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
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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
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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
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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
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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.
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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).
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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
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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$6 billion in 2015. (Source:
e-commerce in India by PWC).
OPERATING STRATEGY
Reliance Retail is India’s largest retailer by revenues as well as
by retail footprint. To serve customers across diverse shopping
needs, Reliance Retail has adopted a multi-retail concept
strategy thereby offering products to consumers based on their
shopping habits. Reliance Retail operates chain of convenience
stores, supermarkets, wholesale cash-and-carry and specialty
stores. Some of the guiding philosophies to Reliance Retail’s
operating strategy are:
Customer Centricity: Reliance Retail has embraced
customer service as a way of life in everything it does
to operate its business. Continued focus on training has
fostered a culture of customer centricity. Reliance Retail’s
Customer Loyalty programme enjoys patronage of over 30
million registered members. The valuable insights generated
through this critical tool help in understanding and serving
the needs of customers.
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GovernanceCorporate OverviewFinancial StatementsShareholder InformationManagement Review148255256379380396025455147Management’s Discussion and Analysis
FINANCIAL PERFORMANCE*
FY 2015-16
(` in crore)
FY 2015-16
(US$ 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
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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
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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
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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
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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.
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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.
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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.
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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
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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
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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
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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
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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.
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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.
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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
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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.
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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.
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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
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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
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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.”
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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;
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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
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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
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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.
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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
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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.
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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
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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.
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(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
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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.
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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
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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.
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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
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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.
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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
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(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
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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.
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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
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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.
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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
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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
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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
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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
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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.
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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
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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
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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
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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.
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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
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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)
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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
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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
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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:
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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
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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.
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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.
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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.
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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;
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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.
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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
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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.
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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
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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.
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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
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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
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DIRECTORS‘PROFILE
Shri Mukesh D. Ambani (DIN 00001695) is a Chemical Engineer
from Institute of Chemical Technology, Mumbai (earlier University
Department of Chemical Technology, University of Mumbai). He
has pursued MBA from Stanford University, USA.
Shri Mukesh D. Ambani has joined Reliance in 1981. He initiated
Reliance’s backward integration journey from textiles into
polyester fibres and further into petrochemicals, petroleum
refining and going 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.
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He is primarily responsible for Petrochemicals Division and has
contributed largely to Reliance to become a global leader in
Petrochemicals. Earlier, he handled refinery business between
1997 and 2005. He was also responsible 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.
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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
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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.
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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.
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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;
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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
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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
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(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
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(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
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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
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*
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.
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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.
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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
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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
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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.
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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
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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 .
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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.
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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
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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)
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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
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