual Directors (including Independent Directors) which includes criteria for performance evaluation of the Non-executive Directors and Executive Directors. The evaluation process inter-alia considers attendance of Directors at Board and Committee meetings, effective participation, domain knowledge, compliance with code of conduct, vision and strategy, benchmarks established by global peers, etc. The Company had engaged an external agency to carry out the Board Effectiveness Survey for the Financial Year 2015-16. The responses on Board Effectiveness Survey received from each Board member were compiled and a report thereon was submitted by the agency. The results were arrived at by the agency after analysing the responses with their database encompassing 1000 Board surveys. The Company’s Board was evaluated as ‘Striving Board’, which is the highest rating for the performance of the Board considering the time commitment of the Board and the value addition done by it. The Board carried out annual performance evaluation of the Board Committees and Individual Directors, internally. The Chairman of the respective Board Committees shared the report on evaluation with the respective Committee members. The performance of each Committee was evaluated by the Board, based on report on evaluation received from respective Board Committees. The performance evaluation of the Chairman and Non- Independent Directors was carried out by Independent Directors. The reports on performance evaluation of the Individual Directors were reviewed by the Human Resources, Nomination and Remuneration Committee and the Chairman of the Board held discussions with each Board member and provided feedback to them on the evaluation outcome. The following policies of the Company are attached herewith marked as Annexure IIIA and Annexure IIIB: a) Policy for selection of Directors and determining Directors independence; and b) Remuneration Policy for Directors, Key Managerial Personnel and other employees. 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 which is in accordance with the applicable SEBI Regulations. The issue of equity shares pursuant to exercise of options does not affect the Statement of Profit and Loss of the Company, as the exercise of options is made at the market price prevailing as on the date of the grant plus taxes as applicable. There is no material change in Employees’ Stock Option Scheme during the year under review and the Scheme is in line with the SEBI (Share Based Employee Benefits) Regulations, 2014 (“SBEB Regulations”). The Company has received a certificate from the 211 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Auditors of the Company that the Scheme has been implemented in accordance with the SBEB Regulations and the resolution passed by the members. The certificate would be placed at the Annual General Meeting for inspection by members. Voting rights on the shares issued to employees under the Employees’ Stock Option Scheme are either exercised by them directly or through their appointed proxy. The details as required to be disclosed under the SBEB Regulations are available on the Company’s website at the link: http://www.ril.com/InvestorRelations/Downloads.aspx AUDITORS AND AUDITORS’ REPORT STATUTORY AUDITORS As per the provisions of the Act, M/s. Chaturvedi & Shah, Chartered Accountants, M/s. Deloitte Haskins & Sells LLP, Chartered Accountants and M/s. Rajendra & Co., Chartered Accountants, Statutory Auditors of the Company upon their re-appointment at the ensuing Annual General Meeting will hold office till the conclusion of the Forty-third Annual General Meeting to be held in the year 2017. They have confirmed their eligibility to the effect that their re-appointment, if made, would be within the prescribed limits under the Act and that they are not disqualified for re-appointment. The Notes on financial statement referred to in the Auditors’ Report are self-explanatory and do not call for any further comments. The Auditors’ Report does not contain any qualification, reservation, adverse remark or disclaimer. Keeping in view the requirements set out in the Act, the Board of Directors has identified M/s S R B C & CO LLP, Chartered Accountants, who have confirmed their willingness, as one of the prospective auditors to conduct audit of the Company’s financial statement from the financial year 2017-18, subject to meeting the eligibility conditions stipulated under the Act. Their appointment will be proposed and considered in the Annual General Meeting of the Company to be held in the year 2017. COST AUDITORS The Board has appointed the following cost auditors for conducting the audit of cost records of the Company for various segments for the FY 2015-16: (i) (ii) For Textiles Business - M/s. Kiran J. Mehta & Co., Cost Accountants; For 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, M/s. Dilip M. 212 Malkar & Co., Cost Accountants and Shri Suresh D. Shenoy, Cost Accountant; (iii) For Polyester Business - Shri Suresh D. Shenoy, Cost Accountant, M/s. V. Kumar & Associates, Cost Accountants and M/s V.J. Talati & Co., Cost Accountants; (iv) For Electricity Generation - M/s. Dilip M. Malkar & Co., Cost Accountants; (v) For Petroleum Business – Shri Suresh D. Shenoy, Cost Accountant; (vi) For Oil & Gas Business – M/s V.J. Talati & Co., Cost Accountants and M/s. Shome & Banerjee, Cost Accountants. M/s. Shome & Banerjee, Cost Accountants, were nominated as the Company’s Lead Cost Auditors. SECRETARIAL AUDITOR The Board has appointed Dr. K.R. Chandratre, Practising Company Secretary, to conduct Secretarial Audit for the FY 2015-16. The Secretarial Audit Report for the financial year ended March 31, 2016 is annexed herewith marked as Annexure IV to this Report. The Secretarial Audit Report does not contain any qualification, reservation, adverse remark or disclaimer. DISCLOSURES MEETINGS OF THE BOARD Six meetings of the Board of Directors were held during the year. The particulars of number of meetings held and attended by each Director are detailed in the Corporate Governance Report, which forms part of this Report. AUDIT COMMITTEE The Audit Committee comprises Independent Directors namely Shri Yogendra P. Trivedi (Chairman), Dr. Raghunath A. Mashelkar, Shri Adil Zainulbhai and Shri Raminder Singh Gujral. During the year, all the recommendations made by the Audit Committee were accepted by the Board. CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE COMMITTEE (CSR&G) The Corporate Social Responsibility and Governance Committee comprises Shri Yogendra P. Trivedi (Chairman), Shri Nikhil R. Meswani, Dr. Dharam Vir Kapur and Dr. Raghunath A. Mashelkar. VIGIL MECHANISM The Vigil Mechanism of the Company, which also incorporates a whistle blower policy in terms of the Listing Regulations, includes an Ethics & Compliance Task Force comprising senior executives of the Company. Protected disclosures can be made by a whistle blower through an e-mail, or dedicated telephone line or a letter to the Task Force or to the Chairman of the Audit Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. GENERAL Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review: Details relating to deposits covered under Chapter V of the Act. Issue of equity shares with differential rights as to dividend, voting or otherwise. Issue of shares (including sweat equity shares) to employees of the Company under any scheme save and except Employees’ Stock Option Scheme referred to in this Report. The Company does not have any scheme of provision of money for the purchase of its own shares by employees or by trustees for the benefit of employees. Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from any of its subsidiaries. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company’s operations in future. No fraud has been reported by the Auditors to the Audit Committee or the Board. ACKNOWLEDGEMENT Your Directors would like to express their sincere 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 Mumbai, July 15, 2016 Committee. The vigil mechanism and whistle blower policy may be accessed on the Company’s website at the link: http://www. ril.com/InvestorRelations/Downloads.aspx PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE, GUARANTEES GIVEN AND SECURITIES PROVIDED Particulars of loans given, investments made, guarantees given and securities provided along with the purpose for which the loan or guarantee or security is proposed to be utilised by the recipients are provided in the standalone financial statement (Please refer to Notes 11, 12, 13, 17, 31 and 36 to the standalone financial statement). CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO The particulars relating to conservation of energy, technology absorption, foreign exchange earnings and outgo, as required to be disclosed under the Act, are provided in Annexure V to this Report. EXTRACT OF ANNUAL RETURN Extract of Annual Return of the Company is annexed herewith as Annexure VI to this Report. PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES In terms of the provisions of Section 197(12) of the Act read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules are provided in the Annual Report, which forms part of this Report. Disclosures relating to remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in the Annual Report, which forms part of this Report. Having regard to the provisions of the first proviso to Section 136(1) of the Act and as advised, the Annual Report excluding the aforesaid information is being sent to the members of the Company. The said information is available for inspection at the Registered Office of the Company during working hours and any member interested in obtaining such information may write to the Company Secretary and the same will be furnished on request. 213 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 ANNEXURE I TO DIRECTORS’ REPORT COMPANIES WHICH BECAME / CEASED TO BE COMPANY’S SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIES: 1. COMPANIES/BODIES CORPORATE WHICH HAVE BECOME SUBSIDIARIES DURING THE FINANCIAL YEAR 2015-16: Sr. No. Name of Company 1. 2. 3. 4. 5. 6. 7. 8. 2. Aurora Algae Inc Aurora Algae Pty Ltd Aurora Algae RGV LLC Reliance Jio Asiainfo Innovation Centre Limited Reliance Jio Infratel Private Limited Reliance Holding Acquisition Corp RIL Exploration and Production (Myanmar) Company Limited RP Chemicals (Malaysia) Sdn Bhd COMPANIES/BODIES CORPORATE WHICH CEASED TO BE SUBSIDIARIES DURING THE FINANCIAL YEAR 2015-16: Sr. No. Name of Company 1. 2. 3. 4. 5. 6. 7. 8. 9. 3. Bhagyashri Mercantile Private Limited Chitrani Mercantile Private Limited Gopesh Commercials Private Limited Nemita Commercials Private Limited Nisarga Commercials Private Limited Prakruti Commercials Private Limited Resolute Land Consortium Projects Limited Transenergy (Kenya) Ltd Vijayant Commercials Private Limited NO COMPANY HAS BECOME/CEASED TO BE A JOINT VENTURE OR ASSOCIATE DURING THE FINANCIAL YEAR 2015-16. For and on behalf of the Board of Directors Mukesh D. Ambani Chairman and Managing Director Mumbai, July 15, 2016 ANNEXURE II TO DIRECTORS’ REPORT ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES FOR THE FINANCIAL YEAR 2015-16 1. 2. 3. 4. 5. A brief outline of the Company’s CSR Policy including overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR Policy and projects or programs. The Composition of the CSR Committee Average net profit of the Company for last three financial years Prescribed CSR expenditure (two percent of the amount mentioned in item 3 above) Details of CSR spent during the financial year: Total amount to be spent for the financial year Total Amount spent during the year Amount unspent, if any Manner in which the amount spent during the financial year 214 Refer Section: Corporate Social Responsibility (CSR) in the Directors’ Report Refer Section: Disclosures: Corporate Social Responsibility and Governance Committee in the Directors’ Report ₹27,889 crore ₹557.78 crore ₹557.78 crore ₹651.57 crore Not applicable Details given below Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.DETAILS OF AMOUNT SPENT ON CSR ACTIVITIES DURING THE FINANCIAL YEAR 2015-16 Sr. No CSR project or activity identified Projects or programs 1) Local area or other 2) Specify the State and district where projects or programs was undertaken Sector in which the project is covered (clause no. of schedule VII to the Companies Act, 2013, as amended) Amount outlay (budget) project or program wise (₹ in crore) 84.35 Amount spent on the projects or programs: Sub Heads (1) Direct expenditure on projects or programs (2) Overheads (` in crore) 69.69 Amount spent direct or through implementing agency Cumulative expenditure upto the reporting period, i.e., March 31, 2016 (₹ in crore) 171.38 Implementing Agency - Reliance Foundation* 1 2 Rural Transformation – Reliance Foundation Bharat India Jodo – “Enhancing Rural Livelihoods” Cl (i) eradicating hunger, poverty and malnutrition; Cl (iv) ensuring environmental sustainability; Cl. (x) rural development projects Cl. (i) eradicating hunger, poverty and malnutrition Cl. (iv) ensuring environmental sustainability; CI. (x) rural development projects Rural Transformation - Information Services - “Enable access to need based locale- specific content in agriculture, marine fisheries, public health, disaster response and other areas by leveraging technology” Andhra Pradesh- Kurnool, Vizianagram, Srikakulam Telangana - Nizamabad Chhatisgarh- Rajnandgaon Gujarat-Amreli, Rajkot, Aravali, Bharuch, Surat, Patan Jharkhand-Deogarh Karnataka-Gadag, Bidar Madhya Pradesh-Agar, Chhindwara, Seoni, Mandla, Panna, Barwani Hoshangabad Maharashtra-Parbhani, Yavatmal, Nagpur Orissa-Balangir Rajasthan-Jaipur, Sawai Madhopur, Banswara Tamilnadu- Sivaganga, Ramanathapuram Andhra Pradesh-Vishakapatanam, East Godavari, West Godavari, Nellore, Krishna, Srikakulam, Vizianagram, Kurnool, Prakasam, Guntur Gujarat-Bharuch, Junagadh, Surendranagar, Surat, Bhavnagar, Kutch, Patan, Ahmedabad Maharashtra- Parbhani, Yavatmal, Amravati, Washim, Akola, Wardha, Buldhana, Hingoli, Nanded, Ratnagiri, Sindhudurg, Aurangabad, Jalna Orissa-Bargarh, Jagatsinghpur, Ganjam, Bhadrak, Balangir, Kandhamal, Puri, Baleswar Tamilnadu-Ramanathapuram, Sivaganga, Thanjavur, Ariyalur, Pudukkottai, Nagapattinam, Cuddalore, Villupuram, Dindigul, Theni, Tuticorin, Kanyakumari, Thrivarur, Tirunelveli, Salem, Trichy, Chennai. Kerala-Kozhikode, Malapuram, Ernakulam, Alapuzha, Kasargod, Kallam, Kochi. Chattisgarh-Raipur, Rajnandgaon Karnataka-Udipi, Uttar Kanada, Dakshan Kannada Madhya Pradesh-Ujjain, Chhindwara, Seoni, Mandla, Jabalpur, Khandwa, Bhopal 20.12 14.00 23.65 Implementing Agency - Reliance Foundation* 215 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Sr. No CSR project or activity identified Projects or programs 1) Local area or other 2) Specify the State and district where projects or programs was undertaken Sector in which the project is covered (clause no. of schedule VII to the Companies Act, 2013, as amended) Amount outlay (budget) project or program wise (₹ in crore) Amount spent on the projects or programs: Sub Heads (1) Direct expenditure on projects or programs (2) Overheads (` in crore) Amount spent direct or through implementing agency Cumulative expenditure upto the reporting period, i.e., March 31, 2016 (₹ in crore) 8.56 4.60 7.74 2.06 1.26 2.54 Implementing Agency - Reliance Foundation* Implementing Agency - Reliance Foundation* Rajasthan-Jodhpur, Sawai Madhopur Uttarakhand-Uttarkashi, Rudra Prayag West Bengal-East Midnapur, Nadia, South 24 Parganas Puduchery- Yanam Maharashtra-Mumbai Uttarakhand-Rudraprayag Madhya Pradesh-Shahdol Assam-Tinsukia Andhra Pradesh-Anantapur, Chittoor, East Godavari, Guntur, Kadapa, Krishna, Kurnool, Nellore, Prakasam, Srikakulam, Visakhapatnam, Vizianagaram, West Godavari, Machilipatnam Bihar- Araria, Bhagalpur, Buxar, Chhapra, Gaya, Nawada, Saharsa, Patna, Aurangabad, Begusarai, Madhubani, Sitamarhi, Gopalganj, Kishanganj, Saran Chhattisgarh-Raipur, Durg, Bematra, Balod, Bilaspur, Koriya, Rajnandgaon Delhi Gujarat- Bharuch, Narmada, Surat, Tapi, Valsad Haryana- Rohtak, Gurgaon, Jind, Karnal, Palwali,Yamunanagar, Sonepat, Hisar, Kurukshetra, Bhiwani, Faridabad, Panipat Himachal Pradesh- Mandi, Kangra, Bilaspur Jammu & Kashmir-Jammu, Ramban, Srinagar, Bandipore Jharkhand- East Singhbhum, Deogarh, Giridih, Simdega Karnataka- Bangalore, Bidar, Bijapur, Chikmagalur, Davangere, Gulbarga, Mysore, Kolar, Belgaum, Bellary, Raichur, Yadgir, Haveri, Dharwad Chhatisgarh - Balod, Durg 3 4 Health Outreach Program II - "Static, Mobile Medical Units and camps for primary and preventive healthcare including diagnostics" Health - Drishti “Corneal transplants and other activities for visually impaired” Cl. (i) promoting healthcare including preventive healthcare Cl. (i) promoting health care including preventive health care 216 Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Sr. No CSR project or activity identified Projects or programs 1) Local area or other 2) Specify the State and district where projects or programs was undertaken Sector in which the project is covered (clause no. of schedule VII to the Companies Act, 2013, as amended) Amount outlay (budget) project or program wise (₹ in crore) Amount spent on the projects or programs: Sub Heads (1) Direct expenditure on projects or programs (2) Overheads (` in crore) Amount spent direct or through implementing agency Cumulative expenditure upto the reporting period, i.e., March 31, 2016 (₹ in crore) Madhya Pradesh-Sehore, Gwalior, Balaghat, Bhopal, Dewas, Harda, Hoshangabad, lndore, Raisen, Rajgarh, Sagar, Shajapur, Sidhi, Ujjain, Vidisha, Guna, Katni, Chhindwara Maharashtra- Buldhana, Parbhani, Ahmednagar, Hingoli, Kolhapur, Nanded, Nandurbar, Nashik, Osmanabad, Pune, Satara, Solapur, Thane, Amravati, Nagpur, Navi Mumbai, Akola, Bhandara, Jalgaon, Mumbai, Yavatmal, Latur Odisha- Bargarh, Ganjam Punjab-Amritsar, Firozpur, Gurdaspur, Hoshiarpur, Jalandhar, Ludhiana, Muktsar, Patiala, Sangrur, Tarn-Taran, Fatehgarh Sahib, Mega, Ropar, Bathinda, Kapurthala Rajasthan- Alwar, Bharatpur, Chhitorgarh, Jaipur, Jhunjhunu Tamilnadu-Chennai, Dindigul, Kancheepuram, Krishnagiri, Nagapattinam, Perambalur, Ramanathapuram, Thanjavur, Thiruvallur, Vellore, Pudukkottai, Madurai, Trichy, Ariyalur, Sivagangai, Tiruchirapalli, Namakkal, Theni, Tirunelveli, Virudhunagar, Cuddalore, Dharmapuri, Pattukkottai, Salem. Telangana - Hyderabad, Adilabad, Karimnagar, Khammam, Mahbubnagar, Medak, Nalgonda, Nizamabad, Rangareddy, Warangal, Secunderabad, Karimnagar Uttar Pradesh-Aligarh, Baghpat, Bareilly, Bulandshahar, Ghaziabad, Gonda, Meerut, Muzaffarnagar, Saharanpur, Amroha, Bijnor, Budaun, Kasganj, Noida, Rampur, Shamli, Agra, Hathras, Pratapgarh, Azamgarh, Etah, Mainpuri, Mathura, Muradabad, Sonbhadra, Bagpat, Jaunpur, Shahjanpur, Deoria, Hapur. Uttarakhand -Nainital, Dehradun 217 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Sr. No CSR project or activity identified Projects or programs 1) Local area or other 2) Specify the State and district where projects or programs was undertaken Sector in which the project is covered (clause no. of schedule VII to the Companies Act, 2013, as amended) Amount outlay (budget) project or program wise (₹ in crore) Amount spent on the projects or programs: Sub Heads (1) Direct expenditure on projects or programs (2) Overheads (` in crore) Amount spent direct or through implementing agency Cumulative expenditure upto the reporting period, i.e., March 31, 2016 (₹ in crore) 5 6 7 8 Health - Autism Project Health - To develop innovative technology that will help train medical students and clinicians for better diagnosis and improved healthcare Health - Partnerships with Non- Government Organisations Community Development 9 Disaster Relief Cl. (i) promoting healthcare including preventive healthcare Cl. (i) promoting healthcare including preventive healthcare Cl. (i) promoting healthcare including preventive healthcare Cl. (ii) promoting education; Cl. (x) rural development projects Cl. (x) rural development projects 10 Education - DA Scholarships Cl. (ii) promoting education West Bengal-Nadia, Bankura, Hugli, Kolkata, Murshidabad, Purba Medinipur, Howrah, Bardhaman, South 24 Parganas, Paschim Medinipur, Burdwan, Malda, North 24 Parganas, Purba Mednipur New Delhi 0.75 0.50 2.00 Maharashtra - Mumbai 30.00 26.43 50.68 Maharashtra - Nashik Gujarat- Bhavnagar New Delhi 8.64 4.78 10.32 Madhya Pradesh-Shadol Andhra Pradesh- East Godavari 9.82 3.65 4.01 Jammu and Kashmir-Srinagar, Jammu Maharashtra - Beed Tamil Nadu - Chennai Gujarat – Amreli All States and UTs of India 20.90 9.45 16.52 4.97 2.49 6.50 4.80 3.61 7.67 131.47 126.31 127.66 Implementing Agency - Reliance Foundation* Implementing Agency - Reliance Foundation* Implementing Agency - Reliance Foundation* Implementing Agency - Reliance Foundation* Implementing Agency - Reliance Foundation* Implementing Agency - Reliance Foundation* Implementing Agency - Reliance Foundation* Implementing Agency - Reliance Foundation* 11 Education - Reliance Foundation Jr. NBA Program Cl. (ii) promoting education; Cl. (vii) training to promote sports 12 Education - Reliance University Cl. (ii) promoting education Kerala- Kottayam and Kochi Punjab- Ludhiana and Jalandhar Delhi Maharashtra-Mumbai West Bengal-Kolkata Tamil Nadu-Chennai Maharashtra-Raigad 218 Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Sr. No CSR project or activity identified 13 Environment - RF - Urban Renewal 14 Education-Initiatives Digitisation of education initiative. 15 Health - Sir HN Reliance Foundation Hospital and Research Centre 16 Health - Mother & Child Health 17 Health - Lodhivali Hospital 18 Promoting Traditional Arts and Culture 19 RF Young Champs 20 21 Skilling, Entrepreneurship and Alternate Livelihoods Education – Partnerships with Non-Government Organisations Sector in which the project is covered (clause no. of schedule VII to the Companies Act, 2013, as amended) Cl. (iv) ensuring environmental sustainability, ecological balance Cl. (ii) promoting education Cl. (i) promoting healthcare including preventive healthcare Cl. (i) promoting healthcare including preventive healthcare Cl. (i) promoting healthcare including preventive healthcare Cl. (v) protection of national heritage, art & culture Cl. (vii) training to promote rural sports, Nationally recognised sports Cl. (ii) promoting education; Cl. (x) rural development projects Cl. (ii) promoting education Projects or programs 1) Local area or other 2) Specify the State and district where projects or programs was undertaken Amount outlay (budget) project or program wise (₹ in crore) Maharashtra-Nashik Haryana- Gurgaon 1.90 Amount spent on the projects or programs: Sub Heads (1) Direct expenditure on projects or programs (2) Overheads (` in crore) 0.85 Cumulative expenditure upto the reporting period, i.e., March 31, 2016 (₹ in crore) 0.96 Andhra Pradesh – Anantpur, Chitoor, Guntur, Kadapa, Krishna, Kurnool, Prakasham, Srikakaulam, Vishakapatnam, West Godavari Telangana – Hyderabad Gujarat – Junagadh, Mehsana, Vadodara, Gandhinagar Maharashtra – Mumbai Rajasthan- Banswara, Sawai Madhopur Maharashtra - Gangakhed, Yavatmal Gujarat - Netrang, Jasdan Madhya Pradesh - Chhindwara, Seoni Maharashtra-Raigad 1.00 0.63 2.31 264.00 248.02 801.91 1.35 0.78 0.78 1.50 1.29 1.29 Maharashtra-Mumbai 1.00 0.28 0.28 Maharashtra-Mumbai 7.00 4.99 4.99 8.60 1.85 1.85 53.54 41.15 41.15 Maharashtra-Mumbai, Beed Andhra Pradesh – Vijaywada, East Godavari Telangana - Hyderabad Maharashtra – Nashik, Mumbai Gujarat – Gandhinagar Telangana – Hyderabad Madhya Pradesh - Ujjain West Bengal - Kolkata New Delhi Amount spent direct or through implementing agency Implementing Agency - Reliance Foundation* Implementing Agency - Reliance Foundation* Implementing Agency - Reliance Foundation* Implementing Agency - Reliance Foundation* Implementing Agency - Reliance Foundation* Implementing Agency - Reliance Foundation* Implementing Agency - Reliance Foundation* Implementing Agency - Reliance Foundation* Implementing Agency - Reliance Foundation* 219 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Sr. No CSR project or activity identified Projects or programs 1) Local area or other 2) Specify the State and district where projects or programs was undertaken Sector in which the project is covered (clause no. of schedule VII to the Companies Act, 2013, as amended) 22 Health- CSR at Manufacturing locations Cl. (i) promoting preventive healthcare 23 Community Development- CSR at Manufacturing locations Cl. (x) rural development projects 24 Disaster Relief- CSR 25 at manufacturing locations Education- CSR at manufacturing locations Cl. (x) rural development projects Cl. (ii) promoting education 26 Other initatives- CSR at manufacturing locations 27 Other Initiatives - CSR at manufacturing locations Cl. (vii) promoting nationally recognised & rural sports Various Cl. of Schedule VII Andhra Pradesh- East Godavari Gujarat- Bharuch, Surat, Jamnagar, Ahmedabad, Vadodara Punjab- Hoshiarpur Maharashtra- Nagpur, Raigad Madhya Pradesh- Shahdol Uttar Pradesh- Allahabad, Barabanki Dadra & Nagar Haveli Andhra Pradesh- East Godavari Gujarat- Bharuch, Surat, Jamnagar, Ahmedabad, Vadodara Punjab- Hoshiarpur Maharashtra- Nagpur, Raigad Madhya Pradesh- Shahdol Uttar Pradesh- Allahabad, Barabanki Dadra & Nagar Haveli Andhra Pradesh- East Godavari Andhra Pradesh- East Godavari Gujarat- Bharuch, Surat, Jamnagar, Vadodara Punjab- Hoshiarpur Maharashtra- Nagpur, Raigad Madhya Pradesh- Shahdol Uttar Pradesh- Barabanki Andhra Pradesh- Kakinada, East Godavari Andhra Pradesh- East Godavari Gujarat- Bharuch, Surat, Jamnagar, Ahmedabad, Vadodara Punjab- Hoshiarpur Maharashtra- Nagpur, Raigad Madhya Pradesh- Shahdol Uttar Pradesh- Allahabad, Barabanki Dadra & Nagar Haveli Total - Direct Expenditure Total - Overheads Grand Total Amount outlay (budget) project or program wise (₹ in crore) 26.87 Amount spent on the projects or programs: Sub Heads (1) Direct expenditure on projects or programs (2) Overheads (` in crore) 22.69 Amount spent direct or through implementing agency Cumulative expenditure upto the reporting period, i.e., March 31, 2016 (₹ in crore) 37.09 Direct/ Implementing Agency 5.35 1.15 3.03 Direct/ Implementing Agency - - 0.79 45.24 44.31 54.55 0.04 0.04 0.04 5.03 4.90 8.99 Direct/ Implementing Agency Direct/ Implementing Agency Direct/ Implementing Agency Direct/ Implementing Agency 748.86 14.64 763.50 639.70 11.87 651.57 1,390.68 21.47 1,412.15 *Reliance Foundation (RF) is a company within the meaning of Section 8 of the Companies Act, 2013 and 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, with the aim of enabling lives, living and livelihood for a stronger and inclusive India. RF has an established track record of more than three years in undertaking such projects and programs. Some CSR activities have been carried out through support to several other Non-Government Organisations or Charitable Institutions. 220 Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.RESPONSIBILITY STATEMENT The Responsibility Statement of the Corporate Social Responsibility and Governance (CSR&G) Committee of the Board of Directors of the Company, is reproduced below: ‘The implementation and monitoring of Corporate Social Responsibility (CSR) Policy, is in compliance with CSR objectives and policy of the Company.’ ANNEXURE IIIA TO DIRECTORS’ REPORT POLICY FOR SELECTION OF DIRECTORS AND DETERMINING DIRECTORS’ INDEPENDENCE INTRODUCTION: 1. Reliance Industries Limited (RIL) believes that an enlightened 1.1 Board consciously creates a culture of leadership to provide a long-term vision and policy approach to improve the quality of governance. Towards this, RIL ensures constitution of a Board of Directors with an appropriate composition, size, diversified expertise and experience and commitment to discharge their responsibilities and duties effectively. 3.2 3.3 Yogendra P. Trivedi Chairman, CSR&G Committee Nikhil R. Meswani Executive Director Mumbai, July 15, 2016 “Human Resources, Nomination and Remuneration Committee” means the committee constituted by RIL’s Board in accordance with the provisions of Section 178 of the Companies Act, 2013 and Regulation 19 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”). “Independent Director” means a director referred to in sub-section (6) of Section 149 of the Companies Act, 2013 and Regulation 16 (1) (b) of Listing Regulations. 4. POLICY: 1.2 RIL recognises the importance of Independent Directors in achieving the effectiveness of the Board. RIL aims to have an optimum combination of Executive, Non-Executive and Independent Directors. 2. SCOPE AND EXCLUSION: 2.1 This Policy sets out the guiding principles for the Human Resources, Nomination and Remuneration Committee for identifying persons who are qualified to become Directors and to determine the independence of Directors, in case of their appointment as independent directors of the Company. 3. TERMS AND REFERENCES: In this Policy, the following terms shall have the following meanings: 3.1 “Director” means a director appointed to the Board of a company. 4.1 QUALIFICATIONS AND CRITERIA 4.1.1 The Human Resources, Nomination and Remuneration (HRNR) Committee, and the Board, shall review on an annual basis, appropriate skills, knowledge and experience required of the Board as a whole and its individual members. The objective is to have a Board with diverse background and experience that are relevant for the Company’s global operations. 4.1.2 In evaluating the suitability of individual Board members, the HRNR Committee may take into account factors, such as: General understanding of the Company’s business dynamics, global business and social perspective; Educational and professional background; Standing in the profession; Personal and professional ethics, integrity and values; 221 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254  Willingness to devote sufficient time and energy in carrying out their duties and responsibilities effectively. 4.1.3 The proposed appointee shall also fulfill the following requirements: Shall possess a Director Identification Number; Shall not be disqualified under the Companies Act, 2013; Shall give his written consent to act as a Director; Shall endeavor to attend all Board Meetings and wherever he is appointed as a Committee Member, the Committee Meetings; Shall abide by the Code of Conduct established by the Company for Directors and Senior Management Personnel; Shall disclose his concern or interest in any company or companies or bodies corporate, firms, or other association of individuals including his shareholding at the first meeting of the Board in every financial year and thereafter whenever there is a change in the disclosures already made; Such other requirements as may be prescribed, from time to time, under the Companies Act, 2013, Listing Regulations and other relevant laws. 4.1.4 The HRNR Committee shall evaluate each individual with the objective of having a group that best enables the success of the Company’s business. 4.2 CRITERIA OF INDEPENDENCE 4.2.1 The HRNR Committee shall assess the independence of Directors at the time of appointment / re-appointment and the Board shall assess the same annually. The Board shall re-assess determinations of independence when any new interests or relationships are disclosed by a Director. 4.2.2 The criteria of independence, as laid down in Companies Act, 2013 and Listing Regulations, is as below: An independent director in relation to a company, means non-executive director, other than a managing director or a whole-time director or a nominee director- a. who, in the opinion of the Board, is a person of integrity and possesses relevant expertise and experience; b. (i) who is or was not a promoter of the company or associate company; its holding, subsidiary or 222 c. d. (ii) who is not related to promoters or directors in the company, its holding, subsidiary or associate company; who has or had no pecuniary relationship with the company, its holding, subsidiary or associate company, or their promoters, or directors, during the two immediately preceding financial years or during the current financial year; none of whose relatives has or had pecuniary relationship or transaction with the company, its holding, subsidiary or associate company, or their promoters, or directors, amounting to two per cent or more of its gross turnover or total income or 50 lakh rupees or such higher amount as may be prescribed, whichever is lower, during the two immediately preceding financial years or during the current financial year; e. who, neither himself nor any of his relatives- (i) holds or has held the position of a key managerial personnel or is or has been an employee of the company or its holding, subsidiary or associate company in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed; (ii) is or has been an employee or proprietor or a partner, in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed, of- (A) (B) a firm of auditors or company secretaries in practice or cost auditors of the company or its holding, subsidiary or associate company; or any legal or a consulting firm that has or had any transaction with the company, its holding, subsidiary or associate company amounting to 10 per cent or more of the gross turnover of such firm. (iii) holds together with his relatives two per cent or more of the total voting power of the company; or (iv) is a Chief Executive or director, by whatever name called, of any non-profit organisation that receives twenty-five per cent or more of its receipts or corpus from the company, any of its promoters, directors or its holding, subsidiary or associate company or that holds two per cent or more of the total voting power of the company; or Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. (v) is a material supplier, service provider or customer or a lessor or lessee of the company. f. shall possess appropriate skills, experience and knowledge in one or more fields of finance, law, management, sales, marketing, administration, research, technical operations, corporate social responsibility or other disciplines related to the Company’s business; governance, corporate g. shall possess such other qualifications as may be prescribed, from time to time, under the Companies Act, 2013; and h. who is not less than 21 years of age. 4.2.3 The Independent Directors shall abide by the “Code for Independent Directors” as specified in Schedule IV to the Companies Act, 2013. 4.3 OTHER DIRECTORSHIPS / COMMITTEE MEMBERSHIPS 4.3.1 The Board members are expected to have adequate time and expertise and experience to contribute to effective Board performance. Accordingly, members should voluntarily limit their directorships in other listed public limited companies in such a way that it does not interfere with their role as directors of the Company. The HRNR Committee shall take into account the nature of, and the time involved in a Director’s service on other Boards, in evaluating the suitability of the individual ANNEXURE IIIB TO DIRECTORS’ REPORT Director and making its recommendations to the Board. 4.3.2 A Director shall not serve as Director in more than 20 companies of which not more than 10 shall be Public Limited Companies. 4.3.3 A Director shall not serve as an Independent Director in more than 7 Listed Companies and not more than 3 Listed Companies in case he is serving as a Whole-time Director in any Listed Company. 4.3.4 A Director shall not be a member in more than 10 Committees or act as Chairman of more than 5 Committees across all companies in which he holds directorships. For the purpose of considering the limit of the Committees, Audit Committee and Stakeholders’ Relationship Committee of all Public Limited Companies, whether listed or not, shall be included and all other companies including Private Limited Companies, Foreign Companies and Companies under Section 8 of the Companies Act, 2013 shall be excluded. For and on behalf of the Board of Directors Mukesh D. Ambani Chairman and Managing Director Mumbai, July 15, 2016 REMUNERATION POLICY FOR DIRECTORS, KEY MANAGERIAL PERSONNEL AND OTHER EMPLOYEES 1. 1.1 INTRODUCTION: Reliance Industries Limited (RIL) recognises the importance of aligning the business objectives with specific and measureable targets. The individual objectives and Company has therefore formulated the remuneration policy for its directors, key managerial personnel and other employees keeping in view the following objectives: 1.1.1 Ensuring that level and composition of remuneration is reasonable and sufficient to attract, retain and motivate, to run the Company successfully. the 1.1.2 Ensuring that to performance is clear and meets the performance benchmarks. relationship of remuneration 1.1.3 Ensuring that remuneration involves a balance between fixed and incentive pay reflecting short and long-term performance objectives appropriate to the working of the Company and its goals. 2. SCOPE AND EXCLUSION: 2.1 This Policy sets out the guiding principles for the Human Resources, Nomination and Remuneration Committee for recommending to the Board the remuneration of the directors, key managerial personnel and other employees of the Company. 3. TERMS AND REFERENCES: In this Policy, the following terms shall have the following meanings: 3.1 “Director” means a director appointed to the Board of the Company. 3.2 “Key Managerial Personnel” means (i) the Chief Executive Officer or the Managing Director or the Manager; 223 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 (ii) the Company Secretary; (iii) the Whole-time Director; (iv) the Chief Financial Officer; and 3.3 (v) such other officer as may be prescribed under the Companies Act, 2013. “Human Resources, Nomination and Remuneration Committee” means the committee constituted by RIL’s Board in accordance with the provisions of Section 178 of the Companies Act, 2013 and Regulation 19 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”). 4. POLICY: 4.1 REMUNERATION TO EXECUTIVE DIRECTORS AND KEY MANAGERIAL PERSONNEL 4.1.1 The Board, on the recommendation of the Human Resources, Nomination and Remuneration (HRNR) Committee, shall review and approve the remuneration payable to the Executive Directors of the Company within the overall limits approved by the shareholders. 4.1.2 The Board, on the recommendation of the HRNR Committee, shall also review and approve the remuneration payable to the Key Managerial Personnel of the Company. 4.1.3 The remuneration structure to the Executive Directors include the and Key Managerial Personnel shall following components: (i) Basic Pay (ii) Perquisites and Allowances (iii) Stock Options (iv) Commission (Applicable in case of Executive Directors) ANNEXURE IV TO DIRECTORS’ REPORT SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED MARCH 31, 2016 [Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014] To The Members Reliance Industries Limited Maker Chambers IV, 222, Nariman Point, Mumbai – 400 021 224 (v) Retiral benefits (vi) Annual Performance Bonus 4.1.4 The Annual Plan and Objectives for Executive Directors and Senior Executives (Executive Committee) shall be reviewed by the HRNR Committee and Annual Performance Bonus will be approved by the Committee based on the achievements against the Annual Plan and Objectives. 4.2 REMUNERATION TO NON-EXECUTIVE DIRECTORS 4.2.1 The Board, on the recommendation of the HRNR Committee, shall review and approve the remuneration payable to the Non-Executive Directors of the Company within the overall limits approved by the shareholders. 4.2.2 Non-Executive Directors shall be entitled to sitting fees for attending the meetings of the Board and the Committees thereof. The Non-Executive Directors shall also be entitled to profit related commission in addition to the sitting fees. 4.3 REMUNERATION TO OTHER EMPLOYEES 4.3.1 Employees shall be assigned grades according to their qualifications and work experience, competencies as well as their roles and responsibilities in the organisation. Individual remuneration shall be determined within the appropriate grade and shall be based on various factors such as job profile, skill sets, seniority, experience and prevailing remuneration levels for equivalent jobs. For and on behalf of the Board of Directors Mukesh D. Ambani Chairman and Managing Director Mumbai, July 15, 2016 I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Reliance Industries Limited (hereinafter called the Company). 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 authorized representatives during the conduct of secretarial audit, I hereby report that in my opinion, the Company has, during the audit period covering Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. the financial year ended on March 31, 2016 (‘Audit Period’) complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance- mechanism in place to the extent, in the manner and subject to the reporting made 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, 2016 according to the provisions of: (i) (ii) The Companies Act, 2013 and the Companies Act, 1956 (the Act) and the rules made thereunder; The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder; (iii) The Depositories Act, 1996 and the Regulations and Bye- laws framed thereunder; (iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings; (v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):- (a) (b) (c) (d) (e) (f ) (g) (h) (i) 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 and The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 notified with effect from May 15, 2015; The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (Not applicable to the Company during the Audit Period); The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014; The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Act and dealing with client; The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (Not applicable to the Company during the Audit Period); The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998 (Not applicable to the Company during the Audit Period); and The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 notified with effect from December 1, 2015. I have also examined compliance with the applicable clauses of the following: (i) Secretarial Standards issued by The Institute of Company Secretaries of India notified with effect from July 1, 2015; and (ii) The Listing Agreements entered into by the Company with Stock Exchanges. During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above. I further report that, having regard to the compliance system prevailing in the Company and on examination of the relevant documents and records in pursuance thereof on test-check basis, the Company has complied with the following laws applicable specifically to the Company: (a) Merchant Shipping Act, 1958 and Rules made thereunder; (b) Petroleum Act, 1934 and Rules made thereunder; (c) Oil Field (Regulation and Development) Act, 1948 and Rules made thereunder; (d) The Mines Act, 1952 and Rules made thereunder; (e) The Petroleum and Natural Gas Regulatory Board Act, 2006 and the Rules made thereunder. I further report that The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act. Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting. All decisions at Board Meetings and Committee Meetings are carried out unanimously as recorded in the minutes of the meetings of the Board of Directors or Committee of the Board, as the case may be. I further report that there are adequate systems and processes in the Company commensurate with the size and its operations to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. I further report that during the audit period the Company has redeemed non-convertible debentures aggregating ₹ 164 crore. Dr. K R Chandratre FCS No. 1370, C P No: 5144 Place: Mumbai Date: April 15, 2016 225 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 ANNEXURE V TO DIRECTORS’ REPORT Particulars of Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo required under the Companies (Accounts) Rules, 2014 A. CONSERVATION OF ENERGY (I) STEPS TAKEN FOR CONSERVATION OF ENERGY Energy efficiency is a cornerstone for sustainable growth and advancement. The Company has recognised the profound responsibility of energy conservation to address the planet’s undisputed warming and to adapt to future impacts. The Company has undertaken various measures for reducing the Carbon di-oxide (CO2) emissions and incorporate energy efficient practices in day-to-day operations. The Company contributes in diversifying the energy basket with renewable sources of energy and ensuring to promote energy efficiency measures to sustain the growing energy needs of its operations. A dedicated ‘Energy Cell’, both at the site and group levels, is focusing on energy management and closely monitors energy consumption pattern across all manufacturing sites. Periodic energy audits are conducted to improve energy performance and benchmark with other international refineries and petrochemical sites. MAJOR ENERGY CONSERVATION INITIATIVES TAKEN DURING THE FY 2015-16 REFINING & MARKETING JAMNAGAR MANUFACTURING DIVISION (DTA) Installation of new Medium Pressure (MP) steam generator for heat recovery from LCNO circuit. Replacing Medium Pressure (MP) steam with lower grade LP steam in crude distillation columns and achieve super heat with innovative steam to steam heat exchange. Reduction of energy by revamping / retrofitting of Air preheater in Coker furnaces. JAMNAGAR MANUFACTURING DIVISION (SEZ) Utilisation of Light cycle gas oil residual heat from pump around loop in stripper re-boiler. Reducing the energy consumption by liquid seal drum downstream purge gas switch over to nitrogen from fuel gas. 226 Replacing Medium Pressure (MP) steam with lower grade LP steam in crude distillation columns and achieve super heat with innovative steam to steam heat exchange. MP Steam consumption reduction through additional steam generation in Fluidised Catalytic Cracking flue gas cooler through waste heat recovery. Use of advanced technology to manage two distillation column operation with only one and thus improve quality of intermediate product with same energy consumption. Reduced flaring by redirecting lights vent gas line up to tail gas treating unit. Installation of pressure control valve at tail gas treating unit preheater for high pressure steam inlet. PETROCHEMICALS HAZIRA MANUFACTURING DIVISION Increased cogeneration by replacing fuel fired hot oil based reboiler with steam based reboiler for low bleed column. Utilisation of boiler feed water from captive power plant in Cracker and recover heat to reduce steam consumption in Cracker Deaerator. Bypass of Thermo-compressor for usage of low pressure steam in place of MP steam for Butadiene reboiler. Cracker reduced steam consumption by increasing steam generation pressure at inlet of steam turbines driving compressors. VADODARA MANUFACTURING DIVISION Installation of new energy efficient turbines to drive cracked gas compressor and propylene refrigeration compressor. Installation of back pressure steam turbine to generate 4.3 MW power from steam. Replacing cooling water pumps with new high efficiency pumps. Heat recovery from wash water stream to cycle gas by installing a pre-contactor in MEG plant. Low Boiler Tower feed heating with High Boiler Tower O/H stream. Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.  Installation of efficiency and capacity enhancement. refrigerant sub-cooler for energy OTHER MAJOR INITIATIVES TAKEN AT VARIOUS MANUFACTURING DIVISIONS Recycling of coagulator and stripper boot water and increase use of Condensate from finishing sections. Replacement of the existing vinyl chloride monomer recovery compressors with gearless compressors. Additional heat recovery from industrial, commercial and institutional water through heat integration. Installation of new energy efficient Arzen air blower for pellet conveying. Replacement of old air compressors with an energy efficient one. DAHEJ MANUFACTURING DIVISION Installation of 4th hydrogen compressor to increase hydrogen utilisation as fuel in captive power plant. Energy savings by attending to faulty steam traps of steam header. Energy savings by optimisation of reboiler operation. Energy savings by optimisation to reduce consumption. fuel Replacement of energy efficient motors at various locations. Replacement of inefficient pumps with energy efficient ones at various locations. Fluorescent lamps are being replaced with 18W LED tubelight at Naroda. Minimised distribution heat loss, improved combustion efficiency and avoided heater auxiliary power by conversion of Thermic fluid heated stenter with direct gas fired stenter. Saving chiller power by reducing Control A/c area, stopping one Blower, Increasing the Cooling Coils and automation in chiller compressor. Installing cyclic timer for lighting in return air trenches of worsted, Sulzer plant. Avoiding consumption of no-load power by isolation of two transformers after incorporation of bus coupling. system by compressed Optimisation of interconnection of old & new networks and minimising venting from LP compressor. air Reducing steam consumption in Purification Column reboiler by modification of condensate evacuation system in Ethylene Glycol plant. Replacement of orifice meters of air compressors to avoid 0.2 bar pressure drop and reduce compressed air generation pressure. NAGOTHANE MANUFACTURING DIVISION Energy consumption reduction by Gas Turbine uprate in captive power plant to improve heat rate. Replacement of 150W high pressure sodium vapor lamps by 90W LED lights. PATALGANGA MANUFACTURING DIVISION Steam consumption reduction through optimising crystallizer operation and better heat integration in purified terephthalic acid plant. (II) STEPS TAKEN BY THE COMPANY FOR UTILISATION OF ALTERNATE SOURCES OF ENERGY One hybrid digester was converted to up flow anaerobic sludge blanket reactor in Hazira to increase biogas generation by 11%. At Jamnagar, a 60 kWp solar PV plant has been installed on administrative building canteen rooftop. Bore well pump operation in PET bottle to flakes, wash line is operated on solar power at Barabanki. 227 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 (III) THE CAPITAL INVESTMENT ON ENERGY CONSERVATION EQUIPMENT Capital investments on energy conservation equipments (₹ in crore) Manufacturing Division Sr. No. Energy savings (Gcal/hr) Financial saving (₹ in crore per Annum) (a) Refining & Marketing 1 2 Jamnagar manufacturing division (DTA) Jamnagar manufacturing division (SEZ) (b) Petrochemicals 3 4 5 6 7 8 Hazira manufacturing division Vadodara manufacturing division Dahej manufacturing division Nagothane manufacturing division Patalganga manufacturing division Other manufacturing divisions 17.68 103.14 6.19 150.64 9.46 7.61 0.49 0.42 10.69 34.99 14.76 16.46 4.25 2.19 0.47 124.28 24.20 70.24 34.69 46.46 15.70 3.92 3.32 3.18 The Company has also made capital investment in manufacturing locations for utilising alternate sources of energy to the extent of ₹8.63 crore resulting in to energy savings of 1.1 Gcal/hr and financial savings of ₹ 2.18 crore. B. TECHNOLOGY ABSORPTION Research and technology at RIL helps create superior value by harnessing internal research and development skills and competencies and creates innovations in emerging technology domains related to RIL’s various businesses. R&D at Reliance focuses on (i) new products, processes and catalyst development to support existing business and create breakthrough technologies for new businesses, (ii) advanced troubleshooting, and (iii) support to capital in projects, and profit and reliability manufacturing plants. improvements (I) MAJOR EFFORTS MADE TOWARDS TECHNOLOGY ABSORPTION REFINING & MARKETING Removal of Oxygenates and CS2 from petrochemical naphtha. Development of ZSM-5 additive (RMP-5) to improve propylene yield in the FCC. Development of liquid additive for coker yield / furnace run length improvement. Estimate true corrosivity of Crude to optimise crude purchases and refinery operation. Maximise value of C5-C12 pool. Fast characterisation of Crude using NIR and SIMDIS to optimise crude purchases and refinery operation. Develop Vacuum Gas Oil Hydrotreating (VGOHT) catalyst/P Guard bed in collaboration with catalyst majors. 228 Development of high performance sulfur fertiliser (RelfarmS). Development of RelBitS for blending by-product sulfur with Bitumen . Profitable disposal of Gasifier slag and value creation by extraction of Ni + V from slag. Development of High Active FCC catalyst. Production of nPnO, Linear Alkyl Benzene (LAB) feedstock from Light Coker Gas Oil (LCGO) at Jamnagar. Demo unit to demonstrate multi zone catalytic cracking process (MCC). PETROCHEMICALS Development of a Reliance proprietary process to manufacture Chlorinated Polyvinyl Chloride (CPVC) resin. RIL Self Limiting Donors for RELCAT200Y to improve polypropylene properties and operational reliability. Development of pre-polymer Diester Catalyst for Polypropylene Grades. Development of reactor made high melt flow polypropylene impact copolymer grade using RELCAT 300Y Diether Catalyst. Development of catalyst for gas phase Polyethylene at Nagothane and Jamnagar- HDPE & LLDPE. Development of Reliance proprietary Metallocene Catalyst for Gas Phase polyethylene at Nagothane. HDPE Products & Process Improvement. Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.  Development of Disentangled Ultra-high Molecular Weight Polyethylene Resin for high performance applications. Layered zeolite material for Bromine Index reduction. Development of self-healing elastomers for extended life and safety of automotive tyres. BIOFUELS AND BIO-CHEMICALS Development of ‘Green Bio crude’ from algae using sea water, sunlight and low cost nutrients. Development of high yielding biofuel hybrid crops. Development of high yielding, waste land based non- edible crops for large scale cultivation for production of biofuels/chemicals. In-house research and external technology for converting abundantly available cellulosic biomass in India to fuels and chemicals. Application of biotechnology productivity of biofuels species. to enhance the Testing the best hybrids produced by us and others at different agro-climatic zones to identify most productive cultivators. Popularising the cultivation of bio-fuel crops by growers by conducting method and varietal demonstrations. Genetic modifications, high throughput screening and metabolic flux analysis for biomolecule production. HEALTH, SAFETY AND ENVIRONMENT Development of a Reliance proprietary catalyst and process to replace Hydrofluoric acid (HF) in the manufacture of Linear Alkyl Benzene (LAB) for use in detergents. Upgrading gasoline by benzene recovery unit /extract hydrotreater and scanfining unit. Hydro isomerisation catalyst for diesel production and low pressure, ultra-low sulphur diesel hydrotreating catalyst. OTHER R&D ACTIVITIES ACROSS MULTIPLE BUSINESSES One step process for Production of Carbon Nanotubes (CNT) for Non-Woven Mats (NWM) and Fiber. Purification of crude terephthalic acid using ionic liquids based technology to significantly reduce operating and capital cost. Desalter Brine treatment using ionic liquid based technology. Computational fluid dynamics studies for trouble shooting plant operations. Advanced Process Control Optimisation (RTO) throughout manufacturing. (APC) and Real Time Comparative evaluation and benchmarking of various manufacturing technologies. Development of reactor models in various refinery/ petrochemicals plants to optimise plant operations. (II) THE BENEFITS DERIVED LIKE PRODUCT IMPROVEMENT, COST REDUCTION, PRODUCT DEVELOPMENT OR IMPORT SUBSTITUTION The potential benefits derived from R&D and Technology absorption, adoption and innovation initiatives in FY 2015- 16 is approximately ` 199 crore / annum. (III) INFORMATION REGARDING IMPORTED TECHNOLOGY (IMPORTED DURING LAST THREE YEARS) Details of technology imported Technology import from Year of import Status implementation / absorption AMT-ADP process for azeotropic distillation AMT, USA 2015-16 Plant under design and construction Halogenated Isobutylene Isoprene Rubber (HIIR), JV with Sibur Yarsintez, Russia 2015-16 Basic Engineering package development is underway Ethylene (Cracker) – Ethane feed flexibility project Technip, Houston 2014-15 eBEP phase in progress Synthetic natural gas (SNG) Hydro treatment of extract High purity isobutylene Johnson Matthey, UK 2014-15 Plant under design and construction Axens, France CB&I - Lummus 2014-15 Plant under construction 2013-14 Plant under design and construction 229 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 (IV) EXPENDITURE INCURRED ON RESEARCH AND Sr. No. a) b) DEVELOPMENT Particulars Capital Revenue Total (` In crore) 631 628 1,259 C. FOREIGN EXCHANGE EARNINGS AND OUTGO (I) 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. ANNEXURE VI TO DIRECTORS’ REPORT During the year, the Company has exports (FOB value) worth ₹1,37,634 crore (US$20.8 billion). (II) TOTAL FOREIGN EXCHANGE EARNED AND USED (` In crore) Foreign Exchange earned in terms of Actual Inflows Foreign Exchange outgo in terms of Actual Outflows 1,37,832 1,76,610 Note: Actual inflows does not include total savings in Foreign Exchange through products manufactured by the Company and deemed exports amounting to ₹ 82,470 crore (US$12.5 billion). For and on behalf of the Board of Directors Mukesh D. Ambani Chairman and Managing Director Mumbai, July 15, 2016 FORM NO. MGT-9 EXTRACT OF ANNUAL RETURN  As on the financial year ended on March 31, 2016 [Pursuant to Section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014] I. i) ii) iii) iv) v) REGISTRATION AND OTHER DETAILS CIN Registration Date Name of the Company Category / Sub-Category of the Company Address of the Registered office and contact details vi) vii) Whether listed company Name, Address and Contact details of Registrar and Transfer Agent, if any L17110MH1973PLC019786 08-05-1973 Reliance Industries Limited Public Company / Limited by shares 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai – 400 021 Tel: +91 22 22785000 Fax:+91 22 22785111 Yes Karvy Computershare Private Limited Karvy Selenium Tower B Plot 31-32, Gachibowli, Financial District Nanakramguda, Hyderabad – 500 032 Tel. : +91 40 67161700 Toll Free No: 1800 425 8998 Fax: +91 40 67161680 II. III. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY All the business activities contributing 10% or more of the total turnover of the Company PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES As per Attachment A As per Attachment B 230 Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. IV. i) ii) iii) iv) v) V. VI. A. B. C. VII. SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY) Category-wise Share Holding Shareholding of Promoters Change in Promoters’ Shareholding Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs) Shareholding of Directors and Key Managerial Personnel INDEBTEDNESS Indebtedness of the Company including interest outstanding/accrued but not due for payment REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL Remuneration to Managing Director, Whole-time Directors and/or Manager Remuneration to other directors Remuneration to Key Managerial Personnel other than MD/Manager/WTD PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES As per Attachment C As per Attachment D As per Attachment E As per Attachment F As per Attachment G As per Attachment H As per Attachment I As per Attachment J As per Attachment K As per Attachment L ATTACHMENT A II. PRINCIPAL BUSINESS ACTIVITES OF THE COMPANY All the business activities contributing 10% or more of the total turnover of the Company are given below: - Sr. No. Name and Description of NIC Code of the product/service * main products/services % to total turnover of the Company #  1  2 Refining Petrochemicals 192- Manufacture of refined petroleum products 201- Manufacture of basic chemicals, fertilizers and nitrogen compounds, plastic and synthetic rubber in primary forms 67.42 30.63 * As per National Industrial Classification - 2008, Ministry of Statistics and Programme Implementation # On the basis of Gross Turnover ATTACHMENT B III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES/BODIES CORPORATE Name of Company/Bodies Corporate Affinity Names, Inc Central Park Enterprises DMCC Delta Corp East Africa Limited Sr. No. 1 2 3 Address of Company CIN/GLN Capitol Services, Inc. 1675 S. State Street, Suite B, Dover, Delaware 19901 Unit No. 1801-B, JBC 3, Plot No JLT-PH2-Y1A, Jumeirah Lakes Towers, Dubai U.A.E L. R. No.1870 / II /236, The Pride Rock, No. 6, Donyo Sabuk Avenue, Off General Mathenge Drive, P.O. Box 69952- 00400, Nairobi NA NA NA Holding / Subsidiary / Associate Subsidiary % of Shares held* 100.00 Applicable section 2(87)(ii) Subsidiary 100.00 2(87)(ii) Subsidiary 58.80 2(87)(ii) 231 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254CIN/GLN NA NA NA NA NA NA Holding / Subsidiary / Associate Subsidiary % of Shares held* 100.00 Applicable section 2(87)(ii) Subsidiary 100.00 2(87)(ii) Subsidiary 100.00 2(87)(ii) Subsidiary 100.00 2(87)(ii) Subsidiary 100.00 2(87)(ii) Subsidiary 100.00 2(87)(ii) N.A. Subsidiary 100.00 2(87)(ii) N.A. N.A. N.A. N.A. Subsidiary 100.00 2(87)(ii) Subsidiary 100.00 2(87)(ii) Subsidiary 100.00 2(87)(ii) Subsidiary 76.00 2(87)(ii) U51109MH2007PTC176254 Subsidiary 100.00 2(87)(ii) U52599MH2007PLC176414 Subsidiary 90.67 2(87)(ii) U36991MH1999PTC119874 Subsidiary 100.00 2(87)(ii) Sr. No. 4 5 6 7 8 9 Address of Company Name of Company/Bodies Corporate Ethane Crystal LLC Trust Company Complex, Ajeltake Road, Ethane Emerald LLC Ethane Opal LLC Ethane Pearl LLC Ethane Sapphire LLC Ajeltake Island, Majuro, Marshall Islands MH96960 Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 Ethane Topaz LLC Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 Plot L. R. No. 1870/1/443, The West Wood, 8th Floor, Vale Close, Off., Ring Road, Park Plants, P.O Box 40908, 00100 Nairobi P.O Box No. 9103, Mafuta Street, Kurasini, DAR ES SALAM, Tanzania Plot 13, 7th Street, Industrial Area, P O Box 7105, Kampala, Uganda Plot No.1282, Zanzibar IFS Court, Twenty Eight, Cybercity, Ebene, Mauritius 3rd Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai – 400002 5th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai – 400002 5th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao Mumbai- 400002 10 Gapco Kenya Limited 11 12 13 14 15 16 17 18 Gapco Tanzania Limited Gapco Uganda Limited Gapoil (Zanzibar) Limited Gulf Africa Petroleum Corporation Indiawin Sports Private Limited Kanhatech Solutions Limited Reliance Supply Solutions Private Limited (Formerly known as Office Depot Reliance Supply Solutions Private Limited) Recron (Malaysia) Sdn Bhd 232 Suite 7.01 -7.03, Level 7, Wisma Goldhill, 67, Jalan Raja Chulan, 50200 Kuala Lumpur, Malaysia NA Subsidiary 100.00 2(87)(ii) Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Sr. No. 19 20 21 22 23 24 25 26 27 28 29 30 31 Name of Company/Bodies Corporate Reliance Aerospace Technologies Limited Reliance Ambit Trade Private Limited Reliance Aromatics and Petrochemicals Limited Reliance Brands Limited Reliance Chemicals Limited Reliance Clothing India Private Limited Reliance Commercial Land & Infrastructure Limited Reliance Comtrade Private Limited Reliance Corporate IT Park Limited Reliance do Brasil Industria e Comercio de Produtos Texteis, Quimicios, Petroquimicios e Derivados Ltda. Reliance Eagleford Midstream LLC Reliance Eagleford Upstream GP LLC Reliance Eagleford Upstream Holding LP Address of Company CIN/GLN U35300MH2008PLC186471 Holding / Subsidiary / Associate Subsidiary % of Shares held* 100.00 Applicable section 2(87)(ii) 9th Floor, Maker Chambers IV, 222 Nariman Point, Mumbai - 400021 4th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai - 400002 9th Floor, Maker Chambers IV, 222 Nariman Point, Mumbai - 400002 5th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai – 400002 9th Floor, Maker Chambers IV, 222 Nariman Point, Mumbai - 400021 Court House, 3rd Floor, Lokmanya Tilak Marg, Dhobi Talao, Mumbai – 400002 4th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai-400002 4th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai-400002 Reliance Corporate Park, Building No.4, 5, TTC Industrial Area, Thane- Belapur Road, Ghansoli, Navi Mumbai, Thane – 400701. Rua Antonio Loureiro, No. 346, Sala 8, CEP 04376-110, Vila Santa Catarina, São Paulo, Brazil U01119MH2006PTC162902 Subsidiary 100.00 2(87)(ii) U23200MH1993PLC190934 Subsidiary 100.00 2(87)(ii) U51900MH2007PLC174470 Subsidiary 89.98 2(87)(ii) U24110MH1990PLC059590 Subsidiary 100.00 2(87)(ii) U17120MH2008PTC180384 Subsidiary 100.00 2(87)(ii) U51109MH2008PLC185389 Subsidiary 100.00 2(87)(ii) U52599MH2006PTC164458 Subsidiary 100.00 2(87)(ii) U74140MH2001PLC131458 Subsidiary 100.00 2(87)(ii) NA Subsidiary 100.00 2(87)(ii) Delaware International Registry & Incorporation Services LLC, 301, North Market Street, Farmers Banks Building, Wilmington Delaware -19901 Capitol Corporate Services, Inc. 800 Brazos, Suite 400, Austin, Texas 78701 Capitol Corporate Services, Inc. 800 Brazos, Suite 400, Austin, Texas 78701 NA NA NA Subsidiary 100.00 2(87)(ii) Subsidiary 100.00 2(87)(ii) Subsidiary 100.00 2(87)(ii) 233 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Address of Company Capitol Services, Inc. 1675 S. State Street, Suite B, Dover, Delaware-19901 Raman Rati Apartment, Near Ashapura Hotel, Saru Section Road, Jamnagar- 361002 9th Floor, Maker Chambers IV, 222 Nariman Point, Mumbai - 400021 4th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai – 400002 250 North Bridge Road, #16-01, Raffles City Tower Singapore -179101 Unit No. 1801-A, JBC 3, Plot No JLT-PH2-Y1A Jumeirah Lakes Towers, Dubai U.A.E 9th Floor, Maker Chambers IV, 222, Nariman Point, Mumbai – 400021 Hoogoorddreef 15, 1101 BA, Amsterdam, The Netherlands 4th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai-400002 250 North Bridge Road, #16-01 Raffles City Tower, Singapore-179101 8th Floor, 105 Wigmore Street, London W1U 1QY, United Kingdom 3rd Floor, 77-B, IFFCO Road, Sector-18, Gurgaon-122015 CIN/GLN NA Holding / Subsidiary / Associate Subsidiary % of Shares held* 100.00 Applicable section 2(87)(ii) U51100GJ2005PTC046538 Subsidiary 100.00 2(87)(ii) U45201MH1993PLC190935 Subsidiary 100.00 2(87)(ii) U40108MH2008PLC185326 Subsidiary 100.00 2(87)(ii) NA NA Subsidiary 100.00 2(87)(ii) Subsidiary 100.00 2(87)(ii) U60300MH1991PLC059678 Subsidiary 100.00 2(87)(ii) NA Subsidiary 100.00 2(87)(ii) U24230MH1999PLC121318 Subsidiary 100.00 2(87)(ii) NA NA Subsidiary 100.00 2(87)(ii) Subsidiary 100.00 2(87)(ii) U70109HR2006PLC036416 Subsidiary 100.00 2(87)(ii) Capitol Services, Inc. 1675 S. State Street, Suite B, Dover, Delaware-19901 9th Floor, Maker Chambers IV, 222, Nariman Point, Mumbai – 400021 NA Subsidiary 100.00 2(87)(ii) U65910MH1986PLC041081 Subsidiary 100.00 2(87)(ii) Sr. No. 32 Name of Company/Bodies Corporate Reliance Eagleford Upstream LLC 33 34 35 36 37 38 39 40 41 42 Reliance Eminent Trading & Commercial Private Limited Reliance Energy and Project Development Limited Reliance Energy Generation and Distribution Limited Reliance Ethane Holding Pte Limited Reliance Exploration & Production DMCC Reliance Gas Pipelines Limited Reliance Global Business B.V. Reliance Global Commercial Limited Reliance Global Energy Services (Singapore) Pte Ltd Reliance Global Energy Services Limited 43 Model Economic Township Limited (Formerly known as Reliance Haryana SEZ Limited) Reliance Holding USA, Inc 44 45 Reliance Industrial Investments and Holdings Limited 234 Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Sr. No. 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 Name of Company/Bodies Corporate Reliance Industries (Middle East) DMCC Reliance Innovative Building Solutions Private Limited Reliance Jio Digital Services Private Limited Reliance Jio Global Resources LLC Reliance Jio Infocomm Limited Reliance Jio Infocomm Pte Limited Reliance Jio Infocomm UK Limited Reliance Jio Infocomm USA Inc Reliance Jio Infratel Private Limited Reliance Jio Media Private Limited Reliance Jio Messaging Services Private Limited Reliance Lifestyle Holdings Limited GenNext Holding Investments LLC (formerly known as Reliance Marcellus Holding, LLC) Reliance Marcellus II LLC Reliance Marcellus LLC Address of Company Unit No. 1801, Jumeirah, Business Centre 3, Plot No. Y 1, Jumeirah Lakes Towers, Dubai, U.A.E 4th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai-400 002 CIN/GLN NA Holding / Subsidiary / Associate Subsidiary % of Shares held* 100.00 Applicable section 2(87)(ii) U52100MH2007PTC174895 Subsidiary 100.00 2(87)(ii) 9th Floor, Maker Chambers IV, 222, Nariman Point, Mumbai-400021 5600, Tennyson Parkway, Suite 115, Plano, Texas-75024 9th Floor, Maker Chambers IV, 222, Nariman Point, Mumbai-400021 250 North Bridge Road, #16-01, Raffles City Tower, Singapore-179101 8th Floor, 105 Wigmore Street, London, United Kingdom, W1U 1Qy Capitol Corporate Services, Inc., 800 Brazos, Suite 400, Austin, Texas-78701. 9th Floor, Maker Chambers IV, 222, Nariman Point, Mumbai - 400021 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai - 400 021 9th Floor, Maker Chambers IV, 222, Nariman Point, Mumbai - 400021 5th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai – 400 002 Capitol Services, Inc. 1675 S. State Street, Suite B, Dover, Delaware -19901 Capitol Services, Inc. 1675 S. State Street, Suite B, Dover, Delaware -19901 Capitol Services, Inc. 1675 S. State Street, Suite B, Dover, Delaware -19901 U72900MH2013PTC239846 Subsidiary 100.00 2(87)(ii) NA Subsidiary 100.00 2(87)(ii) U72900MH2007PLC234712 Subsidiary 99.44 2(87)(ii) NA NA NA Subsidiary 100.00 2(87)(ii) Subsidiary 100.00 2(87)(ii) Subsidiary 100.00 2(87)(ii) U64200MH2013PTC239845 Subsidiary 100.00 2(87)(ii) U92100MH2013PTC239849 Subsidiary 100.00 2(87)(ii) U32204MH2013PTC239944 Subsidiary 76.56 2(87)(ii) U01403MH2007PLC172415 Subsidiary 100.00 2(87)(ii) NA Subsidiary 100.00 2(87)(ii) NA NA Subsidiary 100.00 2(87)(ii) Subsidiary 100.00 2(87)(ii) 235 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Address of Company CIN/GLN U65923MH2007PLC173923 Holding / Subsidiary / Associate Subsidiary % of Shares held* 100.00 Applicable section 2(87)(ii) Sr. No. 61 Name of Company/Bodies Corporate Reliance Payment Solutions Limited 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 Reliance Petro Marketing Limited Reliance Petroinvestments Limited Reliance Polyolefins Limited Reliance Progressive Traders Private Limited Reliance Prolific Commercial Private Limited Reliance Prolific Traders Private Limited Reliance Retail Finance Limited Reliance Retail Insurance Broking Limited Reliance Retail Limited Reliance Retail Ventures Limited Reliance Sibur Elastomers Private Limited Reliance Strategic Investments Limited Reliance Textiles Limited Reliance Trading Limited Reliance Universal Commercial Limited 236 5th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai – 400002 5th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai – 400002 9th Floor, Maker Chambers IV, 222, Nariman Point, Mumbai – 400021 9th Floor, Maker Chambers IV, 222 Nariman Point, Mumbai - 400021 Raman Rati Apartment, Near Ashapura Hotel, Saru Section Road, Jamnagar- 361002 4th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai-400002 Raman Rati Apartment, Near Ashapura Hotel, Saru Section Road, Jamnagar- 361002 9th Floor, Maker Chambers IV, 222, Nariman Point, Mumbai – 400021 3rd Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai-400002 3rd Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai -400002 4th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai – 400002 Admin Building, MTF Area, Village Sikka, Taluka & District Jamnagar – 361140 9th Floor, Maker Chambers IV, 222, Nariman Point, Mumbai – 400021 Plot No. 384/2, Near Abhishek Complex, Opp. Amola Chambers, C.G. Road, Ahmedabad – 380009 3rd Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai -400002 4th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai-400002 U74210MH1999PLC120377 Subsidiary 100.00 2(87)(ii) U72900MH1999PLC121039 Subsidiary 100.00 2(87)(ii) U99999MH1992PLC065847 Subsidiary 100.00 2(87)(ii) U51100GJ2005PTC046466 Subsidiary 100.00 2(87)(ii) U01122MH2006PTC161600 Subsidiary 100.00 2(87)(ii) U51100GJ2005PTC046464 Subsidiary 100.00 2(87)(ii) U17110MH2000PLC123731 Subsidiary 100.00 2(87)(ii) U67200MH2006PLC165651 Subsidiary 100.00 2(87)(ii) U01100MH1999PLC120563 Subsidiary 99.95 2(87)(ii) U51909MH2006PLC166166 Subsidiary 94.45 2(87)(ii) U25209GJ2012PTC068867 Subsidiary 74.90 2(87)(ii) U65990MH1999PLC120918 Subsidiary 100.00 2(87)(ii) U17291GJ2015PLC082664 Subsidiary 100.00 2(87)(ii)  U51909MH2006PLC166165 Subsidiary 100.00 2(87)(ii) U15300MH1999PLC123315 Subsidiary 100.00 2(87)(ii) Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Address of Company CIN/GLN U51100MH2005PLC190767 Holding / Subsidiary / Associate Subsidiary % of Shares held* 100.00 Applicable section 2(87)(ii) Sr. No. 77 78 79 80 81 82 83 84 85 Name of Company/Bodies Corporate Reliance Universal Enterprises Limited Reliance Universal Traders Private Limited Reliance USA Gas Marketing LLC Reliance Vantage Retail Limited Reliance Ventures Limited Reliance World Trade Private Limited Reliance- GrandOptical Private Limited RIL (Australia) Pty Ltd RIL USA, Inc 87 86 Strategic Manpower Solutions Limited Surela Investment & Trading Private Limited 88 Wave Land Developers Limited Aurora Algae Inc 89 90 91 92 93 Aurora Algae Pty Ltd Aurora Algae RGV LLC Reliance Jio Asiainfo Innovation Centre Limited RIL Exploration and Production (Myanmar) Company Limited 9th Floor, Maker Chambers IV, 222, Nariman Point, Mumbai – 400021 Raman Rati Apartment, Near Ashapura Hotel, Saru Section Road, Jamnagar- 361002 Capitol Services, Inc. 1675 S. State Street, Suite B, Dover, Delaware 19901 1st Floor, High Street,Shrimali Society, Near Navrangpura Railway Crossing, Navrangpura, Ahmedabad , Gujarat – 380009 9th Floor, Maker Chambers IV, 222, Nariman Point, Mumbai – 400021 Avdesh House, 3rd Floor, Pritam Nagar, 1st Slope, Ellisbridge, Ahmedabad - 380006 Dhobitalao, 5th Floor, Court House, Lokmanya Tilak Marg, Mumbai - 400002 Level 9, 81, Flinders Street, ADELAIDE, SA, 5000 Corporation Service Company, 2711, Centerville Road, Suite 400, Wilmington, Delaware, USA 3rd Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai – 400002 Swadeshi Complex, Tower 2, Swadeshi Mills Road, Chunabhatti (East), Mumbai – 400022 L. R. No. 1870 / II /236, The Pride Rock, No. 6, Donyo Sabuk Avenue, Off General Mathenge Drive, P.O. Box 69952- 00400, Nairobi 3325 Investment Boulevard, Hayword, California 94545, USA Level 3, 679 Murray Street, West Perth, WA 6005. 800 Brazos, Suite 400, Austin, Texas 78701, USA. 9th Floor, Maker Chambers IV, 222, Nariman Point, Mumbai – 400021 Level 8, Centre Point Towers, No. 65, Corner of Sule Pagoda Road & Merchant Street, Kyauktada Township, Yangon. U51100GJ2005PTC046467 Subsidiary 100.00 2(87)(ii) NA Subsidiary 100.00 2(87)(ii)  U51109GJ2007PLC049968 Subsidiary 100.00 2(87)(ii) U24120MH1999PLC121009 Subsidiary 100.00 2(87)(ii) U51100GJ1994PTC021590 Subsidiary 100.00 2(87)(ii) U51900MH2007PTC175638 Subsidiary 100.00 2(87)(ii) NA NA Subsidiary 100.00 2(87)(ii) Subsidiary 100.00 2(87)(ii) U74999MH2007PLC167704 Subsidiary 100.00 2(87)(ii) U65990MH1986PTC041221 Subsidiary 100.00 2(87)(ii) NA NA NA NA Subsidiary 100.00 2(87)(ii) Subsidiary 94.82 2(87)(ii) Subsidiary 100.00 2(87)(ii) Subsidiary 100.00 2(87)(ii) U74999MH2015PLC265376 Subsidiary 100.00 2(87)(ii) NA Subsidiary 100.00 2(87)(ii) 237 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Address of Company CIN/GLN Sr. No. 94 95 96 97 Name of Company/Bodies Corporate RP Chemicals (Malaysia) Sdn Bhd Reliance Holding Acquisition Corp Gujarat Chemicals Port Terminal Company Limited Indian Vaccines Corporation Limited Reliance Europe Limited Level 8, Symphony House, Pusat Dgangan Dana1, Jalan PJU 1A/46, 47301 Petaling Jaya, Selangor Darul Ehsan, Malaysia 3521 Pierce Street, San Francisco, California- 94123, USA. Po Lakhigam, Via Dahej, Tal. - Vagra, Dist.- Bharuch-392130 Village Nainwal, P.O. Manesar, Gurgaon, Haryana 98 99 Reliance Industrial Infrastructure Limited Devonshire House, 60, Goswell Road, London, EC1M 7AD NKM International House, 5th Floor, 178 Backbay Reclamation, Behind LIC Yogakshema Building, Babubhai Chinai Road, Mumbai - 400020 4th Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai – 400002 * Representing aggregate % of the shares held by the Company and/or its subsidiaries 100 Reliance LNG Limited Holding / Subsidiary / Associate Subsidiary % of Shares held* 100.00 Applicable section 2(87)(ii) Subsidiary 100.00 2(87)(ii) NA NA U99999GJ1992PLC017798 Associate 41.80 2(6) U74900HR1989GOI030516 Associate 33.33 2(6) NA Associate 50.00 2(6) L60300MH1988PLC049019 U23203MH2000PLC127885 Associate 45.43 2(6) Associate 45.00 2(6) ATTACHMENT C IV. SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY) i) CATEGORY-WISE SHARE HOLDING Category of Shareholders No. of Shares held at the beginning of the year (As on 01-04-2015) No. of Shares held at the end of the year (As on 31-03-2016) Demat Physical Total % of total shares Demat Physical Total % of total shares A 1 a) b) c) d) e) f ) (f-i) PROMOTERS Indian Individual / HUF Central Govt. State Govt(s) Bodies Corporate Banks / FI Any other Petroleum Trust (through Trustees for sole beneficiary- M/s Reliance Industrial Investments and Holdings Ltd.) Sub - Total (A) (1) 238 2,11,72,646 0 0 1,32,23,18,328 0 0.65 0.00 0.00 2,11,72,646 0 0 2,11,72,646 0 0 0 0 0 0 1,32,23,18,328 40.87 1,32,14,57,425 0 0 0.00 0 2,11,72,646 0 0 0.65 0 0.00 0 0.00 0 0 1,32,14,57,425 40.78 0.00 0 0 12,04,71,003 0 12,04,71,003 3.72 12,04,71,003 0 12,04,71,003 3.72 0.00 1,46,39,61,977 0 1,46,39,61,977 45.24 1,46,31,01,074 0 1,46,31,01,074 45.15 -0.09 % of change during the year 0.00 0.00 0.00 -0.09 0.00 Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Category of Shareholders No. of Shares held at the beginning of the year (As on 01-04-2015) No. of Shares held at the end of the year (As on 31-03-2016) Demat Physical Total % of total shares Demat Physical Total % of total shares % of change during the year 2 a) b) c) d) e) B 1 a) b) c) d) e) f ) g) h) 2 a) i) ii) b) I) II) Foreign NRIs – Individuals Other – Individuals Bodies Corporate Banks / FI Any other Sub - Total (A) (2) Total Shareholding of Promoter(A) = (A)(1) + (A)(2) PUBLIC SHAREHOLDING Institutions Mutual Funds Banks / FI Central Govt State Govt(s) Venture Capital Funds Insurance Companies FIIs Foreign Venture Capital Funds Others (i) (i-i) Qualified Foreign (i-ii) Investor Foreign Portfolio Investors (i-iii) UTI Sub - Total (B) (1) Non-institutions Bodies Corporate Indian Overseas Individuals Individual shareholders holding nominal share capital up to ₹ 1 lakh Individual shareholders holding nominal share capital in excess of ₹ 1 lakh Others (c) (c-i) Qualified Foreign Investor 0 0 0 0 0 0 1,46,39,61,977 0 0 0 0 0 0 0 0 0 0 0 0 0 1,46,39,61,977 45.24 1,46,31,01,074 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0 0 0 0 0.00 0 0 0.00 0 0 0.00 0 0 0.00 0 0 0.00 0 0 0 0.00 0 0 1,46,31,01,074 45.15 -0.09 0.00 0.00 0.00 0.00 0.00 0.00 3,94,097 7,48,16,598 2,17,107 39,85,589 21,92,664 16,62,549 2,072 0 5,848 2,31,027 0 93,600 0 32,30,49,648 53,81,61,767 0 2.32 7,52,10,695 0.13 42,02,696 0.12 38,55,213 0.01 95,672 0.00 0 9.98 32,30,55,496 53,83,92,794 16.64 0.00 0 3,58,143 9,20,86,152 2,05,733 26,53,326 25,09,543 15,91,409 2,072 0 5,848 2,30,547 0 92,700 0 31,61,72,197 40,06,73,227 0 2.85 9,24,44,295 0.09 28,59,059 0.13 41,00,952 0.00 94,772 0.00 0 9.76 31,61,78,045 40,09,03,774 12.37 0.00 0 0.53 -0.04 0.01 -0.01 0.00 -0.22 -4.27 0.00 0 7,02,36,908 0 0 0 0.00 0 7,02,36,908 2.17 23,22,33,755 0 0 0 0.00 0.00 23,22,33,755 7.17 5.00 0.01 1,01,25,36,774 28,16,609 1,01,53,53,383 31.38 1,04,64,20,900 26,95,360 1,04,91,16,260 32.38 3,03,909 3,01,608 3,01,608 3,03,909 0.01 0 0 0.00 1.00 10,60,92,979 14,14,814 36,186 1,81,958 10,75,07,793 2,18,144 3.32 0.01 10,35,90,457 13,84,131 36,186 1,81,778 10,49,74,588 2,17,964 3.24 0.01 -0.08 0.00 24,59,25,430 6,11,61,839 30,70,87,269 9.49 23,17,51,468 5,85,11,113 29,02,62,581 8.96 -0.53 2,56,05,173 5,68,704 2,61,73,877 0.81 2,52,74,947 4,77,050 2,57,51,997 0.79 -0.02 0 0 0 0.00 0 0 0 0.00 0.00 239 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 (c-ii) NRIs (c-iii) Foreign Portfolio Investors (c-iv) Foreign Nationals (c-v) Clearing Member (c-vi) Shares held by Subsidiary Companies on which no voting rights are exercisable (c-vii) Unclaimed Shares Suspense Account- Regulation 39 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)1 (c-viii) Trusts (c-ix) HUF Sub - Total (B) (2) Total Public Shareholding (B) = (B)(1) + (B)(2) SHARES HELD BY CUSTODIAN FOR GDRs & ADRs C Category of Shareholders No. of Shares held at the beginning of the year (As on 01-04-2015) No. of Shares held at the end of the year (As on 31-03-2016) Demat Physical Total % of total shares Demat Physical Total % of total shares % of change during the year 1,51,90,196 46,89,209 0 0 1,98,79,405 0 12,089 24,44,850 17,18,83,624 0 0 0 12,089 24,44,850 17,18,83,624 0.61 0.00 0.00 0.08 5.31 1,44,60,872 44,49,822 0 421 1,89,10,694 421 10,886 23,48,913 17,18,83,624 10,886 23,48,913 17,18,83,624 0.58 0.00 0.00 0.08 5.30 -0.03 0.00 0.00 0.00 -0.01 61,38,914 0 61,38,914 0.19 60,47,599 60,47,599 0.19 0.00 0 0 0 0 43,86,121 61,83,219 24,791 29,119 44,10,912 62,12,338 0.14 0.19 58,91,024 55,61,195 20,950 26,995 59,11,974 55,88,190 0.18 0.17 58,40,44,553 6,79,24,662 65,19,69,215 20.15 56,70,03,184 6,49,06,247 63,19,09,431 19.50 1,59,65,81,327 7,07,41,271 166,73,22,598 51.53 1,61,34,24,084 6,76,01,607 1,68,10,25,691 51.88 0.04 -0.02 -0.65 0.35 10,43,86,490 17,700 10,44,04,190 3.23 9,62,31,856 17,700 9,62,49,556 2.97 -0.26 Grand Total (A+B+C) 2 3,16,49,29,794 7,07,58,971 3,23,56,88,765 100.00 3,17,27,57,014 6,76,19,307 3,24,03,76,321 100.00 0.00 1 The voting rights on these shares shall remain frozen till the rightful owner claims the shares [Refer to Regulation 39 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)]. 2 includes 307 equity shares of ₹ 10 each on which calls are in arrears to be paid by the shareholders who are not Promoters. 240 Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. ATTACHMENT D IV. SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY) ii) SHAREHOLDING OF PROMOTERS Shareholder’s Name Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Kankhal Trading LLP Bhuvanesh Enterprises LLP Ajitesh Enterprises LLP Badri Commercials LLP Abhayaprada Enterprises LLP Trilokesh Commercials LLP Petroleum Trust (through Trustees for sole beneficiary-M/s Reliance Industrial Investments and Holdings Ltd.) Farm Enterprises Limited Taran Enterprises LLP Pitambar Enterprises LLP Adisesh Enterprises LLP Rishikesh Enterprises LLP Pavana Enterprises LLP Nagothane Agrofarms Private Limited K D Ambani Shreeji Comtrade LLP Shrikrishna Tradecom LLP Kamalakar Enterprises LLP M D Ambani Nita Ambani Isha M Ambani Akash M Ambani Reliance Welfare Association Narahari Enterprises LLP Reliance Industrial Infrastructure Limited Anant M Ambani Reliance Industries Holding Private Ltd Exotic Officeinfra Private Limited (Earlier known as "Exotic Investments and Trading Company Pvt Ltd") Carat Holdings and Trading Co Pvt Ltd Neutron Enterprises Private Limited Futura Commercials Private Limited Reliance Consultancy Services Private Limited Chakradev Enterprises LLP Chakradhar Commercials LLP No. of Shares Shareholding at the beginning of the year (As on 01-04-2015) % of Shares % of Pledged / total encumbered Shares to total of the shares * company 0.00 4.59 0.00 4.16 0.00 3.93 0.00 3.93 0.00 3.85 0.00 3.85 0.00 3.72 14,84,90,952 13,46,16,811 12,70,41,799 12,70,41,799 12,45,14,168 12,45,13,168 12,04,71,003 No. of Shares Shareholding at the end of the year (As on 31-03-2016) % of Shares % of Pledged / total encumbered Shares to total of the shares * company 0.00 4.43 0.00 4.15 0.00 3.92 0.00 3.92 0.00 3.84 0.00 3.84 0.00 3.72 14,34,65,049 13,46,16,811 12,70,41,799 12,70,41,799 12,45,14,168 12,45,13,168 12,04,71,003 11,89,78,113 10,63,73,069 10,49,00,070 8,10,99,093 6,04,09,418 3,56,73,400 56,00,000 73,31,074 66,77,500 66,77,500 63,70,016 36,15,846 33,98,146 33,64,390 33,63,190 25,05,468 6,16,840 1,72,000 1,00,000 0 12,688 5,100 861 845 200 100 100 3.68 3.29 3.24 2.51 1.87 1.10 0.17 0.23 0.21 0.21 0.20 0.11 0.11 0.10 0.10 0.08 0.02 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11,89,78,113 10,63,73,069 10,49,00,070 8,10,99,093 6,04,09,418 3,56,73,400 97,65,000 73,31,074 66,77,500 66,77,500 63,70,016 36,15,846 33,98,146 33,64,390 33,63,190 25,05,468 6,16,840 1,72,000 1,00,000 25,550 12,688 5,100 861 845 200 100 100 3.67 3.28 3.24 2.51 1.87 1.10 0.30 0.23 0.21 0.21 0.20 0.11 0.11 0.10 0.10 0.08 0.02 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 % change in share holding during the year -0.16 -0.01 -0.01 -0.01 -0.01 -0.01 0.00 -0.01 0.00 0.00 0.00 0.00 0.00 0.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 241 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 Shareholder’s Name Sr. No. 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 Chakresh Enterprises LLP Chhatrabhuj Enterprises LLP Devarshi Commercials LLP Harinarayan Enterprises LLP Janardan Commercials LLP Karuna Commercials LLP Samarjit Enterprises LLP Shripal Enterprises LLP Srichakra Commercials LLP Svar Enterprises LLP Synergy Synthetics Private Limited Tattvam Enterprises LLP Vasuprada Enterprises LLP Vishatan Enterprises LLP Anuprabha Commercials Private Limited Elakshi Commercials Private Limited Manuvidya Commercials Private Limited Nirahankara Commercials Private Limited Pinakin Commercials Private Limited Vandhya Commercials Private Limited Reliance Life Sciences Private Limited Reliance Ports and Terminals Limited Reliance Utilities and Power Private Limited Reliance Utilities Private Limited Saumya Finance and Leasing Company Private Limited (Amalgamated with Reliance Industries Holding Private Limited w.e.f. 30.09.2015) Ekansha Enterprise Private Limited (Amalgamated with Reliance Industries Holding Private Limited w.e.f. 30.09.2015) Amudha Venture Capital Private Limited (Amalgamated with Reliance Industries Holding Private Limited w.e.f. 30.09.2015) Relcom Venture Capital Private Limited (Amalgamated with Reliance Industries Holding Private Limited w.e.f. 30.09.2015) Deccan Finvest Private Limited (Amalgamated with Reliance Industries Holding Private Limited w.e.f. 30.09.2015) Total No. of Shares Shareholding at the beginning of the year (As on 01-04-2015) % of Shares % of Pledged / total encumbered Shares to total of the shares * company 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100 100 100 100 100 100 100 100 100 100 100 100 100 100 50 50 50 50 50 50 0 0 0 0 21,200 No. of Shares Shareholding at the end of the year (As on 31-03-2016) % of Shares % of Pledged / total encumbered Shares to total of the shares * company 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100 100 100 100 100 100 100 100 100 100 100 100 100 100 50 50 50 50 50 50 0 0 0 0 0 % change in share holding during the year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,550 0.00 0.00 900 0.00 0.00 600 0.00 0.00 300 0.00 0.00 0 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,46,39,61,977 45.24 0.00 1,46,31,01,074 45.15 0.00 -0.09 (*) The term “encumbrance” has the same meaning as assigned to it in regulation 28(3) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Shareholders listed in Sr No. 1 to 58 are promoters as per disclosure received under regulation 30(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, as on March 31, 2016. 242 Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.  ATTACHMENT E IV. SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY) iii) CHANGE IN PROMOTERS’ SHAREHOLDING Sr. No. At the beginning of the year Date wise Increase / Decrease in Promoters Share holding during the year specifying the reasons for increase / decrease (e.g. allotment / transfer / bonus/ sweat equity, etc.) At the end of the year Shareholding at the beginning of the year (As on 01-04-2015) No. of shares % of total shares of the company 45.24 1,46,39,61,977 Cumulative Shareholding during the year (01-04-2015 to 31-03-2016) No. of shares % of total shares of the company 1,46,31,01,074 45.15 Note-I NOTE-I DETAILS OF INCREASE AND DECREASE IN PROMOTERS’ SHAREHOLDING Name Sr. No. Shareholding Date No. of Shares at the beginning (01-04-15)/ end of the year (31-03-16) 14,84,90,952 % of total shares of the Company 4.59 1-Apr-2015 Kankhal Trading LLP Increase/ Decrease in share- holding Reason Cumulative Shareholding during the year (01-04-15 to 31-03-16) % of total shares of the Company No. of Shares 14,34,65,049 4.43 31-Mar-2016   18-Sep-2015 -50,25,903 Transfer (Inter se transfer) 14,34,65,049   14,34,65,049 Farm Enterprises Limited 11,89,78,113 3.68 1-Apr-2015   18-Sep-2015   31-Mar-2016 8,60,903 -8,60,903 Transfer (Inter se transfer) 11,98,39,016 11,89,78,113 Off-market (Consequent upon Capital Reduction) 11,89,78,113 3.67 31-Mar-2016   11,89,78,113 Nagothane Agrofarms Private Limited Reliance Industries Holding Private Ltd Saumya Finance and Leasing Company Private Limited 56,00,000 97,65,000 0.17 1-Apr-2015   18-Sep-2015 0.30 31-Mar-2016 0 25,550 21,200 0 0.00 1-Apr-2015 9-Oct-2015 0.00 31-Mar-2016 0.00 1-Apr-2015 9-Oct-2015 0.00 31-Mar-2016 41,65,000 Transfer (Inter se transfer) 25,550 Transfer (Amalgamation) -21,200 Transfer* 97,65,000 97,65,000 25,550 25,550 0 0 1 2 3 4 5 4.43 4.43 3.70 3.67 3.67 0.30 0.30 0.00 0.00 0.00 0.00 243 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254                                                                                                                                           Name Sr. No. Shareholding Date No. of Shares at the beginning (01-04-15)/ end of the year (31-03-16) 2,550 0 900 0 600 0 300 0 % of total shares of the Company 0.00 1-Apr-2015 9-Oct-2015 0.00 31-Mar-2016 0.00 1-Apr-2015 9-Oct-2015 0.00 31-Mar-2016 0.00 1-Apr-2015 9-Oct-2015 0.00 31-Mar-2016 0.00 1-Apr-2015 9-Oct-2015 0.00 31-Mar-2016 6 7 8 9 Ekansha Enterprise Private Limited Amudha Venture Capital Private Limited Relcom Venture Capital Private Limited Deccan Finvest Private Limited Increase/ Decrease in share- holding Reason Cumulative Shareholding during the year (01-04-15 to 31-03-16) % of total shares of the Company No. of Shares -2,550 Transfer* -900 Transfer * -600 Transfer* -300 Transfer* 0 0 0 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 * Amalgamated with Reliance Industries Holding Private Limited ATTACHMENT F IV. SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY) iv) SHAREHOLDING PATTERN OF TOP TEN SHAREHOLDERS (OTHER THAN DIRECTORS, PROMOTERS AND HOLDERS OF GDRS AND ADRS) Shareholding Sr. No. Name 1 Life Insurance Corporation of India No. of Shares at the beginning (01-04-15)/ end of the year (31-03-16) 29,69,44,782 Date Increase/ Decrease in share- holding Reason % of total shares of the Company 9.18 1-Apr-2015 Cumulative Shareholding during the year (01-04-15 to 31-03-16) No. of Shares % of total shares of the Company 26-Jun-2015 30-Jun-2015 3-Jul-2015 10-Jul-2015 17-Jul-2015 24-Jul-2015 31-Jul-2015 7-Aug-2015 4-Sep-2015 -20,87,500 -83,997 -12,58,453 -12,85,210 -28,04,288 -16,14,351 -6,07,130 -5,74,949 20,71,687 Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer 29,48,57,282 29,47,73,285 29,35,14,832 29,22,29,622 28,94,25,334 28,78,10,983 28,72,03,853 28,66,28,904 28,87,00,591 9.10 9.10 9.06 9.02 8.93 8.88 8.86 8.85 8.91 244 Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.                                                                                                                                                                                                        Sr. No. Name Shareholding No. of Shares at the beginning (01-04-15)/ end of the year (31-03-16) % of total shares of the Company 29,26,02,727 9.03 Date Increase/ Decrease in share- holding 11-Sep-2015 18-Sep-2015 25-Sep-2015 30-Sep-2015 2-Oct-2015 31-Dec-2015 1-Jan-2016 8-Jan-2016 15-Jan-2016 22-Jan-2016 5-Feb-2016 18-Mar-2016 25-Mar-2016 31-Mar-2016 18,75,495 15,94,524 8,07,669 26,60,082 1,24,204 -9,72,643 -1,89,286 -7,47,257 -6,90,000 -2,92,012 -5,000 -25,000 -10,000 -2,28,640 Cumulative Shareholding during the year (01-04-15 to 31-03-16) No. of Shares 29,05,76,086 29,21,70,610 29,29,78,279 29,56,38,361 29,57,62,565 29,47,89,922 29,46,00,636 29,38,53,379 29,31,63,379 29,28,71,367 29,28,66,367 29,28,41,367 29,28,31,367 29,26,02,727 % of total shares of the Company 8.97 9.02 9.04 9.12 9.13 9.10 9.09 9.07 9.05 9.04 9.04 9.04 9.04 9.03 Reason Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer 2 Reliance Chemicals Limited 6,22,39,998 1.92 1-Apr-2015 6,22,39,998 1.92 31-Mar-2016 3 Reliance Polyolefins Limited 6,11,94,924 1.89 1-Apr-2015 6,11,94,924 1.89 31-Mar-2016 0 0 Nil movement during the year Nil movement during the year 6,22,39,998 1.92 6,11,94,924 1.89 4 Europacific Growth Fund 2,22,31,800 0.69 5 Government of Singapore 2,66,37,648 4,84,70,015 1.50 0.82 1-Apr-2015 26-Jun-2015 30-Jun-2015 3-Jul-2015 10-Jul-2015 17-Jul-2015 31-Dec-2015 8-Jan-2016 15-Jan-2016 26-Feb-2016 4-Mar-2016 11-Mar-2016 18-Mar-2016 25-Mar-2016 31-Mar-2016 1-Apr-2015 10-Apr-2015 24-Apr-2015 1-May-2015 29,08,018 9,71,641 20,49,974 25,46,585 11,93,782 3,66,852 36,33,148 6,40,000 30,77,187 50,71,511 23,98,885 6,40,383 5,03,467 2,36,782 Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer 2,51,39,818 2,61,11,459 2,81,61,433 3,07,08,018 3,19,01,800 3,22,68,652 3,59,01,800 3,65,41,800 3,96,18,987 4,46,90,498 4,70,89,383 4,77,29,766 4,82,33,233 4,84,70,015 2,01,151 -15,897 -5,26,350 Transfer Transfer Transfer 2,68,38,799 2,68,22,902 2,62,96,552 0.78 0.81 0.87 0.95 0.98 1.00 1.11 1.13 1.22 1.38 1.45 1.47 1.49 1.50 0.83 0.83 0.81 245 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254                                                                                                                                                                                                                                                                                                                                                                                    Cumulative Shareholding during the year (01-04-15 to 31-03-16) No. of Shares % of total shares of the Company Sr. No. Name Shareholding No. of Shares at the beginning (01-04-15)/ end of the year (31-03-16) % of total shares of the Company Date Increase/ Decrease in share- holding 8-May-2015 5-Jun-2015 12-Jun-2015 3-Jul-2015 10-Jul-2015 17-Jul-2015 24-Jul-2015 31-Jul-2015 7-Aug-2015 21-Aug-2015 28-Aug-2015 4-Sep-2015 11-Sep-2015 2-Oct-2015 9-Oct-2015 16-Oct-2015 23-Oct-2015 30-Oct-2015 6-Nov-2015 13-Nov-2015 20-Nov-2015 27-Nov-2015 4-Dec-2015 11-Dec-2015 18-Dec-2015 31-Dec-2015 8-Jan-2016 15-Jan-2016 22-Jan-2016 29-Jan-2016 5-Feb-2016 12-Feb-2016 19-Feb-2016 26-Feb-2016 4-Mar-2016 11-Mar-2016 18-Mar-2016 31-Mar-2016 -3,77,634 51,316 -26,254 4,78,126 3,10,330 17,767 1,40,708 5,27,436 4,65,947 -58,760 9,49,404 13,88,532 -5,25,204 2,65,825 9,05,394 9,636 4,26,031 -2,63,598 -43,716 8,86,881 -31,169 3,03,429 -2,29,671 -1,49,212 62,547 35,634 3,27,859 1,01,117 -1,09,889 6,67,768 13,83,848 3,29,075 5,82,100 13,034 -1,78,372 -12,844 -28,741 1,44,690 3,50,35,922 1.08 Reason Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer 2,59,18,918 2,59,70,234 2,59,43,980 2,64,22,106 2,67,32,436 2,67,50,203 2,68,90,911 2,74,18,347 2,78,84,294 2,78,25,534 2,87,74,938 3,01,63,470 2,96,38,266 2,99,04,091 3,08,09,485 3,08,19,121 3,12,45,152 3,09,81,554 3,09,37,838 3,18,24,719 3,17,93,550 3,20,96,979 3,18,67,308 3,17,18,096 3,17,80,643 3,18,16,277 3,21,44,136 3,22,45,253 3,21,35,364 3,28,03,132 3,41,86,980 3,45,16,055 3,50,98,155 3,51,11,189 3,49,32,817 3,49,19,973 3,48,91,232 3,50,35,922 6 Abu Dhabi Investment Authority 4,11,05,837 1.27 1-Apr-2015 10-Apr-2015 17-Apr-2015 24-Apr-2015 1-May-2015 4,23,510 3,00,000 -1,12,517 -6,04,500 Transfer Transfer Transfer Transfer 4,15,29,347 4,18,29,347 4,17,16,830 4,11,12,330 246 0.80 0.80 0.80 0.82 0.82 0.83 0.83 0.85 0.86 0.86 0.89 0.93 0.91 0.92 0.95 0.95 0.96 0.96 0.95 0.98 0.98 0.99 0.98 0.98 0.98 0.98 0.99 1.00 0.99 1.01 1.06 1.07 1.08 1.08 1.08 1.08 1.08 1.08 1.28 1.29 1.29 1.27 Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.                                                                                                                                                                                                                                                                                                                                                                      Sr. No. Name Shareholding No. of Shares at the beginning (01-04-15)/ end of the year (31-03-16) % of total shares of the Company 3,46,91,237 1.07 Date Increase/ Decrease in share- holding 15-May-2015 22-May-2015 29-May-2015 5-Jun-2015 12-Jun-2015 19-Jun-2015 26-Jun-2015 30-Jun-2015 3-Jul-2015 24-Jul-2015 31-Jul-2015 14-Aug-2015 21-Aug-2015 28-Aug-2015 4-Sep-2015 11-Sep-2015 25-Sep-2015 23-Oct-2015 30-Oct-2015 20-Nov-2015 27-Nov-2015 4-Dec-2015 15-Jan-2016 22-Jan-2016 29-Jan-2016 5-Feb-2016 12-Feb-2016 19-Feb-2016 26-Feb-2016 4-Mar-2016 11-Mar-2016 18-Mar-2016 25-Mar-2016 31-Mar-2016 66,063 -2,52,600 -15,12,378 -6,55,257 -81,371 13,000 5,735 -2,500 1,71,000 42,850 -1,50,692 24,657 -57,621 -6,07,832 -7,32,677 -3,09,693 -4,72,248 6,56,000 2,29,900 -82,804 -2,76,897 -5,00,572 -3,51,412 -18,612 -43,232 -2,58,941 -27,636 -1,51,500 -5,10,228 -5,01,097 -21,041 23,943 29,600 -1,05,000 Reason Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Cumulative Shareholding during the year (01-04-15 to 31-03-16) No. of Shares % of total shares of the Company 4,11,78,393 4,09,25,793 3,94,13,415 3,87,58,158 3,86,76,787 3,86,89,787 3,86,95,522 3,86,93,022 3,88,64,022 3,89,06,872 3,87,56,180 3,87,80,837 3,87,23,216 3,81,15,384 3,73,82,707 3,70,73,014 3,66,00,766 3,72,56,766 3,74,86,666 3,74,03,862 3,71,26,965 3,66,26,393 3,62,74,981 3,62,56,369 3,62,13,137 3,59,54,196 3,59,26,560 3,57,75,060 3,52,64,832 3,47,63,735 3,47,42,694 3,47,66,637 3,47,96,237 3,46,91,237 1.27 1.26 1.22 1.20 1.19 1.19 1.19 1.19 1.20 1.20 1.20 1.20 1.20 1.18 1.15 1.14 1.13 1.15 1.16 1.15 1.15 1.13 1.12 1.12 1.12 1.11 1.11 1.10 1.09 1.07 1.07 1.07 1.07 1.07 7 8 Reliance Aromatics and Petrochemicals Limited 2,98,89,898 0.92 1-Apr-2015 0 2,98,89,898 0.92 31-Mar-2016 2,85,71,829 0.88 1-Apr-2015 Vanguard Emerging Markets Stock Index Fund, A Series of Vanguard International Equity Inde X Fund Nil movement during the year 2,98,89,898 0.92 247 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254                                                                                                                                                                                                                                                                                                                                              Sr. No. Name Shareholding No. of Shares at the beginning (01-04-15)/ end of the year (31-03-16) % of total shares of the Company Date Increase/ Decrease in share- holding 1-May-2015 8-May-2015 3-Jul-2015 24-Jul-2015 14-Aug-2015 21-Aug-2015 28-Aug-2015 4-Sep-2015 11-Sep-2015 25-Sep-2015 30-Sep-2015 30-Oct-2015 6-Nov-2015 20-Nov-2015 27-Nov-2015 4-Dec-2015 18-Dec-2015 25-Dec-2015 31-Dec-2015 15-Jan-2016 22-Jan-2016 29-Jan-2016 5-Feb-2016 12-Feb-2016 26-Feb-2016 4-Mar-2016 11-Mar-2016 18-Mar-2016 25-Mar-2016 31-Mar-2016 2,43,06,993 0.75 9 Dimensional Emerging Markets Value Fund 2,08,02,961 0.64 1-Apr-2015 10-Apr-2015 17-Apr-2015 24-Apr-2015 1-May-2015 15-May-2015 22-May-2015 29-May-2015 26-Jun-2015 3-Jul-2015 2-Oct-2015 30-Oct-2015 6-Nov-2015 13-Nov-2015 248 81,598 92,725 1,78,592 61,622 -92,725 -2,22,540 -4,33,953 -5,93,440 -3,11,556 -81,598 -5,89,625 -35,995 -11,587 -1,12,650 -26,285 -96,127 -2,19,567 -2,71,702 -1,35,964 -1,66,453 -1,86,040 -1,53,223 -3,48,203 -1,18,335 -1,70,963 -1,84,326 66,140 -69,641 -1,13,015 1,08,786 13,072 28,830 99,027 1,42,062 95,973 51,923 -1,42,783 -47,656 -1,49,338 -98,635 -1,80,278 -1,15,451 Cumulative Shareholding during the year (01-04-15 to 31-03-16) No. of Shares % of total shares of the Company 2,86,53,427 2,87,46,152 2,89,24,744 2,89,86,366 2,88,93,641 2,86,71,101 2,82,37,148 2,76,43,708 2,73,32,152 2,72,50,554 2,66,60,929 2,66,24,934 2,66,13,347 2,65,00,697 2,64,74,412 2,63,78,285 2,61,58,718 2,58,87,016 2,57,51,052 2,55,84,599 2,53,98,559 252,45,336 2,48,97,133 2,47,78,798 2,46,07,835 2,44,23,509 2,44,89,649 2,44,20,008 2,43,06,993 2,43,06,993 2,09,11,747 2,09,24,819 2,09,53,649 2,10,52,676 2,11,94,738 2,12,90,711 2,13,42,634 2,11,99,851 2,11,52,195 2,10,02,857 2,09,04,222 2,07,23,944 2,06,08,493 0.88 0.89 0.89 0.89 0.89 0.88 0.87 0.85 0.84 0.84 0.82 0.82 0.82 0.82 0.82 0.81 0.81 0.80 0.79 0.79 0.78 0.78 0.77 0.76 0.76 0.75 0.76 0.75 0.75 0.75 0.65 0.65 0.65 0.65 0.65 0.66 0.66 0.65 0.65 0.65 0.65 0.64 0.64 Reason Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.                                                                                                                                                                                                                                                                                                                                                                                  Sr. No. Name Shareholding No. of Shares at the beginning (01-04-15)/ end of the year (31-03-16) % of total shares of the Company Date Increase/ Decrease in share- holding Reason Cumulative Shareholding during the year (01-04-15 to 31-03-16) No. of Shares % of total shares of the Company 20-Nov-2015 27-Nov-2015 18-Dec-2015 31-Mar-2016 -67,597 -2,248 -1,30,974 Transfer Transfer Transfer 2,04,07,674 0.63 10 ICICI Prudential Life Insurance Company Ltd * 1,71,81,639 0.53 1-Apr-2015 21-Aug-2015 28-Aug-2015 4-Sep-2015 11-Sep-2015 18-Sep-2015 25-Sep-2015 30-Sep-2015 2-Oct-2015 9-Oct-2015 16-Oct-2015 23-Oct-2015 30-Oct-2015 6-Nov-2015 13-Nov-2015 20-Nov-2015 27-Nov-2015 4-Dec-2015 11-Dec-2015 18-Dec-2015 25-Dec-2015 31-Dec-2015 8-Jan-2016 15-Jan-2016 22-Jan-2016 29-Jan-2016 5-Feb-2016 12-Feb-2016 19-Feb-2016 26-Feb-2016 4-Mar-2016 11-Mar-2016 18-Mar-2016 25-Mar-2016 31-Mar-2016 -6,44,299 11,88,236 41,137 84,970 -85,440 1,74,398 -1,00,410 74,625 2,00,877 -70,137 26,329 53,874 -41,537 94,739 -39,400 1,33,918 1,45,629 23,826 82,120 -13,499 1,16,008 -1,02,400 37,584 -1,32,437 -63,596 -4,27,271 8,877 1,64,002 36,768 -7,85,893 1,19,612 -5,469 -69,766 55,613 Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer 1,74,63,227 0.54 2,05,40,896 2,05,38,648 2,04,07,674 2,04,07,674 1,65,37,340 1,77,25,576 1,77,66,713 1,78,51,683 1,77,66,243 1,79,40,641 1,78,40,231 1,79,14,856 1,81,15,733 1,80,45,596 1,80,71,925 1,81,25,799 1,80,84,262 1,81,79,001 1,81,39,601 1,82,73,519 1,84,19,148 1,84,42,974 1,85,25,094 1,85,11,595 1,86,27,603 1,85,25,203 1,85,62,787 1,84,30,350 1,83,66,754 1,79,39,483 1,79,48,360 1,81,12,362 1,81,49,130 1,73,63,237 1,74,82,849 1,74,77,380 1,74,07,614 1,74,63,227 0.63 0.63 0.63 0.63 0.51 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.57 0.55 0.55 0.56 0.56 0.54 0.54 0.54 0.54 0.54 11 Franklin Templeton Investment Funds # 2,48,53,100 0.77 1-Apr-2015 17-Jul-2015 21-Aug-2015 1,12,200 -9,40,327 Transfer Transfer 2,49,65,300 2,40,24,973 0.77 0.74 249 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254                                                                                                                                                                                                                                                                                                                                                                                Sr. No. Name Shareholding No. of Shares at the beginning (01-04-15)/ end of the year (31-03-16) % of total shares of the Company 47,52,542 0.15 Date Increase/ Decrease in share- holding 28-Aug-2015 4-Sep-2015 25-Sep-2015 30-Sep-2015 2-Oct-2015 9-Oct-2015 20-Nov-2015 31-Dec-2015 8-Jan-2016 22-Jan-2016 5-Feb-2016 31-Mar-2016 -67,10,773 -30,74,900 -53,06,300 -40,23,958 -1,49,700 -1,23,100 -8,99,400 3,47,300 -2,800 2,51,400 4,19,800 Reason Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer Cumulative Shareholding during the year (01-04-15 to 31-03-16) No. of Shares % of total shares of the Company 1,73,14,200 1,42,39,300 89,33,000 49,09,042 47,59,342 46,36,242 37,36,842 40,84,142 40,81,342 43,32,742 47,52,542 47,52,542 0.53 0.44 0.28 0.15 0.15 0.14 0.12 0.13 0.13 0.13 0.15 0.15 * # Not in the list of Top 10 shareholders as on 01-04-2015. The same has been reflected above since the shareholder was one of the Top 10 shareholders as on 31-03-2016. Ceased to be in the list of Top 10 shareholders as on 31-03-2016. The same is reflected above since the shareholder was one of the Top 10 shareholder as on 01-04-2015. ATTACHMENT G IV. SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY) v) SHAREHOLDING OF DIRECTORS AND KEY MANAGERIAL PERSONNEL Name Sr. No. Shareholding Date % of total shares of the Company No. of Shares at the beginning (01-04-15) / end of the year (31-03-16) Increase/ Decrease in shareholding Reason Cumulative Shareholding during the year (01-04-15 to 31-03-16) No. of Shares % of total shares of the Company A 1 2 DIRECTORS: Mukesh D. Ambani Chairman and Managing Director 36,15,846 0.11 1-Apr-2015 0 Nil movement during the year 36,15,846 0.11 31-Mar-2016 36,15,846 0.11 Nikhil R. Meswani Executive Director 4,18,374 0.01 1-Apr-2015 0 Nil movement during the year 4,18,374 0.01 31-Mar-2016 4,18,374 0.01 250 Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.                                                                                                                                                                                            Name Sr. No. Shareholding Date % of total shares of the Company No. of Shares at the beginning (01-04-15) / end of the year (31-03-16) 3,51,886 Hital R. Meswani Executive Director Increase/ Decrease in shareholding Reason Cumulative Shareholding during the year (01-04-15 to 31-03-16) No. of Shares % of total shares of the Company 0.01 1-Apr-2015 0 Nil movement during the year 3,51,886 0.01 31-Mar-2016 3,51,886 0.01 Nita M. Ambani Non-Executive Director 33,98,146 0.11 1-Apr-2015 0 Nil movement during the year 33,98,146 0.11 31-Mar-2016 33,98,146 0.11 P. M.S. Prasad Executive Director 1,36,666 0.00 1-Apr-2015 0 Nil movement during the year 1,36,666 0.00 31-Mar-2016 1,36,666 0.00 Pawan Kumar Kapil Executive Director 8,000 0.00 25,000 0.00 1-Apr-2015 14-Jul-2015 01-Sep-2015 13-Oct-2015 22-Mar-2016 31-Mar-2016 3,30,000 0.01 1-Apr-2015 1,000 ESOS Allotment 2,000 ESOS Allotment 9,000 ESOS Allotment 6,500 ESOS Allotment -1,500  Transfer 0 Nil movement during the year 9,000 11,000 20,000 26,500 25,000 0.00 0.00 0.00 0.00 0.00 Mansingh L. Bhakta Independent Director Yogendra P. Trivedi Independent Director Dr. Dharam Vir Kapur Independent Director 3,30,000 0.01 31-Mar-2016 3,30,000 0.01 27,984 0.00 1-Apr-2015 0 Nil movement during the year  27,984 0.00 31-Mar-2016 27,984 0.00 13,544 0.00 1-Apr-2015 0 Nil movement during the year 13,544 0.00 31-Mar-2016 13,544 0.00 3 4 5 6 7 8 9 10 Prof. Ashok Misra Independent Director 2,300 0.00 1-Apr-2015 0 Nil movement during the year 2,300 0.00 31-Mar-2016 2,300 0.00 11 Prof. Dipak C. Jain Independent Director 0 0 0.00 1-Apr-2015 0.00 31-Mar-2016 0 Nil Holding/ movement during the year 0 0.00 251 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254                                                                                                                                                                                                                                                                                                                                              Name Sr. No. Shareholding Date % of total shares of the Company Increase/ Decrease in shareholding Reason Cumulative Shareholding during the year (01-04-15 to 31-03-16) No. of Shares % of total shares of the Company No. of Shares at the beginning (01-04-15) / end of the year (31-03-16) 0 0 0 0 0 0 12 Dr. Raghunath A. Mashelkar Independent Director 13 Adil Zainulbhai Independent Director 14 B 1 Raminder Singh Gujral Independent Director (Appointed as a Director w.e.f. 12-06-2015) KEY MANAGERIAL PERSONNEL (KMP'S): K. Sethuraman Group Company Secretary and Chief Compliance Officer 2 Alok Agarwal Chief Financial Officer 0.00 1-Apr-2015 0.00 31-Mar-2016 0.00 1-Apr-2015 0.00 31-Mar-2016 0.00 12-Jun-2015 0.00 31-Mar-2016 0 0 0 Nil Holding/ movement during the year Nil Holding/ movement during the year Nil Holding/ movement during the year 0 0 0 0.00 0.00 0.00 40,000 0.00 54,500 1,40,626 0.00 0.00 2,17,126 0.01 1-Apr-2015 14-Apr-2015 4-Aug-2015 1-Mar-2016 31-Mar-2016 1-Apr-2015 14-Apr-2015 28-Apr-2015 14-Jul-2015 4-Aug-2015 1-Sep-2015 13-Oct-2015 31-Mar-2016 1,000 ESOS Allotment 41,000 0.00 9,000 ESOS Allotment 4,500 ESOS Allotment 9,000 ESOS Allotment 9,000 ESOS Allotment 36,000 ESOS Allotment 9,000 ESOS Allotment 7,500 ESOS Allotment 6,000 ESOS Allotment 50,000 54,500 54,500 1,49,626 1,58,626 1,94,626 2,03,626 2,11,126 2,17,126 2,17,126 0.00 0.00 0.00 0.00 0.00 0.01 0.01 0.01 0.01 0.01 3 Srikanth Venkatachari Joint Chief Financial Officer 99,180 0.00 1-Apr-2015   Nil movement during the year 99,180 0.00 31-Mar-2016 99,180 0.00 252 Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.                                                                                                                                                                                                                                                                                          ATTACHMENT H V. INDEBTEDNESS INDEBTEDNESS OF THE COMPANY INCLUDING INTEREST OUTSTANDING/ACCRUED BUT NOT DUE FOR PAYMENT Principal Amount Interest due but not paid Interest accrued but not due Indebtedness at the beginning of the financial year (01.04.2015) i) ii) iii) TOTAL (i+ii+iii) Change in Indebtedness during the financial year Addition Reduction Exchange Difference Net Change Indebtedness at the end of the financial year (31.03.2016) i) ii) iii) TOTAL (i+ii+iii) Principal Amount Interest due but not paid Interest accrued but not due Secured Loans  excluding deposits Unsecured  Loans Deposits 2,106.76 - 64.02 2,170.78 95,389.84 - 189.71 95,579.55 1,69,597.34 1,67,113.17 0.43 2,483.74 52,746.91 51,461.79 -5,769.80 7,054.92 4,590.50 - 66.09 1,02,444.77 - 233.09 4656.59 1,02,677.86 - - - - - - - - - - - ATTACHMENT I VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL A. REMUNERATION TO MANAGING DIRECTOR, WHOLE-TIME DIRECTORS AND/OR MANAGER (` in crore) Total Indebtedness 97,496.60 - 253.73 97,750.33 2,22,344.25 2,18,574.96 -5,769.37 9,538.66 1,07,035.27 - 299.18 1,07,334.45 (` in crore)  Total Amount Sr. No. 1 2 3 4 5 Particulars of Remuneration Name of MD/WTD/Manager Gross salary (a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 Value of perquisites u/s 17(2) of the Income-tax Act, 1961 Profits in lieu of salary under section 17(3) of the Income-tax Act, 1961 (b) (c) Stock Option Sweat Equity Commission - - Others- Retiral Benefits Total (A) Ceiling as per the Act as % of profit others Mukesh D. Ambani Nikhil R. Meswani Hital R. Meswani P.M.S. Prasad Pawan Kumar Kapil 4.25 0.51 - - - 2.10 0.50 - - - 1.68 0.92 - - - 9.53 11.60 11.60 7.02 0.06 - - - - 0.71 15.00 0.22 14.42 0.21 14.41 0.15 7.23 2.63 0.22 - 0.44 - - 0.09 3.38 ₹3,572.10 crore (being 10% of the net profits of the Company calculated as per Section 198 of the Companies Act, 2013) 17.68 2.21 - 0.44 - 32.73 1.38 54.44 253 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 l a t o T t n u o m A ) e r o r c n i ` ( ) 5 1 0 2 / 6 0 / 2 1 f . e w . i d e t n o p p A ( l a r j u G i n a b m A l i a h b u n i a Z r a k l e h s a M . A n i a J C a r s i M r u p a K r i V i d e v i r T P. a t k a h B . L i h g n S r e d n m a R i s r o t c e r i D f o e m a N . M a t i N l i d A h t a n u h g a R . r D k a p D i . f o r P k o h s A . f o r P m a r a h D . r D a r d n e g o Y h g n i s n a M n o i t a r e n u m e R f o s r a l u c i t r a P : I S R O T C E R D R E H T O O T N O I T A R E N U M E R . B I L E N N O S R E P L A R E G A N A M Y E K D N A S R O T C E R D F O N O I T A R E N U M E R I . I V . r S . o N . 1 1 3 1 . 2 1 0 . - - 6 3 9 . 6 9 0 . 7 6 0 1 . 8 0 1 . 6 0 0 . 0 2 1 . - 6 2 1 . - - - - 7 3 6 6 . 3 9 1 1 . 8 0 1 . - - - - 6 0 0 . 0 2 1 . - 6 2 1 . 6 2 1 . 3 2 0 . 1 2 0 . 8 0 0 . 3 1 0 . 1 2 0 . 7 2 0 . 6 0 0 . 0 2 1 . - 3 4 1 . - - - - 0 2 1 . - 1 4 1 . - - - - 0 2 1 . - 8 2 1 . - - - - 0 2 1 . - 3 3 1 . - - - - 0 2 1 . - 1 4 1 . - - - - 0 2 1 . 0 2 1 . - - 7 4 1 . 6 2 1 . - - - - - - - - 3 4 1 . 1 4 1 . 8 2 1 . 3 3 1 . 1 4 1 . 7 4 1 . 6 2 1 . ) 3 1 0 2 i , t c A s e n a p m o C e h t f o 8 9 1 n o i t c e S r e p s a d e t a u c l a c y n a p m o C e h t l f o s t fi o r p t e n e h t f o % 1 g n e b i ( e r o r c 1 2 7 5 3 ₹ . i / d r a o b g n d n e t t a r o f e e F s g n i t e e m e e t t i m m o c s r o t c e r i D t n e d n e p e d n I n o i s s i m m o C s r e h t O · · ) 1 ( l a t o T i / d r a o b g n d n e t t a e e F s g n i t e e m e e t t i m m o c n o i s s i m m o C s r e h t O · · l a i r e g a n a M l a t o T * n o i t a r e n u m e R ) 2 + 1 ( = ) B ( l a t o T ) 2 ( l a t o T t c A e h t r e p s a g n i l i e C l l a r e v O s r o t c e r i D e v i t u c e x E - n o N r e h t O . 2 J T N E M H C A T T A 254 ) B d n a A f o l a t o t e h t g n i e b ( s r o t c e r i D r e h t o d n a s r o t c e r i i D e m T - e l o h W , r o t c e r i i D g n g a n a M o t n o i t a r e n u m e r l a t o T * Annual Report 2015-16Directors’ Report (Continued)Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.         ATTACHMENT K VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD Sr. No. Particulars of Remuneration Key Managerial Personnel  CEO Company Secretary (K. Sethuraman) CFO (Alok Agarwal) Joint CFO (Srikanth Venkatachari) 1 2 3 4 5 Gross salary (a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 Value of perquisites u/s 17(2) of the Income-tax Act, 1961 Profits in lieu of salary under section 17(3) of the Income-tax Act, 1961 (b) (c) Stock Option Sweat Equity        Commission - as % of profit - Retiral Benefits Others Total Not Applicable 1.60 0.01 - 0.36 - - 0.06 2.03 11.53 0.01 - 2.06 - - 0.14 13.74 10.44 0.01 - - - - 0.23 10.68 (₹ in crore)  Total Amount 23.57 0.03 - 2.42 - - 0.43 26.45 ATTACHMENT L VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES Type A. COMPANY Penalty Punishment Compounding B. DIRECTORS Penalty Punishment Compounding C. OTHER OFFICERS IN DEFAULT Penalty Punishment Compounding Section of  the Companies Act Brief Description  Details of Penalty / punishment / compounding fees imposed Authority (RD/ NCLT/ COURT) Appeal made, if any (give details) N I L For and on behalf of the Board of Directors Mukesh D. Ambani Chairman and Managing Director Mumbai, July 15, 2016 255 Directors’ ReportGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 Financial Statements STANDALONE Independent Auditors’ Report on Financial Statements 257 / 262 / Balance Sheet 263 / Statement of Profit and Loss 264 / Cash Flow Statement 266 / Significant Accounting Policies 270 / Notes on Financial Statements 256 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Independent Auditors’ Report On The Standalone Financial Statements Of Reliance Industries Limited TO THE MEMBERS OF RELIANCE INDUSTRIES LIMITED REPORT ON THE STANDALONE FINANCIAL STATEMENTS We have audited the accompanying standalone financial statements of RELIANCE INDUSTRIES LIMITED (“the Company”), which comprise the Balance Sheet as at March 31, 2016, the Profit and Loss Statement and the Cash Flow Statement for the year then ended and a summary of the significant accounting policies and other explanatory information. MANAGEMENT’S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including Accounting Standards prescribed under Section 133 of the Act. responsibility also includes maintenance of adequate This accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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 standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order under section 143 (11) of the Act. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the 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 financial control relevant to the Company’s preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Board of Directors, as well as evaluating the overall presentation of the standalone financial statements. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements. OPINION In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as at March 31, 2016, and its profit and its cash flows for the year ended on that date. OTHER MATTERS The standalone financial statements and other financial information include the Company’s proportionate share in jointly controlled assets of ` 1,055 crore, liabilities of ` 95 crore, expenditure of ` 462 crore and the elements making up the Cash Flow Statement and related disclosures in respect of an unincorporated joint venture which is based on statements from the operator and certified by the management. Our opinion is not qualified / modified in respect of this matter. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 1. As required by Section 143 (3) of the Act, we report that: a) b) c) d) e) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books. The Balance Sheet, the Profit and Loss Statement, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account. In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards prescribed under section 133 of the Act. On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act. 257 Standalone148255GovernanceCorporate Overview256379Financial StatementsShareholder InformationManagement Review380396551470254 Independent Auditors’ Report (Continued) On The Standalone Financial Statements Of Reliance Industries Limited f ) g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure A”. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company except for a sum of ` 17 crore, which are held in abeyance due to pending legal cases. 2. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government in terms of Section 143(11) of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order. The Company has disclosed the impact of pending litigations on its financial position in its financial statements as referred to in Note 32.2 (d) (e) and Note 33 to the standalone financial statements. the applicable The Company has made provision, as required under law or accounting standards, for material foreseeable losses, if any, on including derivative contracts; long-term contracts 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) Rajesh D. Chaturvedi Partner Membership No.: 45882 A. B. Jani Partner Membership No.: 46488 A. R. Shah Partner Membership No.:47166 Mumbai Date : April 22, 2016 i. ii. 258 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Annexure “A” to the Independent Auditors’ Report on the Standalone Financial Statements of Reliance Industries Limited (Referred to in paragraph 1 (f ) under ‘Report on Other Legal and Regulatory Requirements’ of our report of even date) REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (i) OF SUB- SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 (“THE ACT”) We have audited the internal financial controls over financial reporting of RELIANCE INDUSTRIES LIMITED (“the Company”) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date. internal financial controls based on the MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS The Company’s management is responsible for establishing and maintaining internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013. AUDITORS’ RESPONSIBILITY Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting. MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and payments of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements. INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. OPINION In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note. 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) Rajesh D. Chaturvedi Partner Membership No.: 45882 A. B. Jani Partner Membership No.: 46488 A. R. Shah Partner Membership No.:47166 Mumbai Date : April 22, 2016 259 Standalone148255GovernanceCorporate Overview256379Financial StatementsShareholder InformationManagement Review380396551470254Annexure “B” to the Independent Auditors’ Report on the Standalone Financial Statements of Reliance Industries Limited (Referred to in paragraph 2, under ‘Report on Other Legal and Regulatory Requirements’ section of our Report of even date) v. i. In respect of its fixed assets: The Company has maintained proper records showing including quantitative details and full particulars situation of fixed assets on the basis of available information. vi. a) b) c) 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. As per the information and explanations provided to us, title deeds of immovable properties are generally in the name of the Company except in case of properties acquired by entities that have since been amalgamated with the Company and except in fourteen cases of leasehold land, aggregating Rs. 317 crore (refer note 10.1 to the financial statements) in respect of which lease deeds are pending execution. We verified the title deeds for immovable properties acquired during the course of the year and in respect of other properties, the same is under compilation. ii. iii. In our opinion, the inventories have been physically verified during the year by the Management at reasonable intervals and as explained to us no material discrepancies were noticed on physical verification. In respect of the loans, secured or unsecured, granted by the Company to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013: Sr. No 1. a) b) In our opinion and according to the information given to us, the terms and conditions of the loans given by the Company are prima facie, not prejudicial to the interest of the Company. The schedule of repayment of principal and payment of interest has been stipulated and repayments of principal amounts and /or receipts of interest have been regular as per stipulations. c) There are no overdue amounts as at the year-end in respect of both principal and interest. iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities. 260 According to the information and explanations given to us, the Company has not accepted any deposit from the public. Therefore, the provisions of Clause (v) of paragraph 3 of the Order is not applicable to the Company. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under Section 148(1) of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed accounts and 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. vii. In respect of statutory dues: a) According to the records of the Company, undisputed statutory dues including Provident Fund, Employees’ State Insurance, Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, 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, 2016 for a period of more than six months from the date of becoming payable. b) Details of dues of Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty and Value Added Tax which have not been deposited as on March 31, 2016 on account of disputes are given below: Name of the Statute Nature of Dues Amount (` in crore) Period to which the amount relates Forum where dispute is pending Central Excise Act,1944 Excise Duty and Service Tax Sales Tax/ VAT and Entry Tax 2. Central Sales Tax Act,1956 and Sales Tax Act of various States 15 Various Years from 1990-91 to 2006-07 105 Various Years from 1991-92 to 2012-13 4 Various Years from 2006-07 to 2009-10 1,207 Various Years from 1992-93 to 2009-10 647 Various Years from 1983-84 to 2008-09 92 24 Various Years from 1994-95 to 2008-09 Various Years from 2000-01 to 2008-09 Commissioner of Central Excise (Appeals) Customs, Excise and Service Tax Appellate Tribunal High Court Joint/Deputy Commissioner/ Commissioner (Appeals) Sales Tax Appellate Tribunal High Court Supreme Court Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Annexure “B” (Continued) to the Independent Auditors’ Report on the Standalone Financial Statements of Reliance Industries Limited Sr. No 3. Name of the Statute Nature of Dues Amount (` in crore) Period to which the amount relates Forum where dispute is pending xiii. Customs Act, 1962 Custom Duty 20 2007-08 Customs, Excise and Service Tax Appellate Tribunal Total 2,114 In our opinion and according to the information and explanations given to us the Company’s transactions with its related party are in compliance with Sections 177 and 188 of the Companies Act, 2013, where applicable, and details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards. viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and Government and dues to debenture holders. ix. x. xi. In our opinion and according to the information and explanations given to us, monies raised by way of debt instruments and the term loans during the year have been applied by the Company for the purposes for which they were raised. information and In our opinion and according to the explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year. information and In our opinion and according to the explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013. xii. The Company is not a Nidhi Company and hence reporting under clause (xii) of Paragraph 3 of the Order is not applicable. xiv. During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of Paragraph 3 of the Order is not applicable to the Company. xv. In our opinion and according to the information and explanations given to us, during the year, the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence reporting under clause (xv) of Paragraph 3 of the Order is not applicable to the Company xvi. In our opinion and according to information and explanations provided to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. 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) Rajesh D. Chaturvedi Partner Membership No.: 45882 A. B. Jani Partner Membership No.: 46488 A. R. Shah Partner Membership No.:47166 Mumbai Date : April 22, 2016 261 Standalone148255GovernanceCorporate Overview256379Financial StatementsShareholder InformationManagement Review380396551470254Balance Sheet as at 31st March, 2016 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) Long Term Provisions Current Liabilities Short Term Borrowings Trade Payables Micro, Small and Medium Enterprises Others 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 Note As at 31st March, 2016 (` in crore) As at 31st March, 2015 1 2 1 3 4 5 6 7 8 9 10 10 10 10 11 12 13 14 15 16 17 18 3,240 2,36,936 3,236 2,12,923 2,40,176 8 2,16,159 17 77,866 13,159 1,489 14,490 223 54,298 54,841 1,170 91,477 39,933 97,296 9,583 1,12,630 16,237 39,429 28,034 3,495 6,892 11,938 776 90,308 92,514 76,227 12,677 1,404 12,914 131 54,339 19,063 4,854 1,25,022 4,57,720 91,301 3,97,785 3,67,156 79,792 34,771 65,178 10,575 62,058 29,259 50,515 36,551 4,661 11,571 12,307 547 2,81,633 90,564 4,57,720 1,16,152 3,97,785 Total Significant Accounting Policies See accompanying Notes to the Financial Statements 1 to 37 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 Rajesh D. Chaturvedi Partner A. B. Jani Partner A.R. Shah Partner Alok Agarwal Chief Financial Officer Srikanth Venkatachari Joint Chief Financial Officer K. Sethuraman Company Secretary Mumbai Date : April 22, 2016 262 - 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 Prof. Ashok Misra Prof. Dipak C. Jain Dr. R.A. Mashelkar Adil Zainulbhai Raminder Singh Gujral Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Profit and Loss Statement for the year ended 31st March, 2016 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 / Amortisation and Depletion 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 See accompanying Notes to the Financial Statements As per our Report of even date For Chaturvedi & Shah Chartered Accountants For Deloitte Haskins & Sells LLP Chartered Accountants For Rajendra & Co. Chartered Accountants Rajesh D. Chaturvedi Partner A. B. Jani Partner A.R. Shah Partner Alok Agarwal Chief Financial Officer Srikanth Venkatachari Joint Chief Financial Officer K. Sethuraman Company Secretary Mumbai Date : April 22, 2016 Note 2015-16 (` in crore) 2014-15 19 2,51,100 141 2,51,241 18,083 3,40,727 87 3,40,814 11,738 20 21 22 23 24 10 25 30 1 to 37 2,33,158 7,582 2,40,740 3,29,076 8,721 3,37,797 1,52,769 2,55,998 4,241 4,171 4,260 2,454 9,566 27,578 2,05,039 35,701 7,802 482 27,417 7,134 1,943 3,686 2,367 8,488 28,713 3,08,329 29,468 6,124 625 22,719 84.66 70.25 For and on behalf of the Board - 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 Prof. Ashok Misra Prof. Dipak C. Jain Dr. R.A. Mashelkar Adil Zainulbhai Raminder Singh Gujral 263 Standalone148255GovernanceCorporate Overview256379Financial StatementsShareholder InformationManagement Review380396551470254Cash Flow Statement for the year 20 15-16 A: CASH FLOW FROM OPERATING ACTIVITIES Net Profit Before Tax as per Profit and Loss Statement 35,701 29,468 2015-16 (` in crore) 2014-15 Adjusted for: Write off of Investment [` Nil (Previous Year ` 26,96,800)] Loss on Sale / Discard of Assets (Net) Depreciation / Amortisation and Depletion 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 Taxes Paid (Net) Net Cash from Operating Activities B: CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets Sale of Fixed Assets Purchase of Investments in Subsidiaries / Trusts Redemption of Investments in Subsidiaries Purchase of Other Investments Sale / Redemption of Other Investments Movement in Loans and Advances Maturity of Fixed Deposits Interest Income Dividend Income from Subsidiary and Associates Dividend Income from Others Net Cash (Used in) Investing Activities 264 - 20 9,566 (2,911) (2,781) (691) (3,936) 2,454 146 8,517 6,126 - 31 8,488 1,408 (3,046) (250) (5,414) 2,367 5,462 6,381 (3,528) 3,584 33,052 8,315 41,367 (6,082) 35,285 (42,720) 86 (11,506) 169 (6,55,591) 6,43,525 (133) 3,400 6,584 5 183 1,721 37,422 14,789 52,211 (8,129) 44,082 (21,322) 293 (25,255) 444 (6,68,990) 6,68,877 (917) - 3,850 47 644 (42,329) (55,998) Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Cash Flow Statement (Continued) for the year 20 15-16 C: CASH FLOW FROM FINANCING ACTIVITIES Proceeds from Issue of Share Capital Share Application Money Proceeds from Long Term Borrowings Repayment of Long Term Borrowings Short Term Borrowings (Net) Dividends Paid (including Dividend Distribution Tax) Interest Paid Net Cash (Used in) Financing Activities Net (Decrease) in Cash and Cash Equivalents Opening Balance of Cash and Cash Equivalents Closing Balance of Cash and Cash Equivalents* (Refer Note No. 16) * Include towards Unclaimed Dividend of ` 223 crore (Previous Year ` 199 crore) Note: 2015-16 283 8 7,552 (4,591) 1,843 (7,259) (4,268) (6,432) (4,679) 11,571 6,892 (` in crore) 2014-15 226 17 20,310 (4,555) (10,302) (3,268) (3,368) (940) (21,653) 33,224 11,571 Other Receivables from Subsidiary aggregating to ` 3,263 crore (Previous Year ` Nil) have been converted into investments in Zero Coupon Unsecured Optionally Fully Convertible Debentures. 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 Rajesh D. Chaturvedi Partner A. B. Jani Partner A.R. Shah Partner Alok Agarwal Chief Financial Officer Srikanth Venkatachari Joint Chief Financial Officer K. Sethuraman Company Secretary Mumbai Date : April 22, 2016 - 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 Prof. Ashok Misra Prof. Dipak C. Jain Dr. R.A. Mashelkar Adil Zainulbhai Raminder Singh Gujral 265 Standalone148255GovernanceCorporate Overview256379Financial StatementsShareholder InformationManagement Review380396551470254Significant Accounting Policies A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. B. C. D. E. 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. 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. The management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. 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 disclosed under 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. LEASES a) Operating Leases: Rentals are expensed on a straight line basis with reference to the lease terms and other considerations. b) (i) (ii) Finance leases prior to 1st April, 2001: Rentals are expensed with reference to lease terms and other considerations. Finance leases on or after 1st April, 2001: The lower of the fair value of the assets and present value of the minimum lease rentals is capitalised as Fixed Assets with corresponding amount disclosed as lease liability. The principal component in the lease rental is adjusted against the lease liability and the interest component is charged to Profit and Loss Statement. 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. 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, SEZ units / developer and Petrochemical Plants capitalised after April 1, 2015 where depreciation is provided on Straight Line Method (SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 except in respect of the following assets, where useful life is different than those prescribed in Schedule II are used; Particular Fixed Bed Catalyst (useful life: 2 years or more) Fixed Bed Catalyst (useful life: up to 2 years) Assets acquired from 1st April, 2001 under finance lease Premium on Leasehold Land Depreciation Over its useful life as technically assessed 100% depreciated in the year of addition Over the period of lease term Over the period of lease term 266 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Significant Accounting Policies 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. Intangible Assets These are amortised as under: Particular Technical Know-How Computer Software Development Rights Others Amortisation / Depletion Over the useful life of the underlying assets Over a period of 5 years 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 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. F. G. IMPAIRMENT The Company assesses at each reporting date as to whether there is any indication that an asset (tangible and intangible) may be impaired. An asset is treated as impaired, when the carrying cost of the asset exceeds its recoverable amount. Recoverable amount is higher of an asset’s or cash generating unit’s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. FOREIGN CURRENCY TRANSACTIONS a. Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. b. c. d. e. 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 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. Monetary assets and liabilities are restated at the year end rates. Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss Statement, 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. H. INVESTMENTS Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Non Current investments are stated at cost. Provision for diminution in the value of Non Current investments is made only if such a decline is other than temporary. Investments that are readily realisable and intended to be held for not more than 12 months from the date of acquisition are classified as current investment. All other investments are classified as non-current investments. I. INVENTORIES 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 net of recoverable taxes incurred in bringing them to their respective present location and condition. 267 Standalone148255GovernanceCorporate Overview256379Financial StatementsShareholder InformationManagement Review380396551470254 Significant Accounting Policies 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. 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 Profit and Loss Statement 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 Profit and Loss Statement. Employee Separation Costs Compensation to employees who have opted for retirement under the voluntary retirement scheme of the Company is charged to the Profit and Loss Statement in the year of exercise of option by the employee. L. M. N. 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 Profit and Loss Statement in the period in which they are incurred. RESEARCH AND DEVELOPMENT EXPENSES Revenue expenditure pertaining to research is charged to the Profit and Loss Statement. Development costs of products are charged to the Profit and Loss Statement unless a product’s technological feasibility has been established, in which case such expenditure is capitalised. FINANCIAL DERIVATIVES AND COMMODITY HEDGING TRANSACTIONS In respect of derivative contracts, premium paid, gains/losses on settlement and losses on restatement are recognised in the Profit and Loss Statement 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. 268 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Significant Accounting Policies O. P. Q. R. 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 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. PREMIUM ON REDEMPTION OF BONDS / DEBENTURES Premium on redemption of bonds/debentures, net of tax impact, are adjusted against the Securities Premium Reserve. 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. 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 Intangible Assets under Development. Upon a reserve being either ‘proved’ or deemed to be ‘dry’, the costs accumulated in Intangible Assets under Development 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 Profit and Loss Statement. 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. 269 Standalone148255GovernanceCorporate Overview256379Financial StatementsShareholder InformationManagement Review380396551470254 The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation. As at 31st March, 2016 (` in crore) As at 31st March, 2015 1. SHARE CAPITAL Authorised Share Capital: 500,00,00,000 (500,00,00,000) 100,00,00,000 (100,00,00,000) Equity Shares of ` 10 each Preference Shares of ` 10 each Issued, Subscribed and Paid up: 324,03,76,321 (323,56,88,765) Equity Shares of ` 10 each fully paid up Less: Calls in arrears - by others [` 2,303 (Previous Year ` 3,113)] 3,240 - 5,000 1,000 6,000 3,240 3,240 5,000 1,000 6,000 3,236 3,236 3,236 - Total 1.1 1.2 1.3 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. 17,18,83,624 (17,18,83,624) Shares held by subsidiaries, which were allotted pursuant to the Schemes of Amalgamation sanctioned by the Hon’ble High Courts in the previous years, do not have voting rights and are not eligible for Bonus Shares 4,62,46,280 (4,62,46,280) Shares were bought back and extinguished in the last five years. 1.4 The details of shareholders holding more than 5% shares : Name of the Shareholder Life Insurance Corporation of India 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 Equity Shares at the end of the year As at 31st March, 2016 No. of Shares % held 9.03 29,26,02,727 As at 31st March, 2015 No. of Shares % held 9.18 29,69,44,782 As at 31st March, 2016 No. of Shares 323,56,88,765 46,87,556 324,03,76,321 As at 31st March, 2015 No. of Shares 323,19,01,858 37,86,907 323,56,88,765 1.6 The Company has reserved issuance of 12,20,30,651 (Previous year 12,67,18,207) 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 14,967 options at a price of ` 887 per option, plus all applicable taxes, as may be levied in this regard on the Company (Previous year 45,419 options which includes 21,367 options at a price of ` 936 per option, 13,052 options at a price of ` 961 per option and 11,000 options at a price of ` 843 per option, plus all applicable taxes, as may be levied in this regard on the Company) to the Eligible Employees. 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. 1.7 Share Application Money Pending Allotment represents application money received on account of Employees Stock Option Scheme. 270 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 2. RESERVES AND SURPLUS Capital Reserve As per last Balance Sheet Capital Redemption Reserve As per last Balance Sheet Securities Premium Reserve As per last Balance Sheet Add : On issue of shares Less: Calls in arrears - by others [` 1,03,189 (Previous Year ` 1,93,288)] Debentures Redemption Reserve As per last Balance Sheet General Reserve As per last Balance Sheet Add: Transferred from Profit and Loss Account Profit and Loss Account As per last Balance Sheet Add: Profit for the year Less: Appropriations Adjustment relating to Fixed Assets (Refer Note No. 10.9) Transferred to General Reserve Proposed Dividend on Equity Shares [Dividend per Share ` Nil (Previous year ` 10 /-)] Interim Dividend on Equity Shares [Dividend per Share ` 10.50 /- (Previous year ` Nil)] Tax on Dividend* Total * Tax on Dividend is net of reversal of excess provision of ` 17 crore pertaining to Previous Year. As at 31st March, 2016 (` in crore) As at 31st March, 2015 291 48 291 48 48,089 296 48,385 - 47,850 239 48,089 - 48,385 1,117 48,089 1,117 1,53,210 22,000 1,35,210 18,000 1,75,210 1,53,210 10,168 27,417 37,585 - 22,000 - 3,095 605 9,326 22,719 32,045 318 18,000 2,944 - 615 11,885 2,36,936 10,168 2,12,923 271 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review1482552563793803965514702543. LONG TERM BORROWINGS Secured Non Convertible Debentures Long Term Maturities of Finance Lease Obligations (Refer Note No. 10.8 and 31) Unsecured Bonds Term Loans- from Banks Total As at 31st March, 2016 (` in crore) As at 31st March, 2015 Non Current Current Non Current Current 1,137 66 1,203 22,628 54,035 76,663 77,866 133 28 161 2,975 11,638 14,613 14,774 1,270 94 1,364 20,303 54,560 74,863 76,227 164 27 191 857 7,428 8,285 8,476 3.1 Non Convertible Debentures referred above to the extent of: a) b)  c) ` 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 unit) of the Company. ` 400 crore are secured by way of first mortgage / charge on all the properties situated at Hazira Complex and at Patalganga 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% 10.75% Total Non Current 2018-19 134 - 370 504 2020-21 - 500 - 500 2017-18 133 - - 133 (` in crore) Current 2016-17 133 - - 133 Total 267 500 370 1,137 3.3 Finance Lease Obligations are secured against Leased Assets. 3.4 Maturity Profile and Rate of Interest of Bonds are as set out below : Rate of Interest 2.06% 2.51% 4.13% 4.88% 5.00% 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 - - - - - - - - - - - - - 82 - - 82 2035- 2044- 2046- 36 45 47 - - - - - - - - - - - 4,969 - 1,325 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 64 - - 64 4,969 1,325 2027- 28 - - - - - - - - - - 33 - - - - - 33 272 2025- 26 126 149 2026- 27 - - - - - - - - - - - 225 146 - - - Non Current 2023- 2024- 24 25 126 126 149 149 - - 6,626 - - - - - - - - - - - - - - - - - - - - - - - - - - 275 - - - - - - - - - - - - 371 275 6,901 2022- 23 126 149 - - - - - - - - - - - - - - 275 2021- 22 126 149 - - - - - - - - - - - - - - 275 2020- 21 126 149 - - - - - - - - - - - - - - 275 Total 2019- 20 127 149 - - - - - - - - - - 252 - - - - 1,127 - - - - - - - - - - - - 276 1,655 2017- 2018- 18 19 127 127 1,137 149 150 1,342 - 6,626 - 4,969 - 1,325 - - - - 252 - - - - 1,127 33 - 225 - 146 - 82 - - - 64 - 277 17,328 (` in crore) Current 2016- 17 126 149 - - - 332 1,073 - 861 - - - - - 433 - 2,975 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.3.5 Bonds include 5.875% Senior Perpetual Notes (the “Notes”) of ` 5,300 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 6-11 years 8,065 4. DEFERRED TAX LIABILITY (NET) Deferred Tax Liability Related to Fixed Assets Deferred Tax Assets Disallowances under the Income Tax Act, 1961 Total 5. LONG TERM PROVISIONS Provision for decommissioning of Assets* Total * The movement in the provision is solely because of changes in exchange rates. 6. 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 Total Maturity Profile 2-5 years 45,970 As at 31st March, 2016 (` in crore) Total 54,035 1 year 11,638 (` in crore) As at 31st March, 2015 13,491 332 13,159 12,956 279 12,677 As at 31st March, 2016 (` in crore) As at 31st March, 2015 1,489 1,489 1,404 1,404 As at 31st March, 2016 (` in crore) As at 31st March, 2015 - 1,672 655 17 1,672 1,649 11,169 14,490 672 - 12,242 12,914 6.1 Working Capital Loans from Banks of ` 1,672 crore (Previous Year ` 672 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. Working Capital Loans from Others of ` 1,649 crore (Previous Year ` Nil) are secured by way of lien on Government Securities. 6.2 273 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review1482552563793803965514702547. TRADE PAYABLES The details of amounts outstanding to Micro, Small and Medium Enterprises based on information available 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 Total OTHER CURRENT LIABILITIES Current maturities of Long Term Debt Current maturities of Finance Lease Obligations (Refer Note No. 3 and 10.8) Current maturities of Deferred Payment Liabilities Interest accrued but not due on borrowings Unclaimed Dividends # Application money received and due for refund # Unclaimed/ Unpaid matured Debentures and Interest accrued thereon # Other payables * Total As at 31st March, 2016 (` in crore) As at 31st March, 2015 - - - - - - - - - - - - - - - - As at 31st March, 2016 (` in crore) As at 31st March, 2015 14,746 28 8,449 27 14,774 - 300 223 1 1 39,542 54,841 8,476 3 254 199 1 1 10,129 19,063 # * These figures do not include any amounts due and outstanding, to be credited to Investor Education and Protection Fund except ` 17 crore (Previous Year ` 15 crore) which is held in abeyance due to legal cases pending. Includes Statutory Dues, Security Deposit, Creditors for Capital Expenditure and Advance from Customers. SHORT TERM PROVISIONS Provisions for Employee Benefits (Refer Note No. 23.1) Proposed dividend Tax on dividend Provision for wealth tax Other provisions # Total As at 31st March, 2016 (` in crore) As at 31st March, 2015 252 - - 77 841 1,170 237 2,944 615 77 981 4,854 # 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, 2015 of ` 489 crore as per the estimated pattern of dispatches. During the year, ` 489 crore was utilised for clearance of goods. Provision recognised under this class for the year is ` 527 crore which is outstanding as on 31st March, 2016. Actual outflow is expected in the next financial year. The Company had recognised customs duty liability on goods imported under various export incentive schemes of ` 489 crore as at 31st March, 2015. During the year, further provision of ` 412 crore was made and sum of ` 587 crore were reversed on fulfillment of export obligation. Closing balance on this account as at 31st March, 2016 is ` 314 crore. 8. 9. 274 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Description GROSS BLOCK DEPRECIATION / AMORTISATION / DEPLETION NET BLOCK As at 01-04 2015 Additions / Adjustment Deductions/ Adjustments As at 31-03-2016 As at 01-04 2015 For the Year# Deductions/ Adjustments As at 31-03-2016 As at 31-03-2016 As at 31-03 2015 (` in crore) 10. FIXED ASSETS Tangible Assets : Own Assets : Leasehold Land Freehold Land Buildings Plant & Machinery Electrical Installations Equipments $ Furniture & Fixtures Vehicles Ships Aircrafts & Helicopters Sub-Total Leased Assets : Plant & Machinery Ships Sub-Total Total (A) Intangible Assets : * Technical Knowhow Fees Software Development Rights Others Total (B) Total (A + B) Previous Year Capital Work-in-Progress Intangible Assets under Development 1,690 1,598 9,618 149,043 2,910 4,235 545 515 387 46 1,70,587 319 10 329 1,70,916 3,357 950 51,660 9,179 65,146 2,785 247 1,051 14,502 171 290 42 86 35 - 19,209 - - - 19,209 248 19 7,502 - 7,769 300 3 7 425 2 37 4 30 - - 808 - - - 808 4,175 1,842 10,662 163,120 3,079 4,488 583 571 422 46 1,88,988 319 10 329 1,89,317 - - - - - 3,605 969 59,162 9,179 72,915 387 - 4,040 81,863 1,334 2,194 434 306 294 32 90,884 230 10 240 91,124 2,246 780 26,286 1,063 30,375 2,36,062 2,22,565 26,978 14,427 808 930 2,62,232 2,36,062 1,21,499 1,13,159 85 - 436 5,570 391 514 42 87 7 2 7,134 76 - 76 7,210 154 61 2,355 37 2,607 9,817 9,152 67 - 1 359 1 36 3 27 - - 494 - - - 494 - - - - - 405 - 4,475 87,074 1,724 2,672 473 366 301 34 97,524 306 10 316 97,840 2,400 841 28,641 1,100 32,982 3,770 1,842 6,187 76,046 1,355 1,816 110 205 121 12 91,464 13 - 13 91,477 1,205 128 30,521 8,079 39,933 1,303 1,598 5,578 67,180 1,576 2,041 111 209 93 14 79,703 89 - 89 79,792 1,111 170 25,374 8,116 34,771 494 1,30,822 1,31,410 1,14,563 812 1,21,499 1,14,563 97,296 9,583 65,178 10,575 $ * # Includes Office Equipments Other than internally generated Depreciation for the year includes depreciation of ` 251 crore (Previous Year ` 182 crore) capitalised during the year. 10.1 Leasehold Land includes ` 317 crore (Previous Year ` 203 crore) in respect of which lease-deeds are pending execution. 10.2 Buildings includes : i) ii) Cost of shares in Co-operative Societies ` 1,99,950 (Previous Year ` 1 crore). ` 135 crore (Previous Year ` 93 crore) in shares of Companies / Societies with right to hold and use certain area of Buildings. 10.3 Intangible Assets - Others includes : i) ii) Jetties amounting to ` 812 crore (Previous Year ` 812 crore), the Ownership of which vests with Gujarat Maritime Board. ` 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. 275 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 10.4 Capital Work-in-Progress and Intangible Assets under Development includes : i) ii) ` 11,022 crore (Previous Year ` 6,770 crore) on account of Project Development Expenditure. ` 18,646 crore (Previous Year ` 16,346 crore) on account of cost of construction materials at site. 10.5 Project Development Expenditure (in respect of Projects upto 31st March, 2016, included under capital work-in-progress and intangible Assets under Development) (` in crore) 2014-15 4,204 2015-16 6,770 Opening Balance Add: Transferred from Profit and Loss Account (Refer Note no. 25) Interest Capitalised (Refer Note no. 24) 2,507 2,302 1,573 1,062 Less: Project Development Expenses Capitalised during the year Closing Balance 4,809 11,579 557 11,022 2,635 6,839 69 6,770 10.6 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. 10.7 Additions in plant and machinery, Capital work-in-progress, Intangible Assets - Development Rights and Intangible assets under Development includes ` 8,605 crore (net loss) [Previous Year ` 4,709 crore (net loss)] on account of exchange difference during the year. 10.8 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, 2016 are as follows: Total Minimum Lease Payments outstanding As at 31st March Future interest on Outstanding Lease Payments 2016 36 73 109 2015 37 108 145 2016 8 7 15 2015 10 14 24 (` in crore) Present value of Minimum Lease Payments As at 31st March 2016 28 66 94 2015 27 94 121 Within one year Later than one year and not later than five years Total ii) iii) General Description of Lease Terms: Assets are taken on Lease over a period of 5 to 10 years. 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, 2016 amount to ` 1 crore (Previous Year ` 1 crore). Within one year ` 44,00,000 (Previous Year ` 44,00,000) Later than one year and not later than five years Total 2015-16 - 1 1 (` in crore) 2014-15 - 1 1 10.9 Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II, except in respect of certain assets as disclosed in Accounting Policy on Depreciation, Amortisation and Depletion. Accordingly the unamortised carrying value is being depreciated / amortised over the revised / remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account of the year ended 31st March, 2015, amounting to ` 318 crore. 276 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 11. 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 50,00,00,000 (50,00,00,000) 9% Non-Cumulative Redeemable Preference Shares of Reliance Gas Transportation Infrastructure Limited of ` 10 each Total Trade Investments (A) Other Investments In Equity Shares of Associate Company - Quoted, fully paid up 68,60,064 (68,60,064) Reliance Industrial Infrastructure Limited of ` 10 each In Equity Shares of Associate Company - Unquoted, fully paid up 22,500 (22,500) Reliance LNG Limited of ` 10 each [` 2,25,000 (Previous Year ` 2,25,000)] In Equity Shares of Subsidiary Companies - Unquoted, fully paid up 12,50,000 (12,50,000) 18,20,60,000 (12,11,60,000) 15,00,00,000 (15,00,00,000) - (2,00,000) Reliance Energy Generation and Distribution Limited of ` 10 each Reliance Ethane Holding Pte. Limited of $ 1 each Reliance Gas Pipelines Limited of ` 10 each Reliance Global Business B.V. of Euro 0.01 each [` NIL (Previous Year ` 1,25,400)] As at 31st March, 2016 (` in crore) As at 31st March, 2015 10 10 64 1 4 - 69 2,000 2,000 16 16 - - 1 1,151 150 - 10 10 64 1 4 - 69 2,000 2,000 2,079 2,079 16 16 - - 1 752 150 - 277 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254As at 31st March, 2016 (` in crore) As at 31st March, 2015 14,75,04,400 (14,75,04,400) 42,450 (42,450) 44,74,74,90,000 (29,74,74,90,000) 7,45,14,000 (5,50,000) 5,66,70,00,000 (5,66,70,00,000) 33,14,48,655 (-) 20,20,200 (20,20,200) 50,000 (-) 26,91,150 (26,91,150) 30,000 (-) Reliance Industrial Investments and Holdings Limited of `10 each Reliance Industries (Middle East) DMCC of AED 1000 each Reliance Jio Infocomm Limited of `10 each 148 46 44,747 Reliance Jio Messaging Services Private Limited of ` 10 each 75 Reliance Retail Ventures Limited of ` 10 each Reliance Sibur Elastomers Private Limited of ` 10 each Reliance Strategic Investments Limited of ` 10 each Reliance Textiles Limited of Rs.10 each [` 5,00,000 (Previous Year ` Nil)] Reliance Ventures Limited of ` 10 each RIL (Australia) Pty Limited of AUD 1 each [` 14,07,840 (Previous Year ` NIL)] 5,667 331 2 - 2,351 - 148 46 29,747 1 5,667 - 2 - 2,351 - In Corpus of Trust-Unquoted Investment in Corpus of Independent Media Trust In Preference Shares of Subsidiary Companies - Unquoted, fully paid up 12,77,836 (63,436) 4,02,800 (4,02,800) - (5,93,90,00,000) 5% Non Cumulative Compulsorily Convertible Preference Shares of Reliance Industries (Middle East) DMCC of AED 1000 each 9% Non Cumulative Compulsorily Convertible Preference Shares of Reliance Strategic Investments Limited of ` 1 each Reliance Global Business B.V. ‘A’ Class Shares of Euro 0.01 each In Debentures of Subsidiary Companies - Unquoted, fully paid up 2,79,90,000 (2,79,90,000) 8,83,143 (8,83,143) 15,10,30,00,000 (1,10,00,00,000) 3,49,00,000 (1,11,60,000) 0% Unsecured Convertible Debentures of Reliance Industrial Investments and Holdings Limited of ` 100 each 0% Unsecured Convertible Redeemable Debentures of Reliance Industrial Investments and Holdings Limited of ` 5,000 each Zero Coupon Unsecured Optionally Fully Convertible Debentures of Reliance Industrial Investments and Holdings Limited of ` 10 each Zero Coupon Unsecured Optionally Fully Convertible Debentures of Reliance Universal Traders Private Limited of ` 10 each 54,669 38,865 3,366 3,366 2,302 113 - 280 442 1,089 1,089 58,051 39,970 85 113 422 2,415 620 280 442 15,103 1,100 35 11 278 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.1,35,78,80,000 (1,23,60,00,000) Zero Coupon Unsecured Optionally Fully Convertible Debentures of Reliance Prolific Traders Private Limited of ` 10 each 3,50,10,000 (2,97,40,000) Zero Coupon Unsecured Optionally Fully Convertible Debentures of Reliance Prolific Commercial Private Limited of ` 10 each 2,71,80,000 (1,97,90,000) Zero Coupon Unsecured Optionally Fully Convertible Debentures of Reliance Ambit Trade Private Limited of ` 10 each 36,76,50,000 (6,51,50,000) Zero Coupon Unsecured Optionally Fully Convertible Debentures of Reliance Gas Pipelines Limited of ` 10 each 6,00,00,000 (-) Zero Coupon Unsecured Optionally Fully Convertible Debentures of Reliance Progressive Traders Private Limited of `10 each 3,26,33,70,000 (-) Zero Coupon Unsecured Optionally Fully Convertible Debentures of Reliance Energy Generation & Distribution Private Limited of `10 each In Government Securities-Unquoted 6 Years National Savings Certificate (Deposited with Sales Tax Department and other Government Authorities) [` 89,497 (Previous Year ` 87,420)] In Government Securities-Quoted In Fixed Maturity Plan - Quoted fully paid up 3,00,00,000 (-) 1,17,72,377 (1,50,75,101) 99,16,10,709 (27,98,82,768) Axis Fixed Maturity Plan - (Series 47) - Growth Baroda Pioneer Fixed Maturity Plan - (Series J & M) - Growth Birla Sun Life Fixed Term Plan - (Series JA/JI/JQ/JX/KA/KC/KE/KH/ KJ/KL/KP/KR/KT/MA/MD/MK/MP/MQ/MR/MU/MX/MY/NB/ND/ NE/NG/NH/NI/NK/NL) - Growth 40,07,31,150 (19,01,55,380) DHFL Pamerica Fixed Maturity Plan - (Series 45/49/54/57/62/82/85/ 87/91/95) - Growth - (20,93,53,761) DSP Black Rock Fixed Maturity Plan - (Series 146/149/151) - Growth 1,14,50,00,000 (3,50,00,000) HDFC Fixed Maturity Plan - (Series 34/35/36 1105D/1111D/ 1112D/1114D/1132D/1155D/1157D/1176D) - Growth 1,82,08,56,950 (77,12,14,635) ICICI Fixed Maturity Plan - (Series 71/72/73/75/76/77/78) - Growth 2,50,00,000 (3,79,28,740) IDFC Fixed Maturity Plan - (Series 49/50/51) - Growth 63,67,31,022 (5,45,14,579) Kotak Fixed Maturity Plan - (Series 132/133/136/142/145/146/ 147/149/175/176/178/179/180/182/185/190/191) - Growth As at 31st March, 2016 (` in crore) As at 31st March, 2015 1,358 1,236 35 27 368 60 3,263 - 30 12 992 401 - 1,145 1,821 25 637 30 20 65 - - 20,971 3,184 - - 3,551 - 4,616 - 15 280 190 209 35 771 38 55 279 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254As at 31st March, 2016 (` in crore) As at 31st March, 2015 4,32,72,349 (-) 5,50,00,000 (3,00,00,000) 1,49,60,99,239 (32,99,25,439) 39,00,00,000 (22,78,25,006) 1,16,19,16,665 (23,93,60,369) 27,00,00,000 (-) 8,50,15,846 (2,74,08,274) 83,09,64,579 (27,37,96,672) L&T Fixed Maturity Plan - (Series 10) - (Plan H/T) - Growth LIC Nomura Mutual Fund Fixed Maturity Plan - (Series 86/89/90) - Growth Reliance Fixed Horizon Fund - (Series 1/2/4/5/6/7/8/9/10/11/12/13/14/16/17/19/20/27/33) - (Plan XXV/XXVI/XXVII/XXVIII/XXIX/XXX) - Growth Religare Fixed Maturity Plan - (Series 22/24/25/26/27) – (Plan A/C/D/E/F/H) - Growth SBI Debt Fund - (Series A/B/1/2/3/4/5/6/8/9/10/11/14/16/17/18/ 19/20/22/23/25/26/27/29/31/33/34/35/36/366) - Growth Sundaram Fixed Term Plan – (GW/GY/HA/HB/HC) Tata Fixed Maturity Plan - (Series 45/46) - (Scheme C/M/T)- Growth UTI Fixed Term Income Fund - (Series XXII - IX/XXIII-XV/XX-X/XI- XI/XXIII-III/XXIII-VII/XXII-X/XXII-XI/XXIV-VI/XVII-I/XXII-XIV/XXIII-XI/ XXIV-VIII/XXIV-IV/XVII-XIII/XXIV-IX/XX-VIII) - Growth In Debentures or Bonds - Unquoted Tata Sons Limited 820 (820) In Debentures or Bonds - Quoted 100 (100) 43,850 (55,350) 900 (-) 57,70,976 (42,62,612) 5,850 (8 050) 9,750 (11,250) 16,24,821 (-) 39,44,752 (39,44,752) 9,29,946 (9,49,946) 43,05,143 (42,79,543) 980 (950) 25,14,520 (12,100) Export Import Bank of India Housing Development Finance Corporation Limited IDFC Bank Limited Indian Railway Finance Corporation Limited Infrastructure Development Finance Company Limited LIC Housing Finance Limited National Bank for Agriculture and Rural Development National Highways Authority of India National Thermal Power Company Limited Power Finance Corporation Limited Power Grid Corporation of India Limited Rural Electrification Corporation Limited 43 55 1,496 390 1,161 270 85 830 83 10 2,948 91 577 434 980 4,213 395 93 3,769 100 1,162 - 30 330 228 239 - 27 274 9,393 2,721 83 83 83 10 4,389 - 426 805 1,126 - 395 95 1,203 95 1,212 280 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Small Industries Development Bank Of India Limited State Bank of India 2,500 (-) - (950) 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 12. 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 (Refer Note No. 32.2 (e)) Total As at 31st March, 2016 (` in crore) As at 31st March, 2015 250 - - 94 15,022 110,551 112,630 29,047 30,647 83,583 9,850 59,979 62,058 16,138 16,950 45,920 As at 31st March, 2016 (` in crore) As at 31st March, 2015 3,055 1,714 10,129 1,012 327 16,237 6,717 1,666 19,989 685 202 29,259 # Includes ` 28,16,626 (Previous Year ` 11,92,164) to Reliance Utilities and Power Private Limited and ` NIL (Previous Year ` 14,23,851) to Model Economic Township Limited which are related parties. 12.1 Loans and Advances in the nature of Loans given to Subsidiaries and Associates: A) (i) Loans and Advances in the nature of Loans to Subsidiaries (Excluding Debentures): Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Name of the Company Reliance Industrial Investments and Holdings Limited Reliance Ventures Limited Reliance Strategic Investments Limited Reliance Retail Limited Reliance Exploration & Production DMCC Reliance Corporate IT Park Limited Reliance Gas Pipelines Limited Reliance Jio Infocomm Limited Reliance Industries (Middle East) DMCC Reliance Sibur Elastromers Private Limited Total As at 31st March, 2016 6,586 105 3,025 - - 3,505 - - 38 - 13,259 Maximum Balance during the year 18,268 2,465 3,271 - - 3,800 131 3,260 38 89 As at 31st March, 2015 17,159 249 2,121 - - 2,791 33 - - - 22,353 All the above loans and advances have been given for business purposes. (` in crore) Maximum Balance during the year 19,787 2,579 5,114 1,737 78 3,536 135 1,867 565 - 281 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 (ii) Loans and Advances in the nature of Loans to Associate : Sr. No. 1. Name of the Company Gujarat Chemical Port Terminal Company Limited Total As at 31st March, 2016 - - Maximum Balance during the year 6 As at 31st March, 2015 6 6 (` in crore) Maximum Balance during the year 6 The above loan has been given for the purpose of capital expenditure. (iii) Loans and Advances shown above, fall under the category of ‘Long Term Loans & Advances’ in nature of Loans and are re-payable within 3 to 5 years except Short Term Loans and Advances to Reliance Ventures Limited and Reliance Strategic Investments Limited. (iv) Loans to employees as per the Company’s policy are not considered. B) (i) Investment by the Loanee in the shares of the Company *None of the loanees and loanees of subsidiary companies have, per se, made investments in shares of the Company. These investments represent shares of the Company allotted as a result of amalgamation of erstwhile Reliance Petroleum Limited (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. Sr. No. 1. 2. (ii) Name of the Company *Reliance Aromatics and Petrochemicals Limited *Reliance Energy and Project Development Limited No. of Shares held in RIL 2,98,89,898 20,58,000 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 Reliance Supply Solutions Private Limited - Class A Reliance Payment Solutions Limited Kanhatech Solutions Private Limited Reliance Innovative Building Solutions Private Reliance Commercial Land & Infrastructure Limited Reliance Jio Media Private Limited Reliance Jio Digital Services Private Limited Reliance Universal Enterprises Limited Reliance Retail Insurance Broking Limited Indiawin Sports Private Limited Reliance Retail Finance Limited Reliance Chemicals Limited Reliance Polyolefins Limited Reliance Aromatics and Petrochemicals Limited Reliance Energy and Project Development Limited Reliance Jio Infratel Private Limited Reliance Exploration & Production DMCC RIL Exploration & Production Mayanmar Company Limited Reliance Aerospace Technologies Limited (` in crore) Amount of Loan Given 71 303 No. of Shares 13,69,22,912 11,50,00,000    6,80,00,000    6,46,93,950    4,30,10,000    1,10,10,000    1,00,00,000       64,25,000       40,00,000       26,50,000       20,20,000       10,10,600       10,10,000       10,09,300       10,09,280       10,00,000         1,76,200            74,999            50,000 282 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 20 21 22 Reliance Supply Solutions Private Limited - Class C Reliance World Trade Private Limited Reliance Supply Solutions Private Limited - Class B In Preference Shares : Sr. No. Name of the Company 1 2 Reliance Jio Infocomm Limited Reliance Exploration & Production DMCC (iii) (iv) (v) (vi) Investment by Reliance Strategic Investments Limited in subsidiaries: In Equity Shares: Sr. No. Name of the Company 1 2 Reliance Global Commercial Limited Reliance Universal Commercial Limited Investment by Reliance Ventures Limited in subsidiary: In Equity Shares: Sr. No. Name of the Company 1 Model Economic Township Limited Investment by Reliance Corporate IT Park Limited in subsidiaries: In Equity Shares: Sr. No. Name of the Company 1 2 Reliance Jio AsiaInfo Innovation Centre Limited Strategic Manpower Solutions Limited Investment by Reliance Industries (Middle East) DMCC in subsidiaries: In Equity Shares: Sr. No. Name of the Company 1 2 3 4 5 RP Chemical Malaysia Sdn Bhd Recron Malaysia Sdn Bhd Reliance Global Business BV Reliance Global Energy Services (Singapore) Pte Ltd. Reliance Global Energy Services Ltd. (London) In Class A Shares: Sr. No. Name of the Company 1 Reliance Global Business BV In Class A Redeemable preference Shares: Sr. No. Name of the Company 1 RP Chemical Malaysia Sdn Bhd In Preference shares: Sr. No. Name of the Company 1 Recron Malaysia Sdn Bhd              3,702              1,000              1,000 No. of Shares 12,50,00,000 14,70,955 No. of Shares 25,500 25,000 No. of Shares 9,70,00,000 No. of Shares 10,00,000 50,000 No. of Shares 35,86,43,545 11,31,87,500 20,00,000 15,00,000 5,00,000 No. of Shares 5,93,90,00,000 No. of Shares 79,800 No. of Shares 429,800,000 283 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review14825525637938039655147025413. CURRENT INVESTMENTS (Carried at lower of cost and quoted / fair value, including current portion of long term investment) In Government Securities - Quoted* 3,651 4,370 As at 31st March, 2016 (` in crore) As at 31st March, 2015 Collateral Borrowing and Lending Obligation - Unquoted In Debentures or Bonds - Quoted, fully Paid up - - Housing Development Finance Corporation Limited 2,014 10,017 (4,850) 7,50,000 (-) 1,075 (-) 2,000 (-) 2,750 (-) 33,12,714 (-) 7,300 (6,950) 2,100 (20) 1,950 (150) - (23,957) Indian Railway Finance Corporation Limited Infrastructure Development Finance Company 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 State Bank of India In Debentures or Bonds - Unquoted, fully Paid up Tata Sons Limited - (2,150) In Fixed Maturity Plan - Quoted, fully Paid up - (25,90,00,000) 1,50,75,101 (6,00,00,000) 14,98,82,768 (64,10,00,000) - (36,80,00,000) 20,93,53,761 (15,50,00,000) 4,56,47,510 (84,56,47,510) Axis Fixed Term Plan - (Series 47/49/52/55/59/60) - Growth Baroda Pioneer Fixed Maturity Plan - (Series J/M/N) - Growth Birla Sun Life Fixed Term Plan - (Series JA/JI/JQ/JR/JX/KA/KC/KE/KH/KJ/KO/KP/KR/KT) - Growth DHFL Pamerica Fixed Maturity Plan (Series 45/47/49/52/53/54/57/63) - Growth DSP BlackRock Fixed Maturity Plan- (Series 36/37/146/149/150/151/152) - Growth HDFC Fixed Maturity Plan - (Series 372D/377D/384D/390D/400D/ 434D/435D/441D/447D/453D/478D/491D/504D/531D/540D) - Growth 284 100 486 - - - - - 695 3 15 145 215 100 1,344 4,136 - 215 259 60 641 368 155 846 75 96 199 275 332 733 216 196 - - - 15 150 - 209 46 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.- (6,00,00,000) 3,40,65,257 (7,50,00,000) 9,51,59,378 (79,00,00,000) - (2,98,46,064) 6,79,28,740 (31,30,00,000) 7,96,09,567 (8,79,22,280) - (10,50,00,000) 11,45,14,578 (40,00,00,000) - (19,50,00,000) 3,21,69,789 (18,28,13,373) - (2,50,00,000) - (30,00,00,000) 2,28,25,006 (7,00,00,000) 15,03,60,369 (64,50,00,000) - (8,80,00,000) 2,74,08,274 (17,00,00,000) 2,28,32,093 (13,50,00,000) HSBC Fixed Term Plan - (Series 105)- Growth ICICI Prudential Fixed Maturity Plan - (Series 71) - (Plan C/E/H/I) - Cumulative ICICI Prudential Fixed Maturity Plan - (Series 72/73) - (Plan A/B/C/D/E/F/G/I/J/K/L/N/O/S) - Growth ICICI Prudential Fixed Maturity Annual Interval Plan - (Plan I) - Cumulative IDFC Fixed Maturity Plan - (Series 21/49/50/51/57/60/64/66/70/7 2/74/75/79/84/86) - Growth IDFC Yearly Series Interval Fund -( Series I/II) - Growth JP Morgan India Fixed Maturity Plan - (Series 30/33) - Growth Kotak Fixed Maturity Plan - (Series 132/133/136/141/142/145/146/147/149) - Growth L&T Fixed Maturity Plan – (Series 9/X) – (Plan B/H/J/M/Q/S/T) - Growth LIC Nomura Fixed Maturity Plan - (Series 1/64/72/76/77/79/81/86) - Growth Principal PNB Fixed Maturity Plan - (Series B10) - Growth Reliance Fixed Horizon Fund - (Series 2/5/27/33) - (Plan XXV/XXVI) - Growth Religare Invesco Fixed Maturity Plan - (Series 22/XXI) – (Plan E/F/H) - Growth SBI Debt Fund - (Series - 1/2/3/5/10/11/ 14/ 16/17/ 366) – Growth Sundaram Fixed Term Plan - (Series EU/EX/FD/FI) - Growth Tata Fixed Maturity Plan - (Series 45/46) - (Scheme C/K/M/N/Q/T) - Growth UTI Fixed Term Income Fund - (Series XVII - VII/XVII-XIV/XVIII-I/XVII-IV/XVII-I) - Growth In Mutual Fund - Quoted 2,50,000 (2,50,000) - (14,23,59,900) - (3,25,87,726) - (18,69,31,029) - (26,80,90,641) - (3,25,53,638) Canara Robeco Capital Protection - Growth [` 25,00,000 (Previous Year ` 25,00,000)] Franklin India Corp Bond Opportunities Fund - Growth Franklin India Income Builder Account - Growth Franklin India Income Opportunities Fund - Growth Franklin India Low Duration Fund - Growth Franklin India Savings Plus Fund - Growth As at 31st March, 2016 (` in crore) As at 31st March, 2015 - 34 95 - 68 80 - 115 - 33 - - 23 150 - 27 23 - - - - - - 60 75 790 32 313 88 105 400 195 184 25 300 70 645 88 170 135 1,068 6,004 - 200 150 300 400 75 285 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254- (9,11,243) - (97,58,08,342) - (3,21,07,882) - (30,00,00,000) - (5,30,69,730) - (61,07,51,216) - (12,80,60,101) 48,46,69,171 (33,79,24,449) - (29,42,59,007) - (47,91,71,028) 1,66,50,000 (1,66,50,000) - (66,83,30,981) - (21,42,10,231) - (8,15,59,748) 5,70,000 (5,70,000) - (4,43,27,649) - (6,85,74,208) Franklin India Short Term Income Plan - Growth HDFC Corporate Debt Opportunities Fund – Dividend HDFC Dynamic Bond Fund - Growth HDFC Floating Rate Income Fund - Long Term Plan - Dividend HDFC Gilt Fund - Long Term - Growth HDFC High Interest Fund Short Term Plan - Dividend HDFC Income Fund - Growth HDFC Medium Term Opportunities Plan - Dividend HDFC Short Term Opportunities Fund - Dividend HDFC Short Term Plan - Dividend ICICI Prudential Nifty Exchange Traded Fund IDFC Dynamic Bond Fund - Dividend IDFC Money Manager Fund Investment Plan - Dividend IDFC Super Saver Income Fund - Short Term Plan - Growth Kotak Nifty Exchange Traded Fund - Growth Sundaram Growth Fund - Dividend Sundaram Select Debt Fund - Dividend In Mutual Fund - Unquoted 6,59,60,044 (-) 7,59,94,772 (7,59,94,772) 35,47,37,364 (12,45,78,631) 7,83,14,262 (-) 49,29,88,112 (1,98,28,31,662) - (9,73,33,060) - (6,07,43,008) Axis Enhanced Arbitrage Fund - Dividend Axis Short Term Fund - Growth Axis Short Term Fund - Dividend Baroda Balance Plan - Dividend Birla Sun Life Dynamic Bond Fund - Dividend Birla Sun Life Income Plus Plan - Growth Birla Sun Life Index Fund - Dividend 286 As at 31st March, 2016 (` in crore) As at 31st March, 2015 - - - - - - - 505 - - 149 - - - 50 - - 70 96 365 175 522 - - 250 1,000 150 300 150 625 400 350 300 485 149 725 225 200 50 70 75 - 96 125 - 2,100 600 150 704 6,629 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. As at 31st March, 2016 (` in crore) As at 31st March, 2015 66,33,08,422 (28,92,79,309) 22,34,01,784 (22,34,01,784) - (29,22,23,922) 19,98,33,489 (2,29,32,203) - (60,94,85,042) 8,22,25,877 (7,41,06,213) 10,09,60,780 (2,43,52,942) 16,49,64,780 (-) 71,57,64,96 (71,57,64,96) 2,40,93,515 (2,40,93,515) 2,46,06,581 (2,46,06,581) 15,92,96,546 - 1,84,06,566 (1,84,06,566) - (23,03,028) 13,27,46,938 (4,95,70,718) - (7,22,79,657) - (15,82,42,871) 9,65,71,057 (-) 2,15,42,067 (-) 29,63,61,644 (29,63,61,644) 49,84,18,726 (-) 6,78,03,505 (-) 50,00,000 (50,00,000) 37,50,03,000 (-) 2,03,35,619 (-) Birla Sun Life Short Term Fund - Dividend Birla Sun Life Short Term Fund - Growth Birla Sun Life Dynamic Bond Fund - Growth Birla Sun Life Enhanced Arbitrage Fund - Dividend Birla Sun Life Short Term Opportunities Fund - Dividend Birla Sun Life Treasury Optimizer Plan - Dividend DHFL Pamerica Arbitrage Fund - Dividend DHFL Pamerica Banking and PSU Debt Fund - Bonus DHFL Pamerica Banking and PSU Debt Fund - Dividend DHFL Pamerica Insta Cash Plus - Bonus DHFL Pamerica Insta Cash Plus Fund Super Institutional Plan - Bonus DHFL Pamerica Premier Bond Fund - Dividend DHFL Pamerica Treasury Fund - Bonus DSP Black Rock Strategic Bond Institutional Fund - Dividend DSP Black Rock Banking & PSU Debt Fund - Growth DSP Black Rock Short Term Fund - Growth DSP Black Rock Income Opportunities Fund - Growth Edelweiss Arbitrage Fund - Dividend Franklin India Banking and PSU Debt Fund - Growth HDFC Short Term Opportunities Fund - Growth HDFC Arbitrage Fund - Dividend HDFC Banking and PSU Fund - Growth HDFC Debt Fund for Cancer Cure - 50% Regular Option - Dividend HDFC Floating Rate Income Fund Long Term - Dividend HDFC Gilt Short Term Plan - Growth 690 1,000 - 220 - 950 105 200 75 236 243 200 18 - 150 - - 100 25 400 520 80 5 375 50 300 1,000 549 25 875 850 25 - 75 236 243 - 18 250 50 147 350 - - 400 - - 5 - - 287 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254As at 31st March, 2016 (` in crore) As at 31st March, 2015 - (8,34,43,987) 18,54,84 708 (18,54,84,708) 79,66,20,979 (-) 62,86,60,113 (47,31,50,819) 3,61,78,141 (3,61,78,141) - (66,48,88,122) 48,90,38,446 (18,12,46,791) 9,84,25,197 (-) 1,07,95,80,337 (1,01,65,79,969) 1,27,18,23,490 (7,50,00,000) 8,12,12,898 (8,12,12,898) 11,08,46,926 (11,08,46,926) - (47,47,16,615) - (2,66,12,448) - (50,00,00,000) 1,32,99,287 (-) - (13,37,083) 55,34,30,728 (39,68,11,202) - (10 35,81,344) 3,11,09,279 (-) 22,42,65,435 (-) 87,35,45,547 (-) - (7,48,48,058) 28,30,06,229 (-) 67,95,72,510 (60,22,44,143) HDFC Liquid Fund - Growth HDFC Medium Term Opportunities Fund - Growth HDFC Short Term Opportunities Fund - Division ICICI Prudential Banking & PSU Debt Fund - Dividend ICICI Prudential Banking and PSU Debt Fund - Growth ICICI Prudential Corporate Bond Fund - Dividend ICICI Prudential Equity Arbitrage Fund - Dividend ICICI Prudential Equity Income Fund - Dividend ICICI Prudential Short Term Plan - Dividend ICICI Prudential Ultra Short Term Plan - Dividend ICICI Prudential Blended Plan A - Dividend ICICI Prudential Blended Plan B - Growth ICICI Prudential Income Plan - Dividend ICICI Prudential Long Term Gilt Fund - Growth ICICI Regular Saving Fund - Dividend ICICI Short Term Gilt Fund - Growth IDBI Liquid Fund - Growth IDFC Arbitrage Fund - Dividend IDFC Arbitrage Plus Fund - Dividend IDFC Banking Debt Fund - Growth IDFC Corp Bond Fund - Growth IDFC Dynamic Bond Fund - Dividend IDFC Government Securities Fund - Growth IDFC Money Manager Investment Fund - Dividend IDFC Super Saver Income Fund - Medium Term Plan - Dividend - 241 860 635 50 - 680 100 1,090 1,300 110 200 - - - 50 - 705 - 40 225 1,000 - 300 710 288 230 241 - 475 50 675 255 - 1,025 75 110 200 475 125 500 - 200 505 125 - - - 125 - 625 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.As at 31st March, 2016 (` in crore) As at 31st March, 2015 27,70,26,789 (16,56,58,516) 19,04,43,460 (10,88,83,711) 4,83,12,913 (-) 8,28,91,392 (-) 6,74,35,163 (-) 20,94,33,717 (20,94,33,717) 4,50,68,027 (4,50,68,027) 19,71,60,883 (19,71,60,883) - (13,99,57,033) 5,46,63,541 (-) 2,25,38,225 (-) 17,01,02,554 (13,40,05,771) - (3,81,67,259) - (3,15,22,512) 12,43,75,652 (-) 51,23,10,625 (20,50,03,232) 14,27,13,144 (-) 4,05,61,808 (-) - (16,88,74,261) - (11,16,73,351) 4,92,02,764 (2,00,00,000) 5,79,076 (5,79,076) - (15,01,53,208) 26,03,88,208 (10,00,92,744) 4,46,61,818 (-) IDFC Super Saver Income Fund- Short Term Plan - Dividend IDFC Super Saver Income Fund - Short Term - Growth Indiabulls Arbitrage Fund - Dividend Indiabulls Blue Chip Fund - Dividend Indiabulls Income Fund - Growth JM Arbitrage Advantage Fund - Bonus JM Money Manager Fund - Super Plan - Bonus JM Money Manager Fund - Super Plus Plan - Bonus JPMorgan India Active Bond Fund - Dividend Kotak 50 Direct Fund - Dividend Kotak Banking & PSU Debt Fund - Growth Kotak Bond Short Term Plan - Growth Kotak Bond Fund - Plan A - Dividend Kotak Bond Scheme - Plan A - Growth Kotak Bond Short Term - Dividend Kotak Equity Arbitrage - Dividend Kotak Equity Savings Scheme - Dividend Kotak Flexi Debt Fund - Growth Kotak Income Opportunities Fund - Dividend Kotak Medium Term Fund - Dividend L&T Arbitrage Opportunities Fund L&T Cash Bonus Liquid Fund L&T Income Opportunity - Dividend L&T Short Term Opportunities Fund- Dividend L&T Short Term Opportunities Fund - Growth 295 475 50 125 85 208 44 199 - 250 75 404 - - 126 940 150 75 - - 50 59 - 265 64 175 275 - - - 208 44 199 200 - - 304 150 125 - 315 - - 190 125 20 59 150 100 - 289 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254As at 31st March, 2016 (` in crore) As at 31st March, 2015 10,75,21,101 (10,75,21,101) - (11,76 732) - (4,72,07,221) 65,73,20,449 (9,52,48,074) 50,36,49,969 (-) - (11,53,39,989) - (4,66,24,829) 77,03,25,139 (65,66,28,473) - (7,60,51,576) - (97,40,32,447) 1,66,55,55,075 (1,36,24,06,377) 5,42,06,239 (1,55,32,291) 6,03,55,015 (6,03,55,015) 7,72,821 (-) - (2,33,47,858) 17,98,180 (17,98,180) 16,10,744 (5,58,353) 24,64,62,740 (5,08,30,350) - (23,19,53,980) - (3,18,960) 47,97,91,326 (39,21,38,152) 17,81,54,863 (17,81,54,863) 30,09,68,369 (30,09,68,369) 9,57,31,798 (9,57,31,798) 57,52,39,255 (34,20,77,650) L&T Triple Ace Bond Fund - Bonus LIC Nomura Liquid Fund - Growth LIC Nomura Savings Plus Fund - Growth Reliance Arbitrage Advantage Fund - Dividend Reliance Banking and PSU Debt Fund - Dividend Reliance Corporate Bond Fund - Growth Reliance Corporate Bond Fund - Dividend Reliance Floating Rate Fund - Short Term Plan - Dividend Reliance Income Fund - Growth Reliance Regular Savings Fund - Debt Plan - Dividend 133 - - 695 525 - - 795 - - Reliance Short Term Fund - Dividend 1,755 Religare Invesco Arbitrage Fund - Dividend Religare Invesco Arbitrage - Bonus Reliance Invesco Bank Debt Fund - Growth Religare Invesco Growth Fund – Dividend Religare Invesco Short Term Fund - Growth Religare Invesco Short Term Fund - Dividend SBI Arbitrage Opportunity Fund - Dividend SBI Dynamic Bond Fund - Growth SBI Premier Liquid Fund - Growth SBI Short Term Debt Fund - Growth Sundaram Flexible Fund Short Term Plan - Bonus Sundaram Money Fund - Bonus Sundaram Select Debt Short Term Asset Plan - Bonus Tata Short Term Bond Fund - Dividend 70 65 100 - 295 225 340 - - 687 175 272 100 805 290 133 283 100 100 - 125 50 675 350 1,000 1,425 20 65 - 50 295 75 70 400 70 537 175 272 100 475 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.As at 31st March, 2016 (` in crore) As at 31st March, 2015 - (8,73,988) 15,54,28,334 (-) - (25,00,00,000) - (25,58,386) - (12,03,386) - (12,62,99,078) 23,13,94,231 (52,77,23,010) 56,47,36,316 (35,25,25,179) 8,00,26,087 (-) UTI Liquid Fund - Cash Plan - Growth UTI Banking and PSU Debt Fund UTI Bond Fund - Dividend UTI Floating Rate Fund - Dividend UTI Floating Rate Fund - Growth UTI Income Opportunities Fund - Growth UTI Short Term Income Fund Institutional Plan - Dividend UTI Short Term Income Fund Institutional Plan - Growth UTI Spread Fund - Regular - Dividend In Treasury Bills - Quoted In Commercial Paper - Unquoted Small Industries Development Bank Of India Limited In Certificate of Deposits - Unquoted Andhra Bank Axis Bank Canara Bank Corporation Bank IDBI Bank Indian Bank Oriental Bank of Commerce Total Current Investments Aggregate amount of quoted investments Market Value of quoted investments Aggregate amount of unquoted investments * Includes ` 2,285 crore (Previous Year ` 1,015 crore) given as collateral security. 200 - 250 300 239 160 550 518 - 3 230 644 - 2,624 461 969 736 - 184 - - - - 246 918 125 - - - 208 197 463 1,387 - - 27,615 - - 2,255 39,429 9,559 9,949 29,870 26,186 3 230 5,434 50,515 18,350 19,158 32,165 291 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review14825525637938039655147025414. INVENTORIES Raw Materials (Including Material In Transit) Stock-in-Process Finished Goods Stores, Chemicals and Packing Materials Stock-in-Trade Total 15. TRADE RECEIVABLES (Unsecured and Considered Good) Outstanding for a period exceeding six months Others Total 16. CASH AND BANK BALANCES Cash and Cash Equivalents: Cash on Hand Bank Balances: In Current Accounts* In Deposit ** As at 31st March, 2016 (` in crore) As at 31st March, 2015 14,285 2,871 7,595 3,215 68 28,034 18,974 5,209 9,409 2,872 87 36,551 As at 31st March, 2016 (` in crore) As at 31st March, 2015 104 3,391 3,495 80 4,581 4,661 As at 31st March, 2016 (` in crore) As at 31st March, 2015 16 438 6,438 6,892 15 1,002 10,554 11,571 Total * ** Include towards Unclaimed Dividend of ` 223 crore (Previous Year ` 199 crore). Includes Deposits of ` 500 crore (Previous Year ` 10,64,942) with maturity of more than 12 months. 16.1 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. 17. 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 # Includes primarily Interest Receivable. 292 As at 31st March, 2016 (` in crore) As at 31st March, 2015 4,973 3,400 1,190 2,375 11,938 6,763 2,490 988 2,066 12,307 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 18. OTHER CURRENT ASSETS Interest Accrued on Investment Total 19. SALE OF PRODUCTS Particulars of Sale of Products Petroleum Products Petrochemical Products Oil & Gas Others Total 20. 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 FMP Income Other Non Operating Income Total 21. COST OF MATERIALS CONSUMED Imported Indigenous Total 21.1 Particulars of Materials Consumed Particulars Crude Oil Others Total As at 31st March, 2016 (` in crore) As at 31st March, 2015 776 776 2015-16 1,69,305 76,903 4,259 633 2,51,100 2015-16 3,936 691 1,331 1,452 172 7,582 547 547 (` in crore) 2014-15 2,45,160 89,944 4,907 716 3,40,727 (` in crore) 2014-15 5,414 250 1,282 1,764 11 8,721 301 1,054 4,059 243 7 1,000 282 563 1,070 2,303 645 46 1,261 70 (` in crore) 2015-16 % of Consumption (` in crore) 2014-15 % of Consumption 1,40,109 12,660 1,52,769 91.71 8.29 100.00 2,32,867 23,131 2,55,998 90.96 9.04 100.00 2015-16 1,38,914 13,855 1,52,769 (` in crore) 2014-15 2,37,505 18,493 2,55,998 293 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254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 Total 23. EMPLOYEE BENEFITS EXPENSE Salaries and Wages Contribution to Provident and other Funds Staff Welfare Expenses Total 2015-16 (` in crore) 2014-15 9,496 5,209 10,534 14,705 10,143 6,546 16,689 41 7,663 2,871 9,496 5,209 14,705 - 14,705 4,171 2015-16 3,730 226 304 4,260 16,648 1,943 (` in crore) 2014-15 3,125 297 264 3,686 23.1 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 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. 2015-16 95 12 38 (` in crore) 2014-15 93 14 30 Defined Benefit Plan The employees’ gratuity funds scheme managed by a Trust (Life Insurance Corporation of India for SEZ unit of the Company) is a defined benefit plan. I) Reconciliation of opening and closing balances of Defined Benefit Obligation Particulars Defined Benefit Obligation at beginning of the year Current Service Cost Interest Cost Actuarial (Gain) / Loss Benefits Paid Defined Benefit Obligation at year end Gratuity (Funded) (` in crore) Compensated Absences (Unfunded) 2015-16 615 33 49 10 (50) 657 2014-15 521 30 42 61 (39) 615 2015-16 236 10 19 13 (27) 251 2014-15 189 9 15 47 (24) 236 294 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. II) Reconciliation of opening and closing balances of fair value of Plan Assets Fair value of Plan Assets at beginning of year Expected Return on Plan Assets Actuarial Gain / (Loss) Employer Contribution Benefits Paid Fair value of Plan Assets at year end Actual return on Plan Assets III) Reconciliation of fair value of Assets and Obligations Gratuity (Funded) 2015-16 615 49 9 34 (50) 657 58 (` in crore) 2014-15 521 42 9 82 (39) 615 51 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 V) Investment Details : GOI Securities Public Securities State Government Securities Insurance Policies Others (including bank balances) VI) Actuarial assumptions Mortality Table (IALM) Discount Rate (per annum) Expected rate of return on Plan Assets (per annum) Rate of escalation in Salary (per annum) Gratuity (Funded) As at 31st March (` in crore) Compensated Absences (Unfunded) As at 31st March 2016 657 657 - 2015 615 615 - 2016 - 251 251 2015 - 236 236 Gratuity (Funded) 2015-16 33 49 (49) 1 34 2014-15 30 42 (42) 52 82 (` in crore) Compensated Absences (Unfunded) 2015-16 10 19 - 13 42 2014-15 9 15 - 47 71 As at 31st March, 2016 ` in crore % Invested 3.04 1.52 0.15 89.81 5.48 100.00 20 10 1 590 36 657 As at 31st March, 2015 ` in crore % Invested 3.42 3.79 0.78 91.04 0.97 100.00 21 23 5 560 6 615 Gratuity (Funded) Compensated Absences (Unfunded) 2015-16 2006-08 (Ultimate) 8% 8% 6% 2014-15 2006-08 (Ultimate) 8% 8% 6% 2015-16 2006-08 (Ultimate) 8% - 6% 2014-15 2006-08 (Ultimate) 8% - 6% 295 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254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 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 As at 31st March, 2016 657 657 - 10 9 2015 615 615 - 61 9 2014 521 521 - (16) 3 (` in crore) 2012 436 394 42 17 2 2013 500 503 (3) 26 10 VIII) The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2015-16. 23.2 The Company had announced Voluntary Separation Scheme (VSS) for the employees of Allahabad & Nagpur Manufacturing Divisions (Previous Year Silvassa Manafacturing Division) during the year. A sum of ` 156 crore (Previous Year ` 32,00,000) has been paid during the year and debited to the Profit and Loss Statement under the head “Employee Benefits Expense”. 24. FINANCE COSTS Interest Expenses* Other Borrowing Costs Applicable loss on foreign currency transactions and translation Total 2015-16 1,527 10 917 2,454 * Interest Expenses are net of Interest Capitalised of ` 2,302 crore (Previous Year ` 1,062 crore) (Refer Note No. 10.5) 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 Selling and Distribution Expenses Warehousing and Distribution Expenses Sales Tax / VAT Other Selling and Distribution Expenses 296 4,765 9,738 1,224 58 1,084 1 448 10 5,871 1,415 975 (` in crore) 2014-15 1,540 12 815 2,367 (` in crore) 2014-15 2015-16 4,702 12,299 1,325 35 957 69 304 2 17,328 19,693 5,521 1,063 822 8,261 7,406 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 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 2015-16 (` in crore) 2014-15 1,307 899 107 894 144 245 162 25 37 676 514 387 107 721 171 267 159 22 34 805 Less: Transferred to Project Development Expenditure Total 4,496 2,507 27,578 3,187 1,573 28,713 # * 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 ` Nil (Previous Year ` 26,96,800). 25.1 Value of Stores, Chemicals and Packing Materials Consumed : Imported Indigenous Total 25.2 Payment to Auditors as : 2015-16 2014-15 ` in crore 1,810 2,955 4,765 % of Consumption 37.99 62.01 100.00 ` in crore 2,176 2,526 4,702 % of Consumption 46.28 53.72 100.00 2015-16 (` in crore) 2014-15 Particulars (a) Auditor: Statutory Audit Fees Tax Audit Fees Certification and Consultation Fees Cost Audit Fees (b) (c) Total Certification and consultation fees primarily includes certification fees paid to auditors. Statutes and regulation require auditors to certify export documentation, quarterly filings, XBRL filings, transfer pricing and bond issuances among others 10 1 13 1 25 9 1 11 1 22 25.3 Corporate Social Responsibility (CSR) (a) (b) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the company during the year is ` 558 crore (Previous Year ` 533 crore) Expenditure related to Corporate Social Responsibility is ` 652 crore (Previous Year ` 761crore). Details of Amount spent towards CSR given below: Particulars Rural Transformation Health Education Sports for Development Others Total 2015-16 107 314 215 9 7 652 (` in crore) 2014-15 127 608 18 4 4 761 (c) (d) Out of note (b) above, ` 578 crore (Previous Year ` 729 crore) is spent through Reliance Foundation, a related party. Out of note (b) above, ` 7 crore (Previous Year ` Nil) is towards construction / acquisition of an asset that will be owned by the Company. 297 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 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 ` 16 crore for SEZ units) Repairs to Building (Includes ` 3 crore for SEZ units) (Previous Year ` 42,20,904) Employee benefits expense (Includes ` 12,44,230 for SEZ units) Sales Promotion Expenses (Includes ` 81,483 for SEZ units) Brokerage and Commission (Includes ` 12 crore for SEZ units) Ocean Freight (Includes ` 663 crore for SEZ units) Warehousing and Distribution Expenses (Includes ` 1,539 crore for SEZ units) Insurance (Includes ` 18,86,344 for SEZ units) Rent Rates & Taxes Other Repairs (Includes ` 3 crore for SEZ units) Travelling Expenses Professional Fees (Includes ` 8 crore for SEZ units) Charity and Donations Labour processing, production royalty and hire charges Bank Charges (Includes ` 7 crore for SEZ units) General Expenses (Includes ` 14 crore for SEZ units) Interest Expenses (Includes ` 309 crore for SEZ units) 2015-16 1,46,516 4,142 13,897 2015-16 (` in crore) 2014-15 2,41,456 3,217 9,788 (` in crore) 2014-15 2,273 2,812 87 3 15 40 274 1,258 1,936 2 1 1 12 22 314 8 17 23 202 1,525 2015-16 30 - 19 40 224 949 2,060 1 2 1 37 26 225 12 12 23 94 1,218 (` in crore) 2014-15 28. EARNINGS IN FOREIGN EXCHANGE FOB Value of Exports [Excluding captive transfers to Special Economic Zone of ` 14,856 crore (Previous Year ` 17,343 crore)] Interest Others (includes Guarantee Commission) 1,37,634 2,09,169 13 185 24 205 298 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.29. REMITTANCE IN FOREIGN CURRENCY ON ACCOUNT OF DIVIDEND The Company has paid dividend in respect of shares held by Non-Residents on repatriation basis. This inter-alia includes portfolio investment and direct investment, where the amount is also credited to Non-Resident External Account (NRE A/c). The exact amount of dividend remitted in foreign currency cannot be ascertained. The total amount remittable in this respect is given herein below: a) b) c) Number of Non Resident Shareholders Number of Equity Shares held by them Amount of Dividend Paid (Gross) (i) (` in Crore) Tax Deducted at Source Year to which dividend relates (ii) (iii) 2015-16 (Interim Dividend) 34,293 64,44,72,823 2015-16 (Final Dividend) 34,666 63,39,06,335 2014-15 (Final Dividend) 34,412 65,46,96,249 677 - 2015-16 634 - 2014-15 2015-16 622 - 2013-14 2014-15 30. EARNINGS PER SHARE (EPS) i) ii) iii) iv) Net Profit after Tax as per Profit and Loss Statement attributable to Equity Shareholders (` in crore) Weighted Average number of Equity Shares used as denominator for calculating EPS Basic and Diluted Earnings per Share (`) Face Value per Equity Share (`) 27,417 22,719 3,23,83,16,609 3,23,42,13,408 84.66 10.00 70.25 10.00 30.1 Based on alternate interpretation for calculation of Diluted EPS as per Accounting Standard (AS) 20, the Diluted EPS for the year ended March’ 16 and year ended March’15 are ` 84.49 and ` 70.09 respectively. 31. RELATED PARTIES 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 6 7 8 9 10 11 12 Adventure Marketing Private Limited # AETN18 Media Private Limited # Affinity Names Inc. Aurora Algae Pty Ltd (From 21.04.2015) Aurora Algae RGV LLC (From 21.04.2015) Aurora Algea Inc. (From 21.04.2015) Bhagyashri Mercantile Private Limited (Amalgamated with Model Economic Township Limited w.e.f. 04.05.2015) Big Tree Entertainment Private Limited # Big Tree Entertainment Singapore Pte. Ltd # (From 04.11.2015) Capital18 Fincap Private Limited # Central Park Enterprises DMCC Chitrani Mercantile Private Limited (Amalgamated with Model Economic Township Limited w.e.f. 04.05.2015) Colorful Media Private Limited # Colosceum Media Private Limited # Delta Corp East Africa Limited 13 14 15 # Control by Independent Media Trust of which RIL is the sole beneficiary Subsidiary 299 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 Name of the Related Party Relationship Sr. No. 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Digital18 Media Limited # E-18 Limited # e-Eighteen.com Limited # Equator Trading Enterprises Private Limited # Ethane Crystal LLC Ethane Emerald LLC Ethane Opal LLC Ethane Pearl LLC Ethane Sapphire LLC Ethane Topaz LLC Fantain Sports Private Limited # (From 17.02.2016) Gapco Kenya Limited Gapco Tanzania Limited Gapco Uganda Limited Gapoil (Zanzibar) Limited GenNext Holding Investments LLC ** Gopesh Commercials Private Limited (Amalgamated with Model Economic Township Limited w.e.f. 04.05.2015) Greycells18 Media Limited # Gulf Africa Petroleum Corporation Ibn18 Mauritius Limited # Indiawin Sports Private Limited Infomedia Press Limited # Kanhatech Solutions Limited Model Economic Township Limited Moneycontrol Dot Com India Limited # Nemita Commercials Private Limited (Amalgamated with Model Economic Township Limited w.e.f. 04.05.2015) Network18 Holdings Limited # Network18 HSN Plc # Network18 Media & Investments Limited # Nisarga Commercials Private Limited (Amalgamated with Model Economic Township Limited w.e.f. 04.05.2015) Panorama Television Private Limited # Prakruti Commercials Private Limited (Amalgamated with Model Economic Township Limited w.e.f. 04.05.2015) Prism TV Private Limited # (Ceased to be subsidiary from 31.07.2015) RB Holdings Private Limited # RB Media Holdings Private Limited # RB Mediasoft Private Limited # Recron (Malaysia) Sdn Bhd Reed Infomedia India Private Limited # Reliance Aerospace Techonologies Limited Reliance Ambit Trade Private Limited Reliance Aromatics and Petrochemicals Limited Reliance Brands Limited 48 49 50 51 52 53 54 55 56 57 # Control by Independent Media Trust of which RIL is the sole beneficiary ** Formerly known as Reliance Marcellus Holding LLC 300 Subsidiary Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Sr. No. 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 Name of the Related Party Relationship Reliance Chemicals Limited Reliance Clothing India Private Limited Reliance Commercial Land & Infrastructure Limited Reliance Comtrade Private Limited Reliance Corporate IT Park Limited Reliance do Brasil Indústria e Comércio de Produtos Têxteis, Químicos, Petroquímicos e Derivados Limiteda Reliance Eagleford Midstream LLC Reliance Eagleford Upstream GP LLC Reliance Eagleford Upstream Holding LP Reliance Eagleford Upstream LLC Reliance Eminent Trading & Commercial Private Limited Reliance Energy and Project Development Limited Reliance Energy Generation and Distribution Limited Reliance Ethane Holding Pte. Limited Reliance Exploration & Production DMCC Reliance Gas Pipelines Limited Reliance Global Business B.V. Reliance Global Commercial Limited Reliance Global Energy Services (Singapore) Pte. Limited Reliance Global Energy Services Limited Reliance Holding Acquisition Corp (From 29.01.2016) Reliance Holding USA, Inc. Reliance Industrial Investments and Holdings Limited Reliance Industries (Middle East) DMCC Reliance Innovative Building Solutions Private Limited Reliance Jio AsiaInfo Innovation Centre Limited (From 10.06.2015) Reliance Jio Digital Services Private Limited Reliance Jio Global Resources LLC Reliance Jio Infocomm Limited Reliance Jio Infocomm Pte. Limited Reliance Jio Infocomm UK Limited Reliance Jio Infocomm USA Inc. Reliance Jio Infratel Private Limited (From 17.02.2016) Reliance Jio Media Limited Reliance Jio Messaging Services Private Limited Reliance Lifestyle Holdings Limited Reliance Marcellus II LLC Reliance Marcellus LLC Reliance Payment Solutions Limited Reliance Petro Marketing Limited Reliance Petroinvestments Limited Reliance Polyolefins Limited Reliance Progressive Traders Private Limited Reliance Prolific Commercial Private Limited Reliance Prolific Traders Private Limited # Control by Independent Media Trust of which RIL is the sole beneficiary Subsidiary 301 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Name of the Related Party Relationship Sr. No. 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 Reliance Retail Finance Limited Reliance Retail Insurance Broking Limited Reliance Retail Limited Reliance Retail Ventures Limited Reliance Sibur Elastomers Private Limited Reliance Strategic Investments Limited Reliance Textiles Limited Reliance Trading Limited Reliance Universal Commercial Limited Reliance Universal Enterprises Limited Reliance Universal Traders Private Limited Reliance USA Gas Marketing LLC Reliance Vantage Retail Limited Reliance Ventures Limited Reliance World Trade Private Limited ^ Reliance Supply Solutions Private Limited ** Reliance-GrandOptical Private Limited Resolute Land Consortium Projects Limited (Ceased to be subsidiary from 29.02.2016) RIL (Australia) Pty Limited RIL Exploration and Production (Myanmar) Company Limited (From 11.09.2015) RIL USA, Inc. RP Chemicals (Malaysia) Sdn Bhd (From 11.02.2016) RRB Investments Private Limited # RRB Mediasoft Private Limited # RRK Finhold Private Limited # RVT Finhold Private Limited # RVT Media Private Limited # Setpro18 Distribution Limited # SpaceBound Web labs Private Limited # (From 23.04.2015) Stargaze Entertainment Private Limited # (Upto 23.04.2015) Strategic Manpower Solutions Limited Surela Investment and Trading Private Limited Television Eighteen Mauritius Limited # Television Eighteen Media and Investments Limited # Transenergy (Kenya) Limited (Liquidated w.e.f. 31.12.2015) TV18 Broadcast Limited # TV18 Home shopping Network Limited # Vijayant Commercials Private Limited (Amalgamated with Model Economic Township Limited w.e.f. 04.05.2015) 141 Watermark Infratech Private Limited # 142 Wave Land Developers Limited 143 Web18 Holdings Limited # 144 Web18 Software Services Limited # 145 146 Independent Media Trust Petroleum Trust # Control by Independent Media Trust of which RIL is the sole beneficiary ^ Control by Petroleum Trust of which RIL is the sole beneficiary ** Formerly known as Office Depot Reliance Supply Solutions Private Limited 302 Subsidiary Company / Subsidiary is a beneficiary Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Name of the Related Party Sr. No. 147 Gujarat Chemical Port Terminal Company Limited 148 149 150 151 152 153 154 155 156 157 158 159 160 161 Indian Vaccines Corporation Limited Reliance Commercial Dealers Limited Reliance Europe Limited Reliance Gas Transportation Infrastructure Limited Reliance Industrial Infrastructure Limited Reliance LNG Limited Reliance Ports and Terminals Limited Reliance Utilities and Power Private Limited Shri Mukesh D. Ambani Shri Nikhil R. Meswani Shri Hital R. Meswani Shri P. M. S. Prasad Shri P. K. Kapil Smt. Nita M. Ambani 162 Dhirubhai Ambani Foundation 163 Hirachand Govardhandas Ambani Public Charitable Trust 164 HNH Trust and HNH Research Society 165 166 Jamnaben Hirachand Ambani Foundation Reliance Foundation (ii) Transactions during the year with related parties : Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Purchase of Fixed Assets Purchase / Subscription of Investments Sale / Redemption of Investments Capital Advance Given/ (Returned) Net Loans and Advances, Deposits given/ (Returned) Revenue from Operations Other Income Purchases / Material Consumed Electric Power, Fuel and Water 10. Hire Charges Relationship Associates Key Managerial Personnel Relative of Key Managerial Personnel Enterprises over which Key Managerial Personnel are able to exercise significant influence Key Managerial Personnel/ Relative - - - - - - - - - - - - - - - - - - - - (` in crore) Others Total - - - - - - - - - - - - - - - - - - - - 2,539 2,698 38,085 11,506 422 150 - (8) (11,870) 299 25,226 24,823 1,738 1,563 2,832 1,829 1,719 1,579 585 622 303 2,302 2,434 38,085 11,506 422 150 - - (11,913) 133 24,925 24,395 1,721 1,536 2,201 1,562 - - - - 237 264 - - - - - (8) 43 166 301 428 17 27 631 267 1,719 1,579 585 622 Nature of Transactions (Excluding Reimbursements) Subsidiaries/ Beneficiary Associates Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 Sr. No. Nature of Transactions (Excluding Reimbursements) Subsidiaries/ Beneficiary Associates 11. Employee Benefit Expense 12. Payment to Key Managerial Personnel/Relative 13. Sales and Distribution Expenses 14. Rent 15. Professional Fees 16. General Expenses 17. Donations 18. Finance Costs Balances as at 31st March 2016 1. Investments 2. 3. 4. 5. 6. 7. 8. Trade Receivables Loans and Advances Deposits Trade and Other Payables* Finance Lease Obligations Financial Guarantees Performance Guarantees 210 10 - - 178 147 - - 1,244 990 25 45 - - 10 12 81,421 43,758 2,210 2,396 15,099 26,743 - - 456 462 94 121 35,897 33,685 192 159 - - - - 2,609 2,767 8 7 39 42 430 293 - - - - 2,085 2,085 35 21 3 9 1,714 1,666 315 253 - - 1,837 1,733 135 115 Key Managerial Personnel/ Relative - - 54 48 - - - - - - - - - - - - - - - - - - - - - - - - - - - - (` in crore) Others Total - - - - - - - - - - - - 603 742 - - - - - - - - - - - - - - - - - - 210 10 54 48 2,787 2,914 8 7 1,283 1,032 455 338 603 742 10 12 83,506 45,843 2,245 2,417 15,102 26,752 1,714 1,666 771 715 94 121 37,734 35,418 327 274 Note : Figures in italic represents Previous Year’s amounts. * Includes reimbursements Disclosure in Respect of Major Related Party Transactions during the year : Particulars 1 Purchase of Fixed Assets Recron (Malaysia) Sdn. Bhd. Reliance Corporate IT Park Limited Reliance Eminent Trading & Commercial Private Limited Reliance Petro Marketing Limited Reliance Progressive Traders Private Limited Reliance Retail Limited 304 Relationship 2015-16 2014-15 (` in crore) Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary 106 2,044 75 6 - 27 100 1,963 105 1 215 31 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 2 3 4 5 Particulars Reliance Sibur Elastomers Private Limited Reliance Universal Traders Private Limited Gujarat Chemical Port Terminal Company Limited Reliance Gas Transportation Infrastructure Limited Reliance Industrial Infrastructure Limited Reliance Ports and Terminals Limited Reliance Utilities and Power Private Limited Purchase / Subscription of Investments Reliance Ambit Traders Private Limited Reliance Energy Generation and Distribution Limited Reliance Ethane Holding Pte. Limited Reliance Gas Pipelines Limited Reliance Industrial Investments and Holdings Limited Reliance Industries (Middle East) DMCC Reliance Jio Infocomm Limited Reliance Jio Messaging Services Private Limited Reliance Progressive Traders Private Limited Reliance Prolific Commercial Private Limited Reliance Prolific Traders Private Limited Reliance Sibur Elastomers Private Limited Reliance Universal Traders Private Limited Independent Media Trust Sale / Redemption of Investments Reliance Global Business B.V. Reliance Industries (Middle East) DMCC Capital Advances Given / (Returned) Reliance Industrial Infrastructure Limited Reliance Utilities and Power Private Limited Net Loans and Advances, Deposits Given / (Returned) 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 Industries (Middle East) DMCC Reliance Retail Limited Reliance Strategic Investments Limited Reliance Ventures Limited Gujarat Chemical Port Terminal Company Limited Reliance Commercial Dealers Limited Relationship 2015-16 2014-15 (` in crore) Subsidiary Subsidiary Associate Associate Associate Associate Associate Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Company / Subsidiary is a beneficiary Subsidiary Subsidiary Associate Associate Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Associate Associate 43 - - - 3 166 68 7 3,263 399 303 14,091 2,217 15,000 74 60 5 122 243 24 2,277 - 422 - - 713 (3,263) - (33) (10,573) 482 - 903 (142) 23 20 - 18 2 46 8 198 10 20 - 752 215 1,100 - 7,052 1 - 30 1,236 - 11 1,089 150 - (3) (5) 1,846 - (78) - (1,782) - (1,737) 1,650 234 11 155 305 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review1482552563793803965514702546 7 Particulars Revenue from Operations Gapco Kenya Limited Recron (Malaysia) Sdn. Bhd. Reliance Corporate IT Park Limited Reliance Gas Pipelines Limited Reliance Global Energy Services (Singapore) Pte. Ltd. Reliance Industrial Investments and Holdings Limited Reliance Jio Infocomm Limited Reliance Petro Marketing Limited Reliance Retail Limited Reliance Sibur Elastomers Private Limited RIL USA, Inc. Reliance Commercial Dealers Limited Reliance Gas Transportation Infrastructure Limited Reliance Ports and Terminals Limited Reliance Utilities and Power Private Limited Other Income Gapco Kenya Limited Gapco Tanzania Limited Gapco Uganda Limited Recron (Malaysia) Sdn. Bhd. Reliance Corporate IT Park Limited Reliance Exploration & Production DMCC Reliance Gas Pipelines Limited Reliance Global Energy Services (Singapore) Pte. Ltd. Reliance Holding USA, Inc. Reliance Industrial Investments and Holdings Limited Reliance Industries (Middle East) DMCC Reliance Jio Infocomm Limited Reliance Retail Limited Reliance Sibur Elastomers Private Limited Reliance Strategic Investments Limited Reliance Ventures Limited RIL USA, Inc. Gujarat Chemical Port Terminal Company Limited Reliance Europe Limited Reliance Ports and Terminals Limited Reliance Utilities and Power Private Limited 8 Purchases / Material Consumed Reliance Industries (Middle East) DMCC Reliance Petro Marketing Limited Gujarat Chemical Port Terminal Company Limited Reliance Gas Transportation Infrastructure Limited 306 Relationship 2015-16 2014-15 (` in crore) Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Associate Associate Associate Associate Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Associate Associate Associate Associate Subsidiary Subsidiary Associate Associate 9,373 468 1 3 3,915 924 522 2,232 188 2 7,297 13 47 5 236 2 3 1 7 353 - 2 11 138 816 - 37 - 6 287 54 4 - 13 1 3 9,089 2,013 2 4 1,969 1,064 415 644 210 - 8,985 15 49 - 363 2 3 1 8 205 1 1 2 149 812 23 42 61 - 157 61 8 10 13 1 3 2,200 1 - - 1,561 1 3 3 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Particulars Reliance Industrial Infrastructure Limited Reliance Ports and Terminals Limited Electric Power, Fuel and Water Reliance Utilities and Power Private Limited Hire Charges Gujarat Chemical Port Terminal Company Limited Reliance Gas Transportation Infrastructure Limited Reliance Industrial Infrastructure Limited Reliance Ports and Terminals Limited Employee Benefits Expense Reliance Retail Limited Reliance Corporate IT Park Limited 9 10 11 12 Payment To Key Managerial Personnel / Relative Shri Mukesh D. Ambani Shri Nikhil R. Meswani Shri Hital R. Meswani Shri PMS Prasad Shri P. K. Kapil Smt Nita M. Ambani 13 14 15 Sales and Distribution Expenses Recron (Malaysia) Sdn. Bhd. Reliance Retail Limited Gujarat Chemical Port Terminal Company Limited Reliance Ports and Terminals Limited Rent Reliance Industrial Infrastructure Limited Professional Fees Reliance Corporate IT Park Limited Reliance Europe Limited Reliance Industrial Infrastructure Limited (` in crore) Relationship 2015-16 2014-15 Associate Associate 19 611 19 241 Associate 1,719 1,579 Associate Associate Associate Associate Subsidiary Subsidiary Key Managerial Personnel Key Managerial Personnel Key Managerial Personnel Key Managerial Personnel Key Managerial Personnel Relative of Key Managerial Personnel 117 214 34 220 8 202 15 14 14 7 3 1 90 194 37 301 10 - 15 12 12 6 2 1 Subsidiary Subsidiary Associate Associate 178 - 33 2,576 146 1 16 2,751 Associate 8 7 Subsidiary Associate Associate 1,244 33 6 990 25 17 307 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review14825525637938039655147025416 17 Particulars General Expenses Big Tree Entertainment Private Limited Indiawin Sports Private Limited Reliance Retail Limited Reliance Commercial Dealers Limited Reliance Europe Limited Reliance Ports and Terminals Limited Donations Hirachand Govardhandas Ambani Public Charitable Trust Jamnaben Hirachand Ambani Foundation Reliance Foundation 18 Finance Costs Reliance Corporate IT Park Limited Balances as at 31st March, 2016 1 2 Loans and 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 Gas Pipelines Limited Reliance Holding USA, Inc. Reliance Industrial Investments and Holdings Limited Reliance Industries (Middle East) DMCC Reliance Strategic Investments Limited Reliance Ventures Limited Gujarat Chemical Port Terminal Company Limited Reliance Europe Limited Deposits Gujarat Chemical Port Terminal Company Limited Reliance Commercial Dealers Limited Reliance Ports and Terminals Limited Reliance Utilities and Power Private Limited 308 Relationship 2015-16 2014-15 (` in crore) Subsidiary Subsidiary Subsidiary Associate Associate Associate Others Others Others 2 - 23 418 - 12 4 15 584 1 13 31 282 7 3 2 4 735 Subsidiary 10 12 Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Associate Associate Associate Associate Associate Associate 2 - - - - 3,823 - 35 7,321 482 3,283 153 - 3 139 175 1,050 350 2 3 1 8 1 2,976 3,263 33 - 17,890 - 2,263 302 6 3 111 155 1,050 350 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 32.1 Disclosure of the Company’s Interest in Oil and Gas Joint Ventures (Jointly Controlled Assets): Partners and their Participating Interest (PI) Country Sr. No. 1 Name of the Fields in the Joint Ventures Panna Mukta Company’s % Interest 30% (30%) BG Exploration & Production India Limited - 30% ; Tapti 30% (30%) BG Exploration & Production India Limited - 30% ; Oil and Natural Gas Corporation Limited - 40% Oil and Natural Gas Corporation Limited - 40% NEC - OSN - 97/2 60% (60%) Niko (NELPIO) Limited - 10% * ; BP Exploration (Alpha) Limited - 30% KG - DWN - 98/3 60% (60%) Niko (NECO) Limited - 10% ; BP Exploration (Alpha) Limited - 30% India India India India GS - OSN - 2000/1 CY-DWN-2001/2 CB-ONN-2003/1 Block M-17 90% 70% 70% 96% (90%) Hardy Exploration and Production (India) Inc. - 10% (70%) BP Exploration (Alpha) Limited - 30% (70%) BP Exploration (Alpha) Limited - 30% (96%) United National Resources Development Services Company India India India Myanmar Limited (UNRD) - 4% Block M-18 96% (96%) United National Resources Development Services Company Myanmar 2 3 4 5 6 7 8 9 Figures in bracket represent Previous Year’s (%) Interest. Limited (UNRD) - 4% * During the year, Niko (NELPIO) Limited withdrew from Joint Operating Agreement. RIL will assume the Participating Interest of Niko (NELPIO) Limited in proportion to RIL’s Interest in Joint Operating Agreement. The assignment process is underway. 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 in India (Million MT) Proved Developed Reserves in India (Million MT) 2015-16 2014-15 2015-16 2014-15 1.96 2.78 (0.42) 4.32 2.47 (0.06) (0.45) 1.96 1.47 - (0.42) 1.05 2.09 (0.17) (0.45) 1.47 Proved Reserves in India (Million M3*) Proved Developed Reserves in India (Million M3*) 2015-16 2014-15 2015-16 2014-15 65,741 9,008 (3,018) 71,731 86,230 (17,047) (3,442) 65,741 18,812 (1,212) (3,018) 14,582 15,444 6,810 (3,442) 18,812 * 1 cubic meter (M3) = 35.315 cubic feet, 1 cubic feet = 1000 BTU and 1 MT = 7.5 bbl (b) (c) In case of producing field and fields where development of drilling activities are 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. The reserves estimates related to KGD6 and CBM have been revised. During the year, the Company recognized reserves towards MJ1 field of KGD6 block post review of Declaration of Commerciality (DoC) by Management Committee. 309 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 (d) (e) The Government of India (GoI), by its letters dated 2nd May 2012, 14th November 2013 and 10th July 2014 has communicated that it proposes to disallow certain costs which the Production Sharing Contract (PSC), relating to 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 GoI 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. Pending decision of the arbitration, the demand from the GoI of $ 117 million ( ` 777 crores) being the Company’s share (total demand $ 195 million) towards additional Profit Petroleum has been considered as contingent liability. In supersession of the Ministry’s Gazette notification no. 22011/3/2012-ONG.D.V. dated 10th January, 2014, the GoI notified the New Domestic Natural Gas Pricing Guidelines, 2014, on 26th October 2014. Consequent to the aforesaid dispute referred to under 32.2 (d) above which has been referred to arbitration, the GoI has directed the Company to instruct customers to deposit differential revenue on gas sales from D1D3 field on account of the prices determined under the above guidelines converted to NCV basis and the prevailing price prior to 1st November 2014 ($ 4.205 per MMBTU) to be credited to the gas pool account maintained by GAIL (India) Limited. The amount so deposited by customer to Gas Pool Account is ` 295 crore (net) as at 31st March 2016 is disclosed under Other Long Term Loans and Advances. Revenue has been recognized at the GoI notified prices in respect of gas quantities sold from D1D3 field from 1st November 2014. 2015-16 (` in crore) 2014-15 33. CONTINGENT LIABILITIES AND COMMITMENTS Contingent Liabilities (A) Claims against the Company / disputed liabilities not acknowledged as debts* (a) (b) Guarantees (i) In respect of Joint Ventures In respect of Others (B) In respect of Joint Ventures In respect of Others Guarantees to Banks and Financial Institutions against credit facilities extended to third parties and other Guarantees (a) (b) Performance Guarantees (a) (b) 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 In respect of Joint Ventures In respect of Others (ii) (iii) (C) Other Money for which the Company is contingently liable (i) Liability in respect of bills discounted with Banks (Including third party bills discounting) In respect of Joint Ventures (a) In respect of Others (b) 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 (I) (II) 310 847 2,639 - 37,734 - 327 20 30,231 - 734 176 6,089 798 1,770 - 35,418 - 274 20 17,704 - 1,121 865 20,569 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.(B) Other Commitments (a) (b) Sales Tax deferral liability assigned (` 29,847) Guarantee against future cash calls ** 2015-16 - 109 (` in crore) 2014-15 787 1,315 * ** The Company has been advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary. The Company has issued guarantees against future cash calls to be made by JV Partners of its wholly owned subsidiary Reliance Marcellus LLC amounting to ` 139 crore. During the year Obligation fulfilled through cash call paid was ` 30 crore. (III) The Income -Tax Assessments of the Company have been completed up to Assessment Year 2011-12. There is no outstanding demand as on date. The assessed tax liability exceeds the provision made, by ` 1,119 core as at 31st March, 2016. Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the company has been legally advised that the additional demand raised is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary. 34. FINANCIAL AND DERIVATIVE INSTRUMENTS a) Derivative contracts entered into by the Company and outstanding as on 31st March, 2016 (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, 2016 amount to ` 1,26,039 crore (Previous Year ` 1,61,205 crore). Category wise break up is given below: Sr. No. 1 2 3 4 Particulars Forward Contract Currency Swap Interest Rate Swap Option (ii) For Hedging Commodity related risks : Category wise break up is given below : Sr. No. 1 2 3 4 Particulars Forward swaps Futures Spreads Option As at 31st March, 2016 Amount (` in Crore) 64,448 1,438 56,803 3,350 As at 31st March, 2015 Amount (` in Crore) 84,137 1,356 69,218 6,494 Feedstock As at 31st March, 2016 Petroleum Product 24,077 13,838 83,191 4,470 89,877 6,619 98,906 68,565 Feedstock As at 31st March, 2015 Petroleum Product 40,389 11,844 88,393 12,150 49,460 23,980 1,04,653 1,30,618 In addition the Company has margin hedges outstanding for contracts relating to petroleum product sales of 1,41,145 kbbl (Previous Year 88,508 kbbl) and freight hedges of 4,246 kbbl (Previous Year Nil). b) Foreign Currency Exposures that are not hedged by derivative instruments as on 31st March 2016 amount to ` 91,255 crore (Previous Year ` 82,812 crore). The unhedged exposures are naturally hedged by future foreign currency earnings and earnings linked to foreign currency. 35. As per Accounting Standard (AS) 17 on “Segment Reporting”, segment information has been provided under the Notes to Consolidated Financial Statements. 311 Notes on Financial Statementsfor the year ended 31st March, 2016StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 36. DETAILS OF LOANS GIVEN, INVESTMENTS MADE AND GUARANTEE GIVEN COVERED U/S 186 (4) OF THE COMPANIES ACT, 2013 Loans given and Investments made are given under the respective heads. Corporate Guarantees given by the Company in respect of loans as at 31st March, 2016 Sr. No. 1 2 3 4 5 Particulars Reliance Global Business B.V. Reliance Holding USA, Inc. Reliance Jio Infocomm Limited RIL USA, Inc. Reliance Industries (Middle East) DMCC 37. DETAILS OF RESEARCH AND DEVELOPMENT EXPENDITURE As at 31st March, 2016 Amount (` in Crore) 1,432 19,877 23,477 580 73 As at 31st March, 2015 Amount (` in Crore) 1,539 18,750 16,813 547 69 Sr. No. a) b) Particulars Capital Revenue Total 2015-16 2014-15 2013-14 2012-13 2011-12 631 628 1,259 722 498 1,220 810 408 1,218 738 380 1,118 654 335 989 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 Rajesh D. Chaturvedi Partner A. B. Jani Partner A.R. Shah Partner Alok Agarwal Chief Financial Officer Srikanth Venkatachari Joint Chief Financial Officer K. Sethuraman Company Secretary Mumbai Date : April 22, 2016 - 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 Prof. Ashok Misra Prof. Dipak C. Jain Dr. R.A. Mashelkar Adil Zainulbhai Raminder Singh Gujral 312 Notes on Financial Statementsfor the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Financial Statements CONSOLIDATED Independent Auditors’ Report on Consolidated Financial Statements 314 / 318 / Consolidated Balance Sheet 319 / Consolidated Statement of Profit and Loss 320 / Consolidated Cash Flow Statement 322 / 323 / Notes on Consolidated Financial Statements 374 / Financial Information of Subsidiary Companies Significant Accounting Policies on Consolidated Accounts 313 StandaloneGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Independent Auditors’ Report TO THE MEMBERS OF RELIANCE INDUSTRIES LIMITED REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS We have audited the accompanying consolidated financial statements of Reliance Industries Limited (hereinafter referred to as “the Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”), its associates and jointly controlled entities, comprising of the Consolidated Balance Sheet as at March 31, 2016, the Consolidated Profit and Loss Statement, the Consolidated Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as “the consolidated financial statements”). MANAGEMENT’S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS The Holding Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to 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 including its associates and jointly controlled entities in accordance with the accounting principles generally accepted in India, including the Accounting Standards prescribed under Section 133 of the Act. The respective Board of Directors of the companies included in the Group and of its associates and jointly controlled entities are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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, which have been used for the purpose of preparation of the consolidated financial statements by the Board of Directors of the Holding Company, as aforesaid. reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and 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 financial control relevant to the Holding Company’s preparation of the consolidated financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Holding Company’s Board of Directors, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence obtained by us and by the other auditors in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements. OPINION In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of other auditors, the aforesaid consolidated 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, of the consolidated state of affairs of the Group, its associates and jointly controlled entities as at March 31, 2016, and their consolidated profit and their consolidated cash flows for the year ended on that date. OTHER MATTERS a) The consolidated financial statements and other financial information include the Holding Company’s proportionate share in jointly controlled assets of ` 1,055 crore, liabilities of ` 95 crore, expenditure of ` 462 crore and the elements making up the Cash Flow Statement and related disclosures in respect of an Unincorporated Joint Venture which is based on statements from the Operator and certified by the management. AUDITORS’ RESPONSIBILITY Our responsibility is to express an opinion on these consolidated financial statements based on our audit. b) While conducting the audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of consolidated financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain 314 reflect Financial statements / consolidated financial statements of certain subsidiaries which total assets of ` 2,35,478 crore as at March 31, 2016 / December 31, 2015, total revenues of ` 52,686 crore and net cash flows amounting to ` 3,456 crore for the year then ended, have been audited by one or jointly by two of us or two of us with other and financial statements of certain associates in which the share of profit (net) of the Group is ` 7 crore have been audited by one of us. c) We did not audit the financial statements / consolidated financial statements of certain subsidiaries, whose financial statements / consolidated financial statements reflect total Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Independent Auditors’ Report (Continued) assets of ` 15,074 crore as at March 31, 2016 / December 31, 2015, total revenues of ` 16,377 crore and net cash flows of (` 125) crore for the year then ended on that date and financial statements of certain associates 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. d) We have relied on the unaudited financial statements of certain associates wherein the Group’s share of profit (net) aggregate ` 51 crores. These unaudited financial statements as approved by the respective Board of Directors of these companies have been furnished to us by the Management and our report in so far as it relates to the amounts included in respect of these associates is based solely on such approved unaudited financial statements. Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and the financial statements / consolidated financial statements certified by the Management. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 1. As required by Section 143(3) of the Act, we report, to the extent applicable, that: a) b) c) d) e) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements. In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditors. The Consolidated Balance Sheet, the Consolidated Profit and Loss Statement, and the Consolidated Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements. In our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards prescribed under Section 133 of the Act. On the basis of the written representations received from the directors of the Holding Company as on March 31, 2016 taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors of its subsidiary companies, f ) g) associate companies and jointly controlled companies incorporated in India, none of the directors of these entities is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164 (2) of the Act. With respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness of such controls, refer to our Report in “Annexure A”, which is based on the auditors’ reports of the Holding company, subsidiary companies, associate companies and jointly controlled companies incorporated in India. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditor’s) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i. ii. iii. impact of pending The consolidated financial statements disclose the litigations on the consolidated financial position of the Group, its associates and jointly controlled entities, as referred to in note 30 to the consolidated financial statements. Provision has been made in the consolidated financial statements, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Holding Company and its subsidiaries, associates and jointly controlled entities incorporated in India except a sum of ` 17 crore, which are held in abeyance due to pending legal cases. 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) Rajesh D. Chaturvedi Partner Membership No.: 45882 Mumbai Date : April 22, 2016 A. B. Jani Partner Membership No.: 46488 A. R. Shah Partner Membership No.:47166 315 ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 ANNEXURE “A” TO THE INDEPENDENT AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS OF RELIANCE INDUSTRIES LIMITED (Referred to in paragraph 1 (f ) under ‘Report on Other Legal and Regulatory Requirements’ of our report of even date) REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (i) OF SUB- SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 (“THE ACT”) In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended March 31, 2016, we have audited the internal financial controls over financial reporting of Reliance Industries Limited (hereinafter referred to as “the Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”), its associates and jointly controlled entities incorporated in India, as of that date. in India, are responsible MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS The respective Board of Directors of the Holding Company, jointly controlled entities all its subsidiaries, associates, and for establishing and incorporated maintaining internal financial controls based on the internal control over financial reporting criteria established by these entities, considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013. AUDITORS’ RESPONSIBILITY Our responsibility is to express an opinion on the Holding Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, 316 and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. We believe that the audit evidence obtained by us and the other auditors in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the Group’s, its associates’ and jointly controlled entities’, incorporated in India, internal financial controls system over financial reporting. MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial includes those policies and control over financial reporting procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. OPINION In our opinion, to the best of our information and according to the explanations given to us and based on the consideration of reports of other auditors, as referred to in the Other Matters paragraph, the Holding Company, its subsidiaries, associates, and jointly controlled entities which are incorporated in India, have, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.ANNEXURE “A” (Continued) TO THE INDEPENDENT AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS OF RELIANCE INDUSTRIES LIMITED on the internal control over financial reporting criteria established by the these entities, considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. OTHER MATTERS Our aforesaid reports under section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over financial reporting in so far as it relates to consolidated/ standalone financial statements of 18 subsidiaries and 3 associates which are companies incorporated in India, is based on the corresponding reports of the auditors of such companies. 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) Rajesh D. Chaturvedi Partner Membership No.: 45882 Mumbai Date : April 22, 2016 A. B. Jani Partner Membership No.: 46488 A. R. Shah Partner Membership No.:47166 317 ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Balance Sheet as at 31st March, 2016 EQUITY AND LIABILITIES Shareholders’ Funds Share Capital Reserves and Surplus Share Application Money Pending Allotment Minority Interest Non-Current Liabilities Long Term Borrowings Deferred Payment Liabilities Deferred Tax Liability (net) Other Long Term Liabilities Long Term Provisions Current Liabilities Short Term Borrowings Trade Payables Micro, Small and Medium Enterprises Others 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 Goodwill on Consolidation 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 Note As at 31st March, 2016 (` in crore) As at 31st March, 2015 1 2 1 3 4 5 6 7 8 9 10 11 11 11 11 12 13 14 15 16 17 18 19 20 2,948 2,40,695 1,42,000 13,310 13,821 2,439 1,869 23,954 235 61,017 99,028 1,636 1,07,781 61,999 1,74,831 75,111 5,251 37,005 17,621 28 39,928 46,964 4,897 11,197 17,834 5,767 2,43,643 8 3,254 2,18,482 17 3,038 2,943 2,15,539 1,20,777 7,388 12,974 1,703 1,554 1,73,439 1,44,396 27,965 136 59,271 45,789 5,392 1,85,870 6,06,214 1,38,553 5,04,486 99,198 52,863 1,06,256 60,206 4,397 25,437 19,538 14 4,79,627 3,67,909 51,014 53,248 5,315 12,545 11,171 3,284 1,26,587 6,06,214 1,36,577 5,04,486 Significant Accounting Policies See accompanying Notes to the Financial Statements 1 to 37 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 Rajesh D. Chaturvedi Partner A. B. Jani Partner A.R. Shah Partner Alok Agarwal Chief Financial Officer Srikanth Venkatachari Joint Chief Financial Officer K. Sethuraman Company Secretary Mumbai Date : April 22, 2016 318 - 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 Prof. Ashok Misra Prof. Dipak C. Jain Dr. R.A. Mashelkar Adil Zainulbhai Raminder Singh Gujral Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Profit and Loss Statement for the year ended 31st March, 2016 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 / Amortisation and Depletion 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 See accompanying Notes to the Financial Statements Note 2015-16 (` in crore) 2014-15 2,86,576 9,515 2,96,091 19,547 3,79,992 8,502 3,88,494 13,059 2,76,544 8,246 2,84,790 1,58,186 28,297 2,571 7,724 3,608 12,916 35,509 2,48,811 35,979 8,073 191 27,715 (85) 27,630 93.78 3,75,435 8,613 3,84,048 2,66,862 25,701 1,483 6,262 3,316 11,547 37,763 3,52,934 31,114 6,296 1,178 23,640 (74) 23,566 80.11 21 22 23 24 25 26 27 1 to 37 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 Rajesh D. Chaturvedi Partner A. B. Jani Partner A.R. Shah Partner Alok Agarwal Chief Financial Officer Srikanth Venkatachari Joint Chief Financial Officer K. Sethuraman Company Secretary Mumbai Date : April 22, 2016 - 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 Prof. Ashok Misra Prof. Dipak C. Jain Dr. R.A. Mashelkar Adil Zainulbhai Raminder Singh Gujral 319 ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Cash Flow Statement for the year 2015-16 A: CASH FLOW FROM OPERATING ACTIVITIES Net Profit Before Tax as per Profit and Loss Statement 35,979 31,114 (` in crore) 2015-16 2014-15 Adjusted for: Miscellaneous Expenditure written off Share in Income of Associates Loss on Sale / Discard of Assets (Net) Depreciation / Amortisation and Depletion Expense Effect of Exchange Rate Change Profit on De-subsidiarisation of Subsidiary Net gain on Sale of Investments Exceptional Item Dividend Income Interest Income Finance Costs Operating Profit before Working Capital Changes Adjusted for: Trade and Other Receivables Inventories Trade and Other Payables Cash Generated from Operations Taxes Paid (Net) Net Cash from Operating Activities B: 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 Maturity of Fixed Deposits Interest Income Dividend Income from Associates Dividend Income from Others Net Cash (Used in) Investing Activities 320 1 (211) 57 12,916 (3,579) (43) (3,260) (423) (734) (3,026) 3,608 (7,147) 6,284 7,991 38 (118) 68 11,547 1,372 (8) (3,516) - (306) (4,513) 3,316 1,097 3,472 (2,754) 7,880 38,994 1,815 40,809 (6,435) 34,374 (63,364) 402 (6,78,241) 6,66,383 (232) 3,551 6,055 5 543 5,306 41,285 7,128 48,413 (8,602) 39,811 (49,662) 344 (7,15,187) 7,21,658 753 66 2,956 10 724 (38,338) (64,898) Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Cash Flow Statement (Continued) for the year 2015-16 C: CASH FLOW FROM FINANCING ACTIVITIES Proceeds from Issue of Share Capital Proceeds from Issue of Share Capital to Minority Redemption of Preference Share Capital of Minority Share Application Money 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 (Used in) / generated from Financing Activities Net (Decrease) in Cash and Cash Equivalents Opening Balance of Cash and Cash Equivalents Add: Upon addition of Subsidiaries Closing Balance of Cash and Cash Equivalents* (Refer Note No. 18) * Include towards Unclaimed Dividend of ` 223 crore (Previous year ` 199 crore) (` in crore) 2015-16 2014-15 284 51 (2) 8 35,059 (17,689) (4,025) (7,259) (9,115) (71) (2,759) (1,286) 12,476 11,190 12,472 4 226 117 (1) 17 29,413 (5,465) (6,444) (3,268) (6,149) (2) 8,444 (22,080) 34,552 12,472 34,360 192 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 Rajesh D. Chaturvedi Partner A. B. Jani Partner A.R. Shah Partner Alok Agarwal Chief Financial Officer Srikanth Venkatachari Joint Chief Financial Officer K. Sethuraman Company Secretary Mumbai Date : April 22, 2016 - 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 Prof. Ashok Misra Prof. Dipak C. Jain Dr. R.A. Mashelkar Adil Zainulbhai Raminder Singh Gujral 321 ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Significant Accounting Policies on Consolidated Accounts A. B. BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS These consolidated financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. PRINCIPLES OF CONSOLIDATION The consolidated financial statements relate to Reliance Industries Limited (‘the Company’) and its subsidiary companies, associates and joint ventures. The consolidated financial statements have been prepared on the following basis: a) b) c) d) e) f ) g) h) i) j) k) 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 Profit and Loss Statement being the profit or loss on disposal of investment in subsidiary. 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. 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 of post acquisition changes in net assets of associates, after eliminating unrealised profits and losses resulting from transactions between the Company and its associates to the extent of its share, through its Consolidated Profit and Loss Statement, to the extent such change is attributable to the associates’ Profit and Loss Statement and 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. C. Investments other than in subsidiaries and associates have been accounted as per Accounting Standard (AS) 13 on “Accounting for Investments”. D. Other significant accounting policies These are set out under “Significant Accounting Policies” as given in the Company’s separate financial statements. 322 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Notes on Consolidated Financial Statements for the year ended 31st March, 2016 The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation. As at 31st March, 2016 (` in crore) As at 31st March, 2015 1. SHARE CAPITAL Authorised Share Capital: 500,00,00,000 (500,00,00,000) 100,00,00,000 (100,00,00,000) Equity Shares of ` 10 each Preference Shares of ` 10 each Issued, Subscribed and Paid up: 294,80,21,694 (294,33,34,138) Equity Shares of ` 10 each fully paid up Less: Calls in arrears - by others [` 2,303 (Previous Year ` 3,113)] 2,948 - 5,000 1,000 6,000 2,948 2,948 5,000 1,000 6,000 2,943 2,943 2,943 - Total 1.1 1.2 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. 1.3 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 As at 31st March, 2016 As at 31st March, 2015 No. of Shares 294,33,34,138 46,87,556 No. of Shares 293,95,47,231 37,86,907 Equity Shares at the end of the year 294,80,21,694 294,33,34,138 1.4 1.5 1.6 The Company has reserved issuance of 12,20,30,651 (Previous year 12,67,18,207) 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 14,967 options at a price of ` 887 per option, plus all applicable taxes, as may be levied in this regard on the Company (Previous year 45,419 options which includes 21,367 options at a price of ` 936 per option, 13,052 options at a price of ` 961 per option and 11,000 options at a price of ` 843 per option, plus all applicable taxes, as may be levied in this regard on the Company) to the Eligible Employees. 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. 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. Share Application Money Pending Allotment represents application money received on account of Employees Stock Option Scheme. 323 ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 2. RESERVES AND SURPLUS Capital Reserve As per last Balance Sheet Add: On Consolidation of Subsidiaries (Net) Add: Transfer to Goodwill on Consolidation* Less: Transferred to Profit and Loss Account 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 redemption of Shares Securities Premium Reserve As per last Balance Sheet Add : On issue of shares Less : Calls in arrears - by others [` 1,03,189 (Previous Year ` 1,93,288)] Debentures Redemption Reserve As per last Balance Sheet Add: Transferred from Profit and Loss Account Statutory Reserve As per last Balance Sheet Add : Transferred from Profit and Loss Account 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 Share in Reserves of Associates Revaluation Reserve As per last Balance Sheet 324 As at 31st March, 2016 (` in crore) As at 31st March, 2015 166 - 878 1,044 753 1,834 4 95 1 42,681 312 42,993 - 1,122 3 147 35 827 10 837 - (2) 207 45 - 252 86 291 166 1,803 31 1,838 1,834 94 1 96 95 42,431 250 42,681 - 42,993 42,681 1,117 5 1,125 1,122 182 147 100 47 848 - 848 28 7 835 827 1,53,214 22,000 1,35,214 18,000 1,75,214 1,53,214 10 10 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.As at 31st March, 2016 (` in crore) As at 31st March, 2015 Profit and Loss Account As per last Balance Sheet Reclassification of Profit and Loss Account of subsidiary (Short) Provision of Tax for earlier years (Net) (Previous Year ` 49,19,979) Excess /(Short) Provision of Tax for earlier years (Net) - Minority Interest Add: Transfer from Capital Reserve Account Add: Profit for the year Less: Appropriations Adjustment relating to Fixed Assets (Refer Note No. 11.9) Adjustment on Amalgamation / Disposal of Subsidiary Transferred to Statutory Reserve Transferred to General Reserve Transferred to Capital Redemption Reserve Transferred to Debenture Redemption Reserve Proposed Dividend on Equity Shares [Dividend per Share ` Nil ; (Previous year ` 10/-)] Interim Dividend on Equity Shares [Dividend per Share ` 10.50; (Previous year ` Nil)] Tax on Dividend## 15,443 28 (1) (1) 753 27,630 43,852 - 2 35 22,000 1 3 - 3,095 605 13,906 - - - - 23,566 37,472 377 40 47 18,000 1 5 2,944 - 615 Total * ## 2.1 As a result of Capital reserve on consolidation (` 878) crore being negative, it has been reclassified to Goodwill on Consolidation. Tax on Dividend is net of reversal of excess provision of ` 17 crore pertaining to Previous Year. The Debenture Redemption Reserve has not been created for a cumulative amount of ` 1,023 crore in terms of Section 71(4) of the Companies Act, 2013 (Previous Year ` 466 crore). Debenture Redemption Reserve has not been created in respect of the following subsidiary companies in view of inadequate profit / loss for the year: 18,111 2,40,695 15,443 2,15,539 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Reliance Jio Infocomm Limited Reliance Prolific Traders Private Limited Reliance Universal Traders Private Limited Reliance Ambit Trade Private Limited Reliance Prolific Commercial Private Limited Reliance Payment Solutions Limited Reliance Progressive Traders Private Limited Reliance Eminent Trading & Commercial Private Limited Reliance Vantage Retail Limited Reliance Aromatics and Petrochemicals Limited Reliance Energy Generation and Distribution Limited Reliance Energy and Project Development Limited Reliance Corporate IT Park Limited Indiawin Sports Private Limited Reliance Industrial Investments and Holdings Limited Reliance Commercial Land & Infrastructure Limited The above Companies shall create the Debenture Redemption Reserve out of profits, if any, in future years. 325 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 As at 31st March, 2016 Current Non Current (` in crore) As at 31st March, 2015 Current 3. LONG TERM BORROWINGS Secured Non Convertible Debentures Term Loans from Banks Term Loans from Others Long Term Maturities of Finance Lease Obligations Unsecured Bonds / Debentures Term Loans- from Banks Term Loans- from Others Total Non Current 8,637 2,299 - - 10,936 49,333 80,449 1,282 1,31,064 1,42,000 133 5 - 11 149 1,270 4,696 1,500 9 7,475 2,975 11,703 298 14,976 15,125 45,999 66,807 496 1,13,302 1,20,777 164 - - 13 177 857 11,084 - 11,941 12,118 3.1 Non Convertible Debentures referred above to the extent of: a) b)  c) d) ` 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 unit) of the Company. ` 400 crore are secured by way of first mortgage / charge on all the properties situated at Hazira Complex and at Patalganga 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. ` 7,500 crore are secured by hypothecation of movable properties of the Subsidiary Company “Reliance Jio Infocomm Limited” except telecom licenses and spectrum. 3.2 Secured term loans from Banks referred above to the extent of: a) b) ` 2,290 crore are secured by way of mortgage / hypothecation of movable, immovable properties and current assets. ` 14 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. 4. DEFERRED TAX LIABILITY (NET) Deferred Tax Liability Related to fixed assets Deferred Tax Assets Related to fixed assets Disallowances under the Income Tax Act Carried forward loss of subsidiaries Total 326 As at 31st March, 2016 (` in crore) As at 31st March, 2015 22,006 19,983 222 381 7,582 120 321 6,568 8,185 13,821 7,009 12,974 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 5. OTHER LONG TERM LIABILITIES 1,703 Others # 1,703 Total # Includes interest accrued but not due on Deferred Payment Liabilities, Creditors for Capital Expenditure, Premium payable on forward contracts and exchange loss. 2,439 2,439 As at 31st March, 2016 (` in crore) As at 31st March, 2015 6. LONG TERM PROVISIONS Provisions for Annuities Provision for decommissioning of Assets Total 7. 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 * Rupee Loans From Others Rupee Loans Loans from related parties (Refer Note No. 28) Total * Includes Buyers Credit/Packing Credit 7.1 Working Capital Loans from Banks referred above to the extent of: As at 31st March, 2016 (` in crore) As at 31st March, 2015 65 1,804 1,869 53 1,501 1,554 As at 31st March, 2016 (` in crore) As at 31st March, 2015 74 2,941 843 2,142 3,015 1,649 2,985 - 16,226 2,173 825 24,535 332 50 19,224 66 23,954 24,917 63 27,965 (a) (b) ` 2,213 crore (Previous Year ` 2,774 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. ` 728 crore (Previous Year ` Nil) are secured by way of first charge on all the Current Assets. ` Nil (Previous Year ` 23 crore) are secured by standby Letter of Credit. (c) ` 74 crore (Previous Year ` 188 crore) is secured by hypothecation of plant and Machinery. 7.2 Working Capital Loan from Others of ` 1,649 crore (Previous Year ` Nil) are secured by lien on Government Securities. 327 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 8. TRADE PAYABLES The details of amounts outstanding to Micro, Small and Medium Enterprises based on information available 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 Total 9. OTHER CURRENT LIABILITIES Current maturities of Long Term Debt Current maturities of Finance Lease Obligations (Refer Note No 3) Current maturities of Deferred Payment Liabilities Interest accrued but not due Unclaimed Dividend # Application money received and due for refund # Unclaimed/Unpaid matured deposits and interest accrued thereon Unclaimed/ Unpaid matured debentures and interest accrued thereon # Other Payables * Total As at 31st March, 2016 (` in crore) As at 31st March, 2015 - - - - - - - - - - - - - - - - As at 31st March, 2016 (` in crore) As at 31st March, 2015 15,114 11 12,105 13 15,125 739 1,988 223 1 4 1 80,947 99,028 12,118 3 928 199 1 2 1 32,537 45,789 # * These figures do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund except ` 17 crore (Previous Year ` 15 crore) which is held in abeyance due to legal cases pending. Includes Statutory Dues, Security Deposit, Creditors for Capital Expenditure and Advance from Customers. 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 As at 31st March, 2016 (` in crore) As at 31st March, 2015 443 - - 77 42 1,074 1,636 364 2,944 615 77 126 1,266 5,392 * Includes primarily provision for Customs Duty, Excise Duty on Finished Goods, Other Duties and Taxes. 328 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Description GROSS BLOCK DEPRECIATION / AMORTISATION / DEPLETION NET BLOCK As at 01-04-2015 Additions/ Adjustments Deductions/ Adjustments As at 31-03-2016 As at 01-04-2015 For the Year# Deductions/ Adjustments As at 31-03-2016 As at 31-03-2016 As at 31-03-2015 (` in crore) 11. FIXED ASSETS 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 2,866 6,993 13,967 1,58,421 3,622 6,793 1,213 665 387 45 1,94,972 2,914 270 1,317 10,877 268 497 98 106 35 - 16,382 362 24 8 444 43 112 36 40 - - 5,418 7,239 15,276 1,68,854 3,847 7,178 1,275 731 422 45 1,069 2,10,285 765 - 4,536 84,632 1,539 2,956 686 361 294 32 95,801 277 10 287 1,95,259 - - - 16,382 - - - 277 10 287 1,069 2,10,572 250 10 260 96,061 186 - 586 5,450 482 703 121 112 7 2 7,649 2 - 2 7,651 3,435 1,536 80,271 3,968 89,210 2,84,469 2,61,019 251 119 17,424 30 17,824 34,206 25,074 - - 2,365 14 2,246 3,686 1,028 1,655 31,927 95,330 1,146 3,984 2,379 1,04,655 36,347 3,448 3,15,227 1,32,408 1,624 2,84,469 1,19,602 154 178 5,932 66 6,330 13,981 13,930 106 - 33 606 32 81 28 35 - - 4,573 845 7,239 - 10,187 5,089 79,378 89,476 1,858 1,989 3,600 3,578 496 779 293 438 121 301 34 11 921 1,02,529 1,07,756 2,101 6,993 9,431 73,789 2,083 3,837 527 304 93 13 99,171 - - - 25 252 - 10 262 25 921 1,02,791 1,07,781 27 - 27 99,198 - - - 21 21 2,400 1,206 37,859 1,191 42,656 1,286 449 57,471 2,793 61,999 1,189 508 48,344 2,822 52,863 942 1,45,447 1,69,780 1,52,061 1,124 1,32,408 1,52,061 1,74,831 1,06,256 75,111 60,206 $ * # Includes Office Equipments Other than internally generated Depreciation for the year includes depreciation of ` 351 crore (Previous Year ` 254 crore) capitalised during the year. 11.1 Leasehold Land includes ` 317 crore (Previous Year ` 203 crore) in respect of which lease-deeds are pending execution. 11.2 Buildings includes : i) ii) Cost of shares in Co-operative Housing Societies ` 1,99,950 (Previous Year ` 1 crore). ` 135 crore (Previous Year ` 93 crore) in shares of Companies / Societies with right to hold and use certain area of Buildings. 329 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 11.3 Intangible assets - Others includes: i) ii) Jetties amounting to ` 812 crore (Previous Year ` 812 crore), the Ownership of which vests with Gujarat Maritime Board. ` 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 includes: i) ii) ` 37,327 crore (Previous Year ` 19,935 crore) on account of project development expenditure. ` 33,984 crore (Previous Year ` 27,610 crore) on account of cost of construction materials at site. 11.5 Project Development Expenditure: (in respect of Projects up to 31st March, 2016, 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 2,507 7,118 8,324 Less: Project Development Expenses Capitalised during the year Closing Balance 2015-16 19,935 17,949 557 37,327 1,573 4,051 4,409 (` in crore) 2014-15 9,982 10,033 80 19,935 11.6 Gross Block includes ` 10 crore added on revaluation of Buildings, Plant & Machinery and Storage Tanks as at 31st December, 2015, ` 346 crore added on revaluation of Buildings, Plant & Machinery and Storage Tanks as at 31st December, 2013, based on reports issued by international valuers. 11.7 The Gross Block of Fixed Assets includes ` 38,882 crore (Previous Year ` 38,872 crore) on account of revaluation of Fixed Assets carried out since inception. ` Nil (Previous Year ` 114 crore) has been withdrawn from Revaluation Reserve and Capital Reserve. 11.8 11.9 Additions in Plant and Machinery, Capital Work-in-Progress, Intangible Assets - Development Rights and Intangible Assets under Development include ` 11,844 crore (net loss) [Previous Year ` 6,867 crore (net loss)] on account of exchange difference during the year. Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II, except in respect of certain assets as disclosed in Accounting Policy on Depreciation, Amortisation and Depletion. Accordingly the unamortised carrying value is being depreciated / amortised over the revised / remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account of the year ended 31st March, 2015, amounting to ` 377 crore. 330 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 12. NON-CURRENT INVESTMENTS (Long Term Investments) (Valued at Cost less other than temporary diminution in value, if any) 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 Algenol LLC 1,60,40,769 (51,54,872) 10,000 (10,000) - (6,31,42,865) 2,600 (2,600) 60,94,190 (60,94,190) 46,87,500 (46,87,500) 64,29,20,000 (64,29,20,000) 2,10,000 (1,05,000) 62,63,125 (62,63,125) 52,49,344 (52,49,344) 11,08,500 (11,08,500) 74,99,990 (74,99,990) 22,500 (22,500) 5,000 (5,000) 52,00,000 (52,00,000) - (5,000) - (8,014) Aeon Learnings Private Limited of ` 10 each Aurora Algae Inc Book My Show Limited [` 33,76,494 ; (Previous year ` 21,44,553)] EFS Midstream LLC Eenadu Television Private Limited of ` 10 each Extramarks Education Private Limited of ` 10 each Gujarat Chemical Port Terminal Company Limited of ` 1 each Gaurav Overseas Private Limited of ` 10 each [` 19,31,469; (Previous Year ` 9,45,470)] Indian Vaccines Corporation Limited of `10 each Matrix Genetics LLC Reliance Europe Limited of Sterling Pound 1 each Reliance Commercial Dealers Limited of `10 each Reliance LNG Limited of ` 10 each [` 2,04,824; (Previous Year ` 2,14,493)] Reliance Commercial Trading Private Limited of ` 10 each Reliance Utilities and Power Private Limited Class ‘A’ shares of ` 1 each [` 40,40,000 ; (Previous Year ` 40,40,000)] Reliance Jio Infratel Private Limited of ` 10 each (Previous Year ` 40,500) Wespro Digital Private Limited of ` 10 each (Previous Year ` 3,41,532) As at 31st March, 2016 (` in crore) As at 31st March, 2015 164 164 284 - - - - 475 125 158 - 1 11 33 11 - - - - - 157 157 321 - - - 1,795 471 125 106 - 1 13 32 11 - - - - - 331 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254As at 31st March, 2016 (` in crore) As at 31st March, 2015 1,07,593 (1,07,593) 31,76,645 (-) 4,16,907 (-) 24x7 Learning Private Limited of ` 10 each Vayana Private Limited of ` 10 each Vayana Private Limited of ` 10 each, ` 5.50 paid up 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 - (4,17,319) - (1,00,000) Zero Coupon Secured Optionally Convertible Redeemable Debentures of Reliance Commercial Trading Private Limited - Series B of ` 1,000 each 9% Optionally Fully Convertible Debentures of Extramarks Education Private Limited of ` 10,000 each In Limited Liability Partnership GenNext Ventures Investment Advisers LLP [` 22,49,001 ; (Previous Year ` 14,43,495)] Total Investment in Associates (A) B. Investments in others In Government Securities-Unquoted 6 Years National Savings Certificate (Deposited with Sales Tax Department and other Government Authorities) [` 19,32,097; (Previous Year ` 41,55,919)] In Government Securities-Quoted 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)] 332 - 21 3 1,122 2,000 2,000 - - - - 3,286 - 4,616 10 - - 10 - - 2,875 2,000 2,000 42 100 142 - - 10 - - 10 - 5,174 - 3,551 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Other Investments In Equity Shares-Quoted, fully paid up 4,52,88,158 (3,10,02,444) 19,48,680 (19,48,680) 10,59,07,273 (10,59,07,273) 27,71,717 (36,58,400) 35,47,800 (-) 4,85,32,764 (4,85,32,764) - (8,100) 4,74,308 (4,74,308) 1,15,86,762 (1,15,86,762) 2,75,000 (2,75,000) - (2,20,000) 17,42,720 (22,32,720) Algae. Tech Limited of AU$ 0.1636 each Den Networks Limited of ` 10 each EIH Limited of ` 2 each Housing Development Finance Corporation Limited of ` 2 each Housing Development Finance Corporation Limited Warrant Himachal Futuristic Communications Limited of ` 1 each Inca Finlease Limited of ` 10 each KSL Industries Limited of ` 4 each [` 88,69,560 ; (Previous Year ` 88,69,560)] Network 18 Media Trust Refex Refrigerants Limited of ` 10 each Royal Traders Limited of ` 10 each State Bank of India of ` 1 each (Previous Year ` 2 each) In Equity Shares-Unquoted, fully paid up 10,000 (5,000) 4,89,518 (-) 1,000 (1,000) - (19,180) 8,98,500 (8,98,500) 400 (400) 83,763 (83,763) 3,01,876 (3,01,876) 85,000 (85,000) Airspan Networks Inc. @ $ 1,000 per share Airhop Corporation Inc. @ $ 0.0001 per share Air Controls and Chemical Engineering Company Limited of ` 1 each [` 1,500; (Previous Year ` 1,500)] Covacsis Technologies Private Limited of ` 10 each Delhi Stock Exchange Association Limited of ` 10 each Eshwar Land Private Limited of ` 10 each Ecorithim Inc. Ensemble Infrastructure India Limited of ` 10 each MobileNXT Teleservices Private Limited of ` 10 each National Stock Exchange of India Limited of ` 10 each As at 31st March, 2016 (` in crore) As at 31st March, 2015 22 19 1,433 193 63 57 - 1 43 - - 39 17 19 1,433 241 - 57 - 1 43 - - 49 1,870 1,860 66 3 - - - 80 4 - - 28 32 - - 3 - 80 3 - - 28 333 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254As at 31st March, 2016 (` in crore) As at 31st March, 2015 1,500 (1,500) - (2,53,800) 400 (400) - (3,192) 44,54,799 (44,54,799) - (1,800) 27,500 (27,500) - (72,643) 27,00,000 (27,00,000) 1,09,348 (50,614) Reliance Research and Development Services Private Limited of ` 10 each [` 15,000; (Previous Year ` 15,000)] Shinano Retail Private Limited of `10 each [` Nil; (Previous Year ` 25,38,000)] Sonali Land Private Limited of ` 10 each [` 4,000 ; (Previous Year ` 4,000)] Skorydove Systems Private Limited of ` 10 each Terra Power LLC Teesta Retail Private Limited of ` 10 each [` Nil; (Previous Year ` 18,125)] Ushodaya Enterprises Private Limited of ` 100 each Videonetics Technology Private Limited of ` 10 each Yatra Online Inc. of $ 0.0001 each Yatraonline Private Limited of ` 10 each In Preference Shares - Unquoted, fully paid up 2,50,000 (2,50,000) 25,00,000 (25,00,000) 2 (-) 15,00,015 (15,00,015) 9,75,700 (9,75,700 ) 4,37,459 (4,37,459) 0.10% Non Cumulative Redeemable Preference Shares of Series "II" of ` 100 each in IBN Lokmat News Private Limited Preference shares of ` 10 each in Den Entertainment Network Private Limited Preference shares of Aeon Learning Private Limited [` 1,020; (Previous Year ` Nil)] Series A Preference Shares of $ 0.0001 each in Yatra Online Inc. Series B Preference shares of $ 0.0001 each in Yatra Online Inc. Series C Preference Shares of $ 0.0001 each in Yatra Online Inc. In Fixed Maturity Plan - Quoted fully paid up 3,00,00,000 (-) Axis Fixed Maturity Plan - (Series 47) - Growth 1,17,72,377 (1,50,75,101) Baroda Pioneer Fixed Maturity Plan - (Series J & M) - Growth 99,16,10,709 (27,98,82,768) Birla Sun Life Fixed Term Plan - (Series JA/JI/JQ/JX/KA/ KC/KE/KH/KJ/KL/KP/KR/KT/MA/MD/MK/MP/MQ/MR/MU/ MX/MY/NB/ND/NE/NG/NH/NI/NK/NL) - Growth 40,07,31,150 (19,01,55,380) DHFL Pamerica Fixed Maturity Plan - (Series 45/49/54/57/62/82/85/ 87/91/95) - Growth - - - - 102 - 37 - 15 20 355 3 3 - 4 8 9 27 30 12 992 401 334 - - - - 97 - 37 10 14 9 313 3 3 - 4 8 9 27 - 15 280 190 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.As at 31st March, 2016 (` in crore) As at 31st March, 2015 - (20,93,53,761) DSP Black Rock Fixed Maturity Plan - (Series 146/149/151) - Growth 1,14,50,00,000 (3,50,00,000) HDFC Fixed Maturity Plan - (Series 34/35/36 1105D/1111D/ 1112D/1114D/1132D/1155D/1157D/117 6D) - Growth 1,82,08,56,950 (77,12,14,635) ICICI Fixed Maturity Plan - (Series 71/72/73/75/76/77/78) - Growth 2,50,00,000 (3,79,28,740) 63,67,31,022 (5,45,14,579) 4,32,72,349 (-) 5,50,00,000 (3,00,00,000) 1,49,60,99,239 (32,99,25,439) 39,00,00,000 (22,78,25,006) 1,16,19,16,665 (23,93,60,369) 27,00,00,000 (-) 8,50,15,846 (2,74,08,274) 83,09,64,579 (27,37,96,672) IDFC Fixed Maturity Plan - (Series 49/50/51) - Growth Kotak Fixed Maturity Plan - (Series 132/133/136/142/145/146/ 147/149/175/176/178/179/180/182/185/190/191) - Growth L&T Fixed Maturity Plan - (Series 10) - (Plan H/T) - Growth LIC Nomura Mutual Fund Fixed Maturity Plan - (Series 86/89/90) - Growth Reliance Fixed Horizon Fund - (Series 1/2/4/5/6/7/8/9/10/11/12/13/14/16/17/19/20/27/ 33) - (Plan XXV/XXVI/XXVII/XXVIII/XXIX/XXX) - Growth Religare Fixed Maturity Plan - (Series 22/24/25/26/27) – (Plan A/C/D/E/F/H) - Growth SBI Debt Fund - (Series A/B/1/2/3/4/5/6/8/9/10/11/14/1 6/17/18/19/20/22/23/25/26/27/29/31/33/34/35/36/366 ) - Growth Sundaram Fixed Term Plan – (GW/GY/HA/HB/HC) Tata Fixed Maturity Plan - (Series 45/46) - (Scheme C/M/T)- Growth UTI Fixed Term Income Fund - (Series XXII - IX/XXIII-XV/ XX-X/XI-XI/XXIII-III/XXIII-VII/XXII-X/XXII-XI/XXIV-VI/XVII-I/ XXII-XIV/XXIII-XI/XXIV-VIII/XXIV-IV/XVII-XIII/XXIV-IX/XX- VIII) - Growth In Debentures or Bonds - Unquoted 3,000 (3,000) 10,00,000 (10,00,000) 2,250 (2,250) 1,252 (1,252) Indiabulls Housing Finance Limited - 0% Secured Redeemable Non Convertible Debentures of ` 10,00,000 each IndiaCast Media Distribution Private Limited - Zero Coupon compulsorily convertible debenture of ` 10 each HDB Financial Services Limited - 0% Secured Redeemable Non Convertible Debentures of ` 10,00,000 each Kotak Mahindra Prime Limited - 0% Secured Redeemable Non Convertible Debentures of ` 10,00,000 each - 1,145 1,821 25 637 43 55 1,496 390 1,161 270 85 830 300 3 225 100 209 35 771 38 55 - 30 330 228 239 - 27 274 9,393 2,721 300 3 225 100 335 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254As at 31st March, 2016 (` in crore) As at 31st March, 2015 820 (820) 30 (30) 2,50,000 (2,50,000) 46,57,00,000 (-) Tata Sons Limited Unsecured Redeemable Non Convertible, Upper Tier II Bonds of Yes Bank Limited of ` 10,00,000 each Unsecured Zero (Coupon) Optionally Redeemable/ Convertible Debentures of VT Media Private Limited of ` 1,000 each Unsecured Zero (Coupon) Optionally Redeemable/ Convertible Debentures of Teesta Retail Private Limited of ` 10 each In Debentures or Bonds - Quoted Citicorp Finance (India) Limited - Secured Redeemable Non Convertible Debentures - Series 324 of ` 1,00,000 each Citicorp Finance (India) Limited - 0% Secured Redeemable Non Convertible Debentures Series 570A of ` 10,00,000 each Citicorp Finance (India) Limited - 0% Secured Redeemable Non Convertible Debentures Series 575 Tranche 5 of ` 1,00,000 each Export Import Bank of India 83 3 25 466 1,205 - 125 50 10 Housing Development Finance Corporation Limited 2,948 IDFC Bank Limited Indian Railway Finance Corporation Limited Infrastructure Development Finance Company Limited LIC Housing Finance Limited 91 577 434 980 National Bank for Agriculture and Rural Development 4,213 National Highways Authority of India National Thermal Power Company Limited Power Finance Corporation Limited Power Grid Corporation of India Limited Rural Electrification Corporation Limited Small Industries Development Bank Of India Limited State Bank Of India 395 93 3,769 100 1,162 250 - - (22,505) 1,250 (-) 5,000 (-) 100 (100) 43,850 (55,350) 900 (-) 57,70,976 (42,62,612) 5,850 (8,050) 9,750 (11,250) 16,24,821 (-) 39,44,752 (39,44,752) 9,29,946 (9,49,946) 43,05,143 (42,79,543) 1,000 (950) 25,14,520 (12,100) 2,500 (-) - (950) 83 3 25 - 739 225 - - 10 4,389 - 426 805 1,126 - 395 95 1,203 95 1,212 - 94 336 15,197 10,075 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.As at 31st March, 2016 (` in crore) As at 31st March, 2015 In Others 20,00,000 (10,00,000) 26,66,289 (27,10,745) 92,435 (2,73,770) 4,01,28,946 (-) 50,000 (50,000) 30,00,000 (26,82,000) 25,000 (25,000) 5,000 (5,000) 2,08,000 (-) 1,931 (2,000) 21,600 (21,600) DSP Blackrock India Enhanced Equity Fund Faering Capital India Evolving Fund of ` 1,000 each HDFC India Real Estate of ` 1,000 per unit GenNext Venture Fund - Class A Units of ` 10 each JM Financial Property Fund - I of ` 5,961.07 per unit; (Previous Year ` 6,432.82 per unit) KKR India Debt Fund I of ` 1,000 each LICHFL Urban Development Fund of ` 10,000 each, ` 7,848 paid up (Previous Year ` 3,145 paid up) MPM Bioventure IV-QP, LP, USA Multiples Private Equity Fund - Scheme 1 of ` 1,00,000 each, ` 68,219 paid up (Previous Year ` 62,297 paid up) Multiples Private Equity Fund - II of ` 1,000 each Peninsula Realty Fund of ` 1,00,000 each Urban Infrastructure Opportunities Fund of ` 79,930 per unit (Previous Year ` 86,160 per unit) Total Investments in Others (B) Total Long Term Investments (A + B) 20 267 10 40 30 312 21 94 35 19 23 175 1,046 33,719 37,005 10 271 29 - 32 274 9 96 33 - 25 188 967 20,263 25,437 As at 31st March, 2016 (` in crore) As at 31st March, 2015 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 10,540 4,361 156 2,038 526 17,621 # ## * Includes ` 28,16,626 (Previous Year ` 11,92,164) to Reliance Utilities & Power Private Limited which is related party. Includes ` 2,221 crore (Previous Year ` 2,172 crore) relating to Deposits with related parties (Refer Note No. 28). Includes claims receivable from statutory authorities, loans to employees etc. 11,783 4,050 18 1,554 2,133 19,538 337 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review14825525637938039655147025414. OTHER NON CURRENT ASSETS Others* Total * Includes Revaluation of Forward Contracts. 15. CURRENT INVESTMENTS (Carried at lower of cost and quoted / fair value, including current portion of long term investment) Investments in Equity Shares - Quoted fully Paid-up 6,98,288 (6,98,288) Den Network Limited of ` 10 each In Government Securities - Quoted* Collateral Borrowing and Lending Obligation - Unquoted In Debentures or Bonds - Quoted, fully Paid up As at 31st March, 2016 (` in crore) As at 31st March, 2015 28 28 14 14 As at 31st March, 2016 (` in crore) As at 31st March, 2015 1 3,651 - 1 4,370 100 Housing Development Finance Corporation Limited 2,014 486 10,017 (4,850) 7,50,000 (-) 1,075 (-) 2,000 (-) 2,750 (-) 33,12,714 (-) 7,300 (6,950) 2,100 (20) 1,950 (150) - (23,957) Indian Railway Finance Corporation Limited Infrastructure Development Finance Company 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 State Bank of India In Debentures or Bonds - Unquoted, fully Paid up Tata Sons Limited - (2,150) 338 75 96 199 275 332 733 216 196 - - 4,136 - - - - - 695 3 15 145 215 1,344 - 215 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. As at 31st March, 2016 (` in crore) As at 31st March, 2015 In Fixed Maturity Plan - Quoted, fully Paid up - (25,90,00,000) 1,50,75,101 (6,00,00,000) 14,98,82,768 (64,10,00,000) - (36,80,00,000) 20,93,53,761 (15,50,00,000) 4,56,47,510 (84,56,47,510) - (6,00,00,000) 3,40,65,257 (7,50,00,000) 9,51,59,378 (79,00,00,000) - (2,98,46,064) 6,79,28,740 (31,30,00,000) 7,96,09,567 (8,79,22,280) - (10,50,00,000) 11,45,14,578 (40,00,00,000) - (19,50,00,000) 3,21,69,789 (18,28,13,373) - (2,50,00,000) - (30,00,00,000) 2,28,25,006 (7,00,00,000) 15,03,60,369 (64,50,00,000) - (8,80,00,000) 2,74,08,274 (17,00,00,000) 2,28,32,093 (13,50,00,000) Axis Fixed Term Plan - (Series 47/49/52/55/59/60) - Growth Baroda Pioneer Fixed Maturity Plan - (Series J/M/N) - Growth Birla Sun Life Fixed Term Plan - (Series JA/JI/JQ/JR/JX/KA/KC/KE/KH/KJ/KO/KP/KR/KT) - Growth DHFL Pamerica Fixed Maturity Plan (Series 45/47/49/52/53/54/57/63) - Growth DSP BlackRock Fixed Maturity Plan- (Series 36/37/146/149/150/151/152) - Growth HDFC Fixed Maturity Plan - (Series 372D/377D/384D/390D/400D/ 434D/435D/441D/447D/453D/478D/491D/504D/531D/540D) - Growth HSBC Fixed Term Plan - (Series 105)- Growth ICICI Prudential Fixed Maturity Plan - (Series 71) - (Plan C/E/H/I) - Cumulative ICICI Prudential Fixed Maturity Plan - (Series 72/73) - (Plan A/B/C/D/E/F/G/I/J/K/L/N/O/S) - Growth ICICI Prudential Fixed Maturity Annual Interval Plan - (Plan I) - Cumulative IDFC Fixed Maturity Plan - (Series 21/49/50/51/57/60/64/66/70/7 2/74/75/79/84/86) - Growth IDFC Yearly Series Interval Fund -( Series I/II) - Growth JP Morgan India Fixed Maturity Plan - (Series 30/33) - Growth Kotak Fixed Maturity Plan - (Series 132/133/136/141/142/145/146/147/149) - Growth L&T Fixed Maturity Plan – (Series 9/X) – (Plan B/H/J/M/Q/S/T) - Growth LIC Nomura Fixed Maturity Plan - (Series 1/64/72/76/77/79/81/86) - Growth Principal PNB Fixed Maturity Plan - (Series B10) - Growth Reliance Fixed Horizon Fund - (Series 2/5/27/33) - (Plan XXV/XXVI) - Growth Religare Invesco Fixed Maturity Plan - (Series 22/XXI) – (Plan E/F/H) - Growth SBI Debt Fund - (Series - 1/2/3/5/10/11/ 14/ 16/17/ 366) – Growth Sundaram Fixed Term Plan - (Series EU/EX/FD/FI) - Growth Tata Fixed Maturity Plan - (Series 45/46) - (Scheme C/K/M/N/Q/T) - Growth UTI Fixed Term Income Fund - (Series XVII - VII/XVII-XIV/XVIII-I/XVII-IV/XVII-I) - Growth - 15 150 - 209 46 - 34 95 - 68 80 - 115 - 33 - - 23 150 - 27 23 259 60 641 368 155 846 60 75 790 32 313 88 105 400 195 184 25 300 70 645 88 170 135 1,068 6,004 339 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 In Mutual Fund - Quoted 2,50,000 (2,50,000) - (14,23,59,900) - (3,25,87,726) - (18,69,31,029) - (26,80,90,641) - (3,25,53,638) - (9,11,243) - (97,58,08,342) - (3,21,07,882) - (30,00,00,000) - (5,30,69,730) - (61,07,51,216) - (12,80,60,101) 48,46,69,171 (33,79,24,449) - (29,42,59,007) - (47,91,71,028) 1,66,50,000 (1,66,50,000) - (66,83,30,981) - (21,42,10,231) - (8,15,59,748) 5,70,000 (5,70,000) - (4,43,27,649) - (6,85,74,208) Canara Robeco Capital Protection - Growth [` 25,00,000 (Previous Year ` 25,00,000)] Franklin India Corp Bond Opportunities Fund - Growth Franklin India Income Builder Account - Growth Franklin India Income Opportunities Fund - Growth Franklin India Low Duration Fund - Growth Franklin India Savings Plus Fund - Growth Franklin India Short Term Income Plan - Growth HDFC Corporate Debt Opportunities Fund – Dividend HDFC Dynamic Bond Fund - Growth HDFC Floating Rate Income Fund - Long Term Plan - Dividend HDFC Gilt Fund - Long Term - Growth HDFC High Interest Fund Short Term Plan - Dividend HDFC Income Fund - Growth HDFC Medium Term Opportunities Plan - Dividend HDFC Short Term Opportunities Fund - Dividend HDFC Short Term Plan - Dividend ICICI Prudential Nifty Exchange Traded Fund IDFC Dynamic Bond Fund - Dividend IDFC Money Manager Fund Investment Plan - Dividend IDFC Super Saver Income Fund - Short Term Plan - Growth Kotak Nifty Exchange Traded Fund - Growth Sundaram Growth Fund - Dividend Sundaram Select Debt Fund - Dividend As at 31st March, 2016 (` in crore) As at 31st March, 2015 - - - - - - - - - - - - - 505 - - 149 - - - 50 - - - 200 150 300 400 75 250 1,000 150 300 150 625 400 350 300 485 149 725 225 200 50 70 75 340 704 6,629 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. As at 31st March, 2016 (` in crore) As at 31st March, 2015 In Mutual Fund - Unquoted 6,59,60,044 (-) 7,59,94,772 (7,59,94,772) 35,47,37,364 (12,45,78,631) - (57,16,712) 7,83,14,262 (-) 49,29,88,112 (1,98,28,31,662) - (9,73,33,060) - (6,07,43,008) 66,33,08,422 (28,92,79,309) 22,34,01,784 (22,34,01,784) - (29,22,23,922) 19,98,33,489 (2,29,32,203) - (60,94,85,042) 8,22,25,877 (7,41,06,213) 13,45,119 (19,22,375) 3,26,385 (3,88,183) 16,95,597 (-) - (86,068) Axis Enhanced Arbitrage Fund - Dividend Axis Short Term Fund - Growth Axis Short Term Fund - Dividend Axis Mutual Fund Baroda Balance Plan - Dividend Birla Sun Life Dynamic Bond Fund - Dividend Birla Sun Life Income Plus Plan - Growth Birla Sun Life Index Fund - Dividend Birla Sun Life Short Term Fund - Dividend Birla Sun Life Short Term Fund - Growth Birla Sun Life Dynamic Bond Fund - Growth Birla Sun Life Enhanced Arbitrage Fund - Dividend Birla Sun Life Short Term Opportunities Fund - Dividend Birla Sun Life Treasury Optimizer Plan - Dividend Birla Sun Life Short Term Fund - Growth - Regular Birla Sun Life - Cash Plus - Direct Plan - Growth Birla Sun Life - Cash Plus - Growth - Regular Plan Birla Sun Life Floating Rate Fund Short Term Growth 296 (-) Birla Sun Life Savings Fund - Growth - Regular Plan [` 86,364; (Previous Year ` Nil)] 10,09,60,780 (2,43,52,942) 16,49,64,780 (-) 71,57,64,96 (71,57,64,96) 2,40,93,515 (2,40,93,515) DHFL Pamerica Arbitrage Fund - Dividend DHFL Pamerica Banking and PSU Debt Fund - Bonus DHFL Pamerica Banking and PSU Debt Fund - Dividend DHFL Pamerica Insta Cash Plus - Bonus 70 96 365 - 175 522 - - 690 1,000 - 220 - 950 6 6 41 - - 105 200 75 236 - 96 125 7 - 2,100 600 150 300 1,000 549 25 875 850 8 9 - 2 - 25 - 75 236 341 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254As at 31st March, 2016 (` in crore) As at 31st March, 2015 2,46,06,581 (2,46,06,581) DHFL Pamerica Insta Cash Plus Fund Super Institutional Plan - Bonus 15,92,96,546 - 1,84,06,566 (1,84,06,566) - (23,03,028) 13,27,46,938 (4,95,70,718) - (7,22,79,657) - (15,82,42,871) - (6,58,460) 85,54,686 (85,54,686) 9,65,71,057 (-) 2,15,42,067 (-) 29,63,61,644 (29,63,61,644) 49,84,18,726 (-) 6,78,03,505 (-) 50,00,000 (50,00,000) 37,50,03,000 (-) 2,03,35,619 (-) 45,271 (9,69,16,031) 18,54,84 708 (18,54,84,708) 79,66,20,979 (-) - (1,19,97,216) - (4,74,138) DHFL Pamerica Premier Bond Fund - Dividend DHFL Pamerica Treasury Fund - Bonus DSP Black Rock Strategic Bond Institutional Fund - Dividend DSP Black Rock Banking & PSU Debt Fund - Growth DSP Black Rock Short Term Fund - Growth DSP Black Rock Income Opportunities Fund - Growth DHFL Pamerica Mutual Fund DHFL Pramerica Short Maturity Fund Growth Edelweiss Arbitrage Fund - Dividend Franklin India Banking and PSU Debt Fund - Growth HDFC Short Term Opportunities Fund - Growth HDFC Arbitrage Fund - Dividend HDFC Banking and PSU Fund - Growth HDFC Debt Fund for Cancer Cure - Dividend HDFC Floating Rate Income Fund Long Term - Dividend HDFC Gilt Short Term Plan - Growth HDFC Liquid Fund - Growth HDFC Medium Term Opportunities Fund - Growth HDFC Short Term Opportunities Fund - Division HDFC Short Term Plan Growth HDFC Mutual Fund [` Nil; (Previous Year ` 48,35,353)] 2,948 (2,942) HDFC Cash Management Fund - Savings Plan - Direct Plan - Growth Option 243 200 18 - 150 - - - 20 100 25 400 520 80 5 375 50 14 241 860 - - 1 243 - 18 250 50 147 350 1 20 - - 400 - - 5 - - 266 241 - 30 - 1 342 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.As at 31st March, 2016 (` in crore) As at 31st March, 2015 1,73,190 (-) HDFC High Interest Fund - Short Term Plan Growth [` 25,00,000; (Previous Year ` Nil)] 62,86,60,113 (47,31,50,819) 3,61,78,141 (3,61,78,141) - (66,48,88,122) 48,90,38,446 (18,12,46,791) 9,84,25,197 (-) 1,07,95,80,337 (1,01,65,79,969) 1,27,18,23,490 (7,50,00,000) 8,12,12,898 (8,12,12,898) 11,08,46,926 (11,08,46,926) - (47,47,16,615) - (2,66,12,448) - (50,00,00,000) 1,32,99,287 (-) 5,70,005 (5,70,728) 25,24,456 (8,69,439) - (3,76,282) - (48,30,864) 1,89,988 (-) - (13,37,083) 55,34,30,728 (39,68,11,202) - (10 35,81,344) 3,11,09,279 (-) ICICI Prudential Banking & PSU Debt Fund - Dividend ICICI Prudential Banking and PSU Debt Fund - Growth ICICI Prudential Corporate Bond Fund - Dividend ICICI Prudential Equity Arbitrage Fund - Dividend ICICI Prudential Equity Income Fund - Dividend ICICI Prudential Short Term Plan - Dividend ICICI Prudential Ultra Short Term Plan - Dividend ICICI Prudential Blended Plan A - Dividend ICICI Prudential Blended Plan B - Growth ICICI Prudential Income Plan - Dividend ICICI Prudential Long Term Gilt Fund - Growth ICICI Regular Saving Fund - Dividend ICICI Short Term Gilt Fund - Growth ICICI Prudential Liquid Plan - Direct - Growth ICICI Prudential - Liquid Regular Plan - Growth ICICI Prudential Flexible Income - Regular Plan - Growth ICICI Prudential Liquid Fund - Direct Plan - Growth Option ICICI Prudential Liquid - Direct Plan - Daily Dividend IDBI Liquid Fund - Growth IDFC Arbitrage Fund - Dividend IDFC Arbitrage Plus Fund - Dividend IDFC Banking Debt Fund - Growth - 635 50 - 680 100 1,090 1,300 110 200 - - - 50 11 56 - - 2 - 705 - 40 - 475 50 675 255 - 1,025 75 110 200 475 125 500 - 11 17 10 100 - 200 505 125 - 343 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254As at 31st March, 2016 (` in crore) As at 31st March, 2015 22,42,65,435 (-) 87,35,45,547 (-) - (7,48,48,058) 28,30,06,229 (-) 19,04,43,460 (10,88,83,711) 67,95,72,510 (60,22,44,143) 27,70,26,789 (16,56,58,516) 1,03,52,836 (1,19,50,858) - (20,52,369) - (1,41,795) 4,64,107 (-) 4,83,12,913 (-) 8,28,91,392 (-) 6,74,35,163 (-) 20,94,33,717 (20,94,33,717) 4,50,68,027 (4,50,68,027) 19,71,60,883 (19,71,60,883) - (13,99,57,033) 5,46,63,541 (-) 2,25,38,225 (-) 17,01,02,554 (13,40,05,771) - (3,81,67,259) - (3,15,22,512) IDFC Corp Bond Fund - Growth IDFC Dynamic Bond Fund - Dividend IDFC Government Securities Fund - Growth IDFC Money Manager Investment Fund - Dividend IDFC Super Saver Income Fund - Short Term - Growth IDFC Super Saver Income Fund - Medium Term Plan - Dividend IDFC Super Saver Income Fund- Short Term Plan - Dividend IDFC Arbitrage Fund - Dividend - Regular Plan IDFC Cash Fund IDFC Cash Fund - Regular Plan - Growth IDFC Cash Fund - Growth - Direct Plan Indiabulls Arbitrage Fund - Dividend Indiabulls Blue Chip Fund - Dividend Indiabulls Income Fund - Growth JM Arbitrage Advantage Fund - Bonus JM Money Manager Fund - Super Plan - Bonus JM Money Manager Fund - Super Plus Plan - Bonus JPMorgan India Active Bond Fund - Dividend Kotak 50 Direct Fund - Dividend Kotak Banking & PSU Debt Fund - Growth Kotak Bond Short Term - Growth Kotak Bond Fund - Plan A - Dividend Kotak Bond Scheme - Plan A - Growth 225 1,000 - 300 475 710 295 13 - - 85 50 125 85 208 44 199 - 250 75 404 - - - - 125 - 275 625 175 15 3 24 - - - - 208 44 199 200 - - 304 150 125 344 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.As at 31st March, 2016 (` in crore) As at 31st March, 2015 12,43,75,652 (-) 52,21,26,661 (20,50,03,232) 14,27,13,144 (-) 4,05,61,808 (-) - (16,88,74,261) - (11,16,73,351) 4,92,02,764 (2,00,00,000) 5,79,076 (5,79,076) - (15,01,53,208) 26,03,88,208 (10,00,92,744) 4,46,61,818 (-) 10,75,21,101 (10,75,21,101) - (11,76 732) - (4,72,07,221) 65,73,20,449 (9,52,48,074) 50,36,49,969 (-) - (11,53,39,989) - (4,66,24,829) 77,03,25,139 (65,66,28,473) - (7,60,51,576) - (97,40,32,447) Kotak Bond Short Term - Dividend Kotak Equity Arbitrage - Dividend Kotak Equity Savings Scheme - Dividend Kotak Flexi Debt Fund - Growth Kotak Income Opportunities Fund - Dividend Kotak Medium Term Fund - Dividend L&T Arbitrage Opportunities Fund L&T Cash Bonus Liquid Fund L&T Income Opportunity - Dividend L&T Short Term Opportunities Fund- Dividend L&T Short Term Opportunities Fund - Growth L&T Triple Ace Bond Fund - Bonus LIC Nomura Liquid Fund - Growth LIC Nomura Savings Plus Fund - Growth Reliance Arbitrage Advantage Fund - Dividend Reliance Banking and PSU Debt Fund - Dividend Reliance Corporate Bond Fund - Growth Reliance Corporate Bond Fund - Dividend Reliance Floating Rate Fund Short Term Plan - Dividend Reliance Income Fund - Growth Reliance Regular Savings Fund Debt Plan - Dividend 1,66,55,55,075 (1,36,24,06,377) 5,42,06,239 (1,55,32,291) Reliance Short Term Fund - Dividend Religare Invesco Arbitrage Fund - Dividend 126 951 150 75 - - 50 59 - 265 64 133 - - 695 525 - - 795 - - 1,755 70 - 315 - - 190 125 20 59 150 100 - 133 283 100 100 - 125 50 675 350 1,000 1,425 20 345 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254As at 31st March, 2016 (` in crore) As at 31st March, 2015 6,03,55,015 (6,03,55,015) 7,72,821 (-) - (2,33,47,858) 17,98,180 (17,98,180) 16,10,744 (5,58,353) 2,87,771 (-) 24,64,62,740 (5,08,30,350) - (23,19,53,980) 16,32,512 (16,32,512) 4,427 (3,18,960) 7,61,038 (8,31,421) 47,97,91,326 (39,21,38,152) 17,81,54,863 (17,81,54,863) 30,09,68,369 (30,09,68,369) 9,57,31,798 (9,57,31,798) - (75,623) 57,52,39,255 (34,20,77,650) 342 (342) - (8,73,988) 15,54,28,334 (-) - (25,00,00,000) - (25,58,386) - (12,03,386) Religare Invesco Arbitrage - Bonus Reliance Invesco Bank Debt Fund - Growth Religare Invesco Growth Fund – Dividend Religare Invesco Short Term Fund - Growth Religare Invesco Short Term Fund - Dividend Reliance Liquid Fund SBI Arbitrage Opportunity Fund - Dividend SBI Dynamic Bond Fund - Growth SBI Dynamic Bond Fund SBI Premier Liquid Fund - Growth SBI Premier Liquid Fund Regular Plan - Growth Option SBI Short Term Debt Fund - Growth Sundaram Flexible Fund Short Term Plan - Bonus Sundaram Money Fund - Bonus Sundaram Select Debt Short Term Asset Plan - Bonus Templeton India - Short Term - Growth Tata Short Term Bond Fund - Dividend Tata Liquid Fund [` 8,82,902; Previous Year ` 8,82,902)] UTI Liquid Fund - Cash Plan - Growth UTI Banking and PSU Debt Fund UTI Bond Fund - Dividend UTI Floating Rate Fund - Dividend UTI Floating Rate Fund - Growth 65 100 - 295 225 44 340 - 3 1 179 687 175 272 100 - 805 - - 184 - - - 65 - 50 295 75 - 70 400 3 70 181 537 175 272 100 20 475 - 200 - 250 300 239 346 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.- (12,62,99,078) 23,13,94,231 (52,77,23,010) 56,47,36,316 (35,25,25,179) 8,00,26,087 (-) 22,762 (-) 10,391 (-) 5,60,625 (-) UTI Income Opportunities Fund - Growth UTI Short Term Income Fund Institutional Plan - Dividend UTI Short Term Income Fund Institutional Plan - Growth UTI Spread Fund - Regular - Dividend UTI - Money Market - Institutional Plan - Growth UTI Floating Rate Fund - STP - Regular Plan - Growth UTI Short Term Income Fund Institutional Option Growth In Treasury Bills - Quoted In Commercial Paper - Unquoted Small Industries Development Bank Of India Limited In Certificate of Deposits - Unquoted Andhra Bank Axis Bank Canara Bank Corporation Bank IDBI Bank Indian Bank Oriental Bank of Commerce Total Current Investments * Includes ` 2,285 crore (Previous Year ` 1,015 crore) given as collateral security. As at 31st March, 2016 (` in crore) As at 31st March, 2015 - 246 918 125 3 1 1 - - - 208 197 463 1,387 - - 28,113 - - 160 550 518 - - - - 3 230 644 - 2,624 - 461 969 736 26,684 3 230 2,255 39,928 5,434 51,014 347 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review14825525637938039655147025416. INVENTORIES Raw Materials (Including Material in Transit) Stock-in-Process Stock-in-Trade Finished Goods Stores, Chemicals and Packing Materials Others 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 # As at 31st March, 2016 (` in crore) As at 31st March, 2015 14,997 9,083 6,388 9,257 3,460 3,779 46,964 20,276 10,881 5,055 11,310 3,056 2,670 53,248 As at 31st March, 2016 (` in crore) As at 31st March, 2015 279 4,618 4,897 189 5,126 5,315 As at 31st March, 2016 (` in crore) As at 31st March, 2015 56 4,094 7,040 11,190 7 7 11,197 49 1,418 11,005 12,472 73 73 12,545 Sub-Total Total * ** # Include Unclaimed Dividend of ` 223 crore (Previous Year ` 199 crore). Includes Deposits of ` 526 crore (Previous Year ` 25 crore) with maturity of more than 12 months. Deposits of ` 7 crore (Previous Year ` 73 crore) 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 # Includes primarily Interest Receivable and Advance to Employees. 348 As at 31st March, 2016 (` in crore) As at 31st March, 2015 3 9,863 1,536 6,432 17,834 3 5,695 1,170 4,303 11,171 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 20. OTHER CURRENT ASSETS Interest Accrued on Investment Share Application Money (` 25,00,000) Others Total 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 As at 31st March, 2016 (` in crore) As at 31st March, 2015 934 - 4,833 5,767 2015-16 3,026 734 577 1,098 1,351 690 44 1,660 148 680 2,277 327 3,284 (` in crore) 2014-15 4,513 306 335 1,076 3,102 286 20 1,294 458 FMP Income Profit on De-subsidiarisation of Subsidiary Share in income of Associates Other Non Operating Income Exceptional Item* Total *Exceptional items represent the net impact of the following transactions in Reliance Holding USA, Inc.: • Reliance Eagle ford Midstream LLC, a subsidiary, sold its 49.90% interest in EFS Midstream LLC at a profit of ` 3,684 crore (net of taxes). • The company follows full cost method of accounting. In view of indicators of impairment, the company has tested for impairment of its Shale Gas assets. Accordingly the recoverable amount was determined on the basis of value in use being the net present value of future cash flows. This has resulted in an impairment of ` 3,261 crore (net of taxes ) in respect of development rights and Intangible assets under development. 1,752 1,764 8 118 152 - 8,613 1,808 1,452 43 211 549 423 8,246 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 / merged during the year Less: Cost of Land acquired by Government of Haryana, Consideration of Land surrendered to HSIIDC, Reversal / Recovery of Annuity on HSIIDC Surrendered Land Total 2015-16 24,728 15,645 9,083 16,365 10,881 27,246 - 54 1 (` in crore) 2014-15 27,246 16,365 10,881 17,294 12,012 29,306 41 - 536 27,299 2,571 28,729 1,483 349 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 23. EMPLOYEE BENEFITS EXPENSE Salaries and Wages Contribution to Provident and Other Funds Staff Welfare Expenses Total 2015-16 6,734 453 537 7,724 (` in crore) 2014-15 5,355 468 439 6,262 23.1 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 Defined Benefit Plan 2015-16 228 17 116 (` in crore) 2014-15 188 18 75 I) Reconciliation of opening and closing balances of Defined Benefit Obligation Gratuity (Funded) Gratuity (Unfunded) (` in crore) Compensated Absences (Funded) Compensated Absences (Unfunded) 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 Defined Benefit Obligation at beginning of the year Add : On Acquisition/Transfers Current Service Cost Interest Cost Actuarial (Gain) / Loss Benefits Paid Defined Benefit Obligation at year end 782 6 63 62 19 (64) 868 630 23 52 53 79 (55) 782 25 - 14 2 - (3) 38 11 7 8 1 2 (4) 25 48 - 6 4 10 (3) 65 41 - 3 3 4 (3) 48 II) Reconciliation of opening and closing balances of fair value of Plan Assets 297 - 29 24 43 (41) 352 217 14 22 18 63 (37) 297 (` in crore) Fair value of Plan Assets at beginning of year Add : On Acquisition/Transfers 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 Gratuity (Funded) Compensated Absences (Funded) 2015-16 766 6 61 12 67 (61) 851 73 2014-15 630 8 51 10 114 (47) 766 54 2015-16 31 - 3 - 5 (3) 36 - 2014-15 29 - 2 - 3 (3) 31 - 350 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. III) Reconciliation of fair value of assets and obligations Gratuity (Funded) As at 31st March Gratuity (Unfunded) As at 31st March 2016 851 868 17 2015 766 782 16 2016 - 38 38 2015 - 25 25 Compensated Absences (Funded) As at 31st March 2015 31 48 17 2016 36 65 29 (` in crore) Compensated Absences (Unfunded) As at 31st March 2015 - 297 297 2016 - 352 352 Fair value of Plan Assets Present value of Obligation Amount recognised in Balance Sheet IV) Expenses recognised during the year Gratuity (Funded) Gratuity (Unfunded) Compensated Absences (Funded) (` in crore) Compensated Absences (Unfunded) Current Service Cost Interest Cost Expected Return on Plan Assets Actuarial (Gain) / Loss Net Cost V) Investment Details : Gratuity (Funded) GOI Securities Public Securities State Government Securities Insurance Policies Others (including Bank Balances) VI) Actuarial assumptions 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 22 18 - 63 103 52 53 (51) 69 123 63 62 (61) 8 72 14 2 - - 16 29 24 - 43 96 6 4 (3) 10 17 8 1 - 2 11 3 3 (2) 4 8 As at 31st March, 2016 % Invested 2.35 1.17 0.12 92.13 4.23 100.00 ` in crore 20 10 1 784 36 851 As at 31st March, 2015 % Invested 2.74 3.00 0.65 92.82 0.79 100.00 ` in crore 21 23 5 711 6 766 Gratuity (Funded) Gratuity (Unfunded) Compensated Absences (Funded) Compensated Absences (Unfunded) 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 Mortality Table 2006-08 2006-08 2006-08 2006-08 2006-08 2006-08 2006-08 2006-08 Discount Rate (per annum) Expected rate of return on Plan Assets (per annum) Rate of escalation in Salary (per annum) (Ultimate) (Ultimate) (Ultimate) (Ultimate) (Ultimate) (Ultimate) (Ultimate) (Ultimate) 8% 8% 6% 8% 8% 6% 8% 6% 8% - 6% 8% 8% 6% 8% 8% 6% 8% 6% 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. 351 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 VII) Amounts recognised in current year and previous four years 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 As at 31st March 2016 906 851 55 20 12 2015 807 766 41 81 10 2014 641 630 11 (15) 2 (` in crore) 2013 585 560 25 58 10 2012 476 422 54 21 2 VIII) The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2015-16. 23.2 The Company had announced Voluntary Separation Scheme (VSS) for the employees of Allahabad & Nagpur Manufacturing Divisions (Previous Year Silvassa Manafacturing Division) during the year. A sum of ` 156 crore (Previous Year ` 32,00,000) has been paid during the year and debited to the Profit and Loss Statement under the head “Employee Benefits Expense”. 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 Capital Reserve (Refer Note No. 11.7) Total 2015-16 2,513 16 1,079 3,608 2015-16 12,916 - - 12,916 2015-16 (` in crore) 2014-15 2,486 16 814 3,316 (` in crore) 2014-15 11,661 28 86 11,547 (` in crore) 2014-15 26. OTHER EXPENSES Manufacturing Expenses Stores, Chemicals and Packing Materials Electric Power, Fuel and Water Labour Processing, Production Royalty and Machinery Hire Charges Repairs to Building Repairs to Machinery Exchange Difference (Net) Excise Duty # Lease Rent 5,166 10,675 1,312 99 1,214 (550) 449 13 5,222 13,261 1,384 67 1,105 237 305 3 18,378 21,584 352 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Land Development and Construction Expenditure Selling and Distribution Expenses Warehousing and Distribution Expenses Sales Tax /VAT Other Selling and Distribution Expenses Establishment Expenses Professional Fees General Expenses Programming and Telecast Related Expenses Rent Insurance Rates & Taxes Other Repairs Travelling Expenses Payment to Auditors Loss on Sale / Discard of Assets Charity and Donations Less: Transfer to Project Development Expenditure Total # 2015-16 45 9,972 6,213 1,416 2,343 1,865 2,338 1,225 1,240 961 237 508 449 38 76 684 (` in crore) 2014-15 35 8,767 5,935 1,063 1,769 1,242 2,864 858 1,095 780 248 556 388 28 85 806 9,621 2,507 35,509 8,950 1,573 37,763 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. 26.1 Corporate Social Responsibility (CSR) (a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the company during the year is ` 566 crore (Previous Year ` 534 crore) (b) Expenditure related to Corporate Social Responsibility is ` 660 crore (Previous Year ` 762 crore). Details of Amount spent towards CSR given below: Particulars Rural Transformation Health Education Sports for Development Others Total 2015-16 111 314 218 9 8 660 (` in crore) 2014-15 127 608 19 4 4 762 (c) (d) Out of note (b) above, ` 586 crore (Previous Year ` 730 crore) is spent through Reliance Foundation, a related party. Out of note (b) above, ` 7 crore (Previous Year ` Nil) is towards construction / acquisition of an asset that will be owned by the Company. 353 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 27. EARNINGS PER SHARE (EPS) Net Profit after Tax (after adjusting Minority Interest) as per Profit and Loss Statement (` in crore) (Short) provision of tax for earlier years (Net) (` in crore) (Previous Year ` 49,19,979) (Short) Provision of Tax for earlier years (Net) - Minority Interest (Previous Year ` Nil) Net profit attributable to Equity Shareholders (` in crore) Weighted Average number of Equity Shares used as denominator for calculating EPS Basic and Diluted Earnings per Share (`) Face Value per Equity Share (`) i) ii) iii) iv) v) vi) vii) 26.1 2015-16 2014-15 27,630 23,566 (1) (1) - - 27,628 2,94,59,61,982 23,566 2,94,18,58,781 93.78 10.00 80.11 10.00 Based on alternate interpretation for calculation of Diluted EPS as per Accounting Standard (AS) 20, the Diluted EPS for the year ending March’ 16 and year ended March’15 are ` 93.57 and ` 79.91 respectively. 28. RELATED PARTY DISCLOSURES : (i) List of related parties and relationships Sr. No. Name of the Related Party 24 X 7 Learning Private Limited 1. Aeon Learning Private Limited 2. Algenol LLC 3. Ashwani Commercials Private Limited 4. Atri Exports Private Limited 5. Book My Show Limited 6. Carin Commercials Private Limited 7. Centura Agro Private Limited 8. Chander Commercials Private Limited 9. Creative Agrotech Private Limited 10. Eenadu Television Private Limited 11. Einsten Commercials Private Limited 12. Extramarks Education Private Limited 13. Fame Agro Private Limited 14. Gaurav Overseas Private Limited 15. GenNext Ventures Investment Advisers LLP 16. Gujarat Chemical Port Terminal Company Limited 17. Honeywell Properties Private Limited 18. Indian Vaccines Corporation Limited 19. Jaipur Enclave Private Limited 20. Kaniska Commercials Private Limited 21. 22. KCIPI Trading Company Private Limited 23. Marugandha Land Developers Private Limited 24. Matrix Genetics LLC 25. 26. 27. 28. 29. N.C. Trading Company Private Limited Netravati Commercials Private Limited Noveltech Agro Private Limited Parinita Commercials Private Limited Pepino Farms Private Limited 354 Relationship Associate Companies Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Sr. No. Name of the Related Party Relationship Prakhar Commercials Private Limited Rakshita Commercials Private Limited Reliance Commercial Dealers Limited Reliance Commercial Trading Private Limited Reliance Europe Limited Reliance Gas Transportation Infrastructure Limited Reliance Industrial Infrastructure Limited Reliance LNG Limited Reliance Ports and Terminals Limited Reliance Utilities and Power Private Limited Rocky Farms Private Limited R P Chemicals (Malaysia) Sdn. Bhd. (Upto 10.02.2016) Shree Salasar Bricks Private Limited Vishnumaya Commercials Private Limited Vayana Private Limited Brooks Brothers India Private Limited D.E. Shaw India Securities Private Limited Diesel Fashion India Reliance Private Limited Football Sports Development Limited IBN Lokmat News Private Limited Iconix Lifestyle India Private Limited IMG Reliance Limited India Gas Solutions Private Limited Indiacast Media Distribution Private Limited Indiacast UK Limited Indiacast US Limited Indiacast Distribution Private Limited 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. Marks and Spencer Reliance India Private Limited 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. Prism Tv Private Limited Reliance Paul & Shark Fashions Private Limited Reliance-GrandVision India Supply Private Limited Reliance-Vision Express Private Limited Roptonal Limited Ryohin - Keikaku Reliance India Private Limited Supreme Tradelinks Private Limited Ubona Technologies Private Limited Viacom18 Media (UK) Limited Viacom18 Media Private Limited Viacom18 US Inc. Zegna South Asia Private Limited Shri Mukesh D. Ambani Shri Nikhil R. Meswani Shri Hital R. Meswani Shri P. M. S. Prasad Shri P. K. Kapil Smt. Nita M. Ambani 75. 76. 77. 78. 79. 80. Dhirubhai Ambani Foundation Hirachand Govardhandas Ambani Public Charitable Trust HNH Trust and HNH Research Society Jamnaben Hirachand Ambani Foundation Reliance Foundation Associate Companies Joint Ventures Key Managerial Personnel Relative of Key Managerial Personnel Enterprises over which Key Managerial Personnel are able to exercise significant influence 355 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254(ii) Transactions during the year with related parties : Sr. No. Nature of Transactions (Excluding Reimbursements) 1. 2. 3. 4. 5. 6. 7. 8. 9. Purchase of Fixed Assets Purchase / Subscription of Investments Sale / Transfer / Redemption of Investments Capital Advance Given / (Returned) 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 / Relative 12. Sales and Distribution Expenses 13. Rent 14. Professional Fees 15. General Expenses 16. Donations 17. Finance Cost Balance as at 31st March, 2016 1. Investments 2. 3. 4. 5. 6. 7. 8. 9. Trade Receivables Loans and Advances Deposits Unsecured Loans Trade and Other Payables * Finance Lease Obligations Financial Guarantees Performance Guarantees Note : Figures in italic represents Previous Year’s amounts. * Includes reimbursements 356 Associates Key Managerial Personnel / Relative - - - - - - - - - - - - - - - - - - - - 54 48 - - - - - - - - - - - - 237 264 49 1 1,476 1 - (8) 193 (11) 320 432 22 50 1,376 1,319 1,719 1,579 585 622 - - 2,609 2,767 9 8 59 47 459 299 - - 1 2 3,397 5,189 35 45 159 21 2,221 2,172 66 63 322 670 1 - 1,837 1,315 135 115 - - - - - - - - - - - - - - - - - - Others (` in crore) Total - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 611 743 - - - - - - - - - - - - - - - - - - - - 237 264 49 1 1,476 1 - (8) 193 (11) 320 432 22 50 1,376 1,319 1,719 1,579 585 622 54 48 2,609 2,767 9 8 59 47 459 299 611 743 1 2 3,397 5,189 35 45 159 21 2,221 2,172 66 63 322 670 1 - 1,837 1,315 135 115 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Disclosure in respect of Major Related Party Transactions during the year : Particulars Purchase of Fixed Assets Gujarat Chemical Port Terminal Company Limited Reliance Gas Transportation and Infrastructure Limited Reliance Industrial Infrastructure Limited Reliance Ports and Terminals Limited Reliance Utilities and Power Private Limited Purchase / Subscription of Investments Algenol LLC Aurora Algae LLC Vayana Private Limited Sale / Transfer / Redemption of Investments EFS Midstream LLC Extramarks Education Private Limited Reliance Commercial Trading Private Limited Capital Advance Given / (Returned) Reliance Industrial Infrastructure Limited Reliance Utilities and Power Private Limited Net Loans and Advances, Deposits Given/ (Returned) Ashwani Commercials Private Limited Gujarat Chemical Port Terminal Company Limited Kaniska Commercials Private Limited Reliance Commercial Dealers Limited Reliance Commercial Trading Private Limited Revenue from Operations Eenadu Television Private Limited Reliance Commercial Dealers Limited Reliance Foundation Reliance Gas Transportation Infrastructure Limited Reliance Industrial Infrastructure Limited Reliance Ports and Terminals Limited Reliance Utilities and Power Private Limited Wespro Digital Private Limited Other Income Extramarks Education Private Limited Gujarat Chemical Port Terminal Company Limited Reliance Europe Limited Reliance Gas Transportation Infrastructure Limited Reliance Ports and Terminals Limited Reliance Utilities and Power Private Limited Relationship 2015-16 2014-15 Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Others Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate - - 3 166 68 25 - 24 1,334 100 42 - - - 28 1 170 (6) 1 13 4 60 1 5 236 - 5 - 13 - 1 3 2 46 8 198 10 - 1 - - - 1 (3) (5) (1) 12 1 (23) 1 - 16 - 50 - 2 363 1 9 10 13 14 1 3 357 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Particulars Purchases / Material Consumed Gujarat Chemical Port Terminal Company Limited R P Chemicals (Malaysia) Sdn. Bhd. Reliance Gas Transportation Infrastructure Limited Reliance Industrial Infrastructure Limited Reliance Ports and Terminals Limited Reliance Utilities and Power Private Limited Electric Power, Fuel and Water Reliance Utilities and Power Private Limited Hire Charges Gujarat Chemical Port Terminal Company Limited Reliance Gas Transportation Infrastructure Limited Reliance Industrial Infrastructure Limited Reliance Ports and Terminals Limited Payment To Key Managerial Personnel / Relative Shri Mukesh D. Ambani Shri Nikhil R. Meswani Shri Hital R. Meswani Shri P. M. S. Prasad Shri P. K. Kapil Smt Nita M. Ambani Sales & Distribution Expenses Gujarat Chemical Port Terminal Company Limited Reliance Ports and Terminals Limited Rent Reliance Industrial Infrastructure Limited Professional Fees GenNext Ventures Investment Advisers LLP Reliance Europe Limited Reliance Industrial Infrastructure Limited General Expenses Eenadu Television Private Limited Matrix Genetics LLC Reliance Commercial Dealers Limited Reliance Europe Limited Reliance Ports and Terminals Limited 358 Relationship 2015-16 2014-15 Associate Associate Associate Associate Associate Associate - 745 - 20 611 - 3 1,052 3 19 241 - Associate 1,719 1,579 Associate Associate Associate Associate Key Managerial Personnel Key Managerial Personnel Key Managerial Personnel Key Managerial Personnel Key Managerial Personnel Relative of Key Managerial Personnel Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate 117 214 34 220 15 14 14 7 3 1 90 194 37 301 15 12 12 6 2 1 33 2,576 16 2,751 9 1 34 24 2 27 418 - 12 8 5 25 17 7 - 282 7 3 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Particulars Relationship 2015-16 2014-15 Donations Hirachand Govardhandas Ambani Public Charitable Trust Jamnaben Hirachand Ambani Foundation Reliance Foundation Finance Cost Reliance Europe Limited Loans & Advances Gujarat Chemical Port Terminal Company Limited Reliance Commercial Dealers Limited Reliance Commercial Trading Private Limited Reliance Europe Limited Deposits Ashwani Commercials Private Limited Atri Exports Private Limited Carin Commercials Private Limited Centura Agro Private Limited Chander Commercials Private Limited Creative Agrotech Private Limited Einsten Commercials Private Limited Fame Agro Private Limited Gaurav Overseas Private Limited Gujarat Chemical Port Terminal Company Limited Honeywell Properties Private Limited Jaipur Enclave Private Limited Kaniska Commercials Private Limited Marugandha Land Developers Private Limited Netravati Commercials Private Limited Noveltech Agro Private Limited Parinita Commercials Private Limited Pepino Farms Private Limited Prakhar Commercials Private Limited Rakshita Commercials Private Limited Reliance Commercial Dealers Limited Reliance Ports and Terminals Limited Reliance Utilities and Power Private Limited Rocky Farms Private Limited Shree Salasar Bricks Private Limited Vishnumaya Commercials Private Limited Others Others Others Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate 4 15 592 1 - 150 6 3 65 19 77 10 34 15 43 3 17 139 50 4 23 5 6 3 6 1 48 6 175 1,050 350 29 33 10 2 4 737 1 6 - 12 3 65 19 77 10 33 15 43 3 17 111 50 4 23 5 6 3 6 1 48 6 155 1,050 350 29 33 10 359 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review14825525637938039655147025429. (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 Reserves in India Reserves outside India (North America) Proved Reserves (Million MT) 2015-16 2014-15 Proved Developed Reserves (Million MT) 2014-15 2015-16 Proved Reserves (Million MT) 2015-16 2014-15 Proved Developed Reserves (Million MT) 2014-15 2015-16 1.96 2.78 (0.42) 4.32 2.47 (0.06) (0.45) 1.96 1.47 - (0.42) 1.05 2.09 (0.17) (0.45) 1.47 23.51 (0.85) (1.39) 21.27 20.51 4.48 (1.48) 23.51 7.44 (0.17) (1.39) 5.88 6.08 2.84 (1.48) 7.44 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*) 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 Gas: Beginning of the year Revision of estimates Production Closing balance for the year * 1 cubic meter (M3) = 35.315 cubic feet, 1 cubic feet = 1000 BTU and 1 MT = 7.5 bbl 86,230 (17,047) (3,442) 65,741 65,741 9,008 (3,018) 71,731 18,812 (1,212) (3,018) 14,582 15,444 6,810 (3,442) 18,812 53,665 (3,779) (3,096) 46,790 49,075 7,450 (2,860) 53,665 20,197 4,661 (3,096) 21,762 17,345 5,712 (2,860) 20,197 (b) (c) In case of producing field and fields where development of drilling activities are 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. The reserves estimates related to KGD6 and CBM have been revised. During the year, the Company recognized reserves towards MJ1 field of KGD6 block post review of Declaration of Commerciality (DoC) by Management Committee. 30. CONTINGENT LIABILITIES AND COMMITMENTS (I) Contingent Liabilities (A) Claims against the company / disputed liabilities not acknowledged as debts* (a) (b) Guarantees (i) In respect of joint ventures In respect of others (B) Guarantees to Banks and Financial Institutions against credit facilities extended to third parties and other Guarantees (a) In respect of joint ventures (b) In respect of others Performance Guarantees (a) In respect of joint ventures (b) In respect of others (ii) 360 As at 31st March, 2016 (` in crore) As at 31st March, 2015 900 3,072 19 7,112 - 181 800 2,330 12 9,579 - 135 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. (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 (C) Other Money for which the company is contingently liable (i) Liability in respect of bills discounted with Banks (Including third party bills discounting) (a) In respect of joint ventures (b) In respect of others As at 31st March, 2016 (` in crore) As at 31st March, 2015 20 35,774 - 734 20 18,224 - 1,121 (II) Commitments (A) In respect of Joint Ventures In respect of others Estimated amount of contracts remaining to be executed on capital account and not provided for: (a) (b) Uncalled Liability on Shares and Other Investments Partly paid Other commitments 819 Sales tax deferral liability assigned The Company has been advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary. 886 41,157 83 219 21,303 115 - (B) (C) * (III) The Income -Tax Assessments of the Company have been completed up to Assessment Year 2011-12. There is no outstanding demand as on date. The assessed tax liability exceeds the provision made, by ` 1,119 crore as at 31st March, 2016. Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the company has been legally advised that the additional demand raised is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary. 31. FINANCIAL AND DERIVATIVE INSTRUMENTS a) Derivative contracts entered into by the Company and outstanding as on 31st March, 2016 (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, 2016 amount to ` 1,50,784 crore (Previous Year ` 1,74,754 crore). Category wise break up is given below : Sr. No. 1 2 3 4 Particulars Forward Contracts Currency Swaps Interest Rate Swaps Options As at 31st March, 2016 Amount (` in crore) 88,168 2,463 56,803 3,350 As at 31st March, 2015 Amount (` in crore) 95,886 2,381 69,993 6,494 361 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 (ii) For Hedging Commodity related risks : Category wise break up is given below : As at 31st March, 2016 As at 31st March, 2015 Sr. No. Particulars Petroleum Product Sales Feedstock Other Products Petroleum Product Sales Feedstock Other Products 1 2 3 4 Forward Swaps Futures Spreads Options (in Kbbl) 24,617 15,670 86,536 4,470 (in Kbbl) 89,877 6,619 98,906 68,565 (in Kg) 5,568 - - - (in Kbbl) 40,469 16,186 89,290 12,150 (in Kbbl) 49,460 23,980 1,04,653 1,30,618 (in Kg) 4,224 - - - In addition the Company has margin hedges outstanding for contracts relating to petroleum product sales of 1,41,145 kbbl (Previous Year 88,508 kbbl) and freight hedges of 4,246 kbbl (Previous Year Nil). b) c) Foreign Currency Exposures that are not hedged by derivative instruments as on 31st March, 2016 amount to ` 94,157 crore (Previous Year ` 85,791 crore). The unhedged exposures are naturally hedged by future foreign currency earnings and earnings linked to foreign currency. Other Option Contracts of ` 251 crore (Previous Year ` 16 crore) and Future Contracts of ` 118 crore (Previous Year ` 306 crore) are outstanding as on 31st March, 2016. 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) (iv) Income Expenses As at 31st March, 2016 (` in crore) As at 31st March, 2015 177 - 304 67 1,332 101 40 194 719 2,166 2,103 172 13 321 25 1,067 91 35 126 587 1,428 1,448 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, 2016 to 31st March, 2016 in respect of subsidiaries / associates having financial year ended 31st December, 2015. 362 Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 34. SEGMENT INFORMATION The Company has identified four reportable segments viz. Refining, Petrochemicals, Oil & Gas and Organized Retail. Segments have been identified and reported taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting. a) b) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Unallocable”. Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”. (i) Primary Segment Information: Particulars Refining Petrochemicals Oil and Gas Organized Retail Others Unallocable (` in crore) Total 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 2014-15 1 Segment Revenue External Turnover 1,76,367 2,57,156 81,766 94,644 7,518 10,934 21,011 17,121 Inter Segment Turnover 58,579 82,734 644 2,160 9 600 601 519 9,429 2,012 8,639 1,868 Gross Turnover 2,34,946 3,39,890 82,410 96,804 7,527 11,534 21,612 17,640 11,441 10,507 Less: Excise duty / Service Tax recovered 11,399 4,552 6,684 7,183 139 224 147 91 1,178 1,009 Net Turnover 2,23,547 3,35,338 75,726 89,621 7,388 11,310 21,465 17,549 10,263 9,498 - - - - - - - - - - 2,96,091 3,88,494 - - 2,96,091 3,88,494 19,547 13,059 2,76,544 3,75,435 2 Segment Result before Interest and Taxes Less: Interest Expense Add: Interest Income Profit Before Tax Current Tax Deferred Tax Profit after Tax (before adjustment for Minority Interest) Add: Share of (Profit) / Loss transferred to Minority Profit after Tax (after adjustment for Minority Interest) 3 Other Information Segment Assets Segment Liabilities Capital Expenditure Depreciation / Amortisation and Depletion expense 23,598 15,827 10,221 8,291 378 3,181 506 417 1,067 958 791 1,243 36,561 29,917 - - - - - - - - - - - - - - - - - - 23,598 15,827 10,221 8,291 378 3,181 506 417 1,067 958 - - - - - - - - - - - - - - - - - - - - 3,608 3,026 209 8,073 191 3,316 4,513 2,440 6,296 1,178 3,608 3,026 35,979 8,073 191 3,316 4,513 31,114 6,296 1,178 23,598 15,827 10,221 8,291 378 3,181 506 417 1,067 958 (8,055) (5,034) 27,715 23,640 (35) (23) - - - - 23,563 15,804 10,221 8,291 378 3,181 (13) 493 (11) 406 (37) (40) - - (85) (74) 1,030 918 (8,055) (5,034) 27,630 23,566 1,39,667 1,39,832 61,180 39,633 3,242 47,312 31,317 3,266 85,277 12,895 4,507 3,494 59,190 12,700 8,056 2,802 83,943 6,268 9,701 4,805 77,918 5,996 15,807 4,382 10,113 3,703 269 376 8,138 1,937 368 349 1,54,433 1,00,087 1,32,781 1,19,321 6,06,214 5,04,486 59,800 50,821 222 31,221 39,341 168 21,074 8,064 777 6,390 5,358 580 1,64,920 1,05,556 1,12,995 1,00,247 12,916 11,547 * Total Gross Turnover is after elimination of inter segment turnover of ` 61,845 crore (Previous Year ` 87,881 crore). (ii) (iii) Inter segment pricing are at Arm’s length basis. As per Accounting Standard on Segment Reporting (AS-17), the Company has reported segment information on consolidated basis including businesses conducted through its subsidiaries. 363 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 (iv) – – – – – The reportable Segments are further described below : The refining segment includes production and marketing operations of the petroleum products. 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 oil and gas segment includes exploration, development and production of crude oil and natural gas. The organized retail segment includes organized retail business in India. The business, which were not reportable segments during the year, have been grouped under the “Others segment. This mainly comprises of: Textile SEZ development Telecom / Broadband Business Media (v) Secondary Segment Information: 1. 2. 3. 4. Segment Revenue – External Turnover - Within India - Outside India Total Revenue Segment Assets - Within India - Outside India Total Assets Segment Liabilities - Within India - Outside India Total Liabilities Capital Expenditure - Within India - Outside India Total Expenditure 2015-16 1,31,942 1,64,149 2,96,091 5,45,303 60,911 6,06,214 1,61,307 3,613 1,64,920 1,07,786 5,209 1,12,995 (` in crore) 2014-15 1,36,571 2,51,923 3,88,494 4,47,372 57,114 5,04,486 1,00,867 4,689 1,05,556 90,776 9,471 1,00,247 35. ENTERPRISES CONSOLIDATED AS SUBSIDIARY IN ACCORDANCE WITH ACCOUNTING STANDARD 21-CONSOLIDATED FINANCIAL STATEMENTS Name of the Enterprise Adventure Marketing Private Limited AETN18 Media Private Limited Affinity Names Inc. * Aurora Algae Inc. * Aurora Algae Pty Limited * Aurora Algae RGV LLC * Big Tree Entertainment Private Limited Big Tree Entertainment Singapore Pte. Limited Capital18 Fincap Private Limited 364 Country of Incorporation India India USA USA Australia USA India Singapore India Proportion of ownership interest 100.00% 21.27% 100.00% 94.82% 94.82% 94.82% 28.79% 28.79% 73.16% Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Name of the Enterprise Central Park Enterprises DMCC * Colorful Media Private Limited Colosceum Media Private Limited Delta Corp East Africa Limited Digital18 Media Limited E-18 Limited e-Eighteen.com Limited Equator Trading Enterprises Private Limited Ethane Crystal LLC Ethane Emerald LLC Ethane Opal LLC Ethane Pearl LLC Ethane Sapphire LLC Ethane Topaz LLC Fantain Sports Private Limited Gapco Kenya Limited * Gapco Tanzania Limited * Gapco Uganda Limited * Gapoil (Zanzibar) Limited * GenNext Holding Investments LLC *## Greycells18 Media Limited Gulf Africa Petroleum Corporation * Ibn18 (Mauritius) Limited Independent Media Trust Indiawin Sports Private Limited Infomedia Press Limited Kanhatech Solutions Limited Model Economic Township Limited Moneycontrol Dot Com India Limited Network18 Holdings Limited Network18 Media & Investments Limited NW18 HSN Holdings Plc Panorama Television Private Limited Petroleum Trust RB Holdings Private Limited RB Media Holdings Private Limited RB Mediasoft Private Limited Recron (Malaysia) Sdn Bhd * Reed Infomedia India Private Limited Reliance Aerospace Technologies Limited Reliance Ambit Trade Private Limited Reliance Aromatics and Petrochemicals Limited Reliance Brands Limited Reliance Chemicals Limited Country of Incorporation UAE India India Kenya India Cyprus India India Marshall Islands Marshall Islands Marshall Islands Marshall Islands Marshall Islands Marshall Islands India Kenya Tanzania Uganda Zanzibar USA India Mauritius Mauritius India India India India India India Mauritius India Cyprus India India India India India Malaysia India India India India India India Proportion of ownership interest 100.00% 100.00% 73.16% 58.80% 73.16% 73.16% 67.27% 41.70% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 14.68% 76.00% 76.00% 76.00% 76.00% 100.00% 54.30% 76.00% 41.70% 100.00% 100.00% 37.08% 90.67% 100.00% 67.27% 73.16% 73.16% 39.29% 41.70% 100.00% 100.00% 100.00% 100.00% 100.00% 73.16% 100.00% 100.00% 100.00% 84.99% 100.00% 365 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Name of the Enterprise Reliance Clothing India Private Limited Reliance Commercial Land & Infrastructure Limited Reliance Comtrade Private Limited Reliance Corporate IT Park Limited Reliance do Brasil Indústria e Comercio de Produtos Texteis, Quimicos Petroquimicos e Derivados Ltda * Reliance Eagleford Midstream LLC* Reliance Eagleford Upstream GP LLC* Reliance Eagleford Upstream Holding LP* Reliance Eagleford Upstream LLC* Reliance Eminent Trading & Commercial Private Limited Reliance Energy and Project Development Limited Reliance Energy Generation and Distribution Limited Reliance Ethane Holding Pte. Limited Reliance Exploration & Production DMCC * Reliance Gas Pipelines Limited Reliance Global Business B.V. Reliance Global Commercial Limited Reliance Global Energy Services (Singapore) Pte. Limited Reliance Global Energy Services Limited Reliance Holding USA, Inc.* Reliance Holding Acquisition Corp. * Reliance Industrial Investments and Holdings Limited Reliance Industries (Middle East) DMCC * Reliance Innovative Building Solutions Private Limited Reliance Jio Asiainfo Innovation Centre Limited Reliance Jio Digital Services Private Limited Reliance Jio Global Resources LLC * Reliance Jio Infratel Private Limited Reliance Jio Infocomm Limited Reliance Jio Infocomm Pte. Limited * Reliance Jio Infocomm UK Limited * Reliance Jio Infocomm USA Inc. * Reliance Jio Media Private Limited Reliance Jio Messaging Services Private Limited Reliance Lifestyle Holdings Limited Reliance Marcellus LLC* Reliance Marcellus II LLC* Reliance Payment Solutions Limited Reliance Petro Marketing Limited Reliance Petroinvestments Limited Reliance Polyolefins Limited Reliance Progressive Traders Private Limited Reliance Prolific Commercial Private Limited 366 Country of Incorporation India India India India Proportion of ownership interest 94.40% 100.00% 100.00% 100.00% Brazil USA USA USA USA India India India Singapore UAE India Netherlands India Singapore UK USA USA India UAE India India India USA India India Singapore UK USA India India India USA USA India India India India India India 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.44% 100.00% 99.44% 99.44% 99.44% 99.44% 100.00% 76.56% 84.99% 100.00% 100.00% 100.00% 94.40% 100.00% 100.00% 100.00% 100.00% Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Name of the Enterprise Reliance Prolific Traders Private Limited Reliance Retail Finance Limited Reliance Retail Insurance Broking Limited Reliance Retail Limited Reliance Retail Ventures Limited Reliance Sibur Elastomers Private Limited Reliance Supply Solutions Private Limited ** Reliance Strategic Investments Limited Reliance Textiles Limited Reliance Trading Limited Reliance Universal Commercial Limited Reliance Universal Enterprises Limited Reliance Universal Traders Private Limited Reliance USA Gas Marketing LLC * Reliance Vantage Retail Limited Reliance Ventures Limited Reliance World Trade Private Limited Reliance-Grand Optical Private Limited RIL (Australia) Pty Limited RIL Exploration and Production (Myanmar) Company Limited RIL USA, Inc.* RP Chemicals (Malaysia) Sdn. Bhd. * RRB Investments Private Limited RRB Mediasoft Private Limited RRK Finhold Private Limited RVT Finhold Private Limited RVT Media Private Limited Setpro18 Distribution Limited Spacebound Web Labs Private Limited Strategic Manpower Solutions Limited Surela Investment and Trading Private Limited Television Eighteen Mauritius Limited Television Eighteen Media and Investments Limited TV18 Broadcast Limited TV18 Home Shopping Network Limited Watermark Infratech Private Limited Wave Land Developers Limited Web18 Holdings Limited Web18 Software Services Limited ** ## * Formerly known as Office Depot Reliance Supply Solutions Private Limited Formerly known as Reliance Marcellus Holding LLC Subsidiary Company having 31st December as a reporting date Country of Incorporation India India India India India India India India India India India India India USA India India India India Australia Myanmar USA Malaysia India India India India India India India India India Mauritius Mauritius India India India Kenya Cyprus India Proportion of ownership interest 100.00% 100.00% 100.00% 94.40% 94.45% 74.90% 100.00% 100.00% 100.00% 94.40% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 94.40% 100.00% 100.00% 100.00% 100.00% 73.16% 100.00% 73.16% 73.16% 41.70% 73.16% 16.16% 100.00% 100.00% 73.16% 73.16% 41.70% 39.29% 100.00% 100.00% 73.16% 73.16% 367 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review14825525637938039655147025436. Significant Enterprises consolidated as Associates and Joint Ventures in accordance with Accounting Standard 23 - Accounting for Investments in Associates in Consolidated Financial Statements and Accounting Standard 27 - Financial Reporting of Interests in Joint Ventures respectively: Name of the Enterprise 24 X 7 Learning Private Limited Aeon Learning Private Limited Algenol LLC# Book My Show Limited Brooks Brothers India Private Limited D.E. Shaw India Securities Private Limited Diesel Fashion India Reliance Private Limited Eenadu Television Private Limited Extramarks Education Private Limited Football Sports Development Limited Gaurav Overseas Private Limited GenNext Ventures Investment Advisers LLP Gujarat Chemical Port Terminal Company Limited IBN Lokmat News Private Limited Iconix Lifestyle India Private Limited IMG Reliance Limited India Gas Solutions Private Limited Indiacast Distribution Private Limited * Indiacast Media Distribution Private Limited Indiacast UK Limited Indiacast US Limited Indian Vaccines Corporation Limited Marks and Spencer Reliance India Private Limited Matrix Genetics LLC# Prism Tv Private Limited Reliance Commercial Dealers Limited Reliance Commercial Trading Private Limited Reliance Europe Limited# Reliance Industrial Infrastructure Limited Reliance LNG Limited Reliance Paul & Shark Fashions Private Limited Reliance-GrandVision India Supply Private Limited Reliance-Vision Express Private Limited Roptonal Limited Ryohin - Keikaku Reliance India Private Limited Supreme Tradelinks Private Limited Ubona Technologies Private Limited Vayana Private Limited Viacom18 Media (UK) Limited Viacom18 Media Private Limited Viacom18 US Inc. Zegna South Asia Private Limited # * Associate Company having 31st December as a reporting date. Formerly known as Indiacast UTV Media Distribution Private Limited 368 Country of Incorporation India India USA New Zealand India India India India India India India India India India India India India India India UK USA India India USA India India India UK India India India India India Cyprus India India India India UK India USA India Proportion of ownership interest 27.42% 18.29% 30.95% 7.48% 41.64% 50.00% 41.64% 10.22% 38.46% 32.50% 50.00% 50.00% 41.80% 20.85% 42.49% 50.00% 50.00% 31.27% 31.27% 31.27% 31.27% 33.33% 46.25% 30.63% 20.85% 50.00% 50.00% 50.00% 45. 43% 45.00% 42.49% 47.20% 47.20% 20.85% 41.64% 46.25% 36.58% 39.15% 20.85% 20.85% 20.85% 41.64% Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.37 . Additional Information, as required under Schedule III to the Companies Act, 2013, of enterprises consolidated as Subsidiary / Associates / Joint Ventures. Name of the Enterprise Parent Reliance Industries Limited Subsidiaries Indian 1 Adventure Marketing Private Limited 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 AETN18 Media Private Limited Big Tree Entertainment Private Limited Capital18 Fincap Private Limited Colorful Media Private Limited Colosceum Media Private Limited Digital18 Media Limited e-Eighteen.com Limited Equator Trading Enterprises Private Limited Faintain Sports Private Limited Greycells18 Media Limited Independent Media Trust Indiawin Sports Private Limited Infomedia Press Limited Kanhatech Solutions Limited Model Economic Township Limited Moneycontrol Dot Com India Limited Network 18 Media & Investments Limited Panorama Television Private Limited Petroleum Trust RB Holdings Private Limited RB Media Holdings Private Limited RB Mediasoft Private Limited Reed Infomedia India Private Limited Reliance Aerospace Technologies Limited Reliance Ambit Trade Private Limited Reliance Aromatics and Petrochemicals Limited Reliance Brands Limited Reliance Chemicals Limited Reliance Clothing India Private Limited Reliance Commercial Land & Infrastructure Limited Reliance Comtrade Private Limited Reliance Corporate IT Park Limited Reliance Eminent Trading & Commercial Private Limited Net Assets i.e. total assets minus total liabilities Share in profit or loss As % of consolidated net assets Amount (` in crore) As % of consolidated profit or loss Amount (` in crore) 98.58 2,40,176.62 99.23 27,417.02 (0.00) 0.01 0.07 0.01 (0.00) 0.01 (0.02) 0.02 0.08 0.00 (0.00) 1.38 (0.04) (0.01) 0.03 0.04 (0.00) 1.08 0.04 4.21 (0.13) (0.00) (0.00) 0.00 (0.00) 0.19 1.11 (0.01) 1.07 (0.00) 1.71 0.10 1.20 0.91 (3.61) 32.60 163.39 17.32 (3.60) 15.22 (45.20) 54.59 197.30 3.02 (5.29) 3,365.58 (102.50) (27.34) 71.23 88.38 (0.01) 2,624.06 101.65 10,259.96 (304.86) (3.68) (0.03) 0.01 (1.29) 466.41 2,710.28 (30.78) 2604.71 (5.64) 4,172.37 242.85 2,924.15 2,218.14 (0.00) 0.00 0.01 0.07 (0.00) 0.01 (0.01) 0.07 (0.00) (0.00) (0.02) (0.00) (0.00) (0.01) (0.01) (0.01) 0.00 (0.33) (0.09) (0.00) (0.00) (0.00) (0.00) (0.00) 0.00 (0.00) (0.00) (0.10) (0.00) (0.01) (0.00) (0.00) 0.37 (0.03) (0.01) 0.65 3.17 19.04 (0.01) 2.30 (3.04) 20.27 (0.17) (0.42) (6.17) (0.02) (0.21) (3.71) (1.59) (1.64) 0.10 (90.96) (24.73) (0.02) (0.01) (0.01) (0.01) (0.00) 0.01 (0.32) (0.06) (28.26) (0.19) (3.54) (0.68) (0.01) 101.65 (9.50) 369 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Name of the Enterprise Net Assets i.e. total assets minus total liabilities Share in profit or loss 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 Reliance Energy and Project Development Limited Reliance Energy Generation and Distribution Limited Reliance Gas Pipelines Limited Reliance Global Commercial Limited Reliance Grand Optical Private Limited Reliance Industrial Investments and Holdings Limited Reliance Innovative Building Solutions Private Limited Reliance Jio AsiaInfo Innovation Centre Limited Reliance Jio Digital Services Private Limited Reliance Jio Infocomm Limited Reliance Jio Infratel Private Limited Reliance Jio Media Private Limited Reliance Jio Messaging Services Private Limited Reliance Lifestyle Holdings Limited Reliance Payment Solutions Limited Reliance Petro Marketing Limited Reliance Petroinvestments Limited Reliance Polyolefins Limited Reliance Progressive Traders Private Limited Reliance Prolific Commercial Private Limited Reliance Prolific Traders Private Limited Reliance Retail Finance Limited Reliance Retail Insurance Broking Limited Reliance Retail Limited Reliance Retail Ventures Limited Reliance Sibur Elastomers Private Limited Reliance Strategic Investments Limited Reliance Supply Solutions Private Limited Reliance Textiles Limited Reliance Trading Limited Reliance Universal Commercial Limited Reliance Universal Enterprises Limited Reliance Universal Traders Private Limited Reliance Vantage Retail Limited Reliance Ventures Limited Reliance World Trade Private Limited RRB Investments Private Limited RRB Mediasoft Private Limited RRK Finhold Private Limited RVT Finhold Private Limited RVT Media Private Limited 370 As % of consolidated net assets 0.39 0.15 0.06 0.00 0.00 0.40 0.01 0.00 0.00 Amount (` in crore) 952.74 372.99 148.47 0.05 0.02 972.14 19.89 0.98 9.86 18.49 45,050.29 0.00 0.00 0.04 (0.01) 0.05 0.01 0.07 1.07 0.78 0.14 0.58 0.04 0.00 2.26 2.46 0.19 0.54 0.00 0.00 0.00 0.00 1.40 0.03 (0.02) 1.11 2.52 (0.01) (0.00) (0.00) (0.00) 0.01 0.96 9.93 95.92 (25.14) 109.70 17.03 181.98 2,602.96 1,905.17 331.22 1,418.92 101.77 11.95 5,494.90 5,996.76 454.22 1,316.31 0.15 0.04 2.09 0.05 3,415.41 64.09 (47.94) 2,702.65 6,132.34 (19.92) (0.03) (6.09) (4.68) 34.53 As % of consolidated profit or loss (0.00) (0.00) (0.00) (0.00) (0.00) 0.01 (0.01) (0.00) (0.00) (0.09) (0.00) (0.00) (0.00) (0.02) (0.01) (0.02) (0.00) 0.02 (0.07) (0.00) (0.03) (0.00) 0.01 1.11 0.00 0.01 0.21 (0.00) (0.00) (0.00) (0.00) (0.00) (0.01) (0.01) 0.42 (0.00) (0.00) (0.00) 0.00 (0.00) (0.00) Amount (` in crore) (0.07) (0.00) (0.05) (0.00) (0.00) 3.42 (1.81) (0.02) (0.02) (23.88) (0.04) (0.17) (1.00) (5.75) (1.79) (5.76) (1.12) 5.16 (18.50) (0.29) (8.81) (0.02) 2.09 306.54 0.01 2.03 58.20 (0.24) (0.01) (0.15) (0.00) (0.64) (1.73) (2.53) 115.44 (0.99) (0.03) (0.01) 0.49 (0.01) (0.05) Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Name of the Enterprise Net Assets i.e. total assets minus total liabilities Share in profit or loss 76 77 78 79 80 81 Setpro18 Distribution Limited Spacebound Web labs private Limited Strategic Manpower Solutions Limited Surela Investment and Trading Private Limited TV18 Broadcast Limited TV18 Home Shopping Network Limited 82 Watermark Infratech Private Limited 83 Web18 Software Services Limited Foreign 1 Affinity Names Inc. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Aurora Algae Inc. Aurora Algae Pty. Limited Aurora Algae RGV LLC. Big Tree Entertainment Singapore Pte. Limited Central Park Enterprises DMCC Delta Corp East Africa Limited E-18 Limited Ethane Crystal LLC Ethane Emerald LLC Ethane Opal LLC Ethane Pearl LLC Ethane Sapphire LLC Ethane Topaz LLC Gapoil (Zanzibar) Limited Gapco Kenya Limited Gapco Tanzania Limited Gapco Uganda Limited GenNext Holding Investments LLC Gulf Africa Petroleum Corporation Ibn18(Mauritius) Limited Network 18 Holdings Limited NW18 HSN Holdings Plc Recron (Malaysia) Sdn Bhd Reliance do Brasil Indústria e Comércio de Produtos Têxteis, Químicos, Petroquímicos e Derivados Ltda. Reliance Eagleford Midstream LLC Reliance Eagleford Upstream GP LLC Reliance Eagleford Upstream Holding LP Reliance Eagleford Upstream LLC Reliance Ethane Holding Pte. Limited As % of consolidated net assets (0.00) (0.00) (0.02) (0.00) 1.48 (0.03) (0.00) (0.00) 0.00 0.17 (0.10) - 0.00 (0.00) 0.00 0.03 0.10 0.10 0.07 0.10 0.07 0.07 0.00 0.23 0.25 0.06 - 0.02 0.13 (0.05) 0.22 0.50 0.00 2.38 0.00 2.07 0.62 0.50 Amount (` in crore) (1.63) (0.38) (40.14) (1.19) 3,611.89 (72.58) (3.59) (0.40) 0.00 409.83 (243.18) - 6.63 (0.99) 10.32 83.93 238.25 237.72 160.73 248.19 160.73 160.73 9.69 553.47 598.43 148.63 - 53.72 327.41 (120.43) 529.93 1,217.43 0.08 As % of consolidated profit or loss (0.00) (0.00) (0.04) (0.00) 0.44 (0.31) (0.00) (0.00) (0.00) (0.22) 0.14 - (0.00) (0.00) (0.00) 0.00 (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) 0.20 0.24 0.11 - (0.03) 0.03 (0.01) 0.01 (0.20) 0.00 Amount (` in crore) (0.03) (0.84) (11.15) (0.25) 122.89 (84.30) (0.01) (0.03) (0.99) (60.27) 39.85 - (0.00) (0.20) (0.20) 0.10 (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.24) 54.56 66.14 29.32 - (7.67) 8.17 (2.93) 3.14 (54.85) 0.02 5,798.09 19.10 5,277.18 0.22 5,053.58 1,510.59 1,206.84 (0.00) (2.80) (0.00) (0.00) (0.00) (773.42) (0.13) (0.04) 371 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Name of the Enterprise 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Reliance Exploration & Production DMCC Reliance Global Business B.V. Reliance Global Energy Services (Singapore) Pte. Limited Reliance Global Energy Services Limited Reliance Holding USA, Inc. Reliance Holding Acquisition Corp. Reliance Industries(Middle East) DMCC Reliance Jio Global Resources LLC Reliance Jio Infocomm Pte. Limited Reliance Jio Infocomm UK Limited Reliance Jio Infocomm USA Inc. Reliance Marcellus LLC Reliance Marcellus II LLC Reliance USA Gas Marketing LLC RIL Exploration and Production (Myanmar) Company Limited RIL USA, Inc. RIL(Australia) Pty Limited RP Chemicals (Malaysia) Sdn. Bhd. Television Eighteen Mauritius Limited Television Eighteen Media and Investments Limited 51 Wave Land Developers Limited 52 Web18 Holdings Limited Net Assets i.e. total assets minus total liabilities Share in profit or loss As % of consolidated net assets 0.26 0.18 0.02 0.00 Amount (` in crore) 625.23 447.92 57.11 8.88 As % of consolidated profit or loss (0.08) (0.01) 0.14 0.01 Amount (` in crore) (21.24) (2.11) 37.43 1.43 (1.70) (4,147.46) (17.35) (4,795.18) - 0.01 0.01 0.24 0.00 0.08 1.66 0.17 0.00 0.00 0.11 (0.00) - 0.01 0.12 0.01 0.09 - 21.63 31.82 580.64 7.16 198.73 4,047.43 412.94 0.01 0.53 262.24 (0.20) - 25.22 288.48 18.13 229.56 - (0.01) 0.01 (0.05) (0.00) (0.02) (13.60) (4.66) - (0.00) 0.27 (0.00) - 0.00 (0.02) 0.00 (0.00) - (1.52) 2.05 (12.90) (0.29) (6.09) (3,757.14) (1,286.71) - (0.00) 75.15 (0.15) - 0.29 (6.30) 1.01 (0.43) Minority Interests in all subsidiaries (1.34) (3,254.06) (0.31) (85.00) Associates (Investments as per the equity method) Indian 1 24 X 7 Learning Private Limited 2 3 4 5 6 7 8 9 10 11 12 13 Aeon Learning Private Limited Eenadu Television Private Limited Extramarks Education Private Limited Gaurav Overseas Private Limited GenNext Ventures Investment Advisers LLP Gujarat Chemical Port Terminal Company Limited Indian Vaccines Corporation Limited Reliance Commercial Dealers Limited Reliance Commercial Trading Private Limited Reliance Industrial Infrastructure Limited Reliance LNG Limited Vayana Private Limited 372 - - 0.20 0.05 0.00 0.00 0.07 0.00 0.00 - 0.07 0.00 0.01 - - 475.39 125.00 0.19 0.22 158.44 0.92 11.43 - 163.58 0.02 24.48 - - 0.02 - (0.00) 0.00 0.19 - 0.00 - 0.03 (0.00) (0.00) - - 4.20 - (0.01) 0.04 52.65 - 0.11 - 6.98 (0.00) (1.58) Notes on Consolidated Financial Statements for the year ended 31st March, 2016Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.Name of the Enterprise Foreign 1 Algenol LLC 2 3 4 Book My Show Limited Matrix Genetics LLC Reliance Europe Limited Joint Ventures(as per proportionate consolidation/Investment as per the equity method) Indian 1 Brooks Brothers India Private Limited 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 D. E. Shaw India Securities Private Limited Diesel Fashion India Reliance Private Limited Football Sports Development Limited IBN Lokmat News Private Limited Iconix Lifestyle India Private Limited IMG Reliance Limited India Gas Solutions Private Limited Indiacast Media Distribution Private Limited Indiacast Distribution Private Limited Marks and Spencer Reliance India Private Limited Prism Tv Private Limited Reliance Paul & Shark Fashions Private Limited Reliance-GrandVision India Supply Private Limited Reliance-Vision Express Private Limited Ryohin - Keikaku Reliance India Private Limited Supreme Tradelinks Private Limited Ubona Technologies Private Limited Viacom18 Media Private Limited Zegna South Asia Private Limited Foreign 1 Indiacast UK Limited 2 3 4 5 Indiacast US Limited Roptonal Limited Viacom18 Media (UK) Limited Viacom18 US Inc. Net Assets i.e. total assets minus total liabilities Share in profit or loss As % of consolidated net assets Amount (` in crore) As % of consolidated profit or loss Amount (` in crore) 0.12 0.00 0.00 0.01 283.79 0.32 11.42 32.77 0.01 0.01 0.00 0.03 0.00 0.00 0.05 0.00 0.00 0.00 0.06 0.02 0.00 0.00 0.01 - (0.00) 0.00 0.22 0.00 0.00 0.00 0.07 (0.00) (0.00) 12.74 17.00 11.13 67.32 8.23 6.61 122.54 4.41 7.62 4.58 145.55 44.20 4.90 7.41 17.81 - (5.06) 5.33 540.47 2.00 1.35 0.93 160.20 (2.03) (3.91) (0.29) 0.00 (0.01) 0.00 (0.01) (0.00) (0.01) (0.13) 0.00 0.01 0.02 0.00 (0.00) 0.00 (0.10) (0.05) (0.00) (0.00) (0.02) - 0.01 0.00 0.35 (0.01) 0.00 0.00 0.00 (0.00) (0.00) (79.25) 0.12 (2.08) 0.90 (2.95) (0.71) (2.98) (34.57) 0.62 3.50 4.36 0.77 (0.05) 0.90 (28.04) (15.04) (1.03) (0.79) (4.56) - 1.71 0.73 96.72 (3.20) 0.34 0.19 0.91 (0.00) (0.07) 373 Notes on Consolidated Financial Statements for the year ended 31st March, 2016ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254ANNEXURE “A” Salient features of Financial Statements of Subsidiary / Associates / Joint Ventures As per Companies Act , 2013 PART “A” : SUBSIDIARIES Sr. No. Name of Subsidiary Company Reporting Currency Share Capital Reserves & Surplus Total Assets Total Liabilities Investments Turnover / Total Income Profit Before Taxation ` in crore Foreign Currencies in Million Profit After Taxation Proposed Dividend % of Shareholding ** 1 2 3 4 5 6 7 8 9 Affinity Names Inc.# Aurora Algae Inc.#* Aurora Algae Pty Limited# Aurora Algae RGV LLC.# Central Park Enterprises DMCC# Delta Corp East Africa Limited Ethane Crystal LLC Ethane Emerald LLC Ethane Opal LLC 10 Ethane Pearl LLC 11 Ethane Sapphire LLC 12 Ethane Topaz LLC 13 Gapoil (Zanzibar) Limited# 14 Gapco Kenya Limited# 15 Gapco Tanzania Limited# 16 Gapco Uganda Limited# 17 GenNext Holding Investments LLC# 18 Gulf Africa Petroleum Corporation# 1.65 INR 0.25 USD 483.92 INR 73.15 USD 29.92 INR 6.18 AUD - INR - USD 0.66 INR 0.10 USD 4.95 INR 75.73 KSH 238.25 INR 35.96 USD 237.72 INR 35.88 USD 160.73 INR 24.26 USD 248.26 INR 37.47 USD 160.73 INR 24.26 USD 160.73 INR 24.26 USD 1.53 INR 500.00 TZS INR 94.39 KSH 1,459.54 91.82 INR TZS 29,910.00 INR 17.15 USH 8,750.10 - INR USD - 145.54 INR 22.00 USD 0.00 0.00 415.06 62.74 0.92 0.19 - - 0.00 0.00 12.43 190.29 239.71 36.18 239.18 36.10 161.79 24.42 249.12 37.60 161.79 24.42 165.11 24.92 20.47 6,666.61 1,236.21 (1.65) (0.25) (74.09) (11.20) (273.10) (56.40) - - (1.65) (0.25) 5.37 82.19 (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.07) (0.01) (0.00) (0.00) (0.00) (0.00) 8.16 2,656.58 459.08 7,098.80 506.61 0.00 0.00 5.23 0.79 244.10 50.41 - - 0.99 0.15 2.11 32.37 1.46 0.22 1.46 0.22 1.06 0.16 0.93 0.14 1.06 0.16 4.38 0.66 10.78 3,510.03 682.74 19,115.64 10,557.30 304.06 165,019.00 293,971.00 99,042.00 30.26 91,270.22 15,436.56 - - 284.46 43.00 131.48 67,083.56 - - (91.82) (13.88) - - 338.18 51.12 902.49 178.89 Provision for Taxation - - - - - - - - - - - - - - - - - - - - - - - - - - 24.93 385.45 (5.68) (0.99) (0.15) (60.27) (9.11) 39.85 8.23 - - (0.20) (0.03) (0.20) (3.03) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.24) (79.49) 79.49 1,229.12 60.46 - - - - 0.07 39.10 0.01 5.91 - 43.53 8.99 - - - - - - - - - (0.13) - (1.94) - - - - - - - - - - - - - - - - - - - - - - - - - 0.08 - 25.91 - - 10,496.48 - 1,62,308.41 968.56 (0.99) (0.15) (60.27) (9.11) 39.85 8.23 - - (0.20) (0.03) (0.20) (3.03) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.24) (79.49) 54.56 843.67 66.14 315,491.00 19,694.00 (1,851.00) 21,545.00 29.32 203,241.37 21,252.84 6,297.11 14,955.73 - - - - (7.67) (7.67) (1.16) (1.16) - - - - 398.35 12.34 41.66 - - - - 0.51 165.00 - - - - 337.99 51.09 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 100.00 94.82 94.82 94.82 100.00 58.80 100.00 100.00 100.00 100.00 100.00 100.00 76.00 76.00 76.00 76.00 100.00 76.00 As on 31.12.2015:1EUR = 72.1125, 1US$ = 66.1550, 1Au$ = 48.4225, 1RM = 15.4075, 1KSH = 0.6467, 1TZS =0.0307, 1USH = 0.0196, 1BRL = 16.7599, 1GBP = 98.0650 As on 31.03.2016:1EUR = 75.3950, 1US$ =66.2550, 1Au$ = 50.9800, 1KSH = 0.6531, 1SGD = 49.2650, 1GBP = 95.4725 * Financial Information is based on Unaudited Results. ** Based on effective shareholding of Equity and Convertible Preference Shares. # Company having 31st December as a reporting date. 374 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. ` in crore Foreign Currencies in Million Profit After Taxation Proposed Dividend % of Shareholding ** Provision for Taxation - - Sr. No. Name of Subsidiary Company Reporting Currency Share Capital Reserves & Surplus Total Assets Total Liabilities Investments Turnover / Total Income Profit Before Taxation 19 Indiawin Sports Private Limited 20 Kanhatech Solutions Limited 21 Model Economic Township 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Limited Recron (Malaysia) Sdn Bhd# Reliance Aerospace Technologies Limited Reliance Ambit Trade Private Limited Reliance Aromatics and Petrochemicals Limited Reliance Brands Limited Reliance Chemicals Limited Private Reliance Clothing India Private Limited Reliance Commercial Land & Infrastructure Limited Comtrade Reliance Limited Reliance Corporate IT Park Limited Reliance do Brasil Indústria e Comércio de Produtos Têxteis, Químicos, Petroquímicos eDerivados Ltda.# Reliance Eagleford Midstream LLC# Reliance Eagleford Upstream GP LLC# Reliance Eagleford Upstream Holding LP# Reliance Eagleford Upstream LLC# Reliance Eminent Trading & Commercial Private Limited Reliance Energy and Project Development Limited Reliance Energy Generation and Distribution Limited INR INR INR INR RM INR INR INR INR INR INR INR INR INR BRL INR USD INR USD INR USD INR USD INR INR INR 2.65 75.00 97.00 (105.15) (3.77) 169.92 74.90 272.42 3.67 13.50 6.70 192.73 0.03 (0.21) (1.59) (0.21) (1.59) (8.62) 6,197.05 6,108.67 0.01 116.89 (1.67) (0.03) (1.64) 174.40 113.19 1,043.03 676.96 3,868.18 2,510.58 2,650.75 1,720.43 0.51 0.33 5,096.75 3,307.97 (116.51) (75.62) (61.66) (40.02) (54.85) (35.60) 0.05 (1.34) 0.32 1.61 1.93 464.48 525.80 59.39 - - 0.00 (0.32) 0.79 0.01 0.00 0.01 4.52 2,705.76 2,780.07 69.79 2,780.06 0.02 (0.06) 89.86 7.57 (120.64) 2,597.14 525.43 2,604.91 556.21 0.20 253.30 2,604.91 225.08 0.02 (40.78) (0.19) (12.52) - 0.05 (5.69) 29.77 35.41 - 19.73 (3.54) 51.26 4,121.11 5,109.45 937.08 4,004.88 0.10 (0.68) 1.48 241.37 243.06 0.21 - 0.00 (0.01) - - - INR 2,974.99 (50.84) 9,382.85 6,458.70 1.14 5,120.10 129.23 27.58 101.65 0.08 0.02 (0.00) 0.02 0.05 0.01 (0.00) 0.01 2.48 (2.40) 0.13 0.05 1.48 (1.43) 0.08 0.02 309.61 46.80 0.24 0.04 1,510.65 228.35 1,511.05 228.41 5,488.48 829.64 (0.02) (0.00) 3,542.93 535.55 (0.46) (0.07) 5,835.27 882.06 0.22 0.03 37.18 5.62 - - 23,026.17 17,972.59 3,480.64 2,716.74 19,006.79 17,496.20 2,644.73 2,873.07 - - - - 0.13 0.02 - - 1,510.52 228.33 5,456.53 824.81 - - 2,682.78 405.53 685.30 103.59 5,277.18 797.70 (0.00) (0.00) (773.42) (116.91) (0.13) (0.02) 14.67 2,203.47 2,442.02 223.88 - 1.14 (9.50) 1.01 951.73 1,256.23 303.49 1,255.99 0.02 (0.07) 0.00 (0.07) 1.25 371.74 6,955.87 6,582.88 3,636.26 0.02 (0.00) - (0.00) - - (0.32) (0.06) (28.26) (0.19) (3.54) (0.68) (0.01) - - - - - - - - - 5,277.18 797.70 (0.00) (0.00) (773.42) (116.91) (0.13) (0.02) (9.50) - - - - - - - - - - - - - - - - - - - - - - - - - - - 100.00 90.67 100.00 100.00 100.00 100.00 100.00 84.99 100.00 94.40 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 As on 31.12.2015:1EUR = 72.1125, 1US$ = 66.1550, 1Au$ = 48.4225, 1RM = 15.4075, 1KSH = 0.6467, 1TZS =0.0307, 1USH = 0.0196, 1BRL = 16.7599, 1GBP = 98.0650 As on 31.03.2016:1EUR = 75.3950, 1US$ =66.2550, 1Au$ = 50.9800, 1KSH = 0.6531, 1SGD = 49.2650, 1GBP = 95.4725 * Financial Information is based on Unaudited Results. ** Based on effective shareholding of Equity and Convertible Preference Shares. # Company having 31st December as a reporting date. 375 ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 ANNEXURE “A” Contd. Name of Subsidiary Company Reporting Currency Share Capital Reserves & Surplus Total Assets Total Liabilities Investments Sr. No. 40 41 42 43 44 45 46 47 48 Reliance Ethane Holding Pte Limited. Reliance Exploration & Production DMCC# Reliance Gas Pipelines Limited Reliance Global Business BV Reliance Global Commercial Limited Reliance Global Energy Services (Singapore) Pte Limited. Reliance Global Energy Services Limited Reliance-Grand Optical Private Limited Reliance Holding Acquisition Corp # 49 Reliance Holding USA, Inc# 50 51 52 53 54 55 56 57 58 59 Reliance Industrial Investments and Holdings Limited Reliance Industries(Middle East) DMCC# Reliance Innovative Building Solutions Private Limited Reliance Jio AsiaInfo Innovation Centre Limited Reliance Jio Digital Services  Private Limited Reliance Jio Global resources LLC# Reliance Jio Infocomm Limited Reliance Jio Infocomm Pte Limited# Reliance Jio Infocomm UK Limited# Reliance Jio Infocomm USA Inc.# INR USD INR USD INR INR EUR INR INR USD INR GBP INR INR USD INR USD 1,206.90 182.16 2,958.12 447.15 150.00 447.92 59.41 0.05 7.82 1.18 4.77 0.50 0.05 - - 0.33 0.05 (0.06) (0.01) (2,332.89) (352.64) (1.53) 0.00 0.00 0.00 49.29 7.44 4.11 0.43 (0.03) 1,206.88 182.16 664.33 100.42 1,328.57 487.88 64.71 0.04 0.01 39.10 5.91 1,180.10 39.96 5.30 4.48 4.43 1,359.88 205.25 16.04 1.68 1,302.77 196.63 7.16 0.75 0.02 0.00 1,206.41 182.09 525.93 79.50 43.99 4.60 0.61 4.47 - - - - - - - (4,147.79) (626.98) - - - - 39,018.02 43,165.48 6,524.90 5,897.97 - - 6,686.22 1,010.69 Turnover / Total Income Profit Before Taxation - - 1.92 0.29 - 1.21 0.16 (0.04) (0.01) (21.24) (3.21) (0.05) (2.11) (0.28) Provision for Taxation - - - - - - - (0.04) (0.01) (21.24) (3.21) (0.05) (2.11) (0.28) - - - - - 37.09 4.92 0.00 (0.00) - (0.00) 7,634.76 1,152.33 23.68 2.48 39.42 5.95 1.72 0.18 1.99 0.30 0.29 0.03 - (0.00) - - - - 1,690.39 (4,795.18) (724.84) 255.52 INR USD INR INR INR INR 147.65 824.49 24,203.22 23,231.08 11,102.48 961.49 3.42 190.33 28.77 (168.70) (25.50) 783.74 118.47 762.11 115.20 675.11 102.05 2,338.25 353.45 (1.52) (0.23) 64.69 (44.80) 24.22 1.00 (0.02) 1.00 4.33 0.02 10.00 (0.14) 104.35 94.49 29.77 INR USD 4.50 INR 45,125.00 INR USD INR GBP INR USD 602.01 91.00 7.85 0.80 215.00 32.50 2.05 0.31 1.06 0.16 (74.71) 1,35,726.63 90,676.34 32.88 4.97 (21.37) (3.23) (0.69) (0.07) (16.27) (2.46) 589.77 89.15 10.30 1.05 200.85 30.36 9.13 1.38 3.14 0.32 2.12 0.32 - 1.76 (1.81) 1.00 3.85 - - 833.34 - - - - 99.23 15.00 - - 35.53 5.37 0.04 8.40 1.27 - - - - (0.02) (0.02) 2.05 0.31 (23.88) (12.90) (1.95) (0.29) (0.03) (6.09) (0.92) ` in crore Foreign Currencies in Million Profit After Taxation Proposed Dividend % of Shareholding ** 100.00 100.00 100.00 100.00 100.00 100.00 100.00 94.40 100.00 100.00 100.00 100.00 100.00 100.00 100.00 99.44 99.44 99.44 99.44 99.44 - - - - - - - - - - - - - - - - - - - - - - - - - 37.43 5.65 1.43 0.15 (0.00) - - (4,795.18) (724.84) 3.42 (1.52) (0.23) (1.81) (0.02) (0.02) 2.05 0.31 (23.88) (12.90) (1.95) (0.29) (0.03) (6.09) (0.92) - - - - - - - - - - - - - - - - - - - - As on 31.12.2015:1EUR = 72.1125, 1US$ = 66.1550, 1Au$ = 48.4225, 1RM = 15.4075, 1KSH = 0.6467, 1TZS =0.0307, 1USH = 0.0196, 1BRL = 16.7599, 1GBP = 98.0650 As on 31.03.2016:1EUR = 75.3950, 1US$ =66.2550, 1Au$ = 50.9800, 1KSH = 0.6531, 1SGD = 49.2650, 1GBP = 95.4725 * Financial Information is based on Unaudited Results. ** Based on effective shareholding of Equity and Convertible Preference Shares. # Company having 31st December as a reporting date. 376 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Name of Subsidiary Company Reporting Currency Share Capital Reserves & Surplus Total Assets Total Liabilities Investments ` in crore Foreign Currencies in Million Turnover / Total Income Profit Before Taxation Provision for Taxation Profit After Taxation Proposed Dividend % of Shareholding ** Sr. No. 60 61 62 63 64 Reliance Jio Infratel Private Limited Reliance Jio Media Private Limited Reliance Jio Messaging Services Private Limited Reliance Lifestyle Holdings Limited Reliance Marcellus II LLC# 65 Reliance Marcellus LLC# 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 Reliance Payment Solutions Limited Reliance Petro Marketing Limited Reliance Petroinvestments Limited Reliance Polyolefins Limited Reliance Progressive Traders Private Limited Reliance Prolific Commercial Private Limited Reliance Prolific Traders Private Limited Reliance Retail Finance Limited Reliance Retail Insurance Broking Limited Reliance Retail Limited Reliance Retail Ventures Limited Reliance Sibur Elastomers Private Limited Reliance Strategic Investments Limited Reliance Supply Solutions Private Limited Reliance Textiles Limited Reliance Trading Limited 1.00 (0.04) 59.81 58.85 6.55 203.94 (0.04) 11.01 (1.08) 45.66 35.73 15.75 0.07 (0.17) 97.33 (1.41) 107.79 11.87 36.38 1.35 (1.00) 0.05 (25.19) 101.59 126.73 INR 3,477.17 USD 525.61 9,349.36 INR USD 1,413.25 (3,064.23) (463.19) (5,301.93) (801.44) 2,413.67 364.85 2,000.73 302.43 17,231.39 13,183.96 1,992.89 2,604.70 - - - - - 157.60 (5.75) 115.31 (1,286.71) 17.43 (194.50) 552.20 (3,757.14) (567.93) 83.47 INR 115.00 (5.30) 586.26 476.56 95.47 0.05 (1.79) - - - - - - - - - (0.04) (0.17) (1.00) (5.75) (1,286.71) (194.50) (3,757.14) (567.93) (1.79) 4.05 12.98 334.74 317.71 0.01 2,200.37 (8.05) (2.29) (5.76) 8.88 173.10 195.94 13.96 184.47 0.02 (1.12) - (1.12) 13.26 2,589.70 2,603.01 0.05 2,600.84 62.06 8.08 2.92 5.16 14.05 1,891.12 2,339.10 433.93 0.00 7.07 (18.50) - (18.50) 1.66 329.56 412.91 81.69 12.87 1,406.05 2,819.43 1,400.51 2.02 4.00 99.75 101.78 7.95 12.69 0.01 0.74 - - 101.78 2.86 0.00 (8.81) (0.02) 3.13 - 0.00 1.04 6.75 19.00 0.06 (0.29) 0.00 (0.29) 4,989.54 6,000.00 505.36 (3.24) 9,927.40 5,996.99 4,432.50 0.23 484.81 5,634.05 18,543.56 2.39 489.97 0.01 183.43 - 442.52 11.70 784.06 329.84 85.38 2.76 2.51 0.48 2.03 2.33 1,313.98 4,703.32 3,387.01 441.45 357.75 64.17 5.97 58.20 136.93 (136.78) 0.05 1.05 (0.01) 1.04 0.72 0.05 6.83 0.57 0.01 4.74 - - - 0.46 (0.24) - 46.65 (0.01) (0.15) - - - (0.24) (0.01) (0.15) (8.81) (0.02) 2.09 306.54 0.01 INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR - - - - - - - - - - - - - - - - - - - - - - - - 100.00 100.00 76.56 84.99 100.00 100.00 100.00 94.40 100.00 100.00 100.00 100.00 100.00 100.00 100.00 94.40 94.45 74.90 100.00 100.00 100.00 94.40 As on 31.12.2015:1EUR = 72.1125, 1US$ = 66.1550, 1Au$ = 48.4225, 1RM = 15.4075, 1KSH = 0.6467, 1TZS =0.0307, 1USH = 0.0196, 1BRL = 16.7599, 1GBP = 98.0650 As on 31.03.2016:1EUR = 75.3950, 1US$ =66.2550, 1Au$ = 50.9800, 1KSH = 0.6531, 1SGD = 49.2650, 1GBP = 95.4725 * Financial Information is based on Unaudited Results. ** Based on effective shareholding of Equity and Convertible Preference Shares. # Company having 31st December as a reporting date. 377 ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254 ANNEXURE “A” Contd. Name of Subsidiary Company Reporting Currency Share Capital Reserves & Surplus Total Assets Total Liabilities Investments ` in crore Foreign Currencies in Million Turnover / Total Income Profit Before Taxation Provision for Taxation Profit After Taxation Proposed Dividend % of Shareholding ** Sr. No. 82 83 84 85 86 87 88 89 Reliance Universal Commercial Limited Reliance Universal Enterprises Limited Reliance Universal Traders Private Limited Reliance USA Gas Marketing LLC# Reliance Vantage Retail Limited Reliance Ventures Limited Reliance World Trade Private Limited RIL Exploration and Production (Myanmar)Company Limited 90 RIL USA, Inc# 91 RIL(Australia) Pty Limited 92 93 94 RP Chemicals (Malaysia) Sdn Bhd # Strategic Manpower Solutions Limited Surela Private Limited Investment & Trading 95 Wave Land Developers Limited INR INR INR INR USD INR INR INR INR USD INR USD INR AUD INR RM INR INR INR KSH 0.05 0.00 4.48 4.43 4.47 0.00 (0.00) 13.26 3,402.15 3,416.63 1.22 3,416.56 0.02 (0.64) 10.12 53.97 146.28 82.19 - - (1.73) - - - 0.02 0.00 0.56 2.69 (0.01) (0.00) (48.50) 2,699.96 0.01 0.00 78.78 2,865.71 - - 126.72 163.06 - - - 1,780.46 - - 0.03 201.48 - - (2.53) 143.81 - - - 28.37 (0.00) (0.64) (1.73) - - (2.53) 115.44 12.28 6,120.06 6,133.62 1.28 6,133.50 0.00 (0.99) (0.00) (0.99) 0.53 0.08 19.85 3.00 33.80 6.63 - - (0.00) (0.00) 242.39 36.64 (34.00) (6.67) - - 0.53 0.08 1,249.87 188.93 0.15 0.03 - - 0.00 0.00 987.63 149.29 0.35 0.07 - - 0.05 (40.19) 90.51 130.65 - - - - - - - - - 0.00 0.00 10,221.81 1,545.13 - - - - (0.00) (0.00) 116.10 17.55 (0.15) (0.03) - - 929.24 (11.15) - - 40.95 6.19 - - - - (0.00) (0.00) 75.15 11.36 (0.15) (0.03) - - (11.15) 0.05 (1.24) 20.88 22.07 2.59 0.00 (0.25) (0.00) (0.25) 5.36 82.11 12.77 195.50 18.24 279.31 0.11 1.70 6.06 92.86 1.13 17.31 1.11 17.07 0.10 1.57 1.01 15.50 - - - - - - - - - - - - - - - - - - - - 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 As on 31.12.2015:1EUR = 72.1125, 1US$ = 66.1550, 1Au$ = 48.4225, 1RM = 15.4075, 1KSH = 0.6467, 1TZS =0.0307, 1USH = 0.0196, 1BRL = 16.7599, 1GBP = 98.0650 As on 31.03.2016:1EUR = 75.3950, 1US$ =66.2550, 1Au$ = 50.9800, 1KSH = 0.6531, 1SGD = 49.2650, 1GBP = 95.4725 * Financial Information is based on Unaudited Results. ** Based on effective shareholding of Equity and Convertible Preference Shares. # Company having 31st December as a reporting date. The above statement also indicates performance and financial position of each of the subsidiaries. Names of Subsidiaries which are yet to commence operations - Sr. No. 1 2 3 Name of the Companies Aurora Algae RGV LLC Reliance Holding Acquisition Corp GenNext Holding Investments LLC# # formerly known as Reliance Marcellus Holdings LLC 378 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. Names of Subsidiaries which have been liquidated or sold during the year - Sr. No. 1 2 3 4 5 6 7 8 9 Name of the Companies Bhagyashri Mercantile Private Limited Chitrani Mercantile Private Limited Gopesh Commercials Private Limited Nemita Commercials Private Limited Nisarga Commercials Private Limited Prakruti Commercials Private Limited Resolute Land Consortium Projects Limited Transenergy (Kenya) Limited Vijayant Commercials Private Limited All the above Companies have been amalgamated pursuant to the Scheme of Amalgamation except: 1. Resolute Land Consortium Projects Limited, which has been sold during the year. 2. Transenergy (Kenya) Limited, which has been liquidated during the year. PART “B” : ASSOCIATES AND JOINT VENTURES Statement pursuant to Section 129 (3) of the Companies Act , 2013 related to Associate Companies and Joint Ventures Shares of Associate/Joint Ventures held by the company on the year end Profit/Loss for the year Sr. No. Name of Associates/Joint Ventures Latest audited Balance Sheet Date No. Amount of Investment in Associates/ Joint Venture (` in crore) Extend of Holding % Networth attributable to Shareholding as per latest audited Balance Sheet (` in crore) Considered in Consolidation (` in crore) Not Considered in Consolidation Description of how there is significant influence Reason why the associate/joint venture is not consolidated Associates 1 Gujarat Chemical Port Terminal Company Limited 2 3 4 5 Indian Vaccines Corporation Limited Reliance Europe Limited Reliance Industrial Infrastructure Limited Reliance LNG Limited 31.03.2015 64,29,20,000 31.03.2015 31.12.2015 31.03.2016 31.03.2016 62,63,125 11,08,500 68,60,064 22,500 64.29 0.61 3.93 16.30 0.02 41.80 % 33.33 % 50.00 % 45.43 % 45.00 % 158.44 0.92 32.77 163.58 0.02 52.65 - 0.90 6.98 (0.00) - - - - - Note - A Note - A Note - A Note - A Note - A - - - - - Note: A. There is significant influence due to percentage(%) of Share Capital. The above statement also indicates performance and financial position of each of the associates. 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 Rajesh D. Chaturvedi Partner A. B. Jani Partner A.R. Shah Partner Alok Agarwal Chief Financial Officer Srikanth Venkatachari Joint Chief Financial Officer K. Sethuraman Company Secretary Mumbai Date : April 22, 2016 - 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 Prof. Ashok Misra Prof. Dipak C. Jain Dr. R.A. Mashelkar Adil Zainulbhai Raminder Singh Gujral 379 ConsolidatedGovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396551470254Shareholders’ Referencer AN OVERVIEW The Company has currently around 2.64 million shareholders holding Equity Shares. 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). The Company’s Equity Shares are the most actively traded security on both BSE and NSE. The Company’s Equity Shares are under compulsory trading in demat form only. 97.91% of the Company’s Equity Shares are held in demat form. Karvy Computershare Private Limited (Karvy), having its office at Karvy Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad – 500 032, an ISO 9002 Certified Registrars and Transfer Agents, is the Registrar and Transfer Agent (R&TA) of the Company. INVESTOR SERVICE AND GRIEVANCE HANDLING MECHANISM 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, which discharges investor service functions effectively, efficiently and expeditiously. The Company has appointed M/s. Dayal and Lohia, Chartered Accountants, Mumbai as Internal Auditors to concurrently audit the securities related transactions being handled at Karvy. The Company has prescribed service standards to respond to various investor related activities. These standards are being reviewed periodically by the Company. Particulars Service Standards (No. of working days) The service standards set by the Company for various investor related transactions/activities are as follows: Sl. No. (A) 1 2 3 4 5 6 7 8 9 10 11 12 13 Registration Items Transfers Transmissions Transpositions Deletion of Name Folio Consolidation Change of Name Demat Remat Issue of Duplicate Certificates Replacement of Certificates Certificate Consolidation Certificate Split Change of Address 3 3 3 3 3 3 3 3 15 3 3 3 2 380 Sl. No. 14 15 16 (B) 1 2 3 4 5 6 7 8 Particulars Bank Mandate / Details Nomination by security holders Recording Power(s) of Attorney by security holders Correspondence Non-receipt of Annual Reports Non-receipt of Dividend Warrants Non-receipt of Interest/ Redemption Warrants Non-receipt of Certificates Revalidation of Dividend Warrants Revalidation of Redemption Warrants Multiple Queries IEPF Letters Service Standards (No. of working days) 2 2 2 2 3 3 2 3 3 4 3 1. DEALING IN SECURITIES 1.1 What are the types of accounts required 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: An account opened in the name of the investor and linked to the B. O. Account/Demat account 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 compared to a cheque book of a bank account. The following precautions are to be taken in respect of DIS: Ensure that DIS numbers are pre-printed and DP takes acknowledgment for the DIS booklet issued to the investor. Ensure that the account number [client id] is pre-stamped. If the account is a joint account, all the joint holders have to sign the instruction slips. Instruction cannot be executed if all joint holders have not signed. Avoid using loose slips. Do not leave signed blank DIS with anyone viz., broker/ sub-broker, DPs or any other person/entity. Keep the DIS book under lock and key when not in use. If only one entry is made in the DIS book, strike out the remaining space to prevent misuse. Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.  Personally fill in target account-id and all details in the DIS. If the DIS booklet is lost / stolen / not traceable, the same must be intimated to the DP, immediately, in writing. On receipt of such intimation, the DP will cancel the unused DIS of the said booklet. 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 is SARAL Account Opening Form? Securities and Exchange Board of India (SEBI) vide its circular dated March 4, 2015, has introduced SARAL account opening form for resident individuals trading in cash segment. Individual investors trading in cash segment can open a trading account and demat account by filling up a simplified Account Opening Form (‘AOF’) termed as ‘SARAL AOF’. This form is separately available with the intermediaries and can also be downloaded from the Stock Exchanges’ and Depositories’ website. The investors who open such account through SARAL AOF will also have the option to obtain other facilities, whenever they require, on furnishing of additional information as per prescribed regulations/circulars. 1.5 What precautions an online investor must take? Investor trading online must take the following precautions: Default password provided by the broker must be changed before placing the order. The password should not be shared with others and password must be changed at periodic intervals. Obtain proper understanding of the manner in which the online trading software has to be operated. Get adequately trained before using the software. The online trading system has facility for order and trade confirmation after placing the orders. 1.6 What are the other safety measures an online client must observe? Avoid placing order from shared PCs / through cyber cafés. Log out after having finished trading to avoid misuse. Do not click “remember me” option while signing in from shared PCs / through cyber cafes. Do not leave the terminal unattended while “signed-in” on the trading system. Protect your personal computer against viruses by placing a firewall and an anti-virus solution. Do not open e-mails from people you do not know. 1.7 What are the do’s and don’ts while dealing in securities market? DO’S Transact only through Stock Exchanges. Deal only through SEBI registered intermediaries. Complete all the required formalities of opening an account properly (Client registration, Client agreement forms etc.). Ask for and sign “Know Your Client Agreement”. Read and properly understand the risks associated with investing in securities / derivatives before undertaking transactions. Assess the risk - return profile of the investment as well as the liquidity and safety aspects before making your investment decision. Ask all relevant questions and clear your doubts with your broker before transacting. Invest based on sound reasoning after taking into account all publicly available information and on fundamentals. Beware of the false promises and to note that there are no guaranteed returns on investments in the Stock Market. Give clear and unambiguous instructions to your broker / sub-broker / DP. Be vigilant in your transactions. Insist on a contract note for your transaction. Verify all details in the contract note, immediately on receipt. Always settle dues through the normal banking channels with the market intermediaries. Crosscheck details of your trade with details as available on the exchange website. Scrutinize minutely both the transaction and the holding statements that you receive from your DP. Keep copies of all your investment documentation. Handle DIS Book issued by DP’s carefully. Insist that the DIS numbers are pre-printed and your account number (client id) be pre-stamped. In case you are not transacting frequently make use of the freezing facilities provided for your demat account. Pay the margins required to be paid in the time prescribed. Deliver the shares in case of sale or pay the money in case of purchase within the time prescribed. Participate and vote personally or through proxy. Be aware of your rights and responsibilities. In case of complaints, approach the right authorities for redressal in a timely manner. in general meetings either 381 316336GovernanceCorporate Overview380396Shareholder Information256379Financial StatementsManagement Review148255551470254Shareholders’ Referencer Shareholders’ Referencer (Continued) DON’TS Don’t undertake off-market transactions in securities. Don’t deal with unregistered intermediaries. Don’t fall prey to promises of unrealistic returns. Don’t invest on the basis of hearsay and rumours; verify before investment. Don’t forget to take note of risks involved in the investment. Don’t be misled by rumours circulating in the market. Don’t blindly follow media reports on corporate developments, as some of these could be misleading. Don’t follow the herd or play on momentum - it could turn against you. Don’t be misled by so called hot tips. Don’t try to time the market. Don’t hesitate to approach the proper authorities for redressal of your doubts / grievances. Don’t leave signed blank DISs of your demat account lying around carelessly or with anyone. Do not sign blank DIS and keep them with DP or broker to save time. Remember your carelessness can be your peril. Do not keep any signed blank transfer deeds. 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 be ensured that the Contract Note/Confirmation Memo contains order number, order time, trade number, trade time , security descriptions, bought and sold quantity, price, brokerage, service tax and securities transaction tax. In case the investors have any doubt about the details contained in the contract note, they can avail the facility provided by BSE / NSE to verify the trades on BSE / NSE websites. It is recommended that this facility be availed in respect of a few trades on random basis, even if there is no doubt as to the authenticity of the trade/transaction. 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. 382 2. DIVIDEND 2.1 What are the modes by which the dividend is paid? Dividend is paid under four modes, viz.: (a) National Automated Clearing House (NACH) (b) National Electronic Fund Transfer (NEFT) (c) Direct Credit to shareholders’ account by bank (d) Physical dispatch of Dividend Warrant 2.2 What is National Automated Clearing House institutions, Corporates (NACH) The National Payments Corporation of India (NPCI) has implemented an electronic payment service termed as “National Automated Clearing House (NACH)” for banks, financial and Government Departments. It is a centralised system, launched with an aim to consolidate multiple ECS systems running across the country, and has both Debit and Credit variants. NACH aims at facilitating interbank, high volume, debit/credit transactions, which are bulk and repetitive in nature. NACH system covers over 700 Core Banking enabled Banks spread across the geography of the country irrespective of the location of the bank branches. 2.3 What is NACH Credit for payment of dividend and how does it operate? NACH Credit is an electronic payment service used for affording credits to a large number of beneficiaries in their bank accounts for the payment of dividend by raising a single debit to the bank account of the user entity. NACH operates on the principle of single debit to the sponsor bank’s account and multiple credits to different destination banks’ accounts. 2.4 What are the benefits of NACH (payment through electronic facilities)? Some of the major benefits are: a. Investor need not make frequent visits to his bank for depositing the physical paper instruments. Prompt credit is given to the bank account of the investor through electronic clearing. Fraudulent encashment of warrants is avoided. Exposure to delays / loss in postal service are avoided. Issue of duplicate warrants is avoided as there can be no loss in transit of warrants. b. c. d. e. 2.5 How to avail of NACH Facility? Investors holding shares in physical form may send their NACH Mandate Form, duly filled in, to the Company’s R&TA. The Form may be downloaded from the “Downloads” section under the “Investor Relations” dropdown on the Company’s website, www.ril.com. However, if shares are held in dematerialised form, NACH Mandate has to be filed with the concerned DP directly, in Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. the format prescribed by the DP. execute an indemnity before issuing the duplicate warrant. Investors must note that NACH 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 their new bank account number allotted by the banks post implementation of CBS, along with a cancelled cheque pertaining to the concerned account: (a) to the R&TA of the Company in case the shareholders hold shares in physical form; and (b) to the concerned DP in case the shareholders hold shares in demat form. 2.6 Can investors opt out of NACH 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. 2.7 What is payment of dividend through NEFT Facility and how does it operate? NEFT is a nation-wide payment system facilitating electronic transfer of funds from one account to another. Dividend payment through NEFT denotes payment of dividend electronically through RBI clearing to selected bank branches which have implemented CBS. This extends to all over the country, and is not necessarily restricted to the designated centres where payment can be handled through Electronic Clearing System. To facilitate payment through NEFT, the shareholder is required to ensure that the bank branch where his/her account is operated, is under CBS. The shareholders shall also ensure that particulars of the updated bank account are registered with the Company’s R&TA in case shares are held in physical form and with the concerned DP in case shares are held in demat form. 2.8 What is payment of dividend through Direct Credit and how does it operate? The Company appoints a bank as its Dividend banker for distribution of dividend. The said banker carries 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. 2.9 What should a shareholder do in case of non- receipt of dividend? Shareholders should 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 remains unpaid in the records of the Company, a duplicate warrant will be issued. The R&TA would request the concerned shareholder to 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. 2.10 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 for three months from the date of issue. 2.11 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. 2.12 What are the Statutory provisions governing unpaid dividend? Dividend lying in the Unpaid Dividend Account which remains unpaid or unclaimed for a period of seven years is required to be transferred to the Investor Education and Protection Fund (IEPF). As per Section 124 of the Companies Act, 2013(yet to come into force), all shares in respect of which dividend has not been paid or claimed for seven consecutive years or more shall be transferred by the Company in the name of IEPF. Further, the shareholders whose amounts and shares would be transferred to IEPF as above, would 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. 2.13 Where can the status of unclaimed dividend not transferred to IEPF account be verified? The Company has uploaded the details of unpaid and unclaimed dividend amounts lying with the Company as on July 15, 2015 on the website of the Company (www.ril.com), which can be accessed by the shareholders. 2.14 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: 383 316336GovernanceCorporate Overview380396Shareholder Information256379Financial StatementsManagement Review148255551470254Shareholders’ Referencer Shareholders’ Referencer (Continued) Chart 1: Status of unclaimed and unpaid dividend for different years: Transfer of unpaid dividend Claims for unpaid dividend Unclaimed Dividend up to1994-95 Transferred to General Revenue account of the Central Government Can be claimed from ROC, Maharashtra* Unclaimed Dividend for 1995- 96 to 2007-08 Transferred to Central Govern- ment’s Investor Education and Protection Fund (IEPF) Cannot be claimed from IEPF Unclaimed Dividend for 2008- 09 and thereafter Will be transferred to IEPF on due date(s) Can be claimed from the Company’s R&TA within the time limits provided in Chart 2 given below * Shareholders who have not encashed their dividend warrant(s) relating to one or more of the financial year(s) (i)up to 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 91 22 2757 6802 and (ii) from 1995-96 to 2006-07, from IEPF after complying with the prescribed procedure which is yet to come into force under the Act. Financial year ended Chart 2: Information in respect of unclaimed and unpaid dividends declared for 2008-09 and thereafter Date of declaration of dividend October 07, 2009 June 18, 2010 June 03, 2011 June 07, 2012 June 06, 2013 June 18, 2014 June 12, 2015 March 10, 2016 Last date for claiming unpaid dividend October 06, 2016 June 17, 2017 June 02, 2018 June 06, 2019 June 05, 2020 June 17, 2021 June 11, 2022 March 09, 2023 March 31, 2009 March 31, 2010 March 31, 2011 March 31, 2012 March 31, 2013 March 31, 2014 March 31, 2015 March 31, 2016 2.15 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: No tax is payable by shareholders on dividend. However, the Company is required to pay dividend tax @ 17.647% (grossed up) and surcharge @12% together with education cess @ 2% and secondary higher education cess @ 1%, i.e., 20.36%; As per the Finance Act, 2016, income by way of dividend in excess of `10 lakh shall be chargeable to tax in the case of an individual, Hindu undivided family (HUF) or a firm who is resident in India, @ 10%. The taxation of dividend income in excess of `10 lakh is on gross basis and made effective from the assessment year 2017-18. 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 @ 12% is payable for income exceeding `1 crore in the case of individuals also. 384 No Long Term Capital Gains (LTCG) tax is payable on sale of shares through a recognised stock exchange, provided Securities Transaction Tax (STT) has been paid and shares are sold after 12 months from the date of purchase. In any other case, lower of the following is payable as long term capital gain tax: a) b) 20% of the capital gain computed after substituting ‘cost of acquisition’ with ‘indexed cost of acquisition’ together with education cess @ 2% and secondary higher education cess @ 1% in the case of ‘individuals’. Surcharge @ 12 %is payable for income exceeding `1 crore in the case of individuals also. 10% of the capital gain computed without 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 @ 12 % is payable for income exceeding `1 crore in the case of individuals also. 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 & Protection Fund. COMPANY’S RECOMMENDATIONS TO THE SHAREHOLDERS / INVESTORS Register NACH Mandate and furnish correct bank account particulars to Company’s R&TA/Depository Participant(DP) Investors holding shares in physical form should provide the NACH Mandate to the Company’s R&TA and investors holding 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 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. numbers allotted after implementation of Core Banking Solution (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 compulsorily in demat form only. By virtue of such notification, the shares of the Company are also subject to compulsory trading in demat form on the Stock Exchanges. 3.3 What are the benefits of Dematerialisation? Elimination of bad deliveries Elimination of all risks associated with physical certificates No stamp duty on transfers Immediate transfer / trading of securities Faster settlement cycle Faster disbursement of non-cash corporate benefits like rights, bonus, etc. SMS alert facility Lower brokerage is charged by many brokers for trading in dematerialised securities Periodic status reports and information available on internet Ease related to change of address of investor Elimination of problems related to transmission of demat shares Ease in portfolio monitoring Ease in pledging the shares 3.4 What is the procedure for dematerialisation of shares? Shareholders should submit the duly filled in Demat Request Form (DRF) along with physical certificate(s) to the concerned DP. DP intimates the relevant Depository of such requests through the system. DP submits the DRF and the Certificate(s) to the Company’s R&TA. The Company’s R&TA confirms the dematerialisation request from Depository. The Company’s R&TA, after dematerialising the certificate(s), updates accounts and informs concerned depository regarding completion of dematerialisation. Depository updates its accounts and informs the DP. DP updates the demat account of the shareholder. 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 dematerialize 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. 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. 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? Shareholders should submit the duly filled Rematerialisation Request Form concerned DP. (RRF) to in the DP intimates the relevant Depository of such requests. DP submits RRF to the Company’s R&TA. Depository confirms rematerialisation request to the Company’s R&TA. The Company’s R&TA updates accounts and prints certificate(s) and informs the Depository. Depository updates the Beneficiary Account of the shareholder by deleting the shares so rematerialised. 385 316336GovernanceCorporate Overview380396Shareholder Information256379Financial StatementsManagement Review148255551470254Shareholders’ Referencer Shareholders’ Referencer (Continued) 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 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. 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/ 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 386 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 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? As per the provisions of Section 72 of the Companies Act, 2013 the nominee is entitled to all the rights in the securities of the deceased shareholder in relation to such securities 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. 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)? Transferee(s) need to send share certificate(s) along with share transfer deed(s) in the prescribed Form SH-4 as per the Companies Act, 2013, duly filled in, executed and share Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. transfer stamps affixed and also duly attested PAN of the transferor(s)to the Company’s R&TA. It takes about three 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 fifteen days under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) 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 (purchaser) 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? The procedure for registration of shares gifted (held in physical form) is the same as the procedure for a normal transfer. The stamp duty payable for registration of gifted shares would be @ 25 paise for every `100 or part thereof, of the 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 the event of death of the sole shareholder without nomination? 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): No objection certificate [NOC] from all legal heir(s) who do not object to such transmission (or) copy of Family Settlement Deed executed by all the legal heirs of the deceased holder and duly notarized or attested by a Gazetted Officer. Indemnity made on appropriate non judicial stamp paper – indemnifying the R&TA and the 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): 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 the event of death of the sole beneficial owner without nomination? 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: Notarized copy of the death certificate Transmission Request Form(TRF), Affidavit – to the effect of the claim of legal ownership to the shares, Deed of indemnity – Indemnifying the depository and Depository Participants (DP), NOC from legal heir(s), if applicable, or family settlement 387 316336GovernanceCorporate Overview380396Shareholder Information256379Financial StatementsManagement Review148255551470254Shareholders’ Referencer Shareholders’ Referencer (Continued) deed duly executed by all legal heirs of the deceased beneficial owner. folio should send all such certificates to the Company’s R&TA for consolidation into a single certificate. 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: Surety form Succession certificate Probated will 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 dematerialized form is 7 days and by the Company/R&TA for the securities held in physical form 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 certificate(s) 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, request 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 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 of share certificate(s), quoting their folio number and details of share certificate(s), if available. The R&TA shall immediately mark a ‘stop transfer’ on the folio to prevent any further transfer of shares covered by the lost share certificate(s). It is recommended that the shareholders should lodge 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 certificates issued in various denominations consolidated into a single certificate? Consolidation of share certificates helps in saving cost while dematerialising the share certificates and also provides convenience in holding the shares physically. Shareholders having certificates in various denominations under the same 388 If the shares are not under the same folio but have the same order of names, shareholders should write to the Company’s R&TA in the prescribed form for consolidation of folios. This will help the investors to efficiently monitor their 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 shares in small numbers 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. The salient features of the Scheme in force from July 1, 1998, are as under: This Scheme is available to Indian national residents in respect of any master folio having holdings up to 49 shares; 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); The odd lot shares offered under the Scheme are sold through designated brokers in the BSE / NSE; All costs of implementing the Scheme is 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. It will also save cost while dematerialisation of their shareholding. Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 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. shares were transferred from the suspense account during the year, and the aggregate number of shareholders and the outstanding shares in the suspense account lying at the end of the year, have been set out under “Equity Shares in Suspense Account” in the Corporate Governance Report. Exercise caution There is likelihood of fraudulent transfers in case of folios with no movement or where a shareholder has either expired or is not residing at the address registered with the Company. The Company’s R&TA should be updated on any change of address or contact details. Similarly, information of death of shareholder should also be communicated promptly. Mode of Postage It is recommended to use registered post or speed post or courier facility when investors send important/high value documents, share certificates etc. to the Company / R&TA. 6. UNCLAIMED SHARES 6.1 What are the Regulatory provisions and procedure governing consolidation of unclaimed shares? As per Regulation 39 of the Listing Regulations read with Schedule VI thereto: a) b) Shares issued in dematerialised form pursuant to a public issue or any other issue, which remain unclaimed, shall be credited to a demat suspense account opened by the company for this purpose with one of the depository participants. Shares issued in physical form pursuant to a public issue or any other issue, which remain unclaimed, shall be transferred into one folio in the name of “unclaimed suspense account” and shall be dematerialised in the unclaimed suspense account opened by the company for this purpose with one of the depository participants. 2. 3. Any corporate benefits accruing on such shares, viz., bonus shares, split etc., shall also be credited to such demat suspense account or unclaimed suspense account, as applicable, for a period of seven years and thereafter shall be transferred in accordance with the provisions of applicable laws. The voting rights on such unclaimed shares shall remain frozen till the rightful owner claims the shares. 6.2 What is the status of compliance by the Company with regard to these provisions? In terms of Regulation 34 of the Listing Regulations read with Schedule V thereto, details relating to aggregate number of shareholders and the outstanding shares in the suspense account lying at the beginning of the year, number of shareholders who had approached the Company for transfer of shares from suspense account during the year, number of shareholders to whom the said unclaimed As per Section 124(6) of the Companies Act, 2013 (once the same is notified), all shares in respect of which dividend has not been paid or claimed for seven consecutive years or more shall be transferred by the company in the name of IEPF. However, the shares can be claimed by the claimant after following the prescribed procedure under the Companies Act, 2013. INVESTOR SERVICING AND GRIEVANCE REDRESSAL - EXTERNAL AGENCIES 1. Ministry of Corporate Affairs its Ministry of Corporate Affairs (MCA) has e-Governance initiative, i.e., MCA21, on the MCA portal (www.mca.gov.in). One of the key benefits of this initiative is timely redressal of investor grievances. MCA21 system accepts complaints under the e-Form prescribed, which has to be filed online. launched The status of complaint can be viewed by quoting the Service Request Number (SRN) provided at the time of filing the complaint. Securities and Exchange Board of India (SEBI) SEBI, in its endeavour to protect the interest of investors, has provided a platform wherein the investors can lodge their grievances. This facility is known as SEBI Complaints Redress System (SCORES) and is available on the SEBI website (www. sebi.gov.in) and on SCORE’s website (http://scores.gov.in). 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, have to take necessary steps to resolve the complaint and submit action taken report within thirty days of receipt of complaint and also keep the complainant duly informed of the action taken. SEBI has issued frequently asked questions (FAQs) in respect of SCORES which inter alia 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. These FAQs can be accessed on the link: http://scores. gov.in/Docs/FAQ-SCORES.pdf . 389 316336GovernanceCorporate Overview380396Shareholder Information256379Financial StatementsManagement Review148255551470254Shareholders’ Referencer Shareholders’ Referencer (Continued) 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, e-mails may be addressed to: complaints@cdslindia.com. 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 details of the new address along with Pin Code, to the Company’s R&TA. Shareholders are requested to quote their folio number(s) and furnish proof of new address such as attested copies of Ration Card / Passport / Latest Electricity or Telephone Bill / Lease Agreement, Aadhaar Card, etc. If shares are held in dematerialised form, information about change of address needs to be sent to the DP concerned. Change of name What is the procedure for registering change of name of shareholders? Shareholders holding shares in physical form 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 such as duly attested copies of 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? A 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 registration details to the shareholder concerned. Whenever the Power of Attorney holder proposes to enter into a transaction, the registration number mentioned above should be quoted in the correspondence. Permanent Account Number (PAN) It is 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 strengthen the legal framework for prohibition of insider trading in securities, SEBI notified the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (New Regulations). The New Regulations came into force from May 15, 2015, replacing its over two decade old antecedent. Under the New Regulations, promoters, key managerial personnel and directors of a company are required to file initial disclosure whereas continual disclosure is required to be filed by promoters, employees and directors of the company. In view of the New Regulations, the Company has revised its Code to Regulate, Monitor and Report Trading by Insiders (new Reliance Code). The new Reliance Code inter alia prohibits insiders from trading in securities while in possession of unpublished price sensitive information in relation to the Company and also during the period when the Trading Window is closed. Takeover Regulations SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (Takeover Regulations) cast obligation on the investor (acquirer) to make disclosure w.r.t. acquisition/disposal of shares. The relevant provisions are summarised 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 the target company and Stock Exchanges within 2 working days of the receipt of intimation of allotment / acquisition of shares or voting rights in the target company, as the case may be. 390 Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 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 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 the target company and Stock Exchanges within 2 working days of such change. E-voting The Companies Act, 2013, the Companies (Management and Administration) Rules, 2014 and Clause 44of the Listing Regulations require a listed company to provide e-voting facility to its shareholders in respect of all shareholders’ resolutions to be passed at General Meetings. Register e-mail address 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 form or with their DP, if the holding is in electronic form. Intimate mobile number Shareholders are requested to intimate their mobile number and changes therein, if any, to Karvy, if shares are held in physical form or to their DP if the holding is in electronic form, to receive communications on corporate actions and other information of the Company. SHAREHOLDERS’ GENERAL RIGHTS To receive not less than 21 clear days’ notice of general meetings. To inspect Statutory Registers and documents as permitted under law. To require the Board of Directors to call an Extraordinary General Meeting in accordance with the provisions of the Companies Act, 2013. DUTIES / RESPONSIBILITIES OF INVESTORS To remain abreast of corporate developments, company specific investment decision(s). information and informed take To be aware of relevant statutory provisions and ensure effective compliance therewith. To deal with only SEBI registered intermediaries while dealing in the securities. Not to indulge in fraudulent and unfair trading in securities nor to act upon any unpublished price sensitive information. To participate effectively in the proceedings of shareholders’ meetings. To contribute to the Greener Environment and accordingly register email addresses to enable the Company to send all documents / notices including Annual Reports electronically. To register nominations, which would help the nominees to get the shares transmitted in their favour without any hassles. To participate in the e-voting facility provided by the company or attend the General Meeting of the Company and cast their vote To respond to communications seeking shareholders’ approval through Postal Ballot. To receive notice and forms for Postal Ballots in terms of the provisions of the Companies Act, 2013 and the relevant Rules issued thereunder. To respond to communications of SEBI / Depository / DP / Brokers / Sub-brokers / Other Intermediaries / Company, seeking investor feedback / comments. 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. To participate and vote at General Meetings either personally or through proxy (proxy can vote only in case of a poll). To receive Dividends and other corporate benefits like Bonus, Rights etc. once approved. To demand poll on any resolution at a General Meeting in accordance with the provisions of the Companies Act, 2013. NOTE This Referencer contains general information. Readers are advised to refer to the relevant Acts / Rules / Regulations / Guidelines / Clarifications before dealing in securities. 391 316336GovernanceCorporate Overview380396Shareholder Information256379Financial StatementsManagement Review148255551470254Shareholders’ Referencer Notice NOTICE is hereby given that the Forty-second Annual General Meeting of the members of Reliance Industries Limited will be held on Thursday, September 1, 2016 at 11:00 a.m. at Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg, Near Bombay Hospital & Medical Research Centre, New Marine Lines, Mumbai 400 020, to transact the following business: and is hereby re-appointed as a Director of the Company, liable to retire by rotation.” 5. To appoint Auditors and fix their remuneration and in this regard, pass the following resolution as an Ordinary Resolution: ORDINARY BUSINESS 1. To consider and adopt (a) the audited financial statement of the Company for the financial year ended March 31, 2016 and 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, 2016 and the report of the Auditors thereon and in this regard, pass the following resolution(s) as an Ordinary Resolution(s): a) b) “RESOLVED THAT the audited financial statement for the financial year ended of the Company March 31, 2016 and the reports of the Board of Directors and Auditors thereon laid before this meeting, be and are hereby considered and adopted.” “RESOLVED THAT the audited consolidated financial statement of the Company for the financial year ended March 31, 2016 and the report of Auditors thereon laid before this meeting, be and are hereby considered and adopted.” 2. To confirm the interim dividend declared and in this regard, pass the following resolution as an Ordinary Resolution: “RESOLVED THAT interim dividend at the rate of `10.50 (Ten rupees and paise fifty only) per equity share of `10/- (Ten rupees) each declared by the Board of Directors of the Company at its meeting held on March 10, 2016, be and is hereby confirmed as final dividend for the financial year ended March 31, 2016.” 3. To appoint a Director in place of Shri Nikhil R. Meswani (DIN 00001620), who retires by rotation and being eligible, offers himself for re-appointment and in this regard, pass the following resolution as an Ordinary Resolution: to the provisions of “RESOLVED THAT pursuant Section 152 of the Companies Act, 2013, Shri Nikhil R. Meswani (DIN 00001620), who retires by rotation at this meeting and being eligible has offered himself for re-appointment, be and is hereby re-appointed as a Director of the Company, liable to retire by rotation.” 4. To appoint a Director in place of Shri Pawan Kumar Kapil (DIN 02460200), who retires by rotation and being eligible, offers himself for re-appointment and in this regard, pass the following resolution as an Ordinary Resolution: “RESOLVED THAT pursuant to the provisions of Section 152 of the Companies Act, 2013, Shri Pawan Kumar Kapil (DIN 02460200), who retires by rotation at this meeting and being eligible has offered himself for re-appointment, be 392 “RESOLVED THAT pursuant to the provisions of Section 139 and other applicable provisions, if any, of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force), M/s. Chaturvedi & Shah, Chartered Accountants (Registration No. 101720W), M/s. 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 6. To ratify the remuneration of Cost Auditors for the financial year ending March 31, 2017 and in this regard, pass the following resolution as an Ordinary Resolution: “RESOLVED THAT pursuant to the provisions of Section 148 and other applicable provisions, if any, of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force), the remuneration, as approved by the Board of Directors and set out in the Statement annexed to the Notice convening this meeting, to be paid to the Cost Auditors appointed by the Board of Directors of the Company, to conduct the audit of cost records of the Company for the financial year ending March 31, 2017, be and is hereby ratified.” 7. To approve offer or invitation to subscribe to Redeemable Non-Convertible Debentures on private placement and in this regard, pass the following resolution as a Special Resolution: “RESOLVED THAT pursuant to the provisions of Sections 42, 71 and other applicable provisions, if any, of the Companies Act, 2013 read with the Companies (Prospectus and Allotment of Securities) Rules, 2014 and the Companies (Share Capital and Debentures) Rules, 2014 (including any statutory modification(s) or re-enactment(s) 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 the Board of Directors of the Company to offer or invite subscriptions for secured / unsecured redeemable non-convertible debentures, in one or more series / tranches, of the aggregate nominal value up to ₹10,000 crore (Rupees Ten thousand crore), on private placement, from such persons and on such terms and conditions as the Board of Directors of the Company may, Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. from time to time, determine and consider proper and most beneficial to the Company including, without limitation, as to when the said debentures are to be issued, the face value of debentures to be issued, the consideration for the issue, mode of payment, coupon rate, redemption period, utilization of the issue proceeds and all matters connected therewith or incidental thereto; 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 and for matters connected therewith or incidental thereto.” By Order of the Board of Directors K. Sethuraman Group Company Secretary and Chief Compliance Officer July 15, 2016 Mumbai Registered Office: 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021, India CIN: L17110MH1973PLC019786 Website: www.ril.com E-mail: investor_relations@ril.com Tel.: +91 22 2278 5000 Fax: +91 22 2278 5111 NOTES: 1. A member entitled to attend and vote at the Forty-second 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. The holder of proxy shall prove his identity at the time of attending the Meeting. Corporate members intending to send their authorised representative(s) to attend the Meeting are requested to send to the Company a certified true copy of the relevant Board Resolution together with the specimen signature(s) of the representative(s) authorised under the said Board Resolution to attend and vote on their behalf at the Meeting. Attendance slip, proxy form and the route map of the venue of the Meeting are annexed hereto. A Statement pursuant to Section 102(1) of the Companies Act, 2013 (“the Act”), relating to the Special Business to be transacted at the Meeting is annexed hereto. The Company is providing facility for voting by electronic means (e-voting) through an electronic voting system which will include remote e-voting as prescribed by the Companies (Management and Administration) Rules, 2014 as presently in force and the business set out in the Notice will be transacted through such voting. Information and instructions including details of user id and password relating to e-voting is being sent to members separately along with a copy of the Notice. In terms of Section 152 of the Act, Shri Nikhil R. Meswani (DIN 00001620) and Shri Pawan Kumar Kapil (DIN 02460200), Directors, retire by rotation at the Meeting and being eligible, offer themselves for re-appointment. The Human Resources, Nomination and Remuneration Committee of the Board of Directors and the Board of Directors of the Company commend their respective re-appointments. 2. 3. 4. 5. 6. Details of Directors retiring by rotation, as required to be provided pursuant to the provisions of (i) the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and (ii) Secretarial Standard on General Meetings (“SS-2”), issued by the Institute of Company Secretaries of India and approved by the Central Government are provided herein below: Particulars Age Qualification Experience (including expertise in specific functional area)/Brief Resume Terms and Conditions of Re-appointment Remuneration last drawn Remuneration proposed to be paid Shri Nikhil R. Meswani 50 years Chemical Engineer from University Institute of Chemical Technology (UICT), Mumbai Please refer Corporate Governance Report section of the Annual Report 2015-16 As per the resolution passed by the shareholders at the Annual General Meeting held on June 7, 2012, Shri Nikhil R. Meswani was re-appointed as a Whole-time Director designated as Executive Director of the Company ` 14.42 crore As per existing terms and conditions Shri Pawan Kumar Kapil 70 years Bachelor’s degree in Chemical Engineering Please refer Corporate Governance Report section of the Annual Report 2015-16 As per the resolution passed by the shareholders at the Annual General Meeting held on June 7, 2012, Shri Pawan Kumar Kapil was re-appointed as a Whole-time Director designated as Executive Director of the Company ` 3.38 crore As per existing terms and conditions 393 NoticeGovernanceCorporate OverviewShareholder InformationManagement ReviewFinancial Statements256379148255380396551470254 Particulars Date of first appointment on the Board Shareholding in the Company Relationship with other Directors/Key Managerial Personnel Number of meetings of the Board attended during the financial year Directorships of other Boards Membership/Chairmanship of Committees of other Boards Shri Nikhil R. Meswani June 26, 1986 Shri Pawan Kumar Kapil May 16, 2010 Please refer Corporate Governance Report section of the Annual Report 2015-16 Please refer Corporate Governance Report section of the Annual Report 2015-16 7. 8. 9. 10. 11. 12. 13. Shri Nikhil R. Meswani and Shri Pawan Kumar Kapil are interested in the Ordinary Resolutions set out at Item Nos. 3 and 4, respectively, of the Notice with regard to their re-appointment. The relatives of Shri Nikhil R. Meswani and Shri Pawan Kumar Kapil may be deemed to be interested in the said Resolutions to the extent of their shareholding interest, if any, in the Company. Save and except the above, none of the Directors / Key Managerial Personnel of the Company / their relatives are, in any way, concerned or interested, financially or otherwise, in the Ordinary Resolutions set out under Item Nos. 1 to 5 of the Notice. Members / Proxies / Authorised Representatives are requested to bring to the Meeting necessary details of their shareholding, attendance slip(s) and copy(ies) of their Annual Report. 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 at the Meeting. Relevant documents referred to in the Notice are open for inspection by the members at the Registered Office of the Company on all working days (i.e., except Saturdays, Sundays and Public Holidays) during business hours up to the date of the Meeting. The aforesaid documents will also be available for inspection by members at the Meeting. The Company’s Registrars & Transfer Agents for its share registry (both, physical as well as electronic) is Karvy Computershare Private Limited (“Karvy”) having its office at Karvy Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad 500 032 (Unit: Reliance Industries Limited). Members holding shares in electronic mode are requested to intimate any change in their address or bank mandates to their Depository Participants (DPs) with whom they are maintaining their demat accounts. Members holding shares in physical mode are requested to advise any change in their address or bank mandates to the Company / Karvy. The Company has transferred the unpaid or unclaimed dividends declared up to financial years 2007-08, from time to time, to the Investor Education and Protection Fund (IEPF) established by the Central Government. The Company has uploaded the details of unpaid and unclaimed dividend amounts lying with the Company as on July 15, 2016 on the website of the Company and 394 14. 15. the same can be accessed through the link: http://www. ril.com/InvestorRelations/ShareholdersInformation.aspx Members who have not encashed the dividend so far in respect of the financial years from 2008-09 to 2015-16 are requested to write to Karvy who shall arrange to send the unclaimed dividend amount. 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 mode are, therefore, requested to submit their PAN to their DPs with whom they are maintaining their demat accounts. Members holding shares in physical mode can submit their PAN to the Company / Karvy. Members holding shares in physical mode are advised to make nomination in respect of their shareholding in the Company. A downloadable version of the nomination form (SH-13) is available in ‘Downloads’ section under Investor Relations dropdown on the Company’s website: www.ril.com. Members holding shares in electronic mode may contact their respective DPs for availing the nomination facility. 16. Members who hold shares in physical mode 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. 17. Members who have not registered / updated their e-mail addresses with Karvy, if shares are held in physical mode or with their DPs, if shares are held in electronic mode, are requested to do so for receiving all the Company including Annual Reports, Notices, Circulars, etc., electronically. future communications from 18. Non-Resident Indian members are requested to inform Karvy / respective DPs, immediately of: a) b) Change in their residential status on return to India for permanent settlement. 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. Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life. 19. Members are advised to refer to the Shareholders’ Referencer provided in the Annual Report. The same can also be viewed through the link: http://www.ril.com/InvestorRelations/Downloads.aspx 20. Members are requested to fill in and send the Feedback form provided in the Annual Report. 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 Notice: ITEM NO. 6 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 across various segments, for the financial year ending March 31, 2017 as per the following details: Sr. No. 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 1 2 3 4 5 6 7 8 9 M/s. V. Kumar & Associates Polyester M/s. Shome & Banerjee M/s. Dilip M. Malkar & Co. Oil & Gas and Chemicals Electricity and Chemicals M/s. Shome & Banerjee (Lead Auditor) Lead Audit Fees Industry Chemicals Chemicals Chemicals, Oil & Gas and Polyester Textiles and Chemicals Polyester, Chemicals and Petroleum (₹ in lakhs) Audit fees 8.35 3.61 8.25 3.64 7.63 5.21 7.89 6.51 7.00 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 as recommended by the Audit Committee and approved by the Board of Directors, has to be ratified by the members of the Company. Accordingly, ratification by the members is sought to the remuneration payable to the Cost Auditors for the financial year ending March 31, 2017 by passing an Ordinary Resolution as set out at Item No. 6 of the Notice. 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. 6 of the Notice. The Board commends the Ordinary Resolution set out at Item No. 6 of the Notice for approval by the members. ITEM NO. 7 The members of the Company, at the Forty-first Annual General Meeting held on June 12, 2015, had passed a special resolution authorising the Board of Directors of the Company to offer or invite subscriptions for redeemable non-convertible debentures, in one or more series / tranches, aggregating up to ₹10,000 crore on private placement. The said resolution was valid and effective for one year from June 12, 2015. The members may note that the Company has not made any private placement of redeemable non-convertible debentures pursuant to the said authorisation. The Board may, at an appropriate time, consider offering or inviting subscriptions for secured/ unsecured redeemable non-convertible debentures, in one or more series / tranches, on private placement, issuable / redeemable at par, in order to augment long-term resources for financing inter alia the ongoing capital expenditure and for general corporate purposes. Section 71 of the Act which deals with the issuance of debentures read with Section 42 of the Act which deals with the offer or invitation for subscription of securities of a company on private placement and Rule 14 of the Companies (Prospectus and Allotment of Securities) Rules, 2014 provide that a company which intends to make a private placement of its non-convertible debentures, shall, before making an offer or invitation for subscription, obtain approval of its shareholders by means of a special resolution. It shall be sufficient if the company passes a special resolution only once in a year for all the offers or invitations for such non-convertible debentures during the year. Keeping in view the above, consent of the members is sought for passing the Special Resolution as set out at Item No. 7 of the Notice. This enabling resolution authorises the Board of Directors of the Company to offer or invite subscription for 395 NoticeGovernanceCorporate OverviewShareholder InformationManagement ReviewFinancial Statements256379148255380396551470254redeemable non-convertible debentures, as may be required by the Company, from time to time and as set out herein, for a year from the date of passing this resolution. 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. 7 of the Notice. The Board commends the Special Resolution set out at Item No. 7 of the Notice for approval by the members. By Order of the Board of Directors K. Sethuraman Group Company Secretary and Chief Compliance Officer July 15, 2016 Mumbai Registered Office: 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021, India CIN: L17110MH1973PLC019786 Website: www.ril.com E-mail: investor_relations@ril.com Tel.: +91 22 2278 5000 Fax: +91 22 2278 5111 ROUTE MAP Marine Lines Railway Station r i n M a r e v o s F l y e e L i n M a h a r s h i K a r v e R o a d Birla Matushri Sabhagar 19, Sir Vithaldas Thackersey Marg, Near Bombay Hospital & Medical Research Centre, New Marine Lines, Mumbai 400 020 Latitude and Longitude: 18.9404260 N 72.8280710 E Approximate distance from: Churchgate Railway Station: 650 meters (via Maharshi Karve Road) Marine Lines Railway Station: 900 meters (via Maharshi Karve Road/ Sir Vithaldas Thackersey Marg) Chatrapati Shivaji Terminus (CST): 1200 meters (via Mahapalika Marg) i d j s G o l M a M E T R O B i g C i n e m a M a h a r s h i Q u e e n s R o a d K a r v e R o a d B o m b a y H o s p i t a l & M e d i c a l R e s e a r c h C e n t r e M a h a t m a B i r l a M a t u s h r i S a b h a g a r G a n d h i R o a d U A H K h a n M a r g A a y a k a r B h a v a n M a h a r s h i K a r v e R o a d S i r V i t h a l d a s T h a c k e r s e y M a r g M a h a p alik a M arg M a h a p alik i k a M a h a p a l l d i n g B u i a M arg d a o D N R Chatrapati Shivaji Terminus (CST) Azad Maidan d a o D N R 396 Churchgate Railway Station Flora Fountain Annual Report 2015-16Reliance Industries LimitedEnhancing the quality of life. Starting up to a digital life.  ATTENDANCE SLIP CIN: L17110MH1973PLC019786 Registered Office: 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021 Website: www.ril.com; E-mail: investor_relations@ril.com; Tel.: +91 22 2278 5000; Fax: +91 22 2278 5111 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 FORTY-SECOND ANNUAL GENERAL MEETING of the members of the Company held on Thursday, September 1, 2016 at 11:00 a.m. at Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg, Near Bombay Hospital & Medical Research Centre, 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 Website: www.ril.com; E-mail: investor_relations@ril.com; Tel.: +91 22 2278 5000; Fax: +91 22 2278 5111 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: 1) 2) 3) of of of having e-mail id having e-mail id having e-mail id or failing him 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 Forty-second Annual General Meeting of the members of the Company to be held on Thursday, September 1, 2016 at 11:00 a.m. at Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg, Near Bombay Hospital & Medical Research Centre, 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: For Against a) Audited Financial Statement for the Financial Year ended March 31, 2016 and the Reports of the Board of Directors and Auditors thereon b) Audited Consolidated Financial Statement for the Financial Year ended March 31, 2016 and the Report of the Auditors thereon 2. Confirmation of interim dividend declared 3. Re-appointment of Shri Nikhil R. Meswani, a Director retiring by rotation 4. Re-appointment of Shri Pawan Kumar Kapil, a Director retiring by rotation 5. Appointment of Auditors and fixing their remuneration  * Applicable for investors holding shares in electronic form. P.T.O.  Resolutions  For Against 6. Ratification of the remuneration of the Cost Auditors for the financial year ending March 31, 2017 7. Approval of offer or invitation to subscribe to redeemable non-convertible debentures on private placement Signed this..................... day of..................2016 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 forty-eight hours before the commencement of the Meeting. 2) A proxy need not be a member of the Company and shall prove his identity at the time of attending the Meeting. 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 ‘ ’ 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 at the Meeting in the manner he/she thinks appropriate. 5) Appointing a proxy does not prevent a member from attending the Meeting in person if he so wishes. When a Member appoints a Proxy and both the Member and Proxy attend the Meeting, the Proxy will stand automatically revoked. In the case of jointholders, the signature of any one holder will be sufficient, but names of all the jointholders should be stated. 6) 7) This form of proxy shall be signed by the appointer or his attorney duly authorized in writing, or if the appointer is a body corporate, be under its seal or be signed by an officer or an attorney duly authorized by it. 8) This form of proxy will be valid only if it is duly complete in all respects, properly stamped and submitted as per the applicable law. Incomplete form or form which remains unstamped or inadequately stamped or form upon which the stamps have not been cancelled will be treated as invalid. 9) Undated proxy form will not be considered valid. 10) If Company receives multiple proxies for the same holdings of a member, the proxy which is dated last will be considered valid; if they are not dated or bear the same date without specific mention of time, all such multiple proxies will be treated as invalid. Members Feedback Form 2015-16 CIN: L17110MH1973PLC019786 Registered Office: 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021 Website: www.ril.com; E-mail: investor_relations@ril.com; Tel.: +91 22 2278 5000; Fax: +91 22 2278 5111 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 ANNUAL REPORT 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 Contents Presentation Contents Presentation Contents Presentation Contents Presentation Contents Presentation Contents Presentation Contents Presentation Information on Company’s website Contents Presentation INVESTOR SERVICES Turnaround time for response to shareholder’s 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. HDC/B-1226 Hyderabad - 500001 No postage stamp necessary if posted in INDIA To, Sandeep Deshmukh Vice President - Corporate Secretarial Reliance Industries Limited C/o. Karvy Computershare Private Limited Karvy Selenium Tower B, Plot No. 31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad - 500 032. Fold O U R C U L T U R E TO SEE THE NEEDS OF PEOPLE WITH INSIGHT AND EMPATHY. EXPERIENCE OF CUSTOMERS ENERGY OF PEOPLE TRUTH OF BUSINESS Focus on the entire ecosystem of operations to ensure that every touch point produces delightful experiences to customers and stakeholders. Focus on unleashing the most productive energies of our people and enabling new leaders to emerge. Focus on targets, goals, platforms, processes, and ROI, which are the fundamental truths of operating a viable business. Values and Behaviours that emerge from this insight: Customer Value and Excellence Values and Behaviours that emerge from this insight: Respect and One Team Values and Behaviours that emerge from this insight: Ownership Mindset and Integrity O U R V A L U E S A N D B E H A V I O U R S We believe the customer is the We believe that without respecting We believe the success and reason for our existence and the only all our stakeholders there can be no reputation of the company is guarantee to our future. Everything Reliance. We acknowledge that there paramount. Having an ownership that we do must delight our may be a difference of perspectives customer, each time and always. but there must always be respect. mindset is fundamental to our existence. It creates a sense of inspiration and purpose. It enables accountability and accomplishment. It ensures our strong commitment to the highest standards of safety and environment. We are committed to excellence, Whatever the strength of the Upholding our reputation is in spirit and action. We believe individual, we will accomplish more paramount as we are judged by everything that we do and together. We put the team ahead of how we act. We are committed to everything we think can always get our personal success and commit to be truthful in all our actions. We better. We see all of our activities building its capability. We trust each strive to be honest and forthright in terms of our higher purpose and other to deliver on our respective with one another and with all our ideals, which drives our quest for excellence, always. obligations. stakeholders. We respect the world in which we operate. It begins with compliance with laws and regulations. We hold ourselves to the highest ethical standards and behave in ways that earn the trust of others. With winners of Reliance Foundation Drishti National Hindi Braille Essay Competition 2015 “You have gifted beauty to the world! Through your imagination, you have helped spread awareness and take the mission of Drishti forward.” Nita M. Ambani Founder & Chairperson Reliance Foundation More than 14,500 cornea transplants completed Registered international Braille newspaper in Hindi BSE • 500325 NSE • RELIANCE EQ BLOOMBERG • RIL:IN CIN • L17110MH1973PLC019786 Registered Office 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai - 400 021 Tel: +91 22 2278 5000 Fax: +91 22 2278 5111 www.ril.com ) n i . l c i a @ o f n i ( l c i a - s t n a t l u s n o c e v i t a e r c 

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